The Federal Housing Administration (FHA) recently updated its policies by increasing the fees mortgage servicers are allowed to charge — from $900 to $1,800 — when processing an assumable loan. Government-insured mortgages have the unique feature of being assumable to homebuyers. Assumable loans create opportunities for those with FHA-mortgages who are struggling to sell their homes in high-interest-rate environments, and consumers who wish to purchase but are sidelined because of higher monthly payments. However, many practitioners report delayed transaction times (often 30 to 60 days, or more), as the time and work needed to underwrite and process the assumption does not correlate to the amount servicers are able to charge. The National Association of Realtors commends FHA for increasing the allowable fees, which will help facilitate the transaction and assist homebuyers and sellers.
Source: NAR; 5/21/2024