§ 7-49-112 — Processing loans for insurance

(1) Insurance on a loan qualifying
for mortgage insurance under this article shall be in effect as of the date on which
the lender has made a report to the corporation which shall document:

(a) The estimated cost of the rehabilitation work to be done;

(b) In the case of a refinancing loan or acquisition loan, that such loan shall
not exceed one hundred percent of the fair market value of the property to be
refinanced or acquired after rehabilitation work has been completed;

(c) That the estimated useful life of the housing accommodation, after
rehabilitation, in the case of a rehabilitation loan, is greater than the term of the
insurable mortgage;

(d) That the housing facility after purchase or rehabilitation will not contain
any substantial violation of housing, building, or sanitary codes which would make
the housing so unsafe that it presents a danger to the occupants or the public
health or safety.

Legislative History

Source: L. 75: Entire article added, p. 269, � 1, effective June 29.