HARRY HUGHES, Governor

3053

(2) THE SECRETARY MAY DELEGATE THE AUTHORITY TO
ADMINISTER THE PROGRAM TO LOCAL SUBDIVISIONS WITHIN THE STATE.

(C) THE DEPARTMENT SHALL ADOPT RULES AND REGULATIONS TO
CARRY OUT THE PROGRAM IN CONFORMANCE WITH STATUTORY AUTHORITY,
INCLUDING REGULATIONS TO:

(1)  INSURE THAT LOANS ARE MADE UNDER THE PROGRAM ONLY
TO INDIVIDUALS WHO WOULD OTHERWISE BE UNABLE TO MAKE MORTGAGE
PAYMENTS;

(2)  REQUIRE ALL INDIVIDUALS TO WHOM LOANS ARE MADE TO
MAKE COMPLETE OR PARTIAL PAYMENTS AS THEY ARE FINANCIALLY ABLE;

(3)  ESTABLISH SCHEDULES PROVIDE FOR THE REPAYMENT OF
LOANS UNDER THE PROGRAM; AND

(4) INSURE THAT LENDERS NOTIFY IN WRITING HOMEOWNERS
IN DEFAULT OF THE EXISTENCE OF THE PROGRAM;

(5) REQUIRE THE BORROWER TO PROVIDE ANY CONSENTS
REQUIRED UNDER ANY EXISTING MORTGAGES; AND

(4)(6) GENERALLY IMPLEMENT THE PROVISIONS OF THIS
SUBTITLE.

13-405.

THE PROGRAM SHALL BE FUNDED BY THE SALE BY THE STATE OF
GENERAL OBLIGATION BONDS AND BY REPAYMENT OF THE PRINCIPAL AND
INTEREST ON LOANS MADE UNDER THE PROGRAM.

13-406.

(A)  UNDER THE PROGRAM THE DEPARTMENT MAY MAKE A LOAN, THE
PROCEEDS OF WHICH SHALL BE USED TO MAKE EMERGENCY MORTGAGE LOAN
PAYMENTS TO MORTGAGEES ON BEHALF OF QUALIFIED MORTGAGORS AND
PAYMENTS FOR FINANCIAL COUNSELING SERVICES REQUIRED UNDER THE
PROGRAM.

(B)  LOAN PAYMENTS MAY BE MADE IN AM AMOUNT WHICH FINANCIAL
COUNSELING OF THE MORTGAGOR INDICATES IS THE DIFFERENCE BETWEEN
THE MORTGAGE PAYMENTS DUE AND THAT WHICH THE MORTGAGOR CAN BE
REASONABLY EXPECTED TO PAY.

(C)  THE INITIAL LOAN PAYMENT SHALL INCLUDE AN AMOUNT
NECESSARY TO MAKE PAYMENTS ON THE MORTGAGE CURRENT BRING PAYMENTS
ON THE MORTGAGE CURRENT, INCLUDING ANY LATE PAYMENT CHARGES
LAWFULLY IMPOSED.

(D)  LOAN PAYMENTS SHALL BE PROVIDED FOR A PERIOD NOT TO
EXCEED 24 MONTHS PLUS ANY PERIOD OF DEFAULT.