Md. Code Regs. 05.03.04.09

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

Section 05.03.04.09 - Program Operation

A. The Program shall establish procedures to operate the Program.

B. The Program may:

(1) Provide for a process by which mortgage lenders are certified to originate, sell, and service the loans;

(2) Enter into servicing agreements with mortgage lenders or other mortgage loan servicers acceptable to the Department;

(3) Prescribe the documentation required to establish an applicant's eligibility;

(4) Prescribe the form of legal documents to be used in closing the loans;

(5) Enter into agreements with local governments and nonprofit organizations to assist in the operation and funding of the Program.

C. The Program expects to give preference for the use of loan funds in the following ways:

(1) The Program may reserve a portion of loan funds for use in connection with other Departmental programs or particular housing developments, as approved by the Secretary, where the properties being purchased are one or two unit residences;

(2) The Program intends to give preference to applicants purchasing one and two unit residences;

(3) The Program shall give priority to homebuyers of low income by reserving at least 50 percent of the funds available for Program loans in each fiscal year for making loans to homebuyers of low income. Any reserve funds not applied for after 8 months of the fiscal year shall become available to all eligible borrowers.

D. The Program shall establish procedures for the closing of loans either by the Department directly or by authorized agent.

E. The Department may use Program funds for initiatives or special programs that promote affordable housing under the terms and conditions set by the Program.

Md. Code Regs. 05.03.04.09

Regulations .09 adopted as an emergency provision effective December 13, 1988 (15:27 Md. R. 3114); emergency status extended at 16:12 Md. R. 1331; emergency status expired October 31, 1989
Regulations .09 adopted effective December 11, 1989 (16:24 Md. R. 2616)
Regulation .09 amended effective February 1, 1993 (20:2 Md. R. 110)
Regulation .09E adopted effective December 1, 2008 (35:24 Md. R. 2075)