1、130 24 CFR Ch. II (4111 Edition) Pt. 202 PART 202APPROVAL OF LENDING INSTITUTIONS AND MORTGAGEES Subpart AGeneral Requirements Sec. 202.1 Purpose. 202.2 Definitions 202.3 Approval status for lenders and mort-gagees. 202.4 Request for determination of compli-ance. 202.5 General approval standards. Su
2、bpart BClasses of Lenders and Mortgagees 202.6 Supervised lenders and mortgagees. 202.7 Nonsupervised lenders and mortga-gees. 202.8 Sponsored third-party originators; Continued approval of loan correspond-ents through December 31, 2010. 202.9 Investing lenders and mortgagees. 202.10 Governmental in
3、stitutions, Govern-ment-sponsored enterprises, public hous-ing agencies and State housing agencies. Subpart CTitle I and Title II Specific Requirements 202.11 Title I. 202.12 Title II. AUTHORITY: 12 U.S.C. 1703, 1709 and 1715b; 42 U.S.C. 3535(d). SOURCE: 62 FR 20082, Apr. 24, 1997, unless otherwise
4、noted. Subpart AGeneral Requirements 202.1 Purpose. This part establishes minimum standards and requirements for ap-proval by the Secretary of lenders and mortgagees to participate in the Title I and Title II programs. 202.2 Definitions. Act means the National Housing Act (12 U.S.C. 1702 et seq.) Cl
5、aim means a single family insured mortgage for which the Secretary pays an insurance claim within 24 months after the mortgage is insured. Default means a single family insured mortgage in default for 90 or more days within 24 months after the mortgage is insured. Lender or Title I lender means a fi
6、nan-cial institution that: (a) Holds a valid Title I Contract of Insurance and is approved by the Sec-retary under this part as a supervised lender under 202.6, a nonsupervised lender under 202.7, an investing lender under 202.9, or a governmental or similar institution under 202.10; or (b) Is under
7、 suspension or held a Title I contract that has been terminated but remains responsible for servicing or selling Title I loans that it holds and is authorized to file insurance claims on such loans. Loan or Title I loan means a loan au-thorized for insurance under Title I of the Act. Mortgage, Title
8、 II mortgage or insured mortgage means a mortgage or loan in-sured under Title II or Title XI of the Act. Mortgagee or Title II mortgagee means a mortgage lender that is approved to participate in the Title II programs as a supervised mortgagee under 202.6, a nonsupervised mortgagee under 202.7, an
9、investing mortgagee under 202.9, or a governmental or similar institution under 202.10. Multifamily mortgagee means a mort-gagee approved to participate only in multifamily Title II programs, except that for purposes of 202.8(b)(1) the term also means a mortgagee approved to participate in both sing
10、le family and multifamily Title II programs. Normal rate means the rate of de-faults and claims on insured mortgages for the geographic area served by a HUD field office, or other area des-ignated by the Secretary, in which a mortgagee originates mortgages. Origination approval agreement means the S
11、ecretarys agreement that a mort-gagee is approved to originate single family insured mortgages. Title I program(s) means an insurance program or programs authorized by Title I of the Act. Title II program(s) means an insurance program or programs authorized by Title II or Title XI of the Act. 62 FR
12、20082, Apr. 24, 1997, as amended at 62 FR 65181, Dec. 10, 1997; 75 FR 20731, Apr. 20, 2010 202.3 Approval status for lenders and mortgagees. (a) Initial approval. A lender or mort-gagee may be approved for participa-tion in the Title I or Title II programs upon filing a request for approval on a Ver
13、Date Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00140 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-131 Office of Assistant Secretary for Housing, HUD 202.3 f
14、orm prescribed by the Secretary and signed by the applicant. The approval form shall be accompanied by such doc-umentation as may be prescribed by the Secretary. (1) Approval is signified by: (i) The Secretarys agreement that the lender or mortgagee is considered approved under the Title I or Title
15、II programs, except as otherwise ordered by the Mortgagee Review Board or an officer or subdivision of the Depart-ment to which the Mortgagee Review Board has delegated its power, unless the lender or mortgagee voluntarily re-linquishes its approval; (ii) Consent by the lender or mort-gagee to compl
16、y at all times with the general approval requirements of 202.5, and with additional require-ments governing the particular class of lender or mortgagee for which it was approved as described under subpart B at 202.6 through 202.10; and (iii) Under the Title I program, the issuance of a Contract of I
17、nsurance constitutes an agreement between the Secretary and the lender and which governs participation in the Title I program. (2) Limitations on approval: (i) Separate approval as lender or mortgagee is required for participation in the Title I or Title II programs, re-spectively. Application must
18、be made, and approval will be granted, on the basis of one or both categories of pro-grams, as is appropriate. (ii) Separate approval as mortgagee is required for the Single Family Mort-gage Insurance Programs and for the Multifamily Mortgage Insurance Pro-grams. Application must be made, and approv
19、al will be granted, on the basis of either or both categories, as is ap-propriate. (iii) In addition to the requirements for approval as a Title II mortgagee, the Secretary may from time to time issue eligibility requirements for par-ticipation in specific programs, such as the Direct Endorsement pr
20、ogram. (iv) A Title II mortgagee may be ap-proved to operate either on a nation-wide basis or on a geographically re-stricted basis in only those areas des-ignated by the Secretary. (v) A Title I lender may originate loans or purchase advances of credit only within a geographic lending area approved
21、 by the Secretary. Expansion of this lending area shall be subject to a determination by the Secretary that the lender is able to originate loans in compliance with part 201 of this chap-ter within such expanded area. (3) Authorized agents. A mortgagee ap-proved under 202.6, 202.7, or 202.10 as a no
22、nsupervised mortgagee, supervised mortgagee, or governmental or similar institution approved as a Direct En-dorsement mortgagee under 24 CFR 203.3 may, with the approval of the Sec-retary, designate a nonsupervised or supervised mortgagee with Direct En-dorsement approval under 24 CFR 203.3 as autho
23、rized agent for the purpose of underwriting loans. The application for mortgage insurance may be submitted in the name of the FHA-approved mort-gagee or its designated authorized agent under this paragraph. (b) Recertification. On each anniver-sary of the approval of a lender or mortgagee, the Secre
24、tary will deter-mine whether recertification, i.e., con-tinued approval, is appropriate. The Secretary will review the yearly verification report required by 202.5(n)(2) and other pertinent docu-ments, ascertain that all application and annual fees have been paid, and re-quest any further informatio
25、n needed to decide upon recertification. (c) Termination(1) Termination of the Title I Contract of Insurance(i) Notice. A Contract of Insurance may be termi-nated in accordance with its terms by the Secretary or by the Secretarys designee upon giving the lender at least 5 days prior written notice.
26、(ii) Informal meeting. If requested, and before expiration of the 5-day notice period, a lender shall be entitled to an informal meeting with the Department official taking action to terminate the Contract of Insurance. (iii) Effect of termination. Termination of a Contract of Insurance shall not af
27、-fect: (A) The Departments obligation to provide insurance coverage with re-spect to eligible loans originated before the termination, unless there was fraud or misrepresentation; (B) A lenders obligation to continue to pay insurance charges or premiums VerDate Mar2010 10:21 May 10, 2011 Jkt 223078
28、PO 00000 Frm 00141 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-132 24 CFR Ch. II (4111 Edition) 202.3 and meet all other obligations, includ-ing servicing, associat
29、ed with eligible loans originated before termination; or (C) A lenders right to apply for and be granted a new Title I Contract of In-surance, provided that the require-ments for approval under this part are met. (2) Credit Watch Termination. (i) Scope and frequency of review. The Secretary will rev
30、iew, on an ongoing basis, the number of defaults and claims on mort-gages originated, underwritten, or both, by each mortgagee in the geo-graphic area served by a HUD field of-fice. HUD will make this rate informa-tion available to mortgagees and the public through electronic means and will issue in
31、structions for accessing this information through a Mortgagee Letter. For this purpose, and for all purposes under paragraph (c) of this section, a mortgage is considered to be originated in the same federal fiscal year in which its amortization com-mences. The Secretary may also review the insured
32、mortgage performance of a mortgagees branch offices individually and may terminate the authority of the branch or the authority of the mortgagees overall operation. (ii) Credit Watch Status. Mortgagees are responsible for monitoring their de-fault and claim rate performance. A mortgagee is considere
33、d to be on Credit Watch Status if, at any time, the mort-gagee has a rate of defaults and claims on insured mortgages originated, un-derwritten, or both, in an area which exceeds 150 percent of the normal rate and its origination approval agreement has not been terminated. (iii) Notice of terminatio
34、n. (A) Notice of termination of origination approval agree-ment. The Secretary may notify a mortgagee that its origination ap-proval agreement will terminate 60 days after notice is given, if the mort-gagee had a rate of defaults and claims on insured mortgages originated in an area which exceeded 2
35、00 percent of the normal rate and exceeded the national default and claim rate for insured mortgages. (B) Notice of termination of direct en-dorsement approval. The Secretary may notify a mortgagee that its direct en-dorsement approval under 24 CFR part 203 will terminate 60 days after notice is giv
36、en, if the mortgagee had a rate of defaults and claims on insured mort-gages underwritten in an area which exceeded 200 percent of the normal rate and exceeded the national default and claim rate for insured mortgages. The termination of a mortgagees direct en-dorsement approval pursuant to this sec
37、tion is separate and apart from the termination of a mortgagees direct en-dorsement approval under 24 CFR part 203. (C) No need for prior action by Mort-gagee Review Board. The termination notices described in paragraphs (c)(2)(ii)(A) and (B) of this section may be given without prior action by the
38、Mortgagee Review Board. (D) Underserved areas. Before the Sec-retary sends the termination notice, the Secretary shall review the Census tract concentrations of the defaults and claims. If the Secretary deter-mines that the excessive rate is the re-sult of mortgage lending in under-served areas, as
39、defined in 24 CFR 81.2, the Secretary may determine not to terminate the mortgagees origination approval agreement and/or direct en-dorsement approval. (iv) Request for informal conference. Prior to termination the mortgagee may submit a written request for an informal conference with the Deputy Ass
40、istant Secretary for Single Family Housing or that officials designee. HUD must receive the written request no later than 30 calendar days after the date of the proposed termination no-tice. Unless HUD grants an extension, the informal conference must be held no later than 60 calendar days after the
41、 date of the proposed termination no-tice. After considering relevant reasons and factors beyond the mortgagees control that contributed to the exces-sive default and claim rates, the Dep-uty Assistant Secretary for Single Family Housing or designee may with-draw the termination notice. (v) Limitati
42、on on the establishment of new branches. Upon receipt of a pro-posed termination notice of its origina-tion approval agreement, the mort-gagee shall not establish a new branch or new branches for the origination of FHA-insured mortgages in the area or areas that are covered by the proposed terminati
43、on notice. As of January 18, VerDate Mar2010 10:21 May 10, 2011 Jkt 223078 PO 00000 Frm 00142 Fmt 8010 Sfmt 8010 Y:SGML223078.XXX 223078WReier-Aviles on DSKGBLS3C1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-133 Office of Assistant Se
44、cretary for Housing, HUD 202.3 2005, a mortgagee that is in receipt of a notice of proposed termination may not establish any new branch in the lo-cation or locations cited in the pro-posed termination notice until either: (A) The proposed termination notice is withdrawn or (B) The Secretary reinsta
45、tes the mortgagees origination approval agreement, in accordance with para-graph (e) of this section. (vi) Effects of termination. (A) Termi-nation of origination approval agreement. If a mortgagees origination approval agreement is terminated, it may not originate single family insured mort-gages u
46、nless the origination approval agreement is reinstated by the Sec-retary in accordance with paragraph (e) of this section, notwithstanding any other provision of this part except 202.3(c)(2)(vii)(A). (B) Termination of direct endorsement approval. If a mortgagees direct en-dorsement approval is term
47、inated, it may not underwrite single family in-sured mortgages for the area(s) identi-fied in the termination notice, unless the direct endorsement approval is re-instated by the Secretary in accord-ance with paragraph (e) of this section, notwithstanding any other provision of this part except 202.
48、3(c)(2)(vii)(A). (vii) Rights and obligations in the event of termination. Termination of the origination approval agreement and/or direct endorsement approval shall not affect: (A) The eligibility of the mortgage for insurance, absent fraud or mis-representation, if the mortgagor and all terms and
49、conditions of the mort-gage had been approved before the ter-mination by the Direct Endorsement or Lender Insurance mortgagee or were covered by a firm commitment issued by the Secretary; however, no other mortgages originated or underwritten after the date of termination by the mortgagee shall be insured unless the mortgagees origination approval agreement and/or direct endorsement approval is reinstated by the Sec-retary; (B) The right of a mo
