§ 103.10. What lenders are eligible under the Program?
146 words·~1 min read·
/us/cfr/t25/s§ 103.10·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Except as specified in paragraph
(b)of this section, a lender is eligible under the Program, and may be considered for BIA approval, if the lender is:
(1)Regularly engaged in the business of making loans;
(2)Capable of evaluating and servicing loans in accordance with reasonable and prudent industry standards; and
(3)Otherwise reasonably acceptable to BIA.
(b)The following lenders are not qualified to issue loans under the Program:
(1)An agency or instrumentality of the Federal Government;
(2)A lender that borrows money from any Federal Government source, other than the Federal Reserve Bank System, for purposes of relending;
(3)A lender that does not include the interest on loans it makes in gross income, for purposes of chapter 1, title 26 of the United States Code; and
(4)A lender that does not keep any ownership interest in loans it originates.