Section R20-4-309. Sale and Servicing of Loans -- A.R.S. §§ 6-451, 6-402

A.      The total dollar amount of loans and/or participating interest of loans sold in any calendar year shall not, without prior written approval of the Superintendent of Banks, exceed 20% of the total amount of all loans held by the association at the begin- ning of such calendar year.

B.       All loans and/or participating interest of loans sold shall be sold without recourse.

C.      If the loans or participating interests sold are to be serviced by the seller, no such loans shall be sold except under the terms of a service agreement contract form. A sample service agree- ment contract form, in blank, shall have been filed in advance

with an approval requested from the Superintendent of Banks. Any future changes in the approved form shall be handled in a similar manner.

D.      The selling association shall report to the Superintendent of Banks within 30 days of the date of any sale:

1.        Name and address of the purchaser.

2.        Gross amount of mortgage loans involved in sale.

3.        Amount of participation sold.

4.        Percentage of amount of sale to gross amount of loans involved in sale.

5.        Number of loans sold in whole or part.

6.        Service fee rate.

Historical Note

Former Rule 9. R20-4-309 recodified from R4-4-309 (Supp. 95-1).