§ 1005.527. Post-endorsement review.
192 words·~1 min read·
/us/cfr/t24/s§ 1005.527·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)HUD may review an endorsement case binder at any time, including but not limited to a quality control review of all documents in § 1005.503.
(b)Within three business days of a request by HUD, the Direct Guarantee Lender must make available for review, or forward to HUD, copies of the identified endorsement case binder(s).
(c)A Direct Guarantee Lender's failure to provide HUD access to any files may be grounds for sanctions in accordance with §§ 1005.905 and 1005.907.
(d)Based on HUD's review under paragraph
(a)of this section, if HUD determines that:
(1)The Loan does not satisfy the requirements of subpart F of this part;
(2)The Direct Guarantee Lender or Sponsored Entity committed fraud or a material misrepresentation; or
(3)The Direct Guarantee Lender or Sponsored Entity had known or should have known of fraud or a material misrepresentation in violation of this part, such that the Loan should not have been approved by the Direct Guarantee Lender;
(e)HUD may request indemnification from the originating Direct Guarantee Lender and impose sanctions on the Direct Guarantee Lender and Sponsored Entity pursuant to §§ 1005.905 and 1005.907.