234.55(2)
(2) Subject to agreements with bondholders and except as provided in
sub. (3), the authority may use moneys in the fund solely:
234.55(2)(a)
(a) For the payment of the principal of and interest on housing rehabilitation bonds of the authority when the same become due whether at maturity or on call for redemption and for the payment of any redemption premium required to be paid when such bonds are redeemed prior to their stated maturities, and to purchase such bonds;
234.55(2)(b)
(b) To pay actual and necessary expenses incurred to service and administer outstanding housing rehabilitation bonds, including fees and expenses of trustees and paying agents, and to collect housing rehabilitation loans;
234.55(2)(c)
(c) For transfer to the housing rehabilitation loan program loan loss reserve fund; or
234.55(2)(d)
(d) For transfer to the housing rehabilitation loan fund.
234.55(3)
(3) Any balance remaining after satisfaction of all obligations under
sub. (2) shall be transferred to the housing rehabilitation loan program administration fund.
234.55(4)
(4) Moneys of the fund may be invested as provided in
s. 234.03 (18). All such investments shall be the exclusive property of the fund. All earnings on or income from such investments shall be credited to the fund.
234.59
234.59
Homeownership mortgage loan program. 234.59(1)(a)
(a) "Authorized lender" means a bank, savings bank, savings and loan association, credit union or mortgage banker.
234.59(1)(d)
(d) "Eligible property" means any of the following:
234.59(1)(d)1.
1. A residential structure having a single dwelling unit, if the structure is or will be the principal residence of an applicant.
234.59(1)(d)2.
2. A residential structure having no more than 4 dwelling units, if one of the units is or will be the principal residence of an applicant and the structure is an existing dwelling first occupied at least 5 years before execution of a homeownership mortgage loan secured by the dwelling.
234.59(1)(d)3.
3. A dwelling unit in a condominium, a cooperative, or an unincorporated cooperative association, together with an interest in common areas, if the unit is or will be the principal residence of an applicant.
234.59(1)(d)4.
4. A residential structure having 2 dwelling units, if one of the units will be the principal residence of an applicant.
234.59(1)(e)
(e) "Existing dwelling" means a previously occupied dwelling.
234.59(1)(f)
(f) "Homeownership mortgage loan" means a loan to finance the construction, long-term financing or qualified rehabilitation of an eligible property by an applicant.
234.59(1)(h)
(h) "Mortgage banker" means a mortgage banker licensed under
s. 224.72, but does not include a person licensed under
s. 138.09.
234.59(1)(i)
(i) "New dwelling" means a dwelling which has never been occupied.
234.59(1)(j)
(j) "Principal residence" means residential real property in this state that an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes.
234.59(2)
(2) Powers and duties of the authority. The authority shall establish and administer a homeownership mortgage loan program to encourage homeownership and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority:
234.59(2)(a)
(a) May enter into contracts permitting an authorized lender to make or service homeownership mortgage loans or both.
234.59(2)(c)
(c) Shall maintain a current list of authorized lenders.
234.59(2)(e)
(e) May enter into agreements to insure or provide additional security for homeownership mortgage loans or bonds or notes issued under
s. 234.60.
234.59(3)(bc)1.1. Except as provided in
subd. 3., a homeownership mortgage loan may not be made to an applicant if the applicant's income exceeds the applicable level specified under
26 USC 143 (f).
234.59(3)(bc)2.
2. For the purpose of
subd. 1., no earned income of any minor who will occupy the same dwelling unit as the applicant may be considered.
234.59(3)(bc)3.
3. If the authority sets aside at least 20% of the proceeds of a bond or note issuance under
s. 234.60 to fund home ownership mortgage loans for eligible properties that are targeted area residences, the authority may apply up to 33% of the proceeds that are set aside for that purpose without regard to the income of the applicant.
234.59(3)(c)
(c) The authority shall notify an authorized lender if a person's name appears on the statewide support lien docket under
s. 49.854 (2) (b). An authorized lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender a payment agreement that has been approved by the county child support agency under
s. 59.53 (5) and that is consistent with rules promulgated under
s. 49.858 (2) (a).
234.59(3)(d)
(d) The authority may not make, buy, or assume a home ownership mortgage loan for an individual who does not have a social security number.
234.59(3)(e)
(e) A homeownership mortgage loan may not be made to finance the acquisition or replacement of an existing mortgage given by an applicant. This paragraph does not apply to any of the following:
234.59(3)(e)4.
4. A loan made to pay off a loan funded or serviced by the authority.
234.592
234.592
Qualified subprime loan refinancing. 234.592(1)(d)
(d) "Qualified subprime loan" means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008.
234.592(2)
(2) Powers and duties of the authority. The authority shall establish and administer a qualified subprime loan refinancing program to encourage homeownership and to facilitate the retention of eligible property by applicants. To implement the program, the authority:
234.592(2)(a)
(a) May finance the acquisition or replacement of a qualified subprime loan and may enter into contracts permitting an authorized lender to finance the acquisition or replacement of a qualified subprime loan or both.
234.592(2)(b)
(b) Shall maintain a current list of authorized lenders.
234.592(2)(c)
(c) May enter into agreements to insure or provide additional security for loans or bonds or notes issued under
s. 234.60.
234.592(3)(a)(a) Except as provided in
par. (b), the authority may finance the acquisition or replacement of or enter into contracts permitting an authorized lender to finance the acquisition or replacement of an existing mortgage given by an applicant on an eligible property only if all of the following conditions are satisfied:
234.592(3)(a)1.
1. The eligible property is and will remain the principal residence of the applicant.
234.592(3)(a)2.
2. The existing mortgage was originally financed through a qualified subprime loan and has not subsequently been refinanced.
234.592(3)(a)3.
3. The authority makes a determination that the mortgage described in
subd. 2. will be reasonably likely to cause financial hardship to the applicant if not refinanced.
234.592(3)(a)4.
4. The term of any refinancing agreement entered into under this paragraph does not exceed 30 years.
234.592(3)(a)5.
5. The monthly payments to be made by an applicant under an agreement entered into under this paragraph include principal, interest, property taxes, and insurance. In this subdivision, "insurance" includes mortgage insurance, homeowner's insurance, and, if applicable, flood insurance.
234.592(3)(b)
(b) The authority may not enter into an agreement under this subsection if the applicant's name appears on the statewide support lien docket under
s. 49.854 (2) (b), unless the applicant provides to the authority a payment agreement that has been approved by the county child support agency under
s. 59.53 (5) and that is consistent with rules promulgated under
s. 49.858 (2) (a).
234.592 History
History: 2009 a. 2.
234.60
234.60
Bonds for homeownership mortgage loans and qualified subprime loan refinancing. 234.60(1)
(1) The authority may issue its bonds or notes to fund homeownership mortgage loans or the refinancing of qualified subprime loans under
s. 234.592.
234.60(3)(a)(a) The authority may not have outstanding at any time in aggregate principal amount of bonds or notes issued under this section before January 1, 1983 more than $150,000,000 less not more than $50,000,000 in aggregate principal amount of revenue obligations issued subject to
s. 45.37 (6) (c) on or after May 8, 1982 and before November 1, 1982.
234.60(3)(b)
(b) The authority may not have outstanding at any time in aggregate principal amount of bonds or notes issued under this section from January 1, 1983, to December 31, 1983, more than $185,000,000 less not more than $50,000,000 in aggregate principal amount of revenue obligations issued subject to
s. 45.37 (6) (c) from January 1, 1983, to October 31, 1983.
234.60(3)(bs)
(bs) The authority may not issue in 1987 bonds or notes the aggregate principal amount of which exceeds the greater of the following:
234.60(3)(bs)1.
1. An amount equal to 8.55% of the average annual aggregate principal amount of mortgages executed during the 3 years preceding the year of issuance for single-unit, owner-occupied dwellings in this state.
234.60(3)(c)
(c) The limitations in
pars. (a) and
(b) do not include bonds or notes issued to refund outstanding bonds or notes issued under this section. "Principal amount" as used in
pars. (a) and
(b) means the issue price, as defined in
26 USC 1232 (b) (2) as amended to November 17, 1983.
234.60(4)
(4) Before issuing bonds or notes under this section, the authority shall consult and coordinate the bond or note issue with the building commission.
234.60(5)(a)(a) The secretary of administration shall determine the date after which no bond or note issued may be treated as a qualified mortgage bond under
26 USC 143 (a) (1).
234.60(5)(b)
(b) No bonds or notes may be issued under this section after the date determined under
par. (a), except bonds or notes issued to refund outstanding bonds or notes issued under this section.
234.60(5)(c)
(c) The secretary of administration shall determine the date after which no bond or note may be issued under this section for the purpose of financing the acquisition or replacement of an existing mortgage under
s. 234.592.
234.60(9)
(9) The executive director of the authority shall make every effort to encourage participation in the homeownership mortgage loan program and the qualified subprime loan refinancing program by women and minorities.
234.605
234.605
Homeowner eviction and lien protection program. 234.605(1)(b)
(b) "Lender" means any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this or any other state or of the United States having an office in this state.
234.605(1)(c)
(c) "Mortgage loan" means a loan secured by a first lien real estate mortgage on the eligible property of an applicant.
234.605(2)
(2) Subject to the approval of all members of the authority, the authority may establish and administer a homeowner eviction and lien protection program to encourage the refinancing of mortgage loans by lenders in order to facilitate the retention of eligible property by persons and families.
234.605(3)(a)(a) Except as provided in
par. (b), to implement the program, the authority may enter into agreements with lenders regarding the refinancing of a mortgage loan and may make or participate in the making and enter into commitments for the making of loans to refinance a mortgage loan if the authority first determines all of the following:
234.605(3)(a)1.
1. The applicant has made a reasonable effort to refinance the mortgage loan with the existing lender or loan servicer or with an organization approved by the authority, but the applicant has been unsuccessful in his or her effort. The authority shall designate and maintain a current list of organizations approved under this subdivision.
234.605(3)(a)2.
2. The lender will not refinance the mortgage loan in the absence of an agreement with the authority.
234.605(3)(b)
(b) The authority may not enter into an agreement with a lender under this section if the applicant's name appears on the statewide support lien docket under
s. 49.854 (2) (b), unless the applicant provides to the authority a payment agreement that has been approved by the county child support agency under
s. 59.53 (5) and that is consistent with rules promulgated under
s. 49.858 (2) (a).
234.605(4)
(4) The authority shall submit a quarterly report to the joint committee on finance. The report shall summarize the progress and performance of the program established under this section. The cochairpersons of the joint committee on finance may convene a meeting of the committee at any time to review or dissolve the program established under this section.
