In General. For new loans originated by mortgage lenders and purchased by the Administration, the Administration may: Require loans to be serviced by a master servicer or servicers selected by the Administration, or serviced by the Administration; or Permit mortgage lenders, or a related entity acceptable to the Administration in its discretion, to be approved to service the mortgage loans the lender originates on terms set by the Administration. If the Administration has permitted mortgage lenders to service certain mortgage loans as described in §A(1)(b) of this regulation, the Administration may permit the servicer to retain from mortgage loan receipts a monthly servicing fee determined by the Administration from time to time. Upon notice to the servicers, the Administration may require that loans held by the servicers be transferred to the master servicer or servicers selected by the Administration or transferred to the Administration. The provisions of §A(1)—(3) of this regulation are subject to the requirements of issuers of investment certificates secured by the mortgage loans, where applicable. Servicing shall be performed in accordance with a mortgage agency agreement and servicing manual prepared by the Administration. To be approved initially by the Administration to service mortgage loans, a lender is required to: Enter into a mortgage agency agreement with the Administration, as amended from time to time, stating the general terms and conditions for servicing of mortgage loans for the Administration by the mortgage loan servicer; Be an FNMA approved mortgage loan servicer; In the estimation of the Administration, be reputable and financially sound; Submit all certifications, affidavits, financial information, and other information as required by the mortgage agency agreement; Agree to the establishment of separate insured trust or custodial accounts for the benefit of the Administration and its borrowers; Be subject to service of legal process in the State; Demonstrate delinquency rates that do not exceed rates acceptable to the Administration; Be a participating originating lender in the Program; and Not currently be suspended or debarred under COMAR 05.01.05. To remain approved by the Administration to service mortgage loans, a loan servicer is required to meet all the requirements of §C of this regulation, with the following exceptions and additional requirements: Update all certifications, affidavits, financial information, and other information as required by the mortgage agency agreement; Verify establishment of separate insured trust or custodial accounts for the benefit of the Administration and its borrowers; Be subject to service of legal process in the State; Maintain delinquency rates that do not exceed rates acceptable to the Administration, or institute a plan, as approved by the Administration, for reducing the delinquency rates for the Administration portfolio of loans to a level acceptable to the Administration; Maintain a servicing portfolio for the Administration that has at least the minimum number of loans determined by the Administration from time to time; and Satisfactorily perform its duties under its contractual obligations to the Administration. Transfer of Servicing. A servicing portfolio of Administration mortgage loans may not be transferred by the loan servicer without the prior written approval of the Administration. Transfer to a related entity requires prior written approval by the Administration in its discretion. Merger with or acquisition of the servicer also requires the prior written approval of the Administration in order to continue servicing. If a servicer fails to meet the requirement of §D of this regulation, or if the servicer wishes to transfer its mortgage loan portfolio voluntarily, the Administration may: Require the servicer to transfer Administration loans to one or more master servicers designated by the Administration or to the Administration; or Permit a servicer to transfer loans to another approved servicer within a period of time set by the Administration, after which the loans shall be transferred to one or more master servicers designated by the Administration or to the Administration. Other Servicing. The Administration may select one or more master loan servicers or subservicers from time to time on terms within its discretion to service all or a portion of the loans the Administration purchases or the loans that secure the MBS purchased by the Administration. The Administration may service all or a portion of the loans the Administration purchases or the loans that secure the MBS purchased by the Administration. Division of Credit Assurance. The Division of Credit Assurance of the Department shall carry out loan asset management for the Administration.