---
kind: "section"
citation: "2 C.F.R. § 2424.995"
title: "2"
number: "2424.995"
heading: "Principal (HUD supplement to governmentwide definition at 2 CFR 180.995)."
url: "https://uscodex.org/cfr/2/2424.995"
---

# §2424.995. Principal (HUD supplement to governmentwide definition at 2 CFR 180.995).


A person who has a critical influence on, or substantive control over, a covered transaction, whether or not employed by the participant. Persons who have a critical influence on, or substantive control over, a covered transaction may include, but are not limited to:

- (a) Loan officers;
- (b) Staff appraisers and inspectors;
- (c) Underwriters;
- (d) Bonding companies;
- (e) Borrowers under programs financed by HUD or with loans guaranteed, insured, or subsidized through HUD programs;
- (f) Purchasers of properties with HUD-insured or Secretary-held mortgages;
- (g) Recipients under HUD assistance agreements;
- (h) Ultimate beneficiaries of HUD programs;
- (i) Fee appraisers and inspectors;
- (j) Real estate agents and brokers;
- (k) Management and marketing agents;
- (l) Accountants, consultants, investment bankers, architects, engineers, and attorneys who are in a business relationship with participants in connection with a covered transaction under a HUD program;
- (m) Contractors involved in the construction or rehabilitation of properties financed by HUD, with HUD-insured loans or acquired properties, including properties held by HUD as mortgagee-in-possession;
- (n) Closing agents;
- (o) Turnkey developers of projects financed by or with financing insured by HUD;
- (p) Title companies;
- (q) Escrow agents;
- (r) Project owners;
- (s) Administrators of hospitals, nursing homes, and projects for the elderly financed or insured by HUD; and
- (t) Developers, sellers, or owners of property financed with loans insured under Title I or Title II of the National Housing Act.

## Notes

### Authority

Authority: Sec. 2455, Pub. L. 103-355, 108 Stat. 3327; E.O. 12549, 3 CFR, 1986 Comp., p. 189; E.O. 12689, 3 CFR, 1989 Comp., p. 235.

### Source

Source: 72 FR 73487, Dec. 27, 2007, unless otherwise noted.