FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > A. TITLE II INSURED HOUSING PROGRAMS FORWARD MORTGAGES > 3. Programs and Products — j. Section 235 Mortgages
HUD Handbook 4000.1 section "Section 235 Mortgages". Gap-fill (verbatim, title-diff).
Verbatim regulatory text
Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > A. TITLE II INSURED HOUSING PROGRAMS FORWARD MORTGAGES > 3. Programs and Products — j. Section 235 Mortgages — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
HUD Handbook 4000.1 — Section 235 Mortgages
j. Section 235 Mortgages (03/31/2022) Effective May 4, 2015, HUD removed the regulations for its Section 235 Program, which authorized HUD to provide mortgage subsidy payments to Mortgagees to assist lower- income families who were unable to meet the credit requirements generally applicable to FHA mortgage insurance programs. Authority to insure new Mortgages under Section 235 expired October 1, 1989. To the extent that any Section 235 mortgages remain in existence, or second mortgages for the recapture of subsidy payment pursuant to HUD’s regulations governing the Section 235 Program, the removal of these regulations does not affect the requirements for transactions entered into when Section 235 Program regulations were in effect. A Borrower with an existing Section 235 Mortgage may still refinance the Mortgage. Section 235 Mortgages have additional servicing requirements due to the Assistance Payment Contract. The Mortgagee must continue servicing Section 235 Mortgages in accordance with published guidance, preserved here verbatim. Mortgagees should direct questions regarding Section 235 Mortgage servicing to the NSC. i. Section 235 Mortgages Formerly HUD Handbook 4330.1, REV-5, Chapter 10 10-1 GENERAL (24 CFR 235). Under the Section 235 program, HUD assists mortgagors in making their monthly mortgage payments by paying directly to the mortgagee a portion of the mortgagor’s monthly payment as long as the mortgagor remains eligible for subsidy under this program. Servicing of Section 235 mortgages is generally the same as that described in the previous chapters of this handbook for mortgages insured under other HUD programs, except this program has added requirements due to the assistance payments contract (Subpart C of 24 CFR 235). A. Mortgages Subject To Recapture (24 CFR, Part 235, Subpart C). Pursuant to a firm commitment issued on or after May 27, 1981, all or part of the assistance payments is subject to recapture under certain circumstances. (Recaptures and mortgagees’ responsibilities with respect to recaptures are discussed in detail in Chapter 11). B. Reactivation Of Section 235. The Appropriations Act of 1984 reactivated the Section 235 program in accordance with Section 226 of the Housing and Urban Rural Recovery Act (HURRA) of 1983. The provisions of the reactivated program (which is known as Section 235 Revised/Recapture/10), are discussed in Paragraph 10-36. 10-2 CONTRACT FOR MONTHLY ASSISTANCE PAYMENTS (24 CFR 235). The terms and conditions of the assistance payment contract are contained in Subpart C of Part 235 of the HUD regulations. The issuance of the Mortgage Insurance Certificate (MIC), Form HUD-59100, to the HUD-approved mortgagee incorporates these provisions by reference to the contract between HUD and the mortgagee.
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
HUD Handbook 4000.1 — Section 235 Mortgages
III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3. Programs and Products - Section 235 Mortgages (03/31/2022)
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