(a) That neither he, nor anyone authorized to act for him, will refuse to sell or rent, after the making of a bona fide offer, or refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny the dwelling or property covered by the loan to any person because of race, color, religion, or national origin. (b) That any restrictive covenant on such property relating to race, color, religion, or national origin is recognized as being illegal and void and is hereby specifically disclaimed.

(c) That civil action for preventative relief may be brought by the Attorney General in any appropriate U.S. District Court against any person responsible for a violation of this certification. Amended: June 25, 1969

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

An application filed with respect to insurance of a loan on a two-, three-, or four-family dwelling, or a single-family dwelling which is one of a group of 5 or more single-family dwellings held by the same borrower, shall be accompanied by a contract in form satisfactory to the Commissioner signed by the proposed borrower agreeing that so long as the loan is insured by the Commissioner the borrower will not rent the housing or any part thereof covered by the loan for transient or hotel purposes, together with the borrower's certification under oath that the housing or any part thereof covered by the proposed loan will not be rented for transient or hotel purposes. For the purpose of $203.50 et seq. rental for transient or hotel purposes shall mean (a) rental for any period less than 30 days or (b) any rental if the occupants of the housing accommodations are provided customary hotel services such as room service for food and beverages, maid service, furnishing and laundering of linen, and bellboy service.

§ 203.94 Acceptable risk.

The loan transaction shall, in the opinion of the Commissioner, constitute an acceptable risk.

Amended. September 2, 1964

§ 203.95 Owner-occupancy in military service cases.

Any loan otherwise eli .c for insurance under the provisions of §§ 203.50 et seq., may be insured without regard to any requirement that the borrower be the occupant of the property at the time of insurance, where the Commissioner is satisfied that the inability of the borrower to occupy the property is by reason of his entry into military service subsequent to the filing of an application for insurance and the borrower expresses an intent (in such form as may be prescribed by the Commissioner), to occupy the property upon his discharge from military service.

§ 203.100

Charges and fees to lender from borrower.

The lender may collect from the borrower the following charges and fees: (a) Application fee. The application fee provided for in this subchapter.

(b) Originating and closing charge. (1) A charge to compensate the lender for expenses incurred in originating and closing the loan, the charge not to exceed $20 or one percent of the original principal amount of the loan, whichever is greater.

(2) A charge to compensate the lender for expenses incurred in originating and closing the loan, the charge not to exceed $50 or 22 percent of the original principal amount of the loan, whichever is greater, where the lender makes partial disbursements and inspections of the property during the period the improvements are being completed.

(3) The provisions of subparagraph (2) shall be applicable only to commitments issued pursuant to applications filed for insurance after October 31, 1962. Amended: December 21 1961; October 31 1962

§ 203.249 Effect of amendments.

The regulations in this subpart may be amended by the Commissioner at any time and from time to time, in whole or in part, but such amendment shall not adversely affect the interests of a mortgagee or lender under the contract of insurance on any mortgage or loan already insured and shall not adversely affect the interests of a mortgagee or lender on any mortgage or loan to be insured on which the Commissioner has made a commitment to insure.

Amended: August 1, 1968

(d) "Mortgage" means such a first lien upon real estate as is commonly given to secure advances on, or the unpaid purchase price of real estate under the laws of the jurisdiction where the real estate is situated, together with the credit instruments, if any, secured thereby.

(e) "Mortgagor" means the original borrower under a mortgage and his heirs, executors, administrators and assigns.

(f) "Mortgagee" means the original lender under a mortgage and its successors and such of its assigns as are approved by the Commissioner.

(g) [Revoked] March 15, 1962

(h) [Revoked] March 15, 1962

(1) "Insured mortgage" means a mortgage which has been insured as evidenced by the issuance of a Mortgage Insurance

Certificate or by the endorsement of the credit instrument for insurance by the Commissioner.

Amended: September 13, 1963

(j) "Contract of Insurance" means the agreement evidenced by the issuance of a Mortgage Insurance Certificate or by the endorsement of the Commissioner upon the credit instrument given in connection with an insured mortgage, incorporating by reference the regulations in this part and the applicable provisions of the Act.

Amended: September 13, 1963

(k) "MIP" means the mortgage insurance premium paid by the mortgagee to the Commissioner in consideration of the contract of insurance.

(1) "Adjusted mortgage insurance premium" means the premium paid by the mortgagee to the Commissioner in consideration of termination of the contract of insurance by reason of prepayment in full of the mortgage.

(m) "Termination charge" means the charge paid by the mortgagee to the Commissioner in consideration of terminating the contract of insurance pursuant to the joint request for such action made by the mortgagor and mortgagee.

(n) "Open-end advance" means an insured advance made by an approved mortgagee in connection with a previously insured mortgage, pursuant to an open-end provision in the mortgage. (0) "Open-end insurance charge" means the charge paid by the mortgagee to the Commissioner in consideration of the insurance of an open-end advance. of (p) "Beginning amortization" means the date one month prior to the date of the first monthly payment to principal and interest.

(q) "Maturity" means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage.

(r) "Debentures" means registered, transferable securities which are valid and binding obligations, issued in the name of the Mutual Mortgage Insurance Fund in accordance with the provisions