§ 266.120. Actions for which sanctions may be imposed.
420 words·~2 min read·
/us/cfr/t24/s§ 266.120·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Results of monitoring or other reviews may serve as the basis for the Commissioner's imposing sanctions on the HFA. Violations for which sanctions may be imposed include, but are not limited to:
(a)Commission of fraud or making a material misrepresentation by the HFA with respect to any mortgage insured or to any other matter under this part.
(b)Assignment or transfer of interest in any insured mortgage not in accord with the requirements of this part.
(c)Engagement in business practices that do not conform to generally accepted practices of prudent lenders or that demonstrate irresponsibility.
(d)Actions or conduct for which sanctions may be imposed against the HFA by HUD's Mortgagee Review Board under 24 CFR 25.9, which pertains to "notice of administrative action".
(e)Failure to:
(1)Reveal in its application for participation in the program all the information required by this part;
(2)Notify HUD in a timely manner of any pending or actual changes that would adversely affect HFA operations or financial status;
(3)Comply with all eligibility requirements for participation in the program;
(4)Issue debentures in the event of an initial claim payment by HUD, or to reimburse HUD for payment of a claim;
(5)Maintain an issuer credit rating of "A" or better, or an equivalent designation, or overall rating of "A" on general obligation bonds (or if such rating is lost, comply with paragraph (e)(6) of this section);
(6)Establish and maintain a dedicated account, if required, or meet other financial obligations under this program;
(7)Perform underwriting, insurance of advances, cost certification, management, servicing or property disposition functions in a prudent and acceptable manner based on the standards incorporated by reference into the Risk-sharing Agreement;
(8)Submit financial and other reports required by this part;
(9)Comply with any regulatory requirement or with the Risk-Sharing Agreement;
(10)Maintain any other standards HUD may establish for participation in this program;
(11)Enforce the regulatory agreement provisions with respect to individual projects;
(12)Maintain a default ratio acceptable to HUD relative to the HFA's own portfolio and the defaults experienced under this part by other program participants;
(13)Consider adequately special risk circumstances without compensating for the higher risks of such transactions (e.g., high loan-to-value ratios in areas with high vacancy or default rates); or
(14)Remit mortgage insurance premiums on a timely basis or failure to refund or credit mortgagor's accounts with overpaid mortgage insurance premiums. \[59 FR 62524, Dec. 5, 1994, as amended at 85 FR 83441, Dec. 22, 2020\]
Connectionstraces to 1
Traces to 1 document
Citation graph
cites case law
§ 266.120
Actions for which sanctions may be imposed.
Cites 1Cited by 0 across 0 sources