Sec. 05.04.11.12. Processing Procedures

A. Commitment for Insurance. Before issuing a commitment for a loan, the Administration shall have secured a mortgage insurance commitment.

B. Commitment.

(1) Except in the case of an emergency when urgent action is required, the Director shall submit all loans above a minimum amount, determined by the Housing Finance Review Committee established under Housing and Community Development Article, §4-208, Annotated Code of Maryland, to the Committee for review and recommendation to the Secretary for approval, disapproval, or modification of the loan and the terms of the loan. At the discretion of the Administration, loans in an amount below the minimum amount established for the Housing Finance Review Committee need not be submitted to the Committee for review and recommendation. The Secretary, in accordance with Regulation .19E of this chapter, may delegate the review and approval of these loans.

(2) After receipt of a recommendation of the Housing Finance Review Committee, the Secretary may approve, disapprove, or modify the loan and the terms of the loan. In an emergency, when urgent action is required and for loans below the minimum amount established for the Housing Finance Review Committee, the Secretary may approve a loan without the recommendation of the Committee.

(3) The Secretary shall execute a written determination that each loan is to finance a special housing facility authorized by the Act, before the issuance of a commitment to make a loan or purchase a loan.

(4) Upon approval of a loan and execution of a determination, the Administration shall issue a commitment letter setting forth:

(a) The amount of the loan;

(b) The interest rate on the loan; and

(c) Other terms and conditions that the Administration considers appropriate for the loan or the project.

(5) The Administration shall specify a time limit within which the initial closing of the loan shall occur, which time limit may be extended in the Administration's sole discretion. If initial closing does not occur within the time limit specified by the Administration, the Administration may use the moneys committed for loan for any other loan or purpose authorized by the Act.