TITLE 42
State Affairs and Government

CHAPTER 42-55
Rhode Island Housing and Mortgage Finance Corporation

SECTION 42-55-7


§ 42-55-7. Powers relative to purchase of and sale to mortgage lenders of loans – Loans to mortgage lender.

The corporation shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including the following powers in addition to others granted in this chapter:

(1) To invest in, purchase or to make commitments to purchase, and take assignments from mortgage lenders, of notes and mortgages evidencing loans for the construction, rehabilitation, installation of energy saving improvements to, purchase, leasing, or refinancing of housing for persons and families of low and moderate income or health care facilities in this state upon the terms set forth in § 42-55-10;

(2) To make loans to mortgage lenders under terms and conditions requiring the proceeds to be used by those mortgage lenders for the making of new residential mortgages or health care facilities upon the terms set forth in § 42-55-10;

(3) To make commitments to purchase, and to purchase, service and sell federally insured mortgages, and to make loans directly upon the security of a mortgage, provided the underlying mortgage loans shall have been made and shall be continued to be used solely to finance or refinance the construction, rehabilitation, purchase, or leasing of residential housing for persons and families of low and moderate income or health care facilities in this state;

(4) To sell, at public or private sale, with or without public bidding, any mortgage or other obligation held by the corporation;

(5) Subject to any agreement with bondholders or note holders, to collect, enforce the collection of, and foreclose on any collateral securing its loans to mortgage lenders and acquire or take possession of the collateral and sell it at public or private sale, with or without public bidding, and otherwise deal with such collateral as may be necessary to protect the interest of the corporation therein;

(6) To make or participate in the making of mortgage loans to persons of low or moderate income and owners of property subject to tax sale for the purpose of extinguishing tax liens, redeeming tax titles or preventing loss of property due to nonpayment of taxes. Any loan made pursuant to this paragraph may be secured by a mortgage or otherwise, shall be repaid, shall bear interest and shall be upon any terms and conditions that may be determined by the corporation;

(7) To acquire at tax sales liens on one to four (4) family residential properties, to hold the lien while endeavoring to assist the property owner with retaining ownership, to hold and sell the property where consistent with the purpose of the corporation to encourage home ownership, particularly by low-income persons, productive and beneficial use of property, and other purposes of the corporation, and to adopt rules and regulations necessary to carry this program into effect.

History of Section.
(P.L. 1973, ch. 262, § 1; P.L. 1980, ch. 167, § 3; P.L. 2005, ch. 286, § 1; P.L. 2005, ch. 307, § 1.)