1. A. A mortgage lender may apply to be approved to participate as an eligible lender under the Program to originate mortgage loans for purchase by the Administration.

2. B. An eligible mortgage lender shall certify at the time of application for approval, and shall update the certifications as required by the Administration, that the lender is:

   1. (1) In compliance with all applicable State and federal laws and regulations governing the business of the mortgage lender and the making of residential mortgage loans for residential housing; and
   2. (2) Except as provided in §F of this regulation, approved by the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC).

3. C. The Administration may approve eligible mortgage lenders that:

   1. (1) Meet the Administration's standards in §B of this regulation;
   2. (2) In the estimation of the Administration, are reputable and financially sound;
   3. (3) Provide all required documentation, information, and counsel opinions acceptable to the Administration as set forth in §D of this regulation;
   4. (4) Execute all program documents for participating mortgage lenders in the form prescribed by the Administration; and
   5. (5) Meet additional requirements of the Administration established from time to time.

4. D. A mortgage lender shall provide the Administration with:

   1. (1) A counsel's opinion in form and substance satisfactory to the Administration; and
   2. (2) Any financial data, documents, or other information that the Administration requires.

5. E. A mortgage lender approved by the Administration shall:

   1. (1) Enter into a mortgage purchase agreement with the Administration, as amended from time to time, stating the general terms and conditions on which the Administration will purchase mortgage loans from the mortgage lender;
   2. (2) At the request of the Administration, provide supplemental opinions, documents, and information in order to remain approved by the Administration for participation in the Program; and
   3. (3) Meet any additional requirements of the Administration.

6. F. A mortgage lender that is not an FNMA or FHLMC approved seller of mortgage loans may be approved to sell mortgage loans to the Administration if the:

   1. (1) Lender qualifies to participate under all other Program requirements;
   2. (2) Lender meets any minimum origination requirements of the Administration; and
   3. (3) Lender meets any additional requirements of the Administration.

Authority: Housing and Community Development Article, §§4-237—4-240; State Finance and Procurement Article, §§5-7B-01—5-7B-10; Annotated Code of Maryland
Executive Orders 01.01.1992.27C and 01.01.1998.04

Effective date:

Regulations .01—.27 adopted as an emergency provision effective April 23, 1980 (7:10 Md. R. 949); adopted permanently effective September 5, 1980 (7:18 Md. R. 1737)

Regulation .01 amended and Regulations .28—.55 adopted as an emergency provision effective December 3, 1981 (8:26 Md. R. 2097); emergency status extended at 9:10 Md. R. 1017; adopted permanently effective May 24, 1982 (9:10 Md. R. 1018)

Regulations .01, .29, .39, .43 amended and new Regulations .56 and .57 adopted as an emergency provision effective September 17, 1982 (9:21 Md. R. 2102) (Emergency provisions are temporary and not printed in COMAR)

Regulations .01, .39C, and .43 amended, and new Regulations .56 and .57 adopted effective March 14, 1983 (10:5 Md. R. 463)

Chapter repealed effective July 30, 1984 (11:15 Md. R. 1329)

Regulations .01—.27 adopted effective July 30, 1984 (11:15 Md. R. 1329)

Chapter recodified from COMAR 05.01.12 to COMAR 05.03.02

Regulation .02T amended effective January 8, 1990 (16:26 Md. R. 2786)

Regulation .10 amended effective January 8, 1990 (16:26 Md. R. 2786)

Regulations .01—.27 repealed and new Regulations .01—.21 adopted effective September 30, 1991 (18:19 Md. R. 2098)

Regulation .03B amended as an emergency provision effective December 8, 1995 (22:26 Md. R. 2024); amended permanently effective July 1, 1996 (23:13 Md. R. 939)

Regulation .04 amended as an emergency provision effective December 8, 1995 (22:26 Md. R. 2024); amended permanently effective July 1, 1996 (23:13 Md. R. 939)

Regulation .17 amended effective January 2, 1994 (20:25 Md. R. 1941)

Regulation .18B amended effective January 2, 1994 (20:25 Md. R. 1941)

Chapter revised effective July 27, 1998 (25:15 Md. R. 1190)

Regulation .01 amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .02 amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .03 amended effective October 14, 2002 (29:20 Md. R. 1586)

Regulation .03B amended effective March 31, 2003 (30:6 Md. R. 418); January 2, 2006 (32:26 Md. R. 1995); October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .04B amended effective October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .04D amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .05E amended effective January 21, 2002 (29:1 Md. R. 20); October 13, 2003 (30:20 Md. R. 1447)

Regulation .06 amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .07A amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .07B amended effective October 24, 2005 (32:21 Md. R. 1706)

Regulation .07F amended effective October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .07H amended effective October 24, 2005 (32:21 Md. R. 1706)

Regulation .08 amended effective October 9, 2006 (33:20 Md. R. 1614); April 29, 2013 (40:8 Md. R. 723)

Regulation .09A amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .10A amended effective March 31, 2003 (30:6 Md. R. 418)

Regulation .11C, E amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .11F amended effective January 2, 2006 (32:26 Md. R. 1995)

Regulation .12 amended effective October 14, 2002 (29:20 Md. R. 1586); April 29, 2013 (40:8 Md. R. 723)

Regulation .13 amended effective October 14, 2002 (29:20 Md. R. 1586); January 6, 2003 (29:26 Md. R. 2027)

Regulation .13F amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .14A amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .17F adopted effective January 21, 2002 (29:1 Md. R. 20)

Regulation .17F repealed and new Regulation .17F and G adopted effective October 13, 2003 (30:20 Md. R. 1447)

Regulation .19B, C, and D amended effective April 29, 2013 (40:8 Md. R. 723)

Regulation .19C adopted effective October 13, 2003 (30:12 Md. R. 1447)

Regulation .19C amended effective May 23, 2005 (32:10 Md. R. 924)

Regulation .19D adopted effective May 23, 2005 (32:10 Md. R. 924)

Regulation .20 amended effective March 16, 2015 (42:5 Md. R. 485)