Section 15-161-42 - Process and procedures(a) The corporation shall notify all mortgage lenders of its intent to issue bonds not later than thirty days in advance-of the anticipated sale date of the bonds. The notification 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) The distribution of funds available shall be based upon the order in which the corporation receives the qualified requests. Each qualified request received by the corporation shall be date and time stamped to chronologically prioritize the allocation of funds.(c) The corporation shall issue a commitment letter to the lenders if it is determined that funds are available to accommodate their request.(d) 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.(e) The corporation shall establish the fees and charges payable to the corporation by participating mortgage lenders, as described in the: (1) Mortgage purchase agreement;(2) Mortgage servicing agreement; and(f) It shall be 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's 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 eligible loan funding program shall be conducted in accordance with sections 15-161-40, 15-161-41, and 15-161-42, 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 sections 15-161-40, 15-161-41, and 15-161-42. 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 § 2016-196)