Borrower Information - Vesting

Use the Borrower Information-Vesting form to enter borrower information, define the ownership rights in the property, enter corporation and trust information, if needed, and create the vesting statement that is used in loan documents. You can also use the form to associate signers with borrower pairs, which configures the sequence of signers on the loan documents, and to add seller information if needed.

By default, borrower information is copied from the 1003 form. If you add or edit borrower information on the Borrower Information - Vesting form, the changes are copied back to the 1003 and also used to build beneficiaries and create the final vesting text.

There are three types of entities recorded for vesting purposes:

Individuals
Trusts, including Inter Vivos trusts
Corporations

Individuals

Information about individual borrowers is copied from the 1003 Page 1 form to the Vesting Information section. Use the Vesting Information section to edit the borrower information and create the vesting statement for individual borrowers who are not in a corporation or trust.

Edit vesting information

To edit borrower vesting information, double-click a name in the Vesting Information section. The Borrower Vesting window opens.

When you edit the borrower name on the Borrower Vesting window, it affects the borrower names and signature lines on the 1003. Changes made to borrower vesting information are also reflected in the loan file and flow back to the 1003 and other input forms.
- In the Borrower Name field, make sure the name displays as you want it to appear on the closing documents.
- In the Also Known As field, type a name that the borrower has also used. Use a semicolon to separate additional names.
- In the Social Security No. field, edit the borrower's social security number if necessary.
- In the Vesting Type field, select the option that describes the borrower's financial responsibility related to the loan. The selected Vesting Type affects the documents included in the document set.
  - Individual - obligated, on title, signs all documents
  - Co-signer - obligated, not on title, signs the documents related to loan such as the note, but not the documents related to the property such as the security instrument
- In the POA Borrower field, type the name of the individual who will serve as the power of attorney, if applicable.
  
  In the unlikely event that an individual has been granted power of attorney for one of the signatories, the eSigning functionality for that signatory is disabled. You will need to print the disclosure documents and send them to the individual who has power of attorney.
- In the POA Signature Text field, type the title of the attorney. If the field is blank, the system defaults to the correct state-specific language (for example, Attorney-in-fact).
- On the Vesting list, click the option that describes the ownership rights of the borrower.
When finished, click OK.
Click the Build Final Vesting button to create the text for the vesting statement based on the vesting information above.
In the Manner in which Title will be held field, select the appropriate option.

Non-Borrowing Owners

When adding non-borrowing owners, it is important to always add them as non-borrowing owner contacts via the File Contacts tool . This ensures that the non-borrowing owner has full eFolder and eSigning functionality for the loan. When a non-borrowing owner is added via the Borrower Information - Vesting form, the borrower is not available as a recipient when sending eConsent requests, document requests, eDisclosure packages, files, and Status Online updates. Additionally, non-borrowing owners added via the Borrower Information - Vesting form will not have eSigning points added to eSignable documents.

Trusts

If the borrower is a trust (including an Intervivos Trust), use the Corporation/Trust 1 and Trust 2 sections to enter information for as many as two trusts. After you add information for a trust, use the Vesting Information section to assign borrowers as trustees or settlors of the trust and create the vesting statement. The Final Vesting to Read field is used to populate all Signature lines in the closing docs as well as the Final Vesting to Read on the Mortgage/Deed of Trust/Security Instrument.

When you select the Print Trust Name(s) on LE/CD Addendum checkbox, the trust name(s) and the borrower names print on the Addendum pages for the Loan Estimate and Closing Disclosure. When the checkbox is cleared, only the borrower names print on the Addendum pages for the Loan Estimate and Closing Disclosure.

Add a trust

In the Corporation/Trust 1 section, in the Corp/Trust Name field, type the name of the trust.
In the Org. State field, click the name of the state in which the trust was formed.
In the Org. Type field, select A [state] Trust.
Optionally, in the Tax ID/Trust No. field, type the number of the trust instrument.
Optionally, in the Trust Date/Year field, type the date the trust was incorporated.
Optionally, in the Amended Date/Year field, type the date the original trust agreement was amended, if applicable.
If there is a second trust involved, enter the information in the Trust 2 fields.
In the Vesting Information section, double-click a borrower or co-borrower who is a member of the trust.
Select the appropriate Vesting Type.

For a description of all vesting types, refer to the Vesting Types table below.
In the Trustee Of field, select Trust 1 or Trust 2 as appropriate.
In the POA Borrower field, type the name of the individual who has the power of attorney, if applicable. The name is printed on the closing docs.

In the unlikely event that an individual has been granted power of attorney for one of the signatories, the eSigning functionality for that signatory is disabled. You will need to print the disclosure documents and send them to the individual who has power of attorney.
In the POA Signature field, type the title or any additional signature text for the POA attorney.
- This text is printed on closing docs directly after the attorney name.
- If the field is blank, the text after the attorney name will default to the appropriate state-specific language, for example, Attorney-in-fact.
Select the Authorized to Sign for Non-Intervivos Trusts checkbox to authorize the borrower or co-borrower to sign closing documents.
On the Vesting list, select Trustee for all trustee types except Settlor. Leave the selection blank for a Settlor.
Click OK.
To add beneficiaries of the trust, click Build Beneficiary in the Corporation/Trust 1 or Trust 2 section. The names of the applicable borrowers and co-borrowers listed in the Vesting Information section are added to the beneficiary list.
- Manually add, remove, and edit the names on the beneficiary list as needed.
For the Final Vesting To Read field, click the Build Final Vesting button to create the text for the vesting statement based on the vesting information.
- Manually edit the Final Vesting to Read text as needed.
In the Manner in which Title will be held field, select an option.

Add an Inter Vivos trust

In the Corporation/Trust 1 section, in the Corp/Trust Name field, type the name of the trust.
In the Org. State field, select the name of the state in which the trust was formed.
In the Org. Type field, select An Inter Vivos Trust.
Optionally, in the Tax Id/Trust No. field, type the number of the trust instrument.
Optionally, in the Trust Date/Year field, type the date the trust was incorporated.
Optionally, in the Amended Date/Year field, type the date the original trust agreement was amended, if applicable.
If there is a second trust involved, enter the information in the Trust 2 fields.
In the Vesting Information section, double-click the borrower or co-borrower who will be a beneficiary of the trust.
Select the appropriate settlor/ trustee type from the Vesting Type list:
- Settlor Trustee - Obligated, on title. In the case of a "self-declared trust" this individual is both the settlor and the trustee. They sign all documents in the package some documents as an individual, some as the trustee.
- Settlor - Obligated, not on title. This person owns the property and transferred their rights to a Trust. The person signs a limited number of documents as settlor.
- Trustee - Obligated, on title. This person has legal rights to the property and manages it on behalf of the Settlor for the beneficiaries. The person signs all documents in the package, some documents as an individual, some as the trustee.
- Title Only Settlor Trustee - Not obligated, on title. This person is a settlor trustee but is not on the loan. The person signs documents related to the property such as the security instrument. Documents related to the loan such as the note are signed as trustee only and not as individuals.
- Title Only Trustee - Not obligated, on title. This person is a trustee but is not on the loan. The person signs documents related to the property such as the security instrument. Documents related to the loan such as the note are signed as trustee only and not as individuals.
For a description of all vesting types, refer to the Vesting Types table below.
On the Trustee Of list, select the appropriate trust for the borrower.
In the POA Borrower field, type the name of the individual who has the power of attorney, if applicable. The name is printed on the closing docs.

In the unlikely event that an individual has been granted power of attorney for one of the signatories, the eSigning functionality for that signatory is disabled. You will need to print the disclosure documents and send them to the individual who has power of attorney.
In the POA Signature field, type the title or any additional signature text for the POA attorney.
- This text is printed on closing docs directly after the attorney name.
- If the field is blank, the text after the attorney name will default to the appropriate state-specific language, for example, Attorney-in-fact.
On the Vesting list, select Trustee for all trustee types except Settlor. Leave the selection blank for a Settlor.
Click OK.
To add beneficiaries of the trust, click Build Beneficiary in the Corporation/Trust 1 and/or Trust 2 section. The names of the applicable borrowers and co-borrowers listed in the Vesting Information section are added to the beneficiary list.
Click the Build Final Vesting button to generate the Final Vesting To Read field based on the vesting information.
- Manually edit the Final Vesting to Read text as needed.
In the Manner in which Title will be held field, select an option.

Corporations

Corporations are business entities, such as a corporations, LLC (limited liability company) or partnership. Use the Corporation/Trust 1 section to enter information about a corporation. After you add information for a corporation, use the Vesting Information section to assign borrowers as officers of the corporation and create the vesting statement. The corporation name is pulled into the Final Vesting to Read field when you build the final vesting. The corporation name and the names/titles of corporation officers are pulled into the signature block on the closing docs.

Add a corporation

In the Corporation/Trust 1 section, in the Corp/Trust Name field, type the name of the corporation.
In the Org. State field, click the name of the state in which the corporation was formed.
In the Org. Type field, select the type of business entity.
Optionally, in the Tax ID/Trust No. field, type the tax identification number of the corporation.
In the Vesting Information section, double-click the borrower or co-borrower who is an officer of the corporation.
In the Type field, select Officer.

For a description of all vesting types, refer to the Vesting Types table below.
In the POA Borrower field, type the name of the individual who has the power of attorney, if applicable. The name is printed on the closing docs.

In the unlikely event that an individual has been granted power of attorney for one of the signatories, the eSigning functionality for that signatory is disabled. You will need to print the disclosure documents and send them to the individual who has power of attorney.
In the POA Signature field, type the title or any additional signature text for the POA attorney.

This text is printed on closing docs directly after the attorney name.
If the field is blank, the text after the attorney name will default to the appropriate state-specific language, for example, Attorney-in-fact.

On the Vesting list, select the title of the officer.
Click OK.
Repeat steps 5-10 for additional borrowers who are officers of the corporation.
For the Final Vesting To Read field, click the Build Final Vesting button to create the text for the vesting statement based on the vesting information.
- Manually edit the Final Vesting to Read text as needed.

In the Manner in which Title will be held field, select an option.

Vesting Types

The table below provides a description of each vesting type, and indicates whether the vesting type is obligated to pay back the loan and is on the title (has rights to the property).


Type	Obligated	On Title	Description
Individual	X	X	Most common vesting type. Responsible for paying the loan. Full rights to the property. Signs all documents in the closing package.
Co-signer	X		Responsible for paying loan if the individual defaults, but no rights to the property. Signs documents related to loan portion such as the note, but not documents related to the property such as the security instrument (mortgage/deed).
Title only		X	Not on the loan, but has rights to the property. Signs documents related to the property such as the security instrument, but not documents related to the loan such as the note. (Most common is Husband and Wife, but could be a parent and child.)
Non Title Spouse			Not on the loan, no ownership rights to the property, but a security interest in contents inside the property. Signs documents to waive marital rights (also known as homestead or dower) indicating no claim to the property itself.
Trustee	X	X	Legal rights to the property. Manages it on behalf of the Settlor for the beneficiaries. Signs all documents in the package, some as individual, some as trustee.
Title Only Trustee		X	A trustee, but not on the loan. Signs documents related to the property such as the security instrument. Documents related to the loan such as the note are signed as trustee only and not as individuals.
Settlor Trustee	X	X	Both the settlor and the trustee for a self-declared trust. Signs all documents in the package, some documents as an individual, some as the trustee.
Settlor	X		Owns the property and transfers the rights to the property to a Trust. Signs a limited number of documents as settlor.
Title Only Settlor Trustee		X	A settlor trustee, but not on the loan. Signs documents related to the property such as the security instrument. Documents related to the loan such as the note are signed as trustee only and not as individuals.
Officer	X	X	Signs on behalf of the corporation or business entity that is on the title. All documents have the corporation name in the borrower field and the corporation name and officer name/title in the signature block.

Sellers

Use the Seller section to enter information for as many as four sellers if needed. Completing this section is optional.

Enter seller information

Enter up to four individual seller names in the Seller fields in the left column.

By default, seller names are copied into this section from the File Contacts tool. Names entered manually in this section are copied back to the File contacts tool.
If the Seller is a corporation or trust, enter the corporation or trust information in the right column.
Enter the corporation or trust name in the Corp Name field.
Select the Org. State in which the trust or corporation was formed.
Select an Org. Type from the list.
Type the tax identification number of the corporation or the number of the trust instrument.
Enter the name and title for as many as two officers who are authorized to sign the loan documents for the corporation or trust.