Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 300 - HOMEOWNERSHIP MORTGAGE LOAN PROGRAM › Subpart A - GENERAL RULES › Section 300.103 - 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 Bonds issued by the Authority pursuant to the
				  Act from time to time under any resolution of the Authority or indenture
				  pursuant to which Authority Bonds may be issued to finance or refinance
				  Mortgage Loans under the Program, as amended or supplemented.
"Code": The Internal Revenue Code of 1986 (26 USC), as
				  amended and supplemented, and the regulations promulgated by the Treasury
				  Department from time to time under that statute (26 CFR). References to a
				  section of the Code include all regulations promulgated by the Treasury
				  Department under that section.
"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 the later of
				  60 days after the closing of the purchase of a Qualified Dwelling and, in the
				  case of a Qualified Dwelling upon which residential structures are to be
				  substantially renovated or constructed by the Eligible Borrower following its
				  purchase, within 60 days after the substantial completion of renovation or
				  construction, but in any event within 270 days after the closing of the
				  purchase of the Qualified Dwelling, and whose Household Income does not exceed
				  the Maximum Income;
who occupies, or intends to occupy, as a single household the
				  Qualified Dwelling financed, or being financed or refinanced, by a Mortgage
				  Loan as his or her permanent residence within 60 days after the later of the
				  closing of the Mortgage Loan and, in the case of a Qualified Dwelling upon
				  which residential structures are to be substantially renovated or constructed
				  by the Eligible Borrower following its purchase, within 60 days after the
				  substantial completion of renovation or construction, but in any event within
				  270 days after the closing of the Mortgage Loan.
The foregoing time periods may be extended in particular
				  instances if the Authority determines that undue hardship to the Eligible
				  Borrower or an unreasonable result will otherwise occur.
"FHA": The Federal Housing Administration.
"FHLMC": The Federal Home Loan Mortgage Corporation.
"FNMA": The Federal National Mortgage Association.
"GNMA": The Government National Mortgage Association.
"Household Income": The total income of any person who is
				  expected to:
live in the Qualified Dwelling; and
be liable, or secondarily liable, on the Note.
For purposes of this definition, a "person" must also be an
				  Eligible Borrower; however, the Authority shall not be required to include the
				  income of each Eligible Borrower. The income of any Eligible Borrower not
				  liable, or secondarily liable, on the Note may be excluded.
"Insured": A Mortgage Loan that is insured by Private
				  Mortgage Insurance, by insurance provided by FHA, VA or USDA, or by insurance
				  under a comparable government insurance program approved by the Members by
				  resolution and acceptable to GNMA, FNMA or FHLMC, as applicable.
"Lender": A bank, trust company, savings bank, savings and
				  loan association, credit union, national banking association, mortgage banking
				  association, federal savings and loan association or federal credit unit
				  maintaining an office in the State, any insurance company, or any other entity
				  or organization that makes or acquires loans secured by real property:
that is located and qualified to do business in the
				  State;
that meets the conditions and requirements of the applicable
				  Mortgage Purchase Agreement and that meets the requirements of the applicable
				  insurer, if any, and FNMA, FHLMC or GNMA, as and to the extent applicable, as
				  issuer and/or guarantor of Mortgage-Backed Securities; and
that is approved by the Director, Deputy Director or Managing
				  Director in writing, with notice of approval to be provided to the Members
				  within a reasonable period of time. Approval of any Lender may be withdrawn at
				  any time by the Director, Deputy Director or Managing Director in writing, with
				  notice of the withdrawal to be provided to the Members within a reasonable
				  period of time.
"Lender Application": A prospective Lender's application to
				  sell Mortgage Loans to the Authority or participate in the Program pursuant to
				  the terms of a Mortgage Purchase Agreement and other Program documents.
"Low and Moderate Income Persons": Families and persons whose
				  income does not exceed the Maximum Income and who cannot afford to pay, or
				  qualify for a mortgage loan to finance or refinance, the amounts at which
				  private enterprise, without assisted mortgage financing, is providing a
				  substantial supply of decent, safe and sanitary housing.
"Managing Director" means the Managing Director or Director,
				  as the case may be, of the Authority's Homeownership Programs
				  Department.
"Maximum Income": Unless otherwise permitted or required by
				  the Code, 120% 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.
"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
				  Program.
"Mortgage-Backed Security": A single pool, guaranteed
				  mortgage pass-through security issued and guaranteed by FNMA, a single pool,
				  guaranteed mortgage pass-through certificate issued and guaranteed by FHLMC, or
				  a mortgage pass-through certificate guaranteed by GNMA pursuant to its
				  mortgage-backed securities program under section 306(g) and related provisions
				  of the National Housing Act of 1934 (
				  12
				  USC 1701 ), as amended, or any similar
				  successor statutory authority.
"Note": The promissory note evidencing a Mortgage Loan and
				  secured by a Mortgage on a Qualified Dwelling with respect to which assisted
				  Mortgage financing is provided by the Authority under the Program.
"Notice of Acceptance": The Authority's notice to a Lender
				  accepting its Lender Application.
"Prepayments": 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 or Mortgage-Backed Security prior to scheduled
				  payments of principal required under that Mortgage Loan or Mortgage-Backed
				  Security.
"Private Mortgage Insurance": Insurance coverage paid for by
				  the Eligible Borrower that insures against losses with respect to defaults on a
				  Mortgage Loan according to the terms of the insurance policy. The insurer and
				  the terms of the insurance policy must be approved by FNMA or FHMLC or by the
				  Director, Deputy Director or Managing Director in writing.
"Program": The Authority's Homeownership Mortgage Loan
				  Program under which the Authority provides assisted Mortgage financing to Low
				  and Moderate Income Persons to finance or refinance their purchase of Qualified
				  Dwellings, funded with proceeds of Bonds or any other source of funds available
				  to the Authority.
"Program Funds": All moneys made available by the Authority
				  for the purchase of Mortgage Loans under the Program, from whatever source
				  derived.
"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 or, if the real property is unimproved, upon which
				  construction of that structure or structures for residential use has begun or
				  will commence within 60 days after the closing of the Eligible Borrower's
				  purchase of the property and can reasonably be expected to be completed within
				  270 days after the closing of the Eligible Borrower's purchase of the
				  property;
that is a single family residence; a condominium; a one-,
				  two-, three- or four-unit residential structure, one unit of which is occupied
				  by the owner of the structure; 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 is, at the time financing or refinancing is provided,
				  the principal residence of the Eligible Borrower or can reasonably be expected
				  to become the principal residence of the Eligible Borrower within a reasonable
				  time after financing or refinancing is provided. For purposes of this
				  definition, a "reasonable time after financing or refinancing is provided"
				  shall be deemed to be a period within 60 days after the later of the closing of
				  the Mortgage Loan and, in the case of a Qualified Dwelling upon which
				  residential structures are to be substantially renovated or constructed by the
				  Eligible Borrower following its purchase, within 60 days after the substantial
				  completion of renovation or construction but in any event within 270 days after
				  the closing of the Mortgage Loan. The foregoing time periods may be extended by
				  the Authority if the Authority determines that undue hardship to the Eligible
				  Borrower or an unreasonable result will otherwise occur.
Not included in this definition is a residence that
				  is:
used as an investment property;
a recreational home; or
primarily intended to be used in a trade or business,
				  including, without limitation, any residence of which more than 15% of the
				  total area is reasonably expected to be used primarily in a trade or
				  business.
"Rules": The rules of the Authority, as amended and
				  supplemented from time to time (generally 47 Ill. Adm. Code Chapter II).
"Servicer": A Lender, acting in the capacity of a Mortgage
				  loan servicer, a financial institution, a Mortgage banking organization, a
				  Mortgage servicing company, or a state agency or local government unit
				  organized under the laws of any state or territory of the United States of
				  America or the District of Columbia, that is qualified to service Insured
				  Mortgage Loans, is acceptable to GNMA, FNMA or FHLMC, as applicable, has been
				  approved by the Director, Deputy Director or Assistant Director as a Servicer,
				  and has executed a Servicing Agreement with the Authority. The Authority may
				  also be a Servicer.
"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. The term "Servicing Agreement" includes a master
				  agreement pursuant to which the Servicer services Mortgage Loans originated by
				  more than one Lender.
"Staff": The Director, Deputy Director, Assistant Director,
				  and employees of the Authority.
"State": The State of Illinois.
"Tax-exempt": With respect to Bonds the interest on which the
				  Authority intends to be tax-exempt, the status of interest paid and received on
				  such Bonds as not includible in the gross income of their owners under the Code
				  for federal income tax purposes, with such general exceptions as may be
				  provided from time to time in the Code (for example and without limitation, the
				  alternate minimum tax applicable to individuals or corporations or the "branch
				  profits tax" imposed on certain corporations).
"This Part": 47 Ill. Adm. Code 300.
"USDA": The United States Department of Agriculture, Rural
				  Housing Service, or any successor agency under the Section 502 Guaranteed Rural
				  Housing Loan Program or any similar replacement program.
"VA": The United States Department of Veterans
				  Affairs.