Current through Register 2022 Notice Reg. No. 14, April 8, 2022
(a) The applicant
shall be responsible for providing the lender with the information necessary
for the lender to determine the applicant's eligibility for a loan.
Upon notification from the lender of its
decision regarding the applicant's loan application, the Program Administer
shall take either of the following actions as appropriate:
When the conditions specified in Section
7264(a)(2) and (3) exist, the Program Administrator shall both:
(A) In consultation with the lender,
determine an affordable monthly payment and interest rate.
(B) Execute a loan guarantee agreement with
the lender. At a minimum, the agreement shall include the amount of the loan,
the agreed upon interest rate and acknowledgement that the lender will comply
with the provisions specified in (d) and Section 7266.
(2) Notify the applicant in writing that
his/her loan guarantee request has been denied.
(c) Individuals for whom the Department has
guaranteed a loan shall make their monthly payments directly to the
(d) Lenders with whom the
Department has executed a loan agreement shall notify the Program Administrator
at least quarterly of the amount of the unpaid balance on the guaranteed loan.
In addition, the lender shall notify the Program Administrator at any time when
the individual does not make his/her monthly payment.