Section 15.151.625. Refinance program of non-corporation loans.

	(a)  The Corporation will, in its discretion and in accordance with procedures outlined in the sellers' guide and the servicers' guide, refinance eligible loans not owned by the Corporation if:  
		(1) all loans are current and the borrower's payment record has been satisfactory;  
		(2) the refinance mortgage loan is secured by a first lien of the residence for which it is made, and any previous financing or lien relating to that property not included in the refinance subordinated to the lien of the refinance mortgage loan made by the Corporation; and  
		(3) the residence securing the refinance mortgage loan is a single-family dwelling, a duplex, a triplex, a four-plex, or a Type I mobile home.  
	(b)  A refinance mortgage loan under this section is also subject to the following terms and conditions:  
		(1) the principal amount of the refinance mortgage loan will not exceed the sum of:  
			(A) the principal amount of the mortgage loan or loans being refinanced; and  
			(B) the amount of the closing costs borne by the borrower and approved by the Corporation.  
		(2) the mortgage loan must be insured or guaranteed as provided in 15 AAC 151.020(a)(3) and (a)(4);  
		(3) the mortgage loan will bear interest at a rate determined by the Corporation to compensate the Corporation for the cost of funds used by the Corporation to purchase the mortgage loan without state Veteran or HOF options;  
		(4) the loan-to-value ratio on a refinance loan shall not exceed limits established by FNMA or FHLMC for similar refinance loans;  
		(5) if the property is also encumbered by a subordinate FNMA or FHLMC loan, the combined balances of all encumbrances may not exceed the Corporation's loan limits for conventional first mortgages; and  
		(6) the maximum term of the loan will be 30 years.  
	(c)  The refinance mortgage loan may include improvements to the property subject to the following:  
		(1) the loan amount may not exceed the balance on the existing loan or loans being refinanced plus the cost of improvements and allowable closing costs; and  
		(2) the improvements to the mortgaged premises may be for energy conservation, solar installation, rehabilitation, modernization, and addition and must either enhance the structural integrity of the building, add to its square footage, increase its appraised value, or constitute a fixture.  

Authorities

18.56.088;18.56.098

Notes

Reference

15 AAC 151.620

Authority

AS 18.56.088 AS 18.56.098

History

Eff. 5/7/93, Register 130; am 6/11/96, Register 139; am 5/3/2001, Register 159