“To amend the Housing Act of 1949 to permit the assumption of loans under the Doug Bereuter Section 502 Single Family Housing Loan Guarantee Program.”
No CRS summary available for this bill.
This section revises the assumption provision for loans guaranteed under the Section 502 single family housing loan guarantee program (i.e., USDA guarantees of private loans to low- and moderate-income households for single-family homes in eligible rural areas). It (1) authorizes the Secretary of Agriculture to permit assumption of a current guaranteed loan by any qualified individual upon transfer of the property, (2) releases the transferor borrower, co-borrowers, and guarantors from liability upon such assumption, and (3) requires the Secretary to provide for assumption of the loan's obligations, rights, and interests (or other terms as appropriate). The changes apply to loans guaranteed on or after the date of enactment, and the Secretary may issue rules allowing servicers to charge borrowers fees for associated transaction costs.