Common use of Significant Deficiency Clause in Contracts

Significant Deficiency. A significant deficiency is one that creates a signifi- cant risk of loss to the Government, or involves acceptance of a borrower or property not permitted by Agency reg- ulations. Such cases may result in pro- bation or withdrawal of the Lender’s approval for program participation. Examples of significant deficiencies in- ▇▇▇▇▇ ▇▇▇▇▇ miscalculation of income, acceptance of property that is severely deficient of the required standards, missing builder certifications, and con- struction changes that materially af- fect value without proper change or- ders.