HAR §15-165-15. Mortgage insu~ance required

(a) Except as provided. in subsection (b), all eligible loans must be insured by mortgage insurance, which has been issued by a mortgage insurer that has been approved by the corporation. Each eligible borrower must also satisfy the credit underwriting and other requirements of the mortgage insurer in order to qualify for and obtain an eligible loan. The federal housing administration, veteran~s administration and farmers home ad.ministration are acceptable mortgage insurers. The corporation will include in the 165-10 2287 §15-165-17 procedural guide a list of private mortgage insurers which are acceptable to the corporation. (b) The board, at the board*s discretion, may waive the requirement that a mortgage loan be insured by a mortga<:i,e insurer on a case-by-case basis. [Eff OCT 2 ~ 1999 ] (Auth: HRS §201G-4, 201G-243) (Imp: HRS §201G-244) §15-165-16 Limitations on the purchase or making of eligible loans. The corporation shall neither purchase nor make a mortgage loan to an eligible borrower if: (1) the borrower personally, or whose spouse if the person is married, owns any interest in any residential property in the State; or (2) The purpose of the mortgage loan is to satisfy an agreement of sale or to refinance an existing mortgage; or (3) The purpose of the mortgage loan is to purchA"'E\.ra V,jicant lot only. [Eff Uv I 2 ~ 1999 ] (Auth: HRS §201G-4, 201G-243) (Imp: HRS §201G-241) SlS-165-17 Mortgage origination. A mortgage lender, who originates mortgage loans which are made in the name of the corporation, as the mortgage lender, will be responsible for satisfying all requirements necessary to close such mortgage loans. Without limitation, such a mortgage lender will be responsible for the following matters: (1) Being familiar with the requirements of the home loan program for which eligible loans will be originated by the mortgage lender and closed in the name of the corporation, as the mortgage lender; (2) Receiving and evaluating all loan applications and determining whether each loan applicant meets the requirements necessary to be an eligible borrower; (3) Evaluating each loan applicant's creditworthiness for a mortgage loan; (4) Providing loan applicants and eligible borrowers with all disclosures, including consumer credit disclosures, required by applicable federal and State laws and any 165-11 §15-165-17 rules or regulations promulgated thereunder; (5) Securing mortgage insurance for each mortgage loan from a mortgage insurer acceptable to the corporation; and (6) Doing all things necessary to close mortgage loans to eligible borrowers in the name of the coraoration, as the mortgage lender. [Eff OLiT 2 5 199Q ] (Auth: HRS S201G-4, 201G-243) (Imp: HRS §201G-243) SlS-165-18 Loan documentation. Each eligible loan file must contain the documents specified in the procedural guide and such other documents as the mortgage insurer shall require. The note and/or the mortgage evidencing the eligible loan or riders thereto must contain the following terms: (1) Conditions which the corporation shall require in accordance with sections 201G-125 through 201G-130, HRS, or specifically with respect to a particular housing loan program and/or for a specified project or development, which have been approved and authorized by the board; and (2) Each note and mortgage or rider thereto shall provide that subject to the provisions of 12 u.s.c. 1701j-3 (which preempts state prohibitions on due-on-sale clauses) if all or any part of the real property securing the eligible loan is sold or transferred by the eligible borrower to another person who is not an eligible borrower, or if the eligible borrower no longer uses such real property as the eligible borrower's principal residence, the corporation or holder of the note and mortgage shall have the right to either: (A) Declare all amounts owing under the note and mortgage to be immediately due and payable in full; or (B) Increase the interest rate to the higher of (a) the prevailing market interest rate at the time the eligible loan was closed or (b) the average of the prevailing market interest rates for fixed rate home mortgages having a term of thirty years offered by no less-than five financial institutions which are 165-12 2237 §15-165-20 selected by the corporation and whose accounts are federally insured provided, however, that in no event shall the interest rate be less than the interest rate for the eligible loan at the time of closing.· The note or mortgage instrument or both or a rider thereto shall disclose the prevailing market interest rate at the time the eligible loan closes. Provided, however, that the foregoing provision may be revised to conform to the requirements for mortgage insurance from the federal housing administration, veterans administration and farmers home administration. [Eff ncr 9 h 1000 ) (Auth: HRS §201G-4, 2O1G-24f°) YYBp: HRS §201G-244)