§31-18B-9. Housing development fund may contract with private
institutions to place and service loans or may
itself provide such servicing; increasing interest
rate and payment of a portion of interest to cover
cost of servicing.
(a) The housing development fund may contract with private
mortgage companies, savings and loan associations or banks to
provide for the placement, origination and servicing of the
mortgages described in this article or the housing development fund
may provide such servicing: Provided, That such institutions must
be licensed to do business in West Virginia and, in the case of a
savings and loan, or a bank, must be under the supervision of the
department of banking of this state as provided in chapter thirty- one-a of this code or must be a national bank or a federally
insured savings and loan. Such institutions shall follow the same
restrictions as the housing development fund, and shall act only as
the agent for such.
(b) Notwithstanding the maximum interest rate specified in
section six of this article, the housing development fund is
authorized to increase the interest rate, up to one half of one
percent over the rate provided in section six to pay the cost of
placing and servicing the mortgages.
(c) If the housing development fund so determines, one of the
points provided for in section six of this article may be paid to
the private mortgage company, bank or savings and loan to cover the expense of origination of the loan.