§ 2405-E — Purchase of employer assisted forward commitment mortgages

§ 2405-e. Purchase of employer assisted forward commitment mortgages.\n(1) In accordance with the authority set forth in section twenty-four\nhundred five-b of this title, the agency may purchase employer assisted\nforward commitment mortgages from banks at such prices and upon such\nterms and conditions as it shall determine. In conducting its program of\npurchasing employer assisted forward commitment mortgages, the agency\nshall be governed by the provisions of section twenty-four hundred\nfive-b of this title. The board of directors of the agency shall\nestablish from time to time maximum income limits of persons eligible to\nreceive such mortgages, which income limits shall not exceed the latest\nmaximum income limits permitted under the Internal Revenue Code of 1986,\nas amended, for mortgages financed by mortgage revenue bonds. An\nemployer may develop additional qualifications for eligible employees\nbeyond those qualifications provided for in this section, provided that\nsuch qualifications are non-discriminatory and are pre-approved by the\nagency; the employer, however, shall remain solely responsible for\ndetermining and insuring the legality of such qualifications and may not\nrely on any agency reviews, approvals, legal opinions or statements.\n (2) To participate in an employer assisted forward commitment mortgage\nprogram, an employer must be a corporation, partnership, or sole\nproprietorship which maintains an office in the state and must satisfy\nthe requirements set forth in guidelines established by the agency.\n (3) For any employer assisted forward commitment mortgage, the maximum\nloan-to-value ratio shall be established by the agency, provided that\nsuch loan shall not exceed one hundred percent of the appraised value of\nthe mortgaged premises. Reasonable closing costs for the loan may be\namortized over the life of the loan, provided that the final loan amount\ndoes not exceed one hundred percent of the appraised value of the\nmortgaged premises.\n (4) The agency shall require any employer participating in the\nemployer assisted forward commitment mortgage program to guarantee to\npay up to twenty percent of the total outstanding mortgage indebtedness\n(as determined by the agency) for each employee who obtains a mortgage\nloan under the provisions of this section and who defaults on such\nmortgage loan during the first seven years of such loan, regardless of\nwhether such borrower is an employee of such employer at the time of the\ndefault.\n