3 AAC 99.290 - Servicing of loans
(a) The authority will enter into a servicing
agreement with each originator that
(1)
provides that all servicing will be by the originator;
(2) provides methods for the collection of
delinquent payments of principal and interest and foreclosure or exercise of
security rights undertaken by the originator;
(3) provides for periodic reports to the
authority by the originator; and
(4) requires the originator to service the
loan in accordance with accepted business practices, including, but not limited
to, prompt collection of amounts due under the loan.
(b) The originator must provide a bond and/or
insurance policy considered sufficient by the authority which protects the
authority against errors, omissions, fraud, or dishonesty committed by the
originator, including any of the originator's officers, directors, employees,
and agents.
(c) The authority may
enter into a loan modification agreement with the originator and the borrower
if the authority determines that the loan modification will assist in the
economic survival of the borrower during a period of economic hardship while
maximizing the ultimate return to the authority. The authority must receive a
non-refundable $500 modification fee before entering a loan modification
agreement.
(d) The authority may
include in a loan commitment provisions relating to the differential
amortization provisions as between the authority's portion of the loan and the
originator's portion as permitted in
3
AAC 99.230(f) and
3
AAC 99.240(f). Such provisions may
include, but are not limited to, provisions relating to servicing fees,
prepayments, security, and remedies.
(e) The authority may approve the assumption
of an outstanding loan in which the authority participates after evaluating the
collateral securing the loan and the financial and credit history and ability
to repay of the entity proposing to assume the loan. The authority must receive
a nonrefundable assumption fee of one percent of the outstanding balance before
entering a loan assumption agreement.
Notes
Authority:AS 44.88.080
AS 44.88.085
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