§ 291.605. Participating Servicers.
268 words·~1 min read·
/us/cfr/t24/s§ 291.605·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Participation. To participate in a Single Family Sale, a Participating Servicer must:
(1)Be an FHA-approved Mortgagee contributing eligible Single Family Loans and assigning loans to HUD; and
(2)Execute a PSA and agree to execute an ISA, as needed.
(b)Sale. For each Single Family Sale, the Participating Servicer must:
(1)Identify mortgages that meet the eligibility criteria in accordance with terms of the PSA;
(2)Conduct all sale activities in accordance with the PSA and ISA;
(3)Comply with any Single Family Sale and Loan Sale Notification requirements as prescribed by the Secretary through notice; and
(4)Comply with the terms of the Sale Notice.
(5)Ensure the Loan Sale Notification is provided to each borrower and any other parties as required by the Secretary and the Loan Sale Notification complies with all applicable law. Loan Sale notification requirements will be announced to the Participating Servicer through notice.
(c)Claim payment requirements. The Participating Servicer must comply with the claim payment process and requirements for Single Family Sales in accordance with the PSA and processes outlined in §§ 203.413 and 206.130, as applicable.
(d)Interim servicing. During the Interim Servicing Period, the Participating Servicer must service the purchased Single Family Loans on behalf of the Purchaser in accordance with the ISA.
(e)Transfer documents and servicing. The Participating Servicer must conduct the servicing transfer of the Single Family Loans in accordance with the requirements of the PSA and ISA and must service the purchased Single Family Loans in accordance with all applicable state and Federal law requirements, including applicable Consumer Finance Protection Bureau
(CFPB)requirements.