24 CFR 206.107 - Mortgagee election of assignment or shared premium option.

§ 206.107 Mortgagee election of assignment or shared premium option.
(a) Election of option. Before the mortgage is submitted for insurance endorsement, the mortgagee shall elect either the assignment option or the shared premium option.
(1) Under the assignment option, the mortgagee shall have the option of assigning the mortgage to the Secretary if the mortgage balance is equal to or greater than 98 percent of the maximum claim amount, or the mortgagor has requested a payment which exceeds the difference between the maximum claim amount and the mortgage balance and:
(i) The mortgagee is current in making the required payments under the mortgage to the mortgagor;
(ii) The mortgagee is current in its payment of the MIP (and late charges and interest on the MIP, if any) to the Secretary;
(iii) The mortgage is not due and payable under § 206.27(c)(1); and
(iv) The mortgagee has not informed the Secretary of an event described in § 206.27(c)(2), or the Secretary has been so informed but has denied approval for the mortgage to be due and payable. At the mortgagee's option, the mortgagee may forgo assignment of the mortgage and file a claim under any of the circumstances described in § 206.123(a)(2)-(5).
(v) The mortgage is a first lien of record and title to the property securing the mortgage is good and marketable. The provisions of § 203.353 of this chapter pertaining to mortgagee certifications, § 203.387 of this chapter pertaining to title evidence, and § 203.389 of this chapter pertaining to waived title objections also apply.
(2) Under the shared premium option, the mortgagee may not assign a mortgage to the Secretary unless the mortgagee fails to make payments and the Secretary demands assignment (§ 206.123(a)(2)), but the mortgagee shall only be required to remit a reduced monthly MIP to the Secretary. The mortgagee shall collect from the mortgagor the full amount of the monthly MIP provided in § 206.105(b) but shall retain a portion of the monthly MIP paid by the mortgagor as compensation for the default risk assumed by the mortgagee. The portion of the MIP to be retained by a mortgagee shall be determined by the Secretary as calculated in § 206.109. For a particular mortgage, the applicable portion shall be determined as of the date of the commitment. The mortgagee retains the right to file a claim under any of the circumstances described in § 206.123(a)(2)-(5).
(b) No election for shared appreciation. Shared appreciation mortgages shall be insured by the Secretary only under the shared premium option.
[54 FR 24833, June 9, 1989, as amended at 60 FR 42761, Aug. 16, 1995]

Title 24 published on 2014-04-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

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United States Code
U.S. Code: Title 12 - BANKS AND BANKING

§ 1715b - Rules and regulations

§ 1715z - Homeownership or membership in cooperative association for lower income families

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1715z–1a - Assistance for troubled multifamily housing projects

12 U.S. Code § 1715z–1b - Tenant participation in multifamily housing projects

12 U.S. Code § 1715z–1c - Regulation of rents in insured projects

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1715z–4a - Double damages remedy for unauthorized use of multifamily housing project assets and income

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1715z–11a - Disposition of HUD-owned properties

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1715z–13a - Loan guarantees for Indian housing

12 U.S. Code § 1715z–13b - Loan guarantees for Native Hawaiian housing

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1715z–22a - Definitions

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1716 - Declaration of purposes of subchapter

12 U.S. Code § 1701i, 1701i–1 - Omitted

§ 1716b - Partition of Federal National Mortgage Association into Federal National Mortgage Association and Government National Mortgage Association; assets and liabilities; operations

§ 1717 - Federal National Mortgage Association and Government National Mortgage Association

§ 1717a - Prohibition against sale of obligations by Federal departments and agencies after June 30, 1966, without compliance with requirements of

§ 1718 - Capitalization of Federal National Mortgage Association

§ 1719 - Secondary market operations

§ 1720 - Repealed.

U.S. Code: Title 42 - THE PUBLIC HEALTH AND WELFARE