Md. Code Regs. 05.03.02.11 - Loan Purchase Program-Approval of Mortgage Lender

A. A mortgage lender may apply to be approved to participate as an eligible lender under the Program to originate mortgage loans for purchase by the Administration.

B. An eligible mortgage lender shall certify at the time of application for approval, and shall update the certifications as required by the Administration, that the lender is:

(1) In compliance with all applicable State and federal laws and regulations governing the business of the mortgage lender and the making of residential mortgage loans for residential housing; and

(2) Except as provided in §F of this regulation, approved by the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).

C. The Administration may approve eligible mortgage lenders that:

(1) Meet the Administration's standards in §B of this regulation;

(2) In the estimation of the Administration, are reputable and financially sound;

(3) Provide all required documentation, information, and counsel opinions acceptable to the Administration as set forth in §D of this regulation; and

(4) Execute all program documents for participating mortgage lenders in the form prescribed by the Administration.

D. A mortgage lender shall provide the Administration with:

(1) A counsel's opinion in form and substance satisfactory to the Administration; and

(2) Any financial data, documents, or other information that the Administration requires.

E. A mortgage lender approved by the Administration shall:

(1) Enter into a mortgage purchase agreement with the Administration, as amended from time to time, stating the general terms and conditions on which the Administration will purchase mortgage loans from the mortgage lender;

(2) At the request of the Administration, provide supplemental opinions, documents, and information in order to remain approved by the Administration for participation in the Program.

F. A mortgage lender that is not an FNMA or FHLMC approved seller of mortgage loans may be approved to sell mortgage loans to the Administration if the:

(1) Lender qualifies to participate under all other Program requirements;

(2) Lender meets any minimum origination requirements of the Administration; and

(3) Lender meets any additional requirements of the Administration.

Notes

Md. Code Regs. 05.03.02.11

Regulations .11 adopted as an emergency provision effective April 23, 1980 (7:10 Md. R. 949); adopted permanently effective September 5, 1980 (7:18 Md. R. 1737)
Regulations .11 adopted effective July 30, 1984 (11:15 Md. R. 1329)
Regulations .11 adopted effective September 30, 1991 (18:19 Md. R. 2098)
Regulation .11F amended effective January 2, 2006 (32:26 Md. R. 1995)