---
kind: "section"
citation: "24 C.F.R. § 1005.529"
title: "24"
number: "1005.529"
heading: "Indemnification."
url: "https://uscodex.org/cfr/24/1005.529"
---

# §1005.529. Indemnification.

- (a) When HUD conducts a pre- or post-endorsement review and HUD determines there is an underwriting deficiency where the [Section 184](/cfr/24/184.md) Guaranteed Loan should not have been approved, HUD may request the originating Direct Guarantee Lender to indemnify HUD.
- (b) Underwriting deficiencies with respect to the [Section 184](/cfr/24/184.md) Guaranteed Loan may include but is not limited to fraud or misrepresentation by the originating Direct Guarantee Lender.
- (c) HUD will notify the originating Direct Guarantee Lender in writing when an indemnification is required.
- (d) Under an indemnification, the originating Direct Guarantee Lender must reimburse HUD when a subsequent Holder files a Claim and HUD suffers a financial loss.
- (e) If the originating Direct Guarantee Lender fails to indemnify HUD, HUD may impose sanctions 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.