2405-E - Purchase of employer assisted forward commitment mortgages.

§  2405-e. Purchase of employer assisted forward commitment mortgages.  (1) In accordance with the authority set forth  in  section  twenty-four  hundred  five-b of this title, the agency may purchase employer assisted  forward commitment mortgages from banks at such  prices  and  upon  such  terms and conditions as it shall determine. In conducting its program of  purchasing  employer  assisted  forward commitment mortgages, the agency  shall be governed by  the  provisions  of  section  twenty-four  hundred  five-b  of  this  title.  The  board  of  directors  of the agency shall  establish from time to time maximum income limits of persons eligible to  receive such mortgages, which income limits shall not exceed the  latest  maximum income limits permitted under the Internal Revenue Code of 1986,  as  amended,  for  mortgages  financed  by  mortgage  revenue  bonds. An  employer may develop additional qualifications  for  eligible  employees  beyond  those qualifications provided for in this section, provided that  such qualifications are non-discriminatory and are pre-approved  by  the  agency;  the  employer,  however,  shall  remain  solely responsible for  determining and insuring the legality of such qualifications and may not  rely on any agency reviews, approvals, legal opinions or statements.    (2) To participate in an employer assisted forward commitment mortgage  program, an  employer  must  be  a  corporation,  partnership,  or  sole  proprietorship  which  maintains an office in the state and must satisfy  the requirements set forth in guidelines established by the agency.    (3) For any employer assisted forward commitment mortgage, the maximum  loan-to-value ratio shall be established by the  agency,  provided  that  such loan shall not exceed one hundred percent of the appraised value of  the  mortgaged  premises.  Reasonable  closing costs for the loan may be  amortized over the life of the loan, provided that the final loan amount  does not exceed one hundred  percent  of  the  appraised  value  of  the  mortgaged premises.    (4)  The  agency  shall  require  any  employer  participating  in the  employer assisted forward commitment mortgage program  to  guarantee  to  pay  up to twenty percent of the total outstanding mortgage indebtedness  (as determined by the agency) for each employee who obtains  a  mortgage  loan  under  the  provisions  of  this  section and who defaults on such  mortgage loan during the first seven years of such loan,  regardless  of  whether such borrower is an employee of such employer at the time of the  default.