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#1982364 - 12/11/14 01:28 PM Successors-in-iInterest - Ability to Repay
Pierrette S.Champagne Offline
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Joined: Feb 2004
Posts: 3
When a successor in interest of a deceased borrower with respect to the property secured by the deceased borrower's mortgage loan.
The Heir has been paying the mortgage and now wants to be added to the loan to close the estate. We want to do a note mode to add the heir however we also want to make sure the loan will be sound going forward.
Can a bank pull a credit report on this heir and ask for w2 to evaluate this heir can pay? As I read the 12CFR Part 1026 that is dated 07-11-2014 I'm not sure.
We are considered a Small Bank.

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Ability to Repay/Qualified Mortgage Rule
#1982383 - 12/11/14 02:09 PM Re: Successors-in-iInterest - Ability to Repay Pierrette S.Champagne
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
You are talking about allowing her to assume the loan, Of course you are allowed to vet her for creditworthiness.
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#1982409 - 12/11/14 03:12 PM Re: Successors-in-iInterest - Ability to Repay Pierrette S.Champagne
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I agree. The successor in interest guidance you referenced clarified that under certain circumstances those assumptions are not subject to the ATR rules however the guidance does not prevent you from performing your due diligence in determining if the successor is an acceptable credit risk.
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The opinions expressed are mine and they are not to be taken as legal advice.

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