1. (a) A Participating Financial Institution may enroll Qualified Loans that meet the Minimum Underwriting Criteria and may set more stringent underwriting criteria. A Participating Financial Institution has responsibility for underwriting decisions and legal compliance with respect to the Qualified Loans it makes pursuant to these regulations.
2. (b) A Participating Financial Institution agrees that for each Qualified Loan it makes it will investigate and evaluate the creditworthiness of the applicant in a manner consistent with the regulations and its customary practices for loans in the amount proposed.

3. (c) Minimum Underwriting Criteria are:

   1. (1) Loan type. Qualified Loans may be secured or unsecured closed end loans.
   2. (2) Maximum loan amount. A Qualified Loan must not exceed ten percent (10%) of the value of the Eligible Property as determined by the Participating Financial Institution.
   3. (3) Loan recipient. Borrowers must be the legal owners of the Eligible Property.
   4. (4) Mortgage delinquencies. Borrowers must be current on their mortgage and property tax payments and not in default or in bankruptcy proceedings.

Note: Authority cited: Section 26071, Public Resources Code. Reference: Section 26073, Public Resources Code.

History

1. New section filed 5-4-2012 as an emergency; operative 5-4-2012 (Register 2012, No. 18). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 10-31-2012 or emergency language will be repealed by operation of law on the following day.

2. Amendment of subsections (c) and (c)(2) filed 7-16-2012 as an emergency; operative 7-16-2012 (Register 2012, No. 29). Pursuant to Public Resources Code section 26131 this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-14-2013 or emergency language will be repealed by operation of law on the following day.

3. New section, including 7-16-2012 amendments, refiled 10-29-2012 as an emergency; operative 10-29-2012 (Register 2012, No. 44). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 1-28-2013 or emergency language will be repealed by operation of law on the following day.

4. New section, including 7-16-2012 amendments, refiled 1-28-2013 as an emergency, with additional amendments to Note; operative 1-28-2013 (Register 2013, No. 5). Pursuant to Public Resources Code section 26131, this is a deemed emergency. A Certificate of Compliance must be transmitted to OAL by 4-29-2013 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 1-28-2013 order transmitted to OAL 4-23-2013 and filed 5-22-2013 (Register 2013, No. 21).