If an assumed Mortgage goes into Default, the Mortgagee must not report these Defaults to consumer reporting agencies for former Borrowers, whether those Borrowers remain legally liable for the mortgage debt or have been released from liability. The Mortgagee should notify any Borrowers that remain liable for the mortgage debt that the assumed Mortgage is in Default.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
For policy information see Handbook 4000.1 III.A.3.b.ix. available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh