prescribed in this section, he may, in his discretion, extend the time within which a claim must be made, provided that in computing the claim no interest will be allowed for the period of such extension. (e) Claim amount. An insured will be reimbursed for its losses on loans made in accordance with the regulations in this part up to the amount of its reserve as established by § 201.12. The amount of reimbursement is determined by adding the items in paragraphs (e) (1), (2), (3) and (4) as follows: (1) 90 percent of the net unpaid amount of the loan actually made or the actual purchase price of the note, whichever is the lesser. (2) 90 percent of the uncollected interest earned up to the date of default plus 90 percent of the interest, computed at 7 percent per annum on the outstanding balance, computed from the date of default to: (i) The date of the claim application or for a period of 9 months and 31 days following such default date, whichever is the lesser, or (ii) The date of certification of the claim for payment, in a case where an otherwise eligible claim has been held in suspense by the Commissioner pending a determination of the eligibility for insurance, of other claims or loans, or by an investigation of the insured's loan or claim activities. (3) Uncollected court costs, including fees paid for issuing, serving, and filing summons. (4) Attorney's fees actually paid not exceeding: (i) Twenty-five percent of the amount collected by the attorney on the defaulted note, if the borrower is liable for the payment of such fee under the laws of the jurisdiction applicable to the note, and if the insured has not waived its claim against the borrower for such fees. (ii) $50 or 15 percent of the balance due on the note, whichever is the lesser, if a judgment is secured by suit. (iii) $25 for expenses in recording assignments of security to the United States. (f) Assignment of documents. The note and any security held or judg ment taken must be assigned in its entirety and if any claim has been filed in bankruptcy, insolvency, or probate proceedings, such claim shall likewise be assigned to the United States of America. (g) Form of assignment. The following forms of assignment properly dated shall be used in assigning a note, judgment, real estate mortgage, deed of trust, or any other security device in event of claim: All rights, title, and interest of the undersigned is hereby assigned (without warranty, except that the note qualifies for insurance) to the United States of America. By TitleDate (Financial institution) NOTE.-If this form is not valid or generally accepted in the jurisdiction involved, a form which is valid and generally acceptable shall be used. (h) Recordation. Where security has been taken or a proof of claim filed, the insured shall place on record an assignment to the United States of America of said security or proof of claim prior to filing claim for insurance benefits. § 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 ac counts of the insured as they pertain to the loans reported for insurance. § 201.1695 Amendments. After consultation with the Secretary of the Interior, the regulations in this subpart may be amended by the Commissioner at any time, but such amendment shall not adversely affect the insurance privileges of an insured with respect to any loan previously made or in the process of being made. Unless otherwise provided, an amendment shall be applicable to any loan or the refinancing of any loan, when the loan or note is made pursuant to an application dated on or after the effective date of such amendment. Sec. 203.269 Pro rata payment of initial MIP. 203.275 Amount of annual MIP. 203.276 Due date of annual MIP. 203.278 Pro rata payment of annual MIP. 203.406 Maturity of debentures. 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. 203.498 Applicability to outstanding mortgages and commitments. 203.499 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 title I, section 8 of the act, and all references to the Mutual Mortgage Insurance Fund shall be construed to refer to the General Insurance Fund. § 202a.255 Due date of initial MIP. The initial MIP shall be paid on the date on which the insurance becomes effective by endorsement. § 202a.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 Commissioner 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 § 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. 30-053 078 - 25 203.50 Definitions. 203.51 Eligible lenders. 203.52 Withdrawal of approval. 203.53 Financial statements. 203.54 Loan servicing. 203.55 Form of application. 203.60 Application and commitment extension fees. 203.61 Issuance of commitment. 203.62 Note and security form. 203.71 Loan amortization period. 203.80 Payment of insurance premiums or Sec. 203.257 Contract created by Mortgage Insurance Certificate or by endorsement. 203.258 Assumption with or without release of mortgagor. MORTGAGE INSURANCE PREMIUMS-IN 203.260 Method of payment of MIP. INITIAL MORTGAGE INSURANCE PREMIUM 203.265 Amount of initial MIP. 203.266 Due date of initial MIP. 203.267 Period covered by initial MIP. 203.268 Adjustment of initial MIP. 203.269 Pro rata payment of initial MIP. ANNUAL MORTGAGE INSURANCE PREMIUM 203.275 203.276 Due date of annual MIP. 203.277 Duration of annual MIP. 203.278 Pro rata payment of annual MIP. 203.279 MIP in Federally impacted areas. ADJUSTED MORTGAGE INSURANCE PREMIUM 203.288 Discontinuance of adjusted premium charge. VOLUNTARY TERMINATION 203.295 Voluntary termination. OPEN-END INSURANCE CHARGE 203.305 Open-end advance subject to open end charge. 203.306 Method of payment of open-end charge. 203.307 Calculation, amount and due date of open-end charge. 203.308 Duration of open-end charge. 203.309 Pro rata payment of open-end charge. TERMINATION OF INSURANCE CONTRACT 203.315 Termination by conveyance to other than Commissioner. 203.316 Termination by prepayment of Sec. 203.389 Waived title objections. Sec. 203.390 Waiver of title-mortgages or property formerly held by the Secretary. 203.391 Title objection waiver with reduced insurance benefits. PAYMENT OF INSURANCE BENEFITS 203.400 Method of payment. 203.401 Amount of payment-conveyed properties. 203.402 Items included in payment-conveyed properties. 203.402a Reimbursement for uncollected interest. 203.403 Items deducted from payment-conveyed properties. 203.404 Amount of payment-assigned mortgages. 203.405 Debenture interest rate. 203.406 Maturity of debentures. 203.407 Registration of debentures. 203.408 Denomination of debentures. 203.409 Redemption of debentures. 203.410 Issue date of debentures. 203.411 Cash adjustment. CERTIFICATE OF CLAIM 203.415 Delivery of certificate of claim. 203.416 Amount of items of certificate of claim. 203.417 Rate of interest of certificate of claim. MUTUAL MORTGAGE INSURANCE FUND AND 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. 203.426 Inapplicability to housing in older declining urban areas. SALE, ASSIGNMENT AND PLEDGE OF INSURED MORTGAGE 203.430 Sale of interests in insured mortgages. 203.431 Sale of insured mortgage to approved mortgagee. 203.432 Effect of sale of insured mortgage. 203.433 Assignments, pledges and transfers by approved mortgagee. 203.434 Declaration of trust. 203.435 Transfers of partial interests. 203.436 Claim procedure-graduated payment mortgages. |