Page:United States Statutes at Large Volume 106 Part 1.djvu/569

 PUBLIC LAW 102-325^JULY 23, 1992 106 STAT. 537 ance. The Secretary shall notify each appropriate guaranty agency of the eligible lenders and servicers designated under tMs section. "(2) COMPLIANCE PERFORMANCE RATING. —For purposes of paragraph (1), a compliance performance rating is determined with respect to compliance with due diligence in the collection of loans under this part for each year for which the determination is made. Such rating is equal to the percent of all due diligence requirements applicable to each loan, on average, as established by the Secretary by regulation, with respect to— "(A) loans serviced during the period by the eligible lender or servicer; or "(B) loans on which loan collection was attempted by the guaranty agency. "(b) PAYMENT TO LENDERS AND SERVICERS. — "(1) 100 PERCENT PAYMENT RULE.—Each guaranty agency shall pay each eligible lender or servicer (as agent for an eligible lender) designated under subsection (a) 100 percent of the unpaid principal and interest of all loans for which claims are submitted for payment by that eligible lender or servicer for the one-year period following the receipt by the guaranty agency of the notification of designation under this section or until the guaranty agency receives notice from the Secretary that the designation of the lender or servicer under subsection (a) has been revoked. "(2) REVOCATION AUTHORITY.— The Secretary shall revoke the designation of a lender or servicer under subsection (a) if any quarterly audit required under subsection (c)(5) is not received by the Secretary by the date established by the Secretary or if the audit indicates the lender or servicer failed to maintain 97 percent or higher compliance with program regulations, as reflected in the performance of not less than 97 percent of all due diligence requirements applicable to each loan, on average, as established by the Secretary for the purpose of this section, for 2 consecutive months or 90 percent for 1 month. "(3) DOCUMENTATION.— Nothing in this section shall restrict or limit the authority of guaranty agencies to require the submission of claims dociunentation evidencing servicing performed on loans, except that the guaranty agency may not require greater documentation than that required for lenders and servicers not designated under subsection (a). "(4) PAYMENTS TO GUARANTY AGENCIES. —The Secretary shall pay to each guaranty agency designated under subsection (a) the appropriate percentage xmder this subsection for the 1- year period following the receipt by the guaranty agency of the notification of designation under subsection (a). "(c) SUPERVISION OF DESIGNATED LENDERS AND SERVICERS. — "(1) AUDITS FOR LENDERS AND SERVICERS. —Each eligible lender or servicer desiring a designation under subsection (a) shall have a financial and compliance audit of the loan portfolio of such eligible lender or servicer conducted annually by a quaUfied independent organization from a list of quedined organizations promulgated by the Secretary in accordance with standards established by the Comptroller General and the Secretary. The standards shall measure the lender's or servicer's

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