Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 21.00 - Seller's Guide
Section 21.15 - Security for Loans
Each Mortgage Loan in which Seller sells a Loan Participation to MHMFA shall be a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms and conditions and free from any right of set-off, counter-claim or other claim, defense or security interest. Each Mortgage Loan shall be properly acknowledged and duly recorded to perfect a first mortgage lien on a fee simple in the real property covered thereby, which first mortgage lien is subject only to the liens of taxes or assessments which are not delinquent, building restrictions or other restrictive covenants, conditions or easements which do not in the opinion of Seller materially affect the security for the Mortgage Loan. Borrower must not have an option under the Mortgage Loan to borrow from Seller additional funds secured by the property without the consent of MHMFA.