25 U.S.C. § 1485 — Sale or assignment of loans and underlying security

(a) In general. All or part of a loan guaranteed or insured under this subchapter, including its security, may be transferred by the lender by sale or assignment to any person and may be transferred again by the recipient. (b) Transfers. A transfer must follow regulations issued under subsection (h), and the recipient must notify the Secretary^*. (c) Full faith and credit. (1) The United States promises to pay all loan guarantees and insurance made under this subchapter after December 13, 2002. (2) Unless regulations in effect when the loan was made provide otherwise, the guarantee or insurance cannot be challenged. (d) Damages. Despite 31 U.S.C. § 3302, the Secretary may recover from a lender damages caused by the lender’s material breach of its obligations concerning the guarantee or insurance. (e) Fees. (1) The Secretary may collect a fee for a loan, or a guaranteed or insured part, transferred under this section. (2) A fiscal transfer agent designated under subsection (f) may be paid from these fees and from interest earned on money or fees it controls before it must transfer them to the Secretary, transferees, or other holders under its contract. (f) Central registration. When final regulations under subsection (h) are issued, the Secretary must provide a central registry of all transferred guaranteed or insured loans and enter into one or more contracts with a fiscal transfer agent to act for the Secretary and perform the registry and fiscal-transfer functions. (g) Pooling. (1) This subchapter does not prohibit pooling whole loans or interests in transferred loans. (2) In regulations under subsection (i), the Secretary may include rules for orderly and efficient pooling that the Secretary considers necessary. (h) Regulations. Within 180 days after December 13, 2002, the Secretary must develop procedures and issue regulations needed to facilitate, administer, and promote transfers of loans and of guaranteed or insured portions of loans.