Code of Vermont Rules › Agency 80 - ADMINISTRATIVE AND ADVISORY AGENCIES › Sub-Agency 120 - HOME MORTGAGE GUARANTEE BOARD › Chapter 001 - RULES FOR GUARANTEES OF MORTGAGE LOANS › Section 80 120 001 - RULES FOR GUARANTEES OF MORTGAGE LOANS

Current through June, 2024
Section 1 Definitions
1.10 "Acquired Property" means any property
			 acquired by a lender through the protection or enforcement of its rights
			 conferred by law in the applicable mortgage loan.
1.11 "Alternative Mortgage Instrument Loan"
			 means:
(i) any mortgage loan secured by a
			 promissory note other than a fixed rate filed term note payable in equal
			 monthly installments of principal and interest throughout the term of the
			 mortgage loan, or
(ii) a mortgage
			 loan secured by a shared appreciation agreement or any mortgage loan which by
			 its terms permits the lender to share in any manner in the equity of the
			 borrower in the security.
1.12 "Board" means the Vermont Home Mortgage
			 Guarantee Board or its successor.
1.13 "Chairperson" means Chairperson of the
			 Vermont Home Mortgage Guarantee Board or its successor, or in his/her absence,
			 the Secretary of the Agency of Development and Community Affairs.
1.14 "Condominium" means a development which
			 is the subject of a Declaration of Condominium within the meaning of the
			 Condominium Ownership Act as amended from time to time, or any substitution
			 thereof which may be adopted as the law of the State of Vermont.
1.15 "Construction Loan" means a loan; the
			 proceeds of which are to be used for the construction, repair, or improvement
			 of a dwelling house, including site acquisition costs.
1.16 "Cooperative Housing Corporation" or
			 "Co-op" means a cooperative housing corporation within the meaning of Chapter
			 14 of Title 11, Vermont Statutes Annotated, as the same may be amended from
			 time to time.
1.17 "Default" means
			 failure of a borrower to comply with any of the terms of a loan agreement,
			 promissory note, or mortgage securing such promissory note.
1.18 "Delinquency" mean an arrearage of two
			 payments or any portion thereof.
1.19 "Developmentally Disabled Person" means
			 a person with a developmental disability as defined in 42 U.S.C. Sec.
			 6001.
1.20 "Elderly Person" means a
			 person age 62 or older or the spouse of such person.
1.21 "Gross Annual Income" means federal
			 adjusted gross income plus claimed depreciation less principal payments on 11
			 business debt.
1.22 "Gross Monthly
			 Income" means borrower's verified gross monthly base earnings from primary
			 employment plus recognizable secondary income, such as without limitation,
			 bonuses, commissions, dividends, overtime, part-time employment, or (where
			 disclosed) alimony and child support payments. Generally, items are counted in
			 secondary income if verified and substantiated for at least six months
			 preceding the date of application and continuation is probable based on
			 foreseeable economic circumstances. In cases of self-employment, gross annual
			 income may be used as the basis of calculating gross monthly income. Generally,
			 the Board will accept a self-employed applicant's Federal Income Tax Return for
			 the most recently concluded tax year as an adequate basis for verification of
			 income, but retains the discretion to require additional verification in
			 appropriate cases.
1.23 "Group
			 Home" means a residential housing unit intended to house three or more elderly,
			 handicapped, or developmentally disabled residents (plus a supervisor's
			 apartment, if provided) in a family-style household.
1.24 "Guarantee" means the obligation of the
			 Board to pay that portion of the indebtedness which is guaranteed by it
			 pursuant to the Act.
1.25
			 "Handicapped Person" means any person who has a physical or mental impairment
			 which substantially limits or one or more major life activities, such as caring
			 for one's self, performing manual tasks, walking, seeing, hearing, speaking,
			 breathing, learning, and working.
1.26 "Indebtedness" means the unpaid
			 principal and accrued interest pursuant to a mortgage loan, together with other
			 allowable items of loss as established by the contract required by Section 2.10
			 of these rules.
1.27 "Lender" means
			 the payee of an obligation at the time it is guaranteed and its assignees and
			 successors.
1.28 "Liquid Assets"
			 means the sum of cash, checking, and savings accounts plus the Liquidation
			 Value of certificates of deposit, money market certificates, and similar
			 instruments, stocks, bonds, debentures and similar instruments, and, where
			 applicable, the applicant's ownership interest in his primary residence at time
			 of application.
1.29 "Liquidation
			 Value" means:
(i) when applied to
			 certificates of deposit, money market certificates, and similar instruments,
			 the face value of the instrument less any applicable liquidation penalty;
(ii) when applied to
			 publicly-traded stocks, bonds, debentures, and similar instruments, the closing
			 price or first bid price as of the date preceding the date of application, less
			 sales costs;
(iii) when applied to
			 non-publicly traded stocks, bonds, debentures, and similar securities, the book
			 value of the security as reasonably estimated by the applicant and accepted by
			 the Board;
(iv) When applied to an
			 applicant's ownership interest in his primary residence (a) the contract price
			 of the primary residence, or (b) where no contract exists, the fair market
			 value of the primary residence as determined or accepted by the Board, less (x)
			 the amount necessary to discharge any and all liens as of the proposed closing
			 date and (y) reasonably estimated closing costs.
1.30 "Monthly Installment Obligations" means
			 the actual or average monthly payment obligation on any debt, other than
			 business debt, payable in periodic installments and as to which more than six
			 installments remain to be paid as of the date of application.
1.31 "Mortgage" means a mortgage deed, deed
			 of trust, or other instrument which shall constitute a first lien on
			 owner-occupied residential housing or a group home for elderly, handicapped or
			 developmentally disabled persons, held by the borrower in fee simple or held
			 under a lease, the term of which shall be for a period of not less than two
			 times that of the mortgage loan term and provided that the interest of the
			 lessee shall be freely assignable.
1.32 "Mortgage Loan" means an interest
			 bearing obligation secured by a mortgage.
1.33 "Planned Residential Development" or
			 "PRD" means an area of land controlled by a landowner, developed or to be
			 developed as a single entity for a number of residences, and which is not a
			 condominium.
1.34 "Purchase Price"
			 means the entire consideration paid or payable upon or on account of the
			 purchase of property, exclusive of customary closing costs. Provided, however,
			 when no sale is contemplated, as in the case of a refinance, purchase price
			 shall mean appraised value.
1.35
			 "Residential Housing" means residential housing units designed primarily to
			 provide principal dwelling accommodations whether on a permanent or temporary
			 basis for persons or families, which may include the land and improvements
			 thereon and such non-housing facilities or services considered necessary or
			 convenient by the Board. Residential Housing includes, but is not limited to,
			 single or multi-family dwellings comprised of not more than four (4) dwelling
			 units, cooperative interests, congregate homes, residential care homes as
			 defined in
			 33 V.S.A. §
											7102, nursing homes, mobile homes, and group
			 homes for elderly, handicapped, or developmentally disabled persons. Also, to
			 qualify as residential housing, only that land that is sufficient to support
			 the basic livability of the residence may be the subject of a
			 guarantee.
1.36 "Seasoned Loan"
			 means any currently outstanding mortgage loan upon which no less than 12
			 monthly payments have been made.
1.37 "Value" means the lesser of (i) the
			 total purchase price of the property, or (ii) the fair market value of the
			 property as of the date of application for loan guarantee as determined by an
			 appraiser or another individual acceptable to the Board under a policy
			 established by resolution of the Board.