Mortgage insurance or guaranty (Repealed)

(a) Each CHFA mortgage loan application submitted to CHFA by a participating lender shall be accompanied by a commitment for mortgage insurance or guaranty. (b) Mortgage insurance or guaranty or a firm commitment shall be in effect at the time CHFA purchases a CHFA mortgage loan, and CHFA shall be named as the insured or guaranteed mortgagee. Such insurance or guaranty shall remain in effect for the life of the loan. (c) CHFA may, under circumstances approved by resolution adopted at a regular or special meeting, permit a mortgage loan to be insured by private mortgage insurers ("PMI") from companies licensed to do business within the state. PMI shall be in the minimum amounts set forth below. (1) If the ratio of the CHFA mortgage loan to value of the mortgaged premises is over ninety (90) percent, the PMI coverage shall not be less than the first twenty five (25) percent of the CHFA mortgage loan. (2) If the ratio of the CHFA mortgage loan to value of the mortgaged premises is over eighty (80) percent and less than or equal to ninety (90) percent, the PMI coverage shall not be less than the first twenty (20) percent of the CHFA mortgage loan. (3) If the ratio of the CHFA mortgage loan to value of the mortgaged premises is less than or equal to eighty (80) percent, the PMI coverage shall not be less than the first twelve (12) percent of the CHFA mortgage loan. (d) The issuance of a commitment for mortgage insurance or guaranty shall not obligate CHFA to issue a loan commitment for the application.