Maryland Administrative Code

.18 Processing Procedures. A. Guidelines for underwriting applications for insurance of multifamily loans are those set forth by the Maryland Housing Fund. B. Application. (1) Applications for insurance shall: (a) Be submitted by lenders on forms acceptable to or prescribed by th…

.19 Claims Procedures. A. Notification. In the event of a default on an insured loan, the lender shall notify the Fund in writing within 30 days of the default. For insured lenders other than the Community Development Administration, all notices shall be sent by certified mail ad…

.20 Preclaim Payments and Insurance Coverage. A. Preclaim Payments. (1) The provisions of this section apply to all public agency insured lenders, and to private insured lenders only at the sole discretion of the Fund. (2) After receipt of notice of default, the Fund, upon reques…

.21 Claims Payment. A. Claims Payment—General. The Fund shall pay the claims of the lender with interest at the interest rate of the loan from the date the claim is submitted until the date the claim is paid. Claims shall be paid in cash under §C of this regulation or by delivery…

.22 Partial Claims. A. The Fund may accept and make payment on a partial claim if all of the following conditions are satisfied: (1) The lender requests approval to file a partial claim; (2) At the time the claim is paid the: (a) Partial claim payment is applied by the lender to …

.23 Insurance Termination. A. Maryland Housing Fund insurance coverage shall be terminated if: (1) The lender requests cancellation; (2) A claim is satisfied by the Fund; or (3) The loan is paid in full. B. At the Fund's sole option, Maryland Housing Fund insurance coverage may b…

.24 General Provisions. A. Lender Assignments. (1) Insured loans may not be assigned to another lender without prior written notice to and approval of the Fund. A request for assignment of an insured loan shall be accompanied by submission of an application fee and supporting doc…

.01 Scope. The Fund may provide limited insurance for bridge loans that provide interim financing until equity capital contributions are made by investors when the Fund expects a rental housing project to qualify for federal tax credits. The Fund may insure these bridge loans und…

.02 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 3, Subtitle 2, Annotated Code of Maryland. (2) “Borrower” means the original borrower under a loan and the borr…

.03 Risks Insured. A. The Fund may insure bridge loans to the extent of defaults on the bridge loan, including failure to make payments on the bridge loan, by the borrower which arise when an investor fails to make the capital contributions required to make timely payments on the…

.04 Amount of Insured Loan. A. Except as provided in §B of this regulation, the insured amount of the bridge loan, when added to the amount of any superior liens on the project, may not exceed 95 percent of the project's appraised value as of completion of the improvements, takin…

.05 Permitted Uses of Insured Loan Proceeds. A. The Fund may insure bridge loans only if the loan proceeds are used for acquisition, construction, or rehabilitation and directly related soft costs, including developer fees, syndication fees, and an amount to cover a reasonable pr…

.06 Term of Insurance. A. The Fund may insure a bridge loan having a term longer than the term of the Fund's insurance, but the insurance shall expire on the first to occur of the date which is: (1) One month after the date on which the investor makes the final payment of all sch…

.07 Collateral. Bridge loans shall be secured by: A. A pledge of the investor's note or notes or other instruments evidencing the investor's obligations to make capital contributions; and B. One or more of the following: (1) A mortgage on the project, which may be subordinate to …

.08 Superior Mortgagee's Agreement. The holder of any superior mortgage on the project shall agree that: A. The Fund shall have an opportunity to cure any monetary defaults under the superior mortgage; B. Any defaults that the Fund is unable to cure shall be suspended for a reaso…

.09 Assurance of Completion. Completion of construction of the project shall be assured by provision of either: A. Performance and payment bonds, each in an amount equal to 100 percent of the construction contract amount; B. Two irrevocable letters of credit equal to 25 percent, …

.10 Approval of Project, Loans, and Disbursement. A. Before closing of the bridge loan, the Fund shall review and give its written approval to the completed drawings and specifications for the project, and all loans relating to the project, whether junior or senior to the insured…

.11 Project Management. The Fund requires that either the holder of the first mortgage or the Fund be able to require replacement of the management agent, if either the first mortgagee or the Fund in conjunction with the first mortgagee determines that rent-up or other operation …

.12 Insurance Reserves. A. The Fund may not permit more than 10 percent of its multi-family reserve to be committed for insurance of bridge loans under this regulation. B. Subject to §C of this regulation, the Fund may insure bridge loans from the multi-family reserve or any othe…

.13 Fees. The Fund may charge an application fee, closing fee, and insurance premium. The amount of the premium shall be determined on the basis of each insured loan relative to the degree of risk, as determined by the Fund in its sole discretion. The amount of the fees shall be …

.14 Requirements of COMAR 05.06.01. The requirements of COMAR 05.06.01.06, 07, .10, .11, .18—.21, .23, and .24 shall also apply to bridge loans insured under this chapter. Cross References 05.06.02.01

.01 General. A. These regulations set forth the policies, procedures, and authorization for: (1) Insurance by the Maryland Housing Fund (M.H.F.) of 100 percent or less of a mortgage loan for the purchase, or purchase and rehabilitation, of an owner-occupied home with four or less…

.02 Purpose. A. The Maryland Housing Fund recognizes the important role homeownership plays in stabilizing and revitalizing neighborhoods and communities. The purpose of the Revitalization Program is to provide opportunities to lower the risk of lending by using M.H.F. insurance …

.03 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 3, Subtitle 2, Annotated Code of Maryland, as amended. (2) “Closing costs (financing)” means the credit report …

.04 General Terms and Provisions for Purchase and Purchase/Rehabilitation Loans. A. Insurance Coverage. M.H.F. may insure: (1) Up to 100 percent of a mortgage loan that finances the purchase, or the purchase and rehabilitation, of an eligible property, provided that all of the re…

.05 Special Terms and Provisions for Purchase/Rehabilitation Mortgage Loans. A. In addition to the general terms and provisions required under Regulation .04 of this chapter, the terms and provisions in §§B—E of this regulation apply to M.H.F. insured mortgage loans that finance …

.06 Loans for Purchase and Purchase/Rehabilitation—Maximum Mortgage Amount. A. Maximum Mortgage—General Limit. (1) The maximum mortgage loan amounts insured by M.H.F. under the Revitalization Program shall be within limits set from time to time by the Secretary. (2) If the mortga…

.07 Premiums. Insurance fees for the Revitalization Program are as follows: A. An initial premium of 2 percent of the initial loan balance; and B. A renewal premium of: (1) 0.65 percent of the initial loan balance for 9 annual renewals, and (2) 0.325 percent annually from year 10…

.08 Agreements with Mortgage Lenders. A. Under conditions set forth in this regulation, M.H.F. may enter into agreements with mortgage lenders who wish to make insured mortgage loans under the Revitalization Program. B. Each mortgage lender shall: (1) Be an eligible mortgagee app…

.09 Applicability of Other M.H.F. Regulations Under COMAR 05.06.06 The following regulations under COMAR 05.06.06 apply to the Revitalization Program to the extent that their provisions do not conflict with these regulations for the Revitalization Program: A. COMAR 05.06.06.03, .…

.01 General. A. This chapter sets forth the policies and procedures for insurance by the Maryland Housing Fund of mortgage loans for the refinancing, purchase and rehabilitation, or construction of special housing facility projects. B. The insurance reserve for this Program is th…

.02 Objective. The objective of the Program is to provide insurance of mortgage loans made or purchased by the Community Development Administration to nonprofit organizations for the purpose of financing or refinancing special housing facility projects.

.03 Scope. This Program is intended to insure loans made or purchased by the Administration under its Special Housing Opportunities Program as contained in COMAR 05.04.11.

.04 Definitions. A. In this chapter, the following terms have the meanings indicated. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 3, Subtitle 2, Annotated Code of Maryland. (2) “Administration” means the Community Development Administration,…

.05 Eligible Loans—Generally. A. Type of Loans. Loans made or purchased by the Administration under its Special Housing Opportunities Program, the proceeds of which are to be used to refinance, acquire, construct, or rehabilitate a project are eligible for mortgage insurance from…

.06 Eligible Loans—Maximum Loan Amount. A. For acquisition, construction, or rehabilitation loans, the maximum amount of any loan that may be insured by the Fund under the Program may not exceed the lesser of: (1) 75 percent of the appraised market value of the project; or (2) Th…

.07 Eligible Loans — Environmental and Insurance Conditions. A. Environmental Conditions. (1) Compliance with Law. The lender shall require the sponsor to certify that each mortgage loan to be insured by the Fund is in compliance with applicable local, State, and federal environm…

.08 Eligible Sponsors. A sponsor shall meet all of the following requirements to qualify as an eligible sponsor of an insured mortgage: A. Be a nonprofit organization; B. Be in good standing and qualified to do business in Maryland; C. Own, or upon closing of the loan will own, t…

.09 Eligible Projects. The lender may apply for mortgage insurance under the Program if the project meets the following minimum requirements: A. The project is located in Maryland; B. Title to the project is acceptable to the Fund; C. The project: (1) Conforms to applicable State…

.10 Schedules of Premiums and Fees. The Director, with the approval of the Secretary, shall establish schedules of premiums and fees for insurance of loans under the Program, as required by the Act. Cross References 05.06.04.11C(1) 05.06.04.11C(2) 05.06.04.11D(1)(a) 05.06.04.11D(…

.11 Mortgage Insurance Conditions. A. Appraisal. (1) The Fund requires an appraisal report acceptable to the Fund, in its sole discretion, prepared by a qualified appraiser, before approval of any loan for mortgage insurance. (2) An appraisal shall show the: (a) Current market va…

.12 Processing Procedures. A. Application. The lender shall submit a request for mortgage insurance in a form acceptable to the Fund. B. Review. (1) The Fund may review each application for a loan for which mortgage insurance is intended to determine whether it complies with this…

.13 Claims Procedures. A. Notification. In the event of a default on an insured mortgage, the lender shall notify the Fund in writing within 30 days of the default. B. Preclaim Period. (1) During the first 6 months after the loan is in default, the lender may not assign the mortg…

.14 Claims Payment. A. Limits. (1) Coverage by the Fund does not include loss from: (a) Casualty losses; (b) Impaired title losses; or (c) Default due to loss of tax-exempt status of the loan. (2) Expenses incurred for property repair resulting from insurable causes including, bu…

.15 Books and Accounts. A. The lender shall require the sponsor and its contractors and subcontractors to maintain such books, accounts, and records, and shall file with the lender such financial and other reports as the Fund from time to time may require. B. The books, accounts,…

.16 General Provisions. A. Reinsurance. Mortgage loans insured by the Fund may be reinsured or coinsured by and with public or private mortgage insurers, or through federal guarantees, when available. Portions of risk on any mortgage loan insured by the Fund may be assigned to ot…

.01 General. These regulations set forth the policies and procedures for issuance of mortgage insurance by the Maryland Housing Fund to insure single family residential property.

.02 Scope. A. Single Family Regular Program Reserve. Mortgage loans secured by residential real property may be insured by the Maryland Housing Fund under its Single Family Regular Program Reserve. Insurance for the following three programs is supported by the Single Family Regul…

.03 Definitions. A. In this chapter, terms appearing in the Act have the meanings as defined in the Act, and, in addition, the meanings used in these regulations. B. Terms Defined. (1) “Act” means Housing and Community Development Article, Title 3, Subtitle 2, Annotated Code of M…

.04 Reserves. A. Types of Reserves. (1) All insurance issued by the Fund is backed by an insurance reserve. (2) There currently exist the following seven separate reserves: (a) One for multifamily insurance; (b) Three for single family insurance; (c) One for general reserve insur…