tion authorizing the establishment and maintenance of a Tax and Insurance Account. The instruments used in granting an extension shall provide for monthly installments based upon the rate of interest applicable to the original obligation. Regardless of the rate of interest stipulated in the extension instrument, the Corporation will accept interest at the rate provided in the original obligation or at such lower rate as may, from time to time, be acceptable to the Corporation.

§ 184.3 Interest rate on home owners' indebtedness. Interest at the rate of 42 percent, as heretofore accepted on payments becoming due after October 16, 1939, shall continue until further notice to be accepted on the indebtedness of a home owner to Home Owners' Loan Corporation, arising from a loan advance or sale of property, which carries an interest rate of 5 percent or 6 percent.

§ 184.4 Payment in full of money accounts due Corporation. Payment in full of any money account due the Corporation may be made at any time. Such payment in full may be accomplished through an escrow agent selected by the debtor and acceptable to the Corporation at the exclusive cost and expense of the debtor or other person paying the debt.

§ 184.5 Assignment of indebtedness due Corporation. The assignment of any indebtedness due the Corporation may be authorized whenever the General Manager determines that such assignment is in the best interests of the Corporation. Assignments of indebtedness, when made, shall be: (a) Without recourse to or on Home Owners' Loan Cor

poration; (b) subject to the right of persons liable to pay any mortgage, bond or note indebtedness to the Corporation, to discharge the said mortgage, bond or note indebtedness with bonds of the Corporation at their face value; (c) subject to the requirement that interest on the indebtedness shall not be charged at a rate greater than the rate of interest being accepted by the Corporation on its mortgage, bond or note indebtedness at the time of the assignment.

§ 184.6 Sale or other disposition of real or personal property. The Corporation shall dispose of all real property, including personal property incident to or related to the use and enjoyment of such real property as rapidly and upon such terms as are consistent with the best interests of the Corporation at public or private sale. Personal property not affixed to a particular property shall be sold for cash only. Real estate, including personal property affixed thereto, may be sold either for cash or on terms. Any unpaid portion of the purchase price in a sale on terms may be secured by a note, bond, mortgage, deed of trust, trust deed, installment contract, lease with option to purchase or other security instrument legally appropriate for use in the jurisdiction wherein the real property is situate. In sales on terms, all sums payable to the Corporation under any security instrument or instruments shall be payable in monthly installments from the commencement of the unpaid obligation over a term ending not later than June 12, 1961, and shall bear interest at the rate of 42 percent on unpaid balances.

Subpart C-Statements of Policy and
Interpretation

200.25 Title I insurance.

200.26 Mortgage insurance, section 203. 200.27 Mortgage insurance, section 207.

AUTHORITY: §§ 200.1 to 200.27 issued under sec. 2, 48 Stat. 1246, as amended; 12 U. S. C. and Sup., 1703.

SOURCE: $200.1 to 200.27 appear at 11 F. R. 177A-882, except as noted following sections affected. Redesignated at 13 F. R. 6443 and 8260.

SUBPART A-OFFICIAL RECORDS

$ 200.1 Official records. (a) Except to the extent that there is involved any function of the United States requiring secrecy in the public interest or any matter relating solely to the internal management of the Federal Housing Administration, matters of official record of the Federal Housing Administration, not held confidential for good cause, shall be available for the inspection of persons properly and directly concerned upon application by such persons to the insuring office having jurisdiction or to the central office, Washington, D. C.

(b) The following are identified as official records:

Title I Loan Report.

Title I Refinancing Report.

Title I Reconcilement Statement.
Title I Transfer of Note Report.

The Borrower's Application for a Title I Loan, the original note, Completion Certificate, and other exhibits furnished to the lending institution by the borrower, become a part of the official records of the Federal Housing Administration only in the event a claim is filed for payment under the contract of insurance.

Mortgagee's Application for Insurance, together with the exhibits attached thereto. Commitment for Insurance.

Contract of Insurance (Section 207). Compliance Inspection Reports. Mortgagee's Assurance of Completion. Consent to Substitution of Mortgagors. Notice of Transfer by Transferor and Transferee.

Report of Prepayment.

Notice of Default.

Application for Debentures and Certificate of Claim.

Lender's Application for Insurance (Section 609).

Commitment for Insurance (Section 609). Contract of Insurance (Section 609).

(c) These records pertain to contracts of insurance between the lending institution and the Federal Housing Administration and are confidential as to all persons other than the contracting parties. [11 F. R. 177A-882, as amended at 12 F. R. 5848]

SUBPART B-FEDERAL HOUSING ADMINISTRATION PROCEDURE

§ 200.2 Approval of financial institutions. To obtain approval as a lending institution under Title I or as a mortgagee under Titles II and VI of the National Housing Act, the following procedures are to be observed:

(a) Approval of lending institutions (Title I, National Housing Act)—(1) Application for approval. Any lending institution may submit its application for determination of its qualifications to the satisfaction of the Commissioner.

(2) Form FH 21. The applicant will use Form FH 21, Title I "Contract of Insurance Application", obtained from the nearest FHA insuring office and when completely executed, one copy should be submitted to the insuring office for transmission to the FHA, Washington, D. C. The application is designed to identify the particular lending institution; its legal existence; supervision, if any, by acceptable Federal or State regulatory or supervisory departments; indicate the geographical or trading area of the applicant contemplated for the handling of Title I loans, and the existence or proposed establishment of adequate facilities and ability properly to conduct its credit and collection aspects in that territory; a statement of the type and nature of Title I business applicant proposes to follow; an analysis of loans made