I have an assumption request from a customer which I need some guidance on.

FHA loan with borrowers A and B. Borrower A wants to pursue an assumption by removing B and adding C. The assumption chapter in HUD Handbook 4155 does not give much guidance on what type of transaction constitutes an assumption-my definition of an assumption is the existing borrower is removed from the current loan and it is then assumed by "new" borrowers. My scenario of swapping borrowers doesn't make meet my definition of an assumption.

Calling HUD is useless-I got the "check the handbook for the answer".

If anyone has experience with FHA Assumptions I would appreciate the feedback.