24 C.F.R. § 1005.527

Current through September 30, 2024
Section 1005.527 - Post-endorsement review
(a) HUD may review an endorsement case binder at any time, including but not limited to a quality control review of all documents in § 1005.503 .
(b) Within three business days of a request by HUD, the Direct Guarantee Lender must make available for review, or forward to HUD, copies of the identified endorsement case binder(s).
(c) A Direct Guarantee Lender's failure to provide HUD access to any files may be grounds for sanctions in accordance with §§ 1005.905 and 1005.907 .
(d) Based on HUD's review under paragraph (a) of this section, if HUD determines that:
(1) The Loan does not satisfy the requirements of subpart F of this part;
(2) The Direct Guarantee Lender or Sponsored Entity committed fraud or a material misrepresentation; or
(3) The Direct Guarantee Lender or Sponsored Entity had known or should have known of fraud or a material misrepresentation in violation of this part, such that the Loan should not have been approved by the Direct Guarantee Lender;
(e) HUD may request indemnification from the originating Direct Guarantee Lender and impose sanctions on the Direct Guarantee Lender and Sponsored Entity pursuant to §§ 1005.905 and 1005.907 .

24 C.F.R. §1005.527

89 FR 20056, 6/18/2024