LAC 16:II.707 – Processing and Qualifications of Borrowers Applications

A. An application for a mortgage loan shall be processed by a lending institution on behalf of the agency on the basis of the agency's evaluation criteria. The lending institution shall undertake its own due diligence and other matters as may be determined to be appropriate to insure that the proposed loan is consistent in all respects with the agency's evaluation factors.
B. When processing mortgage loan applications lenders must adhere to the published acquisition cost limits
and or maximum loan sizes as defined by the Federal Housing Administration, Veterans Administration, Rural Development.
C. Upon completion of the processing and approval of the application, the lending institution shall initiate a loan closing.

AUTHORITY NOTE: Promulgated in accordance with R.S. 40:600.1 et seq.

HISTORICAL NOTE: Promulgated by the Department of Treasury, Louisiana Housing Corporation, LR 38:1996 (August 2012).