Regulations of Connecticut State Agencies
(a) A "participating lender" is a lending institution that cooperates with CHFA in making funds available under its home mortgage program by making mortgage loans that CHFA has agreed to purchase.
(b) To be approved by CHFA as a participating lender or a servicer of CHFA loans, a lending institution must meet the following criteria:
(1) have in Connecticut the capacity and personnel to originate and close mortgage loans;
(2) unless it is a FDIC or FSLIC insured deposit-taking institution incorporated and existing under the laws of Connecticut, have three (3) years experience in making mortgage loans on homes located in Connecticut in the regular course of its business;
(3) be a lender approved by the Federal Housing Administration and the Veterans Administration;
(4) have a minimum tangible net worth of $500,000;
(5) be in compliance with applicable federal and state laws, regulations promulgated thereunder and any licensing requirements by agencies of government having jurisdiction; and
(6) execute the standard Master Commitment Agreement for Mortgage Purchases and, if the lending institution desires to service loans, the standard Home Mortgage Servicing Agreement.
(c) CHFA may remove from the list of approved participating lenders any lending institution that has (i) failed to commit and close mortgage loans in accordance with the Act, these regulations and the Master Commitment Agreement for Mortgage Purchases, or (ii) ceased to meet the criteria for becoming a participating lender. CHFA may terminate the Master Commitment Agreement for Mortgage Purchases and/or the Home Mortgage Servicing Agreement in accordance with the provisions thereof.
(d) Participating lenders shall not restrict applications for loans to any segment of the home mortgage program, except that a participating lender need not accept applications for rehabilitation mortgage loans and need not accept applications for mortgage loans on homes located outside its normal geographic lending areas.
(Effective January 27, 1986)