§ 1980.63 - Defaults by borrower.

(a) Refer to paragraph X of Form FmHA or its successor agency under Public Law 103-354 449-35.

(b) FmHA or its successor agency under Public Law 103-354 may be required to purchase the guaranteed portion of a loan(s) from holder(s) in the event of default or servicing problems. The County Supervisor will coordinate any requests from holder(s) located in close proximity to the local lender. If several holders are located outside the area, the State Director will handle the transaction and notify the County Supervisor. The County Supervisor will prepare a Form FmHA or its successor agency under Public Law 103-354 1980-37, “FmHA or its successor agency under Public Law 103-354 Purchase of a Guaranteed Loan Portion,” for each holder(s) and follow the instructions on the reverse of the form.