24 CFR 266.616 - Transfer of partial interest under participation agreement.
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The HFA may not assign the mortgage. However, a partial interest in an insured mortgage or pool of insured mortgages may be transferred under a participation agreement or arrangement (such as a declaration of trust or the issuance of pass-through certificates), without obtaining the approval of the Commissioner, if the following conditions are met:
(b) The participation agreement, declaration of trust or other instrument under which the partial interest is transferred shall provide that:
(2) The Commissioner shall have no obligation to recognize or deal with anyone other than the HFA with respect to the rights, benefits, and obligations of the mortgagee under the contract of insurance; and
Title 24 published on 2014-04-01
no entries appear in the Federal Register after this date.