Ch. 220                                           LAWS OF MARYLAND

(1)  CONTRACT FOR SERVICES RELATING TO THE PROGRAM;

(2)  CONTRACT WITH PRIVATE MORTGAGE SERVICERS TO
PERFORM ON BEHALF OF THE DEPARTMENT FUNCTIONS ORDINARILY
PERFORMED BY PRIVATE MORTGAGE SERVICERS, INCLUDING FORECLOSURES
AND EMPLOYMENT OF COUNSEL;

(3)  REQUIRE PAYMENT OF A NONREFUNDABLE APPLICATION
FEE;

(4)  PURCHASE, AND MAKE COMMITMENTS TO PURCHASE, FROM
MORTGAGE LENDERS NOTES OR MORTGAGES THAT EVIDENCE RESIDENTIAL
MORTGAGE LOANS MADE IN CONFORMANCE WITH THE REQUIREMENTS OF THIS
SUBTITLE AND ANY REGULATIONS OR PROGRAM DIRECTIVES, AS
APPROPRIATE, THAT GOVERN THE PROGRAM; AND

(5)  WITHOUT APPROVAL OR EXECUTION BY THE BOARD OF
PUBLIC WORKS;

(I)  ASSIGN A MORTGAGE FOR VALUE;

(II)  RELEASE A MORTGAGE;

(III)  FORECLOSE A MORTGAGE;

(IV)  ACQUIRE PROPERTY SECURING A LOAN IN
DEFAULT; OR

(V)  ENCUMBER, SELL, OR OTHERWISE DISPOSE OF
PROPERTY ACQUIRED IN CONNECTION WITH A LOAN IN DEFAULT.

[2-608.

(a)  The Program shall operate as a continuing, nonlapsing,
special fund, that consists of moneys appropriated by the State
to the Program.

(b)  The Department shall;

(1)  Use the fund to make loans and to pay expenses of
the Program (including reserves for anticipated future losses
directly related to the Program) as provided in the annual budget
of the State or other act appropriating moneys; or

(2)  Transfer moneys from the fund to the Rental
Housing Production Fund under Article 83B, § 2-505 of the Code as
provided in the budget, if sufficient moneys are maintained in
the Program to make loans to individuals to purchase homes,
taking into account the lending history under the Program, other
resources, the number of income eligible individuals, and the
availability of suitable housing stock.

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