Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 10 - RULES AND REGULATIONS - GENERAL PROVISIONS FOR PROGRAMS OF THE VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Section 13VAC10-10-80 - Purchase of mortgage loans

Current through Register Vol. 40, No. 24, July 15, 2024
A. The authority may from time to time,
				pursuant and subject to its rules and regulations, purchase mortgage loans from
				mortgage lenders, including, without limitation, the purchase of single family
				mortgage loans pursuant to 13VAC10-40. In furtherance thereof, the executive
				director may request mortgage lenders to submit offers to sell mortgage loans
				to the authority in such manner, within such time period and subject to such
				terms and conditions as he shall specify in such request. The executive
				director may take such action as he shall deem necessary or appropriate to
				solicit offers to sell mortgage loans, including mailing of the request to
				mortgage lenders, advertising in newspapers or other publications and any other
				methods of public announcement which he may select as appropriate under the
				circumstances. The executive director may also consider and accept offers for
				sale of individual mortgage loans submitted from time to time to the authority
				without any solicitation therefor by the authority.
B. The authority shall require as a condition
				of the purchase of any mortgage loans from a mortgage lender pursuant to this
				section that such mortgage lender within 180 days from the receipt of proceeds
				of such purchase shall enter into written commitments to make, and shall
				thereafter proceed as promptly as practical to make and disburse from such
				proceeds, residential mortgage loans in the Commonwealth of Virginia having a
				stated maturity of not less than 20 years from the date thereof in an aggregate
				principal amount equal to the amount of such proceeds. The requirement in
				subsection B of this section shall not apply to the purchase by the authority
				of a mortgage loan that, when made by the mortgage lender, is to be purchased
				by the authority or that is held, insured, or assisted by the federal
				government or any agency or instrumentality thereof.
C. At or before the purchase of any mortgage
				loan pursuant to this section, the mortgage lender shall certify to the
				authority that the mortgage loan would in all respects be a prudent investment
				and that the proceeds of the purchase of the mortgage loan shall be invested as
				provided in subsection B of this section or invested in short-term obligations
				pending such investment; provided, however, that such certification shall not
				be required in the case of the purchase by the authority of a mortgage loan
				that, when made by the mortgage lender, is to be purchased by the authority or
				that is held, insured, or assisted by the federal government or any agency or
				instrumentality thereof.
D. The
				purchase price for any mortgage loan to be purchased by the authority pursuant
				to this section shall be established or determined in accordance with
				subsection B of § 36-55.35 of the Code of Virginia.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.