Md. Code Regs. 05.03.03.08

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

Section 05.03.03.08 - Loan Terms Governing Disbursement of Loan Proceeds and Repayment of the Loan

A. Disbursement of Loan Proceeds.

(1) For a period of up to 6 months from the date of the loan closing, the Program may disburse loan proceeds to the mortgagees or other parties as may be owed payments or fees based on the information provided in the borrower's application.

(2) After the initial 6-month period, the borrower may make additional requests for disbursement of loan proceeds to the mortgagees or other parties as may be owed payments or fees. Each request shall satisfy the following requirements:

(a) The request shall be for a period of not more than 6 months;

(b) The period of time for which loan disbursements are requested shall end not later than 24 months after the loan closing;

(c) The amount of the request may not cause the loan to exceed the maximum loan amount stated in the borrower's loan documents;

(d) The request shall be made on the form provided by the Program, and shall be submitted to the Program within the time period required by the Program;

(e) The request form shall be accompanied by updated information requested by the Program about the financial circumstances of the borrower's household. The information provided shall satisfy the Program that the borrower continues to be eligible for assistance under the Program.

(3) Loan proceeds may not be disbursed by the Program on behalf of the borrower once 24 months have passed since the date of the loan closing.

(4) The Program, in its discretion, may reevaluate the borrower's financial circumstances at any time during the time that loan proceeds are being disbursed. If the borrower fails to provide information reasonably requested by the Program, or if the Program determines that the borrower is no longer eligible for assistance, then the Program may discontinue any further loan disbursements.

B. Repayment Terms.

(1) The Program shall establish a repayment plan for the borrower which shall be set forth in the loan documents at the time the loan closes. The repayment plan shall require the borrower to begin repayment of the loan 24 months after the loan closes.

(2) Payments of principal and interest shall be deferred until the date established for repayment to begin.

Md. Code Regs. 05.03.03.08

Regulations .08 (Emergency Mortgage Assistance Program) adopted effective April 30, 1990 (17:8 Md. R. 975)