Section 2405-E. Purchase of employer assisted forward commitment mortgages

(1) In accordance with the authority set forth  in  section  twenty-four
  hundred  five-b of this title, the agency may purchase employer assisted
  forward commitment mortgages from banks at such  prices  and  upon  such
  terms and conditions as it shall determine. In conducting its program of
  purchasing  employer  assisted  forward commitment mortgages, the agency
  shall be governed by  the  provisions  of  section  twenty-four  hundred
  five-b  of  this  title.  The  board  of  directors  of the agency shall
  establish from time to time maximum income limits of persons eligible to
  receive such mortgages, which income limits shall not exceed the  latest
  maximum income limits permitted under the Internal Revenue Code of 1986,
  as  amended,  for  mortgages  financed  by  mortgage  revenue  bonds. An
  employer may develop additional qualifications  for  eligible  employees
  beyond  those qualifications provided for in this section, provided that
  such qualifications are non-discriminatory and are pre-approved  by  the
  agency;  the  employer,  however,  shall  remain  solely responsible for
  determining and insuring the legality of such qualifications and may not
  rely on any agency reviews, approvals, legal opinions or statements.
    (2) To participate in an employer assisted forward commitment mortgage
  program, an  employer  must  be  a  corporation,  partnership,  or  sole
  proprietorship  which  maintains an office in the state and must satisfy
  the requirements set forth in guidelines established by the agency.
    (3) For any employer assisted forward commitment mortgage, the maximum
  loan-to-value ratio shall be established by the  agency,  provided  that
  such loan shall not exceed one hundred percent of the appraised value of
  the  mortgaged  premises.  Reasonable  closing costs for the loan may be
  amortized over the life of the loan, provided that the final loan amount
  does not exceed one hundred  percent  of  the  appraised  value  of  the
  mortgaged premises.
    (4)  The  agency  shall  require  any  employer  participating  in the
  employer assisted forward commitment mortgage program  to  guarantee  to
  pay  up to twenty percent of the total outstanding mortgage indebtedness
  (as determined by the agency) for each employee who obtains  a  mortgage
  loan  under  the  provisions  of  this  section and who defaults on such
  mortgage loan during the first seven years of such loan,  regardless  of
  whether such borrower is an employee of such employer at the time of the
  default.