1653.0101 PARTICIPATION REPURCHASE.
An originating lender is under no obligation to repurchase an RFA participation interest in a restructure first mortgage loan covered by parts 1653.0011 to 1653.0111 except as provided in this part.
A lender may, at its option and upon written approval by the RFA, repurchase an RFA participation interest at any time.
A lender must repurchase the RFA participation interest whenever the first mortgage loan is paid in full or refinanced.
A lender must repurchase the RFA participation interest if the lender:
has made misrepresentations or is aware that the applicant has made them or fails to perform its obligations under the participation agreement;
has received written notice from the RFA; and
has not corrected the representation or performance under the notice.
A repurchase under this part must be for the principal balance of the RFA participation plus accrued interest and any penalties or costs incurred by the RFA to secure repurchase.