Md. Code Regs. 05.03.02.19

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.03.02.19 - Administration Initiatives and Special Programs

A. The Administration, in its discretion, may set aside Program funds for initiatives and special programs, whereby funds may be made available under special terms set by the Administration.

B. The Administration, in its discretion, may operate a program whereby loans made or purchased by the Administration are collateral for mortgage-backed securities, or other securities or certificates, under the terms and conditions which the Administration and the issuer of the securities or certificates require.

C. CDA Plus Loans.

(1) The Administration, in its discretion, may operate a program in which borrowers receiving first mortgage loans through the Program may also receive CDA Plus Loans.

(2) CDA Plus Loans are unsecured loans that do not bear interest and are forgivable as to principal.

(3) The amount of the CDA Plus Loan may not exceed 10 percent of the amount of the first mortgage loan received by that borrower.

(4) The principal due on the CDA Plus Loan may not be forgiven more rapidly than 1/10 per year for each year of the loan.

(5) The purpose of such a program is to provide a governmental benefit to qualifying first mortgage borrowers by providing settlement costs when doing so will enhance the borrowers' opportunities for affordable housing.

(6) The borrower may be charged a higher rate of interest on the first mortgage loan than the rate charged on first mortgage loans to borrowers who do not receive the CDA Plus Loan.

D. Settlement Expense Grants.

(1) The Administration may make funds available for grants to Program borrowers to assist with settlement expenses upon terms set by the Administration.

(2) The loan to the borrower receiving a grant under §D(1) of this regulation may be at a higher interest rate than loans available without the grant.

(3) The Administration may require that the borrower execute Administration documentation to receive the grant.

Md. Code Regs. 05.03.02.19

Regulations .19 adopted as an emergency provision effective April 23, 1980 (7:10 Md. R. 949); adopted permanently effective September 5, 1980 (7:18 Md. R. 1737)
Regulations .19 adopted effective July 30, 1984 (11:15 Md. R. 1329)
Regulations .19 adopted effective September 30, 1991 (18:19 Md. R. 2098)
Regulation .19C adopted effective October 13, 2003 (30:12 Md. R. 1447)
Regulation .19C amended effective May 23, 2005 (32:10 Md. R. 924)
Regulation .19D adopted effective May 23, 2005 (32:10 Md. R. 924)