§ 227.30 Eligible mortgagors. In order to be eligible for mortgage insurance under this subpart, the mortgage shall be executed by a mortgagor approved by the Commissioner. § 227.35 Maximum mortgage amounts— Multifamily Rental Project. A mortgage on a Multifamily Rental Project may involve a principal obligation not in excess of the lesser of the following: (a) 90 percent of the standard value; (b) For such part of the property or project attributable to dwelling use, an amount per family unit, depending on the number of bedrooms, which may be: (1) $9,000 without a bedroom. (4) $18,500 with three or more bedrooms. [36 FR 24611, Dec. 22, 1971, as amended at 39 FR 32436, Sept. 6, 1974] § 227.40 Maximum mortgage amountsMultifamily Sales Projects. A mortgage on a Multifamily Sales Project may involve a principal obligation not in excess of a sum computed on the basis of a separate mortgage for each single-family dwelling comprising the project, equal to the total of each of the maximum principal obligations of such mortgages which would meet the requirements of section 203(b)(2) of the Act if the mortgagor were the owner and occupant who had made any required payment on account of the property described in such section of the Act; provided that special escrow arrangements, satisfactory to the Commissioner, are made by the mortgagor with respect to mortgage proceeds in excess of 90 percent of the estimated value. [39 FR 32436, Sept. 6, 1974] § 227.45 Increased mortgage amountshigh cost areas. (a) In any geographical area where the Commissioner finds cost levels so require, the Commissioner may increase, by not to exceed 45 percent the dollar amount limitations set forth in § 227.35(b). (b) If the Commissioner finds that because of high costs in Alaska, Guam, or Hawaii it is not feasible to construct dwellings without the sacrifice of sound standards of construction, design, and livability within the limitations of maximum mortgage amounts provided in this section, the principal obligation of mortgages may be increased in such amounts as may be necessary to compensate for such costs, but not to exceed, in any event, the maximum including high cost area increases, if any, otherwise applicable by more than one-half thereof. [36 FR 24611, Dec. 22, 1971, as amended at 39 FR 32436, Sept. 6, 1974] § 227.47 Loans to cover 2-year operating loss. (a) Operating loss determination. When the Commissioner determines that an operating loss has occurred during the first 2 years following completion of the project, he may, in his discretion, accept for insurance under this part, a loan to cover such loss. For the purposes of this section, an operating loss shall occur when the Commissioner determines that the total of the taxes, interest on the mortgage debt, mortgage insurance premiums, hazard insurance premiums, and the expense of maintenance and operation of the project (excluding depreciation) exceeds the project income. (b) Security instrument. The loan shall be secured by an instrument in a form approved by the Commissioner for use in the jurisdiction in which the project is located. (c) Maximum interest rate. The loan may bear interest at such rate as may be agreed upon by the mortgagee and mortgagor, but in no case shall such rate exceed the rate in effect under § 207.7 of this chapter on the date the commitment is issued. Interest shall be payable in monthly installments on the principal then outstanding. (d) Maturity. The loan shall be limited to a term not exceeding the unexpired term of the original mortgage. § 227.50 Mortgage release provisions. A mortgage executed by a mortgagor of a Multifamily Sales Project shall provide that at any time after five years from the date the project became available for initial occupancy or at such earlier date as the Commissioner may authorize, the property underlying such mortgage may be released, in whole or in part, upon payment of the unpaid balance of the blanket mortgage allocable to the property released. Where the mortgage does not contain release provisions, no property shall, except with the consent of the Commissioner, be released from the lien thereof so long as the mortgage insurance is in force. § 227.55 Cost certification. All of the provisions of §§ 207.25 through 207.30 of this chapter shall be applicable to a Multifamily Rental Project, but such provisions shall not be applicable to a Multifamily Sales Project. Subpart B-Contract Rights and Obligations-Projects § 227.251 Cross-reference-Multifamily, Sales or Rental Project. (a) All of the provisions of Subpart B, Part 207 of this chapter covering mortgages insured under section 207 of the National Housing Act apply to Multifamily, Sales, or Rental Project mortgages insured under section 810 of the National Housing Act. (b) For the purposes of this part, all references in Part 207 of this chapter to section 207 of the Act shall be construed to refer to section 810 of the Act. [36 FR 24611, Dec. 22, 1971, as amended at 37 FR 8663, Apr. 29, 1972] Mortgages insured under this subpart except the following provisions: Sec. 203.17 Mortgage provisions. 203.18 Maximum mortgage amount. 203.18a Solar energy systems. 203.18b Increased mortgage amount. 203.19 Mortgagor's minimum investment. 203.28 Economic soundness of project. 203.29 Eligible mortgages in Alaska, Guam or Hawaii. 203.40 Location of property. 203.42 Rental properties. 203.43 Eligibility of miscellaneous type mortgages. 203.43a Eligibility of housing in declining urban areas. 203.43h Eligibility of mortgages on Indian land insured pursuant to section 248 of the National Housing Act. 203.431 Eligibility of mortgages on Hawaiian home lands insured pursuant to section 247 of the National Housing Act. 203.50 Eligibility of rehabilitation loans. 203.51 Negotiated interest rate. (2) For the purposes of this subpart all references in Part 203 of this chapter to section 203 of the Act shall be construed to refer to section 810 of such Act. [36 FR 24611, Dec. 22, 1971, as amended at 45 FR 76389, Nov. 18, 1980; 47 FR 16779, Apr. 20, 1982; 51 FR 21875, June 16, 1986; 52 FR 8070, Mar. 16, 1987] EFFECTIVE DATE NOTE: At 52 FR 8070, Mar. 16, 1987, § 227.501 was amended by adding § 203.431 to the list of excepted provisions appearing in paragraph (b). The Department must complete a number of administrative actions before this rule can be made effective. These actions include execution of an agreement with the Department of Hawaiian Home Lands (references herein), preparation of the note and mortgage instruments and issuance of processing instructions. The rule will become effective on a date to be published in a notice in the Federal Register. § 227.505 Definitions of terms as used in this subpart. As used in this subpart, the following terms will have the meaning indicated: (a) "Act" means the National Housing Act, as amended. (b) "Commissioner” means the Federal Housing Commissioner or his authorized representatives. (c) [Reserved] (d) "Mortgage" means a first mortgage on real estate, in fee simple, or on a leasehold (1) under a lease for not less than 99 years which is renewable; or (2) under a lease having a period of not less than 75 years to run from the date the mortgage is executed; or (3) under a lease executed by a governmental agency for the maximum term consistent with its legal authority, provided such lease has a period of not less than 50 years to run from the date the mortgage is executed; and the term "first mortgage" means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby. (e) "Insured mortgage" means a mortgage which has been insured by the issuance of a Mortgage Insurance Certificate or by the endorsement of the credit instrument by the Commissioner. (f) "Mortgagor" in the case of an Individual Mortgage means the original borrower under a mortgage and its successors and such of its assigns as are approved by the Commissioner. (g) "Mortgagee" means the original lender under a mortgage, its successors and such of its assigns as are approved by the Commissioner, and includes the holders of the credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee herein named. (h) "Individual Mortgage" means a mortgage covering an individual single-family dwelling which has been released from a Multifamily Sales Project mortgage. (i) "Maturity date" means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage. § 227.510 Preference in sale or rental. Priority in the sale or rental of dwellings covered by a mortgage insured under this subpart shall be given to the following classes of persons: (a) Military personnel; (b) Essential civilian employees of the Armed Services; (c) Employees of contractors for the Armed Services; (d) Essential personnel employed or assigned to duty at a research or development installation of the National Aeronautics and Space Administration or the U.S. Nuclear Regulatory Commission or employees of a contractor of such Administration or Commission who are employed at a research or development installation. § 227.515 Insurance risk and economic soundness. Any mortgage may be accepted for insurance under this subpart by the Commissioner without regard to any requirement that the property or project be economically sound or an acceptable risk. § 227.520 Reduced mortgage amountsleaseholds. In the event the mortgage is on a leasehold estate rather than on a fee simple holding, the value or replacement cost of the property on which the mortgage is based in the value or replacement cost of the property in fee simple reduced by an amount equal to the capitalized value of the ground rent. The mortgage amount shall be adjusted to the next lowest mortgage amount as stipulated in § 227.535 for individual mortgages. § 227.525 Eligible mortgages-form. (a) Form. The mortgage must be executed upon a form approved by the Commissioner for use in the jurisdiction in which the property covered by the mortgage is situated and must be a first lien upon property that conforms with property standards prescribed by the Commissioner. (b) Disbursement of mortgage proceeds. The entire principal amount of the mortgage must have been disbursed to the mortgagor or to his creditors for his account and with his consent. § 227.530 Eligible mortgagors. In order to be eligible for mortgage insurance under this subpart, the 203.420 Nature of Mutual Mortgage Insurance Fund. 203.421 Allocation of Mutual Mortgage Insurance Fund Income or Loss. 203.422 Right and liability under Mutual Mortgage Insurance Fund. 203.423 Distribution of distributive shares. 203.424 Maximum amount of distributive shares. 203.425 Finality of determination. 203.438 Mortgages on Indian land insured pursuant to section 248 of the National Housing Act. 203.439 Mortgages on Hawaiian home lands insured pursuant to section 247 of the National Housing Act. 203.440 et seq. Insured home improvement loans. (b) For the purposes of this subpart, all references in Part 203 of this chapter to section 203 of the act shall be construed to refer to section 810 of the act, and all references to the Mutual Mortgage Insurance Fund shall be construed to refer to the General Insurance Fund. [36 FR 24611, Dec. 22, 1971, as amended at 51 FR 21875, June 16, 1986; 52 FR 8070, Mar. 16, 1987] EFFECTIVE DATE NOTE: At 52 FR 8070, Mar. 16, 1987, § 227.751 was amended by adding § 203.439 to the list of excepted provisions appearing in paragraph (a). The Department must complete a number of administrative actions before this rule can be made effective. These actions include execution of an agreement with the Department of Hawaiian Home Lands (references herein), preparation of the note and mortgage instruments and issuance of processing instructions. The rule will become effective on a date to be published in a notice in the Federal Register. Subpart E-Servicing Responsibil ities-Individual Mortgages § 227.800 Cross-reference. All of the provisions of Subpart C, Part 203 of this chapter covering mortgages insured under section 203 of the National Housing Act apply to Individual Mortgages insured under section 810 of the National Housing Act, except §§ 203.664 and 203.665. [52 FR 8070, Mar. 16, 1987] EFFECTIVE DATE NOTE: Section 227.800 was revised at 52 FR 8070, Mar. 16, 1987. The Department must complete a number of administrative actions before this rule can be made effective. These actions include execution of an agreement with the Department of Hawaiian Home Lands (references herein), preparation of the note and mortgage instruments and issuance of processing instructions. The rule will become effective on a date to be published in a notice in the Federal Register. Section 227.800 remaining in effect until further notice is set forth below. § 227.800 Cross-reference. All of the provisions of Subpart C, Part 203 of this chapter concerning mortgages insured under section 203 of the National Housing Act apply to mortgages insured under section 810 of the National Housing Act, except § 203.664. [51 FR 21875, June 16, 1986] |