AGO says and titles may be transferred to gov't entities
Legal impediments in the operation of financing programs of the US Department of Housing and Urban Development in the CNMI have all been cleared after the Attorney General said a transfer of title can occur between local and federal governmental agencies.
The Attorney General’s opinion is expected to ease doubts regarding whether NMHC can actually enter a Memorandum Of Agreement with HUD in connection with its housing programs.
Attorney General Herbert D. Soll clarified the issue of whether NMHC is considered a person of the Northern Marianas descent in connection with Article XII of the CNMI Constitution.
An important part of the article stated that, “A transfer to mortgage by means of foreclosure on a mortgage is not an acquisition under this section if the mortgagee is a full service bank, Federal Agency or Governmental entity of the Commonwealth…”
The Attorney General stated that the plain meaning of the section is that a foreclosure transfer can occur to “governmental entities” of the Commonwealth, as it can to Federal Agencies such as HUD or even commercial banks.
NMHC is a “governmental entity” of the Commonwealth pursuant to 2 CMC 4411, which states, “There is in the Commonwealth government a public and corporate body known as the Mariana Islands Housing Authority.”
Mr. Soll noted that since MIHA is the predecessor agency to NMHC, and simply changed its names when Executive Order 94-3 became law, it naturally follows that the NMHC inherits MIHA’s status as a public and corporate body.
The Attorney General also added statutory support for the proposition that HUD could properly transfer a foreclosed mortgage to the NMHC.
Quoting 2 CMC 4466, the legislature established the following procedure: (a) To assure any federal mortgage insurer that provisions of the NMI. Constitution. Art. X11… will not prevent such insurer from transfer at a fair price by sale or other means title to any interest in real property… MIHA is hereby authorized and directed to act as a purchase of 1st resort of title to such interest…”
In ending his letter to the Representative Torres, the Attorney General said, “I believe this language makes it clear and should ease any concerns that HUD may have prior to signing the MOA next year. They would clearly be able to transfer foreclosed title to the NMHC, as such authority is expressly granted to the NMHC by both the Constitution and the Statutes of the Commonwealth.
Mr. Soll’s legal opinion was an answer to an inquiry from Representative William S. Torres. The lawmaker’s query essentially asked whether or not a US Department of Housing and Urban Development foreclosure could properly transfer to the Northern Marianas Housing Corporation.
Aside from clearing any doubts on the legality of a MOA between NMHC and HUD, the opinion of the Office of the Attorney General also allows loan underwriters like Fannie Mae and Freddie Mac to conduct its business in the Commonwealth.
