Approval requirements.

CFR · 2024-01-01 · US · Title 7

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) (b) (c) (d) (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

official document · source cfr-2024 · id 7:§ 3565.103