---
kind: "section"
citation: "24 C.F.R. § 1005.527"
title: "24"
number: "1005.527"
heading: "Post-endorsement review."
url: "https://uscodex.org/cfr/24/1005.527"
---

# §1005.527. Post-endorsement review.

- (a) HUD may review an endorsement case binder at any time, including but not limited to a quality control review of all documents in [§ 1005.503](/cfr/24/1005.503.md).
- (b) Within three business days of a request by HUD, the Direct Guarantee Lender must make available for review, or forward to HUD, copies of the identified endorsement case binder(s).
- (c) A Direct Guarantee Lender's failure to provide HUD access to any files may be grounds for sanctions in accordance with §§ [1005.905](/cfr/24/1005.905.md) and [1005.907](/cfr/24/1005.907.md).
- (d) **Based on HUD's review under paragraph (a) of this section, if HUD determines that—**
  - (1) The Loan does not satisfy the requirements of subpart F of this part;
  - (2) The Direct Guarantee Lender or Sponsored Entity committed fraud or a material misrepresentation; or
  - (3) The Direct Guarantee Lender or Sponsored Entity had known or should have known of fraud or a material misrepresentation in violation of this part, such that the Loan should not have been approved by the Direct Guarantee Lender;
- (e) HUD may request indemnification from the originating Direct Guarantee Lender and impose sanctions on the Direct Guarantee Lender and Sponsored Entity pursuant to §§ [1005.905](/cfr/24/1005.905.md) and [1005.907](/cfr/24/1005.907.md).

## 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.