[WSBAPT] TODD and Refinancing issue

[Inge Fordham]

Would the lender accept a signed and notarized consent from the beneficiary in lieu of the course of action outlined below?


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Inge A. Fordham | Attorney
Fordham Law, PLLC
3218 Sixth Avenue | Tacoma, WA 98406
Office: (253) 348-2657 | Fax: (253) 276-0280
www.fordhamlegal.com<http://www.fordhamlegal.com>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Zack Hofstad <zack at hofstadlaw.com>
Date: Wednesday, November 4, 2026 at 12:26 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] TODD and Refinancing issue

I just heard from a past client that their refi is being held up due to a TODD he recorded a few years ago.

The lender sent me the following information from Fannie Mae, which states in the middle of the page that TODDs will prevent loan eligibility because they allow for the current owner of the property to transfer ownership without the consent of the named beneficiary on the TODD.

https://selling-guide.fanniemae.com/sel/b2-3-01/general-property-eligibility

This was news to me.  Has anyone faced this issue, and is there anything to be done besides recording a revocation of the TODD, closing on the refi, and then recording a new TODD (which is the lender's suggested plan of action)?

--
Zack Hofstad
Hofstad Law
4305 Lacey Blvd SE
Lacey, WA 98503
phone/fax:  360.515.7879

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