Assumption reporting

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Question:

We are considering originating assumption loans. Our interpretation is that assumptions are indeed HMDA reportable. However, we cannot locate any specific identifiers within the HMDA reporting database that specifically classifies the transaction as an assumption. Can you provide further guidance? These would be on transactions where indeed there is a new borrower versus those where they are removing an individual due to death, divorce, separation, etc.

Answer:

Provided the ownership of the property (the deed) was not transferred prior to closing for the assumed loan, the loan is a purchase for HMDA reporting. There is no HMDA field on the LAR that flags a transaction as an assumption. Refer to Comment 1003.2(j)-5.

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