24 CFR § 320.31 - Default.

---
identifier: "/us/cfr/t24/s320.31"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "24 CFR § 320.31 - Default."
title_number: 24
title_name: "Housing and Urban Development"
section_number: "320.31"
section_name: "Default."
chapter_name: "GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT"
part_number: "320"
part_name: "GUARANTY OF MORTGAGE-BACKED SECURITIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1721(g) and 1723a(a); and 42 U.S.C. 3535(d)."
regulatory_source: "60 FR 42015, Aug. 14, 1995, unless otherwise noted."
cfr_part: "320"
---


# 320.31 Default.

Upon default of the issuer, the Association has the right, pursuant to section 306(g) of the National Housing Act (12 U.S.C. 1721(g)), to take title to the mortgages and other assets that are subject to the trust arrangements, and to proceed against other assets of the issuer to the extent necessary to satisfy its own claims and the rights of the holders of securities then outstanding. Such action by the Association shall be taken subject to an accounting to the issuer.