26 1 (b) The Secretary is authorized to terminate any insur2 ance contract upon request by the mortgagor or borrower 3 and the mortgagee or lender. As a condition to terminating 4 the insurance, the Secretary is authorized in his discretion 5 to require the payment of a termination charge. 6 (c) The payments specified in subsections (a) and (b) 7 shall be payable by the mortgagee or the lender 8 either in cash or in debentures issued by the Secretary except 9 that the insurance premium for loans under title III shall be 10 paid only in cash. The debentures presented for such payment 11 shall represent obligations of the particular insurance fund 12 to which such insurance premium is to be credited, except 13 that debentures which are the obligations of the Mutual Mort14 gage Insurance Fund established under the National Housing 15 Act may be presented for credit either to that fund or to the 16 General Insurance Fund. 17 (d) (1) In the case of a mortgage insured under section 18 401 covering a single-family dwelling or a one-family unit 19 in a condominium where the mortgagor is a serviceman who at the time of insurance or assumption of the mortgage is the 21 owner of the property and either occupies the property or 22 certifies that his failure to do so is the result of his service 23 assignment, the mortgage insurance premiums fixed by the 2 2 2 2 24 Secretary shall not be payable by the mortgagee during the 25 period of ownership of the property involved. Such premiums 27 1 shall be paid not less frequently than once a year, upon re 2 quest of the Secretary, by the Secretary of Defense, the 3 Secretary of Transportation, or the Secretary of Commerce, 4 as the case may be, from the respective appropriations avail 5 able for pay and allowances of servicemen. (2) As used in this subsection (A) The term "serviceman" means a person to whom the Secretary of Defense, the Secretary of Transportation, or the Secretary of Commerce, as the case may be, has issued a certificate indicating that such person requires housing, is serving on active duty in the Armed Forces of the United States or in the United States National Oceanic and Atmospheric Administration and has served on active duty for more than two years, but a certificate shall not be issued to any person ordered to active duty for training purposes only. The Secretary of Defense, the Secretary of Transportation, and the Secretary of Commerce, respectively, are authorized to prescribe rules and regulations governing the issuance of such certificate and may withhold issuance of more than one such certificate to a serviceman when ever in his discretion issuance is not justified due to circumstances resulting from his service assignment. (B) The term "period of ownership" means the 28 1 period, for which mortgage insurance premiums are 2 รา 3 4 5 6 fixed, prior to the date that the Secretary of Defense, the Secretary of Transportation, or the Secretary of Commerce, as the case may be, furnishes the Secretary with a certification that such ownership (as defined by the Secretary) has terminated. 7 (3) Where a serviceman dies while on active duty in 8 the Armed Forces of the United States or in the United 9 States National Oceanic and Atmospheric Administration, 10 leaving a surviving widow as owner of the property, the 11 period of ownership shall extend for two years beyond the 12 date of the serviceman's death or until the date the widow 13 disposes of the property, whichever date occurs first. The 14 Secretary of Defense, the Secretary of Transportation, or the 15 Secretary of Commerce, as the case may be, shall notify 16 such widow promptly following the serviceman's death of 17 the additional costs to be borne by the mortgagor following 18 termination of the two-year period. 19 20 PROCESSING FEES AND SERVICE CHARGES SEC. 203. (a) The Secretary is authorized to charge 21 and collect from the mortgagee or lender such amounts as 22 he may deem reasonable for the processing of a mortgage 2 23 24 or loan insurance application and for the appraisal and in spection of the property or project to be covered by the 25 mortgage to be insured or for other services performed by 29 1 the Secretary. These fees and.charges shall be payable by the 2 mortgagee or lender in cash at such time as the Secretary 3 may require. 4 (b) The Secretary is authorized to include in any mort 5 gage or loan insured under this Act or in any loan made pay6 able to the Secretary a provision requiring the mortgagor or 7 borrower to pay a service charge to the Secretary in the 8 event the mortgage or loan is held by the Secretary. The 9 service charge shall not exceed the amount prescribed by the 10 Secretary for insurance premiums applicable to such mort11 gage or loan. 12 TITLE III-INSURANCE FOR PROPERTY IM 13 14 15 16 PROVEMENT, MOBILE HOME, AND HISTORIC STRUCTURE PRESERVATION LOANS TYPES OF LOANS SEC. 301. (a) The Secretary is authorized to insure 17 financial institutions against losses which they may sustain 18 as a result of making, advancing credit in connection with, or 19 purchasing property improvement loans, mobile home loans, 20 and historic structure preservation loans meeting the require21 ments of this title. 22 22 23 (b) The property improvement loan shall be for the purpose of financing alterations, repairs, and improvements 24 upon or in connection with existing structures or mobile 25 homes, and the building of new structures, upon urban, 30 1 suburban, or rural real property (including the restoration, 2 rehabilitation, rebuilding, and replacement of such improve3 ments which have been damaged or destroyed by earth4 quake, conflagration, tornado, hurricane, cyclone, flood, or 5 other catastrophe), by the owners thereof or by the lessees 6 of such real property or mobile homes under a lease expir7 ing not less than six months after the maturity of the 8 loan or advance of credit. Alterations, repairs, and im9 provements upon or in connection with existing structures may include the provision of fire safety equipment. As 11 used in this title, the term "fire safety equipment" means 10 12 any device or facility which is designed to reduce the risk 13 of personal injury or property damage resulting from fire 14 and is in conformity with such criteria and standards as shall 15 be prescribed by the Secretary. 16 (c) The mobile home loan shall be for the purpose of 17 financing the purchase of a mobile home to be used by the owner as his principal residence. 18 19 (d) The historic structure preservation loan shall be for 20 the purpose of financing the preservation of historic struc21 tures. As used in this title, the term "historic structures" 22 means residential structures which are registered in the Na23 tional Register of Historic Places or which are certified by 24 the Secretary of the Interior to conform to National Register 25 criteria; and the term "preservation" means restoration or |