Interest Rate. The interest rate or rates on mortgage loans shall be set from time to time by the Administration taking into account: The interest payable by the Administration on its bonds; Administrative expenses of the Program; Possible losses due to mortgage loan defaults; Maximum earnings on bond proceeds financing the loans as permitted under §§103 and 141—150 of the Code, as applicable; Minimum earnings on bond proceeds as required under Housing and Community Development Article, §4-248, Annotated Code of Maryland, and any applicable bond certificate; The income levels of the households being served; and Other matters the Administration considers relevant or appropriate. Maturity Date. The maturity dates for mortgage loans shall be determined by taking into account the maturity dates of the Administration's bonds. In most cases a mortgage loan will have a term not to exceed 30 to 40 years. However, the term of a mortgage loan may not exceed the remaining economic life of the eligible residence. Lien Priority. The mortgage shall be either: A first mortgage lien on the eligible residence, subject only to permitted liens and encumbrances, which may include reservations, easements, and other imperfections of title acceptable to the mortgage insurer and the Administration; or A subordinate lien as permitted by the Administration, in its sole discretion. Title Insurance. Each mortgage shall be the subject of a title insurance policy acceptable to the Administration in an amount not less than the original principal amount of the mortgage loan, insuring that the mortgage is a first mortgage lien or, if applicable under §C of this regulation, a subordinate lien as permitted by the Administration. Subordinate Liens. At the time a Program loan is made or purchased, a borrower may not place any subordinate liens on the property securing the mortgage loan without the prior consent of the Administration. Mortgage Insurance. Mortgage loans shall be the subject of such primary and pool mortgage insurance or other credit enhancement as required by any applicable bond certificate or as the Administration requires in its sole discretion. With the approval of the pool insurer, if any, the Administration may permit termination of primary mortgage insurance provided by MHF or a private mortgage insurer: If the borrower is not delinquent and if the unpaid principal amount of the mortgage loan is 78 percent or less of the original principal amount or as otherwise permitted by the Administration; or As otherwise required by State or federal law. Property Insurance. Fire and extended hazard insurance coverage shall meet the following requirements: Policies shall be written by insurance companies authorized to transact business in the State; Policies shall be in force at the time of the mortgage loan closing; The Administration shall be named as the mortgagee in a standard mortgagee clause or endorsement attached to or printed in the policy; The insurance shall be in an amount at least equal to the lesser of: The original principal balance of the mortgage loan, or 100 percent of the replacement value of the improvements located on the property; The insurance shall be payable in an amount equal to any partial or total loss not exceeding the full amount of insurance to prevent the borrower from being a coinsurer; The terms and coverage of all insurance policies shall be satisfactory to the Administration. Loan Documents. The Administration may prescribe the form and the substance of the loan documents. The loan documents may provide for: A single monthly payment, due on the first day of the month, to be applied to interest, principal, and expenses, in the order determined by the Administration, which may be preceded by a period of monthly payments calculated in the amount of interest and expenses only, to be applied to interest, principal, and expenses in the order determined by the Administration; The monthly payment of expenses equal to 1/12 of annual real estate taxes, any ground rent, property insurance premiums, mortgage insurance premiums, condominium or homeowners association fees, unless otherwise directed by the Administration, and any other item required by the Administration; A late charge; Each loan to be due on transfer and not be assumable without the written consent of the Administration, which may be granted only if the transfer is not in violation of the Code; The Administration to increase the rate of interest as an alternative to acceleration of the indebtedness in the event of certain nonmonetary defaults related to covenants by the mortgagor required by provisions of the Code, to facilitate transfer of the loan out of the Program; Prepayment premiums if otherwise permitted by State law for private mortgages; A prohibition on subordinate liens without the consent of the Administration; and Other provisions necessary to protect the interests of the Administration, to further its purposes, and to ensure compliance by the Administration with the Act, any applicable provisions of the Code, and the applicable bond certificate. Loans for Acquisition and Rehabilitation. The Administration, in its discretion, may make or purchase loans that finance a combination of acquisition and rehabilitation costs, if the loans meet the requirements of the Code, the Act, applicable bond documents, and any other applicable requirements.