---
kind: "section"
citation: "7 C.F.R. § 3565.102"
title: "7"
number: "3565.102"
heading: "Lender eligibility."
url: "https://uscodex.org/cfr/7/3565.102"
---

# §3565.102. Lender eligibility.


An eligible lender must be a licensed business entity or HFA in good standing in the state or states where it conducts business; be approved by the Agency; and meet at least one of the criteria contained below. Lenders who are not eligible may participate in the program if they maintain a correspondent relationship with a lender who is eligible. An eligible lender must:

- (a) Meet the qualifications of, and be approved by, the Secretary of HUD to make multifamily housing loans that are to be insured under the National Housing Act;
- (b) Meet the qualifications and be approved by Fannie Mae, Freddie Mac or Ginnie Mae to make multifamily housing loans that are to be sold to or securitized by such corporations;
- (c) Be a state or local HFA, or a member of the Federal Home Loan Bank system, with a demonstrated ability to underwrite, originate, process, close, service, manage, and dispose of multifamily housing loans in a prudent manner;
- (d) Be a lender who meets the requirements for Agency approval contained in this subpart and has a demonstrated ability to underwrite, originate, process, close, service, manage, and dispose of multifamily housing loans in a prudent manner; or
- (e) Be a lender who meets the following requirements in addition to the other requirements of this subpart and of subpart I of this part:
  - (1) Have qualified staff to perform multifamily housing servicing and asset management;
  - (2) Have facilities and systems that support servicing and asset management functions; and
  - (3) **Have documented procedures for carrying out servicing and asset management responsibilities.**

## Notes

### Amendments

[63 FR 39458, July 22, 1998, as amended at 70 FR 2931, Jan. 19, 2005]

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

### Source

Source: 63 FR 39458, July 22, 1998, unless otherwise noted.

### Amendments

[63 FR 39458, July 22, 1998, as amended at 70 FR 2931, Jan. 19, 2005]