825 R.I. Code R. 825-RICR-20-00-1.2

Current through December 3, 2024

Section 825-RICR-20-00-1.2 - DEFINITIONS

A. "Act" means the Housing and Mortgage Corporation Act set forth in R.I. Gen. Laws Chapter 42-55, as amended.

B. "Aggregate Family Income" means the aggregate total of the family income, as defined by the Tax Act, of anyone required by the Tax Act to be taken into account for purposes of determining eligibility under a Program.

C. "Board of Commissioners" means the Board of Commissioners of the Corporation.

D. "Bond Proceeds" means proceeds from bonds issued pursuant to a Program.

E. "Borrower" means persons satisfying the Eligibility Criteria set forth in § 1.4 of this Part and party to a Mortgage Loan. The term "Borrower" shall include cooperative housing corporations organized under the laws of the State of Rhode Island that are eligible to receive financing from Bond Proceeds. The term "Borrower" shall also include governmental units or 501(c)(3) organizations to the extent permitted by the Act, the Tax Act and the Corporation.

F. "Closing of the Mortgage Loan" means the date the Mortgage Loan documents are executed by a Borrower or on its behalf.

G. "Corporation" means Rhode Island Housing and Mortgage Finance Corporation, a public corporation organized and existing under the Act.

H. "Fair Market Value" means

1. with respect to a New Dwelling or existing dwelling, the lower of

a. the value of a dwelling as determined by a qualified appraiser acceptable to the Corporation, or

b. the sale price plus the cost of any improvements to be financed by the Mortgage Loan; and

2. with respect to a rehabilitated dwelling, the sale price, plus the cost of any improvements to be financed by the Mortgage Loan.

I. "FHLMC" means the Federal Home Loan Mortgage Corporation, a corporation organized and existing under the laws of the United States of America.

J. "FNMA" means the Federal National Mortgage Association, an agency of the United States government.

K. "Mortgage Lender" means an institution engaged in the business of lending which:

1. meets the qualifications of the Program as set forth in this Part.

2. has executed a Mortgage Purchase Agreement with the Corporation and

3. submits or has heretofore submitted a proposal for making Qualified Mortgages which proposal is or has previously been accepted by the Corporation.

L. The term "Mortgage Lender" shall also include governmental units or 501(c)(3) organizations to the extent permitted by the Act, the Tax Act and the Corporation.

M. "Mortgage Loan" means a loan to a Borrower evidenced by a promissory note and secured by a mortgage deed or other instrument constituting a lien on improvements and real property in fee simple. For purposes of this Part:

1. a loan to a qualified Borrower secured by a share certificate or membership certificate in a cooperative housing corporation and/or a proprietary lease,

2. a loan by a lessor with an option to purchase secured by an assignment of the option or

3. an installment sale contract secured by an assignment of the sales contract shall constitute a Mortgage Loan.

N. "Mortgage Purchase Agreement" means a mortgage purchase agreement between the Corporation and a Mortgage Lender by which the Mortgage Lender agrees to originate, sell, transfer and assign Qualified Mortgages to the Corporation from time to time upon certain terms and conditions.

O. "New Dwelling" means a one to four family residential dwelling unit which, on the date the Corporation or a Mortgage Lender makes a Qualified Mortgage with respect thereto, has not been previously occupied. A One Unit New Dwelling may be a single condominium or cooperative unit.

P. "One, Two, Three or Four Unit Existing Family Dwelling" means real estate upon which is located or to be located a structure or structures consisting of dwelling units for one (1), two (2), three (3) or four (4) families, respectively, all of which shall be used primarily for residential purposes only. A One Unit Existing Family Dwelling may be a single condominium or cooperative unit. The term "Dwelling" shall be deemed to refer collectively to One, and to the extent permitted by the Act, the Tax Act and resolutions of the Board of Commissioners, Two, Three and Four Unit Existing Family Dwellings including Dwellings to be rehabilitated and units in a condominium or a cooperative housing corporation development.

Q. "Program" means any one of the Corporation's programs of purchasing or making Qualified Mortgages with Bond Proceeds and with other funds available for such purpose or any program of the Corporation involving the making of direct loans to qualified Borrowers. The term "Program" shall be broadly construed to include any program of pro-viding financing for the lease, acquisition and/or rehabilitation of housing by persons and families of low and moderate income which the Corporation is authorized to engage in under the Act and the Tax Act, which Program the Corporation establishes by Program Bulletin.

R. "Program Bulletin" means a bulletin issued by the Corporation implementing a Program or resolving any ambiguity in this Part, with respect to a Program or Programs. Program Manuals, Mortgage Lender's Manuals and similar documents issued by the Corporation shall constitute Program Bulletins for purposes of this Part. Copies of all Program Bulletins shall be maintained by the Corporation at its principal office, and shall be available for inspection and copying between the hours of 9:00 a.m. and 5:00 p.m. on Mondays through Fridays, except holidays.

S. "Qualified Mortgage" means a Mortgage Loan endorsed for insurance or guaranty by the Federal Housing Administration, Farmers' Home Administration, Veterans Administration, under a program of self-insurance established by the Corporation or through any subsidiary of the Corporation, or a Mortgage Loan otherwise eligible to be originated or financed for purchase by the Corporation pursuant to this Part.

T. "Registration" means a reservation for available funds submitted by a Mortgage Lender. Registrations may be submitted by fax or mail as the case may be.

U. "Residential Use" means used primarily as the principal residence by the owner, owners or occupants thereof, as well as any incidental use of a Dwelling consistent with the Tax Act.

V. "Servicer" means any bank, credit union, loan and investment company, trust company, savings bank, national banking association, savings and loan association, building-loan association, life insurance company, mortgage banking company or other entity authorized to transact business in the State, which satisfies the Corporation's requirements under this Part and which shall execute a Servicing Agreement. The term "Servicer" shall also include governmental units or 501(c)(3) organizations to the extent permitted by the Act, the Tax Act and the Corporation.

W. "Servicing Agreement" means a contractual arrangement of the Corporation with a Servicer for the servicing of Qualified Mortgages, including the collection and deposit of payments, accounting for interest and principal payments and proper applications of escrow payments and containing such other terms and conditions as the Corporation may deem appropriate.

X. "State" means the State of Rhode Island and Providence Plantations.

Y. "Tax Act" means the Internal Revenue Code of 1986, as amended, the rules and regulations promulgated or deemed to be promulgated thereunder as now in effect or as may be promulgated and from time to time amended, and any corresponding provision of prior or future federal tax laws that apply to a Program.

825 R.I. Code R. 825-RICR-20-00-1.2