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.
Last edited by Football=Soccer..get it right, people!; 02/12/21 05:45 PM.