234.592 Qualified subprime loan refinancing.

(1) Definitions. In this section:

(a) “Authorized lender" has the meaning given in s. 234.59 (1) (a).

(b) “Eligible property" has the meaning given in s. 234.59 (1) (d) 1.

(c) “Principal residence" has the meaning given in. s. 234.59 (1) (j).

(d) “Qualified subprime loan" means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008.

(2) Powers and duties of the authority. The authority shall establish and administer a qualified subprime loan refinancing program to encourage homeownership and to facilitate the retention of eligible property by applicants. To implement the program, the authority:

(a) May finance the acquisition or replacement of a qualified subprime loan and may enter into contracts permitting an authorized lender to finance the acquisition or replacement of a qualified subprime loan or both.

(b) Shall maintain a current list of authorized lenders.

(c) May enter into agreements to insure or provide additional security for loans or bonds or notes issued under s. 234.60.

(3) Loan conditions.

(a) Except as provided in par. (b), the authority may finance the acquisition or replacement of or enter into contracts permitting an authorized lender to finance the acquisition or replacement of an existing mortgage given by an applicant on an eligible property only if all of the following conditions are satisfied:

1. The eligible property is and will remain the principal residence of the applicant.

2. The existing mortgage was originally financed through a qualified subprime loan and has not subsequently been refinanced.

3. The authority makes a determination that the mortgage described in subd. 2. will be reasonably likely to cause financial hardship to the applicant if not refinanced.

4. The term of any refinancing agreement entered into under this paragraph does not exceed 30 years.

5. The monthly payments to be made by an applicant under an agreement entered into under this paragraph include principal, interest, property taxes, and insurance. In this subdivision, “insurance" includes mortgage insurance, homeowner's insurance, and, if applicable, flood insurance.

6. The authority complies with special rules for subprime refinancing established under 26 USC 143 (k) (12).

(b) The authority may not enter into an agreement under this subsection if the applicant's name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

History: 2009 a. 2.