Sale of HUD-Held Multifamily Mortgages; Final Rule DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Resumo

This rule sets forth the basic policies and procedures that govern the disposition of HUD-held multifamily project mortgages. 1 In general, the Department will sell both current mortgages and delinquent mortgages. However, the Department will not sell delinquent mortgages if foreclosure is unavoidable and the project securing the mortgage is occupied by 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. In addition, mortgages on subsidized properties will only be sold with Federal Housing Administration (FHA) mortgage insurance or equivalent tenant protections; mortgages for unsubsidized projects may be sold without FHA insurance.