Consumer complaint received 2022-09-21
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: AMERISAVE MORTGAGE CORPORATION (NV)

My wife and I refinanced an existing mortgage with AmeriSave Mortgage Corp. with both of us on the loan. At some point, XXXX XXXX XXXX  XXXX ) purchased the loan from AmeriSave and kept AmeriSave as the servicer of the loan. My wife and I have since divorced. In the divorce decree, I keep the house and take over all responsibility for the mortgage and my ex-wife gives up all interest in the house and liability for the loan. 
AmeriSave insists that the only way to process this change is to go through a full assumption process, including verifying my ability to repay ( ATR ). 
Under CFPB 's Regulation Z interpretive rule regarding successors in interest, removal of my ex-wife from the mortgage, making me the sole obligor on the loan, in compliance with our divorce decree, would not meet the definition of an assumption, since it would not create a new loan and therefore would not require new disclosures and would not be subject to the Ability To Repay rule. The divorce decree is final, as of XX/XX/XXXX, naming me as the sole owner of the property, and we have already filed that change with the county. 
The CFPB rule, issued on XX/XX/XXXX says, in multiple ways, " where a successor-in-interest ( successor ) who has previously acquired title to a dwelling agrees to be added as obligor or substituted for the existing obligor on a consumer credit transaction secured by that dwelling, the creditors written acknowledgement of the successor as obligor is not subject to the Bureaus Ability-to-Repay Rule ( ATR Rule ), 1026.43, because such a transaction does not constitute an assumption as defined by Regulation Z 1026.20 ( b ). '' and " A successor is a person who receives legal interest in a property, typically by a transfer from a family member, by operation of law upon anothers death, or UNDER A DIVORCE DECREE or separation agreement. In all of these situations, where the successor acquires property that is subject to a mortgage, the successor is not personally liable for the associated debt, but may choose to assume the debt. '' and " In general, as discussed in part II below, in these situations, where the addition or substitution of the successor as the obligor is not an assumption under 1026.20 ( b ), such addition or substitution is not subject to the ATR Rules requirements. '' AmeriSave denies that this rule applies to them and states that they are instead required to follow the guidelines issued by XXXX XXXX ( a private, government-sponsored corporation, not a government agency ), which state, " If the previous borrower requests a release of liability, the servicer must determine that the transferee 's credit and financial capacity is acceptable ''.

AmeriSave has stated in an email, " Although this can be the process for loans under CFPB, we must follow agency guidelines, in this case, XXXX XXXX XXXXXXXX requires a release of liability in the case of a divorce in which the assumer must go through credit qualifying. '' Amerisave seems to believe thaXXXX XXXX XXXX is a government agency, which it isn't, and that the in-house guidelines from that private corporation somehow supercede the federal regulations issued by CFPB, an actual government agency.