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Interpretation of HUD's Title I Insured Loan Regulations

B-203904: Mar 30, 1982

An opinion was requested on the proper interpretation of a provision in the Department of Housing and Urban Development's (HUD) insured loan regulations. If an annual adjustment in a lenders insurance reserve is required by the regulations 5 years from when it entered into an insurance contract rather than 5 years from when it began to make insured loans, an injustice would result to a certain par...

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B-203904, MARCH 30, 1982, 61 COMP.GEN. 308

B-203904: Mar 30, 1982

OUT OF WHICH ALL INSURED LOAN CLAIMS ARE PAID. SHOULD BEGIN 5 YEARS AFTER AN INSURANCE CONTRACT IS ISSUED TO THE LENDER IS BASED ON ASSUMPTION THAT DURING INITIAL 5-YEAR PERIOD THE LENDER WILL BE ACTIVELY ENGAGED IN MAKING TITLE I INSURED LOANS. HOUSING AND URBAN DEVELOPMENT DEPARTMENT - TITLE I INSURED LOANS - LEADER'S LOSS RESERVE ACCOUNT - ANNUAL ADJUSTMENT - COMMENCEMENT DATE - WAIVER OF REGUL...

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