Terms appearing in the Act have the meanings defined there and, in addition, the meanings used in this chapter. Terms Defined. “Act” means Housing and Community Development Article, Title 4, Subtitle 2, Annotated Code of Maryland. “Administration” means the Community Development Administration, an agency within the Division of Development Finance of the Department of Housing and Community Development. “Applicant” means an individual applying for a mortgage loan. “Authorized officer”, for purposes of executing the Program documents, means any of the following: The Director and any Deputy Director of the Administration; The Director of Single Family Housing Programs; The Deputy Director of Single Family Housing Programs; and The Assistant Director of Single Family Housing Programs. “Bond” means a bond, note, or other obligation of the Administration, the proceeds of which finance mortgage loans. “Bond certificate” means: A certificate, resolution, trust indenture, or other instrument authorizing the issuance and sale of bonds; or Any agreement governing any other source of financing. “Borrower” means the obligee on a mortgage loan from the Program. “Closing costs” means costs incurred in connection with purchasing or refinancing an eligible residence, including costs such as the: Credit report fee; Appraisal fee; Home inspection fee; Survey fee; Title examination fee; Loan origination fee; Title insurance fee; Application fee; Attorney's fee; Documentation and preparation fee; Recording fee; State and local transfer tax; and Recordation taxes. “Code” means the Internal Revenue Code of 1986, as amended, 26 U.S.C., or the Internal Revenue Code of 1954, as amended, as applicable, and any related income tax regulations. “Department” means the Department of Housing and Community Development, a principal department of the State of Maryland. “Developer” means an individual or entity that owns, acquires, constructs, or rehabilitates a project of eligible residences, the purchases of which are to be financed by mortgage loans. “Eligible residence” means residential real property which meets the requirements of Regulation .05 of this chapter. “Household” means the individual or individuals who occupy or intend to occupy: The eligible residence, in the case of a one unit residence; or One of the units in the eligible residence, in the case of a two to four unit residence. Income. “Income” means, for purposes of determining whether an applicant's household is qualified as an eligible household, 100 percent of the anticipated annual gross income based on current rate of income from all members of the applicant's household, except as identified in Regulation .04D of this chapter, who intend to reside in an eligible residence as their principal residence. “Income” includes wages, overtime, bonuses, commissions, investment and interest income, unemployment insurance, alimony, child support, pensions, and all other income from any source, as required under the Code, less certain income of minors, unusual or temporary income items, and other items as may be permitted under the Code. “Loan documents” means documents evidencing or securing a mortgage loan or relating to the application for a mortgage loan, including the note, deed of trust, mortgage, and affidavits submitted in connection with the origination of the mortgage loan, and other documents as may be required by the Administration consistent with prevailing prudent lending practices, or to comply with federal and State law. “Manufactured home” means a structure designed to be used as a dwelling, which: Is a multisectional structure which has one HUD certification for each section shipped, and was fabricated on or after June 15, 1976, in an off-site manufacturing facility for installation or assembly at the building site; When installed on the site, meets a minimum floor area, minimum depth, and minimum length as required by the Administration, in its sole discretion; Is installed permanently on an engineered foundation in conformance with the International Residential Code, which is incorporated by reference under COMAR 05.02.07, or the standards set by the American National Standards Institute, Inc., which are incorporated by reference under COMAR 05.02.02, and is not independently capable of movement; Has brick, wood, aluminum, or cosmetically equivalent exterior siding and a pitched composition shingle or wood shake roof; Is certified by: The United States Department of Housing and Urban Development as a manufactured home in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended, or The Department of Housing and Community Development as an industrialized building in accordance with Public Safety Article, §12-308, Annotated Code of Maryland; Complies with all requirements set forth in COMAR 05.02.04; Is installed on real property the borrower owns in fee simple or under a freely transferable ground rent lease, and the legal title to the improvements runs with the real property; Meets all applicable zoning requirements as to number of dwelling units, lot size, and building setbacks; and Is reasonably expected to have an economic life equal to or greater than the term of the mortgage. “Master servicer” means a master servicer selected by the Administration in accordance with section .13F. “MBS” means mortgage-backed securities. “MHF” means the Maryland Housing Fund, an agency within the Division of Credit Assurance of the Department of Housing and Community Development. “Mortgage” means a written instrument including a deed of trust, evidencing or creating a lien against real property for the purpose of providing collateral to secure the repayment of a loan. “Mortgage insurer” means a mortgage pool insurer or provider of primary mortgage insurance, and includes private and governmental mortgage insurers or guarantors. “Mortgage lender” means: Any approved bank, trust company, savings institution, savings and loan association, national bank association, mortgage banker, licensed mortgage lender, insurance company, or other financial institution that: Maintains an office in the State, Engages in making or originating residential mortgage loans, Closes loans in its corporate name; Is authorized to transact business in the State; and Meets other applicable Program criteria; With the prior approval of the Program, two related entities that: Each meets the requirements of §B(22)(a)(i), (ii), (iv), and (v) of this regulation; Originate and close loans and assign to the Administration in a manner approved by the Administration in its sole discretion; and Agree to execute additional documents and meet additional requirements as the Administration determines in its sole discretion; or The Maryland Home Financing Program. “Mortgage loan” means a loan made under the Program and secured by a mortgage. “Prepaid expenses” means costs due at the time of closing which are required by the lender to be paid in connection with closing a mortgage loan such as property taxes, ground rent, hazard insurance, condominium or homeowners association fees, if applicable, and any mortgage insurance premiums. “Program” means the Administration's program for using the proceeds of the Administration's revenue bonds or other sources to: Finance mortgage loans secured by eligible residences: Purchased from lenders, or Made directly by the Administration in accordance with Regulation .14 of this chapter; and Make forward commitments to developers to make or purchase mortgage loans for acquisition of existing, newly constructed, or substantially rehabilitated eligible residences. “Program documents” mean those documents evidencing or securing the obligations of mortgage lenders, loan servicers, or developers to the Administration under the Program. “Project” means an undertaking by a developer relating to existing, newly constructed, or substantially rehabilitated eligible residences, such that the undertaking qualifies as a “community development project” as defined in the Act. “Secretary” means the Secretary of Housing and Community Development. “Settlement costs” means closing costs and prepaid expenses. “Targeted area” means a: Geographically defined area of chronic economic distress as designated by the State and approved by the United States Department of the Treasury and the United States Department of Housing and Urban Development; or Qualified census tract whose population according to the most recent decennial census meets certain income limits set forth under the Code.