source:
  type: guide
  id: fnma-sel-b2-2-05
  authority: Fannie Mae Selling Guide B2-2-05 — Inter Vivos Revocable Trusts
  description: Fannie Mae Selling Guide B2-2-05 — Inter Vivos Revocable Trusts.
  coverage_tier: operative
obligations:
- id: fnma-sel-b2-2-05-full
  canonical_id: fnma-sel-b2-2-05-full
  section: Fannie Mae Selling Guide B2-2-05 — Inter Vivos Revocable Trusts
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B2-2-05 — Inter Vivos Revocable Trusts
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B2-2-05, Inter Vivos Revocable Trusts (10/31/2017) Introduction
      This topic contains information on revocable trusts, including: Overview Inter
      Vivos Revocable Trust as Eligible Mortgagor Lender Requirements Trust and Trustee
      Requirements Eligible Property and Occupancy Types Underwriting Considerations
      Title and Title Insurance Requirements Loan Delivery Data Overview Except as
      expressly provided elsewhere in the Selling Guide, Fannie Mae only accepts individuals
      as credit- qualifying borrowers. In addition, Fannie Mae normally deems property
      in which no borrower has an ownership interest as ineligible collateral. However,
      to accommodate the use of inter vivos trusts as an estate planning tool, Fannie
      Mae provides an exception for property held by inter vivos revocable trusts
      created by credit- qualifying borrowers. Inter Vivos Revocable Trust as Eligible
      Mortgagor An inter vivos revocable trust is a trust that an individual creates
      during their lifetime; becomes eﬀective during its creator’s lifetime; and can
      be changed or canceled by its creator at any time, for any reason, during that
      individual’s lifetime. Fannie Mae will accept an inter vivos revocable trust
      that has an ownership interest in the security property as an eligible mortgagor
      (a party to the security instrument) for all transaction types, provided it
      complies with the requirements in this topic. Published May 6, 2026 233 Note:
      A trust must meet Fannie Mae’s revocability and other eligibility requirements
      at the time the loan is delivered. Trust eligibility is not aﬀected if the trust
      documents contain a provision that the trust will, in the future, become irrevocable
      upon the death of one of the settlors. However, such a change in the trust structure
      after delivery of the mortgage loan may aﬀect the eligibility of the trust as
      a mortgagor in a subsequent loan transaction. Lender Requirements A lender delivering
      a loan that has an inter vivos revocable trust as mortgagor is responsible for:
      determining that both the trust and the mortgage satisfy Fannie Mae eligibility
      criteria and documentation requirements; determining under the laws of the states
      in which it does business that it can originate mortgages to validly created
      inter vivos revocable trusts that meet the terms and conditions speciﬁed by
      Fannie Mae; and completing a review of the mortgage documentation, applicable
      state law, and the trust documents to ensure that title insurers provide full
      title insurance coverage without exceptions for the trust or the trustees for
      inter vivos revocable trusts in that state. (See Title and Title Insurance Requirements
      below for additional information.) Legal document requirements are described
      in B8-5-02, Inter Vivos Revocable Trust Mortgage Documentation and Signature
      Requirements. Also see E-2-04, Signature Requirements for Mortgages to Inter
      Vivos Revocable Trusts, for signature requirements under diﬀerent inter vivos
      revocable trust scenarios. Trust and Trustee Requirements The inter vivos revocable
      trust must be established by one or more natural persons, solely or jointly.
      The primary beneﬁciary of the trust must be the individual(s) establishing the
      trust. If the trust is established jointly, there may be more than one primary
      beneﬁciary as long as the income or assets of at least one of the individuals
      establishing the trust will be used to qualify for the mortgage. The trustee(s)
      must include either: the individual establishing the trust (or at least one
      of the individuals, if there are two or more); or an institutional trustee that
      customarily performs trust functions in and is authorized to act as trustee
      under the laws of the applicable state. The trustee(s) must have the power to
      mortgage the security property for the purpose of securing a loan to the individual
      (or individuals) who are the borrower(s) under the mortgage or deed of trust
      note. Note: In the event the originally named trustee is unable or unwilling
      to serve, and the trust instrument has a mechanism for appointment of a successor
      trustee, the trust can properly act through the successor trustee. Published
      May 6, 2026 234 Eligible Property and Occupancy Types All property and occupancy
      types are eligible. For properties that are the borrower''s principal residence,
      at least one individual establishing the trust must occupy the security property
      and sign the loan documents. Underwriting Considerations The loan must be underwritten
      with at least one individual establishing the trust as borrower. Additional
      individuals, including other individuals establishing the trust, may also be
      considered co-borrowers if those individuals’ credit will be used to qualify
      for the loan. Title and Title Insurance Requirements The lender must retain
      in the individual loan ﬁle a copy of any trust documents that the title insurance
      company required in making its determination on the title insurance coverage.
      The following requirements apply to title and title insurance: Title held in
      the trust does not in any way diminish Fannie Mae’s rights as a creditor, including
      the right to have full title to the property vested in Fannie Mae should foreclosure
      proceedings have to be initiated to cure a default under the terms of the mortgage.
      The title insurance policy ensures full title protection to Fannie Mae. The
      title insurance policy states that title to the security property is vested
      in the trustee(s) of the inter vivos revocable trust. The title insurance policy
      does not list any exceptions with respect to the trustee(s) holding title to
      the security property or to the trust. Title to the security property is vested
      solely in the trustee(s) of the inter vivos revocable trust, jointly in the
      trustee(s) of the inter vivos revocable trust and in the name(s) of the individual
      borrower(s), or in the trustee(s) of more than one inter vivos revocable trust.
      Loan Delivery Data Only the information related to the individual(s) establishing
      the inter vivos revocable trust whose credit is used to qualify for the loan
      should be provided at the time of loan delivery, such as the borrower name and
      Social Security number. The name of the inter vivos revocable trust cannot be
      included within the loan delivery data. A loan that has an inter vivos revocable
      trust as a mortgagor must be delivered with Special Feature Code 168 (in addition
      to any other special feature codes that may also be applicable to the transaction).
      Recent Related Announcements There are no recently issued Announcements related
      to this topic. Published May 6, 2026 235'
  judgment: false
