8.111.705    LENDER AND SERVICER REQUIREMENTS AND LIMITS

(1) The program will be governed by and subject to the Act and these rules.

(2) Veteran's loans shall be originated and serviced using the processes established for the board's regular bond program loans, as specified in the guide, subject to the following:

(a) where the provisions of the guide are inconsistent with the Act or these rules, the provisions of the Act or these rules shall govern;

(b) terms defined in the Act or these rules shall have the meaning provided in the Act or these rules where used in the guide; and

(c) the sections of the guide pertaining to requirements of the Internal Revenue Service and the bond indentures, as more specifically identified in the guide, shall not apply for purposes of the veteran's loan program.

(3) To participate as a lender under the veteran's loan program, a lender must be a board-approved participating lender under the requirements of ARM 8.111.305. The lender must comply with the applicable provisions of the guide.

(4) A single lender may reserve or originate no more than ten veteran's loans until at least a total of $10 million in loans has been originated by all lenders under the veteran's loan program. The board may waive the ten-loan limit where necessary to provide an opportunity for an eligible applicant to obtain a loan where the loan is not otherwise available to the applicant from another participating lender. Once a total of $10 million in loans has been originated by all lenders under the veteran's loan program, the ten-loan limit shall no longer apply to any lender.

(5) Veteran's loans will be serviced by the board or its designee. Servicing fees shall be as set by the board and posted in the program terms and conditions and on the board's website. A servicing release premium will be paid by the board to the lender.

(6) Lenders must provide the board and the legislative auditor access to all records and documents related to veteran's program loans.

History: 90-6-104, 90-6-106, MCA; IMP, 90-6-104, 90-6-106, MCA; NEW, 2011 MAR p. 2024, Eff. 9/23/11; AMD, 2017 MAR p. 783, Eff. 6/10/17.