24 C.F.R. § 202.6 Supervised lenders and mortgagees.
Title 24 - Housing and Urban Development
(a) Definition. A supervised lender or mortgagee is a financial institution which is a member of the Federal Reserve System or an institution whose accounts are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. A supervised mortgagee may submit applications for mortgage insurance. A supervised lender or mortgagee may originate, purchase, hold, service or sell loans or insured mortgages, respectively. (b) Additional requirements. In addition to the general approval requirements in §202.5, a supervised lender or mortgagee shall meet the following requirements: (1) Net worth. The net worth requirements appear in §202.5(n). (2) Liquid assets. A Title II mortgagee shall have liquid assets consisting of cash or its equivalent acceptable to the Secretary in the amount of 20 percent of its net worth, up to a maximum liquidity requirement of $100,000. (3) Notification. A lender or mortgagee shall promptly notify the Secretary in the event of termination of its supervision by its supervising agency. (4) Fidelity bond. A Title II mortgagee shall have fidelity bond coverage and errors and omissions insurance acceptable to the Secretary and in an amount required by the Secretary, or alternative insurance coverage approved by the Secretary, that assures the faithful performance of the responsibilities of the mortgagee.
Title 24: Housing and Urban Development
PART 202—APPROVAL OF LENDING INSTITUTIONS AND MORTGAGEES
Subpart B—Classes of Lenders and Mortgagees
§ 202.6 Supervised lenders and mortgagees.
