[Code of Federal Regulations] [Title 24, Volume 4] [Revised as of April 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 24CFR1005.106] [Page 805] TITLE 24--HOUSING AND URBAN DEVELOPMENT CHAPTER IX--OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, PART 1005_LOAN GUARANTEES FOR INDIAN HOUSING--Table of Contents Sec. 1005.106 What is the Direct Guarantee procedure? (a) General. A loan may be processed under a Direct Guarantee procedure approved by the Department, under which the Department does not issue commitments to guarantee or review applications for loan guarantees before mortgages are executed by lenders approved for Direct Guarantee processing. The Department will approve a loan before the loan is guaranteed. (b) Mortgagee sanctions. Depending on the nature and extent of the noncompliance with the requirements applicable to the Direct Guarantee procedure, as determined by the Department, the Department may take such actions as are deemed appropriate and in accordance with published guidelines. [63 FR 48990, Sept. 11, 1998]