Section 15-161-32 - Process and procedures(a) The corporation shall make available to all mortgage lenders, a commitment application at least thirty days in advance of the deadline for submission to the corporation. The commitment application shall be mailed to each active and qualified member of the:(1) Hawaii bankers association;(2) Hawaii league of savings associations;(3) Mortgage bankers association of Hawaii; and(4) Other mortgage lenders requesting an application.(b) To allocate funds available to meet the commitments requested by mortgage lenders, the corporation may consider, among other things: (1) The total amount of the commitments requested by the mortgage lenders;(2) The financial condition of the mortgage lenders who submit commitment applications;(3) The volume of residential mortgage loans made in the State by the mortgage lenders during the preceding twelve month period;(4) The demonstrated ability of mortgage lenders to act as servicers of the eligible loans to be purchased by the corporation;(5) The desire to achieve a reasonable geographic distribution of available funds throughout the State; and(6) The desire to have as many mortgage lenders as possible participate in the program.(c) The corporation may determine the allocation between single family dwellings and condominium units by the total dollar amount. Mortgage fund reservations for new construction projects shall be approved by the corporation prior to the making of such reservations by mortgage lenders. The method of allocation or mortgage fund reservation shall be set forth in the procedural guide.(d) The corporation shall issue a notice of acceptance as prescribed in the commitment application on or before the date of the sale of the bonds.(e) The corporation shall establish the fees and charges payable to the corporation by participating mortgage lenders, as described in the: (1) Commitment application;(2) Mortgage purchase agreement;(3) Mortgage servicing agreement; and(f) It shall be a prohibited practice to utilize the eligible loans to: (1) Convert an agreement of sale to a permanent mortgage except when the agreement of sale is "temporary financing"; or(2) Refinance an existing mortgage.(g) The corporation shall prescribe the form of loan application which the eligible borrower shall complete in accordance with the terms and conditions set forth in the procedural guide. Evaluation by the mortgage lender of each loan applicant's credit worthiness shall be done on a case-by-case basis. The following elements shall be considered in all cases in considering sound general principles in underwriting credit: (1) Monthly housing expense to income ratio;(2) Monthly debt payment-to-income ratio;(3) Stable monthly income;(5) Loan applicant is credit reputation; and(6) Ability of the eligible borrower to qualify for mortgage financing under a conventional loan.(h) The operation and implementation of the advance commitment program shall be conducted in accordance with these rules and the procedural guide as amended or supplemented from time to time by the corporation and at the corporation's sole discretion but at all times consistent with these rules. A copy of the procedural guide shall at all times be kept at the principal office of the corporation in its Most current form and shall be available for inspection at normal business hours. [Eff OCT 25 1999] (Auth: HRS § 2016-187) (Imp: HRS §§ 2016-188, 2016-189, 2016-190, 2016-191, 2016-195, 2016-197, 2016-198, 2016-199, 2016-200)