Md. Code Regs. 05.06.01.23

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

Section 05.06.01.23 - Insurance Termination

A. Maryland Housing Fund insurance coverage shall be terminated if:

(1) The lender requests cancellation;

(2) A claim is satisfied by the Fund; or

(3) The loan is paid in full.

B. At the Fund's sole option, Maryland Housing Fund insurance coverage may be terminated if:

(1) A renewal mortgage insurance premium is not paid by the lender after its receipt of final demand for same from the Fund;

(2) Mortgage or loan terms are modified without prior written approval of the Fund;

(3) The insured lender permits noncompliance with the loan documents without the prior written consent of the Fund;

(4) The mortgage is assigned by the lender without prior written approval of the Fund;

(5) Without prior written approval of the Fund, the project's borrower, lender, general contractor, or management agent, as approved by the Fund at the time of loan closing, is substituted with the knowledge or consent of the lender;

(6) The property is transferred, conveyed, or encumbered in violation of the provisions of these regulations;

(7) The lender fails to fulfill its obligations under Regulation .19D of this chapter after demand to do so has been made by the Fund;

(8) The lender fails to fulfill its obligations under the loan documents, the underwriting guidelines, or these regulations, including, without limitation, its obligation to provide periodic project information to the Fund, after demand to do so has been made by the Fund; or

(9) The lender is debarred from participating in the Department's programs under COMAR 05.01.05.

Md. Code Regs. 05.06.01.23

Regulations Chapter, Maryland Housing Fund, repealed and .23, Maryland Housing Fund_Multifamily Program, adopted effective December 5, 1994 (21:24 Md. R. 1987)