Last October, FNMA announced modifications to their Selling Guide in regards to inter vivos revocable trusts, including the addition of an optional signature block on the promissory notes for the trustees of such trusts to sign, specifying that the trustee was not personally obligated for the payment of any sums secured by the security instrument (see our announcement about this change here: http://blog.docutechcorp.com/compliance-news-various-changes-due-fnma-updates).
On February 27, 2018 FNMA Ann. SEL-2018-02 states the following:
“E-2-05, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts. On October 31, 2017, we made a number of updates to the Guide regarding signature requirements when an inter vivos revocable trust is involved. At the time, we added a new block in this exhibit titled Form of Trust’s Signature Required on Mortgage Note. However, based on questions received from lenders, it appears this new content was being interpreted in many different ways. As a result, we have replaced the content in question with a new block, Optional Limitation on Trust Liability. The new content more clearly describes the non-recourse option. This non-recourse provision is in addition to the existing provision for certain trustees described in Trustee Exclusion from Personal Liability in B8-5-02: Inter Vivos Revocable Trust Mortgage Documentation and Signature Requirements. The new, optional language applies to all inter vivos trusts whose trustee(s) are required to sign the note.” (emphasis in the original)
We are currently reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Any modifications we make will be announced on our website (http://blog.docutechcorp.com/category/document-updates).