24 CFR 206.101 - Sale, assignment and pledge of insured mortgages.

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§ 206.101 Sale, assignment and pledge of insured mortgages.

(a)Sale of interests in insured mortgages. No mortgagee may sell or otherwise dispose of any mortgage insured under this part, or group of mortgages insured under this part, or any partial interest in such mortgage or mortgages by means of any agreement, arrangement or device except pursuant to this subpart.

(b)Sale of insured mortgage to approved mortgagee. A mortgage insured under this part may be sold to another approved mortgagee. The seller shall notify the Commissioner of the sale within 15 calendar days, on a form prescribed by the Commissioner and acknowledged by the buyer.

(c)Effect of sale of insured mortgage. When a mortgage insured under this part is sold to another approved mortgagee, the buyer shall thereupon succeed to all the rights and become bound by all the obligations of the seller under the contract of insurance and the seller shall be released from its obligations under the contract, provided that the seller shall not be relieved of its obligation to pay mortgage insurance premiums until the notice required by § 206.101(b) is received by the Commissioner.

(d)Assignments, pledges and transfers by approved mortgagee.

(1) An assignment, pledge, or transfer of a mortgage or group of mortgages insured under this part, not constituting a final sale, may be made by an approved mortgagee to another approved mortgagee provided the following requirements are met:

(i) The assignor, pledgor or transferor shall remain the mortgagee of record.

(ii) The Commissioner shall have no obligation to recognize or deal with any party other than the mortgagee of record with respect to the rights, benefits and obligations of the mortgagee under the contract of insurance.

(2) An assignment or transfer of an insured mortgage or group of insured mortgages may be made by an approved mortgagee to other than an approved mortgagee provided the requirements under paragraphs (d)(1)(i) and (d)(1)(ii) of this section are met and the following additional requirements are met:

(i) The assignee or transferee shall be a corporation, trust or organization (including but not limited to any pension trust or profit-sharing plan) which certifies to the approved mortgagee that:

(A) It has assets of $100,000 or more; and

(B) It has lawful authority to hold an insured mortgage or group of insured mortgages.

(ii) The assignment or transfer shall be made pursuant to an agreement under which the transferor or assignor is obligated to take one of the following alternate courses of action within 1 year from the date of the assignment or within such additional period of time as may be approved by the Commissioner:

(A) The transferor or assignor shall repurchase and accept a reassignment of such mortgage or group of mortgages.

(B) The transferor or assignor shall obtain a sale and transfer of such mortgage or group of mortgages to an approved mortgagee.

(3) Notice to or approval of the Commissioner is not required in connection with assignments, pledges or transfers pursuant to this section.

(e)Declaration of trust. A sale of a beneficial interest in a group of mortgages insured under this part, where the interest to be acquired is related to all of the mortgages as an entirety, rather than an interest in a specific mortgage, shall be made only pursuant to a declaration of trust, which has been approved by the Commissioner prior to any such sale.

(f)Transfers of partial interests. A partial interest in a mortgage insured under this part may be transferred under a participation agreement without obtaining the approval of the Commissioner, if the following conditions are met:

(1)Principal mortgagee. The insured mortgage shall be held by an approved mortgagee which, for the purposes of this section, shall be referred to as the principal mortgagee.

(2)Interest of principal mortgagee. The principal mortgagee shall retain and hold for its own account a financial interest in the insured mortgage.

(3)Qualification for holding partial interest. A partial interest in an insured mortgage shall be issued to and held only by:

(i) A mortgagee approved by the Commissioner; or

(ii) A corporation, trust or organization (including, but not limited to any pension fund, pension trust, or profit-sharing plan) which certifies to the principal mortgagee that:

(A) It has assets of $100,000 or more; and

(B) It has lawful authority to acquire a partial interest in an insured mortgage.

(4)Participation agreement provisions. The participation agreement shall include provisions that:

(i) The principal mortgagee shall retain title to the mortgage and remain the mortgagee of record under the contract of mortgage insurance.

(ii) The Commissioner shall have no obligation to recognize or deal with anyone other than the principal mortgagee with respect to the rights, benefits and obligations of the mortgagee under the contract of insurance.

(iii) The mortgage and loan documents shall remain in the custody of the principal mortgagee.

(iv) The responsibility for servicing the insured mortgages shall remain with the principal mortgagee.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


United States Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 1715b - Rules and regulations

§ 1715z - Homeownership or membership in cooperative association for lower income families

§ 1715z-1 - Rental and cooperative housing for lower income families

§ 1715z-1a - Assistance for troubled multifamily housing projects

12 U.S. Code § 1715z–1b - Tenant participation in multifamily housing projects

12 U.S. Code § 1715z–1c - Regulation of rents in insured projects

12 U.S. Code § 1715z–2 - Repealed. Pub. L. 110–289, div. B, title I, § 2120(a)(6), July 30, 2008, 122 Stat. 2835

12 U.S. Code § 1715z–3 - Special Risk Insurance Fund

12 U.S. Code § 1715z–4 - Modifications in terms of mortgages covering multifamily projects; requests for extensions to cure defaults or for modification of mortgage terms; regulations

12 U.S. Code § 1715z–4a - Double damages remedy for unauthorized use of multifamily housing project assets and income

12 U.S. Code § 1715z–5 - Purchase of fee simple title from lessors

12 U.S. Code § 1715z–6 - Supplemental loans for multifamily projects

12 U.S. Code § 1715z–7 - Mortgage insurance for hospitals

12 U.S. Code § 1715z–8 - Mortgage assistance payments for middle-income families

12 U.S. Code § 1715z–9 - Co-insurance of eligible mortgage, advance, or loan

12 U.S. Code § 1715z–10 - Repealed. Pub. L. 110–289, div. B, title I, § 2120(a)(7), July 30, 2008, 122 Stat. 2835

12 U.S. Code § 1715z–11 - Sale to cooperatives of multifamily housing projects acquired by Secretary; acceptance of purchase money mortgage for sale or insurance of mortgage;...amount of mortgage; expenditures for repairs, etc., prior to sale

12 U.S. Code § 1715z–11a - Disposition of HUD-owned properties

12 U.S. Code § 1715z–12 - Single-family mortgage insurance on Hawaiian home lands

12 U.S. Code § 1715z–13 - Single family mortgage insurance on Indian reservations

12 U.S. Code § 1715z–13a - Loan guarantees for Indian housing

12 U.S. Code § 1715z–13b - Loan guarantees for Native Hawaiian housing

12 U.S. Code § 1715z–14 - Risk-sharing demonstration

12 U.S. Code § 1715z–15 - Limitation on prepayment of mortgages on multifamily rental housing

12 U.S. Code § 1715z–16 - Adjustable rate single family mortgages

12 U.S. Code § 1715z–17 - Shared appreciation mortgages for single family housing

12 U.S. Code § 1715z–18 - Shared appreciation mortgages for multifamily housing

12 U.S. Code § 1715z–19 - Equity skimming penalty

12 U.S. Code § 1715z–20 - Insurance of home equity conversion mortgages for elderly homeowners

12 U.S. Code § 1715z–21 - Delegation of insuring authority to direct endorsement mortgagees

§ 1715b-20

12 U.S. Code § 1715z–22 - Multifamily mortgage credit programs

12 U.S. Code § 1715z–22a - Definitions

12 U.S. Code § 1715z–23 - HOPE for Homeowners Program

12 U.S. Code § 1715z–24 - Pilot program for automated process for borrowers without sufficient credit history

12 U.S. Code § 1715z–25 - Mortgage modification data collecting and reporting

§ 1716 - Declaration of purposes of subchapter

12 U.S. Code §§ 1716–1, 1716a - Repealed. Aug. 2, 1954, ch. 649, title II, § 206, 68 Stat. 622

§ 1716b - Partition of Federal National Mortgage Association into Federal National Mortgage Association and Government National Mortgage Association; assets and liabilities; operations

§ 1717 - Federal National Mortgage Association and Government National Mortgage Association

§ 1717a - Prohibition against sale of obligations by Federal departments and agencies after June 30, 1966, without compliance with requirements of section 1717(c) of...title or without approval by Secretary of the Treasury; exemption

§ 1718 - Capitalization of Federal National Mortgage Association

§ 1719 - Secondary market operations

§ 1720 - Repealed. Pub. L. 98–181, title I [title IV, § 483(a)], Nov. 30, 1983, 97 Stat. 1240

U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE

Title 24 published on 09-Jun-2018 03:51

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 24 CFR Part 206 after this date.

  • 2017-01-19; vol. 82 # 12 - Thursday, January 19, 2017
    1. 82 FR 7094 - Federal Housing Administration: Strengthening the Home Equity Conversion Mortgage Program
      GPO FDSys XML | Text
      DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, HUD, Office of the Assistant Secretary for Housing—Federal Housing Commissioner
      Final rule.
      Effective Date: September 19, 2017.
      24 CFR Parts 30 and 206
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