Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 366 - AFFORDABLE HOUSING BOND PROGRAM - SINGLE FAMILY › Subpart E - PURCHASE OF LOANS › Section 366.502 - Terms and Conditions of the Purchase of Loans

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Authority shall purchase Loans on the
				terms and conditions and in the manner prescribed in the Mortgage Purchase
				Agreement. The Mortgage Purchase Agreement shall contain such warranties of the
				Lender in connection with the Loans to be sold thereunder as the Authority
				shall require, and shall include, among others, the following warranties:
1) The mortgagor is an Eligible
				Borrower;
2) The Loan is evidenced
				by a properly executed promissory note made payable or assigned to the order of
				the Lender, endorsed by the Lender to the Authority and is secured by a
				Mortgage on the Qualified Dwelling; both the note and the Mortgage are the
				legal, valid, and binding obligations of their makers and mortgagors and are
				enforceable in accordance with their terms, except only as such enforcement may
				be limited by laws affecting the enforcement of creditors' rights generally;
				and all parties to each Loan had full legal capacity to execute all Loan
				documents at the time of execution;
3) The Mortgage and any other document
				required to be filed in a public office to perfect the mortgage lien against
				third parties have been duly and timely filed, registered, or recorded by the
				Lender in the proper public office in order to give constructive notice of such
				mortgage lien to all subsequent purchasers or encumbrancers;
4) The Lender, as the sole owner and holder
				of the Loan, has full right to sell and assign the Loan to the Authority and
				such assignment conveys a good and marketable mortgagee's title to the
				Authority free and clear of all liens and encumbrances and subject only to real
				property taxes and assessments not yet due and encumbrances customarily
				accepted in accordance with applicable title standards and disclosed to the
				Authority prior to purchase of the Loan;
5) The Mortgage creates a valid and existing
				first mortgage lien on the Qualified Dwelling to secure the Loan, subject to
				easements and other matters affecting title generally acceptable to lenders
				making mortgage loans in the State;
6) The Lender has not modified in any respect
				and has not satisfied, canceled, subordinated, or compromised in whole or in
				part the Loan indebtedness and has not released the mortgaged property in whole
				or in part from the lien of the indebtedness evidenced by the note and secured
				by the Mortgage, and the terms, covenants, and conditions of the note
				evidencing the Loan and the Mortgage securing the Loan have not been waived,
				altered, or modified in any respect that would materially affect the validity
				or enforceability of the Loan or the security of the lien of the
				Mortgage;
7) The real property
				securing the Loan is a Qualified Dwelling;
8) The Qualified Dwelling is covered by a
				valid and existing policy of hazard insurance meeting the requirements of the
				Authority;
9) The Lender has
				complied as follows:
A) as to each FHA-insured
				Loan, with the National Housing Act, 12 U.S.C. Section 1701 et seq., as amended
				and supplemented, all rules and regulations issued thereunder and all
				administrative publications. The FHA insurance shall be in full force and
				effect and, upon purchase by the Authority of the Loan, shall inure to the
				benefit of the Authority;
B) as to
				each Loan guaranteed by the USVA or RECD, with the Servicemen's Readjustment
				Act, 38 U.S.C. Section 1803 et seq., the Consolidated Farm and Rural
				Development Act, 7 U.S.C. Section 1921 et seq., Title V of the Housing Act of
				1949, 42 U.S.C. Sections 1471 - 1482, or other applicable federal law as
				amended and supplemented, all rules and regulations issued thereunder and all
				administrative publications. Any such guaranty shall be in full force and
				effect and, upon purchase by the Authority of the Loan, shall inure to the
				benefit of the Authority; and
C) as
				to each Loan insured by a private mortgage insurance company, with all rules
				and requirements of such company. Any such insurance shall be in full force and
				effect and, upon purchase by the Authority of the Loan, shall inure to the
				benefit of the Authority;
10) The Loan is covered by a fully paid
				mortgagee's title insurance policy in such form as the Authority may require;
				and
11) To the best of Lender's
				information, knowledge and belief, no condition exists that would prohibit the
				purchase of the Loan by the Authority under all applicable rules, regulations
				and contractual provisions.