Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 260 - HOMEOWNER MORTGAGE REVENUE BOND PROGRAM › Subpart D - PURCHASE OF MORTGAGE LOANS › Section 260.403 - Terms and Conditions of the Purchase of Mortgage Loans

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Authority or its designee shall
				purchase Mortgage 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 Mortgage
				Loans to be sold under the Mortgage Purchase Agreement as the Authority or its
				designee shall require. These warrantees shall include, but are not limited to,
				the following:
1) The mortgagor is an
				Eligible Borrower;
2) The purchase
				price of the Qualified Dwelling subject to the Mortgage Loan does not exceed
				any maximum purchase price limitations established by the Authority;
3) The Mortgage 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 or its designee and secured by
				a Mortgage on the Qualified Dwelling; both the note and the Mortgage are the
				legal, valid and binding obligations of the makers and mortgagors and are
				enforceable in accordance with their terms, unless enforcement is limited by
				laws affecting the enforcement of creditors' rights generally, if all parties
				to each Mortgage Loan had full legal capacity to execute all Mortgage Loan
				documents at the time of execution;
4) The Mortgage, the Uniform Commercial Code
				Form 1 and Form 2 financing statements, if any, 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 them to all
				subsequent purchasers or encumbrancers;
5) The Lender, being the sole owner and
				holder of the Mortgage Loan, has full right to sell and assign the Mortgage
				Loan to the Authority or its designee and that assignment conveys a good and
				marketable mortgagee's title to the Authority or its designee 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 or its designee
				prior to purchase of the Mortgage Loan;
6) The Mortgage creates a valid and existing
				first mortgage lien on the Qualified Dwelling to secure the Mortgage Loan,
				unless otherwise authorized by the Authority or its designee; the term "first
				mortgage lien" means classes of first liens commonly given to secure loans on
				real estate under the laws of the State;
7) The Lender has not modified in any respect
				and has not satisfied, canceled, subordinated or compromised in whole or in
				part the Mortgage 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 Mortgage Loan and the Mortgage securing the Mortgage
				Loan shall not have been waived, altered or modified in any respect that would
				materially affect the validity or enforceability of the Mortgage Loan or the
				security of the lien of the Mortgage;
8) The real property securing the Mortgage
				Loan is a Qualified Dwelling;
9)
				The Qualified Dwelling is covered by a valid and existing policy of homeowner's
				property and casualty insurance meeting the requirements of the Authority or
				its designee;
10) The Lender has
				complied as follows:
A) as to each
				FHA-insured Mortgage Loan, with the National Housing Act (
				12
				USC 1701 et seq.) as amended and
				supplemented, all rules and regulations issued under the National Housing Act
				and all administrative publications. The FHA insurance shall be in full force
				and effect and, upon purchase by the Authority or its designee of the Mortgage
				Loan, shall inure to the benefit of the Authority or its designee;
B) as to each Mortgage Loan guaranteed by the
				VA or FmHA, with the Servicemen's Readjustment Act (
				38
				USC 1803 et seq.), the Consolidated Farm and
				Rural Development Act (
				7 USC 1921
				et seq.), Title V of the Housing Act of 1949 (
				42 USC
				1471 -
				1482 ) or other
				applicable federal law, as amended and supplemented, all rules and regulations
				issued under those laws and all administrative publications. Any such guaranty
				shall be in full force and effect and, upon purchase by the Authority or its
				designee of the Mortgage Loan, shall inure to the benefit of the Authority or
				its designee; and
C) as to each
				Mortgage Loan insured by a private mortgage insurance company, with all rules
				and requirements of that company. Any such insurance shall be in full force and
				effect and, upon purchase by the Authority or its designee of the Mortgage
				Loan, shall inure to the benefit of the Authority or its designee;
11) The Mortgage Loan is covered
				by a fully paid mortgagee's title insurance policy in such form as the
				Authority or its designee may require and under which the Authority or its
				designee is a loss payee; and
12)
				To the best of Lender's information, knowledge and belief, no condition exists
				that would prohibit the purchase of the Mortgage Loan by the Authority or its
				designee under all applicable rules, regulations and contractual
				provisions.