llc triggers due on sale clause? maybe not

[Carol Burns]

It is my understanding that most mortgage companies follow fannie mae guidelines.  So according to this, transfer to an LLC should be allowed?  Anyone have experience with this?  Sorry about the bold, didn't know how to take it off.   D1-4.1-02: Allowable Exemptions Due to the Type of Transfer (09/09/2020)

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This topic contains information on allowable exemptions due to the type of transfer.

Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:

a limited liability company (LLC), provided that

• the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and
• the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).