APPLICATION PROCESS AND OFFER OF PARTICIPATION

Subpart 1. Request for a first mortgage loan. A lender and an applicant must jointly complete and sign an application and prepare all supporting documents identified in the application. Financial statements must be dated within 120 days of the application. Subp. 2. Lender determination. The lender shall review the proposal and determine the creditworthiness of the applicant and the value of the collateral to be used to secure the loan. If the lender agrees to make a first mortgage loan to the applicant, the lender and the applicant shall jointly prepare the application and required loan documents. Subp. 3. Offer. The lender, as the originator of the first mortgage loan, shall present the application and loan documents to the RFA. Presentation of the documents constitutes an offer to sell a participation interest in the loan. Statutory Authority: MS s 41B.07 ; 41C.13 History: 20 SR 2251(NO. 42); 30 SR 372