Assignment of guarantee.

CFR · 2024-01-01 · US · Title 7

(a) The following general requirements apply to assigning guaranteed loans: (1) Subject to Agency concurrence, the lender may assign all or part of the guaranteed portion of the loan to one or more holders at or after loan closing, if the loan is not in default. However, a line of credit cannot be assigned. The lender must always retain the unguaranteed portion in their portfolio, regardless of how the loan is funded. (2) The Agency may refuse to execute the Assignment of Guarantee and prohibit the assignment in case of the following: (i) The Agency purchased and is holder of a loan that was assigned by the lender that is requesting the assignment. (ii) The lender has not complied with the reimbursement requirements of § 762.144(c)(7), except when the 180 day reimbursement or liquidation requirement has been waived by the Agency. (3) The lender will provide the Agency with copies of all appropriate forms used in the assignment. (4) The guaranteed portion of the loan may not be assigned by the lender until the loan has been fully disbursed to the borrower. (5) The lender is not permitted to assign any amount of the guaranteed or unguaranteed portion of the loan to the applicant or borrower, or members of their immediate families, their officers, directors, stockholders, other owners, or any parent, subsidiary, or affiliate. (6) Upon the lender's assignment of the guaranteed portion of the loan, the lender will remain bound to all obligations indicated in the Guarantee, Lender'

official document · source cfr-2024 · id 7:§ 762.160