In addition, if the proposed instrument of conveyance is to be executed by an officer other than a Vice President, Chief Executive Officer, or President, a certified resolution authorizing said officer to execute on behalf of grantor must be recorded.

If we assume it is AR, then here is what you finance department says about private party exemptions:A person who engages in seller-financed transactions or who as a seller of real property receives mortgages, deeds of trust, or other security instruments on real estate as security for a purchase money obligation if: (a) The person does not receive from or hold on behalf of the borrower any funds for the payment of insurance or taxes on the real property; and (b) The seller does not sell the liens or mortgages in the secondary market other than to affiliated or subsidiary persons; (xi) An individual or husband and wife who provide funds for investment in loans secured by a lien on real property on his or her or their own account and who do not:(a) Charge a fee or cause a fee to be paid for any service other than the normal and scheduled rates for escrow, title insurance, and recording services; and (b) Collect funds to be used for the payment of any taxes or insurance premiums on the property securing the loans; The issue with the rule interpretation is that in some states an MLO must be employed by a company licensed to conduct the activity of brokering or lending.

I'd say that unless it's required by regulation or law, small investors should not be using NRD instruments, it's certainly not customary practice.I did not address personal guarantees, which is different from NRD.

In addition, if you read most conventional security instruments (mortgage, DOT) similar language is included.

Kinda like the Music Man who came to town to teach music to sell instruments, who knew nothing about teaching music, so he adopted the "think" system, just think you can and you can.

In fact, scores are not the issue to prudent lending requirements, scores are a product of automated underwriting systems (AUS). :)

I was also having a tough time automating transaction detail specific to a closing transaction.  

So the suggestion of not recording the conveyance of the real property can undermine the counties collection of taxes on the sale and taxes on the instrument not to mention any increase property taxation that would occur.

As to the original post (OP), suggest you reverse engineer a few properties to see the sequence of acquisition of title, encumbrance by trust deed or mortgage, trustees deed upon sale or court order, etc.Right off the bat you'll see that there's a difference with trust vestings used to identify the beneficial interest of a securitized mortgage, as opposed to an estate planning instrument or investor using a title holding trust.

Also the #46 on the prelim exclusion saying : """any invalidity or defect in the title of the vestees in the event that the trust refereed to herein is invalid or fails to grant sufficient powers to the trustee(s) or i the even there is a lack of compliance with the terms and provisions of the trust instrument.