I have an assumption that involves the creation of a new mortgage obligation made of the following items: existing mortgage balance, closing fees, and cash to the principals. What is exact Loan Amount to report? Official commentary indicates there are instances where you have assumption involving existing mortgage without the creation of a new mortgage obligation. But, where you have a new mortgage obligation, shouldn't one report the entire balance: the existing balance, fees and any funds paid as part of the assumption as the loan amount, not just the balance from the existing obligation. Thoughts?

In Reg. C, official interpretation to 1003.4(a)(7)

(7) The amount of the covered loan or the amount applied for, as applicable.

(i) For a closed-end mortgage loan, other than a purchased loan, an assumption, or a reverse mortgage, the amount to be repaid as disclosed on the legal obligation. For a purchased closed-end mortgage loan or an assumption of a closed-end mortgage loan, the unpaid principal balance at the time of purchase or assumption.

2020 HMDA Getting it Right says that "[a]ssumptions extensions of credit even if the new borrower merely assumes the existing debt obligation and no new debt obligation is created Comment 2(d)-2.i. To me, that means there are instances where new obligations are created; thus, would warrant that the loan amount to report includes fees, cash paid to principals, etc, necessary to effect the assumption. I still need to know I'm on the right track. .
Thanks

You're misreading it. Yes, an assumption is an extension of credit if the creditor of an obligation allows a new borrower to assume the existing debt of a seller. If the existing obligation is satisfied and replaced by a new obligation from the purchaser, you have a purchase transaction for HMDA and a purchase transaction for TRID. It is not an assumption under Reg Z or HMDA, whether or not any "new" funds are advanced, regardless of what the buyer and seller label the transaction.

True assumptions don't happen much any longer. Seller wants to sell, buyer wants to buy, and wants to assume the seller's mortgage because (1) it's got an attractive rate compared with current rates; (2) seller doesn't have great credit and/or is wary of applying for a loan; or (3) some other reason. Seller gives buyer a quit-claim deed. Seller remains liable on the note, and the buyer's title remains subject to the mortgage. Lender is unaware of the transaction.

Most mortgage agreements today include a prohibition on assumptions. Lenders want to know who owns their collateral and whom to pursue for late payments. And rates today are generally lower than on any mortgage loan made over the past several years.