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b. Standard (01/31/2026)
The Mortgagee must ensure the Sale of a Beneficial Interest complies with the following requirements:
• Mortgages may be sold to and held by only an FHA-approved Mortgagee;
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I. DOING BUSINESS WITH FHA A. FHA Lenders and Mortgagees (09/20/2021)
11. Sale of a Beneficial Interest in a Group of Mortgages
• Mortgages may be serviced or sub-serviced by only the Mortgagee or another FHA- approved Mortgagee for servicing; and
• beneficial interest certificates do not provide the certificate holder any interest in individual Mortgages or rights under the related contracts of insurance.
The FHA Commissioner has no obligation under the contract of insurance to deal with any assignee or entity holding a partial interest.
A Mortgagee must receive FHA’s approval of the Declaration of Trust for the Sale of a Beneficial Interest before proceeding with the sale.
If the trustee or Mortgage Holder in the Declaration of Trust is in the process of obtaining FHA-approved Mortgagee status, the trustee or purchaser may accept a temporary assignment of the Mortgages that complies with Requirements for Assignment of Mortgages to an Entity Other Than an FHA-Approved Mortgagee.