3.6.10 Multiple Lenders

A. A new Section 241(a) insured loan may be originated by the first FHA lienholder or a new Lender. The Lender processing the Section 241(a) FHA insured loan shall create one RfR Account incorporating both escrow account requirements into a single reserve account. If the holder of the first lien is not the same entity as the proposed secondary debt Lender (See Section 3.6.1.A.4), the two Lenders shall designate one as the depository holder of the CNA e-tool and the RfR accounts. This decision shall be determined before the Section 241(a) application is submitted to HUD. The designated Lender shall maintain the updated CNA e-tool report and RfR Account incorporating both loans. The processing 241(a) Lender must agree and certify to obtain an updated CNA e-tool report, funding for a new RfR Account, and other pertinent information required by the Section 241(a) insured loan. If different from the first lien holder, the Section 241(a) processing Lender shall submit the updated information to the first lien holder for review and approval based on HUD’s program requirements. The designated Lender, if different than the Section 241(a) Lender, shall submit a written acceptance of the updated CNA report and RfR Account at the time of the insured Section 241(a) application submission. The designated Lender shall have the authority over all the RfR accounts and reimbursements and future requirements once Initial Endorsement has occurred and all other terms and conditions of the FHA Firm Commitment have been satisfied.