Finance
A mortgage assumption in Iowa where the lender releases the original borrower from personal liability is called:
AAssignment
BNovation✓ Correct
CSubrogation
DSubordination
Explanation
Novation occurs when the lender replaces the original borrower with a new borrower, fully releasing the original borrower from personal liability on the loan. This requires the lender's approval and substitution of a new party to the mortgage obligation.
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