The bill would allow a qualified individual to assume a current loan guaranteed under the Section 502 Single Family Housing Loan Guarantee Program when the property is transferred to them. The original borrower, co-borrowers, and guarantors would be relieved of liability for the loan. The Agriculture Secretary would set the terms of each assumption. The changes would apply to loans guaranteed on or after the bill’s enactment.
A qualified person receiving a property could take over its current guaranteed loan. The Agriculture Secretary could set the terms of the assumption. The bill has been referred to the House Committee on Financial Services.
The bill does not set fee amounts. It allows the Agriculture Secretary to issue a rule permitting loan servicers to charge borrowers fees for transaction costs.
No publicly available information.
No publicly available information.