[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR15.109]



[Page 183-184]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 15_PUBLIC ACCESS TO HUD RECORDS UNDER THE FREEDOM OF INFORMATION ACT 

AND TESTIMONY AND PRODUCTION OF INFORMATION BY HUD EMPLOYEES--Table of 

Contents

 

                Subpart B_FOIA Disclosure of Information

 

Sec.  15.109  How will HUD respond to a request for information from 

Form HUD-92410 (Statement of Profit and Loss)?



    (a) To whom will HUD disclose the information? HUD will release 

information from Form HUD-92410 (or a HUD approved substitute form that 

the mortgagor may have submitted) only to eligible potential purchasers 

and



[[Page 184]]



only during the period specified by HUD for the mortgage sale.

    (b) Under what conditions will HUD release such information? HUD 

will release the information only if all of the following three 

conditions are met:

    (1) The information concerns a project that is subject to a HUD-held 

mortgage which HUD is selling under the authority of sections 207 (k) 

and (l) of the National Housing Act (12 U.S.C. 1713 (k) and (l)) or 

section 7(i)(3) of the Department of Housing and Urban Development Act 

(42 U.S.C. 3535(i)(3)).

    (2) The eligible potential purchasers have agreed to:

    (i) Keep the information confidential;

    (ii) Disclose the information only to potential investors in the 

mortgage and only for the period specified by HUD for the mortgage sale 

and to notify those potential purchasers of their obligations under this 

section;

    (iii) Use the information only to evaluate the mortgage in 

connection with the mortgage sale; and

    (iv) To follow disclosure procedures for that sale that have been 

established by the Secretary.

    (3) The potential investors in the mortgage have agreed to keep the 

information confidential and to use the information only to evaluate the 

mortgage in connection with their investment decision.

    (c) To whom may potential investors disclose such information? 

Potential investors in the mortgage may disclose the information to 

other entities only if the disclosure is:

    (1) Necessary for the investor's evaluation of the mortgage;

    (2) Made in accordance with disclosure procedures for the specific 

sale that have been established by HUD; and

    (3) Limited to the period specified by HUD for the mortgage sale.

    (d) What sanctions are available for improper disclosure of such 

information? An eligible potential purchaser or a potential investor 

(who has received the information from a potential purchaser and has 

been notified by that entity of its obligations under paragraph (b) of 

this section), who discloses information from Form HUD-92410 in 

violation of this section, may be subject to sanctions under part 24 of 

this title.