source:
  type: guide
  id: hud-4000-1-iii-s-demand-assignment
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — s. Demand
    Assignment (04/29/2024)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part III — s. Demand
    Assignment (04/29/2024).
  coverage_tier: operative
obligations:
- id: hud-4000-1-iii-s-demand-assignment-full
  canonical_id: hud-4000-1-iii-s-demand-assignment-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part III — s. Demand
    Assignment (04/29/2024)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part III — s. Demand
      Assignment (04/29/2024)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 's. Demand Assignment (04/29/2024) i. Definition Demand Assignment
      refers to an assignment option where the Mortgagee chooses to assign a HECM,
      or a portfolio of HECMs, because the Mortgagee is unable or unwilling to reimburse
      HUD for payments to the Borrower made by HUD. ii. Standard For cases involving
      a Mortgagee that fails to make payments to the Borrower, HUD may demand assignment.
      If the Borrower or Mortgagee notifies HUD that a payment was not received and
      HUD determines that the Mortgagee cannot or will not make the required payment,
      HUD will make the payment and proceed with communicating to the Mortgagee that
      a demand assignment could occur. After HUD makes the necessary payment, HUD
      may issue a written Demand Letter to the Mortgagee, requiring the Mortgagee
      to: • resume making payments under the HECM; and • reimburse HUD for the amount
      of the total payment, with interest from the date of the payment to the date
      reimbursement is received by HUD. III. SERVICING AND LOSS MITIGATION B. Title
      II Insured Housing Programs Reverse Mortgages 1. Servicing of FHA-Insured HECMs
      Handbook 4000.1 1481 Last Revised: 11/26/2025 HUD will specify an amount, date
      of payment, and a per diem interest rate, set in conformance with the Treasury
      Financial Manual. If the Mortgagee is unable or unwilling to reimburse HUD or
      resume making payments under the HECM, the Mortgagee may: • submit an assignment
      request, in accordance with the Optional Assignment requirements, to HUD within
      30 Days; • limit the Borrower’s liability to payments actually made to or on
      behalf of the Borrower and the MIP remitted on the HECM; and • exclude any interest
      accrued on the HECM from the Borrower’s liability. If the Mortgagee fails to
      reimburse HUD or assign the HECM within 30 Days of the Demand Letter, the contract
      of HECM insurance will be terminated. If the contract of insurance is terminated,
      all payments made by HUD will be secured by the second HECM lien. iii. Required
      Documentation The Mortgagee must follow the documentation instructions for Optional
      Assignments.'
  judgment: false
