reglab/statecodes huggingface dataset:
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 9.00 - Neighborhood Preservation Area Program › Section 9.02 - Eligible Applicants

Current through Register 1525, July 5, 2024
MHMFA will encourage and accept preliminary applications from towns and cities, local financial institutions, community and neighborhood groups, and non-profit corporations concerned with housing and community development or other interested institutions and groups. However, every application must contain commitments from the municipality, local financial institutions, and neighborhood organizations. These commitments should be specific as possible. There must be an indication of a willingness to:
(a) participate in the development of a neighborhood preservation program and
(b) play a tangible role in the eventual implementation of the Neighborhood Preservation Program. Therefore, while any interested party may initiate the application process, approval of an application by MHMFA requires the active participation of each essential component -- the neighborhood, the municipality, and the financial institutions.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 9.00 - Neighborhood Preservation Area Program › Section 9.03 - Stages in the Designation of a NPA

Current through Register 1525, July 5, 2024
(1)
Preliminary Stage
. Once MHMFA receives the application, the staff will review the available data and determine if the neighborhood meets the criteria outlined below. If preliminary approval is given, a site visit and meeting with potential program participants will be arranged. The application will be submitted for review by DCA and approval of the MHMFA Board of Directors.
(2)
Negotiation Stage
. MHMFA and local participants will negotiate specific roles and timetables for each contributor to the Neighborhood Preservation Area Program. Since the needs of any given neighborhood and the potential roles of participants will vary from one neighborhood to another, there will be no standard format for final agreements. Once mutually acceptable commitments are developed, contracts will be executed and the application approved.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 9.00 - Neighborhood Preservation Area Program › Section 9.04 - Role of MHMFA in the Neighborhood Preservation Area

Current through Register 1525, July 5, 2024
MHMFA will coordinate negotiations and communication between local participants in the Neighborhood Preservation Area. MHMFA will also issue tax-exempt bonds to finance the purchase of Loan Participations in Mortgage Loans originated by local Mortgage Lenders in the Neighborhood Preservation Area. An application to a local Mortgage Lender for a Mortgage Loan on a property within the NPA will be evaluated according to the same criteria established by MHMFA for all Mortgage Loans in which the Agency will purchase Loan Participations.
MHMFA does not currently have the financial resources to provide extensive technical assistance in the development of a Neighborhood Preservation Area nor to fund the implementation of local components of the preservation programs. The NPA program can probably most effectively be used to increase the effectiveness of an existing local program or to stimulate the development and funding from other sources of local neighborhood preservation plans. Programs which could compatibly be used with MHMFA neighborhood preservation programs include:
(a) the Department of Community Affairs Neighborhood Improvement Program (NIP),
(b) Urban Reinvestments Task Force, Neighborhood Housing Service Programs, and
(c) local housing improvement plans funded through Community Development Block Grant funds or federal "312" funds.
Applicants are not limited to the above programs and are encouraged to explore every possible resource available to the local community to develop a program uniquely tailored to the need of the designated neighborhood.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 9.00 - Neighborhood Preservation Area Program › Section 9.05 - Neighborhood Preservation Area Requirements

Current through Register 1525, July 5, 2024
The following requirements must be met before a NPA will be approved by MHMFA:
(1) Local Mortgage Lenders must submit or be willing to submit a commitment application to MHMFA requesting a "setaside" for mortgages originated within the Neighborhood Preservation Area (See MHMFA Commitment Application) in an amount sufficient to improve or stabilize the NPA.
Further, participating Mortgage Lenders must indicate a commitment to make conventional mortgages to all creditworthy loan applicants from within the NPA whose incomes exceed the MHMFA maximum or who are otherwise not eligible for a mortgage in which MHMFA can purchase a Loan Participation.
(2) The municipal government must make specific commitments to:
(a) enforce the building and housing codes within the NPA;
(b) provide improved public services or facilities which are significant in relation to the objective of stabilizing or improving the area.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 9.00 - Neighborhood Preservation Area Program › Section 9.06 - MHMFA Evaluation of Applications

Current through Register 1525, July 5, 2024
MHMFA will utilize the following guidelines in evaluating a proposed NPA:
(1) the degree of blight, decay or deterioration of housing accommodations, or the imminent threat of such blight, decay or deterioration within the area;*
MHMFA will require that sufficient resources be committed to an NPA program to stabilize and preserve the area. Unless there are specific proposals for reversing serious blight, decay or deterioration, the NPA should be characterized by a preponderance of basically sound housing which may be beginning to show signs of lack of maintenance.
(2) the degree to which conventional financing or refinancing of the purchase, repair, remodeling or rehabilitation of housing within the NPA is available;*
The designation of an area as a NPA should increase the ability of current residents to obtain financing.
(3) the proportion of residential structures within the area which are owner-occupied;*
Since only owner-occupants are eligible for mortgages financed through MHMFA, a majority of the structures should be owner-occupied or at least appropriate for owner occupancy (i.e. 1 to 4 unit structures).
(4) the degree to which the income and the financial resources of current residents of the NPA provide reasonable assurances of the economic feasibility of the financing of the purchase, repairs, remodeling or rehabilitation of the housing within the NPA;*
In order to avoid displacement of current residents, a general guideline of a median income within the NPA equal to at least 80% of the median of the municipality will be utilized. NPA's with lower than 80% of the municipality median income will be considered if it can be demonstrated that residents of the NPA will be able to afford loans for the purchase and rehabilitation of housing within the area.
(5) the proportion of residential structures in the area where rehabilitation work can be done with financing as provided through the NPA without necessitating a substantial increase in carrying costs and rental charges to any owner-occupant or tenant beyond their capacity to absorb, and the extent of suitable vacant housing in such an area.*
The NPA should contain structures whose typical repair costs will not exceed the ability of current owner-occupants to meet MHMFA loan obligations and present tenants to meet increased rents.
* St. 1974 c. 846 §5 ¶ 10 (enabling legislation creating MHMFA).
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 10.00 - Statement Of Terms And Conditions › Section 10.02 - Commitment

Current through Register 1525, July 5, 2024
The Commitment Amount requested by any Seller shall be in a multiple of $50,000 with a minimum of $250,000 and a maximum of $2,500,000. The Commitment Amount shall equal 90% of the unpaid principal balance of the Mortgage Loans in which Loan Participations are offered for sale to MHMFA or contracted for purchase from the Seller, as the case may be. MHMFA shall specify in its Notice of Acceptance, if any, the Commitment Amount accepted and the portion of the Commitment Amount allocated to a Neighborhood Preservation Area, if such allocation was requested in the Commitment Application. Upon such acceptance, the Seller shall be obligated to deliver and sell to MHMFA Loan Participations in the Commitment Amount specified and to allocate the specified portion of the Commitment Amount for Loan Participations in Mortgage Loans financing the purchase or rehabilitation of property in such Neighborhood Preservation Areas.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 10.00 - Statement Of Terms And Conditions › Section 10.03 - Irrevocability of Commitment Application; Acceptance by MHMFA

Current through Register 1525, July 5, 2024
The Commitment Application and all obligations arising thereunder may not be revoked or withdrawn without the consent of MHMFA but shall terminate automatically if a Notice of Acceptance is not mailed (as evidenced by postmark) or delivered to the Seller by MHMFA within 30 days of the application deadline established by MHMFA. The Notice of Acceptance constitutes an agreement by MHMFA and by the Seller to execute the Loan Participation Agreement in accordance with the terms and conditions thereof.
In the event that MHMFA shall not accept all or part of the Commitment Amount requested by the Seller, MHMFA shall promptly refund to the Seller that part of the Commitment Fee submitted by the Seller in excess of one half of one percent of the Commitment Amount accepted by MHMFA. In the event that MHMFA shall accept the Commitment Application the Commitment Fee shall be retained by MHMFA except as provided in 761 CMR 10.05 hereof. The Commitment Fee shall be retained by MHMFA if the Seller shall fail to execute the Loan Participation Agreement or shall fail to deliver Loan Participations equal to the Commitment Amount prior to the end of the Delivery Period. In either of such events, the Agency also reserves its right to seek damages from the Seller to the extent losses incurred by the Agency exceed the Commitment Fee.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 10.00 - Statement Of Terms And Conditions › Section 10.04 - Loan Participation Agreement; Loan Servicing Agreement

Current through Register 1525, July 5, 2024
Upon receipt of the Notice of Acceptance, the Seller shall execute a Loan Participation Agreement and, unless other arrangements for servicing are requested and made as may be permitted by the terms of the Loan Participation Agreement, a Loan Servicing Agreement, in the forms furnished to Seller by MHMFA with the Notice of Acceptance.
The Seller shall mail or deliver to MHMFA, by the date specified by MHMFA, copies executed by it of the Loan Participation Agreement and the Loan Servicing Agreement. Upon receipt of said Agreements duly executed by the Seller and completion of the sale of Bonds, MHMFA shall execute said Agreements and deliver to the Seller or its agent an executed original counterpart thereof. Unless MHMFA shall receive, prior to the date of execution by MHMFA of such Agreements, written instructions to the contrary, the Seller hereby appoints the Trustee as its agent for receipt of the Loan Participation Agreement and the Loan Servicing Agreement.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 10.00 - Statement Of Terms And Conditions › Section 10.05 - Sale and Delivery of MHMFA Bonds

Current through Register 1525, July 5, 2024
MHMFA intends to obtain the funds to purchase Loan Participations from the proceeds of sale and delivery of its Bonds. If for any reason whatsoever Bonds in an amount sufficient to satisfy all accepted Commitment Amounts are not sold and delivered on or within 60 days of the execution of the Notice of Acceptance, MHMFA may either (a) terminate its obligation to execute a Loan Participation Agreement, in which case MHMFA shall return the Commitment Fee to the Seller and neither the Seller nor MHMFA shall be further obligated under the Commitment Application or (b) reduce the Commitment Amounts of any or all Sellers such that the aggregate of such reduced Commitment Amounts equals the sale proceeds of Bonds available to purchase Loan Participations, in which case MHMFA shall return to the Seller that part of the Commitment Fee in excess of one half of one percent of its reduced Commitment Amount.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 10.00 - Statement Of Terms And Conditions › Section 10.07 - Successors

Current through Register 1525, July 5, 2024
The Commitment Application and Notice of Acceptance and all obligations and rights thereunder shall bind and inure to the benefit of the Seller and MHMFA and their respective successors in interest.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 20.00 - Eligibility Guide › Section 20.01 - Eligible Seller/Servicer

Current through Register 1525, July 5, 2024
The Seller or Servicer of a Mortgage Loan in which MHMFA purchases a Loan Participation shall:
(1) be a corporation duly organized and validly existing under the Laws of the state or commonwealth in which it is organized and shall be in good standing in the Commonwealth of Massachusetts and shall have the power and authority, corporate and otherwise, to own its properties and carry on its business as now being conducted, and shall be duly qualified to do such business in the Commonwealth and wherever such qualification is required.
(2) be a Mortgage Lender as that term is defined in the Massachusetts Home Mortgage Finance Agency Act constituting St. 1974, c. 846, as amended;
(3) not be under any cease and desist order or other order of a similar nature, temporary or permanent, or any federal or state authority, not have any proceedings in progress or to its knowledge contemplated which would, if successful, lead to the issuance of any such order. Seller/Servicer shall maintain offices in The Commonwealth of Massachusetts;
(4) have obtained the consent or approval of any government instrumentality if such consent or approval is required for the Mortgage Lender to submit a Commitment Application or sell Loan Participations to MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 20.00 - Eligibility Guide › Section 20.02 - FNMA, FHLMC Approved Seller/Servicers

Current through Register 1525, July 5, 2024
(1) if the Mortgage Lender sells or services any FHA or VA Mortgage Loans for MHMFA under this Agreement, it is an approved seller and servicer of FHA insured or VA guaranteed Mortgage Loans to and for FHLMC or FNMA, or it has obtained a written waiver from MHMFA from the requirements of 761 CMR 20.02(1);
(2) if a Mortgage Lender sells or services any FHA Mortgage Loans for MHMFA under this Agreement, it is an FHA approved mortgagee;
(3) if a Mortgage Lender sells or services any VA Mortgage Loans from MHMFA under this Agreement, it is:
a. a "Supervised Lender" as classified by VA under Section 500 (d) of the Servicemen's Readjustment Act; or
b. an FHA approved mortgagee.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 20.00 - Eligibility Guide › Section 20.04 - Seller/Servicer to Satisfy FHA, VA and MI Insurance Requirements

Current through Register 1525, July 5, 2024
Under the Servicing Agreement and the Loan Participation Agreement, Seller or Servicer is obligated to satisfy and comply with all requirements of the FHA, VA or private mortgage insurance with respect to Mortgage Loans serviced for MHMFA and in which MHMFA purchases a Loan Participation. Elsewhere in this Operations Manual, reference to FHA, VA and private mortgage insurance requirements is made and some guidance is given as to the nature of the requirements. However, it is Seller or Servicer's responsibility to see that all applicable FHA, VA or private mortgage insurance requirements are satisfied, so that the full benefit of the FHA insurance, VA guaranty or private insurance shall inure to MHMFA and Seller, as their interest appear.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 20.00 - Eligibility Guide › Section 20.05 - Conflicts of Interest; Seller or Servicer's Access to Privileged Information Concerning Borrower's Accounts

Current through Register 1525, July 5, 2024
Through normal origination and servicing activities, including the servicing of delinquencies, Seller and Servicer sometimes obtain privileged information concerning the Borrower and/or mortgaged properties. Such privileged information shall not be used by Seller or Servicer or by its officers, employees, agents or affiliates in any way which can be construed to represent a conflict of interest or an unfair advantage to the user. All such information shall be used in a manner consistent with any applicable laws or regulations regarding disclosure of credit information. Seller or Servicer shall not acquire, nor permit, to its knowledge, its officers, employees, agents or affiliates to acquire any property which secures a Mortgage Loan in which MHMFA owns a Loan Participation, unless MHMFA has informed Seller or Servicer in writing that it does not object to such acquisition.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 20.00 - Eligibility Guide › Section 20.06 - Changes in Servicer's Organization; Event of Default

Current through Register 1525, July 5, 2024
Seller or Servicer shall immediately notify MHMFA of any contemplated major changes in its organization, including, but not limited to, resignation of key personnel assigned to originate or service Mortgage Loans in which MHMFA purchases Loan Participations, mergers or consolidations, changes of name or corporate charter or, if Seller or Servicer is a corporation with less than 100 stockholders, a change of ownership of one-third or more of the stock of Seller or Servicer or of any parent corporation if Seller or Servicer is a wholly owned subsidiary of another corporation. Seller or Servicer shall immediately notify MHMFA of any event of default, as described in the Loan Servicing Agreement and Loan Participation Agreement.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 20.00 - Eligibility Guide › Section 20.07 - Auditor's Report Relating to Servicer's Condition

Current through Register 1525, July 5, 2024
Within 90 days after the end of the Seller and Servicer's fiscal year, Seller or Servicer shall furnish to MHMFA an auditor's report on the form provided at the end of this Guide, relating to Seller or Servicer's financial statements and operations in accordance with the requirements of the Uniform Single Audit Program for Mortgage Bankers.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.01 - Purpose

Current through Register 1525, July 5, 2024
MHMFA will purchase Loan Participations in Mortgage Loans meeting the requirements outlined in this manual.
MHMFA and Sellers intend this program to be responsive to the needs of creditworthy low and moderate income prospective and existing homeowners seeking to purchase or rehabilitate properties throughout the Commonwealth, but particularly in older residential neighborhoods, which for various reasons have suffered or are beginning to suffer deterioration and disinvestment. The properties to be financed will be appraised and underwritten according to well defined criteria that contemplate individual credit standing and individual structure conditions and the goal of the preservation and conservation of existing housing stock in the Commonwealth.
Each Seller will retain autonomy in making individual loans, and will assume responsibility for relaying and emphasizing the goals of the program to their personnel. Strong senior management commitment reinforced through middle management to loan officers and interviewers is a prime prerequisite if the program is to be successful.
Loan applications will be taken by well-trained interviewers and mortgage officers at the designated office of each Seller. Many of the applicants maybe first-time homeowners or inexperienced in filling out loan applications. These conditions require mortgage officers with some perceptive skills and sensitivity in order to make sound evaluation of the applicant.
The loan officer will explain the reason(s) for any rejection of a loan application, and will suggest alternatives, if any, which may permit approval of a loan application. Alternatives could include changes in loan terms, addition of a co-signer to the loan, or longer term improvement in the financial situation of the applicant or other appropriate recommendations. Sellers are encouraged to recommend counseling agencies to applicants rejected because of poor credit, job instability, etc.; however, counseling should not be limited just to rejected loan applications. Counseling agencies offering services such as general information concerning the purchase of a home, inspection services, and legal assistance in rehabilitation should all be recommended to inexperienced applicants undertaking home rehabilitation. In Neighborhood Preservation Areas the mortgage officers should develop close ties with the city or town, neighborhood groups, and the local resources for counseling and technical assistance.
If requested in writing by the Seller or a loan applicant, MHMFA will evaluate a loan application and inform the Seller and the loan applicant if an application meets the requirements for purchase of a Loan Participation by MHMFA. MHMFA, based on its evaluation, may request in writing, but not require, the Seller to reconsider the loan application.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.03 - Definitions

Current through Register 1525, July 5, 2024
Definitions of certain terms used in this Guide are set forthin 761 CMR 19.02 of the Statement of Terms and Conditions of the Commitment Application.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.04 - Amendments

Current through Register 1525, July 5, 2024
This Seller's Guide may be amended or supplemented from time to time by mailing to Seller changed pages to be effective five business days after the date of mailing thereof; provided, however, that no amendment which materially affects the rights and obligations of the Seller under the Loan Participation Agreement (except reporting requirements) shall apply to loans delivered or to be delivered under an outstanding Commitment Application without the consent of Seller.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.05 - Reliance on Seller's Warranties

Current through Register 1525, July 5, 2024
Unless Seller shall obtain a written waiver from MHMFA, MHMFA expressly relies on each Seller satisfying fully each of the warranty requirements set forth in the Loan Participation Agreement and in the Loan Participation Certificate as they pertain to the Seller and to the Loan Participations delivered.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.06 - Rent Increases

Current through Register 1525, July 5, 2024
MHMFA Legislation (St. 1974 c. 846 § 5, subsection 8) requires that MHMFA loans minimize residential displacement of existing tenants in 2-4 unit structures due to rehabilitation. Therefore, any loan which includes amounts for rehabilitation of a 2-4 unit structure in which a Loan Participation is purchased by MHMFA will require execution by both the existing tenants and the Borrower of an agreement that (a) establishes a base rent resulting from the cost of rehabilitation and (b) restricts any further increases in rent for a period of two years to a
pro-rata
share of increases in expenses (limited to increases in property taxes, operating or maintenance expenses or additional capital improvements). This agreement shall run between the tenant and the Borrower, and shall not be required when no rehabilitation costs are included in the Mortgage Loan or when the proposed rehabilitation is to alleviate conditions which violate the state sanitary code or applicable building or housing codes or to carry out other essential maintenance.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.07 - Servicing

Current through Register 1525, July 5, 2024
The Seller shall execute a Loan Servicing Agreement in a form acceptance to MHMFA or shall assign servicing to a Mortgage Lender acceptable to MHMFA, who shall execute such Loan Servicing Agreement.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.12 - Assumption

Current through Register 1525, July 5, 2024
The obligation to make payments due on any Mortgage Loan shall be assumable only with the consent of MHMFA or to the extent required by FHA or VA. Each Conventional Mortgage Loan shall contain a provision giving mortgagee the right to accelerate the maturity of the Mortgage Loan upon transfer of ownership of the property.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.13 - Amortization

Current through Register 1525, July 5, 2024
Each Mortgage Loan must provide, through regular monthly payments beginning the month following the month in which the Closing Date occurs, for full amortization by maturity.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.14 - Origination

Current through Register 1525, July 5, 2024
Each Mortgage Loan must have been closed in Seller's name as mortgagee. Seller is fully liable for all warranties and representations made by Seller to MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.15 - Security for Loans

Current through Register 1525, July 5, 2024
Each Mortgage Loan in which Seller sells a Loan Participation to MHMFA shall be a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms and conditions and free from any right of set-off, counter-claim or other claim, defense or security interest. Each Mortgage Loan shall be properly acknowledged and duly recorded to perfect a first mortgage lien on a fee simple in the real property covered thereby, which first mortgage lien is subject only to the liens of taxes or assessments which are not delinquent, building restrictions or other restrictive covenants, conditions or easements which do not in the opinion of Seller materially affect the security for the Mortgage Loan. Borrower must not have an option under the Mortgage Loan to borrow from Seller additional funds secured by the property without the consent of MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.16 - Principal Amount Advanced and Completion Escrows

Current through Register 1525, July 5, 2024
The full principal amount of each Mortgage Loan in which MHMFA has purchased a Loan Participation must have been advanced to Borrower, advanced in accordance with the direction of Borrower or placed in a completion escrow account.
To the extent that any portion of a Mortgage Loan in which MHMFA purchases a Loan Participation is used to finance rehabilitation or improvement of the property an escrow sufficient to finance the completion of the rehabilitation must be maintained by the Seller. The completion escrow shall be held in trust for the benefit of Borrower, Seller and MHMFA, until such rehabilitation is completed. The completion escrow account may provide for periodic draws against the escrow as portions of the rehabilitation are completed.
Note
: Once MHMFA has purchased a Loan Participation, interest at the MHMFA Required Rate must be remitted to MHMFA on the entire Mortgage Loan including any portion held in a completion escrow. The Seller may (a) pay the payments due MHMFA on the amount held in the completion escrow from the interest or profit earned on the temporary investment of funds in the completion escrow and may charge the Borrower for the difference, if any, between the payment due MHMFA and the interest or profits earned from the temporary investment of funds in the completion escrow, or (b) charge the Borrower for the payments due MHMFA on amounts held in the completion escrows, but then must credit the Borrower with all interest or profit earned from the temporary investment of MHMFA funds held in the completion escrows.
The Seller is permitted where appropriate to structure the financing of rehabilitation through the use of construction loans or bridge loans with MHMFA purchasing a loan Participation in a final take-out Mortgage Loan upon completion of rehabilitation. In such cases no completion escrows would be required.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.17 - Mortgage Loan not in Default

Current through Register 1525, July 5, 2024
For each Mortgage Loan, as of the Purchase Date, principal and interest payments must not be delinquent. All costs, fees and expenses incurred in making, closing, and recording the Mortgage Loan must have been paid; and there must not be outstanding any advance of funds by Seller or by another at the request of Seller to be used by Borrower for the payment or any monthly installment of principal or interest under the terms of the Mortgage Loan.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.18 - Escrow Payment Requirements

Current through Register 1525, July 5, 2024
Each Mortgage Loan shall provide for the monthly collection of Escrow Payments to the maximum extent permitted (except that the collection of Escrow Payments for hazard insurance premiums is not required) by the Real Estate Settlement Procedures Act, as amended, along with the monthly installment of interest and principal. The Escrow Payments shall be held in trust for the benefit of Borrower, Seller and MHMFA, in an account in a bank or trust company, savings bank, national banking association, savings and loan association, cooperative bank, or credit union (which may be the Seller) insured to the fullest extent legally possible.
In the case of default of any Escrow Payment due, the Mortgage Loan shall provide that, with or without notice or demand of the Borrower, the Seller shall pay the amount due on property taxes, mortgage insurance premiums, or other applicable assessments. Such payments shall be a lien on the mortgaged property added to the amount of the Mortgage Loan and payable on demand with interest (at the rate applicable under the Mortgage Loan) from the time of payment.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.19 - Title Insurance Requirements

Current through Register 1525, July 5, 2024
Each Mortgage Loan must be insured by a mortgage policy of title insurance (in standard American Land Title Association form as then in effect) issued by a title insurance company qualified to do business in the Commonwealth insuring that the mortgage lien is valid and enforceable and in an amount at least equal to the outstanding balance of the Mortgage Loan, including, when applicable, any increases in the amount there of.
Title insurance requirements will be waived if title insurance is not required by prudent practice and custom in the geographic area in which the property is located; provided, however, that the closing attorney issues an opinion of title satisfactory to the Seller and MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.20 - Survey Requirements

Current through Register 1525, July 5, 2024
With respect to each Mortgage Loan, Seller must obtain and hold in the Loan File a plat of survey dated or redated within six months of the Closing Date of the Mortgage Loan certified by a licensed surveyor or engineer showing
(1) the exact location and dimensions of the property including the improvements located thereon,
(2) the exact location of all lot and street lines, all means of access to such property and all recorded easements related to such property,
(3) the names of all avenues, streets and alleys abutting such property and
(4) any encroachment on such property or any encroachment by the improvements on adjoining property, or any defect unless
(a) a plat of survey is not required by FHA or VA upon application for benefits; and
(b) a plat of survey is not required by prudent practice and custom in the geographic area in which the property is located; provided, however, that Seller must nevertheless supply a plat of survey at Seller's expense, is required by MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.21 - Hazard Insurance Requirement and Flood Insurance

Current through Register 1525, July 5, 2024
At the Closing Date, the property securing each Mortgage Loan must be covered by hazard insurance including fire and extended coverage insurance, meeting the standards accepted by prudent practice and custom in the geographic area in which the property is located. The Seller may, but is not required, to collect Escrow Payments for hazard insurance premiums.
Each Mortgage Loan shall provide that in the event of any loss settlement on a hazard insurance policy the mortgagee shall have the option of applying the loss settlement proceeds against the principal amount of the Mortgage Loan (See 761 CMR 22.06 ).
Sellers are responsible for compliance with the provisions of the Flood Disaster Protection Act of 1973 whenever such provisions would be applicable to a Mortgage Loan in which a Loan Participation is sold to MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.22 - Legal Description

Current through Register 1525, July 5, 2024
The legal description as set forth in the mortgage title insurance policy, if any, and other documents must be that accepted by prudent practice and custom in the geographic area in which the property is located.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.31 - Federal Insurance Programs

Current through Register 1525, July 5, 2024
MHMFA may purchase Loan Participations in Mortgage Loans insured by FHA or guaranteed by VA under one of the following provisions of law:
FHA Section 203 (b), (h), (i); Home Unsubsidized
FHA Section 221 (d) (2): Low and Moderate Income
FHA Section 222: Servicemen
FHA Section 233: Experimental Housing
FHA Section 234: Individual Condominium Unit
FHA Section 235: Lower Income (Interest Subsidy)
FHA Section 237: Special Credit Risks
FHA Section 809: Armed Services Civilian Employees
FHA Section 810: Armed Services Housing
VA -- Chapter 37 Title 38, U.S. Code (which includes Section 501 of the Servicemen's Readjustment Act of 1977, as amended).
FHA Mortgage Loans may have been insured under one of the basic FHA insuring sections pursuant to the statutory requirements of another FHA section such as FHA Section 223(e).
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › Section 21.32 - Conventional Insurance Programs

Current through Register 1525, July 5, 2024
Conventional Mortgage Loans in excess of 80% of the Value of the Property shall be insured by a private mortgage insurer licensed to do business in the Commonwealth and qualified to insure Mortgage Loans purchased by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association such that:
(1) all Conventional Mortgage Loans in excess of 90% and up to and including 95% of the Value of the Property shall have 25% private mortgage insurance coverage on the outstanding principal balance of such Conventional Mortgage Loan.
(2) all Conventional Mortgage Loans in excess of 80% and up to and including 90% of the Value of the Property shall have 20% private mortgage insurance on the outstanding principal balance of such Conventional Mortgage Loan.
(3) all Mortgage Loans shall be issued prior to delivery to MHMFA, by Tiger's Investors Mortgage Insurance Company, 225 Franklin Street, Boston, Massachusetts 02110 in the Mortgage Pool Insurance Policy for MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › GENERAL › Section 21.40 - Credit Underwriting Guidelines

Current through Register 1525, July 5, 2024
Evaluation by Seller of each Borrower's creditworthiness must be done on a case-by-case basis in compliance with provisions of the Equal Credit Opportunity Act, as amended. MHMFA considers the following guidelines to be sound, general principles in underwriting credit, but may waive requirements upon written request for individual cases.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › GENERAL › Section 21.41 - Monthly Housing Expense-to-Income Ratio

Current through Register 1525, July 5, 2024
MHMFA will normally require that monthly housing (expense (mortgage payments plus escrow payments) not exceed approximately 25% of Borrower's "stable monthly income" (as defined in 761 CMR 21.43 ). If Borrower is purchasing a condominium or PUD unit, the monthly condominium or Planned Unit Development fee (homeowners association dues) for common elements/charges must be included in the monthly housing expense when calculating the above ratio.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › GENERAL › Section 21.42 - Monthly Debt Payment-to-Income Ratio

Current through Register 1525, July 5, 2024
MHMFA will normally require that the total amount of monthly housing expense (referred to in 761 CMR 21.41 ), plus all other monthly payments on all installment debts having remaining terms of more than 12 months do not exceed approximately 35% of Borrower's "stable monthly income." Alimony, child support and maintenance payments are considered long term monthly obligations, unless such obligations terminate in less that 12 months.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › GENERAL › Section 21.43 - Stable Monthly Income

Current through Register 1525, July 5, 2024
Stable monthly income is Borrower's gross monthly income from primary employment base earnings plus recognizable secondary income including a reasonable portion of anticipated or actual rental income from multi-unit structures being purchased or rehabilitated and other income as required to be recognized by law or prudent practice and custom of responsible Mortgage Lenders in Massachusetts. Secondary income of any Borrower, such as bonuses, commissions, overtime, or part-time employment, should only be recognized as "stable monthly income" if such items of secondary income are typical for the occupation, substantiated by Borrower's previous year's earnings, and continuation is probable based on foreseeable economic circumstances.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › GENERAL › Section 21.44 - Borrower's Credit Reputation

Current through Register 1525, July 5, 2024
In addition to the above guidelines, Seller must determine that Borrower's housing payments plus other obligations do not constitute an undue strain on Borrower's ability to make all such payments promptly and that the Borrower has maintained a credit reputation that is commonly acceptable to private institutional leaders.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › GENERAL › Section 21.45 - Credit Report

Current through Register 1525, July 5, 2024
A credit report comparable to a Factual Data Credit Report must be issued by an independent credit reporting agency which has a contract with FHA or VA or is otherwise acceptable to MHMFA.
Such report must verify current employment, salary, all debts listed on the credit application including terms, balances and ratings of the Borrower and other household members. It must list all other debts, in addition to all legal information, including without limitation, suits, judgments, foreclosures, garnishments, bankruptcies and divorce actions, discovered by a search of the public records. If there has been a change in employment within the past two years, the report must also contain information as to the Borrower's previous employment, location and salary. If the credit bureau does not verify current employment and income, Seller must provide separate written verification of these items.
Note
: In addition to reviewing the files delivered by Seller, MHMFA will also make test appraisals, spot check credit reports and make other checks in order to assure proper underwriting. In the event MHMFA in its sole discretion determines that a credit report is inadequate, MHMFA reserves the right to declare as unacceptable the credit reporting source originating such report, in which event Seller agrees not to use such credit reporting source for Mortgage Loans in which a Loan Participation may be purchased by MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › APPRAISAL GUIDELINES › Section 21.51 - Appraisal Forms

Current through Register 1525, July 5, 2024
The Seller is required to utilize appraisal forms approved by FHA or VA as appropriate. On conventional Mortgage Loans, Sellers will supply an appraisal by an appraiser on the applicable (single family, multi-family or condominium) FHLMC or FNMA Appraisal Form, or alternative forms approved by MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › APPRAISAL GUIDELINES › Section 21.52 - Appraisers

Current through Register 1525, July 5, 2024
MHMFA does not approve specific appraisers; however, an appraiser must be experienced in the appraisal of 1-4 family properties in urban neighborhoods and must be actively engaged in such appraisal work. The appraiser must be approved by the Seller and normally must be a member of one of the professional appraisal organizations.
(1)
Discontinuance of Appraiser by Seller
. Seller shall inform MHMFA immediately in the event Seller discontinues using the services of any appraiser who has made appraisals with respect to Mortgage Loans in which Loan Participations are purchased by MHMFA from the Seller.
(2)
Discontinuance of Appraiser by MHMFA
. MHMFA may, at any time, notify Seller that MHMFA will no longer accept appraisals made by a given appraiser, and Seller shall not thereafter use such appraiser with respect to Mortgage Loans in which Loan Participations are purchased by MHMFA.
(3)
Representation to Third Parties by Appraiser
. An appraiser must not make any representations to third parties that he or she has been, in any way, approved or qualified by MHMFA, but may represent (where it is the case) that he or she has made appraisals for the Seller on Mortgage Loans in which MHMFA has purchased Loan Participations.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › APPRAISAL GUIDELINES › Section 21.53 - Property Appraisal Standards

Current through Register 1525, July 5, 2024
Appraisers will generally use recognized appraisal standards such as those acceptable to FHLMC. However, appraising structures in older urban neighborhoods requires extra consideration of some factors as defined below. It is the responsibility of the Seller to insure that appraisers are aware of and utilize these guidelines in appraising Mortgage Loans in which Loan Participations are purchased by MHMFA.
Code of Massachusetts Regulations › 761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY › Title 761 CMR 21.00 - Seller's Guide › APPRAISAL GUIDELINES › Section 21.54 - Neighborhood and Property Location

Current through Register 1525, July 5, 2024
The relationship of the location of the property to the evaluation of the loan application is perhaps the most sensitive and difficult aspect of the success of the MHMFA loan program. The MHMFA loan program requires the accurate evaluation of risk in making individual Mortgage Loans, yet seeks to increase Mortgage Loans in older urban neighborhoods. Therefore, the following factors will be taken into consideration:
(1) More than suburban or rural areas, urban neighborhoods are relatively small in size; neighborhoods of diverse character may compatibly exist in close proximity. Therefore, neighborhood evaluations will be based on conditions in the block face including the property being appraised and the immediately contiguous block faces. Whenever possible, comparable properties used for valuation will be drawn from the neighborhood as defined in 761 CMR 21.54.
(2) "Urban" neighborhoods are more likely than suburban or rural ones to contain a mixture of uses, ages, design and this may contribute to their stability and value. For instance, a variety of housing types -- i.e., 1-4 unit structures and apartments or condominiums can be compatible uses. The presence of commercial, light industrial or other employment opportunities are not automatically incompatible in urban neighborhoods.
(3) The racial or ethnic composition of the neighborhood is not a relevant appraisal factor and must not be considered in the appraisal report or in any decision on Mortgage Loan approval. Federal and state laws and regulations make it illegal to consider the racial composition or changes in a neighborhood for purposes of Mortgage Loan decision.
(4) When evaluating the neighborhood the appraiser should base his/her evaluation on a relative comparison with other existing neighborhoods containing similar housing price ranges. A neighborhood should be evaluated in terms of realistic alternatives available to the Mortgage Loan applicant.
(5) The existence of any of the following factors will be interpreted as a positive influence when analyzing the neighborhood :
(a) The existence of a strong and cohesive neighborhood or community organization;
(b) The presence of a non-profit or profit developer rehabilitating properties, or the existence of other ongoing programs by public or Private agencies to improve or rehabilitate housing.