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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">If the refi borrower is the current title holder, then a TODD does not seem to threaten the secured status of refi note holder/DOT beneficiary. I am probably missing something,
but why would Fannie Mae be concerned about a TODD beneficiary if said beneficiary is not the refi borrower and has no present interest in the property? The TODD beneficiary, if they come to hold title, will take subject to the secured refi debt. Perhaps
Fannie Mae wishes to avoid the appearance of the refi lender consenting to the potential transfer of ownership to a non-borrower that is of record when the refi occurred? Or the ‘hassle’ of dealing with the non-borrower if they come to hold title as a result
of a TODD?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The guidelines appear to have some internal conflict. In B2-2-01 Establishing Borrower Ownership Interest, if the property is subject to a life estate, the life estate holder
MUST be a borrower, while the remainderman (who is ‘guaranteed’ to receive the property) is optional as a borrower. Although, both must sign the security instrument. This makes enough sense. Whereas, B2-3-01 General Property Eligibility ‘Acceptable Forms
of Property Ownership’ may be interpreted as being overly concerned about a non-borrower TODD beneficiary that may or may not receive the property upon the current owner’s passing? The only way I can reconcile the two provisions is if the refi borrower contemplated
under B2-3-01 is the TODD beneficiary and not the current title holder. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Daniel L. Hembree<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;color:black">The Hembree Law Firm, PLLC</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Zack Hofstad<br>
<b>Sent:</b> Wednesday, November 4, 2026 12:25 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] TODD and Refinancing issue<o:p></o:p></span></p>
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<p class="MsoNormal">I just heard from a past client that their refi is being held up due to a TODD he recorded a few years ago. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">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. <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><a href="https://selling-guide.fanniemae.com/sel/b2-3-01/general-property-eligibility">https://selling-guide.fanniemae.com/sel/b2-3-01/general-property-eligibility</a><o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">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)? <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span class="gmailsignatureprefix">-- </span><o:p></o:p></p>
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<p class="MsoNormal">Zack Hofstad<o:p></o:p></p>
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<p class="MsoNormal">Hofstad Law<o:p></o:p></p>
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<p class="MsoNormal">4305 Lacey Blvd SE<o:p></o:p></p>
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<p class="MsoNormal">Lacey, WA 98503<o:p></o:p></p>
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<p class="MsoNormal">phone/fax: 360.515.7879<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:Roboto;color:#2D3748">**This is a transmission from the law firm of Hofstad Law, Co., and may contain information which is privileged, confidential, and protected by the attorney-client or attorney
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