Title 24
SECTION 206.135
206.135 Application for insurance benefits and fiscal data.
§ 206.135 Application for insurance benefits and fiscal data.(a) On the date the application for assignment is filed, the mortgagee shall submit to the Commissioner:
(1) Credit and security instrument. The original credit and security instruments assigned without recourse or warranty, except that no act or omission of the mortgagee shall have impaired the validity and priority of the mortgage.
(2) Proposed assignment instrument. A copy of the proposed assignment of mortgage.
(3) Hazard and flood insurance. All hazard and flood insurance (if applicable) policies held in connection with the mortgaged property, together with a copy of the mortgagee's notification to the carrier authorizing the amendment of the loss payable clause substituting the Commissioner as the mortgagee.
(4) Rights and interests. An assignment of all rights and interests arising under the mortgage, and all claims of the mortgagee against the borrower or others arising out of the mortgage transaction.
(5) Property. All property of the borrower held by the mortgagee or to which it is entitled (other than the cash items which are to be retained by the mortgagee).
(6) Records and accounts. All records, ledger cards, documents, books, papers and accounts relating to the mortgage transaction.
(7) Additional information. Any additional information or data which the Commissioner may require.
(8) Title evidence. All title evidence held by the mortgagee. It need not be extended to include the recordation of the assignment. The title insurance policy shall be endorsed from the mortgage insurance company up to the point of assignment. At the point of assignment, the Commissioner shall be named insured under such policy.
(b) All documents required in paragraph (a) of this section must be submitted and approved before a claim for assignment may be submitted.
(c) Recorded assignment instrument. The original of the recorded assignment of mortgage shall be forwarded to the Commissioner as soon as received by the mortgagee, but in no case shall it be longer than 12 months after recordation. If the original of the assignment is not available, a copy shall be furnished and the original forwarded as soon as possible.