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Assignment of mortgage. 


Directive Number: 203.350 


 
(a) Assignment of modified mortgages pursuant to section 230,
National Housing Act. HUD may accept an assignment of any mortgage
covering a one-to-four family residence if the following requirements are
met:
 
(1) The mortgage was in default;
 
(2) The mortgagee has modified the mortgage under Sec. 203.616
    to cure the default and to provide for mortgage payments
    within the reasonable ability of the mortgagor to pay, at an
    interest rate not exceeding current market interest rates; and
 
(3) Such other conditions that HUD may prescribe, which may include
    the requirement that the mortgagee continue to be responsible for
    servicing the mortgage.
 
(b) Assignments pursuant to section 248, National Housing Act.
Notwithstanding the provisions of paragraph (a), the Commissioner shall,
upon application by the mortgagee, approve the assignment to the
Commissioner of any mortgage insured pursuant to section 248 of the
National Housing Act (see Sec. 203.43h) where the mortgagor has
been in default for more than 90 days. The mortgagee may not request the
Commissioner to accept an assignment until the mortgagee has submitted
documents to the Commissioner showing that the requirements of
Sec. 203.604 have been met. HUD shall then notify the mortgagee
of its approval of the mortgagee's actions under Sec. 203.604
and that the mortgagee may assign the mortgage to the Secretary, or HUD
will specify what further action the mortgagee must take to meet the
requirements of Sec. 203.604.
 
(c) Assignment of mortgages insured pursuant to section 247,
National Housing Act. Notwithstanding the provisions of paragraph (a)
of this section, the Secretary will, upon application by the mortgagee,
agree to accept an assignment of any mortgage insured pursuant to section
247 of the National Housing Act (Sec. 203.43i of this part)
where the mortgagor has been in default for more than 180 days, provided
that the requirements of Sec. 203.665 are satisfied.
 
(d) Assignment of mortgages authorized by section 203(q), National
Housing Act. Notwithstanding the provisions of paragraph (a) of this
section, the Secretary will, upon application by the mortgagee, agree to
accept assignment of any mortgage authorized by section 203(q) of the
National Housing Act (Sec. 203.43j of this part) if
 
(1) The mortgagor has been in default for more than 90 days for
    failure to make a monthly payment,
 
(2) The requirements of Sec. 203.666 are satisfied, and
 
(3) The date of default occurs before the mortgagor and the lessor
execute a lease renewal or a new lease with a term of not less than five
years beyond the maturity date of the mortgage, or with a term
established by an arbitration award.
 
If the default is non-monetary, the date of default occurs prior
to an action described in paragraph (d)(3) of this section, the
requirements of Sec. 203.666 are satisfied, and the mortgagor
has been in default for more than 30 days, the Secretary may in his or
her discretion, upon application by the mortgagee, agree to accept an
assignment of the mortgage. If the leasehold estate has terminated before
the mortgage has been assigned, or title to the property conveyed, to the
Secretary, and the mortgage is in default for any reason for more than 30
days, the Secretary will, upon application by the mortgagee, agree to
accept an assignment of the mortgage.
 
(e) Filing assignment for record. Within 30 days of the
Secretary's written agreement to accept assignment of a defaulted
mortgage, or within such additional time as the Secretary authorizes in
writing, the mortgagee must file the assignment for record.
 
(Information collection requirements in paragraph (b) were
approved by the Office of Management and Budget under control number
2502-0169)
 
[51 FR 21872, June 16, 1986, as amended at 52 FR 48202, Dec. 21,
1987; 53 FR 9869, Mar. 28, 1988; 53 FR 13404, Apr. 25, 1988; 55 FR 282,
Jan. 4, 1980; 61 FR 35018, July 3, 1996]



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