D1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)

For purposes of enforcing the due-on-sale (or due-on-transfer) provision, if any, in the security instrument, the servicer must consider all of the following situations to be a transfer of ownership:

• the purchase of a property “subject to” the mortgage loan,

• the assumption of the mortgage loan debt by the property purchaser,

• any exchange of possession of property under a land sales contract or any other land trust device, and

• in cases in which an inter vivos revocable trust is the borrower, any transfer of a beneficial interest in the trust.

When the servicer receives a request for a statement of account in connection with a possible transfer of ownership of a property, or if the servicer learns after the fact that a transfer has occurred, the servicer must take the actions listed in the following table.

The statement of account that the servicer issues in connection with a possible transfer must clearly state the items listed in the following table.