OAR 441-720-0225: Adoption of Federal Statutes, Rulings, Policy Regarding Mortgage Assumptions

(1) A state credit union is authorized to exercise the powers to allow nonmembers to assume real estate mortgages of members conferred on a federally chartered credit union as follows: (a) The assumption is in conjunction with the nonmember’s purchase of the member’s principal residence; (b) The nonmember assumes only the remaining unpaid balance of the loan; (c) The terms of the loan remain unchanged; and (d) There is no extension of the original maturity date specified in the loan agreement with the member. (2) An assumption is impermissible if the original loan was made with the intent of having a nonmember assume the loan.