D.C. Mun. Regs. tit. 10, r. 10-B3803

Current through Register Vol. 71, No. 44, November 1, 2024

Rule 10-B3803 - MORTGAGE LOAN TERMS

3803.1

Each Mortgage loan shall be secured by a Mortgage which constitutes a lien on the interest in the Single-family residency encumbered by the mortgage or on the leasehold interest in the Single-family residence having an unexpired term equal to or longer than the term in which the Mortgage loan secured is to be amortized.

3803.2

Mortgage loan terms shall be established as the Agency determines to be appropriate in the circumstances.

3803.3

Mortgage loan terms shall be specified in the program documents and may include, but not be limited to, the following:

(a) Maximum and minimum terms;

(b) Type of financing (e.g., graduated payment loan, variable rate loan);

(c) Assumption provisions;

(d) Prepayment penalties;

(e) Fee, charges, and other conditions of originating and servicing requirements;

(f) Maximum loan-to-value ratio;

(g) Down payment requirements;

(h) Interest rates; and

(i) Acceleration provisions.

3803.4

The Agency shall establish the interest rate to be charged on the Mortgage loans, taking into account the Agency's costs of borrowing the funds required to purchase the Mortgage loans, administrative costs of the Agency, and possible losses due to Mortgage loan defaults.

3803.5

The interest rate on Mortgage loans financed with tax-exempt Bond proceeds shall not exceed the maximum permitted by application of the provisions of § 103 and § 141 through 150 of the Internal Revenue Code of 1986, as amended, and applicable Internal Revenue Service (I.R.S.) regulations.

D.C. Mun. Regs. tit. 10, r. 10-B3803

Final Rulemaking published at 30 DCR 4930 (September 23, 1983); as amended by Final Rulemaking published at 61 DCR 4156 (April 25, 2014)

Authority: Section 306 of the District of Columbia Housing Finance Agency Act of 1979, effective March 3, 1979, (D.C. Law 2-135; D.C. Official Code § 42-2703.06 (2012 Repl.)) (Act), and 10-B DCMR § 3508.1.