I know absolutely nothing about lending to a revocable living trust. I'm not even sure that is what the lender did so, consequently, I'm asking for help!
An applicant (singly applies) for a loan to be secured by a dwelling owned by a revocable living trust (the applicant is trustee). Purpose of the loan is Home Improvement.
The note is generated and signed. The loan is to the applicant and the living trust, with the applicant signing as the trustee. I questioned this and was told that loan ops simply copied another loan to a living trust. However, in that case the applicant was the trust. I asked why the loan simply wasn't given to the applicant with the trustee pledging the property as collateral for the loan. Didn't get an answer on that. On the LAR the loan applicant is reported as single (no co-applicant).

So, I guess I'm down to two questions. 1) Why would the bank need to add the trust to the note, it wasn't an applicant. Shouldn't the loan have just been to the single applicant? If that is true then the LAR is correct and the note wrong. This gets my vote.. 2) If the note is corectly prepared to single person and trust, then the LAR is incorrect. In my view, since the loan was to an the application, singly and the trust, on the LAR the lender shoud have reported the ethnicity, race and sex of the single applicant, and the trust as an entity.
Can anyone help me sort through this?

Oops - let me correct a couple of sentences in the 3rd paragraph- that don't really make much sense.

So, I guess I'm down to two questions. 1) Why would the bank need to add the trust to the note, the application states an individual applying singly. Shouldn't the loan have just been to the individual with the trustee signing a pledge for the property being used as collateral? If that is true then the LAR is correct and the note wrong. 2) If it is correct to have the trust on the note along with the individual, then the LAR is incorrect. I just can't see how this is possible? But then again, I'm not very knowledgeable about trusts.

Can anyone help me sort through this? I truly appreciate the help!!!

BUMP!

I would be asking your attorney these questions. Since a revocable trust can disappear in a blink of an eye, how you document these loans, who you require to sign what documents, etc., should be left to your attorney.

I've stated on these boards before that ON THE ADVICE OF OUR COUNSEL we have loans signed by the applicant both as an individual and as the trustee. That way, if the property is ever removed from the trust or the trust dissolved, the note remains in force and our lien position does not change.

As for HMDA, we normally take the application from two individuals, (husband and wife) so we report as such.

Randy's right. You should speak with your FI's attorney to determine the best way to handle these.