FHA Increases Maximum Allowable Assumption Fee

In the latest update to its Single Family Housing Policy Handbook 4000.1, the Federal Housing Authority (“FHA”) has increased the maximum allowable charge for processing the assumption of an existing FHA-insured mortgage from $900 to $1800. The maximum allowable charge has been the same since 2016. In making this change, FHA indicated the increase is an effort to “compensate mortgagees for costs of processing assumptions at a rate that is appropriate for today’s market.”

The allowable charge increase is effective August 19, 2024. For a copy of the latest FHA Single Family Housing Policy Handbook, please visit FHA Single Family Housing Policy Handbook.