Section 1005.213 - Non-Direct Guarantee Lender application, approval, and Direct Guarantee Lender sponsorship(a)Sponsorship. A Sponsorship is a contractual relationship between a Sponsor and a Sponsored Entity.(b)General responsibility requirements of a Sponsor.(1) The Sponsor must determine the eligibility of a Lender and submit to HUD, as prescribed in Section 184 Program Guidance, a recommendation for approval under § 1005.207(b) or evidence of HUD approval under §§ 1005. 205(b) or 211(b).(2) Upon HUD approval of eligibility under § 1005.207(b) , or HUD acknowledgement of the evidence of HUD approval under § 1005.205(b) or § 1005.211(b) , the Sponsor may enter into a Sponsorship with the Sponsored Entity.(3) The Sponsor must notify HUD of changes in a Sponsorship within 10 days.(4) The Sponsor must provide HUD-approved training to the Sponsored Entity on the requirements of the Section 184 Program before the Sponsored Entity may originate Section 184 Guaranteed Loans for the Sponsor.(5) Each Sponsor shall be responsible to HUD for the actions of its Sponsored Entity in Originating Loans. If Tribal or State law requires specific knowledge by the Sponsor or the Sponsored Entity, HUD shall presume the Sponsor had such knowledge and shall remain liable.(6) The Sponsor is responsible for conducting quality control reviews of the Sponsored Entity's origination case binders and Loan performance to ensure compliance with this part.(7) The Sponsor is responsible for maintaining all records for Loans Originated by a Sponsored Entity in accordance with this part.(c)Responsibilities of the Sponsored Entity. A Sponsor must ensure that a Sponsored Entity complies with this part and any other Tribal, Federal, or State law requirements.