Why would a mortgage company request a copy of a trust agreement when purchasing a home.

My friend and I have purchased homes in the past and have never been asked for a copy of our personal trusts. Is this a new question being asked by underwriters?

Asked on June 25, 2016 under Real Estate Law, Arizona

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The short answer is, they are asking about because they want to see it. Lenders are free to impose any requirements, including documentation or requests for information, they want on loan applicants, so long as those requirements do not descriminate against people on certain protected grounds (e.g. do not discriminate against racial minorities). Lender don't have to loan; they choose freely whether to loan, how much, to whom, and can ask for any information they want to satisfy themselves that the loan is a good deal (e.g. likely to be repaid). 


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