MARVIN MANDEL, Governor

2317

(I)    MAY ESTABLISH UPPER INCOME LIMITS,
DEFINITIONS OF "INCOME", AND DIFFERENTIALS BASED ON
INCOME STATISTICS FOR GEOGRAPHICAL AREAS OF THE STATE.

(II)   SHALL CONSIDER AND WEIGH SECONDARY
SOURCES OF INCOME, DEPENDENT ALLOWANCES, AND OTHER
RESOURCES AVAILABLE TO THE APPLICANT WHICH MAY BE USED TO
ASSIST IN FINANCING THE PURCHASE.

(III)  SHALL REQUIRE EVIDENCE THAT THE
APPLICANT HAS IN GOOD FAITH MADE APPLICATION FOR
GENERALLY SIMILAR MORTGAGE FINANCING TO TWO PRIVATE
MORTGAGE LENDING INSTITUTIONS, AND HAS BEEN REJECTED BY
BOTH INSTITUTIONS.

(IV)   SHALL REQUIRE A CERTIFIED COPY
FROM THE COMPTROLLER'S OFFICE OF THE MOST RECENT MARYLAND
INCOME TAX RETURN FILED BY THE APPLICANT, OR SUCH OTHER
VERIFICATION OF INCOME AS IS AVAILABLE.

(V)    SHALL REJECT AN APPLICATION WHERE
IT REASONABLY APPEARS THAT THE APPLICANT HAS SUFFICIENT
DOWN PAYMENT OR FOR ANY OTHER REASON COULD IN FACT
REASONABLY BE EXPECTED TO OTHERWISE FINANCE THE PURCHASE.

(C)    THE ABOVE-LISTED CONDITIONS OF ELIGIBILITY
APPLY JOINTLY AND SEVERALLY IN THE CASE OF SPOUSES WHO
ARE LIVING TOGETHER, EXCEPT THAT THE DOMICILE REQUIREMENT
MAY BE SATISFIED BY EITHER SPOUSE.

(D)    THE DEPARTMENT MAY:

(1)    MAKE MORTGAGE LOANS, SET THE PRINCIPAL
AMOUNTS AND MATURITIES (NOT EXCEEDING 40 YEARS) THEREOF,
ENFORCE THEM ACCORDING TO THEIR TERMS, AND EXECUTE ALL
NECESSARY AND CONVENIENT DOCUMENTS IN CONNECTION
THEREWITH; FORECLOSE MORTGAGES AND TAKE TITLE TO
PROPERTIES FORECLOSED UPON, AND CONVEY TITLE TO
PURCHASERS; OBTAIN AND ENFORCE DEFICIENCY JUDGMENTS;
PERMIT ASSUMPTION OF MORTGAGES IF THE TRANSFEREE WOULD
QUALIFY AS AN ORIGINAL BORROWER HEREUNDER; AND CONTRACT
WITH PRIVATE MORTGAGE SERVICERS TO PERFORM FUNCTIONS
ORDINARILY PERFORMED BY SUCH SERVICERS, INCLUDING
FORECLOSURES AND THE EMPLOYMENT OF COUNSEL BY THE
SERVICERS, ON BEHALF OF THE DEPARTMENT. APPROVAL OR
EXECUTION BY THE BOARD OF PUBLIC WORKS IS NOT NEEDED TO
ASSIGN MORTGAGES FOR VALUE, TO RELEASE MORTGAGES WHEN
PAID, OR TO ACCOMPLISH FORECLOSURES.

(2)    REQUIRE AND OBTAIN APPRAISALS, CREDIT
INFORMATION, AND OTHER INFORMATION NECESSARY OR DESIRABLE
TO MAKE SOUND LOANS, AND TO ADOPT REASONABLY MINIMUM
REQUIREMENTS OF CREDITWORTHINESS AND SECURITY.