D2-3.4-04, Qualifying Mortgage Assumption Workout Option (11/08/2017)

If someone is interested in purchasing a property that secures a delinquent mortgage loan with an enforceable due-on-sale (or due-on-transfer) provision and assuming the mortgage loan, the servicer must take the actions listed in the following table.

If approved by Fannie Mae, the servicer must document each approved assumption with an assumption agreement, or by an assumption and release agreement if a release of liability was agreed to, and record the agreement if required by state law. The servicer must follow the procedures in Completing a Transfer of Ownership in  F-1-17, Processing a Transfer of OwnershipF-1-17, Processing a Transfer of Ownership for detailed requirements related to executing the assumption (or assumption and release) agreement.

As a condition of approving the assumption, the servicer may charge the property purchaser an assumption fee (see Allowable Fees for Servicing in  A2-3-05, Fees for Certain Servicing ActivitiesA2-3-05, Fees for Certain Servicing Activities). The servicer is authorized to pass any out-of-pocket expenses related to the assumption on to the purchaser.