SECTION .0300 - CONTRACTS AND FORMS 24 NCAC 01D .0301 ELIGIBLE LENDER CONTRACT FORMS (a) Qualified lenders shall establish their contractual relationships with the agency by entering into the "North Carolina Housing Finance Agency Forward Commitment Mortgage Purchase Agreement" and the "North Carolina Housing Finance Agency Existing Mortgage Purchase Agreement" form contracts. (b) Under the "Forward Commitment Mortgage Purchase Agreement" form contract, the agency agrees to purchase from the lender and the lender agrees to sell a given amount of mortgage loans which are a first lien on lands and improvements constituting mortgagor occupied, single family, residential units, which loans shall be made by lender to persons or families of lower income in accordance with the act. Lender's interest in the mortgage loan and the Deed of Trust shall be assigned to the agency at purchase. Lender must comply with all applicable state, local and federal laws and regulations. Appraisal is required. The loan term shall not exceed 30 years. Monthly payment of principal and interest and level payment amortization is required. The mortgagor must qualify as a person or family of lower income as defined by the act and in the rules and regulations of the agency. Mortgage insurance or guaranty is required as a condition of purchase of the mortgage loan. The agency shall not be obligated to purchase any mortgage loans under any such agreement unless the agency has approved the making of such mortgage loans in accordance with the act. Lender shall service the mortgage loans purchased pursuant to this agreement in accordance with the servicing agreement. Misrepresentation or breach of warranty by the lender as to a mortgage loan shall entitle agency to require lender to repurchase such mortgage loan. All obligations under this contract are subject to the successful sale and delivery by agency of its bonds and receipt of the bond proceeds. (c) Under the "Existing Mortgage Purchase Agreement" form contract, the agency agrees to purchase from the lender and the lender agrees to sell, a given amount of interest bearing obligations owned by the lender on single-family residential units which are mortgagor occupied. These mortgage loans must be insured or guaranteed, and either made to persons or families of lower income as defined in the act and the rules and regulations of the agency or made to persons and families not of lower income provided the agency makes the determination required by the act that mortgage loans made to persons and families of lower income for residential housing are not available for purchase by the agency upon reasonable terms and conditions. The mortgage loans shall provide for payment of principal and interest at monthly intervals and for level payment amortization. All interest in the mortgage loan and the note and Deed of Trust shall be assigned to the agency at purchase. Mortgage insurance or guaranty by the FHA, VA or a qualified insurer is required as a condition of purchase of the mortgage loan. The lender agrees that within 180 days of receiving the sale proceeds for the mortgage loans sold under this agreement that the lender will commit to and will promptly reinvest the sale proceeds in new mortgage loans to lower income persons and families. The lender shall submit evidence to the agency of the making of such new mortgage loans. All obligations made under this contract are subject to the successful sale and delivery by the agency of its bonds and receipt by the agency of the bond proceeds. The subject mortgage loan must be a valid first lien on the property. Unpaid principal balance and interest on the mortgage loan must be accurately stated by lender. Representations by lender as to counterclaims available against the mortgage loan and modification, satisfaction, cancellation and subordination must be true. Lender must have complied with all applicable federal, state and local laws and rules and regulations. Misrepresentation or breach of warranty by lender as to a mortgage loan shall entitle agency to require lender to repurchase such mortgage loan. History Note: Authority G.S. 122A-5; Eff. May 28, 1976; Amended Eff. March 22, 1979; Transferred from T15: 14 Eff. December 1, 1981.