Proposed Rule2023-15033
Revision of Investing Lenders and Investing Mortgagees Requirements and Expansion of Government-Sponsored Enterprises Definition
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 18, 2023
Issuing agencies
Housing and Urban Development Department
Abstract
HUD proposes to revise the requirements for investing lenders and investing mortgagees to gain or maintain status as a Federal Housing Administration (FHA) approved lender or mortgagee. This proposed revision would make FHA's approval requirements consistent with investing mortgagees' and investing lenders' risk, reduce barriers to FHA approval for new investing mortgagees and investing lenders, and increase access to capital for all FHA-approved mortgagees and lenders. HUD also proposes to make clarifying edits to ensure that certification language is applicable to investing lenders and investing mortgagees. In addition, HUD proposes to define the Government-Sponsored Enterprises (GSEs) separately from other governmental-type entities to ensure that FHA requirements specific to loan origination do not improperly apply to the GSEs. Finally, HUD proposes to eliminate obsolete language related to lender and mortgagee net worth requirements.
Full Text
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<title>Federal Register, Volume 88 Issue 136 (Tuesday, July 18, 2023)</title>
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[Federal Register Volume 88, Number 136 (Tuesday, July 18, 2023)]
[Proposed Rules]
[Pages 45863-45867]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15033]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Parts 5 and 202
[Docket No. FR-6291-P-01]
RIN 2502-AJ60
Revision of Investing Lenders and Investing Mortgagees
Requirements and Expansion of Government-Sponsored Enterprises
Definition
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, Department of Housing and Urban Development, HUD.
ACTION: Proposed rule.
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SUMMARY: HUD proposes to revise the requirements for investing lenders
and investing mortgagees to gain or maintain status as a Federal
Housing Administration (FHA) approved lender or mortgagee. This
proposed revision would make FHA's approval requirements consistent
with investing mortgagees' and investing lenders' risk, reduce barriers
to FHA approval for new investing mortgagees and investing lenders, and
increase access to capital for all FHA-approved mortgagees and lenders.
HUD also proposes to make clarifying edits to ensure that certification
language is applicable to investing lenders and investing mortgagees.
In addition, HUD proposes to define the Government-Sponsored
Enterprises (GSEs) separately from other governmental-type entities to
ensure that FHA requirements specific to loan origination do not
improperly apply to the GSEs. Finally, HUD proposes to eliminate
obsolete language related to lender and mortgagee net worth
requirements.
DATES: Comment Due Date: September 18, 2023.
ADDRESSES: There are two methods for submitting public comments. All
submissions must refer to the above docket number and title.
1. Electronic Submission of Comments. Comments may be submitted
electronically through the Federal eRulemaking Portal at
<a href="http://www.regulations.gov">www.regulations.gov</a>. HUD strongly encourages commenters to submit
comments electronically. Electronic submission of comments allows the
commenter maximum time to prepare and submit a comment, ensures timely
receipt by HUD, and enables HUD to make comments immediately available
to the public. Comments submitted electronically through
<a href="http://www.regulations.gov">www.regulations.gov</a> can be viewed by other commenters and interested
members of the public. Commenters should follow the instructions
provided on that website to submit comments electronically.
2. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street SW, Room 10276,
Washington, DC 20410-0500.
Note:
To receive consideration as a public comment, comments must be
submitted through one of the two methods specified above.
Public Inspection of Public Comments. HUD will make all properly
submitted comments and communications available for public inspection
and copying during regular business hours at the above address. Due to
security measures at the HUD Headquarters building, you must schedule
an appointment in advance to review the public comments by calling the
Regulations Division at 202-708-3055 (this is not a toll-free number).
HUD welcomes and is prepared to receive calls from individuals who are
deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>. Copies of all comments
submitted are available for inspection and downloading at
<a href="http://www.regulations.gov">www.regulations.gov</a>.
FOR FURTHER INFORMATION CONTACT: Volky Garcia, Division Director,
Department of Housing and Urban Development, 451 7th Street SW,
[[Page 45864]]
Washington, DC 20410, telephone 202-402-8229 (this is not a toll-free
number), email <a href="/cdn-cgi/l/email-protection#b9efd6d5d2c097d897ded8cbdad0d8f9d1ccdd97ded6cf"><span class="__cf_email__" data-cfemail="10467f7c7b693e713e777162737971507865743e777f66">[email protected]</span></a>. HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
SUPPLEMENTARY INFORMATION:
I. Background
Current HUD regulations at 24 CFR part 202, subpart A, establish
minimum standards and requirements for approval by the Secretary of
lenders and mortgagees to participate in FHA's Title I and Title II
programs. Subpart B identifies the classes of lender and mortgagee
eligible to participate in FHA's Title I and Title II programs and
outlines additional class-specific requirements for participation in
FHA's Title I and Title II programs.
In 2010, HUD amended 24 CFR part 202, subpart A, to include
investing lenders and investing mortgagees as a class of lender and
mortgagee subject to HUD's net worth requirements currently found at
Sec. 202.5(n). At the time the investing lender and investing
mortgagee net worth requirement change was made in 2010, HUD also
incorporated new financial reporting, audit, and quality control plan
requirements for investing lenders and investing mortgagees into
various HUD handbooks; however, no corresponding updates were made to
24 CFR part 202, subpart B, to reflect these investing lender and
investing mortgagee requirements. Additionally, in 2010, FHA increased
the minimum net worth requirements applicable to certain classes of
lenders and mortgagees in 24 CFR part 202. These new net worth
requirements were phased in over a period of three years, beginning on
May 20, 2010, and becoming fully phased in by May 20, 2013. The net
worth requirements during that three-year transition period are now
obsolete, but the phased-in net worth requirements language remains in
HUD's regulations.
Current HUD regulations in Sec. 202.10 also identify the class of
lenders and mortgagees that qualify as governmental institutions,
Government-Sponsored Enterprises, public housing agencies, and State
housing agencies. Currently, the various GSEs \1\ are included in the
same definition as Federal, State, or municipal governmental agencies
and Federal Reserve Banks at Sec. 202.10(a). For several years,
certain GSEs have contended that they do not have the infrastructure
that other lenders and mortgagees listed in Sec. 202.10 have in place
to ensure compliance with FHA requirements related to loan and mortgage
origination because they cannot originate loans or mortgages. FHA has
reviewed the mission and structure of the GSEs and determined that they
should not be subject to FHA requirements specific to loan and mortgage
origination because the GSEs do not originate loans or mortgages.
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\1\ The GSEs are the Federal Home Loan Banks, the Federal Home
Loan Mortgage Corporation (commonly known as Freddie Mac), and the
Federal National Mortgage Association (commonly known as Fannie
Mae).
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II. This Proposed Rule
Through this proposed rule, HUD proposes to make multiple changes
to 24 CFR part 202. HUD's proposed changes are described more fully in
each of the below sections.
A. Requirements for Investing Lenders and Investing Mortgagees
HUD proposes to state that investing lenders and investing
mortgagees must comply with applicable audit and financial statement
requirements by adding language to Sec. 202.9 that incorporates audit
report, financial statement, and other financial information
requirements, similar to the requirements for supervised and
nonsupervised lenders and mortgagees found in Sec. Sec. 202.6(b)(4)
and 202.7(b)(3), respectively. These proposed audit and financial
statement requirements would also include adding investing lenders and
investing mortgagees as types of lenders and mortgagees that must
comply with HUD's uniform financial reporting standards, as described
in Sec. 5.801(a)(5).
HUD is also proposing to make explicit that investing lenders and
investing mortgagees must comply with FHA's annual certification
requirements at Sec. 202.5(m). Currently, FHA's annual certification
regulation contains language primarily directed at lenders and
mortgagees that originate insured mortgages or Title I loans. HUD
proposes to update the annual certification requirement language in
Sec. 202.5(m) to reference any lender or mortgagee, including
investing lenders and investing mortgagees, that originates, purchases,
holds, sells, or services insured mortgages or Title I loans.
HUD is also proposing to clarify at Sec. 202.5(h) that investing
lenders and investing mortgagees without servicing authority do not
have to implement a written quality control plan.
B. Government-Sponsored Enterprises
HUD proposes to separately define the GSEs from other Federal,
State, or municipal governmental agencies and Federal Reserve Banks as
described in Sec. 202.10(a). This proposed change is appropriate
because, unlike the other governmental-type institutions listed in
Sec. 202.10(a), the GSEs do not originate loans or mortgages. By
separately defining the GSEs, it would be clear that the GSEs do not
perform loan or mortgage origination activities and therefore are not
subject to FHA requirements specific to loan or mortgage origination.
Specifically, HUD proposes to individually define the term GSE by
creating a separate paragraph (b) in Sec. 202.10. The GSEs would be
identified as the Federal Home Loan Banks, the Federal Home Loan
Mortgage Corporation (commonly known as Freddie Mac), and the Federal
National Mortgage Association (commonly known as Fannie Mae). The
proposed GSE definition would make clear that GSE lenders or mortgagees
may purchase, service, or sell, but not originate, loans and mortgages.
The proposed GSE definition would also make explicit that the GSE
lenders or mortgagees must meet the general approval requirements in
Sec. 202.5, but that GSE lenders or mortgagees are not required to
meet the net worth requirement provided in Sec. 202.5.
C. Obsolete Language
The phased-in net worth requirements for 2010 and 2011 currently
found at Sec. 202.5(n)(2) expired in 2013. HUD proposes to delete
paragraph (n)(2) because the language is now obsolete.
D. Technical Amendments and Administrative Edits
As part of HUD's review of 24 CFR part 202 and in proposing the
changes described above, HUD identified several technical or non-
substantive edits to 24 CFR part 202 that would improve the clarity and
readability of the part. HUD proposes the following edits to 24 CFR
part 202 to improve its clarity and readability:
1. In Sec. 202.5(n)(1), HUD is proposing to update the paragraph
to change the word ``section'' to ``this section (n).'' This change
would make it more clear to which text the paragraph is referring.
Additionally, HUD proposes to update paragraph (n)(1) to change the
word ``entities'' to ``institutions.'' This change would make the text
of the paragraph more consistent because the term ``institutions'' is
used in an earlier sentence in the paragraph.
[[Page 45865]]
2. In Sec. 202.5(n)(3)(i)-(ii),\2\ HUD is proposing minor
grammatical changes intended to improve the readability of the
paragraphs and does not make any changes to the substantive meaning of
the text. Additionally, HUD proposes to update paragraph (n)(3)(ii) to
remove the phrases ``minimum'' and ``is required'' from the paragraph.
These changes are proposed because the quoted terms are duplicative in
meaning of other phrases in the paragraph.
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\2\ Consistent with the proposed change described in section C.
Obsolete Language of this proposed rule, these paragraphs would be
redesignated as (n)(2)(i) and (n)(2)(ii), respectively.
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3. In Sec. 202.9(b)(3), HUD is proposing to add the phrase
``investing lender or investing mortgagee'' to the text to make
explicit that the paragraph applies to both investing lenders and
investing mortgagees.
4. In Sec. 202.10(c),\3\ HUD is proposing to update the citations
of Sec. Sec. 200.40 and 200.69 listed in the paragraph to 2 CFR 200.1.
This change is appropriate because the identified section numbers from
2 CFR part 200 have been updated. This change will direct the reader to
the appropriate citation.
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\3\ Consistent with the proposed change described in section B.
Government-Sponsored Enterprises of this proposed rule, this
paragraph would be redesignated as (d).
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III. Findings and Certifications
Regulatory Review--Executive Orders 12866 and 13563
Pursuant to Executive Order 12866 (Regulatory Planning and Review),
a determination must be made whether a regulatory action is significant
and therefore, subject to review by the Office of Management and Budget
(OMB) in accordance with the requirements of the order. Executive Order
13563 (Improving Regulations and Regulatory Review) emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. The order also directs
executive agencies to analyze regulations that are ``outmoded,
ineffective, insufficient, or excessively burdensome, and to modify,
streamline, expand, or repeal them in accordance with what has been
learned.'' Executive Order 13563 further directs that, where relevant,
feasible, and consistent with regulatory objectives, and to the extent
permitted by law, agencies are to identify and consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public. As discussed above, this proposed rule, if
finalized, would be limited to defining GSEs under a separate
definition within 24 CFR 202.10; clarifying the audit, financial
statement, and certification requirements of investing lenders and
investing mortgagees; and eliminating obsolete language within 24 CFR
part 202 regarding lenders and mortgagees net worth requirements. OMB
has reviewed this proposed rule and determined that it is not
significant under Executive Orders 12866 and 13563.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
The changes proposed in this rule are limited to defining GSEs under a
separate definition within Sec. 202.10; clarifying the audit,
financial statement, and certification requirements of investing
lenders and investing mortgagees; and eliminating obsolete language
within 24 CFR part 202 regarding lenders and mortgagees net worth
requirements. HUD anticipates that this proposed rule, if finalized,
will have no economic impact.
Accordingly, the undersigned certifies that the proposed rule will
not have a significant economic impact on a substantial number of small
entities. Notwithstanding HUD's determination that this rule will not
have a significant impact on a substantial number of small entities,
HUD specifically invites comments regarding any less burdensome
alternatives to this rule that will meet HUD's objectives as described
in the preamble to this rule.
Environmental Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is
available for public inspection during regular business hours in the
Regulations Division, Office of General Counsel, Department of Housing
and Urban Development, 451 Seventh Street SW, Room 10276, Washington,
DC 20410. Due to security measures at the HUD Headquarters building,
please schedule an appointment to review the FONSI by calling the
Regulations Division at (202) 708-3055 (this is not a toll-free
number). HUD welcomes and is prepared to receive calls from individuals
who are deaf or hard of hearing, as well as individuals with speech or
communication disabilities. To learn more about how to make an
accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
Executive Order 13132, Federalism
Executive Order 13132 (Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule
either: (i) imposes substantial direct compliance costs on State and
local governments and is not required by statute, or (ii) preempts
State law, unless the agency meets the consultation and funding
requirements of section 6 of the Executive Order. This proposed rule
does not have federalism implications and does not impose substantial
direct compliance costs on State and local governments or preempt State
law within the meaning of the Executive Order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for Federal agencies to
assess the effects of their regulatory actions on State, local, and
Tribal governments, and on the private sector. This proposed rule would
not impose any Federal mandates on any State, local, or Tribal
governments, or on the private sector, within the meaning of the UMRA.
List of Subjects
24 CFR Part 5
Administrative practice and procedure; Aged; Claims; Crime;
Government contracts; Grant programs-housing and community development;
Individuals with disabilities; Intergovernmental relations; Loan
programs-housing and community development; Low and moderate income
housing; Mortgage Insurance; Penalties; Pets; Public housing; Rent
subsidies; Reporting and recordkeeping requirements; Social security;
Unemployment compensation; Wages.
24 CFR Part 202
Administrative practice and procedure; Home improvement;
Manufactured homes; Mortgage insurance; Reporting and recordkeeping
requirements.
For the reasons stated above, HUD proposes to amend 24 CFR parts 5
and 202 as follows:
PART 5--GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS
0
1. The authority citation for part 5 continues to read as follows:
[[Page 45866]]
Authority: 12 U.S.C. 1701x; 42 U.S.C. 1437a, 1437c, 1437f,
1437n, 3535(d); Sec. 327, Pub. L. 109-115, 119 Stat. 2396; Sec. 607,
Pub. L. 109-162, 119 Stat. 3051 (42 U.S.C. 14043e et seq.); E.O.
13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 258; E.O. 13559, 75 FR
71319, 3 CFR, 2010 Comp., p. 273; E.O 13831, 83 FR 20715, 3 CFR,
2018 Comp., p. 806; 42 U.S.C. 2000bb et seq.
0
2. Revise Sec. 5.801(a)(5) to read as follows:
Sec. 5.801 Uniform financial reporting standards.
(a) * * *
(5) HUD-approved Title I and Title II supervised, nonsupervised,
and investing lenders and investing mortgagees.
* * * * *
PART 202--APPROVAL OF LENDING INSTITUTIONS AND MORTGAGEES
0
3. The authority citation for part 202 continues to read as follows:
Authority: 12 U.S.C. 1703, 1709, and 1715b; 42 U.S.C. 3535(d).
0
4. In Sec. 202.5:
0
a. Revise paragraph (h);
0
b. Revise the second sentence of the introductory text of paragraph
(m);
0
c. Revise paragraphs (n)(1) and (2); and
0
d. Remove paragraph (n)(3).
The revisions read as follows:
Sec. 202.5 General approval standards
* * * * *
(h) Quality control plan. Lenders or mortgagees, unless approved
under Sec. 202.9 without servicing authority, shall implement a
written quality control plan, acceptable to the Secretary, that assures
compliance with the regulations and other issuances of the Secretary
regarding loan or mortgage origination and servicing.
* * * * *
(m) * * * Upon application for approval and with each annual
recertification, each lender and mortgagee must submit a certification
that it has not been refused a license and has not been sanctioned by
any state or states in which it will originate, purchase, hold, sell,
or service insured mortgages or Title I loans. * * *
* * * * *
(n) * * *
(1) Applicability. The requirements of paragraph (n) apply to
approved supervised and nonsupervised lenders and mortgagees under
Sec. 202.6 and Sec. 202.7, and approved investing lenders and
investing mortgagees under Sec. 202.9. For ease of reference, these
institutions are referred to as ``approved lenders or mortgagees'' for
purposes of paragraph (n). These requirements also apply to applicants
for FHA approval under Sec. Sec. 202.6, 202.7, and 202.9. For ease of
reference, these institutions are referred to as ``applicants'' for
purposes of paragraph (n).
(2) Requirements.
(i) Single family net worth requirements. Irrespective of size,
each applicant and each approved lender or mortgagee for participation
solely under the FHA single family programs shall have a net worth of
not less than $1 million, plus an additional net worth of one percent
of the total volume, in excess of $25 million, of FHA single family
insured mortgages originated, underwritten, purchased, or serviced
during the prior fiscal year, up to a maximum required net worth of
$2.5 million. No less than 20 percent of the applicant's or approved
lender's or mortgagee's required net worth must be liquid assets
consisting of cash or its equivalent acceptable to the Secretary.
(ii) Multifamily net worth requirements. Irrespective of size, each
applicant for approval and each approved lender or mortgagee for
participation solely under the FHA multifamily programs shall have a
net worth of not less than $1 million. For those multifamily approved
lenders or mortgagees that also engage in mortgage servicing, an
additional net worth of one percent of the total volume, in excess of
$25 million, of FHA multifamily mortgages originated, purchased, or
serviced during the prior fiscal year, up to a maximum required net
worth of $2.5 million. For multifamily approved lenders or mortgagees
that do not perform mortgage servicing, an additional net worth of one
half of one percent of the total volume, in excess of $25 million, of
FHA multifamily mortgages originated during the prior fiscal year, up
to a maximum required net worth of $2.5 million. No less than 20
percent of the applicant's or approved lender's or mortgagee's required
net worth must be liquid assets consisting of cash or its equivalent
acceptable to the Secretary.
(iii) Dual participation net worth requirements. Irrespective of
size, each applicant for approval and each approved lender or mortgagee
that is a participant in both FHA single family and multifamily
programs must meet the net worth requirements as set forth in paragraph
(n)(2)(i) of this section.
0
6. In Sec. 202.9:
0
a. Revise the section heading;
0
b. In paragraph (a), the introductory text to paragraph (b), paragraph
(b)(1), and paragraph (b)(2) remove the words ``investing lender or
mortgagee'' and add, in their place, the words ``investing lender or
investing mortgagee''; and
0
c. Revise paragraph (b)(3) and add paragraph (b)(4).
The revisions and additions read as follows:
Sec. 202.9 Investing lenders and investing mortgagees.
* * * * *
(b) * * *
(3) Fidelity bond. An investing lender or investing mortgagee shall
maintain fidelity bond coverage and errors and omissions insurance
acceptable to the Secretary and in an amount required by the Secretary,
or alternative insurance coverage approved by the Secretary, that
assures the faithful performance of the responsibilities of the
mortgagee.
(4) Audit Report. A lender or mortgagee must comply with the
financial reporting requirements in 24 CFR part 5, subpart H. Audit
reports shall be based on audits performed by a certified public
accountant, or by an independent public accountant licensed by a
regulatory authority of a State or other political subdivision of the
United States on or before December 31, 1970. Audit reports shall
include:
(i) A financial statement in a form acceptable to the Secretary,
including a balance sheet and a statement of operations and retained
earnings, a statement of cash flows, an analysis of the lender's or
mortgagee's net worth adjusted to reflect only assets acceptable to the
Secretary, and an analysis of escrow funds; and
(ii) Such other financial information as the Secretary may require
to determine the accuracy and validity of the audit report.
* * * * *
0
7. In Sec. 202.10:
0
a. Revise paragraph (a);
0
b. Redesignate paragraph (b) as (c); and
0
c. Add new paragraphs (b) and (d).
The revisions and additions read as follows:
Sec. 202.10 Governmental institutions, Government-Sponsored
Enterprises, public housing agencies and State housing agencies.
(a) Federal, State, and municipal governmental agencies and Federal
Reserve Banks. A Federal, State, or municipal government agency or a
Federal Reserve Bank may be an approved lender or mortgagee. A
mortgagee approved under this paragraph may submit applications for
Title II mortgage insurance. A lender or mortgagee approved under this
paragraph may originate, purchase, service, or sell Title I loans and
insured
[[Page 45867]]
mortgages, respectively. A mortgagee or lender approved under this
paragraph is not required to meet a net worth requirement. A lender or
mortgagee shall maintain fidelity bond coverage and errors and
omissions insurance acceptable to the Secretary and in an amount
required by the Secretary, or alternative insurance coverage approved
by the Secretary, that assures the faithful performance of the
responsibilities of the mortgagee. There are no additional requirements
beyond the general approval requirements in Sec. 202.5 or as provided
under paragraph (c) of this section.
(b) Government-Sponsored Enterprises. The Government-Sponsored
Enterprises are the Federal Home Loan Banks, Federal Home Loan Mortgage
Corporation, and Federal National Mortgage Association. A Government-
Sponsored Enterprise may be an approved lender or mortgagee. A lender
or mortgagee approved under this paragraph may purchase, service, or
sell Title I loans and insured mortgages, respectively. A mortgagee or
lender approved under this paragraph is not required to meet a net
worth requirement. There are no additional requirements beyond the
general approval requirements in Sec. 202.5.
* * * * *
(d) Audit requirements. The insuring of loans and mortgages under
the Act constitutes ``Federal financial assistance'' (as defined in 2
CFR 200.1) for purposes of audit requirements set out in 2 CFR part
200, subpart F. Non-Federal entities (as defined in 2 CFR 200.1) that
receive insurance as lenders and mortgagees shall conduct audits in
accordance with 2 CFR part 200, subpart F.
Julia R. Gordon,
Assistant Secretary for Housing--Federal Housing Commissioner.
[FR Doc. 2023-15033 Filed 7-17-23; 8:45 am]
BILLING CODE 4210-67-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.