Application for and issuance of the loan guarantee.

CFR · 2024-01-01 · US · Title 7

(a) (1) If analysis of the utilization of funds during the fiscal year indicates that, at the rate of current utilization, funds may not be sufficient to sustain that level of activity for the remainder of the fiscal year, the Agency may determine a shortage of funds exists. (2) When there is a shortage of funds, the Agency will limit SFHGLP loans to first-time homebuyers or veterans. First-time homebuyers and veterans will be served in the order their applications are received. (b) (1) Lenders are responsible for ensuring all data is true and accurately represented in the automated underwriting system. (2) Full documentation and verification, in accordance with Subparts C, D and E of this part, will be retained in the lender's permanent loan file and must confirm the applicant's eligibility, creditworthiness, repayment ability, eligible loan purpose, sufficient collateral, and all other regulatory requirements. (3) The use of Rural Development's automated underwriting system subjects the lender to indemnification requirements in accordance with § 3555.108. (4) If a loan receives an “Accept” underwriting recommendation, the lender is generally permitted to submit minimal documentation including the appraisal, flood hazard determination and fully executed request for guarantee, unless the lender is instructed to provide other documentation. (5) Loan requests that receive a “Refer” or “Refer with Caution” underwriting recommendation require further review and manual underwritin

official document · source cfr-2024 · id 7:§ 3555.107