Lender's Claim on Government-Insured Mobile Home Loan in Default

The agency requested advice on the amount of reimbursement due a lender incident to a claim on a Government-insured mobile home loan which was defaulted. The lender's claim may properly be certified for payment based on the "bulk sale" price of the mobile home, notwithstanding the fact that the regulation calls for the use of the higher of the sale price or the appraised value. However, the regulations, which require sale of the mobile home prior to filing of the claim, should be amended.