99-346 C.M.R. ch. 1, § 18 - Loan Servicing

A. Qualified Servicers. Only a financial institution designated as a Qualified Servicer may service the Mortgage Loans. A Lender that is not designated a Qualified Servicer and has not previously designated another Qualified Servicer to service its Mortgage Loans shall release its servicing rights to MaineHousing for a release fee established by MaineHousing.

B. Servicing Agreement. A Qualified Servicer shall enter into a Servicing Agreement with MaineHousing.

C. Responsibilities. A Qualified Servicer collects all payments from the Mortgagor, remits principal and interest payments to MaineHousing, and renders an accounting to MaineHousing of all sums collected and disbursed. A Qualified Servicer shall service Mortgage Loans in accordance with prudent servicing practices, the Servicing Agreement, and the Procedural Guide.

D. Fee. A Qualified Servicer receives a monthly servicing fee from MaineHousing.

E. Default. A Qualified Servicer shall give notice of default on a Mortgage Loan to MaineHousing and shall foreclose or take other actions necessary to protect MaineHousing's interest in accordance with MaineHousing's instructions.

F. Indemnification. A Qualified Servicer shall purchase any Mortgage Loan serviced by it or otherwise indemnify MaineHousingas outlined in the Servicing Agreement if:

(1) its negligence causes the mortgage insurance to lapse;

(2) its misfeasance, nonfeasance, or malfeasance with respect to servicing of the Mortgage Loan causes or threatens MaineHousing with material loss;

(3) it waives the repayment of the Mortgage Loan upon the sale of the Eligible Residence or approves the assumption of the Mortgage Loan without MaineHousing's prior written consent; or

(4) any attempted foreclosure proceeding is prevented, delayed, or judicially determined to be improper by virtue of a defect in the documents assigned to MaineHousing.

Notes

99-346 C.M.R. ch. 1, § 18