Md. Code Regs. 05.06.04.16

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

Section 05.06.04.16 - General Provisions

A. Reinsurance. Mortgage loans insured by the Fund may be reinsured or coinsured by and with public or private mortgage insurers, or through federal guarantees, when available. Portions of risk on any mortgage loan insured by the Fund may be assigned to other eligible mortgage insurers on a participating basis.

B. Waiver. The Secretary may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act or with agreements to which the Fund may be subject if:

(1) Conformance to the requirements of any federal agency in connection with any project with respect to which federal assistance is sought necessitates a waiver or variance of a regulation; or

(2) In the written determination of the Secretary, the:

(a) Application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act,

(b) Waiver would not be materially adverse to bondholders or others relying on the same reserves of the Fund, and

(c) Office of the Attorney General has approved the form and legal sufficiency of the waiver.

C. False Statements. A sponsor or lender who knowingly makes or causes to be made a false statement or report, whether in the nature of an understatement or overstatement of financial condition or any other fact material to the Department's action, is subject to cancellation of insurance, in addition to the criminal penalties authorized by the Act.

D. Delegation. The Secretary may delegate to the Director or to any other official or employee of the Department or the Fund the authority to execute or approve any program documents or loan documents, including commitments and letters of intent.

Md. Code Regs. 05.06.04.16