Does the Garn-St. Germain Act require a mortgagee to release the original mortgagee from debt?

The Garn-St. Germain Act, which addresses due-on-sale clauses in residential mortgages, does not automatically require a mortgagee to release the original mortgagor from their debt when a property is sold or transferred. Instead, the act allows for specific circumstances under which a borrower can transfer their property without the lender exercising the due-on-sale clause, but this hinges on the lender's approval.

In situations where a new borrower is assuming the mortgage, the lender typically has the discretion to determine whether to release the original borrower from liability. If the lender does not approve the assumption, the original mortgagor remains responsible for the debt even after the property is transferred. Thus, the requirement for a mortgagee to release the original mortgagor is contingent upon the lender's approval rather than being an automatic requirement of the act. This is why the answer correctly reflects that the lender must approve the assumption first before any release can occur.