A lender need not determine whether a borrower is eligible for a listed loan
What the document says“Nothing in the amendments made by paragraph (1) shall be construed to require an original lender to determine whether a prospective borrower is eligible for any loan included in the notice required under section 203(f) of the National Housing Act (12 U.S.C. 1709(f)).”
The section states that nothing in the amendment may be read as requiring an original lender to work out whether a prospective borrower is eligible for any loan listed in the notice required by section 203(f) of the National Housing Act.
What the document actually says“Nothing in the amendments made by paragraph (1) shall be construed to require an original lender to determine whether a prospective borrower is eligible for any loan included in the notice required under section 203(f) of the National Housing Act (12 U.S.C. 1709(f)).”
A lender does not have to work out what a borrower qualifies for. The notice lists loans, but the lender need not check each one.
The notice is meant to inform, not to promise. A borrower still has to apply. This makes clear the lender takes on no new duty.
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