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CHLA Commends FHA on Raising the Loan Assumption Fee

(Washington, D.C.) – The Community Home Lenders of America (CHLA) released the following statement regarding FHA raising their maximum loan assumption fee:

“CHLA commends FHA Commissioner Gordon for increasing the maximum fee lenders can charge for an FHA loan assumption from $900 to $1,800,” said Scott Olson, executive director. “Long a CHLA priority, this change is crucial to allowing lenders to recoup their costs of a loan assumption, which can facilitate significant mortgage savings for homebuyers by using existing lower rate FHA mortgage loans.” CHLA has made raising the permissible FHA lender loan assumption fee a key priority – including this in the first set of FHA recommendations CHLA made to the incoming Biden Administration in January 2021.