Per the 7/8/2014 CFPB regulatory implementation (consumerfinance.gov/f/201407_cfpb_bulletin_mortgage-lending-rules_successors.pdf) regarding Mortgage Lending Rules to Assist Surviving Family Members - is it required if on our portfolio loans it has not been our practice to allow assumptions to allow a confirmed SII to assume the loan? Also, our notes verbiage does not disallow it.

It obviously would be to the banks benefit as in many cases there either is no spouse or both are deceased and we no long have a liable borrower for our mortgage We do secondary market FNMA loans and they do allow assumptions even for hardship workout modifications. Thus we wished to roll this out and include portfolio as well.

What are you otherwise planning to do. Foreclose?

No. The would pay.as a SII. They have to ask to assume the debt,

On portfolio, previously; we would have told them they had to have ATR and then refi the property.

Now with a SII policy we want to allow assumption. We were going to ask them to pay for the title work and sign an assumption agreement. I do not believe any other fees would be charged.

Well, this is really more of a "right thing to do" situation. I guess I would have to ask that if the SII qualified, what is the harm in letting them assume the existing loan. The loan is already on the books and would have continued under the present terms anyway without the death of the borrower. Even if your notes said that you do not allow assumptions, as long as you were consistent in the process of making the offer to a SII, the death of a borrower is not a prohibited class under Regulation B.