Common use of Lender certification Clause in Contracts

Lender certification. The Lender must certify to RHS that: (1) No major changes have been made in the Lender’s loan conditions and re- quirements since the issuance of the conditional commitment, except those approved in writing by RHS. In the event the interest rate has not been fixed at the time the conditional com- mitment is issued, and the interest rate increases between the time of issuance of the conditional commit- ment and loan closing, the Lender should note the change when submit- ting the package to RHS for loan guar- ▇▇▇▇▇. If either or both of the under- writing ratios are exceeded as a result of the interest rate increase, the Lend- er should list the compensating factors that demonstrate that sufficient repay- ment ability still exists. (2) All planned property acquisition has been completed and: (i) All development has been com- pleted; or (ii) An escrow account has been es- tablished in accordance with § 1980.315. (3) Required insurance coverage is in effect and an escrow account has been established for the payment of taxes and insurance. (4) Truth-in-lending requirements have been met. (5) All equal employment oppor- tunity and nondiscrimination require- ments have been met. (6) The loan has been properly closed by a party skilled and experienced in conducting loan closings and the re- quired security instruments, including any required shared equity instru- ments, have been obtained and re- corded in the appropriate office in a timely and accurate manner. (7) The borrower has a marketable (clean and defensible) title to the prop- erty then owned by the borrower, sub- ject to the instrument securing the loan to be guaranteed, and any other exceptions approved in writing by RHS. (8) Lien priorities are consistent with the requirements of the conditional commitment. (9) The loan proceeds have been dis- bursed for purposes and in amounts consistent with the conditional com- mitment. (10) There has been no adverse change in the borrower’s situation since the conditional commitment was issued by RHS. (11) All other requirements of the conditional commitment have been met.