Haw. Code R. § 6-27-18 - Precertification of applicant's eligibility

(a) Precertification against future allocations may be obtained from the system for the following purposes:

(1) To purchase a principal home which is under construction or will be constructed and will be conveyed to the borrower upon completion of construction;

(2) To finance the purchase of the fee simple interest on leasehold land which is located a principal home.

(b) If the system precertifies the applicant as an eligible member, the lender may issue a precommitment to make the applicant a member home loan, subject to the following conditions:

(1) The availability of funds for the allocation period when the member is recertified;

(2) The eligibility and qualification of the member to take out a loan at loan closing;

(3) The possibility that the interest rate may have changed when the member is recertified as still being eligible.

(c) The lender shall recertify the member to assure that the member is still eligible to obtain a member home loan within thirty days of the date the loan proceeds are anticipated to be funded.

(d) The terms and conditions of the member home loan shall be in accordance with this chapter in effect on the date of the member's recertification of eligibility.

(e) The application, credit report, appraisal reports, verification of employment and deposits shall be updated if made more than three months before the request for recertification.

(f) The lender shall deliver the loan file to the system for approval to purchase within three months after the date of recertification of member's eligibility or within four months where construction is involved.

(g) The lender shall sell the loan to the system within one month after the date of the letter of approval to purchase by the system.

Notes

Haw. Code R. § 6-27-18

[Eff 2/9/89] (Auth: HRS §§ 88-28, 88-119.5) (Imp: HRS §§ 88-119, 88-119.5)