110 Remedies for Non-Performance

DCA retains the right to either limit or terminate the Lender’s participation in the Program for (i) any failure to abide by the terms of the Loan Seller Agreement or this Guide, (ii) any untrue or materially misleading statement in the Lender Application or Lender Application Renewal forms or attachments thereto, (iii) lack of loan participation, (iv) named as a defendant in any pending litigation.

110.1 Limited Participation 

Limited participation means the Lender will be unable to make a reservation until the specific violations which caused the limited participation have been resolved to our satisfaction. Such violations include but are not limited to: 

  1. loss of mortgage insurer certification;
  2. failure to maintain a branch in Georgia or contiguous state;
  3. outstanding repurchases of loans or outstanding final documents; or
  4. excessive HUD or GHFA delinquency ratios. 

Limited participation does not relieve the Lender of any responsibilities under the Loan Seller Agreement or this Guide. At the conclusion of the period of limited participation, DCA will notify Lender either (i) when reservations may resume, or (ii) the Lender’s participation in the Program has been terminated.

110.2 Termination

Termination means Lender will no longer be allowed to participate in the Program and the Lender’s name will be removed from all DCA materials intended for the public as soon as practical. The decision to terminate participation will be based upon an evaluation of the severity and magnitude of the violation and will be solely within DCA’s discretion. After termination, a Lender which has taken the necessary steps to prevent a reoccurrence of the violation that led to the termination may submit a request to reinstate participation to DCA’s Program Specialist with an explanation of the steps taken. After review, we will notify you of our decision.

At the time of Lender renewal, if the Lender has less than four loans purchased by Georgia Dream from the previous year, the Lender will be terminated.

110.3 Notification and Appeal

The Program Contact will be notified of limited participation or termination via email. Lenders will have 15 Business Days from the date of the notice to appeal the action to DCA’s Program Manager of Homeownership.  The appeal must (i) demonstrate why Lender feels the action was unwarranted, (ii) describe any measures underway to correct the deficiencies, and (iii) demonstrate measurable progress toward correcting the deficiencies. DCA may, in our sole discretion, schedule an informal conference with Lender to gather information related to the limited participation or termination.  A decision will be made within 15 Business Days of receipt of the appeal.