40 Tex. Admin. Code § 177.7 - Qualifying Lending Institutions
(a) Any
entity wishing to apply to be a participating lending institution may obtain
application information and forms from the administrator. The applicant shall
submit the completed application and application fee to the administrator who
shall review it and recommend approval or disapproval of the application to the
board. The board shall consider the recommendation of the administrator and
shall notify the applying lending institution of its decision. Approval of the
application of a lending institution to participate shall not be withheld
unreasonably.
(b) No application
shall be approved unless the applicant:
(1)
is duly organized, validly existing, and in good standing under the laws
governing its creation and existence and is duly authorized and qualified to
originate and service residential housing loans in the State of Texas and
transact all business contemplated by Chapter 177 of this title and the Natural
Resources Code, Chapter 162;
(2)
is, at the time of the origination of any conventional mortgage loan, an FNMA
or FHLMC approved seller and servicer of conventional mortgages, or an
institution, the deposits of which are insured by FDIC or FSLIC, and will
continue to be so approved at all times thereafter, so long as the applicant
shall continue to serve in the capacity contemplated by the program;
(3) is, at the time of origination of any
mortgage loan which has FHA insurance, an FHA-approved mortgagee and an FNMA or
FHLMC approved seller and servicer of FHA insured mortgages, and will continue
to be so approved at all times thereafter, so long as the applicant shall
continue to serve in the capacity contemplated by the program;
(4) is, at the time of origination of any
mortgage loan which has a VA guaranty, an eligible lender for mortgages
guaranteed by the VA and an FNMA or FHLMC approved seller and servicer of VA
guaranteed mortgages, and will continue to be so approved at all times
thereafter, so long as the applicant shall continue to serve in the capacity
contemplated by the program;
(5) is
in compliance with the nondiscrimination provisions of the Civil Rights Act of
1964 (78 Statutes 252) and the regulations pursuant to such Act;
(6) has a delinquency and foreclosure
experience for the last three years which does not materially exceed the
experience for similar institutions as determined by the administrator;
and
(7) shall satisfy any other
qualification requirements which the board may adopt by resolution from time to
time.
(c) The board
shall review the list of approved participating lending institutions maintained
by the administrator no later than March 1 of each year and may request the
administrator to make further recommendations concerning previously approved
participating lending institutions. The board may, as part of its annual review
or at any other time, revoke its approval of a participating lending
institution but shall not do so unreasonably.
(d) Upon approval of a lending institution to
participate in the program, the institution and the board shall execute a
contract containing terms formulated by the administrator and approved by the
board. The contract's terms shall reflect the prudent lending practices
prevalent in the lending industry.
Notes
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