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a. Standard (05/09/2022)
The Title I Lender remains responsible for servicing or selling the Title I Loans that it holds and is authorized to file insurance claims on these Loans, but it cannot otherwise exercise the rights of an FHA-approved Title I Lender.
A Title I Lender cannot obtain insurance coverage for new Title I Loans originated under the terminated Title I Contract of Insurance as of the effective date of termination.
The Title I Lender is not relieved of the liability to pay future insurance premiums or other obligations owed to HUD.
The insurance reserve on Title I Loans previously accepted for insurance is not adversely affected except for Title I Loans involving fraud or misrepresentation.
Insurance Reserves earned by the Title I Lender as of the date of termination, under the terminated Title I Contract of Insurance, remain to its credit unless exhausted by filing of claims.