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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10:10:5.0.3.5.4.0.22.1 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.1 What is the purpose of these regulations? | DOE | (a) The regulations in this part implement Executive Order 12372, “Intergovernmental Review of Federal Programs,” issued July 14, 1982 and amended on April 8, 1983. These regulations also implement applicable provisions of section 401 of the Intergovernmental Cooperation Act of 1968. (b) These regulations are intended to foster an intergovernmental partership and a strengthened Federalism by relying on state processes and on state, areawide, regional and local coordination for review of proposed federal financial assistance and direct federal development. (c) These regulations are intended to aid the internal management of the Department, and are not intended to create any right or benefit enforceable at law by a party against the Department or its officers. | |||||||
| 10:10:5.0.3.5.4.0.22.10 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.10 How does the Secretary make efforts to accommodate intergovernmental concerns? | DOE | (a) If a state process provides a state process recommendation to the Department through its single point of contact, the Secretary either: (1) Accepts the recommendation; (2) Reaches a mutually agreeable solution with the state process; or (3) Provides the single point of contact with such written explanation of the decision, as the Secretary in his or her discretion deems appropriate. The Secretary may also supplement the written explanation by providing the explanation to the single point of contact by telephone, other telecommunication, or other means. (b) In any explanation under paragraph (a)(3) of this section, the Secretary informs the single point of contact that: (1) The Department will not implement its decision for at least ten days after the single point of contact receives the explanation; or (2) The Secretary has reviewed the decision and determined that, because of unusual circumstances, the waiting period of at least ten days is not feasible. (c) For purposes of computing the waiting period under paragraph (b)(1) of this section, a single point of contact is presumed to have received written notification 5 days after the date of mailing of such notification. | |||||||
| 10:10:5.0.3.5.4.0.22.11 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.11 What are the Secretary's obligations in interstate situations? | DOE | (a) The Secretary is responsible for: (1) Identifying proposed federal financial assistance and direct federal development that have an impact on interstate areas; (2) Notifying appropriate officials and entities in states which have adopted a process and which select the Department's program or activity; (3) Making efforts to identify and notify the affected state, areawide, regional, and local officials and entities in those states that have not adopted a process under the Order or do not select the Department's program or activity; (4) Responding pursuant to § 1005.10 of this part if the Secretary receives a recommendation from a designated areawide agency transmitted by a single point of contact, in cases in which the review, coordination, and communication with the Department have been delegated. (b) The Secretary uses the procedures in § 1005.10 if a state process provides a state process recommendation to the Department through a single point of contact. | |||||||
| 10:10:5.0.3.5.4.0.22.12 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.12 How may a state simplify, consolidate, or substitute federally required state plans? | DOE | (a) As used in this section: (1) Simplify means that a state may develop its own format, choose its own submission date, and select the planning period for a state plan. (2) Consolidate means that a state may meet statutory and regulatory requirements by combining two or more plans into one document and that the state can select the format, submission date, and planning period for the consolidated plan. (3) Substitute means that a state may use a plan or other document that it has developed for its own purposes to meet Federal requirements. (b) If not inconsistent with law, a state may decide to try to simplify consolidate, or substitute federally required state plans without prior approval by the Secretary. (c) The Secretary reviews each state plan that a state has simplified, consolidated, or substituted and accepts the plan only if its contents meet federal requirements. | |||||||
| 10:10:5.0.3.5.4.0.22.13 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.13 May the Secretary waive any provision of these regulations? | DOE | In an emergency, the Secretary may waive any provision of these regulations. | |||||||
| 10:10:5.0.3.5.4.0.22.2 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.2 What definitions apply to these regulations? | DOE | Department means the U.S. Department of Energy. Order means Executive Order 12372, issued July 14, 1982, and amended April 8, 1983 and titled “Intergovernmental Review of Federal Programs.” Secretary means the Secretary of the U.S. Department of Energy or an official or employee of the Department acting for the Secretary under a delegation of authority. State means any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust Territory of the Pacific Islands. | |||||||
| 10:10:5.0.3.5.4.0.22.3 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.3 What programs and activities of the Department are subject to these regulations? | DOE | (a) The Secretary publishes in the Federal Register a list of the Department's program and activities that are subject to the order and these regulations. (b) Unless otherwise stated in the Federal Register listing identified in paragraph (a) of this section, these regulations do not apply to the Department's financial assistance transactions with other than governmental entities. (c) The Bonneville Power Administration shall satisfy the requirements of these regulations by compliance with the consultation requirements of the Pacific Northwest Electric Power Planning and Conservation Act, Public Law 96-501. | |||||||
| 10:10:5.0.3.5.4.0.22.4 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.4 What are the Secretary's general responsibilities under the Order? | DOE | (a) The Secretary provides opportunities for consultation by elected officials of those state and local governments that would provide the nonfederal funds, for, or that would be directly affected by, proposed federal financial assistance from, or direct federal development by, the Department. (b) If a state adopts a process under the Order to review and coordinate proposed federal financial assistance and direct federal development, the Secretary, to the extent permitted by law: (1) Uses the state process to determine official views of state and local elected officials; (2) Communicates with state and local elected officials as early in a program planning cycle as is reasonably feasible to explain specific plans and actions; (3) Make efforts to accommodate state and local elected official's concerns with proposed federal financial assistance and direct federal development that are communicated through the state process; (4) Allows the states to simplify and consolidate existing federally required state plan submissions; (5) Where state planning and budgeting systems are sufficient and where permitted by law, encourages the substitution of State plans for federally required state plans; (6) Seeks the coordination of views of affected state and local elected officials in one state with those of another state when proposed federal financial assistance or direct federal development has an impact on interstate metropolitan urban centers or other interstate areas; and (7) Supports state and local governments by discouraging the reauthorization or creation of any planning organization which is federally-funded, which has a limited purpose, and which is not adequately representative of, or accountable to, state or local elected officials. | |||||||
| 10:10:5.0.3.5.4.0.22.5 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.5 What is the Secretary's obligation with respect to Federal interagency coordination? | DOE | The Secretary, to the extent practicable, consults with and seeks advice from all other substantially affected federal departments and agencies in an effort to assure full coordination between such agencies and the Department regarding programs and activities covered under these regulations. | |||||||
| 10:10:5.0.3.5.4.0.22.6 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.6 What procedures apply to the selection of programs and activities under these regulations? | DOE | (a) A state may select any program or activity published in the Federal Register in accordance with § 1005.3 of this part for intergovernmental review under these regulations. Each state, before selecting programs and activities, shall consult with local elected officials. (b) Each state that adopts a process shall notify the Secretary of the Department's programs and activities selected for that process. (c) A state may notify the Administrator of changes in its selections at any time. For each change, the state shall submit to the Secretary an assurance that the state has consulted with local elected officials regarding the change. The Department may establish deadlines by which states are required to inform the Secretary of changes in their program selections. (d) The Secretary uses a state's process as soon as feasible, depending on individual programs and activities, after the Secretary is notified of its selections. | |||||||
| 10:10:5.0.3.5.4.0.22.7 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.7 How does the Secretary communicate with state and local officials concerning the Department's programs and activities? | DOE | (a) [Reserved] (b) The Secretary provides notice to directly affected state, areawide, regional, and local entities in a state of proposed Federal financial assistance or direct Federal development if: (1) The state has not adopted a process under the Order; or (2) The assistance or development involves a program or activity not selected for the state process. This notice may be made by publication in the Federal Register or other appropriate means, which the Department in its discretion deems appropriate. | |||||||
| 10:10:5.0.3.5.4.0.22.8 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.8 How does the Secretary provide states an opportunity to comment on proposed Federal financial assistance and direct Federal development? | DOE | (a) Except in unusual circumstances, the Secretary gives state processes or directly affected State, areawide, regional and local officials and entities— (1) At least 30 days from the date established by the Secretary to comment on proposed Federal financial assistance in the form of noncompeting continuation awards; and (2) At least 60 days from the date established by the Secretary to comment on proposed direct Federal development or Federal financial assistance other than noncompeting continuation awards. (b) This section also applies to comments in cases in which the review, coordination, and communication with the Department have been delegated. | |||||||
| 10:10:5.0.3.5.4.0.22.9 | 10 | Energy | X | 1005 | PART 1005—INTERGOVERNMENTAL REVIEW OF DEPARTMENT OF ENERGY PROGRAMS AND ACTIVITIES | § 1005.9 How does the Secretary receive and respond to comments? | DOE | (a) The Secretary follows the procedures in § 1005.10 if: (1) A state office or official is designated to act as a single point of contact between a state process and all federal agencies, and (2) That office or official transmits a state process recommendation for a program selected under § 1005.6. (b)(1) The single point of contact is not obligated to transmit comments from state, areawide, regional or local officials and entities where there is no state process recommendation. (2) If a state process recommendation is transmitted by a single point of contact, all comments from, state, areawide, regional, and local officials and entities that differ from it must also be transmitted. (c) If a state has not established a process, or is unable to submit a state process recommendation, state, areawide, regional and local officials and entities may submit comments either to the applicant or to the Department. (d) If a program or activity is not selected for a state process, state, areawide, regional and local officials and entities may submit comments either to the applicant or to the Department. In addition, if a state process recommendation for a nonselected program or activity is transmitted to the Department by the single point of contact, the Secretary follows the procedures of § 1005.10 of this part. (e) The Secretary considers comments which do not constitute a state process recommendation submitted under these regulations and for which the Secretary is not required to apply the procedures of § 1005.10 of this part, when such comments are provided by a single point of contact, by the applicant, or directly to the Department by a commenting party. | |||||||
| 21:21:8.0.1.3.41.1.1.1 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | A | Subpart A—General Provisions | § 1005.1 Applicability. | FDA | [38 FR 28630, Oct. 15, 1973, as amended at 45 FR 81739, Dec. 12, 1980] | (a) The provisions of §§ 1005.1 through 1005.24 are applicable to electronic products which are subject to the standards prescribed under this subchapter and are offered for importation into the United States. (b) Section 1005.25 is applicable to every manufacturer of electronic products offering an electronic product for importation into the United States. | |||
| 21:21:8.0.1.3.41.1.1.2 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | A | Subpart A—General Provisions | § 1005.2 Definitions. | FDA | [81 FR 85973, Nov. 29, 2016] | As used in this part: The term owner or consignee means the person who makes entry under the provisions of section 484 of the Tariff Act of 1930, as amended (19 U.S.C. 1484), namely, the “importer of record.” | |||
| 21:21:8.0.1.3.41.1.1.3 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | A | Subpart A—General Provisions | § 1005.3 Importation of noncomplying goods prohibited. | FDA | [69 FR 11314, Mar. 10, 2004] | The importation of any electronic product for which standards have been prescribed under section 534 of the Federal Food, Drug, and Cosmetic Act (the act) (21 U.S.C. 360kk) shall be refused admission into the United States unless there is affixed to such product a certification in the form of a label or tag in conformity with section 534(h) of the act (21 U.S.C. 360kk(h)). Merchandise refused admission shall be destroyed or exported under regulations prescribed by the Secretary of the Treasury unless a timely and adequate petition for permission to bring the product into compliance is filed and granted under §§ 1005.21 and 1005.22. | |||
| 21:21:8.0.1.3.41.2.1.1 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | B | Subpart B—Inspection and Testing | § 1005.10 Notice of sampling. | FDA | When a sample of a product to be offered for importation has been requested by the Secretary, the District Director of Customs having jurisdiction over the shipment shall, upon the arrival of the shipment, procure the sample and shall give to its owner or consignee prompt notice of the delivery or of the intention to deliver such sample to the Secretary. If the notice so requires, the owner or consignee will hold the shipment of which the sample is typical and not release such shipment until he receives notice of the results of the tests of the sample from the Secretary, stating that the product is in compliance with the requirements of the Act. The District Director of Customs will be given the results of the tests. If the Secretary notifies the District Director of Customs that the product does not meet the requirements of the Act, the District Director of Customs shall require the exportation or destruction of the shipment in accordance with customs laws. | ||||
| 21:21:8.0.1.3.41.2.1.2 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | B | Subpart B—Inspection and Testing | § 1005.11 Payment for samples. | FDA | [73 FR 34860, June 19, 2008, as amended at 85 FR 50783, Aug. 18, 2020] | The Department of Health and Human Services will pay for all import samples of electronic products rendered unsalable as a result of testing, or will pay the reasonable costs of repackaging such samples for sale, if the samples are found to be in compliance with the requirements of Subchapter C—Electronic Product Radiation Control of the Federal Food, Drug, and Cosmetic Act (formerly the Radiation Control for Health and Safety Act of 1968). Billing for reimbursement should be made by the owner or consignee to the Food and Drug Administration division where the shipment was offered for import. Payment for samples will not be made if the sample is found to be in violation of the Act, even though subsequently brought into compliance pursuant to terms specified in a notice of permission issued under § 1005.22. | |||
| 21:21:8.0.1.3.41.3.1.1 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | C | Subpart C—Bonding and Compliance Procedures | § 1005.20 Hearing. | FDA | (a) If, from an examination of the sample or otherwise, it appears that the product may be subject to a refusal of admission, the Secretary shall give the owner or consignee a written notice to that effect, stating the reasons therefor. The notice shall specify a place and a period of time during which the owner or consignee shall have an opportunity to introduce testimony unless the owner or consignee indicates his intention to bring the product into compliance. Upon timely request, such time and place may be changed. Such testimony shall be confined to matters relevant to the admissibility of the article and may be introduced orally or in writing. (b) If the owner or consignee submits or indicates his intention to submit an application for permission to perform such action as is necessary to bring the product into compliance with the Act, such application shall include the information required by § 1005.21. (c) If the application is not submitted at or prior to the hearing, the Secretary may allow a reasonable time for filing such application. | ||||
| 21:21:8.0.1.3.41.3.1.2 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | C | Subpart C—Bonding and Compliance Procedures | § 1005.21 Application for permission to bring product into compliance. | FDA | Application for permission to perform such action as is necessary to bring the product into compliance with the Act may be filed only by the owner, consignee, or manufacturer and, in addition to any other information which the Secretary may reasonably require, shall: (a) Contain a detailed proposal for bringing the product into compliance with the Act; (b) Specify the time and place where such operations will be effected and the approximate time for their completion; and (c) Identify the bond required to be filed pursuant to § 1005.23. | ||||
| 21:21:8.0.1.3.41.3.1.3 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | C | Subpart C—Bonding and Compliance Procedures | § 1005.22 Granting permission to bring product into compliance. | FDA | (a) When permission contemplated by § 1005.21 is granted, the Secretary shall notify the applicant in writing, specifying: (1) The procedure to be followed; (2) The disposition of the rejected articles or portions thereof; (3) That the operations are to be carried out under the supervision of a representative of the Department of Health and Human Services; (4) A reasonable time limit for completing the operations; and (5) Such other conditions as he finds necessary to maintain adequate supervision and control over the product. (b) Upon receipt of a written request for an extension of time to complete the operations necessary to bring the product into compliance, the Secretary may grant such additional time as he deems necessary. (c) The notice of permission may be amended upon a showing of reasonable grounds thereof and the filing of an amended application for permission with the Secretary. (d) If ownership of a product included in a notice of permission changes before the operations specified in the notice have been completed, the original owner will remain responsible under its bond, unless the new owner has executed a superseding bond on customs Form 7601 and obtained a new notice. (e) The Secretary will notify the District Director of Customs having jurisdiction over the shipment involved, of the determination as to whether or not the product has in fact been brought into compliance with the Act. | ||||
| 21:21:8.0.1.3.41.3.1.4 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | C | Subpart C—Bonding and Compliance Procedures | § 1005.23 Bonds. | FDA | The bond required under section 360(b) of the Act shall be executed by the owner or consignee on the appropriate form of a customs single-entry bond, customs Form 7551 or term bond, customs Form 7553 or 7595, containing a condition for the redelivery of the shipment or any part thereof not complying with the laws and regulations governing its admission into the commerce of the United States upon demand of the District Director of Customs and containing a provision for the performance of any action necessary to bring the product into compliance with all applicable laws and regulations. The bond shall be filed with the District Director of Customs. | ||||
| 21:21:8.0.1.3.41.3.1.5 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | C | Subpart C—Bonding and Compliance Procedures | § 1005.24 Costs of bringing product into compliance. | FDA | [38 FR 28630, Oct. 15, 1973, as amended at 42 FR 55207, Oct. 14, 1977; 42 FR 62130, Dec. 9, 1977; 85 FR 50783, Aug. 18, 2020] | The costs of supervising the operations necessary to bring a product into compliance with the Act shall be paid by the owner or consignee who files an application pursuant to § 1005.21 and executes a bond under section 360(b) of the Act. Such costs shall include: (a) Travel expenses of the supervising officer; (b) Per diem in lieu of subsistence of the supervising officer when away from his or her home station, as provided by law; (c)(1) The charge for the services of the supervising officer, which shall include administrative support, shall be computed at a rate per hour equal to 267 percent of the hourly rate of regular pay of a grade GS-11/4 employee, except that such services performed by a customs officer and subject to the provisions of the act of February 13, 1911, as amended (section 5, 36 Stat. 901, as amended (19 U.S.C. 267)), shall be calculated as provided in that act. (2) The charge for the services of the analyst, which shall include administrative and laboratory support, shall be computed at a rate per hour equal to 267 percent of the hourly rate of regular pay of a grade GS-12/4 employee. (3) The rate per hour equal to 267 percent of the equivalent hourly rate of regular pay of the supervising officer (GS-11/4) and the analyst (GS-12/4) is computed as follows: Table 1 to Paragraph (c)(3) Note: Ratio of equivalent gross annual number of working hours charged to Food and Drug appropriation to net number of annual working hours (4,512/1,688) = 267 pct. (d) The minimum charge for services of supervising officers shall be not less than the charge for 1 hour and time after the first hour shall be computed in multiples of 1 hour, disregarding fractional parts less than one-half hour. | |||
| 21:21:8.0.1.3.41.3.1.6 | 21 | Food and Drugs | I | J | 1005 | PART 1005—IMPORTATION OF ELECTRONIC PRODUCTS | C | Subpart C—Bonding and Compliance Procedures | § 1005.25 Service of process on manufacturers. | FDA | [38 FR 28630, Oct. 15, 1973, as amended at 53 FR 11254, Apr. 6, 1988; 65 FR 17137, Mar. 31, 2000; 72 FR 17401, Apr. 9, 2007; 73 FR 34860, June 19, 2008; 75 FR 16353, Apr. 1, 2010; 78 FR 18234, Mar. 26, 2013] | (a) Every manufacturer of electronic products, prior to offering such product for importation into the United States, shall designate a permanent resident of the United States as the manufacturer's agent upon whom service of all processes, notices, orders, decisions, and requirements may be made for and on behalf of the manufacturer as provided in section 536(d) of Subchapter C—Electronic Product Radiation Control of the Federal Food, Drug, and Cosmetic Act (formerly the Radiation Control for Health and Safety Act of 1968) (21 U.S.C. 360mm(d)) and this section. The agent may be an individual, a firm, or a domestic corporation. For purposes of this section, any number of manufacturers may designate the same agent. (b) A manufacturer designating an agent must address the designation to the Center for Devices and Radiological Health, 10903 New Hampshire Ave., Document Mail Center—WO66-G609, Silver Spring, MD 20993-0002. It must be in writing and dated; all signatures must be in ink. The designation must be made in the legal form required to make it valid and binding on the manufacturer under the laws, corporate bylaws, or other requirements governing the making of the designation by the manufacturer at the place and time where it is made, and the persons or person signing the designation shall certify that it is so made. The designation must disclose the manufacturer's full legal name and the name(s) under which the manufacturer conducts the business, if applicable, the principal place of business, and mailing address. If any of the products of the manufacturer do not bear his legal name, the designation must identify the marks, trade names, or other designations of origin which these products bear. The designation must provide that it will remain in effect until withdrawn or replaced by the manufacturer and shall bear a declaration of acceptance duly signed by the designated agent. The full legal name and mailing address of the agent must be stated. Until rejected by the Secretary, designations are binding on the … | |||
| 24:24:4.1.3.1.28.1.56.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | A | Subpart A—General Program Requirements | § 1005.101 Purpose. | HUD | This part implements the Section 184 Indian Housing Loan Guarantee Program (“Section 184 Program”) authorized under Section 184 of the Housing and Community Development Act of 1992, as amended, codified at 12 U.S.C. 1715z-13a. Section 184 authorizes the U.S. Department of Housing and Urban Development (HUD) to establish a loan guarantee program for American Indian and Alaskan Native families, Tribes, and tribally Designated Housing Entities (TDHE). The loans guaranteed under the Section 184 Program are used to construct, acquire, refinance, or rehabilitate one- to four-family standard housing located on Trust Land, land located in an Indian or Alaska Native area, and Section 184 Approved Program Area. These regulations apply to Lender Applicants, Holders, Direct and Non-Direct Guarantee Lenders, Servicers and Tribes seeking to or currently participating in the Section 184 Program. | |||||
| 24:24:4.1.3.1.28.1.56.2 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | A | Subpart A—General Program Requirements | § 1005.102 Severability. | HUD | Any provision of this part held to be invalid or unenforceable as applied to any action should be construed so as to continue to give the maximum effect to the provision permitted by law, unless such holding is that the provision of this part is invalid and unenforceable in all circumstances, in which event the provision should be severable from the remainder of this part and shall not affect the remainder thereof. | |||||
| 24:24:4.1.3.1.28.1.56.3 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | A | Subpart A—General Program Requirements | § 1005.103 Definitions. | HUD | The following definitions apply throughout this part: Acquisition Cost means the sum of the sales price or construction cost for a property and the cost of allowable repairs or improvements for the same property, less any unallowable sales concession(s). For the purposes of this definition, the term “sales concession” means an inducement to purchase a property paid by the seller to consummate a sales transaction. Amortization means the calculated schedule of repayment of a Section 184 Guaranteed Loan in full, through structured, regular payments of principal and interest within a certain time frame. Amortization Schedule means the document generated at the time of loan approval outlining the Borrower's schedule of payments of principal and interest for the life of the loan and the unpaid principal balance with and without the financed Upfront Loan Guarantee Fee, where applicable. Annual Loan Guarantee Fee means a fee calculated on an annual basis and paid in monthly installments by the Borrower, which is collected by the Servicer and remitted to HUD for the purposes of financing the Indian Housing Loan Guarantee Fund. BIA means the United States Department of Interior, Bureau of Indian Affairs. Borrower means every individual on the mortgage application. For the purposes of servicing the loan, Borrower refers to every original Borrower who signed the note and their heirs, executors, administrators, assigns, and approved substitute Borrowers. Borrowers include Tribes and TDHEs. Claim means the Servicer's application to HUD for payment of benefits under the Loan Guarantee Certificate for a Section 184 Guaranteed Loan. Conflict of Interest means any party to the transaction who has a direct or indirect personal business or financial relationship sufficient to appear that it may cause partiality or influence the transaction, or both. Date of Default means the day after the Borrower's obligation to make a loan payment or perform an obligation under the terms of the loan. Day means calendar day, exc… | |||||
| 24:24:4.1.3.1.28.2.56.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.201 Lender Applicant approval and participation. | HUD | (a) Approval types. The Section 184 Program has two types of Lender Applicant approvals: (1) Lender Applicants deemed approved by statute, as described in § 1005.203; or (2) Lender Applicants required to obtain secretarial approval under § 1005.205. (b) Lender Applicant participation. In accordance with § 1005.207, Lender Applicants must select a level of program participation and submit a completed application package, as prescribed by Section 184 Program Guidance, to participate in the Section 184 Program. | |||||
| 24:24:4.1.3.1.28.2.56.10 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.219 Other requirements. | HUD | (a) Tribal, Federal, and State law. All Holders, Direct Guarantee Lenders, Non-Direct Guarantee Lenders and Servicers must comply with all applicable Tribal, Federal, and State laws which impact mortgage-related activities. (b) Dual employment. All Non-Direct Guarantee Lenders and Direct Guarantee Lenders must require its employees to be exclusive employees, unless the Non-Direct Guarantee and Direct Guarantee Lender has determined that the employee's other employment, including any self-employment, does not create a Conflict of Interest. (c) Reporting requirements. All Direct Guarantee Lenders must submit reports in accordance with § 1005.903. Non-Direct Guarantee Lenders must submit required reports to their Sponsor, under this part or any requirements as prescribed by Section 184 Program Guidance. (d) Records retention. Records retention requirements are as follows: (1) Direct Guarantee Lenders must maintain an endorsement case binder for a period of three years beyond the date of satisfaction or maturity date of the Loan, whichever is sooner. However, where there is a payment of Claim, the endorsement case binder must be retained for a period of at least five years after the final Claim has been paid. Section 184 Program Guidance shall prescribe additional records retention time depending on the circumstances of the Claim. (2) All Direct Guarantee Lenders and Non-Direct Guarantee Lenders must retain personnel files of employees for one year beyond the employee's separation. (3) All Direct Guarantee Lenders and Non-Direct Guarantee Lenders must follow the applicable records retention requirements imposed by applicable Tribal, Federal, and State laws. (4) Direct Guarantee Lenders and Non-Direct Guarantee Lenders must maintain the quality control plan records for a period prescribed in § 1005.217(b)(4). (e) Minimum level of lending on Trust Land. (1) Direct Guarantee Lenders must actively market, Originate, underwrite, and close Loans on Trust Land. A Sponsor must ensure its Sponsored Entities … | |||||
| 24:24:4.1.3.1.28.2.56.11 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.221 Business change reporting. | HUD | (a) Within a timeframe as prescribed by Section 184 Program Guidance, Direct Guarantee Lenders shall provide written notification to HUD, in such a form as prescribed by Section 184 Program Guidance of: (1) All changes in the Direct Guarantee Lender or Sponsored Entity's legal structure, including, but not limited to, mergers, acquisitions, terminations, name, location, control of ownership, and character of business; (2) Staffing changes with senior leadership and Loan underwriters for Direct Guarantee Lenders and Sponsored Entities; and (3) Any sanctions by another supervising entity. (b) Failure to report changes within a reasonable timeframe prescribed in Section 184 Program Guidance may result in sanctions in accordance with §§ 1005.905 and 1005.907. | |||||
| 24:24:4.1.3.1.28.2.56.12 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.223 Direct Guarantee Lender Annual recertification requirements. | HUD | (a) All Direct Guarantee Lenders are subject to annual recertification on a date and form as prescribed by Section 184 Program Guidance. (b) With each annual recertification, Direct Guarantee Lenders must submit updated contact information, continued eligibility documentation and other pertinent materials as prescribed by Section 184 Program Guidance, including but not limited to: (1) A certification that it has not been refused a license or sanctioned by any Tribe, State, or Federal entity or other governmental authority related to any lending activity; (2) A certification that the Direct Guarantee Lender is in good standing with any Tribe, State, or Federal entity in which it will perform Direct Guarantee Lender activities; and (3) Renewal documents and certification of continued eligibility from an authorizing entity listed in § 1005.203. (4) Lenders approved under § 1005.205 must submit documentation supporting continued eligibility as prescribed by Section 184 Program Guidance. (c) All Sponsored Entities shall comply with this requirement and provide the annual recertification documentation directly to their Sponsor in accordance with their sponsorship agreement. (d) Direct Guarantee Lenders must also submit the following in accordance with Section 184 Program Guidance: (1) A certification that the Direct Guarantee Lender continues to meet the direct guarantee program eligibility requirements in accordance with § 1005.209; (2) A list of all Sponsored Entities with which the Direct Guarantee Lender has a sponsorship relationship, and a certification of their continued eligibility; and (3) All reports. (e) Direct Guarantee Lenders must retain documentation related to the continued eligibility of their Sponsored Entities for a period as prescribed by Section 184 Program Guidance. (f) Direct Guarantee Lenders may request an extension of the recertification deadline, but such a request must be presented to HUD at least 30 days before the recertification deadline. (g) HUD will review the annual recert… | |||||
| 24:24:4.1.3.1.28.2.56.13 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.225 Program ineligibility. | HUD | A Lender Applicant, Direct Guarantee Lender or Non-Direct Guarantee Lender may be deemed ineligible for Section 184 Program participation when HUD becomes aware that the entity or any officer, partner, director, principal, manager or supervisor, loan processor, loan underwriter, or loan originator of the entity was: (a) Suspended, debarred, under a limited denial of participation (LDP), or otherwise restricted under 2 CFR part 2424, or under similar procedures of any other Federal agency; (b) Indicted for, or have been convicted of, an offense that reflects adversely upon the integrity, competency, or fitness to meet the responsibilities of the Lender, Direct Guarantee Lender or Non-Direct Guarantee Lender to participate in the title I or title II programs of the National Housing Act, or Section 184 Program; (c) Found to have unresolved findings as a result of HUD or other governmental audit, investigation, or review; (d) Engaged in business practices that do not conform to generally accepted practices of prudent Lender Applicants, Direct or Non-Direct Guarantee Lenders or that demonstrate irresponsibility; (e) Convicted of, or have pled guilty or nolo contendere to, a felony related to participation in the real estate or mortgage loan industry during the 7-year period preceding the date of the application for licensing and registration, or at any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust or money laundering; (f) In violation of provisions of the Secure and Fair Enforcement Mortgage Licensing Act of 2008 (12 U.S.C. 5101, et seq. ) or any applicable provision of Tribal or State law; or (g) In violation of 12 U.S.C. 1715z-13a. | |||||
| 24:24:4.1.3.1.28.2.56.2 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.203 Lender Applicants deemed approved by statute. | HUD | The following Lender Applicants are deemed approved by statute: (a) Any mortgagee approved by HUD for participation in the single-family mortgage insurance program under title II of the National Housing Act; (b) Any Lender Applicant whose housing loan under chapter 37 of title 38, United States Code are automatically guaranteed pursuant to 38 U.S.C. 3702(d); (c) Any Lender Applicant approved by the U.S. Department of Agriculture to make Guaranteed Loans for single family housing under the Housing Act of 1949; and (d) Any other Lender Applicant that is supervised, approved, regulated, or insured by any other Federal agency of the United States, including but not limited to Community Development Financial Institutions. | |||||
| 24:24:4.1.3.1.28.2.56.3 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.205 Lender Applicants required to obtain Secretarial approval. | HUD | (a) Lender Applicant application process. Lender Applicants not meeting the requirements of § 1005.203 must apply to HUD for approval to participate in the Section 184 Program by submitting to HUD a completed application package, as prescribed by Section 184 Program Guidance. The application must establish that the Lender meets the following qualifications: (1) Business form. The Lender Applicant shall be a corporation or other chartered institution, a permanent organization having succession, or a partnership, organized under Tribal or State law. (i) Partnership requirements. A partnership must meet the following requirements: (A) Each general partner must be a corporation or other chartered institution consisting of two or more partners. (B) One general partner must be designated as the managing general partner. The managing general partner shall also comply with the requirements specified in paragraphs (a)(1)(i)(C) and (D) of this section. The managing general partner must have as its principal activity the management of one or more partnerships, all of which are mortgage lending institutions or property improvement or manufactured home lending institutions and must have exclusive authority to deal directly with HUD on behalf of each partnership. Newly admitted partners must agree to the management of the partnership by the designated managing general partner. If the managing general partner withdraws or is removed from the partnership for any reason, a new managing general partner shall be substituted, and HUD must be notified in writing within 15 days of the substitution. (C) The partnership agreement shall specify that the partnership shall exist for a minimum term of ten years, as required by HUD. All Section 184 Guaranteed Loans held by the partnership shall be transferred to a Lender Applicant approved under this part prior to the termination of the partnership. The partnership shall be specifically authorized to continue its existence if a partner withdraws. (D) HUD must be notified in writi… | |||||
| 24:24:4.1.3.1.28.2.56.4 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.207 Lender Applicant participation options. | HUD | (a) Levels of participation. Lender Applicants must choose one of two levels of program participation, a Non-Direct Guarantee Lender or a Direct Guarantee Lender and submit an application to participate on a form prescribed by Section 184 Program guidance. A participation level must be selected by the Lender Applicant and approved by HUD before initiating any Section 184 Program activities. (b) Non-Direct Guarantee Lender. (1) A Non-Direct Guarantee Lender originates loans. (2) A Non-Direct Guarantee Lender must be a Sponsored Entity under § 1005.213. (3) A Non-Direct Guarantee Lender must submit documentation supporting their eligibility as a Lender under § 1005.203 or approved by HUD under § 1005.205 and other documentation as prescribed by Section 184 Program Guidance to HUD through their Sponsor. (c) Direct Guarantee Lender. (1) A Direct Guarantee Lender may originate, underwrite, close, service, purchase, hold, and sell Section 184 Guaranteed Loans. (2) A Direct Guarantee Lender may sponsor Non-Direct Guarantee Lenders or other Direct Guarantee Lenders in accordance with § 1005.213. (3) To become a Direct Guarantee Lender, Lender Applicants must submit additional documentation as provided in § 1005.209 and obtain HUD approval under § 1005.211. | |||||
| 24:24:4.1.3.1.28.2.56.5 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.209 Direct Guarantee Lender application process. | HUD | (a) For purposes of this section, Lender Applicants shall include Non-Direct Guarantee Lenders, Lender Applicants and financial institutions approved by HUD to only service under § 1005.705. Lender Applicants may apply to HUD for approval to participate in the Section 184 Program as a Direct Guarantee Lender. Lenders Applicants must submit a completed application package in accordance with Section 184 Program Guidance. (b) To be approved as a Direct Guarantee Lender, a Lender Applicant must establish in its application that it meets the following qualifications: (1) Eligibility under § 1005.203 or HUD approval under § 1005.205, as evidenced by approval documents and most recent recertification documents. (2) Has a principal officer with a minimum of five years' experience in the origination of Loans guaranteed or insured by an agency of the Federal Government. HUD may approve a Lender applicant with less than five years of experience, if a principal officer has had a minimum of five years of managerial experience in the origination of Loans guaranteed or insured by an agency of the Federal Government. (3) Has on its permanent staff an underwriter(s) that meets the following criteria: (i) Two years' experience underwriting Loans guaranteed or insured by an agency of the Federal Government; (ii) Is an exclusive employee of the Lender Applicant; (iii) Authorized by the Lender Applicant to obligate the Lender Applicant on matters involving the origination of Loans; (iv) Is registered with HUD as an underwriter and continues to maintain such registration; and (v) Other qualifications as may be prescribed by Section 184 Program Guidance. (c) The Lender Applicant must submit a list of States or geographic regions in which it is licensed to operate, evidenced by submitting the active approvals for each State or region, and declare its interest in participating in the Section 184 Program. (d) The Lender Applicant must submit the quality control plan as required by its approving agency, modified for the Section … | |||||
| 24:24:4.1.3.1.28.2.56.6 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.211 Direct Guarantee Lender approval. | HUD | HUD shall review all documents submitted by a Lender Applicant under § 1005.209 and make a determination of conditional approval or denial. (a) Conditional approval. Conditional approval is signified by written notification from HUD that the Lender Applicant is a conditionally approved Direct Guarantee Lender under the Section 184 Program subject to the following conditions: (1) The Lender Applicant signs an agreement to comply with requirements of this part, and any applicable Tribal, Federal, or State law; and (2) If applicable, the Lender Applicant submits a list of entities it currently sponsors under another Federal Loan program and intends to sponsor in the Section 184 Program. This list shall include the following for each Sponsored Entity: (i) Contact information, including mailing address, phone number, and email address for corporate officers. (ii) The Federal tax identification number (TIN) for the Sponsored Entity, and (iii) Names and Nationwide Multistate Licensing System and Registry numbers for all Loan originators and processors. (3) The Lender Applicant certifies it monitors and provides oversight of Sponsored Entities to ensure compliance with this part, and any applicable Tribal, Federal, or State law. (4) The Lender Applicant must, for each underwriter, submit ten test endorsement case binders, or a number prescribed by Section 184 Program Guidance, which meet the requirements of subparts D and E. Unsatisfactory performance by an underwriter during HUD's test case review may constitute grounds for denial of approval to participate as a Direct Guarantee Lender. If participation is denied, such denial is effective immediately and may be appealed in accordance with the procedures set forth in § 1005.909; and (5) The Lender Applicant will operate only in accordance with the Lender's licensing in Section 184 Approved Program Areas. (b) Final approval. Final approval is signified by written notification from HUD that the Lender Applicant is an approved Direct Guarantee Lender under the… | |||||
| 24:24:4.1.3.1.28.2.56.7 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.213 Non-Direct Guarantee Lender application, approval, and Direct Guarantee Lender sponsorship. | HUD | (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. | |||||
| 24:24:4.1.3.1.28.2.56.8 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.215 Direct Guarantee Lender annual reporting requirements. | HUD | Direct Guarantee Lenders must submit an annual report on Loan performance, including reporting on all its Sponsored Entities, where applicable, along with any other required reporting under § 1005.903 and other such reports as prescribed by Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.2.56.9 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | B | Subpart B—Lender Eligibility and Requirements | § 1005.217 Quality control plan. | HUD | (a) A quality control plan sets forth a Lender Applicant, Direct Guarantee Lender, or Non-Direct Guarantee Lender's procedures for ensuring the quality of the Direct Guarantee or Non-Direct Guarantee Lender's Section 184 Guaranteed Loan Origination, underwriting, closing, and/or servicing, as applicable. The purpose of the quality control plan is to ensure the Lender Applicant, Direct Guarantee and non-Direct Guarantee Lender's compliance with Section 184 Program requirements and protect HUD and the entities from unacceptable or unreasonable risks. A Lender Applicant, Direct Guarantee Lender, and Non-Direct Guarantee Lender must adopt and implement a quality control plan. (b) A quality control plan must: (1) Be maintained and updated, as needed, to comply with all applicable Section 184 Program requirements. (2) Cover all policies and procedures, whether performed by the Lender or an agent, to ensure full compliance with all Section 184 Program requirements. (3) Provide the Lender with information sufficient to adequately monitor and oversee the Lender's compliance and measure performance, as it relates to the Lender's Section 184 Guaranteed Loan activity. (4) Require the Lender Applicant, Direct Guarantee or Non-Direct Guarantee Lender to retain all quality control plan related documentation, including selection criteria, review documentation, findings, and actions to mitigate findings, for a period of three years from initial quality control review, or from the last action taken to mitigate findings, whichever is later. (5) Allow the Lender Applicant, Direct Guarantee or Non-Direct Guarantee Lender to use employees or agents to perform the quality control functions, so long as they do not directly participate in any Loan administration processes as outlined in Section 184 Program Guidance. (6) Ensure the Lender Applicant, Direct Guarantee or Non-Direct Guarantee Lender assumes full responsibility for any agent's conduct of quality control reviews. (7) Require the Lender Applicant, Direct Guarantee or No… | |||||
| 24:24:4.1.3.1.28.3.56.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.301 Tribal legal and administrative framework. | HUD | (a) Tribal requirements. (1) A Tribe seeking to allow eligible Borrowers to place a mortgage lien on Trust Land under the Section 184 Program must apply to HUD for approval to participate in the program. (2) Tribes electing to make Trust Land available under the Section 184 Program must provide to HUD a legal and administrative framework for leasing, foreclosure, and eviction on Trust Land to protect the interests of the Borrower, Tribe, Direct Guarantee Lender, and HUD. (3) When Tribes are notified of the Borrower's default in accordance with § 1005.501(j) or when the Tribe receives notice of Tribal right of first refusal pursuant to § 1005.759, Tribes must assist, where practical, in facilitating loss mitigation and disposition, such as assisting with identifying potential purchasers or identifying Tribal members who may wish to assume the loan, encouraging Borrower to execute Lease-in-Lieu, and providing other general assistance to the Borrower. (4) Tribes must notify HUD in writing when the Tribe determines a property is vacant or abandoned and the property is not secured by the Servicer or HUD. (b) Legal and administrative framework. A Tribe may enact legal procedures through Tribal council resolution or any other recognized legislative action. These procedures must be legally enforceable and include the following requirements: (1) Foreclosure and assignment. When a Borrower is in default, and is unwilling or unable to successfully complete loss mitigation in accordance with subpart G of this part; and Servicer either completes First Legal Action against the Borrower, or assigns the loan to HUD after completing Tribal first right of refusal in accordance with § 1005.759: (i) The Tribe must demonstrate that a foreclosure will be processed through the legal systems having jurisdiction over the Section 184 Guaranteed Loan. A foreclosure must be held in a court of competent jurisdiction, which includes Federal courts, when HUD forecloses on the property. (ii) Foreclosure ordinances must allow for th… | |||||
| 24:24:4.1.3.1.28.3.56.2 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.303 Tribal application. | HUD | A Tribe shall submit an application on a form prescribed by HUD. The application must include a copy of the Tribe's foreclosure, eviction, lease, priority lien ordinances, all cross-referenced ordinances in those sections, and any other documents in accordance with Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.3.56.3 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.305 Approval of Tribal application. | HUD | HUD shall review applications under § 1005.303 and where all requirements of § 1005.301 are met, HUD shall provide written notification of the approval of the Tribe to participate in the Section 184 Program. If HUD determines the application is incomplete, or the documents submitted do not comply with the requirements of this subpart or any process prescribed in Section 184 Program Guidance, HUD will work with the Tribe to cure the deficiencies before there is a denial of the application. | |||||
| 24:24:4.1.3.1.28.3.56.4 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.307 Tribal annual recertification. | HUD | A Tribe shall recertify annually to HUD whether it continues to meet the requirements of this subpart, on a form and by a deadline prescribed by Section 184 Program Guidance. Recertification shall include Tribal certification of no changes to the Tribe's foreclosure, eviction, lease, and lien priority ordinances. The Tribe shall provide any updated contact information and similar information that may be required under Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.3.56.5 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.309 Tribal duty to report proposed changes and actual changes. | HUD | Based on the timeframe as prescribed by Section 184 Program Guidance, the Tribe must notify HUD of any proposed changes in the Tribe's foreclosure, eviction, lease, and lien priority ordinances or contact information. Tribes shall obtain HUD approval of the changes in the foreclosure, eviction, lease, and lien priority ordinances. HUD will provide written notification to the Tribe of HUD's review of the proposed ordinance changes and advise the Tribe whether the updated documents meet the requirements of this subpart. | |||||
| 24:24:4.1.3.1.28.3.56.6 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.311 HUD notification of any lease default. | HUD | In cases where the lessee is in default under the lease for any reason, the lessor shall provide written notification to HUD within 30 days of the lease default. | |||||
| 24:24:4.1.3.1.28.3.56.7 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | C | Subpart C—Lending on Trust Land | § 1005.313 Tribal reporting requirements. | HUD | The Tribe shall provide accurate reports and certifications to HUD, as may be prescribed by Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.4.56.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.401 Eligible Borrowers. | HUD | (a) Eligible Borrowers. Eligible Borrowers are Indian Families, Tribes, or TDHEs. (b) Documentation. Indian Family Borrowers must document their status as American Indian or Alaska Native through evidence as prescribed by Section 184 Program Guidance. (c) Limitation on the number of loans. An Indian Family Borrower is limited to one Section 184 Guaranteed Loan, for primary residence, at a time unless the Indian Family Borrower is a non-occupant co-Borrower on one other Section 184 Guaranteed Loan. An Indian Family Borrower and/or non-occupant co-Borrower must meet all other applicable requirements of this subpart and any guidance provided in Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.4.56.2 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.403 Principal Residence. | HUD | (a) Principal Residence. Means the dwelling where the Indian Family Borrower maintains as a permanent place of abode. An Indian Family Borrower may have only one Principal Residence at any one time. (b) Occupancy requirement. An Indian Family Borrower must occupy the property as a Principal Residence. Borrowers who are a TDHE or a Tribe do not need to occupy the property as a Principal Residence and are not subject to the occupancy requirement. (c) Non-occupant co-Borrower. A co-Borrower who does not occupy the property as a principal resident is permitted and is not subject to paragraphs (a) and (b) of this section. A non-occupant co-Borrower must be related by blood, or an unrelated individual who can document evidence of a family-type, longstanding, and substantial relationship not arising out of the loan transaction. A non-occupant co-Borrower must meet all other applicable requirements of this subpart and any requirements as may be established in Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.4.56.3 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.405 Borrower residency status. | HUD | [89 FR 20056, Mar. 20, 2024, as amended at 90 FR 42706, Sept. 4, 2025] | (a) An eligible Borrower who is an Indian must be: (1) A U.S. citizen; or (2) A lawful permanent resident alien. (b) Documentation must be provided to the Direct Guarantee Lender to support lawful residency status as defined in the Immigration and Nationality Act, codified at 8 U.S.C. 1101, et seq. | ||||
| 24:24:4.1.3.1.28.4.56.4 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.407 Relationship of income to loan payments. | HUD | (a) Adequacy of Borrower gross income. (1) All Borrowers must establish, in accordance with Section 184 Program Guidance, that their income is and will be adequate to meet: (i) The periodic payments required by the loan to be guaranteed by the Section 184 Program; and (ii) Other long-term obligations. (2) In cases where there is a non-occupant Co-Borrower, the occupying Borrower must meet a minimum qualifying threshold, in accordance with Section 184 Program Guidance. (b) Non-discrimination. Determinations of adequacy of Borrower income under this section shall be made in a uniform manner without regard to age, race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, disability, marital status, source of income of the Borrower, location of the property. | |||||
| 24:24:4.1.3.1.28.4.56.5 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.409 Credit standing. | HUD | (a) A Borrower must have a general credit standing satisfactory to HUD. A Direct Guarantee Lender must not use a Borrower's credit score when evaluating the Borrower's credit worthiness. The Direct Guarantee Lender must analyze the Borrower's credit history and payment pattern to determine credit worthiness. (b) If a Borrower had a previous default on a Section 184 Guaranteed Loan which resulted in a Claim payment by HUD, the Borrower shall be subject to a 7-year waiting period or other period as may be prescribed by Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.4.56.6 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.411 Disclosure and verification of Social Security and Employer Identification Numbers or Tax Identification Number. | HUD | All Borrowers must meet applicable requirements for the disclosure and verification of Social Security, Employer Identification Numbers, or Tax Identification Numbers. | |||||
| 24:24:4.1.3.1.28.4.57.10 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.419 Requirements for standard housing. | HUD | (a) General standards. Each dwelling unit located on a property guaranteed under the Section 184 Program must: (1) Be decent, safe, sanitary, and modest in size and design; (2) Conform with International Building Code, applicable general construction standards for the region, or other code as prescribed by Section 184 Program Guidance; (3) Contain a heating system that: (i) Has the capacity to maintain a minimum temperature in the dwelling of 65 degrees Fahrenheit during the coldest weather in the area; (ii) Is safe to operate and maintain; (iii) Delivers a uniform distribution of heat; and (iv) Conforms to any applicable Tribal heating code, or if there is no applicable Tribal code, an appropriate local, State, or International Building Code, or other code as prescribed by Section 184 Program Guidance. (4) Contains a plumbing system that: (i) Uses a properly installed system of piping; (ii) Includes a kitchen sink and partitional bathroom with lavatory, toilet, and bath or shower; and (iii) Uses water supply, plumbing, and sewage disposal systems that conform to any applicable Tribal building code or, if there is no applicable Tribal code, the minimum building standards established by the appropriate local or State code, or the International Building Code, or other code as prescribed by Section 184 Program Guidance; (5) Contain an electrical system using wiring and equipment properly installed to safely supply electrical energy for adequate lighting and for operation of appliances that conforms to any applicable Tribal code or, if there is no applicable Tribal code, an appropriate local, State, or International Building Code, or other code as prescribed by Section 184 Program Guidance; (6) Meets minimum square footage requirements and be not less than: (i) 570 square feet in size, if designed for a family of not more than 4 persons; (ii) 850 square feet in size, if designed for a family of not less than 5 and not more than 7 persons; (iii) 1020 square feet in size, if designed for a family of n… | |||||
| 24:24:4.1.3.1.28.4.57.11 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.421 Certification of appraisal amount. | HUD | A Section 184 Guaranteed Loan must be accompanied by a sales contract satisfactory to HUD, executed by the seller, whereby the seller agrees that before any sale of the property, the seller will deliver to the purchaser of the property a certification of the appraisal, in a form satisfactory to HUD, setting forth the amount of the appraised value of the property. | |||||
| 24:24:4.1.3.1.28.4.57.12 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.423 Legal Restrictions on Conveyance. | HUD | (a) Legal Restrictions on Conveyance means any provision in any legal instrument, law, or regulation applicable to the Borrower or the mortgaged property, including but not limited to a lease, deed, sales contract, declaration of covenants, declaration of condominium, option, right of first refusal, will, or trust agreement, that attempts to cause a conveyance (including a lease) made by the Borrower to: (1) Be void or voidable by a third party; (2) Be the basis of contractual liability of the Borrower for breach of an agreement not to convey, including rights of first refusal, pre-emptive rights or options related to Borrower efforts to convey; (3) Terminate or subject to termination all or a part of the interest held by the Borrower in the property if a conveyance is attempted; (4) Be subject to the consent of a third party; (5) Be subject to limits on the amount of sales proceeds retainable by the seller; or (6) Be grounds for acceleration of the Guaranteed Loan or increase in the interest rate. (b) Section 184 Guaranteed Loans shall not be subject to any Legal Restrictions on Conveyance, except for restrictions in paragraphs (b)(1) through (4) of this section: (1) A lease or any other legal document that restricts the assignment of interest in properties held in trust or otherwise restricted to an eligible Indian Family. (2) A mortgage funded through tax-exempt bond financing and includes a due-on-sale provision in a form approved by HUD that permits the Direct Guarantee Lender to accelerate a mortgage that no longer meets Federal requirements for tax-exempt bond financing or for other reasons acceptable to HUD. A mortgage funded through tax-exempt bond financing shall comply with all form requirements prescribed under this subpart and shall contain no other provisions designed to enforce compliance with Federal or State requirements for tax-exempt bond financing. (3) A mortgaged property subject to protective covenants which restrict occupancy by, or transfer to, persons of a defined population if:… | |||||
| 24:24:4.1.3.1.28.4.57.13 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.425 Rental properties. | HUD | (a) When a Borrower is an Indian Family. A Section 184 Guaranteed Loan may be used to purchase, construct, rehabilitate, or refinance a property, which may contain up to four dwelling units. The Borrower must occupy one unit on the property as a Principal Residence and may rent the additional units. (b) When the Borrower is a Tribe or TDHE. There is no limit to the number of properties a Tribe or TDHE may purchase or own with a Section 184 Guaranteed Loan(s) on or off Trust Land. However, the Tribe or TDHE must meet all applicable Section 184 program requirements. | |||||
| 24:24:4.1.3.1.28.4.57.14 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.427 Refinancing. | HUD | (a) Refinance eligibility. HUD may permit a Borrower to refinance any qualified mortgage, including an existing Section 184 Guaranteed Loan, so long as the Borrower and property meet all Section 184 Program requirements. (b) Types of refinances. HUD may guarantee a Rate and Term refinance, a Streamline refinance, or a Cash-Out refinance, consistent with paragraphs (c) through (f) of this section. (c) General requirements. All types of refinances are subject to the following requirements: (1) The term of the refinancing may not exceed a term of 30 years. (2) The Borrower must have a payment history on the existing mortgage that is acceptable to HUD. (3) The Direct Guarantee Lender may not require a minimum principal amount to be outstanding on the loan secured by the existing mortgage. (4) If an Up-Front Loan Guarantee Fee was financed as part of the existing Section 184 Guaranteed Loan, no refund will be given. However, the maximum amount of the refinancing loan computed in accordance with § 1005.443 may be increased by the amount of the Up-Front Loan Guarantee Fee associated with the new refinancing loan and exceed the applicable Section 184 Guaranteed Loan limit as established by HUD for an area pursuant to § 1005.441. (5) The new loan must meet all other applicable Section 184 requirements, including maximum loan to value ratios, as prescribed by Section 184 Program Guidance. (d) Rate and Term Refinance Transaction. (1) Rate and term refinance is the refinancing of an existing mortgage for the purpose of changing the interest rate or term, or both, of a loan without advancing new funds on the loan, with the exception of allowable closing costs. (2) A Rate and Term Refinance Transaction must meet the following requirements: (i) The new loan must be in an amount that does not exceed the lesser of the original principal amount of the existing mortgage; or the sum of the unpaid principal balance of the existing mortgage plus loan closing charges and allowable fees approved by HUD. (ii) The new l… | |||||
| 24:24:4.1.3.1.28.4.57.15 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.429 Eligibility of Loans covering manufactured homes. | HUD | A Loan covering a manufactured home (as defined in 24 CFR part 3280), shall be eligible for a Section 184 Guaranteed Loan when the following requirements have been met: (a) For manufactured homes located on a fee simple property. (1) A manufactured home, as erected on the property, must be installed in accordance with 24 CFR part 3286; conform with property standards under § 1005.419; and shall have been constructed in accordance with 24 CFR part 3280, as evidenced by the certification label. (2) The Loan shall cover the manufactured home(s) and site, shall constitute a loan on a property, and classified and taxed as real estate, as applicable. (3) In the case of a manufactured home which has not been permanently erected on a site for more than one year prior to the date of the application for the Loan Guarantee Certificate: (i) A manufactured home shall be erected on a site-built permanent foundation and shall be permanently attached thereto by anchoring devices adequate for all loads in accordance with 24 CFR part 3286. The towing hitch or running gear, which includes axles, brakes, wheels, and other parts of the chassis that operate only during transportation, shall have been removed. The finished grade level beneath the manufactured home shall be at least two feet above the 100-year return frequency flood elevation. The site, site improvements, and all other features of the property not addressed by the Manufactured Home Construction and Safety Standards shall meet or exceed applicable requirements of the Minimum Property Standards (MPS). (ii) The space beneath a manufactured home shall be enclosed by continuous foundation-type construction designed to resist all forces to which it is subject without transmitting forces to the building superstructure. The enclosure shall be adequately secured to the perimeter of the manufactured home and be constructed of materials that conform to MPS requirements for foundations. (iii) A manufactured home shall be braced and stiffened before it leaves the factory to … | |||||
| 24:24:4.1.3.1.28.4.57.16 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.431 Acceptance of individual residential water purification. | HUD | If a property does not have access to a continuing supply of safe and potable water as part of its plumbing system without the use of a water purification system, the requirements of this section apply. The Direct Guarantee Lender must provide appropriate documentation with the submission for a Section 184 Guaranteed Loan to address each of the requirements of this section. (a) Equipment. Water purification equipment must be approved by a nationally recognized testing laboratory acceptable to Tribal, State, or local health authority. (b) Certification by Tribal, State, or local health authority. A Tribal, State, or local health authority certification must be submitted to HUD, which certifies that a point-of entry or point-of-use water purification system is used for the water supply, the treatment equipment meets the requirements of the Tribal, State, or local health authority, and has been determined to meet Tribal, State, or local health authority quality standards for drinking water. If neither Tribal, State, nor local health authority standards are applicable, then quality shall be determined in accordance with standards set by the Environmental Protection Agency (EPA) pursuant to the Safe Drinking Water Act. (EPA standards are prescribed in the National Primary Drinking Water requirements, 40 CFR parts 141 and 142.) (c) Borrower notices and certification. (1) The prospective Borrower must have received written notification, when the Borrower signs a sales contract, that the property does not have access to a continuing supply of safe and potable water without the use of a water purification system to remain safe and acceptable for human consumption. (2) Prior to final ratification of the sales contract, the Borrower must have received: (i) A water safety report identifying specific contaminants in the water supply serving the property, and the related health hazard arising from the presence of those contaminants. (ii) A written good faith estimate of the maintenance and replacement costs of the … | |||||
| 24:24:4.1.3.1.28.4.57.17 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.433 Builder warranty. | HUD | (a) Applications relating to proposed construction must be accompanied by an agreement in a form satisfactory to HUD, executed by the seller or builder or such other person as HUD may require, and agreeing that in the event of any sale or conveyance of the property, within a period of one year beginning with the date of initial occupancy, the seller, builder, or such other person will, at the time of such sale or conveyance, deliver to the purchaser or owner of such property a warranty in a form satisfactory to HUD, warranting that the property is constructed in substantial conformity with the plans and specifications (including amendments thereof or changes and variations therein which have been approved in writing by HUD) on which HUD has based on the valuation of the property. (b) Such agreement must provide that upon the sale or conveyance of the property and delivery of the warranty, the seller, builder, or such other person will promptly furnish HUD with a confirmed copy of the warranty, establishing by the purchaser's receipt thereon that the original warranty has been delivered to the purchaser in accordance with this section. | |||||
| 24:24:4.1.3.1.28.4.57.7 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.413 Acceptable title. | HUD | To be considered acceptable title, a Section 184 Guaranteed Loan must be secured by an interest in real estate held in fee simple or other property interest on Trust Land. Where the title evidences a lease that is used in conjunction with the Section 184 Guaranteed Loan on Trust Land, the lease must comply with relevant provisions of § 1005.301. | |||||
| 24:24:4.1.3.1.28.4.57.8 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.415 Sale of property. | HUD | (a) Owner of Record requirement. The property must be or have been purchased from the Owner of Record and the transaction may not involve or had not involved any sale or assignment of the sales contract. (b) Supporting documentation. The Direct Guarantee Lender shall obtain and submit to HUD documentation verifying that the seller is the Owner of Record as part of the application for a loan guarantee under the Section 184 Program. Documentation must conform with the requirements set out in Section 184 Program Guidance. This documentation may include, but is not limited to, a property ownership history report from the State or local government, a copy of the recorded deed or other HUD approved document issued by the Tribe, as provided by Section 184 Program Guidance and the document evidences the property interest rights, as permitted by this subpart from the seller, or other documentation (such as a copy of a property tax bill, title commitment, or binder) demonstrating the seller's ownership. (c) Time restrictions on re-sales —(1) General. The eligibility of a property for a Loan guaranteed by HUD is dependent on the time that has elapsed between the date the seller acquired the property (based upon the date of settlement) and the date of execution of the sales contract that will result in the HUD guarantee (the re-sale date). The Direct Guarantee Lender shall obtain documentation verifying compliance with the time restrictions described in this paragraph and must submit this documentation to HUD as part of the application for the Section 184 Guaranteed Loan, in accordance with § 1005.501. (2) Re-sales occurring 90 days or less following acquisition. If the re-sale date is 90 days or less following the date of acquisition by the seller, the property is not eligible under the Section 184 Program. (3) Re-sales occurring between 91 days and 180 days following acquisition. (i) If the re-sale date is between 91 days and 180 days following acquisition by the seller, the property is generally eligible un… | |||||
| 24:24:4.1.3.1.28.4.57.9 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.417 Location of property. | HUD | At the time a loan is guaranteed, the property must be for residential use under Tribal, State, or local law and be located within a Section 184 Approved Program Area. | |||||
| 24:24:4.1.3.1.28.4.58.18 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.435 Eligible collateral. | HUD | A Section 184 Guaranteed Loan may be secured by any collateral authorized under existing Federal law or applicable State or Tribal law. The collateral must be sufficient to cover the amount of the loan, as determined by the Direct Guarantee Lender and approved by HUD. Improvements on Trust Lands may be considered as eligible collateral. Trust Land cannot be considered as part of the eligible collateral. | |||||
| 24:24:4.1.3.1.28.4.58.19 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.437 Loan provisions. | HUD | (a) Loan form. (1) The Loan shall be in a form meeting the requirements of HUD. HUD may prescribe loan closing documents. For each case in which HUD does not prescribe loan closing documents, HUD shall require specific language in the loan which shall be uniform for every loan. HUD may also prescribe the language or substance of additional provisions for all loans, as well as the language or substance of additional provisions for use only in particular jurisdictions. (2) Each Loan shall also contain any provisions necessary to create a valid and enforceable security interest under Tribal law or the laws of the jurisdiction in which the property is located. (b) Loan multiples. A Loan, in whole dollars, shall be in an amount not to exceed the maximum principal loan amount (as calculated under § 1005.443) for the area where the property is located. (c) Payments. The Loan payments shall: (1) Be due on the first of the month; (2) Contain complete Amortization provisions in accordance with § 1005.453 and an Amortization period not in excess of the term of the loan; and (3) Provide for payments to principal and interest to begin no later than the first day of the month, 60 days after the date the loan is executed. For closings taking place within the first seven days of the month, interest credit is acceptable. (d) Maturity. The Loan shall have a repayment term of not more than the maximum period as approved by HUD and fully amortized. (e) Property standards. The Loan must be a first lien upon the property that conforms with the requirements for standard housing under § 1005.419. (f) Disbursement. The entire principal amount of the Loan must have been disbursed to the Borrower or to the Borrower's creditors for the Borrower's account and with the Borrower's consent. (g) Disbursement for construction advances. HUD may guarantee loans from which advances will be made during construction when all applicable Section 184 Program requirements are met and all the following conditions are satisfied: (1)… | |||||
| 24:24:4.1.3.1.28.4.58.20 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.439 Loan lien. | HUD | (a) First lien. A Borrower must establish that, after the loan offered for guarantee has been recorded, the property will be free and clear of all liens other than such loan, and that there will not be outstanding any other unpaid obligations contracted in connection with the loan transaction or the purchase of the property, except obligations that are secured by property or collateral owned by the Borrower independently of the property. (b) Junior lien. The property may be subject to a junior lien held by a Tribe, Direct Guarantee Lender, TDHE, Federal, State, local government, or an Eligible Nonprofit Organization. Where applicable, a junior lien when intended to be utilized in conjunction with a Section 184 loan, must be evaluated in the Section 184 underwriting process by the Direct Guarantee underwriter in accordance with Section 184 Program Guidance. In cases where a junior lien is recorded after the Section 184 Loan Guarantee Certificate is issued, the junior lien must comply with this section. (1) Periodic payments, if any, shall be collected monthly and be substantially the same; (2) The monthly Loan payments for the Section 184 Guaranteed Loan and the junior lien shall not exceed the Borrower's reasonable ability to pay, as determined by HUD; (3) The sum of the principal amount of the Section 184 Guaranteed Loan and the junior lien shall not exceed the loan-to-value limitation applicable to the Section 184 Program, and shall not exceed the loan limit for the area, except as otherwise permitted by HUD; (4) The repayment terms shall not provide for a balloon payment before ten years unless approved by HUD; (5) The junior lien must become due and payable on sale or refinancing of the secured property covered by the Section 184 Guaranteed Loan, unless otherwise approved by HUD; and (6) The junior lien shall contain a provision permitting the Borrower to prepay the junior lien in whole or in part at any time and shall not require a prepayment penalty. (c) Junior liens to reduce Borrower monthly … | |||||
| 24:24:4.1.3.1.28.4.58.21 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.441 Section 184 Guaranteed Loan limit. | HUD | The Section 184 Guaranteed Loan limit is the level set by HUD for the Section 184 Approved Program Area and is based upon the location of the property. The limit that is in effect on the date the Section 184 Program case number is issued in accordance with § 1005.445 shall apply, regardless of the closing date. The limit shall be revised periodically by HUD and published in Section 184 Program guidance. | |||||
| 24:24:4.1.3.1.28.4.58.22 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.443 Loan amount. | HUD | (a) Minimum required investment. The Borrower is required to make a minimum investment in the property. This investment must come from the Borrower's own funds, gifts, or Tribal, State, or local funds awarded to the Borrower. The minimum investment in the property is the difference between the sales price and the base loan amount. (b) Calculating base loan amount. (1) The base loan amount is determined by calculating: (i) 97.75 percent of the appraised value of the property or the Acquisition Cost, whichever is less; or (ii) 98.75 percent of the lesser of the appraised value or sales price when the appraised value or sales price is $50,000 or less. (2) The base loan amount cannot exceed the Section 184 Guaranteed Loan limits established under § 1005.441. (c) Maximum principal loan amount. The maximum principal loan amount is the base loan amount and the Up-Front Loan Guarantee Fee. The Section 184 Guaranteed Loan limit may only be exceeded by the amount of the Up-Front Loan Guarantee Fee. (d) Minimum principal loan amount. A Direct Guarantee Lender may not require a minimum loan amount for a Section 184 Guaranteed Loan. | |||||
| 24:24:4.1.3.1.28.4.58.23 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.445 Case numbers. | HUD | (a) Section 184 case numbers may only be obtained by a Direct Guarantee Lender. (b) To obtain a case number, the Direct Guarantee Lender must: (1) Have an active loan application from a Borrower(s) with an identified property; (2) Provide evidence of borrower eligibility, as prescribed in § 1005.401(a); (3) Verify that the property is located in a Section 184 Approved Program Area; (4) Confirm that the Loan does not exceed the Section 184 Loan limit; and (5) Submit Loan specific information as prescribed in Section 184 Program Guidance. (c) Case numbers are automatically cancelled after a period as identified in Section 184 Program Guidance, unless a Firm Commitment is issued, or an extension is granted by HUD in accordance with Section 184 Program Guidance prior to the expiration of the case number. | |||||
| 24:24:4.1.3.1.28.4.58.24 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.447 Maximum age of Loan documents. | HUD | Documents reviewed at underwriting and at loan closing may not be older than the 120 days, or another time period prescribed by Section 184 Program Guidance. Documents whose validity for underwriting purposes is not affected by the passage of time, such as divorce decrees or tax returns, are not subject to time limitations. | |||||
| 24:24:4.1.3.1.28.4.58.25 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.449 Qualified mortgage. | HUD | A Section 184 Guaranteed Loan, except for mortgage transactions exempted under 15 U.S.C. 1639c(b)(3)(ii), is afforded safe harbor as a qualified mortgage that meets the ability-to-repay requirements in 15 U.S.C. 1639c(a). | |||||
| 24:24:4.1.3.1.28.4.58.26 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.451 Agreed interest rate. | HUD | The loan shall bear interest at the rate agreed upon by the Direct Guarantee Lender and the Borrower and determined by HUD to be reasonable. The agreed upon interest rate may not exceed the rate generally charged in the area for mortgage loans not guaranteed or insured by any agency or instrumentality of the Federal Government, or a rate determined by HUD, whichever is lower. The agreed upon interest rate must not take into consideration a Borrower's credit score in accordance with § 1005.409 and must not be based on risk-based pricing. | |||||
| 24:24:4.1.3.1.28.4.58.27 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.453 Amortization provisions. | HUD | The loan must contain complete Amortization provisions satisfactory to HUD, requiring payments due on the first day of each month by the Borrower. The sum of the principal and interest payments in each month shall be substantially the same. | |||||
| 24:24:4.1.3.1.28.4.59.28 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.455 Direct guarantee underwriting. | HUD | (a) Underwriter due diligence. A Direct Guarantee Lender shall exercise the same level of care which it would exercise in obtaining and verifying information for a Loan in which the Direct Guarantee Lender would be entirely dependent on the property as security to protect its investment. Direct Guarantee Lender procedures that evidence such due diligence shall be incorporated as part of the quality control plan required under § 1005.219. Compliance with HUD-prescribed underwriting guidelines shall be the minimum standard of due diligence in underwriting the Loans. Failure to comply with HUD-prescribed underwriting guidelines may result in sanctions in accordance with §§ 1005.905 and 1005.907. (b) Evaluating the Borrower(s) qualifications. The Direct Guarantee Lender shall evaluate the Borrower's credit characteristics, the adequacy and stability of the Borrower's income to meet the periodic payments under the loan and all other obligations, the adequacy of the Borrower's available assets to close the transaction, the Borrower's management capacity and grant performance, if applicable, and render an underwriting decision in accordance with applicable regulations, policies, and procedures. (c) Assumption. Applications for the assumption of an existing Section 184 Guaranteed Loan shall be underwritten using the same Borrower eligibility and underwriting standards in accordance with this subpart. | |||||
| 24:24:4.1.3.1.28.4.59.29 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.457 Appraisal. | HUD | (a) A Direct Guarantee Lender shall have the property appraised in accordance with all applicable Federal requirements, including but not limited to the Uniform Standards of Professional Appraisal Practice, Equal Credit Opportunity Act (15 U.S.C. 1691-1691f), and the Fair Housing Act (42 U.S.C. 3601-19). HUD may establish alternative requirements to Uniform Standards of Professional Appraisal Practice, when necessitated by location and availability of an appraiser, and publish such alternative requirements in Section 184 Program Guidance. (b) A Direct Guarantee Lender must select an appraiser identified on the Federal Housing Administration Appraiser Roster, compiled in accordance with 24 CFR part 200, subpart G. The Direct Guarantee Lender shall not discriminate on the basis of race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, national origin, or age in the selection of an appraiser. HUD may establish guidance regarding the alternatives to the use of an appraiser identified on the Federal Housing Administration Appraiser Roster, when necessitated by a rural or remote location and the availability of an appraiser. (c) A Direct Guarantee Lender and an appraiser must ensure that an appraisal and related documentation satisfy Federal Housing Administration, Fannie Mae, or Freddie Mac appraisal requirements, and both bear responsibility for the quality of the appraisal in satisfying such requirements. (d) A Direct Guarantee Lender that submits, or causes to be submitted, an appraisal or related documentation that does not satisfy requirements under paragraphs (a) through (d) of this section may be subject to sanctions by HUD pursuant to §§ 1005.905 and 1005.907. (e) The validity period of appraisals is 180 days or as provided by Section 184 Program Guidance. (f) Where the initial appraisal report will be more than 180 days at closing, an appraisal update may be performed to extend the appraisal validity period prior to closing, in accordance with Section … | |||||
| 24:24:4.1.3.1.28.4.59.30 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.459 Loan submission to HUD for endorsement. | HUD | (a) Deadline for submission. Within 60 days after the date of closing the loan, a Direct Guarantee Lender must submit an endorsement case binder to HUD, in accordance with § 1005.503. (b) Late submission. If the endorsement case binder is submitted past 60 days, the Direct Guarantee Lender must include, as part of the case binder, a late endorsement request with supporting documentation, affirming: (1) The loan is not currently in default; (2) All escrow accounts for taxes, hazard insurance, and monthly Loan Guarantee Fees are current; (3) Neither the Direct Guarantee Lender nor Servicer provided the funds to bring or keep the loan current or to bring about the appearance of acceptable payment history; and (4) Notwithstanding paragraph (b)(3) of this section, with prior approval from HUD, Direct Guarantee Lender or Servicer may provide funds to bring or keep the loan current. | |||||
| 24:24:4.1.3.1.28.4.59.31 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | D | Subpart D—Underwriting | § 1005.461 HUD issuance of Firm Commitment. | HUD | HUD may underwrite and issue a Firm Commitment when it is in the interest of HUD. | |||||
| 24:24:4.1.3.1.28.5.60.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.501 Direct Guarantee Lender closing requirements. | HUD | The Direct Guarantee Lender shall close the loan in accordance with the following: (a) Chain of title/interest. (1) For fee simple Properties, the Direct Guarantee Lender must obtain evidence of all prior ownership within 12 months of the case number assignment date. The Direct Guarantee Lender must review the evidence of prior ownership to determine any undisclosed Identity of Interest transactions. (i) If an Identity of Interest is discovered, the Direct Guarantee Lender must review for any possible Conflict of Interest. (ii) As a requirement of closing, all Borrowers must execute a Section 184 Borrower's Certification, addressing any Identity of Interest and Conflict of Interest. (2) For Trust Land transactions, the requirements for the determination of ownership title interest shall be prescribed by HUD in Section 184 Program Guidance. (b) Title/Title Status Report. The Direct Guarantee Lender must ensure that all objections to title binder/initial certified Title Status Report have been cleared, and any discrepancies have been resolved, to ensure that the Section 184 Guaranteed Loan will be in first security interest position. (c) Closing in compliance with Direct Guarantee Lender approval. The Direct Guarantee Lender must instruct the settlement agent to close the Section 184 Guaranteed Loan on the same terms or on the same assumptions in which it was underwritten and approved. (d) Closing in the Direct Guarantee Lender's name. A Section 184 Guaranteed Loan must close in the name of the Direct Guarantee Lender issuing the underwriting approval. (e) Required HUD documents at closing. The Direct Guarantee Lender must use the forms and language as prescribed in Section 184 Program Guidance. (f) Projected escrow. The Direct Guarantee Lender must establish an escrow account in accordance with § 1005.717 and the Real Estate Settlement Procedures Act and any other escrow requirements as prescribed under applicable Tribal and Federal laws and regulations. (g) Closing costs and fees. The Dire… | ||||||
| 24:24:4.1.3.1.28.5.60.2 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.503 Contents of endorsement case binder. | HUD | The Direct Guarantee Lender's endorsement case binder shall be submitted in a format as prescribed by HUD and contain the documents meeting the requirements of § 1005.501 and any other documents supporting the Direct Guarantee Lender's underwriting determination. | ||||||
| 24:24:4.1.3.1.28.5.60.3 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.505 Payment of Upfront Loan Guarantee Fee. | HUD | The Direct Guarantee Lender, shall provide evidence of the remittance of the Upfront Loan Guarantee Fee, as required under § 1005.607, in accordance with a process provided by HUD in Section 184 Program Guidance. | ||||||
| 24:24:4.1.3.1.28.5.60.4 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.507 Borrower's payments to include other charges and escrow payments. | HUD | (a) The Direct Guarantee Lender must include in the Section 184 Guaranteed Loan monthly payment the following charges and escrow payments: (1) The ground rents, if any, when the Tribe or TDHE does not have an existing withholding or payment policy in place; (2) Annual Loan Guarantee Fee, as prescribed in § 1005.607, if any; (3) The estimated amount of all taxes; (4) Special assessments, if any; (5) Flood insurance premiums, if flood insurance is required; (6) Fire and other hazard insurance premiums, except master policy premiums payable to a condominium association or a Tribe and paid directly by the Borrower: (7) Other charges as allowed in Section 184 Program Guidance. (b) The Section 184 Guaranteed Loan shall further provide that such payments shall be held by the Direct Guarantee Lender in a manner satisfactory to HUD for the purpose of paying such ground rents, taxes, assessments, and insurance premiums before the same become delinquent, for the benefit and account of the Borrower. The Section 184 Guaranteed Loan must also make provisions for adjustments in case the estimated amount of such taxes, assessments, and insurance premiums shall prove to be more, or less, than the actual amount thereof so paid by the Borrower. Such payments shall be held in an escrow subject to § 1005.717. (c) The Borrower shall not be required to pay premiums for fire or other hazard insurance which protects only the interests of the Direct Guarantee Lender, or for life or disability income insurance, or fees charged for obtaining information necessary for the payment of property taxes. The foregoing does not apply to charges made or penalties exacted by the taxing authority, except that a penalty assessed, or interest charged, by a taxing authority for failure to timely pay taxes or assessments shall not be charged by the Direct Guarantee Lender to the Borrower if the Direct Guarantee Lender had sufficient funds in escrow for the account of the Borrower to pay such taxes or assessments prior to the date on which penalty… | ||||||
| 24:24:4.1.3.1.28.5.60.5 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.509 Application of payments. | HUD | All monthly payments to be made by the Borrower to the Servicer shall be added together, and the aggregate amount shall be paid by the Borrower each month in a single payment by the Borrower, in accordance with the loan documents. The Servicer shall apply the Borrower's funds in accordance with § 1005.715. | ||||||
| 24:24:4.1.3.1.28.5.60.6 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.511 Late fee. | HUD | When the monthly Section 184 Guaranteed Loan payment is 15 or more days in arrears, the Servicer may collect from Borrower a late fee of up to four percent of the overdue payment of principal and interest, or any other limit as established by HUD through public notice with an opportunity for comment. The late fee provision must appear on the note executed at closing. | ||||||
| 24:24:4.1.3.1.28.5.60.7 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.513 Borrower's payments when Section 184 Guaranteed Loan is executed. | HUD | The Borrower must pay to the Direct Guarantee Lender, upon execution of the Section 184 Guaranteed Loan, where applicable, the: (a) One-time Up-Front Loan Guarantee Fee or any portion payable pursuant to § 1005.603; and (b) All other applicable monthly charges pursuant to § 1005.507, including the Annual Loan Guarantee Fee pursuant to § 1005.607 covering the period from the closing date to the due date of the first installment payment under the Section 184 Guaranteed Loan. | ||||||
| 24:24:4.1.3.1.28.5.60.8 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.515 Charges, fees, or discounts. | HUD | (a) The Direct Guarantee Lender must ensure that all fees charged and disclosure requirements at closing to the Borrower comply with all applicable Tribal, Federal, State, and local laws. (b) The Direct Guarantee Lender may collect from the Borrower the following charges, fees, or discounts at closing: (1) A charge to compensate the Direct Guarantee Lender for expenses incurred in originating and closing the Loan. HUD may establish limitations on the amount of any such charge in Section 184 Program Guidance. (2) Reasonable and customary amounts, but not more than the amount actually paid by the Direct Guarantee Lender, for any of the following items: (i) Recording fees and recording taxes or other charges incident to recordation; (ii) Credit report; (iii) Survey, if required by Direct Guarantee Lender or Borrower; (iv) Title examination; (v) Title insurance, if any; (vi) Fees paid to an appraiser or inspector approved by HUD for the appraisal and inspection, if required, of the property; (vii) Reasonable and customary charges in the nature of discounts; and (viii) Interest calculations in accordance with § 1005.501(i). (ix) Such other reasonable and customary charges as may be authorized by HUD. (c) All charges, fees or discounts are subject to review by HUD after endorsement. | ||||||
| 24:24:4.1.3.1.28.5.60.9 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.517 Certificate of nondiscrimination by the Direct Guarantee Lender. | HUD | (a) Where applicable, a Direct Guarantee Lender shall certify to HUD as to each of the following: (1) That neither the Direct Guarantee Lender, nor anyone authorized to act for the Direct Guarantee Lender, will refuse to sell, after the making of a bona fide offer, or refuse to negotiate for the sale otherwise make unavailable or deny the property covered by the Section 184 Guaranteed Loan to any eligible purchaser or discriminate in making a loan or engaging in a residential real estate-related transaction (as defined in 42 U.S.C. 3605) because of age, race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin, source of income of the Borrower, location of the property, or because the Borrower exercised any right under the Consumer Credit Protection Act, except as provided by law. (2) That any restrictive covenant, other than permissible restrictions on Trust Land, on such property relating to race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin is hereby illegal, unenforceable, or void. (b) That civil action for preventative relief may be brought by the Attorney General in any appropriate U.S. District Court against any person responsible for a violation of this certification. | ||||||
| 24:24:4.1.3.1.28.5.61.10 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.519 Creation of the contract. | HUD | The loan shall be a Section 184 Guaranteed Loan from the date of the issuance of a Loan Guarantee Certificate. The Direct Guarantee Lender is thereafter bound by the regulations in this subpart with the same force and to the same extent as if a separate contract had been executed relating to the Section 184 Guaranteed Loan, including the provisions of the regulations in this subpart and 12 U.S.C. 1715z-13a. | ||||||
| 24:24:4.1.3.1.28.5.61.11 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.521 Pre-endorsement review and requirements. | HUD | Direct Guarantee Lender must complete a pre-endorsement review of the endorsement case binder. This review must be conducted by staff not involved in the originating, processing, or underwriting of the Loan. This review must also confirm that the loan was underwritten by an approved Direct Guarantee Lender. The endorsement case binder must contain all documentation relied upon by the Direct Guarantee Lender to justify its decision to approve the Loan in accordance with subpart D of this part. Upon finalizing the pre-endorsement review, the Direct Guarantee Lender must certify that all required documents are submitted and meet the requirements of § 1005.503. | ||||||
| 24:24:4.1.3.1.28.5.61.12 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.523 HUD pre-endorsement review. | HUD | (a) Direct Guarantee Lender shall submit to HUD within 60 days after the date of the closing of the Loan, or such additional time as permitted by HUD, the endorsement case binder. (b) Upon submission by a Direct Guarantee Lender of the endorsement case binder containing those documents required by § 1005.503, HUD will review the documents to ensure that the Loan meets all statutory, regulatory, and administrative requirements, including but not limited to: (1) There is no fee, late charge, or interest due to HUD; (2) The Loan was not in default when submitted for the Loan Guarantee Certificate, unless otherwise approved by HUD, or if submitted for guarantee more than 60 days after the date of closing, the loan shows an acceptable payment history; and (3) The loan was underwritten by an approved Direct Guarantee Lender. (c) Upon review, if HUD determines the loan to meet program requirements, HUD will issue a Loan Guarantee Certificate. If HUD determines the loan is ineligible, HUD will provide the Direct Guarantee Lender with a written determination and specify any available corrective actions that may be available. If there is information indicating that any certification or required document is false, misleading, or constitutes fraud or misrepresentation on the part of any party, or that the loan fails to meet a statutory or regulatory requirement, HUD will conduct a complete audit of the endorsement case binder. Repeated submission of deficient endorsement case binders may subject the Direct Guarantee Lender to sanctions or civil money penalties pursuant to §§ 1005.905 and 1005.907. | ||||||
| 24:24:4.1.3.1.28.5.61.13 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.525 Loan Guarantee Certificate. | HUD | (a) HUD shall issue a Loan Guarantee Certificate as evidence of the guarantee when HUD completes a review of the Direct Guarantee Lender's endorsement case binder and determines the Loan complies with all applicable Section 184 Program requirements. HUD's issuance of the Loan Guarantee Certificate does not preclude HUD from conducting post-endorsement reviews under § 1005.527, seeking indemnification under § 1005.529, or imposing sanctions from originating Direct Guarantee Lender, Holder and/or Servicer under §§ 1005.905 and 1005.907. (b) HUD may issue a Loan Guarantee Certificate for a loan involving a security interest in Trust Land before HUD receives the required trailing documents from BIA, where applicable, if the Direct Guarantee Lender agrees to indemnify HUD. The indemnification agreement between HUD and the Direct Guarantee Lender will terminate only upon receipt of the Trailing Documents in a form and manner acceptable to HUD. Trailing Documents may include the following documents: (1) A final certified TSR that identifies that the BIA or Tribe approved and recorded the mortgage instrument and residential lease related to the Section 184 Loan, as applicable; (2) A certified true copy of the recorded mortgage instrument; (3) A certified true copy of the recorded lease, if applicable; (4) A certified true copy of the recorded executed mortgage release documents for all prior mortgages identified on the initial certified TSR, if applicable; and (5) A certified true copy of any BIA approved and executed subordination agreements; (c) The Loan Guarantee Certificate is conclusive evidence of the eligibility of the Loan for guarantee under this part. Such evidence will be incontestable in the hands of the bearer and the full faith and credit of the United States is pledged to the payment of amounts agreed to be paid by HUD as security for such obligations. (d) This section may not be construed to preclude HUD from conducting a post-endorsement review. With respect to the original Direct Guarantee Lende… | ||||||
| 24:24:4.1.3.1.28.5.61.14 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.527 Post-endorsement review. | HUD | (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. | ||||||
| 24:24:4.1.3.1.28.5.61.15 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | Subpart-E—Closing and Endorsement | § 1005.529 Indemnification. | HUD | (a) When HUD conducts a pre- or post-endorsement review and HUD determines there is an underwriting deficiency where the Section 184 Guaranteed Loan should not have been approved, HUD may request the originating Direct Guarantee Lender to indemnify HUD. (b) Underwriting deficiencies with respect to the Section 184 Guaranteed Loan may include but is not limited to fraud or misrepresentation by the originating Direct Guarantee Lender. (c) HUD will notify the originating Direct Guarantee Lender in writing when an indemnification is required. (d) Under an indemnification, the originating Direct Guarantee Lender must reimburse HUD when a subsequent Holder files a Claim and HUD suffers a financial loss. (e) If the originating Direct Guarantee Lender fails to indemnify HUD, HUD may impose sanctions pursuant to §§ 1005.905 and 1005.907. | ||||||
| 24:24:4.1.3.1.28.6.62.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | F | Subpart F—Section 184 Guaranteed Loan Fees | § 1005.601 Scope and method of payment. | HUD | HUD shall charge a one-time Section 184 Up-Front Loan Guarantee Fee, and a recurring Annual Loan Guarantee Fee where applicable, which will be collected by a Direct Guarantee Lender or Servicer as required by §§ 1005.603 and 1005.607 and remitted to HUD as required by §§ 1005.605 and 1005.609. The fees collected by the Direct Guarantee Lender or Servicer on behalf of HUD shall be payable to HUD in cash, in the manner prescribed by Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.6.62.2 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | F | Subpart F—Section 184 Guaranteed Loan Fees | § 1005.603 Up-Front Loan Guarantee Fee. | HUD | At settlement, the Direct Guarantee Lender will collect from the Borrower a one-time Up-Front Loan Guarantee Fee in an amount not exceeding three percent of the principal obligation of the Section 184 Guaranteed Loan. The amount will be set by HUD through a notice in the Federal Register . | |||||
| 24:24:4.1.3.1.28.6.62.3 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | F | Subpart F—Section 184 Guaranteed Loan Fees | § 1005.605 Remittance of Up-Front Loan Guarantee Fee. | HUD | The Direct Guarantee Lender shall remit the Up-Front Loan Guarantee Fee to HUD within 15 days after settlement, using the payment system as prescribed by Section 184 Program Guidance. The Direct Guarantee Lender shall provide an account reconciliation of the Up-Front Loan Guarantee Fee in the time and manner as may be prescribed in Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.6.62.4 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | F | Subpart F—Section 184 Guaranteed Loan Fees | § 1005.607 Annual Loan Guarantee Fee. | HUD | (a) Percentage of Annual Loan Guarantee Fee. Where applicable the Servicer must collect a monthly installment for the Annual Loan Guarantee Fee from the Borrower in an amount not exceeding one percent of the principal obligation of the loan. The percentage used to calculate the Annual Loan Guarantee Fee amount will be prescribed by notice in the Federal Register . (b) Payment of Annual Loan Guarantee Fee. Where applicable, the Section 184 Guaranteed Loan shall require monthly payments by the Borrower to the Servicer in an amount equal to one-twelfth of the Annual Loan Guarantee Fee, payable by the Servicer to HUD in accordance with the Amortization Schedule issued with the Loan approval. (c) Amortization Schedule. The amount of the Borrower's monthly installment will be based on an Amortization Schedule as prescribed in Section 184 Program Guidance. | |||||
| 24:24:4.1.3.1.28.6.62.5 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | F | Subpart F—Section 184 Guaranteed Loan Fees | § 1005.609 Remittance of Annual Loan Guarantee Fee. | HUD | (a) Where applicable, monthly installment of the Annual Loan Guarantee Fee shall be due and payable to HUD no later than the 15th day of each month, beginning in the month in which the Borrower is required to make the first monthly loan payment. Monthly payments of the Annual Loan Guarantee Fee must be submitted using a HUD prescribed payment system, as prescribed by Section 184 Program Guidance. (b) Where applicable, subject to the exception in paragraph (d) of this section, the Servicer shall continue to collect from the Borrower, as established by a schedule provided in § 1005.607(b) and pay HUD the monthly installment of the Annual Loan Guarantee Fee, without taking into account Borrower's default, loss mitigation, prepayments, agreements to postpone payments, or agreements to recast the loan. Any changes to the Annual Loan Guarantee Fee will be published in the Federal Register . (c) Where applicable, the Servicer shall adjust the monthly installment of the Annual Loan Guarantee Fee in accordance the schedule provided in § 1005.607(b). Notwithstanding paragraph (a) of this section, the Servicer shall refund to the Borrower any overpayment of Annual Loan Guarantee Fees collected from the Borrower, due to a delayed adjustment of the Loan Guarantee Fee, within 30 days of the overpayment. Failure to refund the Borrower within this timeframe will result in a penalty in accordance with § 1005.611. (d) Where applicable, the Servicer shall cease collecting the monthly installment of the Annual Loan Guarantee Fee when the amortized loan to value ratio equals an amount less than the Annual Loan Guarantee Fee termination threshold loan-to-value ratio as established by the Secretary in the Federal Register and established by a schedule provided in § 1005.607(b). Notwithstanding paragraph (a) of this section, the Servicer shall refund to the Borrower any overpayment of Annual Loan Guarantee Fees collected when the loan-to-value ratio falls below the threshold established by the Secretary in the Federal Register, … | |||||
| 24:24:4.1.3.1.28.6.62.6 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | F | Subpart F—Section 184 Guaranteed Loan Fees | § 1005.611 HUD imposed penalties. | HUD | (a) Prohibited penalty pass through. The Holder, Direct Guarantee Lender or Servicer shall not recover or attempt to recover from the Borrower any penalties HUD imposes upon the Holder, Direct Guarantee Lender or Servicer. (b) Failure of Direct Guarantee Lender to timely remit Up-Front loan guarantee to HUD. (1) The Direct Guarantee Lender shall include a late fee if the Up-Front Loan Guarantee Fee is not remitted to HUD within 15 days of settlement. (2) Failure to remit the Up-Front Loan Guarantee Fee, with a late fee where applicable, may result in HUD rejecting the endorsement or Claim case binder. (c) Failure of Servicer to timely remit the monthly installment of the Annual Loan Guarantee Fee to HUD. (1) The Servicer shall include a late fee for each monthly installment of the Annual Loan Guarantee Fee remitted to HUD after the15th of each month. (2) Failure to remit monthly installment of the Annual Loan Guarantee Fee to HUD, with late fee, may result in HUD rejecting the Claim case binder, where applicable. (d) Failure of Servicer to adjust the amount of the Annual Loan Guarantee Fee. (1) When a Servicer fails to make the annual adjustment to the amount of the monthly installment of the Annual Loan Guarantee Fee in accordance with § 1005.607(b), the Holder shall, in addition to reimbursing the Borrower as required in § 1005.609(c), pay HUD a penalty for each month the Servicer collects an overpayment of the Annual Loan Guarantee Fee. (2) The Servicer shall provide annual written notice, in the manner prescribed by Section 184 Program Guidance to the Borrower prior to the scheduled change in the monthly installment of the Annual Loan Guarantee Fee, with such advance notice as required by 12 CFR 1026.9, or other applicable Federal law. (e) Failure to cease collection of the Annual Loan Guarantee Fee. When a Servicer fails to cease collection of the monthly installment of the Annual Loan Guarantee Fee after the loan to value ratio reaches the threshold described in § 1005.609(d), the Holder sh… | |||||
| 24:24:4.1.3.1.28.7.62.1 | 24 | Housing and Urban Development | IX | 1005 | PART 1005—LOAN GUARANTEES FOR INDIAN HOUSING | G | Subpart G—Servicing | § 1005.701 Section 184 Guaranteed Loan servicing generally. | HUD | This subpart identifies the servicing requirements for Section 184 Guaranteed Loans. All Section 184 Guaranteed Loans must be serviced by Section 184 approved Servicers, including Section 184 Guaranteed Loans owned by Holders. Holders are responsible for all servicing actions, including the acts of its Servicers. Servicers are responsible for their actions in servicing Section 184 Guaranteed Loans, including actions taken on behalf of, or at the direction of, the Holder. Failure to comply with this subpart may result in the reduction of the Claims amount in accordance with subpart H of this part or may subject Holder and/or Servicer to sanctions pursuant to subpart I. Holders and Servicers must comply with all applicable Tribal, Federal, and State requirements related to mortgage servicing. |
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chapter TEXT,
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