19.2.4.2 Prior Document Review by HUD Counsel.

A. Lender or Lender’s Counsel must submit complete draft documents to the RC Director for preliminary HUD review. The RC Director and OGC will review the documents submitted with a Lender’s request for assignment, including the following:

1. Checklist and written narrative, drafted by Lender or Lender’s Counsel, including the reason(s) for the assignment, and all documents being submitted to HUD for preliminary approval;

2. Note endorsement to assignee;

3. Assignment and Assumption of the Security Instrument to and by assignee, which must include the following provisions:

   • Assumption of Lender’s obligations under the Contract of Mortgage Insurance;

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• Assumption of the terms and conditions pertaining to all Project Loan documents, funds and escrow deposits required in connection therewith;

• Assignee’s agreement to be bound by the provisions of the Lender’s Certificate (form HUD92434M, at par. 3) that relate to the servicing of the Loan; and

  • Assignee’s agreement to be bound by the provisions of the Agreement and Certification (form HUD-93305M) or Assignee’s execution and delivery of such form to HUD;

4. UCC-3, Amendment of UCC-1 Financing Statement, to evidence the change in secured party thereunder;

5. Assignment of Building Loan Agreement (form HUD-92441M) with Borrower’s written consent;

6. Assignment of the following types of assurance of completion, if applicable, with the written consent of Borrower and Contractor, as well as indemnitor or surety, including assignment of cash or letter of credit, and/or escrow agreements, if applicable:

Assurance of completion of construction; and

Assurance of installation of offsite facilities;

7. Assignment of all escrow agreements and related transfers of funds held by the Lender for the benefit of the Project and/or Borrower;

8. Opinion of assignee’s counsel as to the validity of the assignment transaction and of the documents executed and delivered in connection therewith;

9. Executed Mortgage Record Change (form HUD-92080);

10. Endorsement to ALTA Loan Policy reflecting the Lender’s assignment of the mortgage Loan and of any other recorded documents; and

11. All other documents required (a) by state or local law; (b) by the HUD Closing Attorney (e.g . , disbursement agreement, special condition documents, as applicable); and (c) the RC Director.