legally binding

HUD considers a commitment to be legally binding if:
(1) It conforms to the format prescribed in the appropriate HUD Handbook and contains only such modifications as have been approved by HUD in writing;
(2) All required underwriting, analyses, reviews and approvals have been accomplished prior to issuance of the commitment;
(3) It conforms to HUD requirements pertaining to initial term and extension;
(4) It obligates the lender and HUD to proceed to the next stage (i.e., firm commitment in the case of a conditional commitment, or endorsement in the case of a firm commitment) if the applicant mortgagor complies with all conditions of such commitment;
(5) It does not permit the lender to change unilaterally the conditions or terms of the commitment; and
(6) It is signed by an official of the coinsuring lender who has been designated and authorized in accordance with HUD requirements.

Source

24 CFR § 255.1

---

Scoping language

Effective on November 12, 1990, the authority to coinsure mortgages under this part is terminated, except that the Department:
(1) Will honor legally binding and validly issued commitments issued before November 12, 1990 and
(2) Will accept for review the coinsurance applications described in paragraph (b) of this section.

---

Is this correct? or