Iowa Admin. Code r. 265-2.9

Current through Register Vol. 47, No. 11, December 11, 2024

Rule 265-2.9 - Mortgage purchase or loans to lenders for existing, newly built single-family or multifamily housing-general information

For the purpose of providing permanent mortgage loans for purchase or refinance of existing or newly built single-family or multifamily housing, the authority may provide loan funds to a mortgage lender either by a loan to such lender, or by authority purchase, or advance commitment to purchase a mortgage from a mortgage lender.

(1)Eligible recipients. Families who are of low and moderate income.

(2)Applicability to authority programs. The authority may, by means of a loan to a mortgage lender, or purchase of a mortgage from a mortgage lender, provide permanent mortgage loans for special needs housing, area preservation, or refinance of Iowa homesteading loans.

(3)Application procedure for mortgage lenders. Specific instructions concerning application procedures will be contained in the authority's processing procedures, instructions and guidelines promulgated pursuant to 265-2.8 (16).

(4)Allocation of bond proceeds among mortgage lenders. The authority may allocate bond proceeds in principal amounts and at rates of interest among mortgage lenders on the basis of the total amount of funds available, the amount of funds and interest specified in the individual request of each mortgage lender, and the ability in the judgment of the authority, of each mortgage lender to fully utilize the funds for the purposes intended.

(5)Discount of authority loans. In order to attain consistency between interest on authority obligations and on authority loans to lenders or mortgages purchased, the authority may, by means of discount of loan principal or mortgage purchase price, adjust the effective yield of such loans or mortgages purchased.

(6)Procedures for commitment and disbursement by mortgage lenders with respect to new mortgage loans as a result of an authority loan or mortgage purchase. Specific instructions concerning procedures for commitment and disbursement by mortgage lenders will be contained in the authority's processing procedures, instructions and guidelines promulgated pursuant to 265-2.8 (16). This rule is intended to implement Iowa Code sections 16.5C, 16.38, and 16.39.

Iowa Admin. Code r. 265-2.9

Amended by IAB April 1, 2015/Volume XXXVII, Number 20, effective 5/6/2015