99- 346 C.M.R. ch. 1, § 17 - Lenders

A. Distribution of Mortgage Money. MaineHousing may make Mortgage Loan money available to Eligible Borrowers through Lenders. MaineHousing will notify Lenders when Mortgage Loan money is available.

B. Participation of Lenders. To participate as a Lender, a financial institution must be authorized to do business in Maine and be in compliance with all applicable laws. The financial institution must submit an application including its financial statements, its current underwriting practices and guidelines for residential mortgage loans, staff experience and training, fidelity bond and errors and omissions insurance coverage, and proof that an adequate system of quality control exists for originating residential mortgage loans.

C. Eligibility Determination. A Lender shall review each application for a Mortgage Loan and take reasonable steps to verify the information provided in the application.

D. Loan Registration. A Lender shall register each loan application submitted by an Applicant in accordance with the loan registration requirements contained in the Procedural Guide.

E. Duty to Repurchase. A Lender shall repurchase any Mortgage Loan sold to MaineHousing if:

(1) MaineHousing determines that any representation was untrue when made, a misstatement of a material fact exists in any of the documents delivered in connection with the Mortgage Loan, or any warranty or term required of the Lender has been breached;

(2) the mortgage insurer or guarantor fails to deliver a certificate of insurance or a guaranty certificate for the Mortgage Loan, if applicable; or

(3) the Lender fails to deliver any documents required by the Procedural Guide or required by MaineHousing as a condition of purchase, all in form and substance satisfactory to MaineHousing within the period provided in the Procedural Guide; or

(4) the Mortgage Loan does not conform to the requirements of this rule, the Mortgage Purchase Agreement, or the Procedural Guide.

F. First Come, First Served. A Lender shall process applications on a first come, first served basis. A Lender shall not reject an application because the Applicant is not a depositor or customer. A Lender shall accept and process all applications for Mortgage Loans unless it appears from information provided that the Applicant would not be an Eligible Borrower.

G. No Discrimination. A Lender shall not discriminate against any person or group of persons on account of race, color, religion, age, familial status, physical or mental disability, sex, sexual orientation, marital status or national origin, or on any other basis prohibited by federal, state or local law.

H. Mortgage Purchase Agreement. A Lender shall enter into a Mortgage Purchase Agreement with MaineHousing.

I. Prudent Investment and Reinvestment Certificate. Unless otherwise agreed, MaineHousing shall not purchase a Mortgage Loan unless the Lender certifies that in its judgment the Mortgage Loan would in all respects be a prudent investment for its own account and that the proceeds of the sale or its equivalent shall be reinvested in mortgages or notes providing financing for housing within the State of Maine.

J. Continued Participation. MaineHousing may impose conditions on Lenders' continued participation such as requiring Lenders to issue a certain number of Mortgage Loans or to continue to maintain a certain level of quality in originating and selling Mortgage Loans.

Notes

99- 346 C.M.R. ch. 1, § 17