---
kind: "section"
citation: "24 C.F.R. § 1005.705"
title: "24"
number: "1005.705"
heading: "Servicer approval."
url: "https://uscodex.org/cfr/24/1005.705"
---

# §1005.705. Servicer approval.

- (a) **Final approval.** Approval is signified by:
  - (1) Written notification from HUD that the Direct Guarantee Lender, Non-Direct Guarantee Lender, or other financial institution is approved as a Servicer under the [Section 184](/cfr/24/184.md) Program; and
  - (2) Agreement by the Direct Guarantee Lender, Non-Direct Guarantee Lender, or other financial institution to comply with requirements of this part and any applicable Federal, State, or Tribal law requirement.
- (b) **Limitations on approval.** The Direct Guarantee Lender, Non-Direct Guarantee Lender or other financial institution may only be approved to service [Section 184](/cfr/24/184.md) Guaranteed Loans in areas where the Direct Guarantee Lender, Non-Direct Guarantee Lender or financial institution is licensed, as applicable.
- (c) **Denial of participation.** A Direct Guarantee Lender, Non-Direct Guarantee Lender or other financial institution may be denied approval to become a Servicer if HUD determines the Direct Guarantee Lender, Non-Direct Guarantee Lender or other financial institution does not meet the qualification requirements of [§ 1005.703](/cfr/24/1005.703.md). HUD will provide written notification of denial and of the right to submit a written appeal in accordance with [§ 1005.909](/cfr/24/1005.909.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.