Wyo. Code R. 900-0001-1
General Agency, Board or Commission Rules
Chapter 1: Mortgage Purchase Program
Effective Date: 08/09/1979 to 06/17/1999
Rule Type: Superceded Rules & Regulations
Reference Number: 900.0001.1.08091979
SECTION I. Authority. These rules and regulations are adopted pursuant to Sections 9-18-105 and 9-18-107 of the Wyoming Statutes, as amended.
SECTION 2. Purpose and Objectives. These Rules and Regulations are established to effectuate, and shall be applied so as to accomplish, the general purposes of the Wyoming Community Development Authority Act, as amended (the “Act”),
a. The expansion of the supply of funds in this state available for new and existing housing at reasonable rates; and
b. The provision of the additional housing needed to remedy the shortage of adequate housing in the state.
SECTION 3. Definitions. As used in these Rules and Regulations, terms defined in the Act have the meanings set forth therein and, unless the context otherwise requires:
“Application” means an application to sell mortgage loans filed by the mortgage lender with the Authority in response to an invitation.
“Eligible borrower” means persons and families whose adjusted gross aggregate family income does not exceed the maximum income levels established by the Authority by resolution.
“Existing mortgage loan” means a loan secured by a mortgage made by a mortgage lender for the purchase of an owner-occupied single family residence in the state prior to the date of the notice of acceptance.
“Family” means a person or a group of persons consisting of, but not limited to, the head of a household, the spouse, if any, and children, if any, who are allowable as personal exemptions for federal income tax purposes.
“Forward commitment mortgage loan” means a loan secured by a mortgage made to an eligible borrower for the purchase of an owneroccupied single family residence in the state on or after the date of the Authority’s notice of acceptance to the mortgage lender.
“Invitation” means the Authority’s current invitation to mortgage lenders for applications to sell mortgage loans to the Authority.
“Mortgage” includes a mortgage, mortgage deed or other instrument creating a first lien on a fee interest in real property located within the state.
“Mortgage loan” means a forward commitment mortgage loan or an existing mortgage loan.
“Mortgage purchase agreement” means an agreement between the Authority and a mortgage lender pursuant to which the Authority agrees to purchase mortgage loans from the mortgage lender from time to time on the terms and conditions set forth in the agreement.
“Notice of Acceptance” means the Authority’s notice to a mortgage lender of the acceptance of its application.
“Program” means the Authority’s program for purchase of notes evidencing mortgage loans and the accompanying security called the “mortgage purchase program”.
“Reinvestment mortgage loan” means a loan secured by a mortgage for the purchase of an owner-occupied single family residence in the state made after the date of the notice of acceptance to an eligible borrower in satisfaction of the obligation of a mortgage lender under a mortgage purchase agreement, but the term does not include a forward commitment mortgage loan.
“Residential use” means primary use of a structure as the principal residence of the occupant and does not include use as a vacation or “second” home. Any portion of the structure designed or used for nonresidential purposes must not exceed 10 percent of the usable square feet of the structure.
“Servicing agreement1, means an agreement between the Authority and a mortgage lender, or its designated servicer as approved by the Authority, for the servicing of mortgage loans purchased by the Authority.
a. The Authority from time to time will mail invitations to mortgage lenders to apply to sell mortgage loans to the Authority. The invitations will be mailed with application forms and other necessary documents to each mortgage lender at least 14 days before applications must be submitted to the Authority.
b. An application must include:
(1) The types and aggregate principal balances of mortgage loans which the mortgage lender desires to sell to the Authority;
(2) Information regarding the mortgage lender’s total assets, capital, surplus, undivided earnings and reserves as of its most recent available report;
(3) Information regarding the total principal amount of residential mortgage loans made in the state by the mortgage lender during a 24 month period preceding the date specified by the Authority in the application form, and the increase, if any, in the amount of such mortgage loans made during the second 12 months of such period compared with the first 12 months of such period;
(4) The increase or decrease in savings deposits and time deposits, if any, during the second 12 months of the 24 months preceding the specified date compared with the first 12 months of such period; and
(5) The unconditional agreement of the mortgage lender, upon acceptance of the application by the Authority, to sell mortgage loans to the Authority which comply with the terms of the notice of acceptance.
c. The Authority will inform applicants of:
(1) The latest date on which the application may be submitted to the Authority in order to be considered for an allocation of Authority funds to purchase eligible mortgage loans and the latest date on which the Authority will return a notice of acceptance;
(2) The basic terms and conditions of the application and the documents that must be executed and returned therewith; and
(3) The schedule of any fees or charges of the Authority which must accompany the application.
SECTION 5. Allocation of one for Mortgage Purchase. Money available to the Authority through the sale of its mortgage purchase bonds will be allocated among mortgage lenders submitting applications. In making such allocations, the Authority will consider, among other things:
a. The financial condition of the mortgage lenders submitting applications;
b. The amount of residential mortgage loans made in the state by each mortgage lender submitting applications during the past 24 months;
c. Any increases or decreases in savings deposits or time deposits or both of the mortgage lenders during such 24 months period;
d. The terms and conditions of the mortgage loans offered for sale by each mortgage lender;
e. The aggregate principal balances of mortgage loans offered for sale by each mortgage lender compared with the aggregate principal balances of mortgage loans offered for sale by all mortgage lenders;
f. The ability of each mortgage lender to act as a servicer of mortgage loans to be sold to the Authority; and
g. Any previous participation of a mortgage lender in the Authority’s programs and the extent to which such participation promoted the purposes and objectives of the Act and these Rules and Regulations.
The Authority’s allocations of funds for mortgage purchase are conclusive.
SECTION 6. Notice of Acceptance.
a. The aggregate principal balance of mortgage loans which the Authority agrees to purchase from any mortgage lender will not exceed the aggregate principal balance of the mortgage loans of each type offered for sale by the mortgage lender and may be in an amount less than that requested.
b. Upon the mailing of the notice of acceptance by the Authority, each mortgage lender is obligated to sell mortgage loans in accordance with the terms of the application and the mortgage purchase agreement.
c. The obligation of the Authority to purchase any mortgage loans is subject to the issuance and sale of bonds or other obligations of the Authority within the period prescribed by the application in an amount sufficient to permit such purchase.
a. Mortgage loans sold to the Authority must bear interest at such rate or rates and be sold to the Authority at such price or prices as will in the aggregate produce a yield to the Authority sufficient to:
(1) Pay interest on the principal of the related issue of the Authority's bonds or other obligations;
(2) Provide adequate reserves, if any, for the holders of the Authority's bonds or other obligations;
(3) Cover the operating costs of the Authority.
b. The yield on such mortgage loans must not exceed the maximum permitted by application of Section 103 of the Internal Revenue Code of 1954, as amended, and applicable rules and regulations.
a. Each mortgage loan purchased under this program must be insured or guaranteed by governmental or private insurance, as provided in the mortgage purchase agreement, be secured by a mortgage on a single-family residence in the state, and meet the applicable terms and conditions set forth in the mortgage purchase agreement;
b. Forward commitment mortgage loans may be made only to eligible borrowers and may not be made before the date of the related notice of acceptance unless otherwise expressly offered in writing by the Authority.
a. If the mortgage purchase agreement relates to the purchase of existing mortgage loans, it must be required that:
(1) The mortgage lender, within the periods specified in the mortgage purchase agreement, enter into written commitments to make and disburse reinvestments mortgage loans in an aggregate principal amount at least equal to the amount of the proceeds of sale of existing mortgage loans to the Authority;
(2) Each reinvestment mortgage loan comply with the terms and conditions prescribed by the Authority in the mortgage purchase agreement and the application; and
(3) Each reinvestment mortgage loan have a state maturity of not less than 25 years from the date thereof, unless a shorter terms is specifically requested in writing by the mortgagor.
b. All reinvestment mortgage loans must:
(1) Be made pursuant to written commitments issued after submission of the mortgage lender's application unless expressly approved in writing by the Authority and
(2) Meet all governmental and other requirements applicable to the mortgage lender.
c. Reports by mortgage lenders as to the commitment and disbursement of the proceeds of sale of existing mortgage loans must be made at such times and in such manner as are provided by the terms of the mortgage purchase agreement.
d. A penalty equal to a specified percentage per month of the sum of the uncommitted and any undisbursed balance of such proceeds of sale of existing mortgage loans may be assessed, collected or waived in accordance with the provisions of the mortgage purchase agreement.
e. Reinvestment mortgage loans may be made by the mortgage lender either directly or through one or more agents.
SECTION 10. Servicing of Mortgage Loans. All mortgage loans purchased by the Authority must be serviced by a qualified servicer pursuant to a servicing agreement. The Authority will notify all servicers of the requirements of these rules and regulations in a guide for servicers.
SECTION 11. Examination of Books and Records. The Authority may conduct such examinations of the books and records of each mortgage lender which has sold mortgage loans to the Authority, as the Authority deems necessary or appropriate to determine compliance with the terms of the Act, these Rules and Regulations, the mortgage purchase agreement, and the servicing agreement. The Authority may require each mortgage lender to pay the costs of any such examination.
SECTION 12. Consent to Jurisdiction of District Court. Each mortgage purchase agreement must require the mortgage lender to consent to the jurisdiction of the district courts of the state in any proceeding to enforce compliance with the terms of the Act, these Rules and Regulations, the mortgage purchase agreement, and the servicing agreement.
SECTION 13. Purchase of Authority Bonds. It is the policy of the Authority that no member, officer, employee or agent of the Authority shall require or request that any mortgage lender who has applied for a mortgage purchase commitment from the Authority or any “related person”, as defined in Section 103(b) (6) (c) of the Internal Revenue Code, of any such mortgage lender to purchase bonds or obligations of the Authority, such policy shall be promptly communicated to all employees of the Authority, and any violation of such policy shall be cause for appropriate disciplinary action by the Authority.