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#1419458 - 07/23/10 06:40 PM Assumption
Soccer Offline
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Joined: Jan 2010
Posts: 1,028
Utopia
I have just read section 226.20 Subsequent disclosure requirements in regards to assumptions and still do not believe I have the answer I need.It is required within reg z that assumptions be disclosed on the TIL? I realize that if an assumption takes place that new disclosures are required, but I'm not really clear about the requirements. I thought that assumptions would be more of a contractual issue.
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Lending Compliance
#1419469 - 07/23/10 06:52 PM Re: Assumption Soccer
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
If it is a residential mortgage transaction 226.18(q) requires a disclosure as to whether the loan is assumable or not.
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#1420049 - 07/27/10 12:27 PM Re: Assumption Soccer
Soccer Offline
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Joined: Jan 2010
Posts: 1,028
Utopia
I am in need of additional help with this topic! Our vendor is now saying that the need for the assumption verbiage is purpose driven. I did not determine that from the reg, I thought it was pretty clear in section 226.18(q). Any further guidance anyone has would help.
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#1420059 - 07/27/10 12:39 PM Re: Assumption Soccer
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
A Residential Mortgage Transaction (RMT) is defined at 226.2(a)(24).

If the purpose of the loan is not a RMT then the assumption clause is not required by 226.18(q).
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#1420087 - 07/27/10 01:14 PM Re: Assumption Dan Persfull
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Joined: Jan 2010
Posts: 1,028
Utopia
Thanks!
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#1514178 - 02/24/11 05:32 PM Re: Assumption Soccer
Soccer Offline
Diamond Poster
Joined: Jan 2010
Posts: 1,028
Utopia
I need some help with this topic from last summer! Examiners are questioning why we do not have the assumption clause on HE Loans not for RMT. The only time our system provider has the assumption clause flood to the form is if we direct the purpose as a purchase money (piggy back.) Based on my research and the guidance from Dan I believe we are correct but just need to make sure I have all my bases covered when asked to explain.

Thanks
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