Maintenance of approved lender status.

CFR · 2024-01-01 · US · Title 7

Continuation of approved lender status under this part is not automatic. Lenders may lose their approved lender status as described in paragraph (a) of this section. The Agency may also revoke a lender's status as an approved lender or debar the approved lender, as described in paragraph (b) of this section. (a) (1) Fails to conform with the provisions of this part or the applicable guaranteed loan program identified in § 5001.1 of this part; (2) Has no outstanding guaranteed loans with the Agency for five consecutive years; (3) A regulated lending entity fails to remain in good standing with its regulator; (4) A non-regulated lending entity fails to renew its approval status 5 (b) (1) Guaranteed loans originated by the lender cause substantial financial loss to the Agency. (2) Failure to maintain status as an approved lender under the applicable regulations in effect when the lender obtained approved lender status. For lenders approved under this part, this means maintaining compliance with the requirements set forth in § 5001.130. (3) Conviction of the lender or any of its officers for criminal acts in connection with any loan transaction, whether or not the loan was guaranteed by the Agency. (4) Violation of usury laws in connection with any loan transaction whether or not the loan was guaranteed by the Agency. (5) Negligent loan origination. (6) Knowingly submitting false information when requesting a loan guarantee or basing a loan guarantee request on information known

official document · source cfr-2024 · id 7:§ 5001.132