Md. Code Regs. 05.06.06.08

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

Section 05.06.06.08 - Eligible Lenders

A. A lender shall meet the eligibility requirements of §B or C of this regulation in order to be approved for mortgage insurance issued by the Fund under the Fund master policy for primary mortgage insurance.

B. The Fund will approve mortgage lenders that execute a certification that they are:

(1) A financial institution which has accounts insured by any agency of the United States;

(2) An institutional lender approved under a federal mortgage loan insurance agency; or

(3) Any FNMA or FHLMC approved institutional conventional seller.

C. Any for-profit entity, nonprofit entity, or public agency which, in the opinion of the Fund, has as a primary or substantial function of its operation the making of residential mortgages, can be approved if it:

(1) Presents evidence satisfactory to the Fund of:

(a) Responsibility,

(b) Permanency,

(c) Financial adequacy, and

(d) Requisite administrative, technical, and mortgage servicing capabilities; and

(2) Submits an application and all supporting documentation that the Fund may require.

D. A servicer of a Fund-insured loan, whether the lender or its agent, shall comply with the loan servicing requirements contained in the Fund's servicing manual. Failure to comply with these requirements may result in denial or withdrawal of the Fund's approval to service the Fund-insured loans.

Md. Code Regs. 05.06.06.08