§ 201.1685 Flood insurance.

No loans shall be made or refinanced for construction, rehabilitation, preservation or restoration of any structure located in an area that has been identified by the Secretary of Housig and Urban Development as an area having special flood hazards unless the community in which the area is situated is participating in the National Flood Insurance Program, and such insurance is obtained by the borrower. The amount of flood insurance required need not exceed the principal balance of the loan and need not be required beyond term of the loan.

§ 201.1690 Administrative reports and examination.

The Commissioner may at any time call upon an insured for such reports as the Commissioner may deem to be necessary in connection with the regulations in this subpart. The Commissioner may inspect the books or accounts of the insured as they pertain to the loans reported for insurance.

§ 201.1702 Definitions.

As used in the regulations in this subpart the term

(a) "Borrower" means an individual who is a mobile home owner and who applies for and received a loan for the improvement of a mobile home that is his principal residence which the borrower has occupied at least 90 days before applying for the Title I improvement loan.

(b) "Principal residence" means that place where the borrower expects to live at least nine (9) months of the year.

(c) "Mobile home owner" means a borrower who has title to at least onehalf (2) interest in the mobile home.

(d) "Mobile home" means a structure, transportable in one or more sec

The proceeds of a loan shall be used by a mobile home owner to finance alterations, repairs and improvements of a mobile home owned by the borrower which mobile home is the principal residence of the borrower. The proceeds shall be used solely for the purposes indicated. Alterations, repairs and improvements (including expandable or add-on modules) shall substantially protect or improve the basic livability or utility of the mobile home and must be commenced in reliance upon the credit facilities afforded by Title I of the Act. Moveable furniture, free-standing appliances, and other items not part of the structure of the mobile home, shall not be eligible for financing.

zation under the mortgage. If such payment is less than the minimum premium or more than the maximum premium prescribed by the act, the initial MIP shall be in such minimum amount and the amount of the second premium shall be adjusted accordingly. If such payment is within the limitations prescribed by the act, no adjustment shall be made and the amount of the payment shall be retained by the Commissioner as the initial MIP.

§ 202a.265 Amount of annual MIP.

After payment of the initial MIP and until the mortgage is paid in full or until an application for insurance benefits is received by the Commissioner or until the contract is otherwise terminated with the consent of the Commissioner, the mortgagee shall continue to pay annual MIP to the Commissioner. Annual MIP shall be paid on the anniversary date of the beginning of amortization. It shall be paid in an amount equal to one-half percent of the average outstanding principal obligation for the 12-month period following the date on which the premium becomes payable.

§ 202a.270 Pro rata adjustment of MIP upon prepayment.

Upon prepayment of the mortgage in full prior to maturity, the Commissioner shall refund to the mortgagee for the account of the mortgagor an amount equal to the pro rata portion of the current MIP theretofore paid which is applicable to the portion of the year subsequent to such payment, computed from the first day of the month following the month in which such prepayment occurs. No such refund shall be made in any case where the prepayment occurs in the twelfth month of the premium year.

§ 202a.275 Maturity of debentures.

Debentures shall mature 3 years after the first day of July following the maturity date of the mortgage.

Sec.

203.34 Credit standing.

203.36 Certificate and contract regarding use of dwelling for transient or hotel purposes.

ELIGIBLE PROPERTIES

203.37 Nature of title to realty.

203.38 Location of dwelling. 203.39 Standards for buildings. 203.40 Location of property. 203.42 Rental properties.

203.43 Eligibility of miscellaneous type mortgages.

203.43a Eligibility of mortgages covering housing in certain neighborhoods. 203.43b Eligibility of mortgages covering housing intended for seasonal occupancy. 203.43c Eligibility of mortgages involving a dwelling unit in a cooperative housing development.

203.43d Eligibility of mortgages in certain communities.

203.43e Eligibility of mortgages covering houses in Federally impacted areas. 203.44 Eligibility of open-end advances. 203.45 Eligibility of graduated payment mortgages.

203.46 Eligibility of modified graduated payment mortgages.

203.50 Eligibility of rehabilitation loans.

EFFECTIVE DATE

203.249 Effect of amendments.

Subpart B-Contract Rights and Obligations DEFINITIONS

203.251 Definitions.

ENDORSEMENT and ContRACT OF INSURANCE 203.255 Insurance of mortgage. 203.256 Insurance of open-end advance. 203.257 Contract created by Mortgage Insurance Certificate or by endorsement. 203.258 Assumption with or without release of mortgagor.

MORTGAGE INSURANCE PREMIUMS-IN GENERAL