PURCHASE OF FEE SIMPLE TITLE SUBCHAPTER P-PURCHASE OF FEE SIMPLE TITLE PART 240-MORTGAGE INSURANCE ON LOANS FOR TITLE PURCHASE (b) For the purposes of this subpart, all references in §§ 203.50 et seq. of this chapter to: (1) Section 203 (k) of the Act shall be construed to refer to section 240 of the Act. (2) Sections 203.50 et seq. of this Subpart A-Eligibility Requirements chapter shall be construed to refer to this subpart. § 240.5 Maximum loan amounts. The loan shall not exceed: (a) The cost of purchasing the fee simple title or $10,000 per family unit, whichever is the lesser; or (b) An amount which when added to any outstanding indebtedness related to the property, as determined by the Commissioner, creates a total outstanding indebtedness which does not exceed the limits prescribed in §§ 203.18 (a) (1), 203.18(b), or 203.18 (c) of this chapter, as applicable. PURCHASE OF FEE SIMPLE TITLE Subpart B-Contract Rights and Ob- § 240.251 Incorporation by reference. ligations Sec. 240.251 Incorporation by reference. AUTHORITY: The provisions of this Part 240 issued under sec. 211, 52 Stat. 23, as amended, sec. 240, 82 Stat. 476, as amended; 12 U.S.C. 1715b, (a) All of the provisions of §§ 203.440 et seq. of this chapter covering insured home improvement loans under section 203 (k) of the Act shall apply to loans for the purchase of the fee simple title to property which are insured under section 240 of the Act. (b) In addition to the provisions of paragraph (a) of this section, the definitions contained in § 203.50 of this chapter shall apply to this subpart. Added: August 1, 1968 603.290 603.285 Insurance benefits-conveyed properties-foreclosure costs. Debenture interest rate. 603.295 Maturity of debentures. 603.300 Applicability to outstanding mortgages and commitments. AUTHORITY: The provisions of this Part 603 issued under secs. 603, 607, 55 Stat. 56, as amended, 61, as amended; 12 U.S.C. 1738, 1742. § 603.251 Incorporation by reference. (a) All of the provisions of Subpart B, Part 203 of this chapter covering mortgages insured under section 203 of the National Housing Act apply to mortgages covering individual homes in connection with war housing insurance under section 603 of the National Housing Act, except: 203.499 Distribution of distributive shares. Maximum amount of distributive shares. Finality of determination. Applicability to outstanding mort gages and commitments. Effective date. (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 603 of the act, and all references to the Mutual Mortgage Insurance Fund shall be construed to refer to the General Insurance Fund. § 603.255 Due date of initial MIP. The initial MIP shall be paid on the date on which the insurance becomes effective by endorsement. § 603.260 Adjustment of initial MIP. Regardless of whether the period covered by the MIP is more or less than 1 year, a payment shall be made to the Comissioner on account of the initial MIP which payment shall be in an amount equal to one-half percent of the average outstanding principal obligation for the first year of amortization 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. |