WILLIAM DONALD SCHAEFER, Governor Ch. 220

(F)  (1) FOR PREFERRED INTEREST LOANS MADE UNDER § 2-602(1)
OF THIS SUBTITLE, THE AMOUNT OF THE LOAN AND ANY PRIOR RECORDED
LIENS OUTSTANDING MAY NOT EXCEED THE VALUE OF THE SECURED
PROPERTY PLUS SETTLEMENT EXPENSES AS MAY BE DETERMINED BY THE
PROGRAM AT THE TIME THE LOAN IS CLOSED.

(2)  FOR REVERSE EQUITY LOANS MADE UNDER § 2-602(4) OF
THIS SUBTITLE, THE PRINCIPAL AMOUNT OF THE LOAN AND ANY PRIOR
LIENS OUTSTANDING MAY NOT EXCEED THE APPRECIATED VALUE OF THE
SECURED PROPERTY AS DETERMINED BY THE PROGRAM FROM TIME TO TIME.

(3)  FOR SHORT-TERM CONSTRUCTION LOANS MADE UNDER §
2-602(2) OF THIS SUBTITLE, THE AMOUNT OF THE LOAN MAY NOT EXCEED
THE AMOUNT OF THE COMMITMENT FOR PERMANENT FINANCING FOR BUYERS.

(G)  WITH FULL DISCLOSURE TO THE BORROWER AT THE TIME THE
LOAN IS MADE, THE DEPARTMENT MAY MAKE ADJUSTABLE INTEREST RATE
MORTGAGES, WHERE ANY RATE ADJUSTMENT FOLLOWS WRITTEN NOTICE TO
THE BORROWER AND IS BASED ON AN INCREASE OR DECREASE IN THE
HOUSEHOLD'S INCOME.

(H) IN THE EVENT OF DEFAULT, THE DEPARTMENT MAY MODIFY THE
RATE OF INTEREST, THE TIME OR AMOUNT OF PAYMENT, OR ANY OTHER
TERM OF THE LOAN, IN ORDER TO ENSURE REPAYMENT OF THE LOAN AND
ACHIEVE THE PURPOSES OF THE PROGRAM.

(I) IN CONNECTION WITH A MORTGAGE SECURING A LOAN MADE IN
CONFORMANCE WITH THE REQUIREMENTS OF THIS SUBTITLE, THE
DEPARTMENT MAY PERMIT:

(1)  TRANSFER OF THE MORTGAGED PROPERTY OR AN INTEREST
THEREIN WITHOUT MONETARY CONSIDERATION TO A SPOUSE, CHILD, OR
OTHER IMMEDIATE FAMILY MEMBER, OR IN CONNECTION WITH THE DEATH OF
A BORROWER, A DIVORCE DECREE, OR A LEGAL SEPARATION AGREEMENT;
AND

(2)  ASSUMPTION OF THE MORTGAGE BY TRANSFEREES
DESCRIBED IN SUBSECTION (I)(l) OF THIS SECTION FOR MONETARY
CONSIDERATION AND BY ANY OTHER TRANSFEREE WITH OR WITHOUT
CONSIDERATION SO LONG AS THE TRANSFEREES QUALIFIES AS A HOUSEHOLD
OF LIMITED INCOME AND SATISFIES ALL OTHER PROGRAM REQUIREMENTS.

(J) FOR A DEVELOPER OF HOUSING WHICH WILL BE PRICED SO AS
TO BE AFFORDABLE TO HOUSEHOLDS OF LIMITED INCOME, THE DEPARTMENT
MAY COMMIT TO RESERVE, FOR A FIXED PERIOD OF TIME, A FIXED AMOUNT
OF PROGRAM FUNDS TO BE AVAILABLE TO FINANCE PREFERRED INTEREST
RATE MORTGAGE LOANS FOR QUALIFYING HOUSEHOLDS OF LIMITED INCOME
WHO SEEK TO PURCHASE SUCH DEVELOPER'S FULLY CONSTRUCTED OR
REHABILITATED HOMES.

2-612.

THE DEPARTMENT MAY:

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