HAR §15-314-2. Definitions

As used in this chapter: "Bonds" means the revenue bonds issued to finance all or any part of the advance commitments program or the loan funding program authorized under subpart B of part III, chapter 201H, HRS. "Corporation" means the Hawaii housing finance and development corporation established under chapter 201H, HRS. "Dwelling unit" means any single family residence as provided by section 143(k) of the Internal Revenue Code of 1986, as amended. "Eligible borrower" means a person or family who: ( 1) Is a citizen of the United States or a resident alien; (2) Is a bona fide resident of the State; (3) Is at least eighteen years of age; (4) Does not personally, or whose spouse does not if the person is married, own any interest in a principal residence within or without the State, and who has not owned a principal residence within the three years immediately prior to the application for an eligible loan under this chapter, except this requirement shall not apply to any eligible loan that meets the requirements of section 143(d) of the Internal Revenue Code of 1986, as amended; 314-3 §15-314-2 (5) Is financing a property that will be the eligible borrower's principal residence; (6) Does not have a family income exceeding the income requirements of section 143(f) of the Internal Revenue Code of 1986, as amended; (7) Who has received timely recapture notices from the corporation or from the mortgage lender; and (8) Has successfully completed a homeownership counseling program provided by a housing counseling agency approved by the United States Department of Housing and Urban Development. "Eligible loan" means a loan under subpart B of part III, chapter 201H, HRS, including mortgage-backed securities backed by such a loan, to an eligible borrower for the permanent financing of a dwelling unit, including a condominium unit; including eligible improvement loans, loans to finance homebuyer assistance, and loans that provide the security or interest in a mortgage-backed security; provided that the property financed is located in the State, will be occupied as the principal residence by the eligible borrower, and meets other requirements as established under this chapter. Notwithstanding any other provision of the law, the corporation may provide homebuyer assistance in conjunction with eligible loans through loans or other means. "Family income" means the annualized gross income of an eligible borrower (or borrowers) or non-borrower household members in compliance with section 143(f) of the Internal Revenue Code of 1986, as amended. "Homebuyer assistance" means assistance provided to eligible borrowers in conjunction with an eligible loan to provide downpayment assistance or fund closing costs; provided that such assistance is repaid through consideration to the corporation, including borrower repayments. "Homeownership counseling" means housing counseling relating to homeownership and residential mortgage loans when provided in connection with the United States Department of Housing and Urban Development's housing counseling program. "Lower and moderate income" means an income that meets the requirements of section 143(f) of the Internal Revenue Code of 1986, as amended. "Mortgage-backed security" means any investment security, not including bonds of the corporation, that represents an interest in, or is secured by, one or more pools of mortgage loans, including any such security representing a direct obligation or guarantee of a federally sponsored or private entity such as the Government National Mortgage Association, 314-4 S15-314-2 (5) Is financing a property that will be the eligible borrower's principal residence; (6) Does not have a family income exceeding the income requirements of section 143(f) of the Internal Revenue Code of 1986, as amended; (7) Who has received timely recapture notices from the corporation or from the mortgage lender; and (8) Has successfully completed a homeownership counseling program provided by a housing counseling agency approved by the United States Department of Housing and Urban Development. "Eligible loan" means a loan under subpart B of part III, chapter 201H, HRS, including mortgage-backed securities backed by such a loan, to an eligible borrower for the permanent financing of a dwelling unit, including a condominium unit; including eligible improvement loans, loans to finance homebuyer assistance, and loans that provide the security or interest in a mortgage-backed security; provided that the property financed is located in the State, will be occupied as the principal residence by the eligible borrower, and meets other requirements as established under this chapter. Notwithstanding any other provision of the law, the corporation may provide homebuyer assistance in conjunction with eligible loans through loans or other means. "Family income" means the annualized gross income of an eligible borrower (or borrowers) or non-borrower household members in compliance with section 143(f) of the Internal Revenue Code of 1986, as amended. "Homebuyer assistance" means assistance provided to eligible borrowers in conjunction with an eligible loan to provide downpayment assistance or fund closing costs; provided that such assistance is repaid through consideration to the corporation, including borrower repayments. "Homeownership counseling" means housing counseling relating to homeownership and residential mortgage loans when provided in connection with the United States Department of Housing and Urban Development's housing counseling program. "Lower and moderate income" means an income that meets the requirements of section 143(f) of the Internal Revenue Code of 1986, as amended. "Mortgage-backed security" means any investment security, not including bonds of the corporation, that represents an interest in, or is secured by, one or more pools of mortgage loans, including any such security representing a direct obligation or guarantee of a federally sponsored or private entity such as the Government National Mortgage Association, 314-4 §15-314-2 Federal National Mortgage Association, or Federal Home Loan Mortgage Corporation. "Mortgage lender" means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, credit union, insurance company, or any other financial institution, or a holding company for any of the foregoing, that: ( 1) ( 2) ( 3) Is authorized to do business in the State; Customarily provides service or otherwise aids in the financing of mortgages on single family or multifamily residential property; and Is a financial institution whose accounts are federally insured or is an institution that is an approved mortgagee for the Federal Housing Administration, an approved lender for the United States Department of Veterans Affairs or the United States Department of Agriculture, or an approved mortgage loan servicer for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. "Mortgage loan purchase agreement" means an agreement by and between the corporation and a mortgage lender, in the form prescribed by the corporation, by which the corporation agrees to purchase eligible loans on the terms and conditions set forth in the agreement. The form of the mortgage loan purchase agreement shall be available for inspection at the principal office of the corporation during normal business hours. "Mortgage loan servicing agreement" means an agreement by anq between the corporation and a servicer in the form as may be prescribed by the corporation to service eligible loans. The form of the mortgage loan servicing agreement shall be available for inspection at the principal office of the corporation during normal business hours. "Principal residence" means the property that the eligible borrower occupies as their primary dwelling for the majority of the year. It is the address where the borrower resides on a permanent and continuous basis and is used for purposes such as voter registration, tax filings, and legal identification. To qualify as a principal residence under the program, the property must meet the following conditions: (1) The eligible borrower must physically occupy the property within sixty days after loan closing. (2) The property cannot be used as an investment property, vacation home, or rental property. (3) The eligible borrower must intend to maintain the property as their primary residence for the duration of the loan, barring unforeseen circumstances. 314-5 S$15-314-2 Federal National Mortgage Association, or Federal Home Loan Mortgage Corporation. "Mortgage lender" means any bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, credit union, insurance company, or any other financial institution, or a holding company for any of the foregoing, that: ( 1) ( 2) ( 3) Is authorized to do business in the State; Customarily provides service or otherwise aids in the financing of mortgages on single family or multifamily residential property; and Is a financial institution whose accounts are federally insured or is an institution that is an approved mortgagee for the Federal Housing Administration, an approved lender for the United States Department of Veterans Affairs or the United States Department of Agriculture, or an approved mortgage loan servicer for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. "Mortgage loan purchase agreement" means an agreement by and between the corporation and a mortgage lender, in the form prescribed by the corporation, by which the corporation agrees to purchase eligible loans on the terms and conditions set forth in the agreement. The form of the mortgage loan purchase agreement shall be available for inspection at the principal office of the corporation during normal business hours. "Mortgage loan servicing agreement" means an agreement by and between the corporation and a servicer in the form as may be prescribed by the corporation to service eligible loans. The form of the mortgage loan servicing agreement shall be available for inspection at the principal office of the corporation during normal business hours. "Principal residence" means the property that the eligible borrower occupies as their primary dwelling for the majority of the year. It is the address where the borrower resides on a permanent and continuous basis and is used for purposes such as voter registration, tax filings, and legal identification. To qualify as a principal residence under the program, the property must meet the following conditions: (1) The eligible borrower must physically occupy the property within sixty days after loan closing. (2) The property cannot be used as an investment property, vacation home, or rental property. ( 3 ) The eligible borrower must intend to maintain the property as their primary residence for the duration of the loan, barring unforeseen circumstances. 314-5 §15-314-21 "Recapture notices" means the notices to an eligible borrower that meet the requirements of section 143(m) of the Internal Revenue Code of 1986, as amended. "Servicer" means a mortgage lender or its designee, approved by the corporation, who has executed a mortgage loan servicing agreement with the corporation. [Eff MAY 2 3 2025 ] (Auth: HRS §§201H-93, 201H-97, 201H-98) (Imp: HRS §§201H-93, 201H-94, 201H-105, 201H-106)