source:
  type: regulation
  id: hud-4000-1-section-235-mortgages
  authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
  description: "HUD Handbook 4000.1 section \"Section 235 Mortgages\". Gap-fill (verbatim, title-diff). \n"
obligations:
- id: hud-4000-1-section-235-mortgages-0
  canonical_id: hud-4000-1-section-235-mortgages-0
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 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.
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-1
  canonical_id: hud-4000-1-section-235-mortgages-1
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-2
  canonical_id: hud-4000-1-section-235-mortgages-2
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-3
  canonical_id: hud-4000-1-section-235-mortgages-3
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-4
  canonical_id: hud-4000-1-section-235-mortgages-4
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-5
  canonical_id: hud-4000-1-section-235-mortgages-5
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-6
  canonical_id: hud-4000-1-section-235-mortgages-6
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-7
  canonical_id: hud-4000-1-section-235-mortgages-7
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-8
  canonical_id: hud-4000-1-section-235-mortgages-8
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-9
  canonical_id: hud-4000-1-section-235-mortgages-9
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-10
  canonical_id: hud-4000-1-section-235-mortgages-10
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
- id: hud-4000-1-section-235-mortgages-11
  canonical_id: hud-4000-1-section-235-mortgages-11
  section: HUD Handbook 4000.1 — Section 235 Mortgages
  description: '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)'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - handbook-4000-1
  - section-complete
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Section 235 Mortgages (03/31/2022)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages 3.
      Programs and Products - Section 235 Mortgages (03/31/2022)
    drafter_attestation: Verbatim paragraph from HUD 4000.1 section "Section 235 Mortgages", snapshot 8c03836f77f317e1;
      substring-verified. Title-diff gap-fill.
  judgment: false
