Sec. 05.04.10.09. Participation of Lenders

A. Lenders participating in the Program shall be approved as originators in the FHA Title I Property Improvement Program, or the applicable loan insurance program of the MHF, or any other approved loan insurer, and be in compliance with all applicable State and federal laws, rules and regulations governing the business of the lender and the making of residential property improvement loans.

B. The Administration may issue invitations to lenders to participate in the Program and to sell loans to the Administration if there are funds available to conduct the Program. Invitations will be mailed to all eligible lenders who request them or who are known to the Administration to be interested in participating in the Program. These invitations will include:

(1) The date by which the application and other documents shall be submitted to be considered for acceptance and the date by which the Administration shall issue a notice of acceptance or approval if the application is accepted;

(2) The time period during which the lender must commit to make loans and deliver loans to the Administration for purchase;

(3) The time or times, if any, within which the Administration must sell and deliver bonds on terms satisfactory to it, as a condition of any obligation to purchase loans;

(4) Other information which is necessary or desirable to inform lenders of the terms of the invitation.

C. Lenders wishing to participate in the Program shall file an application with the Administration in response to the invitation. The application will include the aggregate principal amount of loans which the lender desires to originate and sell. The Administration may require commitment fees. Also, the Administration may require other information necessary or desirable to assist in approving applications and allocating funds.

D. The Administration shall enter into a loan purchase agreement with lenders who are notified that their application has been accepted or approved. The agreement shall include detailed terms and conditions under which the lender will offer loans to the Administration for purchase and by which the Administration shall purchase the loans. The agreement shall require that as a condition of purchase of a loan that the loan satisfy all of the applicable requirements of 103 and 103A of the Code.