Sec. 05.06.01.01. Purpose

A. It is the purpose of the Fund to use creatively its authority to insure mortgages so as to increase the housing opportunities of the residents of the State.

B. More particularly, the Fund promotes the construction and rehabilitation of housing by insuring mortgages to finance multifamily housing funded by any qualified bank, trust company, savings and loan association, national bank association, public agency, insurance company, or other financial institution. This insurance makes these obligations more marketable, and permits them to be sold at more favorable rates than otherwise possible. The qualified public agencies include the Community Development Administration of the Department of Housing and Community Development, which is the State housing finance agency, and may include other public agencies which operate housing finance programs satisfactory to the Fund and which would benefit by Fund insurance.

C. These regulations set forth the policies and procedures for issuance of mortgage insurance by the Maryland Housing Fund to insure multifamily residential property.