HB314 Alabama 2010 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Lesley Vance
Republican
Co-Sponsors: William E. Thigpen H. Mac Gipson
Session: Regular Session 2010
Title: Housing Finance Authority, authorized to service loans that are not secured by eligible housing units, Secs. 24-1A-2, 24-1A-5 am'd.
Summary: HB314 would authorize the Alabama Housing Finance Authority to service mortgage loans not secured by eligible housing units, expanding its authority beyond unit-based loans.
What This Bill Does
The bill amends Sections 24-1A-2 and 24-1A-5 to enable AHFA to service loans not secured by eligible housing units and to define related terms. It broadens AHFA’s powers to originate, service, securitize, foreclose on, and manage such loans, issue bonds, establish reserves, and administer related federal housing programs. It also solidifies AHFA as the sole issuer of mortgage credit certificates in Alabama. The act would take effect immediately after the Governor signs it.

Who It Affects
Alabama Housing Finance Authority (AHFA) by gaining authority to service non-eligible housing unit loans and expanding its financial and programmatic powers.
Mortgage lenders and borrowers in Alabama who deal with loans not tied to eligible housing units, who may engage with AHFA for servicing, financing, and related programs.

Key Provisions
Authorizes AHFA to service mortgage loans not secured by eligible housing units.
Amends Sections 24-1A-2 and 24-1A-5 to include new definitions and powers related to servicing non-eligible loans.
Defines terms such as 'eligible housing unit', 'mortgage loans', 'servicing qualified mortgage loans', and related concepts to support the new authority.
Gives AHFA broad powers to contract with lenders for origination and servicing, make loans to lenders, and secure those loans with mortgages or other securities.
Allows AHFA to foreclose, sell, or dispose of mortgaged or servicing-qualified property as needed to protect the authority and bondholders.
Permits AHFA to issue bonds, establish reserves, and mortgage or pledge assets to secure its debt, and to issue mortgage credit certificates.
Authorizes AHFA to administer federal housing programs and to acquire, hold, and dispose of property as part of its functions.
Makes AHFA the sole issuer of mortgage credit certificates in Alabama.
Immediate effectiveness: the act becomes effective immediately following the Governor’s approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Housing Finance Authority