99- 346 C.M.R. ch. 1, § 12 - Loan Document Requirements
A.
Security. The Mortgage Loan shall be evidenced by a promissory
note and secured by a perfected first lien Mortgage on an Eligible
Residence.
B.
Binding
Obligations. The Mortgage, note and any other instruments securing the
Mortgage Loan shall create legal, valid, and binding obligations of the
Mortgagor, enforceable in accordance with their terms, free from any right of
set-off, counterclaim, or other claim or defense.
C.
Use of Funds. Mortgage Loan
funds shall be used only to finance the acquisition, acquisition plus
improvement, or qualified rehabilitation of an Eligible Residence.
D.
Term. The original term of
the Mortgage Loan shall not exceed thirty years excluding any construction
period.
E.
Amortization. The Mortgage Loan documents shall provide for
monthly payments, interest payable in arrears, and full repayment by maturity.
Amortization shall commence within two months after closing. Monthly
amortization payments shall be due on the first day of each month, and the
final payment date shall be shown on the loan documents.
F.
Late Fee. The Mortgage shall
provide for a late charge in an amount not to exceed 5% on payments fifteen
days or more past due.
G.
Escrow. The Mortgage shall provide for the monthly collection of
escrow payments for real estate taxes, any mortgage insurance premiums, and
hazard insurance premiums in addition to the monthly amortization
payments.
H.
Good
Repair. The Mortgage shall require the Mortgagor to keep the residence
in good repair and condition, to keep the residence free from liens and
encumbrances, and to maintain hazard insurance.
I.
Lender's Compliance with
Laws. Lenders shall make the Mortgage Loans in compliance with all
applicable federal and state laws, rules and regulations, including without
limitation truth-in-lending laws, fair credit reporting laws, and equal
opportunity laws.
J.
Mortgagor's Compliance with Rule. The Mortgage shall contain
covenants and representations assuring the Mortgagor's compliance with this
rule.
K.
Due-On-Sale.
The Mortgage shall contain a due-on-sale clause.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.