Md. Code Regs. 05.06.01.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 05.06.01.06 - Eligible Lenders

A. General Criteria. Any for-profit or nonprofit entity or public agency may qualify as an eligible lender if, in the determination of the Fund, it:

(1) Makes loans as a substantial function of its operations;

(2) Provides evidence of responsibility, permanency, and financial capacity; and

(3) Has requisite administrative, loan underwriting, loan servicing, and construction loan monitoring capabilities.

B. Office in State. The insured lender shall maintain an office in the State, be authorized to transact business in the State, and agree to receive service of process in and be subject to the jurisdiction and venue of the courts of the State.

C. Certification of Lenders. An entity which meets the eligibility requirements under this regulation may request certification by the Fund that it qualifies to originate loans to be insured under this chapter. To become certified, an eligible lender shall submit an application to the Fund, which application may require information and supporting documentation regarding the lender's ability to satisfy all eligibility criteria.

D. Disciplinary Prohibition. A lender may not be under an order suspending or debarring it from participating in the Department's programs under COMAR 05.01.05 at the time the loan is initially endorsed for insurance. The Department may decline to grant eligibility to an otherwise qualified lender that is suspended or disbarred from participating in the programs of any other state or federal agency.

Md. Code Regs. 05.06.01.06

Regulations .06, and .09A amended effective October 20, 1978 (5:21 Md. R. 1585)
Regulations .06B adopted effective March 24, 1978 (5:6 Md. R. 464)
Regulation .06C adopted effective October 20, 1978 (5:21 Md. R. 1585)
Regulations .06A amended effective October 20, 1978 (5:21 Md. R. 1585)
Regulations .06 repealed effective May 23, 1994 (21:10 Md. R. 841)
Regulation .06 amended effective January 8, 1990 (16:26 Md. R. 2786)
Regulation .06D amended effective March 4, 1991 (18:4 Md. R. 446)
Regulations Chapter, Maryland Housing Fund, repealed and .06, Maryland Housing Fund_Multifamily Program, adopted effective December 5, 1994 (21:24 Md. R. 1987)