Creating a Better Loan Assumption Process for Borrowers
May 4, 2015
Our Freddie Mac Servicing Standard means ensuring a positive borrower experience through the life of the loan – and loan assumptions are a key example. While assumptions are handled after origination, Production – both at the Seller and at Freddie Mac – still plays an essential role by managing borrower expectations and creating a better feedback loop.
We recently held an Assumption Summit with senior Production and Servicing representatives from selected customers to discuss assumption best practices, as well as better ways to increase communication and transparency in the process. Two key themes around marketing and education clearly emerged. As a result, we have created two communication tools for you to share with borrowers to help ensure a smooth loan assumption process as well as what the expectations for a complete assumption package look like:
- Providing a Better Loan Assumption Process for Borrowers – Provides best practices for originators, each of the steps required for the assumption process, and the documents that make up the Loan Assumption request package.
- Recommended Loan Assumption Provisions for the Purchase and Sale Contract – Legal language for the Purchase and Sale Contract.
If you have any questions, feel free to contact your Freddie Mac representative.