COMAR 05.03.02.10. Transfers and Assumptions

A. Nonmonetary Transfers.

(1) The Administration may approve nonmonetary transfers of interest in property that is security for a mortgage loan made under the Program if the requirements of the Code and the applicable mortgage insurers can be satisfied.

(2) The transferee shall be required to execute appropriate affidavits, modification documents to the note and deed of trust, recapture tax notice, and other documents in the form provided by the Administration.

(3) The Administration reserves the right to disapprove transfers under circumstances where it appears that there was deception or sham on the part of the borrower in connection with the original mortgage loan in an attempt to avoid ineligibility under the requirements of Regulation .04 of this chapter .

B. Assumptions for Consideration. The Administration will permit an assumption of one of its mortgage loans only if the assumption meets the:

(1) Eligibility requirements for new mortgage loans contained in Regulations .04 and .05 of this chapter; and

(2) Requirements of the applicable mortgage insurers.

C. Compliance with the Code. Transfers or assumptions of interests in property in accordance with §A or B of this regulation are subject to modification from time to time to comply with requirements of the Code.

Cross References 05.03.02.17E