(310 ILCS 45/7) (from Ch. 67 1/2, par. 807)
Sec. 7.
(a) The Agency shall adopt regulations specifying the
percentage of the outstanding principal indebtedness which may be insured
under this Act with respect to each category of mortgages authorized to be
insured under this Act. Mortgages may be insured only for such percentage
of the amount of risk as the Agency determines is necessary to induce
qualified lending institutions to make such mortgages for the purposes
specified in this Act.
(b) To qualify for mortgage insurance, a borrower shall be, or by
reason of a mortgage insured pursuant to this Act shall become, the owner of
the residential structure of more than 5 units for which an insured mortgage is
authorized and shall be able to bear the usual expenses of maintaining
such structure and repay the mortgage. The Agency may, by rule,
establish such additional requirements as it shall deem necessary to
accomplish the purposes of this Section.
(c) For the purpose of increasing the efficiency and minimizing the cost
of the mortgage insurance program, the Agency may insure or issue
commitments to insure mortgages upon the certification of an officer of a
qualified lending institution that the borrower is qualified for mortgage
insurance according to eligibility requirements specified by the rules of
the Agency. However, the Agency shall authorize such certification only
for mortgages with respect to which the qualified lending institution
retains a substantial portion of the total risk.
(d) Maximum mortgage amounts shall be established by rule by the Agency,
consistent with the findings and declarations in this Act.
(Source: P.A. 83-1392.)
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