24 CFR 206.133 - Termination of insurance contract.

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§ 206.133 Termination of insurance contract.

(a)Payment of the mortgage. The contract of insurance shall be terminated if the mortgage is paid in full.

(b)Acquisition of title.

(1) If the mortgagee or a party other than the mortgagee acquires title at a foreclosure sale, or the mortgagee acquires title by a deed in lieu of foreclosure, and the mortgagee notifies the Commissioner that a claim for the payment of the insurance benefits will not be presented, the contract of insurance shall be terminated.

(2) For HECMs with Case Numbers assigned on or after September 19, 2017, if the mortgagee or a party other than the mortgagee acquires title at a foreclosure sale or the mortgagee acquires title by a deed in lieu of foreclosure and a claim for the payment of the insurance benefits will be presented, the contract of insurance shall be terminated as of claim payment.

(c)Mortgagee fails to make payments. If the mortgagee fails to make the payments to the borrower as required under the mortgage, and does not reimburse the Commissioner or assign the mortgage to the Commissioner within 30 days from the demand by the Commissioner for reimbursement or assignment, the contract of insurance shall automatically terminate. The Commissioner may later reinstate the contract of insurance, which shall continue in force as if no termination had occurred, upon reimbursement with interest as provided in § 206.121. Upon reinstatement, the mortgagee shall be liable for all MIP which would have been due if no termination had occurred, including late charge and interest as provided in § 206.113.

(d)Notice of termination. The mortgagee shall give written notice to the Commissioner, or other notice acceptable to the Commissioner, within 15 days of the occurrence of an event under paragraphs (a) and (b) of this section. No contract of insurance shall be terminated under paragraphs (a) or (b) of this section unless such notice is given.

(e)Voluntary termination. The mortgagor and the mortgagee may jointly request the Commissioner to approve the voluntary termination of the mortgage insurance contract. Prior to approval, the Commissioner shall make certain that the borrower is aware of the consequences which could arise out of the voluntary termination of the contract of insurance. The mortgagee shall cancel the insurance endorsement on the Mortgage Insurance Certificate or Note upon receipt of notice from the Commissioner that the contract of insurance is terminated. Notwithstanding any provision in a mortgage instrument, there shall be no voluntary termination charge due the Commissioner on account of the voluntary termination of any mortgage insurance contract where the request for termination is received by the Commissioner.

(f)Effect of termination. When the insurance contract is terminated, all rights of the mortgagee shall terminate, including the right to file a claim for insurance benefits. All obligations of the Commissioner shall also cease immediately.

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.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.


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

§ 1715z-1 - Rental and cooperative housing for lower income families

§ 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 § 1715z–2 - Repealed. Pub. L. 110–289, div. B, title I, § 2120(a)(6), July 30, 2008, 122 Stat. 2835

12 U.S. Code § 1715z–3 - Special Risk Insurance Fund

12 U.S. Code § 1715z–4 - Modifications in terms of mortgages covering multifamily projects; requests for extensions to cure defaults or for modification of mortgage terms; regulations

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

12 U.S. Code § 1715z–5 - Purchase of fee simple title from lessors

12 U.S. Code § 1715z–6 - Supplemental loans for multifamily projects

12 U.S. Code § 1715z–7 - Mortgage insurance for hospitals

12 U.S. Code § 1715z–8 - Mortgage assistance payments for middle-income families

12 U.S. Code § 1715z–9 - Co-insurance of eligible mortgage, advance, or loan

12 U.S. Code § 1715z–10 - Repealed. Pub. L. 110–289, div. B, title I, § 2120(a)(7), July 30, 2008, 122 Stat. 2835

12 U.S. Code § 1715z–11 - Sale to cooperatives of multifamily housing projects acquired by Secretary; acceptance of purchase money mortgage for sale or insurance of mortgage;...amount of mortgage; expenditures for repairs, etc., prior to sale

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

12 U.S. Code § 1715z–12 - Single-family mortgage insurance on Hawaiian home lands

12 U.S. Code § 1715z–13 - Single family mortgage insurance on Indian reservations

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 § 1715z–14 - Risk-sharing demonstration

12 U.S. Code § 1715z–15 - Limitation on prepayment of mortgages on multifamily rental housing

12 U.S. Code § 1715z–16 - Adjustable rate single family mortgages

12 U.S. Code § 1715z–17 - Shared appreciation mortgages for single family housing

12 U.S. Code § 1715z–18 - Shared appreciation mortgages for multifamily housing

12 U.S. Code § 1715z–19 - Equity skimming penalty

12 U.S. Code § 1715z–20 - Insurance of home equity conversion mortgages for elderly homeowners

12 U.S. Code § 1715z–21 - Delegation of insuring authority to direct endorsement mortgagees

§ 1715b-20

12 U.S. Code § 1715z–22 - Multifamily mortgage credit programs

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

12 U.S. Code § 1715z–23 - HOPE for Homeowners Program

12 U.S. Code § 1715z–24 - Pilot program for automated process for borrowers without sufficient credit history

12 U.S. Code § 1715z–25 - Mortgage modification data collecting and reporting

§ 1716 - Declaration of purposes of subchapter

12 U.S. Code §§ 1716–1, 1716a - Repealed. Aug. 2, 1954, ch. 649, title II, § 206, 68 Stat. 622

§ 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 section 1717(c) of...title or without approval by Secretary of the Treasury; exemption

§ 1718 - Capitalization of Federal National Mortgage Association

§ 1719 - Secondary market operations

§ 1720 - Repealed. Pub. L. 98–181, title I [title IV, § 483(a)], Nov. 30, 1983, 97 Stat. 1240

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

Title 24 published on 09-Jun-2018 03:51

The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 24 CFR Part 206 after this date.

  • 2017-01-19; vol. 82 # 12 - Thursday, January 19, 2017
    1. 82 FR 7094 - Federal Housing Administration: Strengthening the Home Equity Conversion Mortgage Program
      GPO FDSys XML | Text
      DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, HUD, Office of the Assistant Secretary for Housing—Federal Housing Commissioner
      Final rule.
      Effective Date: September 19, 2017.
      24 CFR Parts 30 and 206
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