Regulations of Connecticut State Agencies
(a) Participating lenders shall verify that all CHFA mortgage loan documents are properly executed by the named borrowers and are correct as to property location, principal amount, interest rate and maturity date.
(b) Participating lenders shall determine the amount of monthly escrow payments with respect to each CHFA mortgage loan and make arrangements for the establishment of an escrow account with the servicer, if the servicing is not to be done by the participating lender. The participating lender or other servicer shall reserve or escrow amounts estimated to be sufficient to pay all escrow items by their respective due dates.
(c) Participating lenders, or other servicers, shall escrow for real estate taxes, mortgage insurance premiums, and hazard insurance premiums (when hazard insurance premiums are required to be escrowed by the mortgage insurer or guarantor).
(d) All fees collected by a participating lender from a borrower or from the seller of property to such borrower, including without limitation application fees and processing fees, shall not in their aggregate exceed one (1) percent of the mortgage amount, except as set forth in paragraph (e) hereof.
(e) A participating lender may recover certain expenses incurred in processing and closing a CHFA mortgage loan application in an amount not to exceed actual cost and not in excess of the maximum amount permitted by the mortgage insurer or guarantor. Such expenses include cash expenditure to pay for outside services rendered, such as appraisals, surveys, legal representation, credit reports, and other items approved in writing by CHFA.
(f) CHFA may transfer funds to a participating lender from whom a CHFA mortgage loan has been purchased prior to the receipt and acceptance of all required loan documents, subject, however, to the provisions set forth in paragraph (h) hereof.
(g) Not later than one hundred twenty (120) days after the closing of a CHFA mortgage loan, the participating lender shall forward the complete loan purchase package to CHFA containing all documents required by the Home Mortgage Programs Operating Manual and the Master Commitment Agreement for Mortgage Purchases. Extensions may be granted by CHFA, in its sole discretion, only upon written request from the participating lender. CHFA may require the repurchase of any loan if its loan purchase package is not received within 120 days after the closing and no extension has been granted. A participating lender's responsibility to submit a loan purchase package will not be relieved by the fact that a different lender will be handling the servicing of the loan in question.
(h) If a participating lender fails to correct or complete documentation for any CHFA mortgage loan within sixty (60) days of the first request therefor or if there is any other breach of the terms of any agreement concerning mortgage purchases between CHFA and the lender, the mortgage may be reassigned to the lender. If funds have been advanced by CHFA to a lender for the purchase of a mortgage, the lender shall repurchase the mortgage and otherwise comply with the terms of any such agreement with CHFA.
(Effective January 27, 1986)