Rhode Island Code of Regulations › Title 825 - Housing and Mortgage Finance Corporation › Chapter 20 - Rules Relative to Single-Family Loan Programs › Subchapter 00 - N/A › Part 1 - Mortgage Finance Programs (825-RICR-20-00-1) › Section 825-RICR-20-00-1.3 - PURPOSE AND PROCEDURE

Current through June 14, 2024
A. Scope of this Part. This Part is intended to provide the public with the criteria used by the Corporation in determining which persons will benefit from its Programs and in selecting, where appropriate, Mortgage Lenders and other third parties to assist the Corporation in the implementation of its Programs. The Corporation's Programs are structured to make home ownership more affordable for low and moderate income residents of the State and to stimulate the production of housing, including cooperative housing, within the State.
B. General Procedures for Purchase of Mortgage Loans.
1. The Corporation generally secures funds to purchase Mortgage Loans by issuing tax-exempt bonds. Proceeds of these bonds may be made available directly or may become available as a result of investment earnings or because of the advance payment or other termination of Mortgage Loans previously purchased. Since the enactment of the Tax Act, certain specific requirements concerning the eligibility of Borrowers and the Dwellings being financed with the proceeds of tax-exempt bonds have been adopted by the Corporation and must be adhered to by the Corporation in connection with certain of its Programs. However, the Corporation may remove certain of such requirements with respect to Mortgage Loans to be purchased from funds which are not subject to such requirements and to add certain requirements under the Program as are necessary to effect compliance with the Tax Act.
2. The Corporation will from time to time notify all of its Mortgage Lenders of funds for set aside for Mortgage Loans in Targeted Areas or for new construction, rehabilitation, or other particular types of eligible properties under §
											1.4     of this Part or for lower income Borrowers. All Mortgage Lenders will be given the opportunity to register Mortgage Loans for purchase by the Corporation on forms provided by the Corporation. The Corporation may, at any time it deems necessary or advisable, suspend the acceptance of reservations from any or all Mortgage Lenders.
3. Under the Tax Act, certain funds must be set aside for a one (1) year period from the date such funds are initially available to make loans in Targeted Areas as defined in the Tax Act. In addition, funds may be set aside for loans generally or for particular types of loans including, without limitation, second mortgage loans and loans for Borrowers having certain income or other characteristics, it being intended hereby to provide flexibility to the Corporation to carry out the purposes of the Act. The Corporation will establish limitations on the period of time during which funds will be reserved for a particular loan from amounts set aside by the Corporation generally or for a particular purpose. In the sole discretion of the Corporation, such time limitations may be extended because of circumstances beyond the control of the Borrower. Purchases will be made only pursuant to the Mortgage Purchase Agreement.
4. The Corporation may from time to time by Program Bulletin notify Mortgage Lenders of new Programs and will periodically notify them of rate changes and other changes in the terms and conditions of Programs.
5. The Corporation will accept Registrations from Mortgage Lenders only upon or subject to the availability of funds. Registrations will be accepted from Mortgage Lenders on a first come, first serve basis. Registrations and related information issued by the Corporation are commitments solely to reserve funds for Mortgage Loan purchases on terms and conditions set forth in the Regulations and are not commitments to purchase the Mortgage Loans. The Corporation reserves the right to impose additional requirements on Mortgage Lenders prior to permitting participation in any Program in order to further the objectives of the Act and this Part.
6. Registrations must be submitted to the Corporation for confirmation within a business day after a Mortgage from applicant is received by a Mortgage Lender. The Corporation will confirm such registration in writing. The Corporation may require Mortgage Lenders to provide periodic reports concerning the status of applications, commitments, loan closings and Mortgage Loans submitted for purchase. The Corporation at its sole discretion may reduce or otherwise limit the Registrations by a Mortgage Lender and reallocate such amounts in accordance with its normal procedures.
7. In addition, where circumstances beyond the control of the individual Mortgage Lenders make it appropriate, the expiration dates for Registrations may be extended for all Mortgage Lenders.