Sec. 18.56.096. Limitation on power to make or purchase mortgage loans.

754 words·~3 min read·/ak/title-18/chapter-56/18-56-096

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(a)The corporation may not make, participate in the making of, purchase, or participate in the purchase of

(1)a first mortgage loan under this chapter for a duplex, triplex, or four-plex that exceeds the limitations on first mortgage loans for similar housing purchased by the Federal National Mortgage Association as to principal amount and loan-to-value ratio;

(2)a second mortgage loan for a duplex, triplex, or four-plex the amount of which, when combined with the principal balance of a first mortgage loan on the property, exceeds the limitation on the amount set out in

(1)of this subsection or that has a loan-to-value ratio, when considered with the principal balance of the first mortgage loan, that exceeds 90 percent;

(3)a mortgage loan to finance the purchase of new housing or for the improvement or rehabilitation of existing housing, unless the construction, improvement, or rehabilitation work has been performed by a contractor who is registered to work as a contractor under AS 08.18 ; this paragraph does not apply if the construction, improvement, or rehabilitation work

(A)has been totally or substantially performed by the borrower;

(B)has been performed by a borrower who acts as the contractor for the construction, improvement, or rehabilitation work; or

(C)has been performed in an area designated by the corporation as exempt from the requirements of this paragraph because of the unavailability of registered contractors in that area;

(4)a first mortgage loan for a single-family residence that exceeds the limitations on first mortgage loans for similar housing purchased by the Federal National Mortgage Association as to principal amount by more than 10 percent or a second mortgage loan for a single-family residence, the amount of which, when combined with the principal balance of a first mortgage loan on the property, has a loan-to-value ratio that exceeds 90 percent;

(5)a first or second mortgage loan for rental housing unless the borrower agrees not to discriminate against tenants or prospective tenants because of sex, marital status, changes in marital status, pregnancy, parenthood, race, religion, color, national origin, or status as a student;

(6)a first mortgage loan if the borrower has an outstanding first mortgage housing loan under this chapter or an outstanding first mortgage loan for owner-occupied housing under former provisions of AS 44.47 ; or

(7)a loan to a person who has a past due child support obligation established by court order or by the child support services agency under AS 25.27.160 — 25.27.220 at the time of application.

(b)The loan-to-value limitation established in (a)(4) of this section does not apply to a mortgage loan that is federally insured or guaranteed. The loan-to-value limitations established in (a)(1) and

(4)of this section do not apply to a mortgage loan that is a refinancing mortgage loan under AS 18.56.108 .

(c)The corporation may not make, participate in the making of, purchase, or participate in the purchase of a loan for a residential building if construction of the building began after December 31, 1991, unless the building complies with the thermal and lighting energy standards required by AS 46.11.040 . The corporation

(1)may adopt regulations to implement this subsection; and

(2)shall, by regulation, establish

(A)procedures by which the person responsible for the construction of the building may demonstrate that the building complies with the thermal and lighting energy standards, including

(i)self-certification, if the contractor responsible for the building construction provides satisfactory evidence that the contractor has completed a training program that is satisfactory to the corporation;

(ii)submission of the certificate of a registered architect, registered engineer, or a building inspector, and the architect, engineer, or building inspector has completed a training program that is satisfactory to the corporation;

(iii)submission of the certificate of occupancy issued by the municipality in which the building is located, if the certificate is issued by a municipality in which the municipal building code meets or exceeds the thermal and lighting energy standards, as determined by the corporation;

(iv)another method approved by the corporation in regulations adopted by the corporation; and

(B)criteria by which the energy conservation standards may be met; for purposes of this subparagraph, the residential building complies with the energy standards if the residence has received a rating under a home energy rating system adopted by the corporation that, in the judgment of the corporation, meets or exceeds the thermal energy standards required by AS 46.11.040 .