3006

LAWS OF MARYLAND

Ch. 783

2. REVERSE EQUITY MORTGAGE LOANS FOR
ELDERLY FAMILIES OF LIMITED INCOME THAT ARE SECURED BY A MORTGAGE
LIEN FOR HOUSING RELATED EXPENSES, INCLUDING PERSONAL EXPENSES
WHICH ENABLE THE OWNER TO CONTINUE TO OCCUPY THE OWNER'S HOME;
and

(II) [undertake] UNDERTAKE commitments
therefor.

(B)  In this subtitle[, "mortgage]:

(I)  "MORTGAGE loans" includes loans to
finance or refinance purchases of stock or membership or to
rehabilitate units in a cooperative ownership housing
corporation; AND

(II)  "REVERSE EQUITY MORTGAGE LOANS"
INCLUDES LOANS THAT USE THE EQUITY IN A HOME AS COLLATERAL.

(C)  Any commitment, mortgage or bonds or notes
secured shall contain terms and conditions necessary to secure
repayment of its loan, the interest thereon and other charges in
connection with the loan. Mortgage loans for a community
development project AND REVERSE EQUITY MORTGAGE LOANS may bear
interest at any rate or rates which the Administration determines
will make the community development project economically
feasible, except that the Administration may not increase the
rate of interest originally charged on a permanent direct
mortgage loan to a family for the purchase of a dwelling unit in
a community development project. Subject to the provisions of
any contract with noteholders or bondholders, consent to the
modification, with respect to rate of interest, time of payments
of any installment of principal or interest, security, or any
other term, of any mortgage, mortgage loan, REVERSE EQUITY
MORTGAGE LOAN mortgage loan commitment, REVERSE EQUITY MORTGAGE
LOAN COMMITMENT contract or agreement of any kind to which the
Administration is a party. In connection with any property on
which it holds a mortgage loan, REVERSE EQUITY MORTGAGE LOAN to
foreclose on the property or commence any action to protect or
enforce any right conferred upon it by any law, mortgage contract
or other agreement, and to bid for and purchase the property at
any foreclosure or at any other sale, or acquire or take
possession of the property; and in the event the Administration
may complete, administer, pay the principal of and interest on
any obligations incurred in connection with the property, dispose
of, and otherwise deal with the property, in a manner as may be
necessary or desirable to protect the interests of the
Administration. Any lien held by the Administration on property
shall be a lien superior to all other liens on the property
except liens for taxes owed to the State of Maryland or any
subdivision thereof and earlier mortgage liens. The
Administration may sell any mortgage or other obligation held by
it, at public or private sale, with or without public bidding.
The Administration may purchase securities backed by mortgage
loans for community development projects.