ARM 8.111.407. SECURITY FOR THE LOAN

(1) The property pledged as security for the reverse annuity mortgage will be the only source the board has for repayment of the loan; (2) The property pledged as security for the reverse annuity mortgage loan must meet the following requirements: (a) located in the state of Montana; (b) owner occupied; (c) single family residences including townhomes, condominiums, and manufactured homes; (d) must meet HUD Handbook 4000.1 guidelines; (e) condominiums may be approved by the board staff at its sole discretion. The board staff analysis will, among other things, ensure that the board’s total reverse annuity mortgage loan portfolio is not overexposed to risk posed by the condominiums; and (f) manufactured homes must meet the MBOH General Terms and Conditions of MBOH MBS Regular Bond Loan Program requirements.