Application. A lender shall submit an application in the form prescribed by the Maryland Housing Fund which shall contain a complete credit package and any other documentation required by the Fund. If documentation is incomplete, the credit evaluation may be delayed and may result in the application's being returned. If an application is denied, the lender may request reconsideration by the Director of the Maryland Housing Fund. Underwriting and Appraisal. An application for mortgage insurance received from an approved lender is subject to underwriting and appraisal review in accordance with the requirements of the Fund. Limitations. Scope of Insurance Coverage. Mortgage insurance coverage is limited to economic loss due to a monetary default and does not include loss due to casualty or title risk. Expenses incurred for property repair resulting from casualty loss, including losses due to negligence, flood, fire, termites, vandalism, and defective construction are not eligible for coverage. Expenses incurred by the lender in the preservation and normal maintenance of an insured property are covered in accordance with the terms and conditions of the master insurance policy governing the insured mortgage. Loan Assumptions. A transfer of title to a property that is the subject of an insured mortgage requires the prior approval of the Fund, except when the: Transfer cannot by law be prohibited; or Lender is without actual knowledge of the transfer. Insurance Certificates. A primary mortgage insurance certificate issued by the Fund is conclusive evidence of the eligibility of the mortgage for insurance as of the effective date of the insurance coverage, if: Insurance premiums are paid as due; and All conditions of the insurance are satisfied. The Fund may refuse payment of a claim on the basis of fraud or misrepresentation or material error or omission with respect to any claim, notwithstanding the issuance of an insurance certificate by the Fund. Deficiency Judgement. The right of the Fund to pursue the borrower for deficiency or loss shall exist in every case to the extent allowed by law, and may be enforced at the discretion of the Fund. Transfer of Property. The Fund shall be notified in advance of any transfer of the property, subject to the mortgage, indicating the identity of the purchaser. When the Fund is so notified, further approval of the Fund is not required if the original mortgagor remains liable. If the original mortgagor is to be released from liability, the assumption shall be underwritten by the mortgagee on the basis of the credit of the assumptor, with the underwriting being satisfactory to the Fund, and written approval of the Fund is required. The Fund's coverage is not impaired by reason of a transfer in violation of covenants of the mortgage, unless the mortgagee had actual advance knowledge of the transfer. Assignments. The sale by an insured lender of a Fund-insured mortgage does not impair coverage if the terms of the mortgage loan are not changed, and if the Fund has been advised of: The date of the sale; The name and address of the assignee; The name of the borrower; The certificate or policy number of the loan to be sold; and Whether servicing is to be transferred or retained. Loan Modification. A loan modification or refinancing of an existing insured mortgage requires Fund review and approval for continued mortgage insurance coverage.