Assumption question--
We have a VA purchase Assumption. A vet is assuming the loan of another vet.
Terms of the current loan - loan amount, term, rate and P & I - should be the same for the new Assumption loan.
The current owner has made additional principle payments over the 7 years he has owned it, so using the current terms, the P & I doesn't match on the new loan. It sounds like re-amortizing a loan is not the normal practice, so is not something our Servicing dept is wanting to do.
Here is my question. If we do some changes in our system to get the P & I on the new loan to match the current loan, then our term will be wrong (maturity date will not match the current mortgage filed) on the LE/CD. The difference is about 6 years. Wouldn't it be not in good faith to disclose all of the current terms, even though we know the term/maturity date is incorrect? Or are we okay because at the higher P & I payment, the loan will mature sooner than the term shown?