Repurchases from holders.

CFR · 2024-01-01 · US · Title 7

(a) (1) The lender is encouraged to repurchase the guarantee, upon written demand of a holder, to facilitate the accounting of funds, resolve any loan problem, and resolve the monetary default, where and when reasonable. The benefit to the lender is that it may re-assign the guaranteed portion of the loan and then continue collection of its servicing fee, if any, when the monetary default is cured. (2) When a lender receives a written demand for repurchase from a holder, the lender must notify any other holder and the Agency within 30 calendar days of receipt of the written demand. The lender must inform all parties if the lender will repurchase the unpaid guaranteed portion of the loan from the requesting holder. (3) Upon repurchase the holder will re-assign the assignment guarantee agreement to the lender without recourse. (b) (1) Upon repurchase the holder will re-assign the assignment guarantee agreement to the lender without recourse. (2) The lender must not repurchase from the holder for arbitrage or other purposes to further its own financial gain. (3) Any repurchase from a holder may only be made after the lender obtains the Agency's written approval. (c) (1) (2) (i) A copy of the written demand made upon the lender; (ii) A copy of the lender's denial to repurchase the unpaid guaranteed portion of the guaranteed loan; (iii) Evidence of the right to require payment from the Agency as provided by the holder or duly authorized agent. Such evidence must consist of the ori

official document · source cfr-2024 · id 7:§ 5001.511