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<br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />. <br /> <br />2.08 Mortgage Loan Terms. <br /> <br />(A) The interest rate to be paid on all Mortgage Loans shall be a <br />rate that is establ ished by the Agency in the Mortgage Loan Purchase Agreement <br />which interest rate is consistent with its costs of borrowing, expenses of <br />operation and reserves against losses due to default, <br /> <br />(B) Each Mortgage Loan shall be scheduled for repayment within <br />the shortest period consistent with the ability of the Mortgagor to pay the <br />required principal and interest on the Mortgage and other attendant expenses, <br />but in no case shall it have a, maturity which is greater than 30 years, or <br />eighty percent of the estimated economic life of the property, whichever is <br />less. <br /> <br />(C) The Mortgage Loan shall provide that payments will be due on <br />the first of each month. Payments to principal shall commence on the first <br />day of the second month following the date of settlement of the Mortgage Loan. <br /> <br />(0) The Mortgage Loan shall comply in all respects with the <br />requirements and limitations of the Act, the Program and applicable rules and <br />regulations of the Mortgage Insurer. <br /> <br />(E) The Agency sh all es tab 1 ish a Mortgage Loan prepaymen t penalty <br />which it deems satisfactory to protect its financial obligations to the <br />purchasers and holders of the Agency's notes or Bonds; provided, however, that <br />any such prepayment penalty shall not be greater than the maximum amount, if <br />any, provided therefor in the Mortgage Loan Purchase Agreement and the <br />Sellers' Guide and as permitted under the rules and regulations of the <br />Mortgage I nsurer and State 1 aw. <br /> <br />2.09 Default Under Mortgage. Mortgages held as security for Mortgage <br />Loans made under the Program which are in default may be foreclosed by the <br />Servicer according to the terms of the security deed of trust by advertisement <br />and p,ublic sale under power contained therein. <br /> <br />2.10 Mortgage Servicing, In the case of Mortgage Loans submitted by a <br />Qualified Mortgage Lender and approved for purchase according to the <br />provisions of the Mortgage Loan Purchase Agreement, the Agency will offer a <br />Servicing Agreement to such Qualified Mortgage Lender. Should the Qualified <br />Mortgage Lender decl ine to enter into such Servicing Agreement, the Agency may <br />provide for the servicing of the Mortgage Loan by entering into a Servicing <br />Agreement with another Qualified Mortgage Lender. Servicing of all Mortgage <br />Loans sh all be accomp 1 i shed pursuant to and in compliance wi th the Servi cing <br />Agreement and the Servicers' Guide. <br /> <br />8 <br />