1402

LAWS OF MARYLAND

Ch. 501

(C)    A COMMITMENT THAT THE ADMINISTRATION MAKES TO
PURCHASE NEW RESIDENTIAL MORTGAGE LOANS SHALL:

(1)    SPECIFY THE INTEREST RATE ON LOANS ELIGIBLE
FOR PURCHASE, NOT TO EXCEED THE PREVAILING RATE OF INTEREST
ON COMPARABLE MORTGAGE LOANS AVAILABLE IN THIS STATE,
INDEPENDENT OF PUBLIC ASSISTANCE OR PURCHASE;

(2)    BE LIMITED TO LOANS OF A SPECIFIED AMOUNT
PER DWELLING UNIT, BASED ON THE CURRENT MEDIAN SALE PRICE OF
NEW HOMES IN THE AREA, AS DETERMINED BY THE ADMINISTRATION;
AND

(3)    SPECIFY NUMBERS OR VOLUMES OF LOANS
PURSUANT TO THE COMMITMENT, TO BE MADE IN SPECIFIED
GEOGRAPHICAL AREAS AND TO MORTGAGORS WITHIN SPECIFIED INCOME
LIMITS. NEW RESIDENTIAL MORTGAGE LOANS WHICH THE
ADMINISTRATION PURCHASES SHALL BE TO FAMILIES OF LIMITED
INCOMES.

(D)    A COMMITMENT THAT THE ADMINISTRATION MAKES TO
PURCHASE EXISTING RESIDENTIAL MORTGAGES SHALL REQUIRE THAT
THE PROCEEDS OF THE PURCHASE BE REINVESTED IN NEW
RESIDENTIAL MORTGAGE LOANS TO FAMILIES OF LIMITED INCOMES,
WITHIN SPECIFIED TIME LIMITS, OR INVESTED IN SHORT-TERM
OBLIGATIONS PENDING THE PURCHASE OR MAKING OF SUCH
MORTGAGES.

(E)    A LOAN THAT THE ADMINISTRATION MAKES TO A
MORTGAGE LENDER SHALL REQUIRE THE MORTGAGE LENDER TO MAKE TO
FAMILIES OF LIMITED INCOMES RESIDENTIAL MORTGAGE LOANS OF AT
LEAST 20-YEAR MATURITIES IN AN AGGREGATE PRINCIPAL AMOUNT AT
LEAST EQUAL TO THE AMOUNT OF THE LOAN OF THE ADMINISTRATION.
THE MORTGAGE LENDER SHALL COMMIT THAT AMOUNT OF QUALIFYING
RESIDENTIAL MORTGAGE LOANS WITHIN A PERIOD AFTER THE RECEIPT
OF THE LOAN THAT THE ADMINISTRATION SPECIFIES BUT NOT TO
EXCEED 6 MONTHS, AND SHALL PROCEED TO MAKE AND DISBURSE THE
RESIDENTIAL MORTGAGE LOANS AS PROMPTLY AS PRACTICABLE.

(F)    A LOAN THAT THE ADMINISTRATION MAKES TO A
MORTGAGE LENDER SHALL BE A GENERAL OBLIGATION OF THE
MORTGAGE LENDER AS TO REPAYMENT OF BOTH PRINCIPAL AND
INTEREST AND REPAYMENT OF BOTH PRINCIPAL AND INTEREST SHALL
BE SECURED ADDITIONALLY BY A PLEDGE OF AND LIEN ON
COLLATERAL SECURITY, IN AN AMOUNT THAT THE ADMINISTRATION BY
REGULATION DETERMINES TO BE NECESSARY TO SECURE LOANS. THE
COLLATERAL SECURITY SHALL CONSIST OF: (1) OBLIGATIONS OF,
OR GUARANTEED BY THE UNITED STATES, THE STATE OF MARYLAND,
OR A POLITICAL SUBDIVISION OF THE STATE; (2) OBLIGATIONS,
SATISFACTORY TO THE ADMINISTRATION, ISSUED BY FEDERAL
AGENCIES OR INSTRUMENTALITIES; (3) CERTIFICATES OF DEPOSIT
OR TIME DEPOSITS OR SIMILAR BANKING ARRANGEMENTS SECURED BY
OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES OR THE
STATE OF MARYLAND; OR (4) MORTGAGES INSURED OR GUARANTEED IN
WHOLE OR IN PART BY THE MARYLAND HOUSING FUND, A FEDERAL
AGENCY, OR A PRIVATE INSURER APPROVED BY THE ADMINISTRATION,
OR OTHER MORTGAGES THAT THE ADMINISTRATION FINDS TO BE OF