§ 51152 Mortgage Lender Loan Agreements

• •The government agency can only lend money to approved mortgage lenders if they have a signed agreement.
• •The agreement must set a highest allowed interest rate for construction or home loans.
• •The agreement must list the rules for the loans, like who can get them and how they work.
• •The agreement must include rules for how the lender handles late payments, like giving extra time or changing the loan terms if someone can't pay.

A bank wants to get money from the government to lend to people buying homes.

The bank must first sign a deal with the government. This deal says the bank can't charge more than, say, 5% interest on home loans. It also says the bank must help people who fall behind on payments, like letting them pay later or changing their loan so they can afford it.