Mich. Admin. Code R. 125.146 - Mortgage loans to individuals

Current through Register Vol. 21-17, October 1, 2021

Rule 146.

(1) An application by an individual for a mortgage loan for long-term financing of a housing unit to be purchased by the individual shall include information, and where required by the authority staff, supporting materials and evidence with respect to all of the following:
(a) The eligibility of the applicant.
(b) The eligibility of the housing unit proposed to be purchased.
(2) An application for a mortgage loan, submitted pursuant to subrule (1) of this rule, shall be processed by the a-uthority staff, and the authority staff's analysis of such application shall be presented to the executive director.
(3) The executive director shall review each analysis and, if he or she determines that the applicant is an eligible applicant, that the application meets the requirements of the act and these rules, and that the application is consistent with the authority's processing and underwriting procedures and guide-lines as to the housing unit to be purchased, then the executive director may issue, on behalf of the authority and pursuant to resolution of the authority, the author-ity's mortgage loan commitment to the applicant with respect to the housing unit proposed to be purchased. The mortgage loan commitment shall contain terms, conditions, and requirements as deemed necessary by the executive director, including, without limitation, conditions establishing that the purchase price of the subject housing unit, the method of making payments after the purchase of the housing unit, the security afforded, the interest rate, and fees and charges, if any, to be paid by the eligible applicant shall at all times be sufficient to permit the authority to make the payments on its bonds and notes plus any administra-tive or other costs to the author-ity in connection with the transaction.
(4) The authority, by resolution, may authorize the execution, on behalf of the authority, of agreements with corporations, partnerships, individuals, financial institutions, or other entities qualified to do business within this state. The agreements may provide that the authority shall make mort-gage loans to individual eligible applicants for the long-term financing of housing units to be purchased by such applicants, and that the housing units shall be con-structed by or with the assistance of an entity that shall be a party to such an agreement.
(5) An individual shall not receive a mortgage loan for long-term financ-ing a housing unit to be purchased that is not intended for owner occupancy.
(6) An individual shall not receive a mortgage loan for the long-term f-inancing of a housing unit to be purchased unless the husband, wife, and all other adult individuals whose income is required to be computed in determin-ing the household gross income agree to sign a mortgage, mortgage note, and such other loan docu-ments determined by the executive director to be neces-sary, provided however, that children of the applicant who are claimed as dependants on the applicant's federal income tax return and who are full-time students need not sign the loan documents.
(7) An individual shall not receive a mortgage loan for the long-term f-inancing of a housing unit unless the individual meets credit requirements as established by the authority.

Notes

Mich. Admin. Code R. 125.146
1979 AC; 1980 AACS; 1982 AACS; 1983 AACS; 1986 AACS; 1998-2000 AACS

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