Sec. 106.3. Information and documents required to be submitted

An applicant must submit a letter application requesting approval to make FHA insured mortgage loans accompanied by the following documentation in order to obtain the approval of the superintendent to make FHA insured mortgage loans:

(a) a copy of the FHA approval letter issued by the Director, Lender Approval and Recertification Division or similar official with equivalent status;

(b) a copy of the completed application submitted to the Department of Housing and Urban Development including all supporting documents including, but not limited to, the following:

(1) HUD Form 92001 E, Application for Approval as Mortgagee/Loan Correspondent;

(2) HUD Form 92001 C, Supplement to Application for Approval, Schedule I;

(3) HUD Form 92001 D, Supplement to Approval, Schedule II; and

(4) HUD Form 92001 B, Branch Office Notification, if applicable;

(c) the most current annual certified audit report required by HUD;

(d) letter(s) establishing sponsor funding;

(e) sponsor certification that applicant satisfies FHA requirements, if applicable;

(f) certification that applicant has not been denied an operating license or registration or otherwise been sanctioned by any licensing or regulatory body;

(g) a copy of the Quality Control Program or HUD checklist accompanied by a certification that the plan is complete and satisfies all requirements;

(h) a notarized undertaking to the superintendent from each sponsor which includes the following representations:

(1) that it is a licensed mortgage banker or exempt organization;

(2) that it will honor all interest rate lock-in agreements and commitments to lend and fund all FHA insured mortgages for which the applicant has obtained its underwriting approval to issue interest rate lock-in agreements or commitments to lend;

(3) that within 48 hours after termination, it will notify the superintendent in writing of the termination of its agreement to fund all FHA insured mortgages for the loan correspondent; and

(4) that the notification it submits to the superintendent will include the following information:

(i) the specific reason(s) for the termination of its agreement to fund all FHA insured mortgages for the loan correspondent;

(ii) a list of all outstanding loan commitments and interest rate lock-in agreements which the sponsor has approved on behalf of the loan correspondent; and

(iii) a list of any interest rate lock-in agreements and loan commitments which the sponsor does not intend to honor and the reason(s) for this decision;

(i) a surety bond in the principal sum of $25,000 or a deposit agreement coupled with a pledged deposit of securities, funds or other assets in the amount of $25,000 valued at the lower of principal amount or market, pursuant to Part 413 of this Title. Such bond or deposit agreement must be approved by the superintendent. Model forms may be obtained from Mortgage Banking Division; and

(j) such other information and documentation as shall be required by the superintendent.