SECTIONS 51125-51128 - California Statutes

HEALTH AND SAFETY CODE

SECTION 51125-51128

51125. The agency may invest in, purchase, or make commitments to
purchase, and take assignments from qualified mortgage lenders of,
construction loans, mortgage loans, property improvement loans,
obligations secured by construction loans, mortgage loans, property
improvement loans and participations therein for financing or
refinancing of housing developments and residential structures.
The agency may also invest in, purchase, or make commitments to
purchase, and take assignments from qualified mortgage lenders of,
loans for rehabilitation or home improvements not secured by a
mortgage but wholly or partially insured by an agency or
instrumentality of the United States, or participation in such loans.
Such construction loans, mortgage loans, property improvement
loans, obligations secured by construction loans, property
improvement loans or mortgage loans, rehabilitation and home
improvement loans, or participations therein may be held or sold by
the agency, or the agency may create pools of such loans,
obligations, and participations held by the agency and may sell
securities backed by such pools.

51126. The agency may invest in, purchase, or make commitments to
purchase any residential mortgage or any obligation secured by a
residential mortgage or participation therein, and sell such
obligations, residential mortgages, or participations or create pools
of such obligations, residential mortgages, or participations held
by the agency and issue and sell securities backed by such pools. The
agency shall require the seller of such obligations, residential
mortgages, or participations purchased by the agency to use the
proceeds for the purpose of financing housing developments and
residential structures.

51127. The agency may insure or guarantee any obligation held by
the agency and secured by a mortage on a housing development or
residential structure for the purpose of increasing its acceptability
or value for sale or as security for other obligations. The agency
may also insure or guarantee any loan, or participation in a loan,
for rehabilitation or home improvement which is insured by an agency
or instrumentality of the United States and which is held by the
agency. Nothing in this section shall, however, be construed as
authorizing the creation of a debt or liability of the state within
the meaning of Section 1 of Article XVI of the State Constitution.

51128. Sales of mortgage obligations and securities pursuant to
this article may be made at public or private sale, with or without
public bidding, whether directly or through a contract with a private
marketing intermediary.