(1) The Corporation shall establish the interest rate to be charged eligible borrowers for Qualified Mortgage Loans at the time of sale of the bonds based on market conditions and the best interest of the Corporation and the public. The interest rate established shall be no more than the interest rate on the bonds issued by the Corporation plus such arbitrage as is legally allowed without jeopardizing the Tax-Exempt status of the bonds. The difference between the interest rate on the bonds and the interest rate on the Qualified Mortgage Loans shall either be retained by the Corporation or be utilized by the Corporation for any legal purpose pursuant to the Act.

Terms Used In Florida Regulations 67-25.015

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
    (2) Flexible mortgage financing including but not limited to the use of graduated mortgage rates, variable rate mortgages and mortgage buy-downs is authorized so long as the use of such types of financing does not jeopardize the tax-exempt status of the bonds, does not violate any applicable laws, or does not result in an average interest cost that substantially deviates from the fixed interest rate established by the Corporation at the time of the sale of the bonds and is determined to serve an appropriate public purpose in light of market conditions at the time of sale of the bonds. The parameters of such financing shall be specifically set out in the program documents and by Corporation resolution for each bond issue.
Rulemaking Authority Florida Statutes § 420.507(12). Law Implemented 420.502, 420.507, 420.508, 420.509 FS. History-New 4-15-87, Formerly 9I-25.015, Amended 12-16-03.

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