Illinois Administrative Code › Title 47 - HOUSING AND COMMUNITY DEVELOPMENT › Part 300 - HOMEOWNERSHIP MORTGAGE LOAN PROGRAM › Subpart C - PURCHASE OF MORTGAGE LOANS › Section 300.303 - 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 warranties shall include, but are not limited to,
				the following:
1) The mortgagor is an
				Eligible Borrower;
2) The original
				principal amount of the Mortgage Loan does not exceed any maximum loan amount
				established by the Authority;
3)
				The Mortgage Loan is evidenced by a properly executed 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 is 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 Note or 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 with the rules
				and requirements of the applicable insurance program, so that the Mortgage
				Loans to be purchased are Insured and the insurance is in full force and effect
				and inures 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.