19.8064.01000
Sixty-sixth
Legislative Assembly SENATE BILL NO. 2098
of North Dakota
Introduced by
Industry, Business and Labor Committee
(At the request of the Bank of North Dakota)
1 A BILL for an Act to amend and reenact section 6-09-44 of the North Dakota Century Code,
2 relating to the Bank of North Dakota residential mortgage loan program; and to declare an
3 emergency.
4 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
5 SECTION 1. AMENDMENT. Section 6-09-44 of the North Dakota Century Code is amended
6 and reenacted as follows:
7 6-09-44. Residential mortgages.
8 1. The Bank may establish a residential mortgage loan program under which the Bank
9 may originate residential mortgages if private sector mortgage loan services are not
10 reasonably available. Under this program a local financial institution or credit union
11 may assist the Bank in taking a loan application, gathering required documents,
12 ordering required legal documents, and maintaining contact with the borrower.
13 2. If the Bank establishes a program under this section, at a minimum the program must
14 provide:
15 a. An applicant must be referred to the Bank by a local financial institution or credit
16 union;
17 b. The loan application must be for an owner-occupied primary residence; and
18 c. The Bank provide all regulatory disclosures, process and underwrite the loan,
19 prepare closing documents, and disburse the loan; and
20 d. The terms of the loan originated by the Bank must provide:
21 (1) The amount of the loan may not exceed an amount to be established by
22 Bank policy;
23 (2) The term of the loan may not exceed thirty years;
24 (3) The rate of the loan must be equal to the Bank's market rate;
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Sixty-sixth
Legislative Assembly
1 (4) The maximum loan to value may not exceed eighty percent of appraised
2 value; however, a local financial institution or credit union may take a
3 second mortgage that does not exceed a combined loan to value of
4 ninety-five percent; and
5 (5) Standard credit underwriting and documentation applies.
6 3. The Bank may sell eligible first-time home buyer loans to the North Dakota housing
7 finance agency.
8 SECTION 2. EMERGENCY. This Act is declared to be an emergency measure.
Page No. 2 19.8064.01000
Statutes affected: INTRODUCED: 6-09-44
Enrollment: 6-09-44