reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Preferred Interest Rate Loan Program is designed to provide:
(1) Financing for eligible homebuyers to purchase, or purchase and rehabilitate, a home;
(2) Refinancing to eligible homeowners who, because of certain exceptional adverse personal or economic circumstances, can no longer make the full mortgage payments on their homes and would otherwise have to forfeit title to their homes; and
(3) Short-term loans to nonprofit organizations and local governments for the acquisition and construction, acquisition and rehabilitation together with demolition or lot consolidation, or acquisition and rehabilitation, of residential units affordable for purchase by households of limited income.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.04 - Eligible Residences

Current through Register Vol. 51, No. 14, July 12, 2024
A. An eligible residence:
(1) Is comprised of one to four residential units;
(2) Is real property owned by the borrower in fee simple or under a freely transferable, perpetually renewable, ground lease which permits the lessee to transfer the leasehold interest without the consent of the lessor;
(3) Is located in the State;
(4) May be a detached home, modular home, townhouse, condominium, or a manufactured home as defined under Regulation .03B(13) of this chapter;
(5) May not be a residence which is treated as personal property for the purpose of establishing a security interest, such as a cooperative unit or a manufactured home not meeting the requirements for a manufactured home under Regulation .03B(13) of this chapter
(6) Meets all applicable codes and standards, except that if the loan includes proceeds for rehabilitation work, then the Program shall be satisfied that all applicable codes and standards will be met when the rehabilitation work is complete; and
(7) If new construction, is located within a priority funding area identified under State Finance and Procurement Article, § 5-7 B-02, Annotated Code of Maryland.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.05 - Eligible Borrowers

Current through Register Vol. 51, No. 14, July 12, 2024
A. In order to be eligible for a loan to finance the purchase, or the purchase and rehabilitation, of an eligible residence comprised of one residential unit, a borrower:
(1) Shall be all those persons who will hold title to the eligible residence;
(2) Shall be 18 years old or older, unless married to a joint borrower who is 18 years old or older;
(3) Shall be a member or members of a household of limited income;
(4) Shall intend to reside in the eligible residence;
(5) If the borrower owns a personal residence at the time of application and is purchasing another residence, shall:
(a) Have the existing residence under contract of sale at the time of the loan application and shall sell the residence before or simultaneous with the borrower's purchase of the property financed by the Program loan; and
(b) Provide evidence satisfactory to the Program that the borrower has a compelling need to purchase a new residence, because of a change in:
(i) Circumstances of employment such as a new place of work, or
(ii) Personal circumstances such as a divorce or an increase in the size of the household;
(6) May not own or hold any interest in any other real property except cemetery plots, recreational vehicle lots, a 5 percent or less interest in a time share unit (2.6 weeks), real property used in a trade or business, or a lot adjacent to the purchased property that is consolidated with the purchased property securing the Program loan;
(7) Shall satisfy the Program that the borrower does not have assets or resources, which are set forth in §C of this regulation, that could enable the borrower to qualify for conventional or other Departmental mortgage financing;
(8) Shall have the legal capacity to incur the obligations of the loan; and
(9) Shall agree to comply with the requirements established by the Program and with the terms of the loan.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.06 - Eligible Uses

Current through Register Vol. 51, No. 14, July 12, 2024
A. The proceeds of a loan made to purchase an eligible residence may be used to pay for:
(1) The purchase price of the eligible residence; and
(2) Closing costs.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.07 - Short-term Acquisition, Construction, and Rehabilitation Loans

Current through Register Vol. 51, No. 14, July 12, 2024
A. For short-term loans to finance the acquisition and construction, or acquisition and rehabilitation together with demolition or lot consolidation, or acquisition and rehabilitation, of residential units, an applicant shall:
(1) Be a nonprofit organization or a local government;
(2) Demonstrate to the satisfaction of the Program that it has successfully completed an acquisition and rehabilitation project or a similar project within the last 2 years;
(3) Agree to sell the residential unit to a household of limited income under a purchase or a lease purchase contract acceptable to the Program;
(4) Have a commitment from the Department for permanent financing under the Program for the sale of the residence acquired and constructed or rehabilitated with the loan; and
(5) Provide costs for acquisition, construction, rehabilitation, demolition, or lot consolidation, marketing data, and such other information as may be required by the Program;
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.08 - Rehabilitation Procedures-Standards and Inspections

Current through Register Vol. 51, No. 14, July 12, 2024
A. Standards for Rehabilitation Work. The rehabilitated property shall satisfy:
(1) State and local planning, zoning, and building codes and other applicable laws; and
(2) Standards established by the Program.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.09 - Rehabilitation Procedures-Payment

Current through Register Vol. 51, No. 14, July 12, 2024
A. Completion of Work Required. Except as provided in §B of this regulation, payments shall be made only for work completed. Payments may not be made for material delivered to the site but not incorporated into the project.
B. Advances.
(1) For loans under Regulation .05 of this chapter, there may be an advance or down payment in an amount which does not exceed 10 percent of the rehabilitation costs, if required by the contract for the rehabilitation.
(2) For loans under Regulation .07 of this chapter, the Program may advance to a nonprofit organization or local government 10-90 percent of the acquisition and rehabilitation costs. The percentage of costs advanced shall be in the sole discretion of the Department, taking into account experience managing construction or rehabilitation projects and disbursing funds.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.10 - Maximum Loan Amounts

Current through Register Vol. 51, No. 14, July 12, 2024
A. Secretarial Determination of Maximum Loan Amounts.
(1) The Secretary shall determine limits on loan amounts from time to time.
(2) In making the determinations in §A(1) of this regulation, the Secretary may consider factors including the following:
(a) Regional costs of housing;
(b) Costs of housing affordable to households of limited income; and
(c) Exceptional circumstances in individual cases.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.11 - General Loan Terms and Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Interest Rates.
(1) The initial preferred interest rate for a loan shall be:
(a) Not higher than the prevailing private market rate as determined by the Program; and
(b) A rate, which may be as low as 0 percent, set by the Program in relation to the borrower's financial capacity as determined by the Program.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.12 - Property Insurance Required

Current through Register Vol. 51, No. 14, July 12, 2024
A. Hazard Insurance. The borrower shall maintain fire and extended coverage insurance at the borrower's expense in an amount equal to the lesser of the:
(1) Replacement value of the improvements, as determined by the appraisal required under this chapter; or
(2) Sum of the loan, plus any superior mortgage lien permitted by the Program.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.13 - Periodic Review of Household Income; Adjusting the Interest Rate

Current through Register Vol. 51, No. 14, July 12, 2024
A. Applicability. This regulation applies to loans made to owners of one-to-four unit properties.
B. Adjustable Interest Rates.
(1) The initial preferred interest rate on the loan may be adjustable.
(2) Loans subject to adjustment shall be made in accordance with the following provisions:
(a) The interest rate adjustment shall be based on increases or decreases in the borrower's household income;
(b) The manner of calculating interest rate adjustments and the frequency of the adjustments shall be fully disclosed to the borrower at the time the loan is made; and
(c) An interest rate adjustment shall take place only after written notice to the borrower.
(3) Except for the reasons set forth in §C(4) of this regulation or Regulation .11A(3) of this chapter, the interest rate may not be adjusted:
(a) Below the initial preferred interest rate described in Regulation .11A of this chapter; or
(b) Above a rate determined by the Program to be the market interest rate at the time the loan is made.
(4) The Program may establish an alternative interest rate for a borrower that is permitted to assume the loan under Regulation .11G of this chapter, but fails to provide the Program with evidence that the borrower meets the income limits in effect at the time the borrower acquires the property or an interest in the property.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.14 - Loan Processing

Current through Register Vol. 51, No. 14, July 12, 2024
A. Applications.
(1) To apply for a loan, an applicant shall:
(a) Submit a completed application in the form that the Department requires;
(b) Supply a copy of the latest income tax return, if appropriate, for each member of the household, or other available verification of any existing household income; and
(c) Submit any other information or documentation reasonably requested by the Program in order to establish eligibility and qualifications for a loan.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.15 - Forward Commitments to Developers

Current through Register Vol. 51, No. 14, July 12, 2024
A. For eligible developers of eligible homes, the Department may enter into forward commitments to reserve, for a fixed period of time, a fixed amount of Program funds. The Program funds reserved in the forward commitment shall be used to finance Program loans for eligible borrowers purchasing eligible homes constructed or rehabilitated by the developer.
B. Eligible developers are:
(1) Nonprofit or for-profit organizations;
(2) Local governments; or
(3) Local government agencies.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.16 - Initiatives and Special Programs

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Department, in its discretion, may set aside Program funds for initiatives and special programs, whereby funds may be made available under special terms set by the Administration.
B. Forward Commitments.
(1) The Department may enter into forward commitments with sponsors to reserve, for a fixed period of time, a fixed amount of Program funds for initiatives or special programs.
(2) The sponsor may be a nonprofit organization or a local government.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.17 - Power of the Department

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Department may:
(1) Assign a mortgage for value;
(2) Release a mortgage;
(3) Foreclose a mortgage;
(4) Acquire property securing a loan in default;
(5) Encumber, sell, or otherwise dispose of property acquired in connection with a loan in default; or
(6) Obtain and seek enforcement of a deficiency judgment.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.18 - Program Operation and Administration

Current through Register Vol. 51, No. 14, July 12, 2024
A. Loan Documentation. Loans shall be made using standard forms prescribed by the Program.
B. Program Fund Allocations.
(1) The Secretary may reserve all or any portion of the Program funds at any time for any purpose.
(2) The Secretary also may restrict the use of all or a portion of the unreserved Program funds so that funds are made available:
(a) For a particular purpose consistent with Program goals;
(b) For limited times or geographic areas;
(c) To meet certain economic or other emergencies; or
(d) To one of the other loan programs operated under the Maryland Home Financing Program described in Regulation .02B of this chapter, or to the Settlement Expense Loan Program described in COMAR 05.03.04.
(3) To the extent that Program funds are not reserved or restricted under §B(1) or (2) of this regulation, or encumbered under a forward commitment made under Regulation .15 or .16 of this chapter, the Program may make funds available to eligible loan applicants on a first-come, first-served basis. However, the Program is not obligated to make loans generally available or to make a specific loan.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.01 - Preferred Interest Rate Loan Program › Section 05.03.01.19 - False Statements

Current through Register Vol. 51, No. 14, July 12, 2024
A borrower who knowingly makes or causes to be made any material statement or material misstatement of fact, whether in the nature of an understatement or overstatement of financial condition or any other fact material to the Department's action, is subject to immediate acceleration of the loan, in addition to the criminal penalties authorized by Housing and Community Development Article, §
									4-816, Annotated Code of Maryland.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.01 - General

Current through Register Vol. 51, No. 14, July 12, 2024
These regulations govern the use of proceeds from the issuance of the Community Development Administration's mortgage revenue bonds. Proceeds of the bonds are used to provide mortgages at interest rates below rates prevailing in the unassisted private mortgage market.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
The Administration may purchase mortgage loans from lenders, make direct mortgage loans for eligible residences in projects, or make forward commitments to make or to purchase permanent mortgage loans for eligible residences to be constructed or rehabilitated by developers.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.04 - Eligible Borrower

Current through Register Vol. 51, No. 14, July 12, 2024
A. To be eligible for a mortgage loan to be financed through the Program, a borrower is required to provide affidavits and other verification of compliance with ownership, occupancy, and financial requirements.
B. Ownership and Occupancy Requirements.
(1) Principal Residence. Individuals taking title to an eligible residence are required to execute an affidavit stating that they intend to occupy the property as their principal residence within a reasonable time after closing of the loan.
(2) Prior Ownership Disqualification; Exceptions to Disqualification. Each individual taking title to an eligible residence may not have owned a principal residence at any time during the 3 years preceding the date of the closing of the mortgage loan. This restriction does not apply if the eligible residence being financed:
(a) Is located in a targeted area;
(b) Meets the following requirements:
(i) Is at least 20 years old,
(ii) Has rehabilitation expenses in excess of 25 percent of the purchase price, and
(iii) The external and internal walls and internal structural framework are retained to the extent required for a qualified rehabilitation loan under §143(k) of the Code; or
(c) Is financed with taxable mortgage revenue bonds, as determined by the Administration.
(3) Ownership of Other Real Estate. The borrower may not own any other real property at the time the mortgage loan closes except:
(a) A cemetery plot;
(b) A recreational vehicle lot;
(c) A 1/20th (2.6 weeks) or less interest time-sharing unit;
(d) A lot on which the residential housing unit to be financed with proceeds of the mortgage loan is to be built; or
(e) An existing principal residence of a borrower if it is subject to a contract of sale at the time of application and is conveyed before the mortgage loan is closed if the mortgage is financed with:
(i) Tax-exempt mortgage revenue bonds and the residence is located in a targeted area under the Code; or
(ii) Taxable mortgage revenue bonds.
(4) Minimum Age. Each single applicant and at least one married applicant taking title to the residence shall be 18 years old or older.
(5) Form of Ownership. Individuals shall take title to the property in the form required by the Administration.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.05 - Eligible Residence

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Administration may purchase mortgage loans secured by eligible residences comprised of one to four residential units as described in this regulation.
B. Loans Secured by Two to Four Unit Residences.
(1) The Administration may purchase a loan secured by a two to four unit residence only for special projects, initiatives, or programs approved by the Administration, in its sole discretion.
(2) In addition, a loan may be eligible for purchase only if:
(a) One of the units shall be occupied by the owner of the units; and
(b) The units shall have been first occupied at least 5 years before the mortgage is executed, unless the residence is a two-unit residence located in a targeted area and the borrower meets the federal income requirements set forth in §143(k)(7) of the Code.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.06 - Maximum Mortgage Loan Amount

Current through Register Vol. 51, No. 14, July 12, 2024
A. Maximum Mortgage Loan Calculation.
(1) The original principal amount of a mortgage loan to be made or purchased by the Administration, less any permitted cost set forth in §A(2) of this regulation, may not exceed the lowest of:
(a) The maximum purchase price determined from time to time in accordance with federal law for the region of the State in which the residence is located;
(b) A maximum mortgage loan amount determined under the applicable bond certificate, as described in C, D, and E of this regulation; or
(c) A maximum mortgage loan amount determined by the Secretary from time to time.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.07 - Other Loan Terms and Conditions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Interest Rate. The interest rate or rates on mortgage loans shall be set from time to time by the Administration taking into account:
(1) The interest payable by the Administration on its bonds;
(2) Administrative expenses of the Program;
(3) Possible losses due to mortgage loan defaults;
(4) Maximum earnings on bond proceeds financing the loans as permitted under §§103 and 141-150 of the Code, as applicable;
(5) Minimum earnings on bond proceeds as required under Housing and Community Development Article, §
										4-248, Annotated Code of Maryland, and any applicable bond certificate; and
(6) The income levels of the households being served.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.08 - Refinancing and Taxable Bond Financing

Current through Register Vol. 51, No. 14, July 12, 2024
A. Tax-Exempt Bond Refinancing. In order to comply with the Code, mortgage loans financed with tax-exempt mortgage revenue bonds may not be used to refinance an existing mortgage or a land installment contract except in limited circumstances involving construction of a home on a lot owned by the borrower, or to refinance temporary bridge financing, or in connection with a qualified rehabilitation loan, in any case as may be approved by the Administration.
B. Taxable Bond Financing.
(1) Mortgage loans financed with taxable mortgage revenue bonds may be used to refinance an existing mortgage.
(2) A refinancing loan may be used to pay for:
(a) The payoff and release of existing mortgages and all liens; and
(b) Closing costs, settlement costs, real property taxes, homeowners and mortgage insurance premiums, homeowner association fees, and other closing expenses as determined by the Program.
(3) A refinancing loan may not be used to provide money directly to the borrower or pay debts that are not secured by the residence.
(4) The Program may set terms and conditions for refinancing loans, including:
(a) A requirement that the borrower's current first mortgage have an interest rate subject to change or requires a balloon payment; or
(b) A maximum or minimum on the loan-to-value ratio, including all existing debt secured by the residence.
(5) The Program may set interest rates for taxable mortgage loans that are higher than rates for tax-exempt mortgage loans.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.09 - Default

Current through Register Vol. 51, No. 14, July 12, 2024
A. Mortgage loans which are in default may be foreclosed, restructured, forborne, or otherwise treated, as described in B-----G of this regulation.
B. Foreclosure.
(1) Mortgage loans which are in default may be:
(a) Foreclosed by the Administration or its agent in the manner provided by law for foreclosures of private mortgages; or
(b) Assigned by the Administration to the mortgage insurer.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.10 - Transfers and Assumptions

Current through Register Vol. 51, No. 14, July 12, 2024
A. Nonmonetary Transfers.
(1) The Administration may approve nonmonetary transfers of interest in property that is security for a mortgage loan made under the Program if the requirements of the Code and the applicable mortgage insurers can be satisfied.
(2) The transferee shall be required to execute appropriate affidavits, modification documents to the note and deed of trust, recapture tax notice, and other documents in the form provided by the Administration.
(3) The Administration reserves the right to disapprove transfers under circumstances where it appears that there was deception or sham on the part of the borrower in connection with the original mortgage loan in an attempt to avoid ineligibility under the requirements of Regulation .04 of this chapter.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.11 - Loan Purchase Program-Approval of Mortgage Lender

Current through Register Vol. 51, No. 14, July 12, 2024
A. A mortgage lender may apply to be approved to participate as an eligible lender under the Program to originate mortgage loans for purchase by the Administration.
B. An eligible mortgage lender shall certify at the time of application for approval, and shall update the certifications as required by the Administration, that the lender is:
(1) In compliance with all applicable State and federal laws and regulations governing the business of the mortgage lender and the making of residential mortgage loans for residential housing; and
(2) Except as provided in §F of this regulation, approved by the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.12 - Loan Purchase Program-Purchasing Loans

Current through Register Vol. 51, No. 14, July 12, 2024
A. Conditions Related to Particular Bond Issues.
(1) Conditional Obligation to Purchase.
(a) From time to time the Administration issues tax-exempt or taxable mortgage revenue bonds to finance mortgage loan purchases.
(b) Any obligations of the Administration to purchase any mortgage loans financed from the proceeds of its bonds are subject to:
(i) The successful sale and delivery by the Administration of bonds on terms and in an amount satisfactory to the Administration; and
(ii) Execution by the lender and the Administration of the participation agreement or other program document applicable to a particular bond issue, or issues, or as otherwise required by the Administration.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.13 - Loan Servicing

Current through Register Vol. 51, No. 14, July 12, 2024
A. In General.
(1) For new loans originated by mortgage lenders and purchased by the Administration, the Administration may:
(a) Require loans to be serviced by a master servicer or servicers selected by the Administration, or serviced by the Administration; or
(b) Permit mortgage lenders, or a related entity acceptable to the Administration in its discretion, to be approved to service the mortgage loans the lender originates on terms set by the Administration.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.14 - Direct Mortgage Loans Made by the Administration-Processing of Mortgage Loans

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Administration may make direct mortgage loans to finance acquisition of eligible residences if the residences are located in eligible projects as described in Regulation .17 of this chapter. The mortgage loans shall comply with the requirements of Regulations .04-----.08 of this chapter.
B. Processing of a direct mortgage loan may be initiated by submission of a standard form of application prescribed by the Administration accompanied by:
(1) A nonrefundable application fee in an amount determined by the Administration from time to time to be used to offset the cost of processing and appraisal and credit report fees; and
(2) Any documents, affidavits, or information that the Administration requires.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.15 - Project Development-Commitments to Developers

Current through Register Vol. 51, No. 14, July 12, 2024
A. With the approval of the Secretary, the Administration may provide forward commitments to developers for the financing of mortgage loans to families of limited income meeting the requirements of Housing and Community Development Article, §
									4-218, Annotated Code of Maryland, for the purchase of existing, newly constructed, or rehabilitated homes in community development projects. The Administration may finance these mortgages by making mortgage loans directly to eligible mortgagors, as described in Regulation .14 of this chapter, or by purchasing mortgage loans from an approved lender selected by the developer or the borrower, as described in Regulations .11-.13 of this chapter.
B. If a project is approved, the Administration may issue a commitment letter to the eligible developer setting forth:
(1) The total principal amount of loans for eligible residences that the Administration will make or purchase within a project;
(2) Project conditions and requirements;
(3) Loan terms and conditions; and
(4) Any other restrictions applicable to the mortgage loans, such as the:
(a) Eligibility of mortgagors, and
(b) Number, type, location, and use of eligible residences in a project.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.16 - Project Development-Eligible Developers

Current through Register Vol. 51, No. 14, July 12, 2024
To be eligible for a forward commitment, a developer:
A. Shall demonstrate experience, acceptable to the Administration, in the development of eligible residences and satisfactory prior experience, if any, in the Program or other programs of the Administration;
B. In the estimation of the Administration, shall be reputable and have the ability to satisfy its obligations under the program documents and these regulations;
C. Shall be qualified to do business in Maryland;
D. Shall hold all licenses or permits from the State, its agencies, and any local governmental unit having jurisdiction necessary to own, construct or rehabilitate, and operate a project, and, if no independent broker or brokers are retained, necessary to sell eligible residences in a project; and
E. May not be suspended or debarred under COMAR 05.02.02, or be on the disapproved contractors' list maintained by the Department, the United States Department of Housing and Urban Development, the Maryland Department of General Services, or any other federal or state agency or instrumentality.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.17 - Project Development-Eligible Projects

Current through Register Vol. 51, No. 14, July 12, 2024
A. Developments of eligible residences or portions of the developments may be approved as eligible projects. The Administration may limit the number of eligible residences it will finance in any development of which the project is a part. If a development consists of more than one section, this limitation may be applicable to each section separately, as well as to the development as a whole.
B. Project Units.
(1) A project may be a scattered site project of units that are not located on contiguous properties.
(2) A project shall consist of at least two units.
(3) In the sole discretion of the Administration, cooperative units may be project units if the:
(a) Project consists of all of the cooperative units in the building or buildings owned by the cooperative housing corporation;
(b) Cooperative is in compliance with Corporations and Associations Code, Title 5, Subtitle 6B, Annotated Code of Maryland;
(c) Cooperative project is determined by the Secretary to be a community development project under the Act;
(d) Loans have such terms, and are secured, as required by the Administration and the mortgage insurer; and
(e) Administration, in its sole discretion, determines that the loans are permitted to be financed under the applicable bond documents.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.18 - Project Development-Project Application Process

Current through Register Vol. 51, No. 14, July 12, 2024
A. Approval of a project shall be initiated by submission of an application on forms prescribed by the Administration.
B. Preliminary Application. Developers may submit the following items for preliminary eligibility review by the Administration:
(1) Completed application form;
(2) Location map;
(3) Construction and sales schedule;
(4) Cost breakdown for the project;
(5) Marketing plan; and
(6) Sufficient information and documentation to determine the extent, if any, to which the project will change the type of use or increase the intensity of the existing use of the land and buildings to be financed by the mortgage loans.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.19 - Administration Initiatives and Special Programs

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Administration, in its discretion, may set aside Program funds for initiatives and special programs, whereby funds may be made available under special terms set by the Administration.
B. The Administration, in its discretion, may operate a program whereby loans made or purchased by the Administration are collateral for mortgage-backed securities, or other securities or certificates, under the terms and conditions which the Administration and the issuer of the securities or certificates require.
C. CDA Plus Loans.
(1) The Administration, in its discretion, may operate a program in which borrowers receiving first mortgage loans through the Program may also receive CDA Plus Loans.
(2) CDA Plus Loans are unsecured loans that do not bear interest and are forgivable as to principal.
(3) The amount of the CDA Plus Loan may not exceed 10 percent of the amount of the first mortgage loan received by that borrower.
(4) The principal due on the CDA Plus Loan may not be forgiven more rapidly than 1/10 per year for each year of the loan.
(5) The purpose of such a program is to provide a governmental benefit to qualifying first mortgage borrowers by providing settlement costs when doing so will enhance the borrowers' opportunities for affordable housing.
(6) The borrower may be charged a higher rate of interest on the first mortgage loan than the rate charged on first mortgage loans to borrowers who do not receive the CDA Plus Loan.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.20 - Nondiscrimination; Drug and Alcohol Free Workplace

Current through Register Vol. 51, No. 14, July 12, 2024
A. A mortgage lender, servicer, master servicer, developer, or mortgage insurer may not discriminate on the basis of race, color, religion, national origin, sex, marital status, physical or mental disability, sexual orientation, or age, except with regard to age as permitted under the federal Housing for Older Persons Act, as amended from time to time, or other similar federal laws, in any aspect of the Program, or in any aspect of employment by any mortgage lender, servicer, master servicer, developer or mortgage insurer in connection with any property financed or assisted under the Program.
B. A mortgage lender, servicer, master servicer, developer, or mortgage insurer shall comply with all applicable federal, State, and local laws and Department policies and programs regarding discrimination, equal opportunity in employment, housing, and credit practices, and drug and alcohol free workplaces, including:
(1)Titles VI, VII, and VIII of the Civil Rights Act of 1964, as amended,
(2)Title VIII of the Civil Rights Act of 1968, as amended;
(3)The Fair Housing Amendments Act of 1988, as amended;
(4)The Department's Minority Business Enterprise Program, as amended;
(5)The Americans with Disabilities Act of 1990, as amended;
(6)State Government Article, Title 20, Annotated Code of Maryland, as amended; and
(7) Executive Order 01.01.1989.18, Drug and Alcohol Free Workplace, and any Department or State regulations adopted or to be adopted to carry out the requirements of that Order.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.21 - Issuance of Bonds and Notes

Current through Register Vol. 51, No. 14, July 12, 2024
A. Timing of Issuance. The Administration may obtain funds to make or purchase mortgage loans from any source authorized by law, particularly by issuing bonds or notes payable from revenues from the mortgage loans. The timing of any bond or note sale and the acceptability of the interest rate to be paid by the Administration are solely within the discretion of the Secretary.
B. Restricted Bond Purchase. A mortgage lender, servicer, developer, or mortgage insurer, including any related person as defined in §144 of the Code, may not, under any arrangement, formal or informal or direct or indirect, purchase bonds or other obligations of the Administration in an amount related to the aggregate principal amount of the mortgage loans to be sold to the Administration by the mortgage lender, subject to a commitment to a developer, or to be insured by the mortgage insurer.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.02 - Community Development Administration Residential Mortgage Program › Section 05.03.02.22 - Program Operation

Current through Register Vol. 51, No. 14, July 12, 2024
A. Guidelines. The Administration may establish from time to time detailed Program guidelines containing underwriting standards, loan processing requirements, and other requirements or matters relating to the financing and servicing of mortgage loans or to the Program. Copies of these guidelines shall be available for examination at the offices of the applicable mortgage lenders, servicers, and developers and at the Administration's principal office. The Administration, upon request, shall make copies available to the public without charge.
B. Fees. The Administration may charge any commitment fees, application fees, nonusage fees, or other fees, charges, or penalties to applicants, mortgage lenders, servicers, developers, or other individuals or entities that participate in the Program. The Administration may restrict the fees and charges that mortgage lenders, servicers, developers, or other Program participants obtain from mortgagors or applicants.
C. Delegation. In addition to authorized officers identified in Regulation .03B(4) of this chapter, the Secretary may delegate to any other official or employee of the Department or Administration the authority to execute or approve any program documents or loan documents.
D. Designation of Proceeds. The Secretary may from time to time designate use of any portion of the proceeds available under the program for any purpose of the program consistent with the Act and the applicable bond certificates.
E. Waiver. The Secretary may waive or vary particular provisions of these regulations if in the written determination of the Secretary the waiver or variance is:
(1) Not inconsistent with the Act and is not contrary to the provisions of any applicable bond certificate and application of the regulations in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act; or
(2) Necessary to comply with the regulations of the Code or any federal agency.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.03 - Emergency Mortgage Assistance Program › Section 05.03.03.01 - General

Current through Register Vol. 51, No. 14, July 12, 2024
These regulations prescribe the policies, procedures, and authorizations for making emergency assistance mortgage loans to households of limited income.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.03 - Emergency Mortgage Assistance Program › Section 05.03.03.02 - Scope

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Program is designed to provide short-term financing for eligible homeowners who, because of an involuntary loss of income due to unemployment or other extraordinary hardship, are unable to make current mortgage payments on their homes and are likely to have to forfeit the title to their home.
B. The Program is one of four loan programs operated under the Maryland Home Financing Program as authorized by the Act. Other loan programs operating under the Maryland Home Financing Program include programs for making:
(1) Preferred interest adjustable rate loans to certain households of limited income, for the purchase, purchase and rehabilitation, or refinancing of a primary residence as described in COMAR 05.03.01;
(2) Short-term construction loans to developers for the construction of, or rehabilitation of, residential units affordable to certain households of limited income; and
(3) Reverse equity mortgage loans to elderly households of limited income for housing-related expenses and personal expenses which enable the owner to continue to occupy the owner's home, as described in COMAR 05.03.05.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.03 - Emergency Mortgage Assistance Program › Section 05.03.03.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. The following terms have the meanings indicated.
B. Terms Defined.
(1) "Act" means Housing and Community Development Article, Title 4, Subtitle 8, Annotated Code of Maryland, as amended.
(2) "Adjusted annual income" means 100 percent of the projected annual gross income, based on the income from all members of the household 18 years old or older, including social security, retirement income, pensions, wages, overtime, bonuses, commissions, investment and interest income, rental income, disability or unemployment insurance, alimony and support payments, and all other income from any source, less:
(a) Abnormal expenses of a long-term unusual nature such as extraordinary unreimburseable medical, rehabilitation, or special education expenses; and
(b) Unusual or temporary one-time income items, such as judgments or gifts, as determined by the Program.
(3) "Borrower" means an applicant who receives a loan through the Program.
(4) "Closing costs" mean:
(a) Fees or premiums for property and judgment reports, title examination, or other similar expenses;
(b) Fees for preparation of a deed, settlement statement, or other documents;
(c) Payments owed at the time of the loan closing for property taxes, hazard insurance premiums, or ground rent;
(d) Fees for notarizing deeds or other documents;
(e) Appraisal and survey fees;
(f) Recordation taxes and fees;
(g) Fees or premiums for mortgage insurance;
(h) Loan application fees;
(i) Fees for credit reports;
(j) Reasonable legal fees;
(k) Payoff of prior liens or mortgages; and
(l) Other closing costs as approved by the Department.
(5) "Controlled dangerous substance" means a controlled dangerous substance as that term is defined in Criminal Law Article,§
										5-101, Annotated Code of Maryland, as amended.
(6) "Department" means the Maryland Department of Housing and Community Development, a principal department of the State.
(7) "Household" means the individual or individuals who occupy the eligible residence securing the loan.
(8) "Household of limited income" means a household for which the adjusted annual income does not exceed the upper income limit established by the Secretary in accordance with Housing and Community Development Article, §§
										4-806 and  4-807, Annotated Code of Maryland.
(9) "Loan" means a loan made by the Department to a borrower through the Program, and secured by a lien on the eligible residence as defined in Regulation .04.
(10) "Mortgage" means a mortgage or deed of trust.
(11) "Program" means the Emergency Mortgage Assistance Program.
(12) "Secretary" means the Secretary of the Department.
Code of Maryland Regulations › Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Subtitle 03 - HOMEOWNERSHIP PROGRAMS › Chapter 05.03.03 - Emergency Mortgage Assistance Program › Section 05.03.03.04 - Eligible Residences

Current through Register Vol. 51, No. 14, July 12, 2024
A. An eligible residence:
(1) Shall be the primary residence of the borrower;
(2) Shall be a single family dwelling unit located in the State, including a townhouse or condominium;
(3) Shall be real property owned by the borrower in fee simple or under a freely transferable, perpetually renewable, ground lease which permits the lessee to transfer the leasehold interest without the consent of the lessor;
(4) May not be a cooperative or mobile home, which is treated as personalty for the purposes of establishing a security interest.