2314

LAWS OF MARYLAND

[Ch. 409

pay for bonds issued to obtain the funds necessary for
the making of the loans herein provided, plus an
additional rate of interest at a level to make the
program self—supporting. So "points" or other interest
may be charged to either the buyer or seller on any
purchase made under this subheading. Loans made under
the provisions of this subheading shall be secured by a
first mortgage or first deed of trust on the property
purchased.

(b)  An applicant must meet each of the following
conditions, to be eligible for a mortgage under this
section:

(1)  An applicant must be a purchaser who intends to
reside in the dwelling.

(2)   An applicant shall have no previous mortgage in
effect at time of application.

(3)  An applicant shall have a gross income of such
amount that he cannot reasonably secure a mortgage at
existing private lending rates and has been rejected for
a mortgage by at least two lending institutions. Each
application for a loan shall be accompanied by an income
tax return for the past calendar year, said return being
a certified copy obtained from the Comptroller's office.

(4)   An applicant shall have been a resident of the
State of Maryland for more than three (3) years prior to
date of application, and shall not own real property
other than a dwelling unit in which the applicant resides
or lot upon which the applicant intends to build a
dwelling unit at the time of application.

(c)  Mortgages or deeds of trust held as security for
loans made under this subheading which are in default may
be foreclosed by the Division in the same manner as
provided by statute and the Maryland Rules of Procedure
for foreclosures in private transactions. The Division
is authorized to take title in its name to any such
property foreclosed, as well as to convey title to such
property to bona fide purchasers thereof.

(d)  Any property mortgaged under this subheading may
be transferred. However, should the transferee fail to
qualify under subsection (b) of this section, the
mortgage in effect shall be terminated upon the transfer
of the property, and any moneys due under the mortgage
shall be repaid to the Division.]

[266FF-3.

The Division has the following additional powers and