(a) (1) In this section the following words have the meanings indicated.
(2) "Mortgage loan" includes a loan to:
(i) finance or refinance the purchase of stock or membership in a
cooperative ownership housing corporation; or
(ii) rehabilitate units in a cooperative ownership housing corporation.
(3) "Reverse equity mortgage loan" includes a loan that uses the equity
in a home as collateral.
(b) (1) In accordance with § 4-213 of this subtitle, the Administration may
make, participate in making, purchase, and undertake a commitment for:
(i) a mortgage loan or other financial assistance secured by a mortgage
lien for a community development project or public purpose project; and
(ii) a reverse equity mortgage loan secured by a mortgage lien that is for
housing related expenses of an elderly family of limited income.
(2) Financial assistance to purchase a dwelling unit in a community
development project or public purpose project under paragraph (1)(i) of
this subsection may include a temporary loan or advance and a permanent
direct mortgage loan to a family of limited income, if otherwise
required by law.
(3) Housing related expenses under paragraph (1)(ii) of this subsection
include personal expenses that enable the owner to continue to occupy
the owner's home.
(c) (1) A commitment, mortgage, bond, or secured note shall contain terms and
conditions necessary to secure repayment of its loan, the interest on
it, and other charges in connection with the loan.
(2) (i) Except as provided in subparagraph (ii) of this paragraph, a mortgage
loan for a community development project or a public purpose project
and a reverse equity mortgage loan may bear interest at a rate or rates
that the Administration finds will make the project economically
feasible.
(ii) The Administration may not increase the interest rate originally
charged on a permanent direct mortgage loan to a family for the
purchase of a dwelling unit in a community development project or a
public purpose project.
(3) Subject to any agreement with noteholders or bondholders, the
Administration may consent to the modification of the interest rate,
time of payment of any installment of principal or interest, security,
or any other term, of a mortgage, mortgage loan, reverse equity
mortgage loan, mortgage loan commitment, or reverse equity mortgage
loan commitment, contract, or agreement to which the Administration is
a party.
(d) In connection with property on which it holds a mortgage loan or
reverse equity mortgage loan:
(1) the Administration may:
(i) foreclose on the property or begin an action to protect or enforce a
right that is conferred on the Administration by law, a mortgage
contract, or other agreement;
(ii) bid for and purchase the property at a foreclosure or other sale; or
(iii) acquire or take possession of the property; and
(2) in a manner to protect the interests of the Administration, the
Administration may:
(i) complete, administer, and pay the principal of and interest on an
obligation incurred in connection with the property;
(ii) dispose of the property; and
(iii) otherwise deal with the property.
(e) (1) This subsection does not apply to a lien held in connection with a
public purpose project.
(2) The Administration may not lend money on the security of property
unless the lien on the property is superior to all other liens, except
for:
(i) liens for taxes owed to the State or a political subdivision; or
(ii) earlier mortgage liens.
(f) The Administration may sell any mortgage or other obligation that it
holds, at public or private sale, with or without public bidding.
(g) The Administration may purchase securities backed by mortgages to
provide financial assistance to community development projects and
public purpose projects with the proceeds of the securities or with
investment earnings on the securities.
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