HARRY HUGHES, Governor

3645

(ii) Upper limits on adjusted annual income.

(2) The limits on adjusted annual income may not
exceed, but may be less than, median annual family income for the
county or region where the home to be financed is located.

(e)  The Department may adopt rules and regulations to carry
out the program in conformance with statutory requirements.

(f)  Subject to subsection (b) of this section and in
accordance with the procedures required by law for State
contracts, the Department may contract for services relating to
the program.

(g)  The Department may contract with private mortgage
servicers to perform on behalf of the Department functions
ordinarily performed by private mortgage servicers, including:

(1)  Foreclosures; and

(2)  Employment of counsel.

(h) The Department may set a nonrefundable application fee
and need not return any amounts not spent to process the
application.

13-307.

(a)  The Department periodically shall set a preferred
interest rate that, as long as moneys borrowed by the State art
appropriated to the program, complies with any applicable federal
treasury regulations governing the borrowing of moneys by the
State.

(b)  The preferred interest rate shall be at least
sufficient to cover:

(1)  All administrative and other expenses of the
program;

(2)  Reasonably expected losses due to defaults on
loans; and

(3)  The interest cost of moneys used to fund the
program, which may be the actual interest cost of moneys borrowed
by the State and appropriated to the program, or the imputed
interest cost of general funds or loan repayments appropriated to
the program.

(c)  The Department may set a lower rate or rates of
interest FOR OWNER OCCUPANTS if:

(1) The loans serve borrowers whose incomes do not
exceed 80 percent of the maximum income limits that the
Department may establish;