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ChFEBC℠ Blog

Loan Assumption

By websitebuilder • September 22, 2022
This is not legal advice, and qualified legal counsel should be sought for any legal purpose. VA Mortgage Loan and Loan Assumption for Veterans. The VA recognizes life events occur and remain focused on meeting the needs of veterans during such times. Undoubtedly, it was not the intent for any veteran to be “forced” to forfeit an entitlement or benefit due to an unplanned circumstance. The VA mortgage Loan program is no exception. While a divorce may not be avoidable, alternatives are provided for the veteran to continue with the VA mortgage loan when their spouse is a non-spousal veteran (NVS). From the beginning of the VA mortgage loan process education and transparency is provided for both co-borrowers. Explanations and procedures are including in cases of default and removing a co-borrower. Likewise, continuous opportunities are made available through transactions as well as posted publicly for both parties to understand the program and its’ affects in different situations. More specifically, the VA Pamphlet 26-7, is provided to the parties and not only states a veteran can release a spouse from joint owners, joint borrowers in the event of a divorce, but the ways in how to accomplish such. The goal is always to protect the veteran’s benefit while acknowledging a NVS’ need for loan release of liability. Some alternatives include refinancing, but with restrictions from lenders as well as the VA. These options do not avoid refinance charges or other lender fees. In those instances, the terms of the loan will reflect the current housing and lending interest rates rather than original terms of a mortgage. They can create future financial burdens with increased fees, interest rates and payments. The simplest way to protect a veteran’s VA mortgage loan benefit is to utilize a “loan assumption” with a “release of liability” (ROL). A loan assumption is not the same as a refinance loan. It allows a veteran to maintain the original VA mortgage loan terms and conditions. The VA mortgage loan would be “assumed” by the veteran while a NVS would be released (ROL) as a joint owner/borrower. The VA loan assumption and NSV ROL appears to be the best strategy if it would burden a veteran with increased monthly payments. Prior to March 1, 1988, loan assumptions were automatic. Thereafter, loan assumptions are required to be requested through the lender and the VA for permission. In the event, a lender cannot provide permission for a loan assumption, a loan can be transferred to another lender who can. The first step required would be to secure a lender for loan assumption. Once acquired, the lender should begin their loan assumption process. Upon completion of the loan assumption, a ROL through the Regional Loan Center (RLC), Department of Veterans Affairs in the area should be filed. Keep in mind a ROL has specific language to be included for success. There is a prerequisite, however. Loan assumptions require a legally binding separation agreement or divorce decree. But a signed separation agreement by all parties based on the local laws and ordered by the court can often be used in lieu of the final divorce decree. This is ultimately the first step and would seemingly be arranged through a negotiation process. The VA has provided the VA loan assumption method specifically to preserve well deserved VA Loan Mortgage benefits for veterans. Divorce should not impede, terminate, or cause a burden to a veteran regardless of the circumstances. Please know your rights and advocate for yourself!
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Why Work with a ChFEBC℠?

All federal employees should seek this designation when they plan for their financial wellbeing.

ChFEBC℠ means Chartered Federal Employee Benefits Consultant. A ChFEBC℠ has a thorough understanding of CSRS and FERS retirement annuities, the Thrift Savings Plan (TSP), Federal Employee Group Life Insurance (FEGLI) and other benefits that only federal government workers may have.

A ChFEBC℠ has devoted hours of course study and self-education to master federal benefits and their effective application. Different from other designations, a ChFEBC℠ must be retested annually. Things change and your advisor must be continually current. A ChFEBC℠ may have additional designations and registrations, but the ChFEBC℠ designation is unique to financial factors that affect only you. ChFEBC℠ study mitigates the steep learning curve that other advisors must conquer.

ChFEBC℠ requires highly specialized education in CSRS and FERS annuities and the different rules that apply to CSRS Offset and FERS Transferees, Special Provision FERS like air traffic controllers, law enforcement officers, reservists, and firefighters. This education extends to your FEGLI options, your FEHB (medical plan) options, the Thrift Savings Plan, long-term care, Social Security eligibility and choices, and to the individual concerns of survivor benefits and eligibility of children with special needs. A ChFEBC℠ training goes beyond facts, rules, and constructions. It includes discovering the right mix of information to guide your unique and personal circumstances. You, the federal employee, are the reason for all this learning. It must serve you and your needs, first and foremost.

It isn’t easy to be eligible to earn the ChFEBC℠ designation. First a professional must have a minimum of three years of experience in the financial industry, be a fiduciary and have a thorough knowledge of insurance, benefits planning, retirement planning, estate law, or personal accounting. Next there is a background review with FINRA (Financial Industry Regulatory Authority) and SEC (Securities Exchange Commission) to assure that our professional has the appropriate registrations. Any findings that prove questionable integrity become disqualifiers. The purpose of this extensive scrutiny is to assure that you receive objective guidance that is in your best interest. A ChFEBC℠ must earn and validate your trust and respect in every facet of the relationship. Snow Federal Retirement Seminars & ChFEBC℠, LLC enforces the highest integrity among the professionals we designate.

A general practitioner may be able to explain the need for a pacemaker, but a cardiac surgeon (a specialist) is the choice to implant one. If you have access to a Chartered Federal Employee Benefits Consultant, a ChFEBC℠, you have a specialist who is uniquely qualified to help you build and maintain your financial wellbeing. If you’d like our help to find a ChFEBC℠ local to you, contact us at www.fedseminars.com, info@fedseminars.com or 800-696-3505 or visit us at www.chfebc.com to locate a ChFEBC℠ designee by state.

Find a Chartered Federal Employee Benefits Consultant℠ Near You 

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Shaking Hands — Elizabeth, CO — Snow Federal Retirement Seminars & ChFEBC℠, LLC.

ChFEBC℠ of the Month

Alexandra Márquez, ChFEBC℠ — Elizabeth, CO — Snow Federal Retirement Seminars & ChFEBC℠, LLC.

RUTH KITZMANN 

CDFA® , AIF®

SENIOR VICE PRESIDENT, INVESTMENTS 


Compassionate and helpful, Ruth enjoys working with her clients and going above and beyond for them. She wants her clients to know she is always here for them and the milestones they experience along the way.


She takes the time to carefully listen to their needs and aspirations, such as building their investment portfolio, producing income for retirement, and leaving a legacy for their family. She enjoys the detective work of helping clients locate and consolidate their assets, and get a handle on every detail of their financial lives.


She likes to meet with her clients face to face whenever possible, and will take the extra time to go to their office or residence if it is more convenient for them. She likes to have them be an intricate part of their planning, and help them understand the investments she recommends and how they are designed to accomplish their goals and objectives.

Ruth has 30 years of financial industry experience. Before joining Raymond James in August 2019, Ruth served as Senior Vice President at RBC Wealth Management. Earlier in her career, she held the same position at Robert W. Baird & Company.


Ruth holds the Accredited Investment Fiduciary (AIF®) Designation which is a professional certification that demonstrates an advisor or other person serving as an investment fiduciary has met certain requirements to earn and maintain the credential.


The purpose of the AIF* Designation is to assure that those responsible for managing or advising on investor assets have a fundamental understanding of the principles of fiduciary duty, the standards of conduct for acting as a fiduciary, and a process for caring out fiduciary responsibility.


F1360 is accredited by the American National Standards Institute (ANSI) for the AIF® Designation, making the designation part of an elite group of accredited designations recognized by FINRA.


As a Chartered Federal Employee Benefit ConsultantSM, Ruth assists federal employees with the retirement financial literacy and education mandated by the Thrift Savings Plan Open Elections Act of 2004. She also has specialized experience as a Certified Divorce Financial Analyst® , enabling her to guide clients through the divorce process and envision the longterm financial impact of their proposed divorce settlements.


Ruth earned a Bachelor’s Degree in Business Marketing Management and a minor in Art from Concordia University in River Forest, Illinois, and an Associate’s Degree from Bethany Lutheran College in Mankato, Minnesota.


Ruth was born in Minneapolis, lived in Golden Valley, Minnesota, later moved to the now family farm in Lacrosse Wisconsin area, where she lived until she attended college. After graduating, she moved to Milwaukee.


Today, Ruth lives in Helenville, Wisconsin. In her free time, Ruth enjoys spending time with her family, reading, animals, and spending time outdoors. She is also involved in her church, helping the needy, and working with the Hispanic Foundation. In addition, she is a graduate of the FBI Citizens Academy and continues to serve the organization.