DocMagic, Inc.'s Compliance Department recently updated the "assumption fee" provision in the Fannie Mae first-lien, conventional second-lien, Veterans Administration ("VA") and FHA Nevada and Oklahoma security instruments to track the maximum assumption fee that a lender is permitted to charge under Fannie Mae, VA and FHA guidelines.

• For conventional Fannie Mae first - and second - lien security instruments, the following default language will populate as the assumption fee that may be charged: one percent (1%) of the unpaid principal balance, but not less than $400 or more than $900. (See Fannie Mae Single Family 2006 Servicing Guide, Part I, Chapter 2, Section 203.04.)
• For VA loans, the following language will populate as the default assumption fee: $300, plus the actual cost of any credit report. (See VA Servicing Guide, Chapter 1, Section 1.14.)
• For FHA loans, the following will populate as the default assumption fee: $500, as a maximum amount, depending on whether the assumption includes a release of liability. (See FHA Single Family Handbook 4330.1 REV-5, Administration of Insured Home Mortgages, Chapter 4, Section 4-4.)

Any customer desiring to modify the above default language should contact the Customer Service Department, at (800) 649-1362.