source:
  type: guide
  id: fhlmc-5103.5
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5103.5 — Living
    Trust
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 5103.5 — Living
    Trust.
  coverage_tier: operative
obligations:
- id: fhlmc-5103.5-full
  canonical_id: fhlmc-5103.5-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 5103.5 — Living
    Trust
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 5103.5 — Living
      Trust
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '5103.5: Living Trust (07/02/25) This section contains information
      related to: ■ Special underwriting requirement ■ Trust requirements ■ Property
      type, occupancy and ownership requirements ■ Title and title insurance requirements
      ■ Required signatures; forms of signature ■ Seller review ■ The Mortgage file
      ■ Delivery requirements ■ Additional information The Seller warrants and represents
      that the Living Trust meets Freddie Mac’s revocability and all other eligibility
      requirements as of the Delivery Date and the Funding Date. A Living Trust is
      an eligible Borrower for a Home Mortgage if it meets all of the requirements
      in this section: (a) Special underwriting requirement The Mortgage applicants
      must include an Underwritten Settlor (or at least one Underwritten Settlor if
      there is more than one Settlor). (b) Trust requirements The Trust must meet
      the following requirements: Freddie Mac Single-Family Seller/Servicer Guide
      Chapter 5103 As of 02/04/26 Page 5103-6 ■ The Settlor (or each Settlor, if there
      is more than one) is the primary beneficiary of the trust ■ The trustee(s) must
      be the Settlor (or at least one Settlor if there is more than one) or a Settlor
      and one or more co-trustees. A financial institution customarily engaged in
      trust functions in the applicable jurisdiction may serve as a co-trustee. ■
      The trustee(s) must be specifically authorized to: ❑ Borrow money for the benefit
      of an Underwritten Settlor ❑ Purchase, construct or encumber realty to secure
      a loan to an Underwritten Settlor (c) Property type, occupancy and ownership
      requirements The Mortgage must be secured by one of the following: ■ 1- to 4-unit
      Primary Residence occupied by an Underwritten Settlor ■ Second home occupied
      for some portion of the year by an Underwritten Settlor, or ■ 1- to 4-unit Investment
      Property If a Living Trust is a Borrower, then: ■ The occupancy of the property/Mortgaged
      Premises by an Underwritten Settlor of that Living Trust will be considered
      to be occupancy by the Borrower of the property/Mortgaged Premises ■ The Underwritten
      Settlor is an individual who is deemed to be the owner of the property/Mortgaged
      Premises (d) Title and title insurance requirements (i) Title The title to the
      property must be vested in the trustee(s) on behalf of the trust (or in such
      other manner as is customary in the jurisdiction for Living Trusts). (ii) The
      title insurance policy The title insurance policy must: ■ State that title to
      the Mortgaged Premises is vested in the trustee(s) on behalf of the Living Trust
      (or in such other manner as is customary in the jurisdiction for Living Trusts)
      Freddie Mac Single-Family Seller/Servicer Guide Chapter 5103 As of 02/04/26
      Page 5103-7 ■ Not list any exceptions arising from the trust ownership of the
      property (iii) Seller verification The Seller must verify that: ■ Title vested
      in the trustee(s) on behalf of the trust (or in such other manner as is customary
      in the jurisdiction for Living Trusts) does not lessen in any way Freddie Mac’s
      interest in the Mortgage, such as Freddie Mac’s ability to obtain clear and
      marketable title to the Mortgaged Premises in the event of a foreclosure of
      the Mortgage ■ The title insurance policy provides full title insurance protection
      to Freddie Mac (e) Required signatures; forms of signature The required forms
      of signatures (Note) and required forms of signatures and acknowledgment (Security
      Instrument) are listed in the tables below. If the Seller elects to use the
      Note with signature addendum to the Note (“Signature Addendum”) alternative:
      ■ The form of Signature Addendum, and its use, must comply with all applicable
      laws ■ The use of the Signature Addendum must result in a properly signed and
      legally enforceable Note ■ The Signature Addendum must not impair Freddie Mac’s
      status as a “holder in due course” or any of Freddie Mac’s rights under the
      Purchase Documents ■ The Seller indemnifies Freddie Mac from any loss or damage
      Freddie Mac may incur as a result of the use of the Signature Addendum Living
      Trusts: Note signature Loan documents Required forms of signatures (See Exhibit
      9A, Note Signature Forms for Living Trusts) Note ■ Each Underwritten Settlor
      individually; and ■ One or more trustees on behalf of the trust, indicating
      the complete legal name of the trust, using the form prescribed in Exhibit 9A.
      An Underwritten Settlor executing the Note both individually and as a Freddie
      Mac Single-Family Seller/Servicer Guide Chapter 5103 As of 02/04/26 Page 5103-8
      Living Trusts: Note signature Loan documents Required forms of signatures (See
      Exhibit 9A, Note Signature Forms for Living Trusts) trustee must use one of
      the methods prescribed in Exhibit 9A. Note with Signature Addendum alternative
      ■ May be used if there is not enough space on the Note for the signatures of
      the trustee(s). The Note must clearly reference the existence of the Signature
      Addendum. ■ Each Underwritten Settlor (regardless of whether the Underwritten
      Settlor also is signing as a trustee) must sign individually in the Borrower’s
      signature lines on the Note itself; only the signature(s) of the trustee(s)
      may be included on the Signature Addendum Signature Addendum requirements The
      Signature Addendum must: ■ Be permanently affixed to the Note ■ Clearly identify
      the Note by referencing the following: ❑ Name(s) of the Borrower(s) ❑ Note Date
      ❑ Property address ❑ Original principal balance of the Note Living Trust: Security
      Instrument Loan documents Required forms of signatures and acknowledgment (See
      Exhibit 9B, Security Instrument Signature and Acknowledgement Forms for Living
      Trusts) Security Instrument ■ Executed by the trustee(s) on behalf of the trust,
      indicating the complete legal name of the trust, using the form prescribed in
      Exhibit 9B ■ Acknowledged by each Underwritten Settlor on the Security Instrument
      in the form prescribed by Exhibit 9B Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 5103 As of 02/04/26 Page 5103-9 Living Trust: Security Instrument
      Loan documents Required forms of signatures and acknowledgment (See Exhibit
      9B, Security Instrument Signature and Acknowledgement Forms for Living Trusts)
      Security Instrument with rider as alternative form of Underwritten Settlor acknowledgment
      ■ The Security Instrument is executed by the trustee(s) on behalf of the trust,
      indicating the complete legal name of the trust ■ The Seller may use a rider
      to the Security Instrument that meets all of the requirements in Exhibit 9B,
      including that the rider is: ❑ Signed by the trustee(s) of the Living Trust;
      and ❑ Acknowledged by each Underwritten Settlor of the Living Trust Note: The
      Seller may exclude any institutional trustee and any individual trustee who
      is not an Underwritten Settlor from personal liability under the Note and the
      Security Instrument, provided that: ■ The Seller verifies that such exclusion
      applies specifically to that trustee, and the Seller excludes only that trustee
      from liability; and ■ Such exclusion does not impair the exercise of any rights
      and remedies under the Note and/or the Security Instrument (f) Seller review
      The Seller must review: ■ Either (a) the trust agreement for the Living Trust
      or (b) an abstract, certification or other summary of the trust agreement if
      and to the extent the laws of the applicable jurisdiction require or permit
      a third party dealing with a trustee to rely on such abstract, certification
      or other summary. Based on such review, the Seller must determine that: ❑ The
      Settlor (or each Settlor, if there is more than one) has retained the power
      to revoke or amend the trust ❑ There is specific authorization for the trustee(s)
      to borrow money and to purchase, construct or encumber realty as more fully
      described in Section 5103.5(b) above Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 5103 As of 02/04/26 Page 5103-10 ❑ There is no unusual risk or
      impairment of lenders’ rights (such as distributions required to be made in
      specified amounts from other than net income) ❑ The beneficiary need not grant
      written consent for the trust to borrow money or, if such consent is required,
      it has been granted in writing for purposes of the Mortgage ❑ If the trust agreement
      requires more than one trustee to borrow money or to purchase, construct or
      encumber realty, that the requisite number of trustees have signed the loan
      documents ■ The deed conveying the Mortgaged Premises to the trustee or trust
      to verify that title is vested in the trustee(s) on behalf of the Living Trust
      (or is vested in such other manner as is customary in the jurisdiction for Living
      Trusts) (g) The Mortgage file In addition to other requirements in the Purchase
      Documents, when the Borrower is a Living Trust, the Mortgage file also must
      contain either: ■ A complete copy of the trust agreement, or ■ An abstract,
      certification or other summary of the trust agreement if and to the extent the
      laws of the applicable jurisdiction require or permit a third party dealing
      with a trustee to rely on such abstract, certification or other summary (h)
      Delivery requirements See Section 6302.9 for special delivery requirements when
      the Borrower is a Living Trust. (i) Additional information For additional information
      related to this section, see Document Custodian Procedures Handbook, Chapter
      3, Document Delivery and Processing Procedures, Borrower’s Signature.'
  judgment: false
