1. Guaranteed Loan Training Inputting Applications for Assumed Loans
To assist the field offices in properly tracking their workload counts, software changes were made in GLS in 2007 which require input of an application and loan guarantee request for a borrower assuming a new loan (even though no new funding is required). This helps insure that all loans are accounted for in the application reports and the workload counts which are reported to budget.
Updated June 2016

2. Assumption process
An Application & Approved Loan Guarantee Request (LGR) are required for the transferee before processing an assumption (even though no new funding is required). This helps insure that all loans are accounted for in the application reports and the workload counts which are reported to budget.
The field office should input this information, prior to sending the Form FSA-2246 (Notification of Transfer & Assumption) to the finance office for processing.
The Loan Amount input on the LGR should equal the amount of Principal being assumed. (For an active Line-of-Credit, the full amount of the LOC should be used, not the Unpaid Principal as of the Assumption Date.) This will become the Loan Amount of the new loan. (Interest may also be assumed but it will just show in the Unpaid Interest Amount on the new loan.)
If interest is being capitalized, Form FSA 2249, Request for Restructuring, will also need to be submitted by the field office and processed by the Finance Office.

3. Transferor’s loan - Before Assumption

4. Transferee’s Application Package

5. Transferee’s Loan Guarantee Request
Loan Amount should be the amount of Principal being assumed.
Approval Date must be prior or equal to the Date of the Assumption

6. Transferee’s Application Package List – After Loan Guaranteed Requests is entered and approved.
These Numbers are needed by the finance office to process the Assumption.

7. This form must be completed and faxed to the finance office for processing.
This must match the amount of the Loan Note Guarantee.

8. This is the input screen used by the finance office to process the Assumption.

9. This is the transferee’s new loan after the assumption is processed.
These fields match the Principal Amount Assumed.
This matches the Interest Amount Assumed.

10. This is the Transferor’s loan after the Assumption is processed.
Balances are set to $0.00 and loan is terminated.

11. Transferee’s Application – After Assumption
Status is changed to Obligated (even though no new funds are obligated).
Obligation Status has been changed to ‘Closed’, since the new loan has been closed.