Default by borrower.

CFR · 2024-01-01 · US · Title 7

The lender's primary responsibilities in default are to act prudently and expeditiously, to work with the borrower to bring the account current or cure the default through restructuring if a realistic plan can be developed, or to accelerate the account and conduct a liquidation in a manner that will minimize any potential loss. The lender may initiate liquidation subject to submission and approval of a complete liquidation plan. (a) The lender must notify the Agency when a borrower is more than 30 days past due on a payment and the delinquency cannot be cured within 30 (b) In considering options, the prospects for providing a permanent cure without adversely affecting the risk to the Agency and the lender is the paramount objective. (1) Curative actions (subject to the rights of any holder and Agency concurrence) include, but are not limited to: (i) Deferment of principal and/or interest payments; (ii) An additional unguaranteed temporary loan by the lender to bring the account current; (iii) Reamortization of or rescheduling the payments on the loan; (iv) Transfer and assumption of the loan in accordance with § 4287.134; (v) Reorganization; (vi) Liquidation; and (vii) Changes in interest rates with the Agency's, the lender's, and any holder's approval. Any interest payments must be adjusted proportionately between the guaranteed and unguaranteed portion of the loan. (2) The term of any deferment, rescheduling, reamortization, or moratorium will be limited to the lesser of th

official document · source cfr-2024 · id 7:§ 4287.145