HARRY HUGHES, Governor

3355

(3)  SET THE PRINCIPAL AMOUNTS AND MATURITIES OF
THE LOANS, ENFORCE THEM ACCORDING TO THEIR TERMS, AND
EXECUTE ALL NECESSARY AND CONVENIENT DOCUMENTS;

(4)  FORECLOSE MORTGAGES, TAKE TITLE TO
FORECLOSED PROPERTIES, CONVEY TITLE TO PURCHASERS, OBTAIN
AND ENFORCE DEFICIENCY JUDGMENTS, PERMIT ASSUMPTION OF
MORTGAGES IF THE TRANSFEREE WOULD QUALIFY AS AN ORIGINAL
BORROWER, AND CONTRACT WITH PRIVATE MORTGAGE SERVICERS TO
PERFORM FUNCTIONS ORDINARILY PERFORMED BY THEM, INCLUDING
FORECLOSURES AND THE EMPLOYMENT OF COUNSEL BY THE SERVICERS;

(5)  CAUSE MORTGAGES TO BE INSURED BY FEDERAL,
STATE, OR PRIVATE INSTRUMENTALITIES AT THE EXPENSE OF THE
MORTGAGORS, IF SUCH INSURANCE IS AVAILABLE AND WOULD FURTHER
THE OBJECTIVES OF THE PROGRAM;

(6)  REQUIRE AND OBTAIN APPRAISALS, CREDIT
INFORMATION, AND OTHER INFORMATION NECESSARY OR DESIRABLE TO
MAKE SOUND LOANS AND TO ADOPT REASONABLE MINIMUM
REQUIREMENTS OF CREDIT WORTHINESS AND SECURITY;

(7)  CONTRACT FOR SERVICES RELATING TO ANY ASPECT
OF THE OPERATION OF THE PROGRAM IN ACCORDANCE WITH
PROCEDURES REQUIRED BY LAW FOR STATE CONTRACTS; AND

(8)  ADOPT AND AMEND FROM TIME TO TIME, IN
ACCORDANCE WITH STATUTORY REQUIREMENTS, REGULATIONS
GOVERNING ALL ASPECTS OF THE OPERATION OF THE PROGRAM.

257L-4.

(A)  A LOAN MADE UNDER THIS SUBHEADING SHALL BE SECURED
BY A SECOND MORTGAGE ON THE PROPERTY IMPROVED.

(B)  TO BE ELIGIBLE FOR A LOAN, AN APPLICANT SHALL:

(1)  BE A RESIDENT OF THIS STATE; AND

(2)  BE UNABLE TO FINANCE THE PURCHASE.

(C)  TO ENFORCE THE REQUIREMENT IN SUBSECTION (B)(2) OF
THIS SECTION, THE SECRETARY SHALL:

(1)  ESTABLISH AN UPPER INCOME LIMIT, A
DEFINITION OF "INCOME", AND A DIFFERENTIAL BASED ON INCOME
STATISTICS FOR GEOGRAPHICAL AREAS OF THE STATE;

(2)  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;