§ 122A-5.1. Rules and regulations governing Agency activity. - North Carolina Statutes

§122A‑5.1.  Rules and regulations governing Agency activity.

(a)        The Agency shallfrom time to time adopt, modify or repeal rules and regulations governing thepurchase of federally insured securities by the Agency and the purchase andsale of mortgage loans and the application of the proceeds thereof, includingrules and regulations as to any or all of the following:

(1)        Procedures for thesubmission of requests or the invitation of  proposals for the purchase andsale of mortgage loans or for the purchase of federally insured securities;

(2)        Limitations orrestrictions as to the number of family units, location or other qualificationsor characteristics of residences to be financed by mortgage loans andrequirements as to the income limits of persons and families of lower incomeoccupying such residences;

(3)        Restrictions as tothe interest rates on mortgage loans or the return which may be realized bymortgage lenders on any mortgage loans or on the sale of federally insuredsecurities to the Agency;

(4)        Requirements as tocommitments by mortgage lenders with respect to the use of the proceeds of saleof any federally insured securities;

(5)        Schedules of anyfees and charges necessary to provide for expenses and reserves of the Agency;and

(6)        Any other mattersrelated to the duties and the exercise of the powers of the Agency to purchaseand sell mortgage loans, or to purchase federally insured securities.

Such rules and regulationsshall be designed to effectuate the general purposes of this Chapter and thefollowing specific objectives: (i) the construction of decent, safe andsanitary residential housing at low prices or rentals which persons andfamilies of lower income can afford; (ii) the rehabilitation of present lower‑incomehousing; (iii) increasing the supply of residential housing for persons andfamilies of lower income affected  by the spread of slum conditions and blightand for persons and families of lower income displaced by public action ornatural disaster; (iv) the encouraging of private enterprise and investment tosponsor, build and rehabilitate residential housing for such persons andfamilies to prevent the recurrence of slum conditions and blight and assist intheir permanent elimination throughout the State; and (v) the restriction ofthe financial return and benefit to that necessary to protect against therealization by mortgage lenders of an excessive financial return or benefit asdetermined by prevailing market conditions.

(b)        The interest rateor rates and other terms of federally insured securities or mortgage loanspurchased from the proceeds of any issue of bonds of the Agency shall be atleast sufficient to assure the payment of said bonds and the interest thereonas the same become due from the amounts received by the Agency in repayment ofsuch federally insured securities or such loans and interest thereon.

(c)        The Agency shallrequire as a condition of the purchase of federally insured securities from amortgage lender and the purchase or the making of a commitment to purchasemortgage loans from a mortgage lender where the Agency has not given itsapproval prior to the initial making of the mortgage loan that such mortgagelender shall on or prior to the one‑hundred‑eightieth day (or suchearlier day as may be prescribed by rules and regulations of the Agency)following the receipt of the sale proceeds have entered into writtencommitments to make, and shall thereafter proceed as promptly as practicable tomake from such sale proceeds, new mortgage loans with respect to residentialhousing in the State having a stated maturity of not less than 20 years fromthe date thereof in an aggregate principal amount equal to the amount of suchsale proceeds. The Agency shall not purchase nor make commitment to purchasemortgage loans, federally insured securities or other obligations from amortgage lender from which it has previously purchased federally insuredsecurities or mortgage loans initially made without such prior approval unlesssaid mortgage lender has either made or entered into written commitments tomake such new mortgage loans. (1973, c. 1296, s. 44; 1975,c. 616, s. 3.)