Regulations of Connecticut State Agencies
(a) CHFA may elect to make mortgage money available through participating lenders in the state. CHFA will not issue separate allocations to any particular participating lenders. CHFA shall notify all participating lenders by mail when mortgage money is available.
(b) Prior to an allocation of funds, CHFA will establish a date after which loan reservation requests may be accepted. Participating lenders shall not establish interview lists for loan applications and shall not accept applications for funds prior to the date set by CHFA. CHFA will not accept reservations for funds prior to such date.
(c) Mortgage money may be reserved by a participating lender for a prospective borrower only after the prospective borrower has entered into a written sales agreement covering the property to be financed, a copy of which agreement shall be supplied to the participating lender, and has shown evidence of income by supplying a copy of the federal income tax return most recently filed by the prospective borrower, unless he has not been required to file such return. Such reservation of funds not committed within four (4) months of the date of reservation shall be cancelled and of no further effect unless extended by CHFA.
(d) Participating lenders shall take and process applications from prospective borrowers on a "first-come, first-served" basis, unless otherwise directed by CHFA. No preference may be shown an applicant, at any stage of the process, on account of the latter's relationship with particular brokers or developers, his membership in certain groups or organizations, or his status as a depositor, customer or employee of the participating lender.
(e) Prior to each allocation of funds, CHFA shall notify the participating lenders of the procedures to be followed in reserving funds for prospective borrowers. CHFA will accept only those reservations made in accordance with announced procedures.
(f) Notwithstanding any of the above provisions, CHFA reserves the right to use lotteries or similar devices in the allocation or reservation of funds whenever, in its sole discretion, it determines that such a step is necessary for an equitable distribution of funds. CHFA further reserves the right to accept funds reservations directly from prospective borrowers.
(g) CHFA reserves the right to hold back a portion of any bond issue for use in special programs, in furtherance of its goals in providing financing for owner-occupied one- to four-family housing. CHFA may limit participation in such special programs to certain designated lenders or may itself administer loans made thereunder.
(Effective January 27, 1986)