19.2.4.1 HUD Prior Written Approval Needed

A. When a Lender wants to assign the FHA-insured Loan to another FHA-approved Lender during construction (after Initial Closing and prior to Final Closing) the Lender must request prior approval from HUD. Handbook 4435.1 Project Construction and Servicing Before Final Closing, par. 1-33, lists HUD’s requirements for assignment of an insured mortgage loan prior to Final Endorsement, including that circumstances must warrant the assignment, and that the assignee must be an approved Lender.