1980.360—Conditions precedent to issuance of the loan note guarantee.
(1)
No major changes have been made in the Lender's loan conditions and requirements since the issuance of the conditional commitment, except those approved in writing by RHS. In the event the interest rate has not been fixed at the time the conditional commitment is issued, and the interest rate increases between the time of issuance of the conditional commitment and loan closing, the Lender should note the change when submitting the package to RHS for loan guarantee. If either or both of the underwriting ratios are exceeded as a result of the interest rate increase, the Lender should list the compensating factors that demonstrate that sufficient repayment ability still exists.
(3)
Required insurance coverage is in effect and an escrow account has been established for the payment of taxes and insurance.
(6)
The loan has been properly closed by a party skilled and experienced in conducting loan closings and the required security instruments, including any required shared equity instruments, have been obtained and recorded in the appropriate office in a timely and accurate manner.
(7)
The borrower has a marketable (clean and defensible) title to the property then owned by the borrower, subject to the instrument securing the loan to be guaranteed, and any other exceptions approved in writing by RHS.
(9)
The loan proceeds have been disbursed for purposes and in amounts consistent with the conditional commitment.
(10)
There has been no adverse change in the borrower's situation since the conditional commitment was issued by RHS.
(b) Inspections.
The Lender will certify to RHS that inspections in accordance with § 1980.341 have been completed.
(d) Lender file.
The Lender will maintain a file for each guaranteed RH loan containing originals or copies, as appropriate, of all documents pertaining to that loan.