Client Bulletin: August 19, 2024

Yee Haw! Cenlar’s Cocktails and Conversation Series Returns in Denver

We’re excited to announce that our Cocktails and Conversation reception returns this fall in the Mile High City, and you’re invited!

If you’re travelling to Denver for the MBA Annual Convention, please join us at the History Colorado Center for a reception on Sunday, October 27, 2024 from 8-10 p.m.

At the museum, you’ll be able to explore the colorful history of our nation’s 38th state and of the American West.

Keep an eye on your inbox for a formal invitation, coming later this month.

Action Needed: Transfers of Ownership to a LLC, Formal Assumptions, and Release of Liability for Asset Loans

Cenlar is in the process of ensuring validation of your requirements related to the handling of Transfers of Ownership to a Limited Liability Company (LLC), Formal Assumptions, and Release of Liability for asset loans. Client Managers will be reaching out to you to confirm that these handling guidelines are accurate.
The requirements for a Transfer of Ownership of property to another person or inter vivos trust is clearly set forth in regulatory requirements. Generally, these transfers are made due to death of the homeowner, divorce or into an inter vivos trust for the benefit of the homeowner.

A Formal Assumption occurs when an individual requests to assume an existing loan. As part of an assumption transaction, you as owner/servicer would be releasing the current homeowners from liability and placing the responsibility entirely on a new “buyer”. This happens when the current homeowners on the loan are looking to have a new individual purchase the property and become liable for the existing mortgage through an assumption.

A Release of Liability removes one or more individuals from all obligations and places the responsibility on the remaining borrower. A Release of Liability typically occurs in the case of a divorce where one borrower is awarded the property through a final Divorce Decree or Separation Agreement.

Cenlar is requesting that clients provide clear guidance of their requirements related to Transfers of Ownership into a LLC, Formal Assumptions, and Release of Liability for asset loans. Absent your guidance, we will default to the Fannie Mae guidelines for all investors, effective October 1, 2024.

Any future updates to your guidelines regarding Transfers of Ownership to a LLC, Formal Assumptions and Release of Liability should be submitted through a Client Request Form via CCM.

An Update with Cenlar Leadership on September 12

Please save the date for our next update.

WHAT: Cenlar leaders will discuss their vision for the future of the organization and how that vision will enhance the client and homeowner experience.

WHEN: Thursday, Sept. 12, 2024 at 3 p.m. ET

We will send you access information for the meeting closer to the date of the event.

Please note, this call is for current Cenlar clients only. Although you may forward this invite to interested parties within your organization, please do not forward dial-in details to other third parties. Any information shared on the call is subject to the confidentiality provisions of your respective subservicing agreement.