HB651 Summary

• Authorizes the Alabama Housing Finance Authority to purchase mortgage loans from mortgage lenders, directly or indirectly, for both original purchase financing and refinancing of eligible housing units.

• Grants the authority power to make and originate second mortgage loans secured by eligible housing units.

• Adds definitions for "second mortgage loans" and "second mortgages" to the Code of Alabama, establishing them as notes secured by mortgages that are subordinate in priority to other mortgages on the same property.

• Removes the prior restriction in Section 24-1A-20 that prohibited using the authority to assist present owners for refinancing purposes, replacing it with "[Reserved]".

• Becomes effective immediately upon passage and approval by the Governor.