§290.35. Sale of HUD-held mortgages securing unsubsidized projects.
24 C.F.R. § 290.35
HUD's policy for selling HUD-held mortgages securing unsubsidized projects is as follows:
Current mortgages— may be sold with or without FHA mortgage insurance.
Delinquent mortgages— may be sold without FHA mortgage insurance. However, delinquent mortgages will not be sold if:
HUD believes that foreclosure is unavoidable; and
The project securing the mortgage is occupied by very low-income tenants who are not receiving housing assistance and would be likely to pay rent in excess of 30 percent of their adjusted monthly income if HUD sold the mortgage.
Notes, amendments, and revision history
Authority
Authority: 12 U.S.C. 1701z-11, 1701z-12, 1713, 1715b, 1715z-1b, 1715z-11a; 42 U.S.C. 3535(d) and 3535(i).
Source
Source: 61 FR 11685, Mar. 21, 1996, unless otherwise noted.