Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 260 - HOMEOWNER MORTGAGE REVENUE BOND PROGRAM › Subpart A - GENERAL RULES › Section 260.103 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
As used in this Part, the following words or terms
				  mean:
"Act": The Illinois Housing Development Act [20 ILCS 3805
				  ].
"Assistant Director": The Assistant Executive Director of the
				  Authority.
"Authority": The Illinois Housing Development
				  Authority.
"Bonds": The Homeowner Mortgage Revenue Bonds issued by the
				  Authority pursuant to the Act from time to time to finance the Program.
"Code": The Internal Revenue Code of 1986 (26 USC), as
				  amended and supplemented, and the regulations promulgated by the Treasury
				  Department (26 CFR).
"Deputy Director": The Deputy Executive Director of the
				  Authority.
"Director": The Executive Director of the Authority.
"Eligible Borrower": A person:
who is or will be a resident of the State within 60 days
				  after the closing of his or her purchase of a Qualified Dwelling;
whose Household Income does not exceed the Maximum
				  Income;
who intends to use the Qualified Dwelling being financed by a
				  Mortgage Loan as his or her permanent residence within 60 days after the
				  closing of the Mortgage Loan;
who occupies or intends to occupy as a single household the
				  Qualified Dwelling purchased or being purchased as a permanent residence;
				  and
who at no time during the 3-year period ending on the date of
				  closing of the Mortgage Loan had a present ownership interest in his or her
				  principal residence.
An Eligible Borrower who purchases a Targeted Area Residence
				  or a Qualified Rehabilitation Residence, or who qualifies under any other
				  provision of the Code, is exempt from the 3-year requirement of this
				  definition. For purposes of this definition, the Eligible Borrower's interest
				  in the Qualified Dwelling financed under this Program shall not be taken into
				  account.
A residence that is used as an investment property or a
				  recreational home, or that is primarily intended to be used in a trade or
				  business (including, without limitation, any residence of which more that 15%
				  of the total area is reasonably expected to be used primarily in a trade or
				  business), does not satisfy the requirements of this paragraph.
"FHA": The Federal Housing Administration.
"FHLMC": The Federal Home Loan Mortgage Corporation.
"FmHA": The Farmer's Home Administration.
"FNMA": The Federal National Mortgage Association.
"Household Income": The total annualized gross income of the
				  Eligible Borrowers, and any other person who is expected to live in the
				  Qualified Dwelling and be secondarily liable on the Note, all persons residing
				  or intending to reside as a single household in a Qualified Dwelling, from
				  whatever source derived and before taxes or withholdings; provided that if a
				  married person takes title to the Qualified Dwelling individually the income of
				  the spouse shall also be included.
"Lender": A State-chartered bank, national banking
				  association, mortgage banking association or institution, credit union, or
				  State or federal savings and loan association:
that is located and qualified to do business in the
				  State;
that is qualified to originate and/or sell mortgages to FNMA,
				  FHLMC, and/or approved by FHA to originate loans (this requirement may be
				  waived by the Director after determination that the assets of the Lender exceed
				  $500,000, that the percentage of mortgage delinquencies in the Lender's single
				  family portfolio do not exceed 2.15 times the Statewide average as determined
				  by the last quarterly pronouncement by the United States Federal Home Loan Bank
				  Board and that the Lender has an asset-to-liability ratio of at least
				  1.01:1);
the deposits of which are insured by the Federal Deposit
				  Insurance Corporation or the National Credit Union Administration, or which
				  deposits its funds in Illinois financial institutions whose deposits are
				  insured by the Federal Deposit Insurance Corporation; and
whose Lender Application has been accepted by the Director,
				  Deputy Director, Assistant Director or Managing Director based upon the
				  satisfaction of the requirements of the Series Program under which the Lender
				  has submitted the Lender Application and a determination of financial
				  suitability after consideration of the net assets, lending capacity, and
				  experience of the potential Lender over the past 12 months in residential
				  mortgage lending. The Authority may also be a Lender.
"Lender Application": A prospective Lender's application to
				  sell Mortgage Loans to the Authority or participate in the Authority's Programs
				  pursuant to the terms of a Mortgage Purchase Agreement and other Series Program
				  documents.
"Managing Director": A Managing Director of the
				  Authority.
"Maximum Income": Unless otherwise permitted by the Code,
				  115% of the median family income of either the metropolitan statistical area or
				  primary metropolitan statistical area in which the Qualified Dwelling is
				  located or the State, whichever is greater, as determined by the Internal
				  Revenue Service.
"Members": The Members of the Authority.
"Mortgage": The mortgage, or other instrument in the nature
				  of a mortgage, creating a first mortgage lien on a fee interest in real estate,
				  together with all supplements, modifications or amendments to it.
"Mortgage Loan": A loan made by a Lender to an Eligible
				  Borrower for the purchase of a Qualified Dwelling and secured by a Mortgage on
				  the Qualified Dwelling. No Mortgage Loan shall be a replacement or refinancing
				  of an existing mortgage loan except in the case of a Qualified Rehabilitation
				  Loan or other temporary loans, as permitted by section 143 of the Code.
"Mortgage Purchase Agreement": The agreement, including any
				  amendments or supplements to the agreement, between the Authority and a Lender
				  pursuant to which the Authority or its designee agrees to purchase Mortgage
				  Loans from the Lender on the terms and conditions set forth in the agreement
				  and that establishes the requirements for Mortgage Loans to be purchased by the
				  Authority or its designee, or otherwise allows participation in the Authority's
				  Programs.
"Net Proceeds": With respect to the proceeds of each series
				  of Bonds, all moneys made available by the Authority for the purchase of
				  Mortgage Loans.
"Notice of Acceptance": The Authority's notice to a Lender
				  accepting its Lender Application.
"This Part": This Part 260 (47 Ill. Adm. Code 260).
"Prepayment": Any moneys, however derived, that are received
				  or recovered by the Authority from any payment of, or with respect to,
				  principal on any Mortgage Loan prior to scheduled payments of principal
				  required under that Mortgage Loan.
"Private Mortgage Insurance": Insurance coverage paid for by
				  the Eligible Borrower that insures the Authority against losses with respect to
				  defaults on a Mortgage Loan according to the terms of the insurance policy. The
				  Authority may provide Private Mortgage Insurance or its equivalent.
"Programs": The Authority's single family mortgage purchase
				  programs that are funded with proceeds of Bonds issued after the date of the
				  adoption of the Resolution, or any other source of funds available to the
				  Authority.
"Property Value": The lesser of the purchase price or the
				  appraised value of the Qualified Dwelling at the time of the origination of the
				  Mortgage Loan secured by that Qualified Dwelling.
"Qualified Dwelling": A fee simple interest in real
				  property:
that is located in the State;
upon which there is located a structure or structures
				  designed for residential use;
that is a single family residence; a condominium unit meeting
				  the requirements of the Mortgage Purchase Agreement; a one-, two-, three- or
				  four-unit structure meeting the requirements of the Code; or factory-made
				  housing that is permanently fixed to real property;
of which not more than 15% of the total area is reasonably
				  expected to be used primarily in a trade or business; and
that can reasonably be expected to become the principal
				  residence of the Eligible Borrower within a reasonable time after financing is
				  provided. For purposes of this paragraph, a "reasonable time after financing is
				  provided" shall be deemed to be a period within 60 days after closing of the
				  Mortgage Loan. This period may be extended if the Authority determines that
				  undue hardship to the Eligible Borrower or Lender or an unreasonable result
				  will otherwise occur.
"Qualified Rehabilitation Loan": A Mortgage Loan for the
				  purchase of a Qualified Rehabilitation Residence. An Eligible Borrower for a
				  Qualified Rehabilitation Loan must be the first resident of the Qualified
				  Rehabilitation Residence after the completion of the rehabilitation.
"Qualified Rehabilitation Residence": A qualified Dwelling
				  for which there has been a qualified rehabilitation, as defined in section 143
				  of the Code.
"Resolution": The Authority's Homeowner Mortgage Revenue
				  Bonds General Resolution setting forth the general terms and conditions under
				  which the Authority may issue, deliver and sell Bonds.
"Rules": The rules of the Authority, as amended and
				  supplemented from time to time (generally 47 Ill. Adm. Code Chapter II).
"Series Program": A mortgage purchase program authorized by a
				  Series Resolution to become a part of the Program.
"Series Resolution": A resolution issued pursuant to the
				  Resolution authorizing the Authority to conduct a Series Program and to issue
				  Bonds to provide financing of Mortgage Loans under the Series Program.
"Servicer": A Lender, or its designated Servicer, that has
				  been approved by the Director, Deputy Director or Assistant Director as a
				  Servicer and that has executed a Servicing Agreement with the Authority. The
				  Authority may also be a Servicer. A designated Servicer other than the
				  Authority must:
be a State-chartered bank, national banking association,
				  mortgage banking association or institution, credit union, State or federal
				  savings and loan association or mortgage servicing company;
be qualified to do business in the State;
be qualified to service mortgages sold to the Authority or
				  its designee, FNMA and/or FHLMC, or insured by FHA, unless this requirement is
				  waived by the Director based upon a determination of financial suitability made
				  by the Director after consideration of the net assets, servicing capacity, and
				  experience of the potential Servicer over the past 12 months in residential
				  mortgage servicing; and
have deposits insured by the Federal Deposit Insurance
				  Corporation or the National Credit Union Administration, or deposit its funds
				  in Illinois financial institutions whose deposits are insured by the Federal
				  Deposit Insurance Corporation.
"Servicing Agreement": The agreement between a Servicer and
				  the Authority (except when the Authority is the Servicer) that sets forth the
				  terms and conditions for the servicing of Mortgage Loans purchased by the
				  Authority or its designee.
"Staff": The Director, Deputy Director, Assistant Director,
				  any Managing Directors and employees of the Authority.
"State": The State of Illinois.
"Supplemental Mortgage Coverage": The coverage, if required
				  by a Series Resolution, whether in the form of insurance, a letter of credit, a
				  guarantee, pledged funds or other forms of coverage, of losses incurred from
				  Mortgage Loan defaults under that Series Program. Supplemental Mortgage
				  Coverage may supplement other mortgage insurance and may include any insurance
				  or reserve fund funded by the Authority.
"VA": The United States Department of Veterans
				  Affairs.