3.1.2 Single Asset Mortgagor Entity

A. The mortgaged property must be the only asset of the Borrower entity, and there may not be more than one Borrower entity. Natural persons, foreign entities, or Tenants-in-Common ownership structures (including entities such as Maryland Statutory Trusts and Delaware Statutory Trusts) are not permitted as mortgagor entities, though they may hold “upper-tier” interests (i.e., they may have an ownership stake, such as a partnership interest, in the Single Asset Mortgagor Entity). Additional information on eligible foreign nationals and entities may be found in Chapter 8. Waiver authority is reserved for the Director, Office of Multifamily Production headquarters but requests for waivers are discouraged as they are unlikely to be approved. In the unusual circumstance that a waiver request is submitted for review, approval must be obtained prior to a Multifamily Regional Center or Satellite Office accepting an application for mortgage insurance that does not conform to these prohibitions.