[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: 24CFR25.5]



[Page 275]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 25_MORTGAGEE REVIEW BOARD--Table of Contents

 

Sec.  25.5  Administrative actions.



    (a) General. The Board is authorized to take the following 

administrative actions: letter of reprimand, probation, suspension, 

withdrawal, or settlement agreement. These actions are described at 12 

U.S.C. 1708(c)(3), and as further set out in this section.

    (b) Letter of reprimand. A letter of reprimand shall be effective 

upon receipt of the letter by the mortgagee. Failure to comply with a 

directive in the letter of reprimand may result in any other 

administrative action under this part that the Board finds appropriate.

    (c) Probation. Probation shall be effective upon receipt of the 

notice of probation by the mortgagee. Failure to comply with the terms 

of probation may result in any other administrative action under this 

part that the Board finds appropriate.

    (d) Suspension--(1) Cause for suspension. The Board may issue a 

suspension if there is adequate evidence of violation(s) under Sec.  

25.9, and if continuation of the mortgagee's HUD/FHA approval pending 

the completion of any audit, investigation, or other review, or other 

administrative or legal proceedings as may ensue, would not be in the 

public interest or in the best interests of HUD.

    (2) Effect of suspension. (i) During the period of suspension, HUD 

will not endorse any mortgage originated by the suspended mortgagee 

under the Title II program unless prior to the date of suspension:

    (A) A firm commitment has been issued relating to any such mortgage; 

or

    (B) A Direct Endorsement underwriter has approved the mortgagor for 

any such mortgage.

    (ii) During the period of suspension, a lender or loan correspondent 

may not originate new Title I loans under its Title I Contract of 

Insurance or apply for a new Contract of Insurance.

    (3) Effective date of suspension. A suspension issued pursuant to 

Sec.  25.6(c) is effective upon issuance. Any other suspension is 

effective upon receipt of the notice of suspension by the mortgagee.

    (e) Withdrawal--(1) Effect of withdrawal. (i) During the period of 

withdrawal, HUD will not endorse any mortgage originated by the 

withdrawn mortgagee under the Title II program unless prior to the date 

of withdrawal:

    (A) A firm commitment has been issued relating to any such mortgage; 

or

    (B) A Direct Endorsement underwriter has approved the mortgagor for 

any such mortgage.

    (ii) During the period of withdrawal, a lender or loan correspondent 

may not originate new Title I loans under its Title I Contract of 

insurance or apply for a new Contract of Insurance. The Board may limit 

the geographical extent of the withdrawal, or limit its scope (e.g., to 

either the single family or multifamily activities of a withdrawn 

mortgagee). Upon the expiration of the period of withdrawal, the 

mortgagee may file a new application for approval under 24 CFR part 202.

    (2) Effective date of withdrawal. (i) If the Board determines that 

immediate action is in the public interest or in the best interests of 

the Department, then withdrawal shall be effective upon receipt of the 

Board's notice of withdrawal.

    (ii) If the Board does not determine that immediate action is 

necessary according to paragraph (e)(2)(i) of this section, then 

withdrawal shall be effective either:

    (A) Upon the expiration of the 30-day period specified in Sec.  

25.8, if the mortgagee has not requested a hearing; or

    (B) Upon receipt of the Board's decision under Sec.  25.8, if the 

mortgagee requests a hearing.



[60 FR 685, Jan. 9, 1995, as amended at 65 FR 9087, Feb. 23, 2000]