24 CFR § 206.130 - Amount of payment—HECM Single Family Sale assignments.

---
identifier: "/us/cfr/t24/s206.130"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 206.130 - Amount of payment—HECM Single Family Sale assignments."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "206.130"
section_name: "Amount of payment—HECM Single Family Sale assignments."
chapter_name: "OFFICE OF ASSISTANT SECRETARY FOR HOUSING—FEDERAL HOUSING COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
subchapter_number: "B"
subchapter_name: "MORTGAGE AND LOAN INSURANCE PROGRAMS UNDER NATIONAL HOUSING ACT AND OTHER AUTHORITIES"
part_number: "206"
part_name: "HOME EQUITY CONVERSION MORTGAGE INSURANCE"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1715b, 1715z-20; 42 U.S.C. 3535(d)"
regulatory_source: "82 FR 7117, Jan. 19, 2017, unless otherwise noted."
cfr_part: "206"
---


# 206.130 Amount of payment—HECM Single Family Sale assignments.

(a) *Time of payment.* Upon an assignment of a mortgage *insured under this part that is acceptable to the Commissioner, made pursuant to a HECM Single Family Sale and* in accordance with § 291.609 or § 291.619 of this chapter, the Commissioner shall pay to the mortgagee the unpaid principal balance of the loan at the time of assignment and an amount calculated in accordance with the Participating Servicer Agreement (PSA), as defined in § 291.601 of this chapter.

(b) *Acceptability criteria.* For assignment, the mortgagee must determine and certify the mortgage satisfies the Commissioner's acceptability criteria for the Single Family Sale.

(c) *Reduction in claim.* The mortgagee's claim for insurance will be reduced for failure to take the required actions within the specified schedule of dates for the Single Family Sale, as specified in the PSA.

(d) *Curtailment of debenture interest.* HUD will curtail debenture interest at the thirtieth (30th) day following the earliest anticipated claim submission date, as identified on the schedule of dates in the PSA, if:

(1) The mortgagee's claim for insurance is not submitted to HUD; or

(2) The claim for insurance is in a suspended status.

(e) *Debenture Interest.* For purposes of this section, *Debenture Interest* means interest at the debenture rate as computed by HUD in accordance with its rules and requirements for such calculations, on the unpaid principal balance as of the claim payment date, *plus* the approved reimbursable expenses identified in the PSA, *minus* any amount of such interest or expenses that would have been curtailed or for which the Participating Servicer would have been denied reimbursement pursuant to HUD's requirements for servicing due and payable notes and processing claims, including § 206.129(d)(3)(x), had the Participating Servicer foreclosed or the borrower sold the property in connection with an insurance claim.

(f) *Rejection of the claim.* HUD may reject the mortgagee's claim for insurance and exclude the related mortgage from settlement if, within the thirty (30)-day period prior to the claim's submission cut-off date, as identified on the schedule of dates in the PSA:

(1) An insurance claim is not submitted; or

(2) Any suspended insurance claim is not yet resolved.

[89 FR 99716, Dec. 11, 2024]