§ 36-55.36. Terms and conditions of mortgage insurance.
(1) For mortgage payments to be eligible for insurance under the provisionsof this chapter, the underlying mortgage loan shall: (a) be one which is madeto and held by a mortgagee approved by HDA as responsible and able to servicethe mortgage properly; (b) not exceed (i) 100% of the estimated cost of suchproposed housing development if owned or to be owned by a nonprofit mortgagoror if owned by a person or family of low or moderate income, in the case of asingle-family dwelling or condominium; or, (ii) 95% of the estimated cost ofthe proposed housing development if owned or to be owned by any othermortgagor; (c) have a maturity satisfactory to HDA but in no case longer than80% of HDA's estimate of the remaining useful life of said housing or 40years from the date of the issuance of insurance, whichever is earlier; (d)contain amortization provisions satisfactory to HDA requiring periodicpayments by the mortgagor not in excess of his reasonable ability to pay asdetermined by HDA; (e) be in such form and contain such terms and provisionswith respect to maturity, property insurance, repairs, alterations, paymentof taxes and assessments, default reserves, delinquency charges, defaultremedies, anticipation of maturity, additional and secondary liens, equitableand legal redemption rights, prepayment privileges and other matters as HDAmay prescribe.
(2) All applications for mortgage insurance shall be forwarded, together withan application fee prescribed by HDA, to the executive director of HDA. HDAshall cause an investigation of the proposed housing to be made, review theapplication and the report of the investigation, and approve or deny theapplication. No application shall be approved unless HDA finds that it isconsistent with the purposes of this chapter and further finds that thefinancing plan for the proposed housing is sound. HDA shall notify theapplicant and the proposed lender of its decision. Any such approval shall beconditioned upon payment to HDA, within such reasonable time and afternotification of approval as may be specified by HDA, of the commitment feeprescribed by HDA.
(3) HDA shall fix mortgage insurance premiums for the insurance of mortgagepayments under the provisions of this chapter. Such premiums shall becomputed as a percentage of the principal of the mortgage outstanding at thebeginning of each mortgage year, but shall not be more than one-half of oneper centum per year of such principal amount. The amount of premium need notbe uniform for all insured loans. Such premiums shall be payable bymortgagors or mortgagees in such manner as prescribed by HDA.
(4) In the event of default by the mortgagor, the mortgagee shall notify HDAboth of the default and the mortgagee's proposed course of action. When itappears feasible, HDA may for a temporary period upon default or threateneddefault by the mortgagor authorize mortgage payments to be made by HDA to themortgagee which payments shall be repaid under such conditions as HDA mayprescribe. HDA may also agree to revised terms of financing when such appearprudent. The mortgagee shall be entitled to receive the benefits of theinsurance provided herein upon: (a) Any sale of the mortgaged property bycourt order in foreclosure or a sale with the consent of HDA by the mortgagoror a subsequent owner of the property or by the mortgagee after foreclosureor acquisition by deed in lieu of foreclosure, provided all claims of themortgagee against the mortgagor or others arising from the mortgage,foreclosure, or any deficiency judgment shall be assigned to HDA withoutrecourse except such claims as may have been released with the consent ofHDA; or (b) the expiration of six months after the mortgagee has taken titleto the mortgaged property under judgment of strict foreclosure, foreclosureby sale or other judicial sale, or under a deed in lieu of foreclosure ifduring such period the mortgagee has made a bona fide attempt to sell theproperty, and thereafter conveys the property to HDA with an assignment,without recourse, to HDA of all claims of the mortgagee against the mortgagoror others arising out of the mortgage foreclosure, or deficiency judgment; or(c) the acceptance by HDA of title to the property or an assignment of themortgage, without recourse to HDA, in the event HDA determines it imprudentto proceed under (a) or (b) above. Upon the occurrence of either (a), (b) or(c) hereof, the obligation of the mortgagee to pay premium charges forinsurance shall cease, and HDA shall, within thirty days thereafter, pay tothe mortgagee ninety-eight percent of the sum of (i) the then unpaidprincipal balance of the insured indebtedness, (ii) the unpaid interest tothe date of conveyance or assignment to HDA, as the case may be, (iii) theamount of all payments made by the mortgagee for which it has not beenreimbursed for taxes, insurance, assessments and mortgage insurance premiums,and (iv) such other necessary fees, costs or expenses of the mortgagee as maybe approved by HDA.
(5) Upon request of the mortgagee, HDA may at any time, under such terms andconditions as it may prescribe, consent to the release of the mortgagor fromhis liability or consent to the release of parts of the property from thelien of the mortgage, or approve a substitute mortgagor or sale of theproperty or part thereof.
(6) No claim for the benefit of the insurance provided in this chapter shallbe accepted by HDA except within one year after any sale or acquisition oftitle of the mortgaged premises described in subdivision (a) or (b) ofsubsection (4) of this section.
§ 36-55.36. Terms and conditions of mortgage insurance.
(1) For mortgage payments to be eligible for insurance under the provisionsof this chapter, the underlying mortgage loan shall: (a) be one which is madeto and held by a mortgagee approved by HDA as responsible and able to servicethe mortgage properly; (b) not exceed (i) 100% of the estimated cost of suchproposed housing development if owned or to be owned by a nonprofit mortgagoror if owned by a person or family of low or moderate income, in the case of asingle-family dwelling or condominium; or, (ii) 95% of the estimated cost ofthe proposed housing development if owned or to be owned by any othermortgagor; (c) have a maturity satisfactory to HDA but in no case longer than80% of HDA's estimate of the remaining useful life of said housing or 40years from the date of the issuance of insurance, whichever is earlier; (d)contain amortization provisions satisfactory to HDA requiring periodicpayments by the mortgagor not in excess of his reasonable ability to pay asdetermined by HDA; (e) be in such form and contain such terms and provisionswith respect to maturity, property insurance, repairs, alterations, paymentof taxes and assessments, default reserves, delinquency charges, defaultremedies, anticipation of maturity, additional and secondary liens, equitableand legal redemption rights, prepayment privileges and other matters as HDAmay prescribe.
(2) All applications for mortgage insurance shall be forwarded, together withan application fee prescribed by HDA, to the executive director of HDA. HDAshall cause an investigation of the proposed housing to be made, review theapplication and the report of the investigation, and approve or deny theapplication. No application shall be approved unless HDA finds that it isconsistent with the purposes of this chapter and further finds that thefinancing plan for the proposed housing is sound. HDA shall notify theapplicant and the proposed lender of its decision. Any such approval shall beconditioned upon payment to HDA, within such reasonable time and afternotification of approval as may be specified by HDA, of the commitment feeprescribed by HDA.
(3) HDA shall fix mortgage insurance premiums for the insurance of mortgagepayments under the provisions of this chapter. Such premiums shall becomputed as a percentage of the principal of the mortgage outstanding at thebeginning of each mortgage year, but shall not be more than one-half of oneper centum per year of such principal amount. The amount of premium need notbe uniform for all insured loans. Such premiums shall be payable bymortgagors or mortgagees in such manner as prescribed by HDA.
(4) In the event of default by the mortgagor, the mortgagee shall notify HDAboth of the default and the mortgagee's proposed course of action. When itappears feasible, HDA may for a temporary period upon default or threateneddefault by the mortgagor authorize mortgage payments to be made by HDA to themortgagee which payments shall be repaid under such conditions as HDA mayprescribe. HDA may also agree to revised terms of financing when such appearprudent. The mortgagee shall be entitled to receive the benefits of theinsurance provided herein upon: (a) Any sale of the mortgaged property bycourt order in foreclosure or a sale with the consent of HDA by the mortgagoror a subsequent owner of the property or by the mortgagee after foreclosureor acquisition by deed in lieu of foreclosure, provided all claims of themortgagee against the mortgagor or others arising from the mortgage,foreclosure, or any deficiency judgment shall be assigned to HDA withoutrecourse except such claims as may have been released with the consent ofHDA; or (b) the expiration of six months after the mortgagee has taken titleto the mortgaged property under judgment of strict foreclosure, foreclosureby sale or other judicial sale, or under a deed in lieu of foreclosure ifduring such period the mortgagee has made a bona fide attempt to sell theproperty, and thereafter conveys the property to HDA with an assignment,without recourse, to HDA of all claims of the mortgagee against the mortgagoror others arising out of the mortgage foreclosure, or deficiency judgment; or(c) the acceptance by HDA of title to the property or an assignment of themortgage, without recourse to HDA, in the event HDA determines it imprudentto proceed under (a) or (b) above. Upon the occurrence of either (a), (b) or(c) hereof, the obligation of the mortgagee to pay premium charges forinsurance shall cease, and HDA shall, within thirty days thereafter, pay tothe mortgagee ninety-eight percent of the sum of (i) the then unpaidprincipal balance of the insured indebtedness, (ii) the unpaid interest tothe date of conveyance or assignment to HDA, as the case may be, (iii) theamount of all payments made by the mortgagee for which it has not beenreimbursed for taxes, insurance, assessments and mortgage insurance premiums,and (iv) such other necessary fees, costs or expenses of the mortgagee as maybe approved by HDA.
(5) Upon request of the mortgagee, HDA may at any time, under such terms andconditions as it may prescribe, consent to the release of the mortgagor fromhis liability or consent to the release of parts of the property from thelien of the mortgage, or approve a substitute mortgagor or sale of theproperty or part thereof.
(6) No claim for the benefit of the insurance provided in this chapter shallbe accepted by HDA except within one year after any sale or acquisition oftitle of the mortgaged premises described in subdivision (a) or (b) ofsubsection (4) of this section.
§ 36-55.36. Terms and conditions of mortgage insurance.
(1) For mortgage payments to be eligible for insurance under the provisionsof this chapter, the underlying mortgage loan shall: (a) be one which is madeto and held by a mortgagee approved by HDA as responsible and able to servicethe mortgage properly; (b) not exceed (i) 100% of the estimated cost of suchproposed housing development if owned or to be owned by a nonprofit mortgagoror if owned by a person or family of low or moderate income, in the case of asingle-family dwelling or condominium; or, (ii) 95% of the estimated cost ofthe proposed housing development if owned or to be owned by any othermortgagor; (c) have a maturity satisfactory to HDA but in no case longer than80% of HDA's estimate of the remaining useful life of said housing or 40years from the date of the issuance of insurance, whichever is earlier; (d)contain amortization provisions satisfactory to HDA requiring periodicpayments by the mortgagor not in excess of his reasonable ability to pay asdetermined by HDA; (e) be in such form and contain such terms and provisionswith respect to maturity, property insurance, repairs, alterations, paymentof taxes and assessments, default reserves, delinquency charges, defaultremedies, anticipation of maturity, additional and secondary liens, equitableand legal redemption rights, prepayment privileges and other matters as HDAmay prescribe.
(2) All applications for mortgage insurance shall be forwarded, together withan application fee prescribed by HDA, to the executive director of HDA. HDAshall cause an investigation of the proposed housing to be made, review theapplication and the report of the investigation, and approve or deny theapplication. No application shall be approved unless HDA finds that it isconsistent with the purposes of this chapter and further finds that thefinancing plan for the proposed housing is sound. HDA shall notify theapplicant and the proposed lender of its decision. Any such approval shall beconditioned upon payment to HDA, within such reasonable time and afternotification of approval as may be specified by HDA, of the commitment feeprescribed by HDA.
(3) HDA shall fix mortgage insurance premiums for the insurance of mortgagepayments under the provisions of this chapter. Such premiums shall becomputed as a percentage of the principal of the mortgage outstanding at thebeginning of each mortgage year, but shall not be more than one-half of oneper centum per year of such principal amount. The amount of premium need notbe uniform for all insured loans. Such premiums shall be payable bymortgagors or mortgagees in such manner as prescribed by HDA.
(4) In the event of default by the mortgagor, the mortgagee shall notify HDAboth of the default and the mortgagee's proposed course of action. When itappears feasible, HDA may for a temporary period upon default or threateneddefault by the mortgagor authorize mortgage payments to be made by HDA to themortgagee which payments shall be repaid under such conditions as HDA mayprescribe. HDA may also agree to revised terms of financing when such appearprudent. The mortgagee shall be entitled to receive the benefits of theinsurance provided herein upon: (a) Any sale of the mortgaged property bycourt order in foreclosure or a sale with the consent of HDA by the mortgagoror a subsequent owner of the property or by the mortgagee after foreclosureor acquisition by deed in lieu of foreclosure, provided all claims of themortgagee against the mortgagor or others arising from the mortgage,foreclosure, or any deficiency judgment shall be assigned to HDA withoutrecourse except such claims as may have been released with the consent ofHDA; or (b) the expiration of six months after the mortgagee has taken titleto the mortgaged property under judgment of strict foreclosure, foreclosureby sale or other judicial sale, or under a deed in lieu of foreclosure ifduring such period the mortgagee has made a bona fide attempt to sell theproperty, and thereafter conveys the property to HDA with an assignment,without recourse, to HDA of all claims of the mortgagee against the mortgagoror others arising out of the mortgage foreclosure, or deficiency judgment; or(c) the acceptance by HDA of title to the property or an assignment of themortgage, without recourse to HDA, in the event HDA determines it imprudentto proceed under (a) or (b) above. Upon the occurrence of either (a), (b) or(c) hereof, the obligation of the mortgagee to pay premium charges forinsurance shall cease, and HDA shall, within thirty days thereafter, pay tothe mortgagee ninety-eight percent of the sum of (i) the then unpaidprincipal balance of the insured indebtedness, (ii) the unpaid interest tothe date of conveyance or assignment to HDA, as the case may be, (iii) theamount of all payments made by the mortgagee for which it has not beenreimbursed for taxes, insurance, assessments and mortgage insurance premiums,and (iv) such other necessary fees, costs or expenses of the mortgagee as maybe approved by HDA.
(5) Upon request of the mortgagee, HDA may at any time, under such terms andconditions as it may prescribe, consent to the release of the mortgagor fromhis liability or consent to the release of parts of the property from thelien of the mortgage, or approve a substitute mortgagor or sale of theproperty or part thereof.
(6) No claim for the benefit of the insurance provided in this chapter shallbe accepted by HDA except within one year after any sale or acquisition oftitle of the mortgaged premises described in subdivision (a) or (b) ofsubsection (4) of this section.
