Housing loan programs; procedures and requirements

(a) The corporation shall establish procedures for: (1) The making of advance commitments to purchase and the purchasing of eligible loans, eligible improvement loans, or eligible project loans to be made by mortgage lenders by auction, invitation of lenders, or negotiation; and (2) Loan applications made through mortgage lenders to eligible borrowers or qualified sponsors. (b) The corporation shall establish standards and requirements for: (1) The allocation of loans to mortgage lenders; (2) The allocation of funds to purchase existing loans from mortgage lenders; (3) The making of advance commitments and allocation of funds to purchase eligible loans, eligible improvement loans, or eligible project loans from mortgage lenders; and (4) The participation by mortgage lenders as originators and processors of eligible loans, eligible improvement loans, or eligible project loans on behalf of the corporation. (c) The standards and requirements for the allocation of funds to mortgage lenders shall be adopted by the corporation and shall be designed to include the maximum number of qualified mortgage lenders as participants in the housing loan programs.