Code of Federal Regulations Title 7. Agriculture § 7.3565.103 Approval requirements
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The Agency will establish and maintain a “list of approved lenders”. To be an approved lender, eligible lenders must meet the following requirements and maintain them on a continuing basis at a level consistent with the nature and size of their portfolio of guaranteed loans.
(a) Commitment. A lender must have a commitment for a guaranteed loan or an agreement to purchase a guaranteed loan.
(b) Audited statement. A lender must provide the Agency with an annual audited financial statement conducted in accordance with generally accepted government auditing standards.
(c) Previous participation. A lender may not be delinquent on a federal debt or have an outstanding finding of deficiency in a federal housing program.
(d) Ongoing requirements. A lender must meet the following requirements at initial application and on a continuing basis thereafter:
(1) Overall financial strength, including capital, liquidity, and loan loss reserves, to have an acceptable level of financial soundness as determined by a lender rating service (such as Sheshunoff, Inc.); or to be an approved Fannie Mae, Freddie Mac, Ginnie Mae or HUD Federal Housing Administration multifamily lender; or, if a state housing finance agency, to have a top tier rating by a rating agency (such as Standard and Poor's Corporation);
(2) Bonding and insurance to cover business related losses, including directors and officers insurance, business income loss insurance, and bonding to secure cash management operations;
(3) A minimum of two years experience in originating and servicing multifamily loans;
(4) A positive record of past performance when participating in RHS or other federal loan programs;
(5) Adequate staffing and training to perform the program obligations; the head underwriter must have 3 years of experience and all staff must receive annual multifamily training;
(6) Demonstrated overall financial stability of the business over the past five years;
(7) Evidence of reasonable and prudent business practices for management of the program; and
(8) No negative information on Dunn & Bradstreet or similar type report.
Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.3565.103 Approval requirements - last updated October 02, 2022 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-3565-103.html
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