Lender transfer.

CFR · 2024-01-01 · US · Title 7

(a) After the issuance of a loan note guarantee, a lender may sell or transfer the entire loan to a new lender with prior written approval of the Agency. The Agency may approve the sale or transfer to a new lender if the following conditions are met. The new lender: (1) Is an eligible lender in accordance with § 5001.130 of this part and is approved as such; (2) Is able to service the loan in accordance with the original loan documents; (3) Agrees in writing to acquire title to the unguaranteed portion of the loan held by the original Lender and assumes all original loan requirements, including liabilities and servicing responsibilities; and (4) The transfer to the new lender is requested in writing by the borrower, the proposed new lender, and the original lender of record, if still in existence. (b) Upon Agency approval, the original lender must transfer to the new lender the: (1) Original promissory note and loan security documents; (2) Original loan note guarantee; (3) Original personal and corporate guarantee(s); (4) Loan payment history; and (v) The new lender must agree to accept the current loan terms, including the interest rate, secondary market holder (if any), collateral, loan agreement terms, and guarantors. The new lender can modify the loan terms after acquisition only by submitting a written request to the Agency and receiving Agency approval. (vi) The new lender must certify to the Agency that the loan transfer has been completed in accordance with applicable

official document · source cfr-2024 · id 7:§ 5001.507