Sec. 05.06.03.08. Agreements with Mortgage Lenders

A. Under conditions set forth in this regulation, M.H.F. may enter into agreements with mortgage lenders who wish to make insured mortgage loans under the Revitalization Program.

B. Each mortgage lender shall:

(1) Be an eligible mortgagee approved by M.H.F. under COMAR 05.06.01.04; and

(2) Establish the Revitalization Program as a priority as evidenced by the mortgage lender's endorsement of the Program in its Community Reinvestment Act statement.

C. Each agreement:

(1) Shall include such terms and conditions as M.H.F. determines are necessary to balance the risk factors which exist in connection with the proposed agreement;

(2) Shall be approved by the Secretary;

(3) May provide for M.H.F. and the mortgage lender to share up to 1/2 of the insurance fees and a commensurate degree of financial risk of subsequent default in connection with mortgage loans made by the mortgage lender and insured by M.H.F.; and

(4) Shall require all borrowers receiving loans insured by M.H.F. to participate in a counseling program, administered by a counseling agency acceptable to M.H.F., which shall provide:

(a) Counseling on credit issues as required by M.H.F.,

(b) At least one pre-purchase meeting and one post-purchase meeting, and

(c) Additional meetings as required by M.H.F.