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.