North Dakota Code 6-09-44 – Residential mortgages
1. The Bank may establish a residential mortgage loan program under which the Bank may originate residential mortgages if private sector mortgage loan services are not reasonably available. Under this program a local financial institution or credit union may assist the Bank in taking a loan application, gathering required documents, ordering required legal documents, and maintaining contact with the borrower.
Terms Used In North Dakota Code 6-09-44
- Bank: means any national bank, national banking association, corporation, state bank, state banking association, or savings bank, whether organized under the laws of this state or of the United States, engaged in the business of banking. See North Dakota Code 6-01-02
- Credit union: means a cooperative, nonprofit association organized for the purposes of encouraging thrift among its members, creating a source of credit at a fair and reasonable rate of interest, and providing an opportunity for its members to improve their economic and social condition. See North Dakota Code 6-01-02
- Financial institution: means any bank, industrial loan company, or savings and loan association organized under the laws of this state or of the United States. See North Dakota Code 6-01-02
- 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
- Process: means a writ or summons issued in the course of judicial proceedings. See North Dakota Code 1-01-49
2. If the Bank establishes a program under this section, at a minimum the program must provide:
a. An applicant must be referred to the Bank by a local financial institution or credit union; b. The loan application must be for an owner-occupied primary residence; and
c. The Bank provide all regulatory disclosures, process and underwrite the loan, prepare closing documents, and disburse the loan.
3. The Bank may sell eligible first-time home buyer loans to the North Dakota housing finance agency.