VA issues circular to address loan holder fees on assuming a VA-guaranteed loan

Orrick, Herrington & Sutcliffe LLP
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Orrick, Herrington & Sutcliffe LLP

On February 26, the Department of Veterans Affairs published a circular to address assumption fees, specifically permitting a loan holder to charge an additional assumption-related fee based on the location of the relevant property when the assumption of a VA-guaranteed loan closes. This additional fee is in addition to the previously permitted assumption fees which must be less than $300 for loan holders with maximum authority or $250 for loan holders without automatic authority. The VA set the amount of the additional assumption fee allowed in Exhibit A to the circular, which can be found here.

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