ND SB2078

Bank of North Dakota may establish a residential mortgage loan program only when private sector mortgage loan services are not reasonably available, with local financial institutions assisting in application processing and borrower contact.

Program is limited to originating no more than $8 million in conventional rural residential mortgages with applicants referred by local financial institutions that have not objected to the program.

Loan terms are capped at $200,000 maximum amount, 30-year maximum term, at the Bank's market rate, with maximum 80 percent loan-to-value ratio (local institutions may hold second mortgages up to 95 percent combined loan-to-value).

Bank must process all underwriting, regulatory disclosures, closing documents, and loan disbursement for owner-occupied primary residences only, with standard credit underwriting and documentation requirements.

Act becomes effective July 1, 2011, and expires July 31, 2013; Bank may sell eligible first-time home buyer loans to the North Dakota housing finance agency.