§ 1005.209. Direct Guarantee Lender application process.
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/us/cfr/t24/s§ 1005.209·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)For purposes of this section, Lender Applicants shall include Non-Direct Guarantee Lenders, Lender Applicants and financial institutions approved by HUD to only service under § 1005.705. Lender Applicants may apply to HUD for approval to participate in the Section 184 Program as a Direct Guarantee Lender. Lenders Applicants must submit a completed application package in accordance with Section 184 Program Guidance.
(b)To be approved as a Direct Guarantee Lender, a Lender Applicant must establish in its application that it meets the following qualifications:
(1)Eligibility under § 1005.203 or HUD approval under § 1005.205, as evidenced by approval documents and most recent recertification documents.
(2)Has a principal officer with a minimum of five years' experience in the origination of Loans guaranteed or insured by an agency of the Federal Government. HUD may approve a Lender applicant with less than five years of experience, if a principal officer has had a minimum of five years of managerial experience in the origination of Loans guaranteed or insured by an agency of the Federal Government.
(3)Has on its permanent staff an underwriter(s) that meets the following criteria:
(i)Two years' experience underwriting Loans guaranteed or insured by an agency of the Federal Government;
(ii)Is an exclusive employee of the Lender Applicant;
(iii)Authorized by the Lender Applicant to obligate the Lender Applicant on matters involving the origination of Loans;
(iv)Is registered with HUD as an underwriter and continues to maintain such registration; and
(v)Other qualifications as may be prescribed by Section 184 Program Guidance.
(c)The Lender Applicant must submit a list of States or geographic regions in which it is licensed to operate, evidenced by submitting the active approvals for each State or region, and declare its interest in participating in the Section 184 Program.
(d)The Lender Applicant must submit the quality control plan as required by its approving agency, modified for the Section 184 Program.
(e)If a Lender Applicant wants to service Section 184 Guaranteed Loans as Direct Guarantee Lender, they must meet qualifications and apply in accordance with § 1005.703.