Texas Local Government Code 394.041 – Standards for Mortgages or Loans
Terms Used In Texas Local Government Code 394.041
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Rule: includes regulation. See Texas Government Code 311.005
A housing finance corporation may establish by rule, in resolutions or financing documents relating to the issuance of bonds, standards and requirements applicable to making or purchasing home mortgages or making loans to lending institutions as considered necessary or desirable by the corporation, including standards and requirements related to:
(1) the time within which lending institutions must make commitments and disbursements for home mortgages;
(2) the location and other characteristics of homes financed by home mortgages;
(3) the terms of home mortgages made or acquired;
(4) the amounts and types of insurance coverage required on homes, home mortgages, and bonds;
(5) the representations and warranties of lending institutions confirming compliance with the standards and requirements;
(6) restrictions as to interest rates and other terms of home mortgages or as to the return realized on those mortgages by lending institutions;
(7) the type and amount of collateral security required on a loan from the corporation and to assure repayment of bonds; and
(8) other matters regarding the making or purchasing of home mortgages or the making of loans to lending institutions as the corporation considers relevant.