What does the 'Loan is Assumable' check box do?

With the May 2016 release, a new check box is available on the Loan Definition page for In-house mortgage transactions, Fannie Mae/Freddie Mac 3200 transactions and Fannie Mae/Freddie Mac 3244.1 transactions.

This check box is used to determine which Assumption option is checked on the Loan Estimate and Closing Disclosure.

Loan Estimate

Closing Disclosure

• If the Loan is Assumable check box is selected, the “will allow, under certain conditions, this person to assume this loan on the original terms.” box is checked.
• If the Loan is Assumable check box is not selected, the “will not allow assumption of this loan on the original terms.” box is checked.
  Note: If the transaction is not one of the types listed above, the “will not allow assumption of this loan on the original terms.” box is automatically checked.
• With the September 2016 release you are able select whether to default this check box as selected in Administration, under Policies, within each Mortgage Documents policy.