For the reporting cycle following the assumption date, the system will automatically report "H" (loan assumed by another party) in the Special Comments field.

Note: "H" will not appear on the Credit Reporting screen but does appear on the transmission.

The seller’s relationship to a loan is also reported as terminated by sending "T" (association with account terminated) in the ECOA Code for each borrower. The system will automatically report "T" for each of the sellers’ names which are on the Loans > Loan Assumption screen, Seller Information tab.

Note: "T" will not appear on the Credit Reporting screen but does appear on the transmission.

The seller information is reported for the reporting cycle following the Assumption Date (Account Detail screen). For instance, if the loan has an assumption date in April, the credit reporting transmission created on approximately May 9th would report the seller’s information.

The following month, the new borrower’s name, social security number, etc., will be reported. The system will automatically report the 24-month payment profile will display B’s (no payment history available prior to this time) for the months prior to the assumption date.

The ACB (Association of Credit Bureaus) task force has indicated the following:

Since the original borrower is not actually making payments, lenders should report Special Comment H (loan assumed by another party) and ECOA Code T (Terminated) for sellers at the time of assumption. Only the new borrower on the account should be reported on an ongoing basis.

If the new borrower defaults on the loan and the original borrower is required to make payments, the original borrower should be re-reported without the Special Comment H and with a correct ECOA code (individual, joint, co-maker, etc).