Mich. Admin. Code R. 390.1412 - Lenders, policies; loan practices
Rule 12.
(1) A
lender may determine its own lending policies, except as prescribed by these
rules, federal or state legislation, and regulations concerning state and
federal banking and credit practices.
(2) A lender shall comply with the
secretary's requirements, as set forth in the provisions of 34 C.F.R. SS682.205
to 682.208, in the making, disbursing, and servicing of a loan. These
provisions are adopted by reference in
R 390.1491.
(3) A lender shall comply with the
secretary's due diligence requirements, as specified in the provisions of 34
C.F.R. SS682.208 to 682.213 and 682.411, which are adopted by reference in
R 390.1491 in the collection of
loans and comply with both of the following provisions:
(a) A lender shall exercise reasonable care
and diligence in the collection of loans insured by the authority with regard
to borrowers. If the lender has obtained a cosigner, collection effort beyond
notifying the cosigner if the loan becomes delinquent is not mandatory. If the
loan is subsequently filed with the authority as a default, the cosigner shall
be notified and advised that collection shall be pursued by a state agency or
private agency.
(b) The due
diligence procedures and collection efforts shall be employed and documented by
the lender.
Notes
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