Code of Maryland Regulations
Title 05 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
Subtitle 04 - SPECIAL LOAN PROGRAMS
Chapter 05.04.01 - Maryland Housing Rehabilitation Program - Regular Rehabilitation Program
Section 05.04.01.08 - Loan Terms and Conditions - Secured Loans
Current through Register Vol. 50, No. 25, December 15, 2023
A. In addition to the conditions and requirements of Regulations .06 and .07 of this chapter, secured loans shall meet the requirements of §§B-F of this regulation.
B. Deed of Trust. A mortgage or deed of trust shall secure repayment of the loan by the granting of a valid lien on the eligible building and the underlying land or leasehold interest in the land.
C. Escrow Account. If there is no prior mortgage or deed of trust requiring the payment of expenses to the mortgagee, the rehabilitation mortgage may require expense payments to the Department in escrow, consisting of 1/12 of annual real estate taxes, ground rent, property insurance premiums, and, when appropriate, other items for which payments are required by the Department. Interest need not be paid to the borrowers on escrows.
D. Insurance.
E. Title Insurance. The Department, in its discretion, may require the borrower to provide a standard American Land Title Association (ALTA) Loan policy, with the Environmental Endorsement 8.1, or other form of title policy approved by the Department and the Office of the Attorney General for an amount equal to the maximum principal amount of the loan, insuring the Department, evidencing that title to the building on the date of closing is vested in the borrower, and containing only standard exceptions and encumbrances acceptable to the Department and the Office of the Attorney General.
F. Appraisals.
Regulations .08 amended
effective February 11, 1985 (12:3 Md. R. 243)
Regulations .08
adopted effective July 22, 1991 (18:14 Md. R. 1609)
Regulations
.08B amended effective September 5, 1980 (7:18 Md. R. 1737)
Regulations .08B, .09A amended effective June 16, 1978 (5:12 Md. R.
965)
Regulations .08 amended effective March 23, 1979 (6:6 Md. R.
509)
Regulations .08B amended effective October 5, 1979 (6:20 Md.
R. 1627)
Regulations .08 amended effective November 9, 1992 (19:22
Md. R. 1986)
Regulation .08E amended effective February 22, 1999
(26:4 Md. R. 272); November 29, 1999 (26:24 Md. R. 1855)