---
kind: "section"
citation: "24 C.F.R. § 1005.223"
title: "24"
number: "1005.223"
heading: "Direct Guarantee Lender Annual recertification requirements."
url: "https://uscodex.org/cfr/24/1005.223"
---

# §1005.223. Direct Guarantee Lender Annual recertification requirements.

- (a) All Direct Guarantee Lenders are subject to annual recertification on a date and form as prescribed by [Section 184](/cfr/24/184.md) Program Guidance.
- (b) With each annual recertification, Direct Guarantee Lenders must submit updated contact information, continued eligibility documentation and other pertinent materials as prescribed by [Section 184](/cfr/24/184.md) Program Guidance, including but not limited to:
  - (1) A certification that it has not been refused a license or sanctioned by any Tribe, State, or Federal entity or other governmental authority related to any lending activity;
  - (2) A certification that the Direct Guarantee Lender is in good standing with any Tribe, State, or Federal entity in which it will perform Direct Guarantee Lender activities; and
  - (3) Renewal documents and certification of continued eligibility from an authorizing entity listed in [§ 1005.203](/cfr/24/1005.203.md).
  - (4) Lenders approved under [§ 1005.205](/cfr/24/1005.205.md) must submit documentation supporting continued eligibility as prescribed by [Section 184](/cfr/24/184.md) Program Guidance.
- (c) All Sponsored Entities shall comply with this requirement and provide the annual recertification documentation directly to their Sponsor in accordance with their sponsorship agreement.
- (d) Direct Guarantee Lenders must also submit the following in accordance with [Section 184](/cfr/24/184.md) Program Guidance:
  - (1) A certification that the Direct Guarantee Lender continues to meet the direct guarantee program eligibility requirements in accordance with [§ 1005.209](/cfr/24/1005.209.md);
  - (2) A list of all Sponsored Entities with which the Direct Guarantee Lender has a sponsorship relationship, and a certification of their continued eligibility; and
  - (3) **All reports.**
- (e) Direct Guarantee Lenders must retain documentation related to the continued eligibility of their Sponsored Entities for a period as prescribed by [Section 184](/cfr/24/184.md) Program Guidance.
- (f) Direct Guarantee Lenders may request an extension of the recertification deadline, but such a request must be presented to HUD at least 30 days before the recertification deadline.
- (g) HUD will review the annual recertification submission and may request any further information required to determine recertification.
- (h) HUD will provide written notification of approval to continue participation in the [Section 184](/cfr/24/184.md) Program or denial. A denial may be appealed pursuant to [§ 1005.909](/cfr/24/1005.909.md).
  - (1) If an annual recertification is not submitted by a reasonable deadline prescribed in [Section 184](/cfr/24/184.md) Program Guidance, HUD may subject the Direct Guarantee Lender to sanctions under [§ 1005.907](/cfr/24/1005.907.md).
  - (2) [Reserved]

## Notes

### Authority

Authority: 12 U.S.C. 1715z-13a; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

### Source

Source: 89 FR 20056, Mar. 20, 2024; 89 FR 22084, Mar. 29, 2024, unless otherwise noted.