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Code of Federal Regulations (Last Updated: July 5, 2024) |
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Title 24 - Housing and Urban Development |
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Subtitle B - Regulations Relating to Housing and Urban Development |
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Chapter IX - Office of Assistant Secretary for Public and Indian Housing, Department of Housing and Urban Development |
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Part 1005 - Loan Guarantees for Indian Housing |
§ 1005.106 - What is the Direct Guarantee procedure?
Latest version.
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§ 1005.106 What is the Direct Guarantee procedure?
(a) General. A loan may be processed under a Direct Guarantee procedure approved by the Department, under which the Department does not issue commitments to guarantee or review applications for loan guarantees before mortgages are executed by lenders approved for Direct Guarantee processing. The Department will approve a loan before the loan is guaranteed.
(b) Mortgagee sanctions. Depending on the nature and extent of the noncompliance with the requirements applicable to the Direct Guarantee procedure, as determined by the Department, the Department may take such actions as are deemed appropriate and in accordance with published guidelines.
[63 FR 48990, Sept. 11, 1998]