Terms and conditions of CHFA mortgage loans (Repealed)

(a) Each CHFA mortgage loan shall be secured by a valid first lien on the mortgaged property. Such property shall be free and clear of all prior encumbrances and liens except as approved by CHFA, and no rights may be outstanding that could give rise to such prior liens. (b) The mortgage note, deed, and any other instruments securing a CHFA mortgage loan shall create, legal, valid, and binding obligations of the borrower, enforceable in accordance with their terms, free from any right of set-off, counterclaim, or other claim or defense. Co-signors or guarantors are not permitted on a mortgage loan. (c) The original term of a CHFA mortgage loan on a fee interest shall not exceed thirty (30) years. The original term of a CHFA mortgage loan on a leasehold interest shall not exceed thirty (30) years, and the term of the underlying lease shall not expire for at least such number of years beyond the maturity date of such loan as is equal to the number of years remaining to maturity. (d) CHFA may require that mortgage loans be of the growing equity type. Under this type of mortgage the borrower is qualified under an initial monthly payment of principal and interest based on a 30-year term. During the term of the mortgage this monthly payment is increased at certain times with the entire payment increase applied to the principal balance on the loan so that the loan is fully paid in substantially less than 30 years. The note must show the monthly payment for each period of time during the term of the loan. (e) The principal amount of each CHFA mortgage loan shall be a multiple of one hundred (100) dollars and shall be advanced at the time of closing. Such loan shall provide for monthly amortization payments, interest payable in arrears, with full repayment by maturity. Amortization shall commence within two (2) months after closing. Monthly amortization payments shall be due on the first day of each month, and the final payment date shall be shown on the loan documents. (f) A CHFA mortgage loan shall not provide for a prepayment penalty. Loans may provide for a late charge in an amount not to exceed four (4) percent on payments fifteen (15) days or more past due to cover the expenses attributable to the receipt of payment after the due date. (g) Each CHFA mortgage shall provide for the monthly collection of escrow payments for real estate taxes, mortgage insurance premiums, and hazard insurance premiums, when required by the mortgage insurer, in addition to the monthly amortization payments. A participating lender shall pay interest on escrow deposits at a rate of not less than four (4) percent per annum, or such higher rate as required by statute. (h) A CHFA mortgage shall obligate the borrower to keep the mortgaged premises in good repair and condition, keep the premises free from other liens and encumbrances, and maintain hazard insurance in accordance with the requirements set forth in Section 8-246 E-29 of these regulations. (i) CHFA may require the mortgage and the mortgage note to be executed on forms provided by CHFA. (j) All requirements of all federal and state laws, rules, and regulations now existing or hereafter adopted, applicable to mortgages and mortgage loan transactions, including without limitation truth-in-lending laws, fair credit reporting laws, equal opportunity laws, usury laws, and laws regulating interest due on escrow accounts, shall be complied with where applicable.