MARVIN MANDEL, Governor                              2645

THAT, ABSENT SOME MAJOR ASSISTANCE BY THE STATE, THIS
SHORTAGE WILL LIKELY CONTINUE.

(B)   THIS SHORTAGE HAS HAD, AND WILL CONTINUE TO
HAVE, SERIOUS DETRIMENTAL EFFECTS UPON THE ECONOMY OF THE
STATE AND UPON THE HEALTH AND WELFARE OF ITS CITIZENS.
SOME OF THESE EFFECTS ARE:

(1)   A MAJOR RECESSION IN THE REAL ESTATE,
CONSTRUCTION, AND RELATED INDUSTRIES BECAUSE OF THE
INABILITY OF PERSONS TO OBTAIN FINANCING TO PURCHASE
HOMES, WHICH NOT ONLY CAUSES SERIOUS UNEMPLOYMENT IN
THOSE INDUSTRIES, BUT LEADS TO DEPRESSED CONDITIONS AND
UNEMPLOYMENT IN OTHER INDUSTRIES AS WELL;

(2)   ADDING TO AN ALREADY CRITICAL SHORTAGE OF
SAFE AND SANITARY HOUSING FOR THE CITIZENS OF MARYLAND;
AND

(3)   INHIBITING THE DEVELOPMENT OF THE STATE'S
ECONOMY BY DISCOURAGING PEOPLE AND INDUSTRY FROM LOCATING
IN THE STATE.

(C)    THE EXISTING STATE PROGRAMS OF COMMUNITY
DEVELOPMENT ASSISTANCE, HOME MORTGAGE INSURANCE, AND
DIRECT LOANS ARE NOT ADEQUATE TO MEET THE CRITICAL AND
GROWING NEED FOR HOME MORTGAGE FUNDS, EVEN WHEN COUPLED
WITH CURRENT FEDERAL EFFORTS.

(D)   THE PURPOSE OF THIS ACT IS TO PROVIDE, IN
COOPERATION WITH THE NETWORK OF BANKS AND SAVINGS
INSTITUTIONS IN THE STATE, SUBSTANTIAL AMOUNTS OF FUNDS
TO FINANCE THE PURCHASE OF NEW AND EXISTING SINGLE FAMILY
RESIDENCES IN MARYLAND.

458. DEFINITIONS.

(A)    THE FOLLOWING WORDS, AS USED IN THIS SUBTITLE,
HAVE THE MEANINGS INDICATED UNLESS THE CONTEXT OF THEIR
USE REQUIRES OTHERWISE.

(B)    "AUTHORITY" MEANS THE MARYLAND HOME FINANCE
AUTHORITY.

(C)   "BONDS" INCLUDES NOTES AND OTHER EVIDENCES OF
INDEBTEDNESS.

(D)    "HOME MORTGAGE LOAN" MEANS A LOAN SECURED BY A
FIRST MORTGAGE OR FIRST DEED OF TRUST UPON A SINGLE
FAMILY RESIDENCE LOCATED IN MARYLAND, WHICH IS INSURED OR
GUARANTEED BY THE VETERANS' ADMINISTRATION, THE FEDERAL
HOUSING ADMINISTRATION, THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT PURSUANT TO § 257K OF THIS ARTICLE,
ANY PRIVATE MORTGAGE INSURANCE COMPANY APPROVED BY THE