Md. Code Regs. 05.06.01.15

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

Section 05.06.01.15 - Reinsurance, Coinsurance, and Shared Insurance

A. Loans insured by the Fund may be reinsured or coinsured, or insurance may be shared by and with public or private mortgage insurers, or through federal guarantees, when available. Portions of risk on any loan insured by the Fund may be assigned to other eligible mortgage insurers on a participating basis. Any reinsurance, coinsurance, or shared insurance shall be made on terms and conditions satisfactory to the Fund.

B. The reinsurer, coinsurer, or shared insurer shall be reputable and financially sound in the judgment of the Fund.

C. The Fund may not retain contingent liability to pay an entire claim in the event of nonpayment of a claim by a reinsurer or coinsurer, except in exceptional circumstances by written determination of the Secretary that a heightened public purpose is served by the retention of the contingent insurance risk.

D. The total of multifamily insurance considered standing for purposes of calculating the leverage ratios permitted may not be decreased by the amount of any reinsurance, coinsurance, or shared insurance with respect to which the Fund retains contingent liability.

Md. Code Regs. 05.06.01.15

Regulations .15 amended effective August 20, 1975 (2:18 Md. R. 123)
Regulations .15N adopted as an emergency provision effective October 15, 1983 (10:22 Md. R. 1962); adopted permanently effective March 26, 1984 (11:6 Md. R. 548)
Regulation .15B amended effective September 5, 1980 (7:18 Md. R. 1735)
Regulations .15 amended effective August 30, 1974 (1:1 Md. R. 13)
Regulation .15B and E amended effective November 14, 1988 (15:23 Md. R. 2657)
Regulation .15B amended as an emergency provision effective April 25, 1983 (10:15 Md. R. 1341); emergency status expired October 25, 1983
Regulations Chapter, Maryland Housing Fund, repealed and .15, Maryland Housing Fund_Multifamily Program, adopted effective December 5, 1994 (21:24 Md. R. 1987)