| (a) After reviewing the appraisal, and any other relevant information, the board shall notify the prospective borrower whether or not it approves the loan application. If the board disapproves a loan application, it shall notify the prospective borrower, in writing, of the reason for the disapproval. (b) The board may approve a loan for a lesser amount than was requested by the prospective borrower. In that event, the prospective borrower shall do one of the following: (1) negotiate an amended purchase price that conforms to the approved loan amount; (2) increase the down payment to include the difference between the purchase price and the approved loan amount; or (3) cancel the loan application. (c) The board reserves the right to refuse to approve any loan application when it deems it protects the best interests of the program to do so. (d) The board may, by resolution, establish general exceptions to the provisions of §175.6(g), relating to Commitment by the Board, of this chapter pertaining to contingent transactions. These exceptions shall be limited to those transactions described in Natural Resources Code, Chapter 161, Subchapter K, relating to Land Loans. |
