Section R460-3-1 - Single-Family Program(1) Definitions. In addition to the definitions found in Sections 63H-8-103 and 63H-8-501, the following terms are defined for this rule:(a) "Mortgage Lender" shall mean a mortgage lender that UHC has determined to be an eligible mortgage lender in accordance with this rule.(b) "Mortgage Loan" shall mean a loan secured by a deed of trust or mortgage on a single-family residence or single real estate interest dwelling with one or two units that UHC has determined to be an eligible mortgage loan in accordance with this rule.(2) Eligible mortgage lender. (a) To be eligible to participate in the single-family program, a mortgage lender must have as one of its principal purposes the origination of mortgage loans in its usual and regular course of business.(b) UHC may establish criteria that mortgage lenders must meet relating to approved mortgagee status by the Federal Housing Administration, Rural Housing Service or Department of Veterans Affairs, the financial condition of the mortgage lender, the number of mortgage loan originations during a period specified by UHC, the length of time a mortgage loan origination office has been maintained in the state, seller/servicer approval by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, and other criteria as UHC deems necessary to maintain a safe and sound program and to establish that mortgage loans are a part of a mortgage lender's usual and regular business activities and that the mortgage lender possesses the capability to make and to have adequate financial resources to fund mortgage loans.(c) UHC may require that mortgage lenders, from time to time, furnish to UHC evidence as UHC may request to confirm a mortgage lender's eligibility to participate in the single-family program.(d) A mortgage lender shall employ and maintain qualified personnel to carry out the obligations arising under contracts with UHC.(e) All transactions between a mortgage lender and UHC shall be subject to the relevant single-family program contract documents which may include the following: participation agreement, selling supplement, mortgage credit certificate program guide, mortgage purchase agreement (MPA), MPA request, mortgage credit certificate request and reservation (MCC request), Assistance Program policies and procedures, Assistance Program funding request and reservation, notice of availability of funds, and other documents deemed necessary by UHC (Program Documents).(3) Mortgage purchase agreement request; mortgage purchase agreement; Assistance Program request and reservation; mortgage credit certificate request and reservation. (a) UHC may distribute to mortgage lenders via any electronic, digital, or written means, any interest rate or program changes affecting the single-family program.(b) Mortgage lenders may submit one or more mortgage purchase agreement requests, Assistance Program requests, or MCC requests to UHC via electronic, digital or written means as specified by UHC, in which an amount of funds is requested for a specific mortgage loan, Assistance Program loan, or MCC that the mortgage lender is processing.(c) UHC may require that each mortgage purchase agreement request, Assistance Program request, or MCC request submitted by a mortgage lender be accompanied by an application or other fee in an amount specified by UHC in its Program Documents. The fee shall not be refunded or accrue interest payable by UHC, unless otherwise specified by UHC in the Program Documents.(d) Upon receipt of a mortgage purchase agreement request, an Assistance Program request, or MCC request, UHC may deliver to the mortgage lender 1) a mortgage purchase agreement confirming UHC's commitment to purchase the specified mortgage loan; 2) an Assistance Program reservation confirming UHC's commitment to fund an Assistance Program amount in conjunction with its purchase of a mortgage loan; or 3) an MCC reservation confirming UHC's commitment to issue an MCC for the requested amount. The mortgage purchase agreement, Assistance Program reservation, or MCC reservation shall be cancelled automatically if the mortgage lender fails to deliver to UHC all documentation requested or required with respect to the mortgage loan, Assistance Program funds, or MCC on or before the date specified in the Program Documents.(4) Single-family mortgage loans. (a) From time to time, UHC may develop individualized mortgage programs for single-family or single real estate interest dwellings with one or two units designed to meet the needs of certain populations. In such cases, UHC shall establish maximum fees that may be charged or collected, final mortgage delivery date, interest rate, and loan term. Fee requirements shall be uniformly applied to all mortgage lenders, without preference of one mortgage lender over another.(b) All mortgage loans shall be made to finance single-family residential housing or single real estate interest dwellings with one or two units located in the state which conform to the requirements of the single-family mortgage program or any other requirements specified in the Program Documents.(c) UHC may provide priority allocations to make mortgage financing available to persons qualified for any of UHC's single-family programs or in targeted, rural, inner city or other areas experiencing difficulty securing mortgage loans to make housing available to persons of low and moderate income.(d) Each mortgage loan purchased by UHC shall conform to the credit underwriting, property valuation, hazard insurance, title insurance, mortgage insurance, security and collateralization, income limits, acquisition cost limits, purchase price limits, and all other requirements of the Program Documents. Closings or deliveries must occur on or before the date established in Program Documents. UHC shall have the right to decline to finance any mortgage loan if, in the reasonable opinion of UHC, the mortgage loan does not meet all requirements of the Program Documents.(5) First-time Homebuyer Assistance Program (Assistance Program)(a) UHC will make Assistance Program funds available in conjunction with a mortgage loan and UHC down payment (DPA) second mortgage loan, if applicable, to purchase a to-be-constructed or newly constructed but never inhabited single-family residential unit within the state. Assistance Program funds will be provided at closing if funds are properly reserved as specified in the Program Documents. Disbursed Assistance Program funds will be evidenced by a promissory note and secured by a deed of trust which shall be recorded subordinate only to a UHC mortgage loan and a UHC DPA second mortgage loan.(b) A mortgage lender may apply for an Assistance Program reservation with UHC. The recipients identified in the Assistance Program reservation request must be credit-qualified by the mortgage lender for a UHC mortgage loan before requesting a reservation. It is not required that the residential unit to be purchased with the mortgage loan is specifically identified in the reservation request. Once UHC has verified the reservation request complies with the Program Documents, UHC shall issue to the mortgage lender a reservation for Assistance Program funds that is effective for 90 days from the date of issuance. If the specific residential unit to be purchased is not identified in this time period, the reservation will be automatically canceled. Extension requests beyond the initial 90-day reservation period will be allowed if a specific residential unit to be purchased is identified by the mortgage lender and the mortgage lender complies with status update and documentation requirements established in the Program Documents. Additional 120-day extension requests may be approved by UHC. The number of Assistance Program reservation requests for a specific recipient may be limited and the request for transfer of an Assistance Program reservation to another lender may also be either limited or denied as established in the Program Documents.(c) Assistance Program funds will be reserved and funded on a first-come, first-served basis.(d) Assistance Program funds may be used in conjunction with a UHC mortgage loan and a UHC DPA second mortgage loan but not with any other grant program administered by UHC unless otherwise specified in the Program Documents.(d) Assistance Program funds are generally repayable. The Assistance Program funds are considered a loan that is interest free with no payments required until the residential unit is sold or the mortgage loan is refinanced. The Assistance Program amount to be repaid is the lesser of 1) the total amount of Assistance Program funds disbursed at closing or 2) one-half of the home equity amount. Generally, the home equity amount is computed as the difference between the sales price for which the residential unit is sold or, in the case of a refinance, the current appraised value, and the payoff amount of the mortgage loan used to finance the unit plus the UHC DPA second mortgage loan, if any, but not including Assistance Program funds. Additional details are established in the Program Documents.(e) A recipient of Assistance Program funds must have lived in the state continually for at least the last 12 months before the closing date of the mortgage loan.(f) A construction loan or similar financing, with a term of 24 months or less, used to construct a new home, including a manufactured or modular home assembled and placed on a permanent foundation, may be paid off using a mortgage loan, Assistance Program funds, and a UHC DPA second mortgage, if needed. The residential unit may not be occupied before the closing of the mortgage loan.(6) Income limits of borrowers. Income limits for low and moderate income persons eligible as borrowers for UHC financing are based on area or state median income as determined and published by the U.S. Department of Housing and Urban Development (HUD). UHC's president may establish income limits of UHC's single -family programs and the Assistance Program, and such limits shall not exceed 140% of area or state median income as determined and published by HUD. UHC shall post income limits on its website, incorporate the limits as terms of the Program Documents, and shall make information concerning the limits available to all interested persons. Income limits may vary based on several factors including loan program, household size, county, targeted area, source and availability of funds, and risk to UHC.
(7) Acquisition cost limits. When loan funding sources have federal regulations that require the establishment of acquisition cost limits, UHC's president may establish acquisition cost limits in accordance with the requirements detailed in Section 143 of the Internal Revenue Code.
When loan funding sources have no federal regulations requiring acquisition cost limits, UHC may or may not establish acquisition cost limits. UHC's president will establish any acquisition cost limits based on Average Area Purchase Prices as published by the Internal Revenue Service (IRS). The acquisition cost of residential housing is the cost of acquiring a completed residential unit and include all amounts paid in cash or in kind for all structures, fixtures, improvements, and land. UHC shall post any acquisition cost limits on its website, incorporate the limits as terms of the Program Documents, and shall make information concerning the limits available to all interested persons. Acquisition cost limits will be the lower of the single-family program limits, if any, under which a mortgage purchase agreement is issued or the Assistance Program if Assistance Program funds are used.
(8) Mortgage Credit Certificates (MCC).(a) From time to time, UHC may make available amounts to issue mortgage credit certificates to qualified applicants in conjunction with a mortgage loan obtained to purchase residential housing within the state.(b) All MCCs issued by UHC shall only be done when an eligible mortgage loan shall be made to finance single-family residential housing in the state which conforms to the requirements of the single-family mortgage program or any other requirements specified in the Program Documents.(c) UHC may provide priority allocations to make mortgage credit certificates available to persons qualified for any of UHC's single-family loan programs or in targeted, rural, inner city or other areas experiencing difficulty securing mortgage loans to make housing available to persons of low and moderate income. Furthermore, UHC may provide an allocation of MCCs to a particular development subject to certain conditions.(d) Each MCC request reserved and issued by UHC shall conform to all requirements of the Program Documents. UHC shall have the right to decline to issue an MCC if, in the reasonable opinion of UHC, the MCC request does not meet all requirements of the Program Documents.(9) Assumption of single-family mortgage loans.(a) UHC shall establish and may amend conditions and requirements for the assumption of mortgage loans. The conditions and requirements for the assumption of mortgage loans may vary between the different series of bonds and mortgage insurers or guarantors under which the various mortgage loans have been purchased.(b) Conditions and requirements for the assumption of mortgage loans may include the following: acquisition cost limits for the residential housing; income limits for the assuming purchaser; the establishment of a limit, expressed as a percentage of the assuming purchaser's income, of the purchaser's monthly housing expenses; a requirement that the purchaser not own any other properties financed under any other UHC program; and any other requirements and qualifications deemed necessary or advisable by UHC. Purchasers, who assume mortgage loans, shall generally be required to satisfy the same requirements that applied to the original borrower.(c) UHC may impose limits on the maximum amount of assumption fees that may be charged in connection with the assumption of mortgage loans.(d) UHC may require the continuing liability of the original borrowers in connection with the assumption of mortgage loans.(e) The required documentation for the assumption of mortgage loans may include documents deemed necessary by UHC, applicable to the particular program.(10) Limitation of frequency or number of loan applications or Assistance Program reservation requests. UHC may establish limitations on the frequency with which a mortgage lender, on behalf of a particular mortgage applicant or co-applicant, may request a mortgage purchase agreement or otherwise apply for a reservation of a mortgage loan or Assistance Program funds if UHC deems a limitation to be necessary to ensure the efficient and equitable allocation of funds.
Utah Admin. Code R460-3-1
Amended by Utah State Bulletin Number 2014-21, effective 10/9/2014Amended by Utah State Bulletin Number 2016-7, effective 3/9/2016Amended by Utah State Bulletin Number 2023-14, effective 7/10/2023