(a) The agency may approve a housing accommodation for mortgage insurance, with such terms and conditions as the agency may prescribe; provided, that, as of the date of issuance of the insurance, the housing accommodation securing the mortgage:

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Terms Used In Tennessee Code 13-22-102

  • Agency: means the housing development agency, created pursuant to §. See Tennessee Code 13-22-101
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Cost of rehabilitation: means the sum total of the costs incurred by an owner and approved by the agency as reasonable and necessary for carrying out the rehabilitation of housing accommodation or accommodations. See Tennessee Code 13-22-101
  • Housing accommodation: means any building or structure, or portion thereof, and facilities incidental thereto, which is occupied or used, or is intended to be occupied or used, as the residence or home of one (1) or more persons or families. See Tennessee Code 13-22-101
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Mortgagor: means the original borrower under an insurable mortgage, and such original borrower's successors and assigns, as approved by the agency. See Tennessee Code 13-22-101
  • Rehabilitation: means the alteration, improvement or repair of one (1) or more housing accommodations and facilities incidental thereto, intended to raise the housing accommodations to the design and condition required for use. See Tennessee Code 13-22-101
(1) Is occupied or used, or is intended to be occupied or used, by the mortgagor as the mortgagor‘s residence;
(2) Contains, or upon completion of any rehabilitation will contain, no substantial violation of any applicable building or housing code, fire ordinance, or health regulation, and is not, or will not be, considered substandard or in a deteriorating or dilapidated condition; and
(3) Has a remaining useful life, or will have upon completion of any rehabilitation, of no less than one hundred twenty percent (120%) of the terms of the mortgage loan.
(b) The agency may approve any housing accommodation for a commitment for mortgage insurance, upon such terms and conditions as the agency may prescribe; provided, that, prior to the issuance of the commitment, there has been submitted to the agency a plan, satisfactory to the agency, to render the housing accommodation in conformance with the requirements of subsection (a). A commitment to insure a mortgage loan for a housing accommodation may include provisions, as established by the agency in accordance with its rules and regulations, for the insuring of work progress payments or draws, paid out for the cost of rehabilitation as the work progresses, protecting the interests of the mortgagor and mortgagee.
(c) The agency may approve a housing accommodation for mortgage insurance which does not presently require improvement, repair, or rehabilitation; provided, that it is located in a code enforcement area, older urban neighborhood, an area of historic or community importance, a rural community, or an area specifically designated by the agency as a reinvestment area.
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