Ch. 504                                          LAWS OF MARYLAND

(E) IF THE BORROWER DEFAULTS, THE DEPARTMENT MAY MODIFY THE
RATE OF INTEREST, THE TIME OR AMOUNT OF PAYMENT, OR ANY OTHER
TERM OF A LOAN IN ORDER TO ASSURE REPAYMENT OF THE LOAN AND
ACHIEVE THE PURPOSES OF THE PROGRAM.

2-605.

(A) THE DEPARTMENT SHALL:

(1)  MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM;

(2)  ATTACH SPECIFIC TERMS TO ANY LOAN AS MAY BE
NECESSARY TO CARRY OUT THE PURPOSES OF THE PROGRAM; AND

(3) ADOPT REGULATIONS TO CARRY OUT THE PROGRAM IN
CONFORMITY WITH STATUTORY REQUIREMENTS.

(B) THE DEPARTMENT MAY:

(1) (3) ESTABLISH STANDARDS OF ELIGIBILITY FOR LOANS,
TAKING INTO ACCOUNT STATE, REGIONAL, OR COUNTY HOUSING COSTS,
MEDIAN INCOMES, AND HOUSEHOLD SIZES;

(4) ESTABLISH GUIDELINES TO DETERMINE WHICH SPECIFIC
ITEMS OR PORTION OF THE TOTAL SETTLEMENT EXPENSES CAN BE INCLUDED
IN THE LOAN; AND

(5) ADOPT REGULATIONS TO CARRY OUT THE PROGRAM IN
CONFORMITY WITH STATUTORY REQUIREMENTS.

(B) THE DEPARTMENT MAY:

(2) (1) CHARGE APPLICATION FEES OR OTHER FEES TO LOAN
APPLICANTS OR LENDERS;

(3) (2) PURCHASE, OR MAKE COMMITMENTS TO PURCHASE,
LOANS MADE BY MORTGAGE LENDERS IN CONFORMITY WITH THIS SUBTITLE
AND WITH ANY REGULATIONS OR DIRECTIVES ISSUED BY THE DEPARTMENT;

(4) (3) ENTER INTO CONTRACTS WITH THIRD PARTIES WHO
WOULD MAKE OR SERVICE MORTGAGE LOANS MADE, ON BEHALF OF THE
DEPARTMENT, IN ACCORDANCE WITH THIS SUBTITLE;

(5) (4) SUBJECT TO SUBSECTION (C) OF THIS SECTION,
ACQUIRE ANY PROPERTY SECURING A LOAN MADE UNDER THIS SUBTITLE BY
GIFT, PURCHASE, FORECLOSURE, OR OTHERWISE, AND SELL OR OTHERWISE
DISPOSE OF THE PROPERTY OR INTEREST IN THE PROPERTY;

(6) (5) SUBJECT TO SUBSECTION (A) OF THIS SECTION,
DELEGATE TO LOCAL JURISDICTIONS THE OPERATION OF ALL OR ANY PART
OF THE PROGRAM ANY ADMINISTRATIVE OR OPERATIONAL ELEMENTS OF THE
PROGRAM; AND

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