Participation or assignment of guaranteed loan.

CFR · 2024-01-01 · US · Title 7

(a) (1) (2) (3) (i) The lender must hold a minimum of 7.5 percent of the total loan amount. (ii) The lender must retain its security interest in the collateral and retain the servicing responsibilities for the guaranteed loan. (iii) The Agency can approve a reduction of the minimum retention requirement below the applicable percentage on a case-by-case basis when the lender establishes to the Agency's satisfaction that reduction of the minimum retention percentage is necessary to meet compliance with the lender's regulatory authority. (4) (5) (b) (c) (d) (1) The lender may assign all or part of the guaranteed portion of the loan, including interest strips, to one or more holders by using an assignment guarantee agreement for each holder. The lender must complete and execute the assignment guarantee agreement and return it to the Agency for execution prior to holder execution. (2) The lender or holder may request a certificate of incumbency and signature from the Agency. (3) A holder, upon written notice to the lender and the Agency, may reassign the unpaid guaranteed portion of the loan, in full, assigned under the assignment guarantee agreement. Holders can only reassign the complete block they have received and cannot subdivide or further split their interest in the guaranteed portion of a loan or retain an interest strip. (4) Upon notification and completion of the assignment through the use of the assignment guarantee agreement, the assignee succeeds to all rights and obl

official document · source cfr-2024 · id 7:§ 5001.408