§ 4-237. Mortgage purchases and loans

   (a) Powers of Administration. -- The Administration may:

   (1) purchase or commit to purchase, from a mortgage lender that is eligible under § 4-236 of this subtitle, a note, mortgage, or partial interest in a note or mortgage that evidences:

      (i) a residential mortgage loan to a family of limited income; or

      (ii) a mortgage loan to a sponsor of a community development project or a public purpose project;

   (2) make a loan to an eligible mortgage lender in accordance with this subtitle;

   (3) finance, with proceeds of its revenue bonds or notes, all or part of a mortgage purchase program or a loan to a mortgage lenders program; and

   (4) take any action necessary or convenient to carry out this subsection, including:

      (i) settling or compromising an obligation or debt to the Administration, subject to any agreement with bondholders;

      (ii) acquiring an interest in real or personal property by gift, purchase, foreclosure, or otherwise, and selling or otherwise disposing of the property;

      (iii) obtaining insurance against loss in connection with its property and other assets, including mortgage loans, in the amount and from the insurer that the Administration considers desirable;

      (iv) contracting for servicing of a mortgage loan or an interest in a mortgage loan that the Administration holds or takes as collateral; and

      (v) making a contract or commitment that relates to the exercise of any of the powers listed in this subsection.

(b) Regulations. -- The Administration may adopt regulations or program directives, as appropriate, to carry out this section, including:

   (1) procedures to submit requests for the purchase or sale of mortgage loans or for loans to the eligible mortgage lenders;

   (2) restrictions as to the number of family units, locations, or other qualifications or characteristics of dwellings to be financed by residential mortgage loans;

   (3) restrictions as to:

      (i) the interest rates on loans made from the proceeds of purchases of mortgage loans or from the proceeds of loans to eligible mortgage lenders; or

      (ii) returns realized by eligible mortgage lenders;

   (4) restrictions on maturities and other terms of loans made from the proceeds of purchases of mortgage loans or from the proceeds of loans to eligible mortgage lenders;

   (5) requirements as to the application by eligible mortgage lenders of the proceeds of the purchases or loans;

   (6) schedules of fees and charges necessary to provide for expenses and reserves of the Administration;

   (7) standards for allocating money among areas of the State and among eligible mortgage lenders; and

   (8) provisions on warranties, representations, certifications, rights of inspection and audit, program sanctions, and other methods of ensuring compliance with the terms of purchase commitments and loans.

HISTORY: An. Code 1957, art. 83B, § 2-208(a), (b); 2005, ch. 26, § 2.