- (a) After reviewing the appraisal, and any other relevant information, the board shall notify the prospective borrower whether or not it approves the loan application. If the board disapproves a loan application, it shall notify the prospective borrower, in writing, of the reason for the disapproval.
(b) The board may approve a loan for a lesser amount than was requested by the prospective borrower. In that event, the prospective borrower shall do one of the following:
- (1) negotiate an amended purchase price that conforms to the approved loan amount;
- (2) increase the down payment to include the difference between the purchase price and the approved loan amount; or
- (3) cancel the loan application.
- (c) The board reserves the right to refuse to approve any loan application when it deems it protects the best interests of the program to do so.
- (d) The board may, by resolution, establish general exceptions to the provisions of §175.6(g) of this chapter (relating to Commitment by the Board), pertaining to contingent transactions. These exceptions shall be limited to those transactions described in the Texas Natural Resources Code, Chapter 161, Subchapter K.
Source Note:The provisions of this §175.55 adopted to be effective January 8, 2002, 27 TexReg 286; amended to be effective November 23, 2003, 28 TexReg 10254; amended to be effective July 28, 2025, 50 TexReg 4969.