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| section_id ▼ | title_number | title_name | chapter | subchapter | part_number | part_name | subpart | subpart_name | section_number | section_heading | agency | authority | source_citation | amendment_citations | full_text |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 14:14:4.0.1.1.3.0.1.1 | 14 | Aeronautics and Space | II | A | 203 | PART 203—WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES | § 203.1 Scope. | FAA | [ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992] | This part requires that certain U.S. and foreign direct air carriers waive the passenger liability limits and certain carrier defenses in the Warsaw Convention in accordance with the provisions of Agreement 18900, dated May 13, 1966, and provides that acceptance of authority for, or operations by the carrier in, air transportation shall be considered to act as such a waiver by that carrier. | |||||
| 14:14:4.0.1.1.3.0.1.2 | 14 | Aeronautics and Space | II | A | 203 | PART 203—WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES | § 203.2 Applicability. | FAA | This part applies to all direct U.S. and foreign direct air carriers, except for air taxi operators as defined in part 298 of this chapter that (a) are not commuter air carriers, (b) do not participate in interline agreements, and (c) do not engage in foreign air transportation. | ||||||
| 14:14:4.0.1.1.3.0.1.3 | 14 | Aeronautics and Space | II | A | 203 | PART 203—WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES | § 203.3 Filing requirements for adherence to Montreal Convention. | FAA | [Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019] | All direct U.S. and foreign air carriers shall have and maintain in effect and on file in the Department's Docket Operations Office (DOT-OST-1995-236) on OST Form 4523 a signed counterpart to Agreement 18900, an agreement relating to liability limitations of the Warsaw Convention and Hague Protocol, (the Montreal Agreement), dated May 13, 1966, and/or a signed counterpart of any amendment or replacement to such Agreement that may be approved by the Department and to which the air carrier or foreign air carrier becomes a party. U.S. air taxi operators registering under part 298 of this chapter and Canadian charter air taxi operators registering under part 294 of this chapter may comply with this requirement by filing completed OST Forms 4507 and 4523, respectively, in accordance with the provisions of those parts. | |||||
| 14:14:4.0.1.1.3.0.1.4 | 14 | Aeronautics and Space | II | A | 203 | PART 203—WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES | § 203.4 Montreal Agreement as part of airline-passenger contract and conditions of carriage. | FAA | [ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by ER-1338, 48 FR 31013, July 6, 1983; Doc. No. 47939, 57 FR 40100, Sept. 2, 1992; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019] | (a) As required by the Montreal Agreement, carriers that are otherwise generally required to file tariffs shall file with the Department's Pricing and Multilateral Affairs Division a tariff that includes the provisions of the counterpart to Agreement 18900. (b) As further required by that Agreement, each participating carrier shall include the Agreement's terms as part of its conditions of carriage. The participating carrier shall give each of its passengers the notice required by the Montreal Agreement as provided in § 221.105 of this chapter. (c) Participation in the Montreal Agreement, whether by signing the Agreement, filing a signed counterpart to it under § 203.3, or by operation of law under § 203.5, shall constitute a special agreement between the carrier and its passengers as a condition of carriage that a liability limit of not less than $75,000 (U.S.) shall apply under Article 22(1) of the Warsaw Convention for passenger injury and death. Such participation also constitutes a waiver of the defense under Article 20(1) of the Convention that the carrier was not negligent. | |||||
| 14:14:4.0.1.1.3.0.1.5 | 14 | Aeronautics and Space | II | A | 203 | PART 203—WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES | § 203.5 Compliance as condition on operations in air transportation. | FAA | [ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992] | It shall be a condition on the authority of all direct U.S. and foreign carriers to operate in air transportation that they have and maintain in effect and on file with the Department a signed counterpart of Agreement 18900, and a tariff (for those carriers otherwise generally required to file tariffs) that includes its provisions, as required by this subpart. Notwithstanding any failure to file that counterpart and such tariff, any such air carrier or foreign air carrier issued license authority (including exemptions) by the Department or operating in air transportation shall be deemed to have agreed to the provisions of Agreement 18900 as fully as if that air carrier or foreign air carrier had in fact filed a properly executed counterpart to that Agreement and tariff. | |||||
| 17:17:3.0.1.1.4.1.17.1 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | A | Subpart A—In General | § 203.1 Application of the rules of this part. | SEC | The rules of this part apply only to investigations conducted by the Commission. They do not apply to adjudicative or rulemaking proceedings. | |||||
| 17:17:3.0.1.1.4.1.17.2 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | A | Subpart A—In General | § 203.2 Information obtained in investigations and examinations. | SEC | [58 FR 52419, Oct. 8, 1993, as amended at 59 FR 5945, Feb. 9, 1994; 73 FR 32227, June 5, 2008] | Information or documents obtained by the Commission in the course of any investigation or examination, unless made a matter of public record, shall be deemed non-public, but the Commission approves the practice whereby officials of the Divisions of Enforcement, Corporation Finance, Market Regulation and Investment Management and the Office of International Affairs at the level of Assistant Director or higher, and officials in Regional Offices at the level of Assistant Regional Director or higher, may engage in and may authorize members of the Commission's staff to engage in discussions with persons identified in § 240.24c-1(b) of this chapter concerning information obtained in individual investigations or examinations, including formal investigations conducted pursuant to Commission order. | ||||
| 17:17:3.0.1.1.4.1.17.3 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | A | Subpart A—In General | § 203.3 Suspension and disbarment. | SEC | [29 FR 3620, Mar. 21, 1964, as amended at 60 FR 32823, June 23, 1995] | The provisions of § 201.102(e) of this chapter (Rule 102(e) of the Commission's rules of practice) are hereby made specifically applicable to all investigations. | ||||
| 17:17:3.0.1.1.4.2.17.1 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | B | Subpart B—Formal Investigative Proceedings | § 203.4 Applicability of §§ 203.4 through 203.8. | SEC | (a) Sections 203.4 through 203.8 shall be applicable to a witness who is sworn in a proceeding pursuant to a Commission order for investigation or examination, such proceeding being hereinafter referred to as a formal investigative proceeding. (b) Formal investigative proceedings may be held before the Commission, before one or more of its members, or before any officer designated by it for the purpose of taking testimony of witnesses and received other evidence. The term officer conducting the investigation shall mean any of the foregoing. | |||||
| 17:17:3.0.1.1.4.2.17.2 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | B | Subpart B—Formal Investigative Proceedings | § 203.5 Non-public formal investigative proceedings. | SEC | Unless otherwise ordered by the Commission, all formal investigative proceedings shall be non-public. | |||||
| 17:17:3.0.1.1.4.2.17.3 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | B | Subpart B—Formal Investigative Proceedings | § 203.6 Transcripts. | SEC | [37 FR 25166, Nov. 28, 1972] | Transcripts, if any, of formal investigative proceedings shall be recorded solely by the official reporter, or by any other person or means designated by the officer conducting the investigation. A person who has submitted documentary evidence or testimony in a formal investigative proceeding shall be entitled, upon written request, to procure a copy of his documentary evidence or a transcript of his testimony on payment of the appropriate fees: Provided, however, That in a nonpublic formal investigative proceeding the Commission may for good cause deny such request. In any event, any witness, upon proper identification, shall have the right to inspect the official transcript of the witness' own testimony. | ||||
| 17:17:3.0.1.1.4.2.17.4 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | B | Subpart B—Formal Investigative Proceedings | § 203.7 Rights of witnesses. | SEC | [29 FR 3620, Mar. 21, 1964, as amended at 52 FR 12148, Apr. 15, 1987; 59 FR 5945, Feb. 9, 1994; 60 FR 32823, June 23, 1995; 73 FR 32227, June 5, 2008] | (a) Any person who is compelled or requested to furnish documentary evidence or testimony at a formal investigative proceeding shall, upon request, be shown the Commission's order of investigation. Copies of formal orders of investigation shall not be furnished, for their retention, to such persons requesting the same except with the express approval of officials in the Regional Offices at the level of Assistant Regional Director or higher, or officials in the Division or Divisions conducting or supervising the investigation at the level of Assistant Director or higher. Such approval shall not be given unless the person granting such approval, in his or her discretion, is satisfied that there exist reasons consistent both with the protection of privacy of persons involved in the investigation and with the unimpeded conduct of the investigation. (b) Any person compelled to appear, or who appears by request or permission of the Commission, in person at a formal investigative proceeding may be accompanied, represented and advised by counsel, as defined in § 201.101(a) of this chapter (Rule 101(a) of the Commission's rules of practice): Provided, however, That all witnesses shall be sequestered, and unless permitted in the discretion of the officer conducting the investigation no witness or the counsel accompanying any such witness shall be permitted to be present during the examination of any other witness called in such proceeding. (c) The right to be accompanied, represented and advised by counsel shall mean the right of a person testifying to have an attorney present with him during any formal investigative proceeding and to have this attorney (1) advise such person before, during and after the conclusion of such examination, (2) question such person briefly at the conclusion of the examination to clarify any of the answers such person has given, and (3) make summary notes during such examination solely for the use of such person. (d) Unless otherwise ordered by the Commission, in any public formal investiga… | ||||
| 17:17:3.0.1.1.4.2.17.5 | 17 | Commodity and Securities Exchanges | II | 203 | PART 203—RULES RELATING TO INVESTIGATIONS | B | Subpart B—Formal Investigative Proceedings | § 203.8 Service of subpoenas. | SEC | [29 FR 3620, Mar. 21, 1964, as amended at 60 FR 32823, June 23, 1995] | Service of subpoenas issued in formal investigative proceedings shall be effected in the manner prescribed by Rule 232(c) of the Commission's Rules of Practice, § 201.232(c) of this chapter. | ||||
| 20:20:1.0.2.8.4.0.155.1 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.1 Statutory provisions. | SSA | The term “employee” means (1) any individual in the service of one or more employers for compensation, (2) any individual who is in the employment relation to one or more employers, and (3) an employee representative. The term “employee” shall include an employee of a local lodge or division defined as an employer in sub-section (a) only if he was in the service of or in the employment relation to a carrier on or after the enactment date. The term “employee representative” means any officer or official representative of a railway labor organization other than a labor organization included in the term “employer” as defined in section 1(a) who before or after the enactment date was in the service of an employer as defined in section 1(a) and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act, as amended, and any individual who is regularly assigned to or regularly employed by such officer or official representative in connection with the duties of his office. The term “employee” shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple. An individual is in the service of an employer whether his service is rendered within or without the United States if (i) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or he is rendering professional or technical services and is integrated into the staff of the employer, or he is rendering, on the property used in the employer's operations, other personal services the rendition of which is integrated into the employer's operations, and (ii) he renders such service for compensation, or a method of computing the monthly compensation for such service is provided in section 3(c): Provided, however, That an individual … | ||||||
| 20:20:1.0.2.8.4.0.155.2 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.2 General definition of employee. | SSA | An individual shall be an employee whenever (a) he is engaged in performing compensated service for an employer or (b) he is in an employment relation to an employer, or (c) he is an employee representative, or (d) he is an officer of an employer. | ||||||
| 20:20:1.0.2.8.4.0.155.3 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.3 When an individual is performing service for an employer. | SSA | (a) The legal relationship of employer and employee is defined by the act. Thus, an individual is performing service for an employer if: (1) He is subject to the right of an employer, directly or through another, to supervise and direct the manner in which his services are rendered; or (2) In rendering professional or technical services he is integrated into the staff of the employer; or (3) He is rendering personal services on the property used in the operations of the employer and the services are integrated into those operations. (b) The provisions in paragraph (a) of this section are controlling irrespective of whether the service is performed on a part-time basis, and, with respect to paragraph (a)(1) of this section, irrespective of whether the right to supervise and direct is exercised. | ||||||
| 20:20:1.0.2.8.4.0.155.4 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.4 When service is compensated. | SSA | Service shall be “compensated” if it is performed for compensation, as that term is defined in part 222 of this chapter: Provided, however, That service prior to September 1941 of a station employee whose duties consisted of or included the carrying of passengers' hand baggage and otherwise assisting passengers at passenger stations shall be considered compensated service although the individual's remuneration was, in whole or in part, in the form of tips. (For the effect of compensation of less than $3.00 per month earned after December 31, 1936, for service to a local lodge or division of a railway-labor-organization employer, see part 222 of this chapter.) | ||||||
| 20:20:1.0.2.8.4.0.155.5 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.5 Service outside the United States. | SSA | (a) An individual shall not be an employee by reason of rendition of service to an employer other than a local lodge or division, or a general committee of a railway-labor-organization employer, not conducting the principal part of its business in the United States except while engaged in performing service for it in the United States. (b) An individual shall not be an employee by reason of rendition of service to a local lodge or division, unless: (1) All, or substantially all the individuals constituting the membership of such local lodge or division are employees of an employer conducting the principal part of its business in the United States; or (2) The headquarters of such local lodge or division is located in the United States. (c) An individual shall not be an employee by reason of rendition of service to a general committee of a railway-labor-organization employer, unless: (1) Such individual is representing a local lodge or division, all or substantially all of whose members are employees of an employer conducting the principal part of its business in the United States, or the headquarters of such local lodge or division is located in the United States; or (2) All or substantially all the individuals represented by such a general committee are employees of an employer conducting the principal part of its business in the United States; or (3) Such an individual acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer; Provided, however, That if the office or headquarters of such general chairman or assistant general chairman is not located within the United States he will not be an employee unless 10 percent or more of his remuneration for service as general chairman or assistant general chairman is creditable as compensation, the creditable compensation to be computed according to the proportion which the mileage in the United States under the jurisdiction of such general… | ||||||
| 20:20:1.0.2.8.4.0.155.6 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.6 Age, citizenship, and other factors. | SSA | [Board Order 55-89, 20 FR 3706, May 27, 1955] | The age, citizenship, or residence of an individual, or his designation as other than an “employee” shall not be controlling in determining whether or not such individual is an employee within the meaning of the act, except that an individual not a citizen or resident of the United States shall not be deemed to be in the service of an employer when rendering service outside the United States to an employer who is required by the laws of the place where the service is performed to employ, in whole or in part, citizens or residents thereof and the laws in force therein on August 29, 1935, shall be deemed to have been in force at all times prior to that date. | |||||
| 20:20:1.0.2.8.4.0.155.7 | 20 | Employees' Benefits | II | B | 203 | PART 203—EMPLOYEES UNDER THE ACT | § 203.7 Local lodge employee. | SSA | An individual who, prior to January 1, 1937, shall have rendered service to a local lodge or division of a railway labor organization included as an employer under section 1(a) of the act, shall be an employee with respect to such service to such local lodge or division only if he was on August 29, 1935, in the service of or in an employment relation to an employer which was a carrier. An individual who, subsequent to December 31, 1936, shall have rendered service to a local lodge or division of a railway labor organization included as an employer under section 1(a) of the act, shall be an employee with respect to such service to such local lodge or division only with respect to such service as was preceded by service, or an employment relation, on or after August 29, 1935, to an employer which was a carrier. (For the effect of compensation less than $3.00 per month earned after December 31, 1936, for service to a local lodge or division of a railway-labor-organization employer, see part 222 of this chapter.) | ||||||
| 21:21:4.0.1.1.4.1.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | A | Subpart A—General Provisions | § 203.1 Scope. | FDA | This part sets forth procedures and requirements pertaining to the reimportation and wholesale distribution of prescription drugs, including both bulk drug substances and finished dosage forms; the sale, purchase, or trade of (or the offer to sell, purchase, or trade) prescription drugs, including bulk drug substances, that were purchased by hospitals or health care entities, or donated to charitable organizations; and the distribution of prescription drug samples. Blood and blood components intended for transfusion are excluded from the restrictions in and the requirements of the Prescription Drug Marketing Act of 1987 and the Prescription Drug Amendments of 1992. | ||||
| 21:21:4.0.1.1.4.1.1.2 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | A | Subpart A—General Provisions | § 203.2 Purpose. | FDA | The purpose of this part is to implement the Prescription Drug Marketing Act of 1987 and the Prescription Drug Amendments of 1992, except for those sections relating to State licensing of wholesale distributors (see part 205 of this chapter), to protect the public health, and to protect the public against drug diversion by establishing procedures, requirements, and minimum standards for the distribution of prescription drugs and prescription drug samples. | ||||
| 21:21:4.0.1.1.4.1.1.3 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | A | Subpart A—General Provisions | § 203.3 Definitions. | FDA | [64 FR 67756, Dec. 3, 1999, as amended at 73 FR 59500, Oct. 9, 2008] | (a) The act means the Federal Food, Drug, and Cosmetic Act, as amended (21 U.S.C. 301 et seq. ). (b) Authorized distributor of record means a distributor with whom a manufacturer has established an ongoing relationship to distribute such manufacturer's products. (c) Blood means whole blood collected from a single donor and processed either for transfusion or further manufacturing. (d) Blood component means that part of a single-donor unit of blood separated by physical or mechanical means. (e) Bulk drug substance means any substance that is represented for use in a drug and that, when used in the manufacturing, processing, or packaging of a drug, becomes an active ingredient or a finished dosage form of the drug, but the term does not include intermediates used in the synthesis of such substances. (f) Charitable institution or charitable organization means a nonprofit hospital, health care entity, organization, institution, foundation, association, or corporation that has been granted an exemption under section 501(c)(3) of the Internal Revenue Code of 1954, as amended. (g) Common control means the power to direct or cause the direction of the management and policies of a person or an organization, whether by ownership of stock, voting rights, by contract, or otherwise. (h) Distribute means to sell, offer to sell, deliver, or offer to deliver a drug to a recipient, except that the term “distribute” does not include: (1) Delivering or offering to deliver a drug by a common carrier in the usual course of business as a common carrier; or (2) Providing of a drug sample to a patient by: (i) A practitioner licensed to prescribe such drug; (ii) A health care professional acting at the direction and under the supervision of such a practitioner; or (iii) The pharmacy of a hospital or of another health care entity that is acting at the direction of such a practitioner and that received such sample in accordance with the act and regulations. (i) Drug sample means a unit of a prescription dr… | |||
| 21:21:4.0.1.1.4.2.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | B | Subpart B—Reimportation | § 203.10 Restrictions on reimportation. | FDA | No prescription drug or drug composed wholly or partly of insulin that was manufactured in a State and exported from the United States may be reimported by anyone other than its manufacturer, except that FDA may grant permission to a person other than the manufacturer to reimport a prescription drug or insulin-containing drug if it determines that such reimportation is required for emergency medical care. | ||||
| 21:21:4.0.1.1.4.2.1.2 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | B | Subpart B—Reimportation | § 203.11 Applications for reimportation to provide emergency medical care. | FDA | [64 FR 67756, Dec. 3, 1999, as amended at 69 FR 17292, Apr. 2, 2004] | (a) Applications for reimportation for emergency medical care shall be submitted to the director of the FDA District Office in the district where reimportation is sought (addresses found in part 5, subpart M of this chapter). (b) Applications for reimportation to provide emergency medical care shall be reviewed and approved or disapproved by each district office. | |||
| 21:21:4.0.1.1.4.2.1.3 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | B | Subpart B—Reimportation | § 203.12 An appeal from an adverse decision by the district office. | FDA | [80 FR 18090, Apr. 3, 2015] | An appeal from an adverse decision by the district office involving insulin-containing drugs or human prescription drugs or biological products regulated by the Center for Drug Evaluation and Research may be made to the Office of Compliance, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002. An appeal from an adverse decision by the district office involving human prescription biological products regulated by the Center for Biologics Evaluation and Research may be made to the Food and Drug Administration, Center for Biologics Evaluation and Research, Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993-0002. | |||
| 21:21:4.0.1.1.4.3.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | C | Subpart C—Sales Restrictions | § 203.20 Sales restrictions. | FDA | Except as provided in § 203.22 or § 203.23, no person may sell, purchase, or trade, or offer to sell, purchase, or trade any prescription drug that was: (a) Purchased by a public or private hospital or other health care entity; or (b) Donated or supplied at a reduced price to a charitable organization. | ||||
| 21:21:4.0.1.1.4.3.1.2 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | C | Subpart C—Sales Restrictions | § 203.22 Exclusions. | FDA | [64 FR 67756, Dec. 3, 1999, as amended at 73 FR 59500, Oct. 9, 2008] | Section 203.20 does not apply to: (a) The purchase or other acquisition of a drug for its own use by a hospital or other health care entity that is a member of a group purchasing organization from the group purchasing organization or from other hospitals or health care entities that are members of the organization. (b) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug by a charitable organization to a nonprofit affiliate of the organization to the extent otherwise permitted by law. (c) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug among hospitals or other health care entities that are under common control. (d) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug for emergency medical reasons. (e) The sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug under a valid prescription. (f) The sale, purchase, or trade of a drug or the offer to sell, purchase, or trade a drug by hospitals or health care entities owned or operated by Federal, State, or local governmental units to other hospitals or health care entities owned or operated by Federal, State, or local governmental units. (g) The sale, purchase, or trade of, or the offer to sell, purchase, or trade blood or blood components intended for transfusion. (h) The sale, purchase, or trade of, or the offer to sell, purchase, or trade, by a registered blood establishment that qualifies as a health care entity any: (1) Drug indicated for a bleeding or clotting disorder, or anemia; (2) Blood collection container approved under section 505 of the act; or (3) Drug that is a blood derivative (or a recombinant or synthetic form of a blood derivative); as long as all of the health care services that the establishment provides are related to its activities as a registered blood establishment or the health care services consist of collecting, processing, storing, or administering human hematopoietic stem… | |||
| 21:21:4.0.1.1.4.3.1.3 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | C | Subpart C—Sales Restrictions | § 203.23 Returns. | FDA | The return of a prescription drug purchased by a hospital or health care entity or acquired at a reduced price by or donated to a charitable institution is exempt from the prohibitions in § 203.20, provided that: (a) The hospital, health care entity, or charitable institution documents the return by filling out a credit memo specifying: (1) The name and address of the hospital, health care entity, or charitable institution; (2) The name and address of the manufacturer or wholesale distributor from which it was acquired; (3) The product name and lot or control number; (4) The quantity returned; and (5) The date of the return. (b) The hospital, health care entity, or charitable institution forwards a copy of each credit memo to the manufacturer and retains a copy of each credit memo for its records; (c) Any drugs returned to a manufacturer or wholesale distributor are kept under proper conditions for storage, handling, and shipping, and written documentation showing that proper conditions were maintained is provided to the manufacturer or wholesale distributor to which the drugs are returned. | ||||
| 21:21:4.0.1.1.4.4.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.30 Sample distribution by mail or common carrier. | FDA | (a) Requirements for drug sample distribution by mail or common carrier. A manufacturer or authorized distributor of record may distribute a drug sample to a practitioner licensed to prescribe the drug that is to be sampled or, at the written request of a licensed practitioner, to the pharmacy of a hospital or other health care entity, by mail or common carrier, provided that: (1) The licensed practitioner executes and submits a written request to the manufacturer or authorized distributor of record, as set forth in paragraph (b) of this section, before the delivery of the drug sample; (2) The manufacturer or authorized distributor of record verifies with the appropriate State authority that the practitioner requesting the drug sample is licensed or authorized under State law to prescribe the drug product; (3) The recipient executes a written receipt, as set forth in paragraph (c) of this section, when the drug sample is delivered; and (4) The receipt is returned to the manufacturer or distributor from which the drug sample was received. (b) Contents of the written request form for delivery of samples by mail or common carrier. (1) A written request for a drug sample to be delivered by mail or common carrier to a licensed practitioner is required to contain the following: (i) The name, address, professional title, and signature of the practitioner making the request; (ii) The practitioner's State license or authorization number or, where a scheduled drug product is requested, the practitioner's Drug Enforcement Administration number. (iii) The proprietary or established name and the strength of the drug sample requested; (iv) The quantity requested; (v) The name of the manufacturer and the authorized distributor of record, if the drug sample is requested from an authorized distributor of record; and (vi) The date of the request. (2) A written request for a drug sample to be delivered by mail or common carrier to the pharmacy of a hospital or other health care entity is required to contain, in addi… | ||||
| 21:21:4.0.1.1.4.4.1.10 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.39 Donation of drug samples to charitable institutions. | FDA | A charitable institution may receive a drug sample donated by a licensed practitioner or another charitable institution for dispensing to a patient of the charitable institution, or donate a drug sample to another charitable institution for dispensing to its patients, provided that the following requirements are met: (a) A drug sample donated by a licensed practitioner or donating charitable institution shall be received by a charitable institution in its original, unopened packaging with its labeling intact. (b) Delivery of a donated drug sample to a recipient charitable institution shall be completed by mail or common carrier, collection by an authorized agent or employee of the recipient charitable institution, or personal delivery by a licensed practitioner or an agent or employee of the donating charitable institution. Donated drug samples shall be placed by the donor in a sealed carton for delivery to or collection by the recipient charitable institution. (c) A donated drug sample shall not be dispensed to a patient or be distributed to another charitable institution until it has been examined by a licensed practitioner or registered pharmacist at the recipient charitable institution to confirm that the donation record accurately describes the drug sample delivered and that no drug sample is adulterated or misbranded for any reason, including, but not limited to, the following: (1) The drug sample is out of date; (2) The labeling has become mutilated, obscured, or detached from the drug sample packaging; (3) The drug sample shows evidence of having been stored or shipped under conditions that might adversely affect its stability, integrity, or effectiveness; (4) The drug sample is for a prescription drug product that has been recalled or is no longer marketed; or (5) The drug sample is otherwise possibly contaminated, deteriorated, or adulterated. (d) The recipient charitable institution shall dispose of any drug sample found to be unsuitable by destroying it or by returning it to the manufacturer.… | ||||
| 21:21:4.0.1.1.4.4.1.2 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.31 Sample distribution by means other than mail or common carrier (direct delivery by a representative or detailer). | FDA | (a) Requirements for drug sample distribution by means other than mail or common carrier. A manufacturer or authorized distributor of record may distribute by means other than mail or common carrier, by a representative or detailer, a drug sample to a practitioner licensed to prescribe the drug to be sampled or, at the written request of such a licensed practitioner, to the pharmacy of a hospital or other health care entity, provided that: (1) The manufacturer or authorized distributor of record receives from the licensed practitioner a written request signed by the licensed practitioner before the delivery of the drug sample; (2) The manufacturer or authorized distributor of record verifies with the appropriate State authority that the practitioner requesting the drug sample is licensed or authorized under State law to prescribe the drug product; (3) A receipt is signed by the recipient, as set forth in paragraph (c) of this section, when the drug sample is delivered; (4) The receipt is returned to the manufacturer or distributor; and (5) The requirements of paragraphs (d) through (e) of this section are met. (b) Contents of the written request forms for delivery of samples by a representative. (1) A written request for delivery of a drug sample by a representative to a licensed practitioner is required to contain the following: (i) The name, address, professional title, and signature of the practitioner making the request; (ii) The practitioner's State license or authorization number, or, where a scheduled drug product is requested, the practitioner's Drug Enforcement Administration number; (iii) The proprietary or established name and the strength of the drug sample requested; (iv) The quantity requested; (v) The name of the manufacturer and the authorized distributor of record, if the drug sample is requested from an authorized distributor of record; and (vi) The date of the request. (2) A written request for delivery of a drug sample by a representative to the pharmacy of a hospital or other… | ||||
| 21:21:4.0.1.1.4.4.1.3 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.32 Drug sample storage and handling requirements. | FDA | (a) Storage and handling conditions. Manufacturers, authorized distributors of record, and their representatives shall store and handle all drug samples under conditions that will maintain their stability, integrity, and effectiveness and ensure that the drug samples are free of contamination, deterioration, and adulteration. (b) Compliance with compendial and labeling requirements. Manufacturers, authorized distributors of record, and their representatives can generally comply with this section by following the compendial and labeling requirements for storage and handling of a particular prescription drug in handling samples of that drug. | ||||
| 21:21:4.0.1.1.4.4.1.4 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.33 Drug sample forms. | FDA | A sample request or receipt form may be delivered by mail, common carrier, or private courier or may be transmitted photographically or electronically ( i.e. , by telephoto, wirephoto, radiophoto, facsimile transmission (FAX), xerography, or electronic data transfer) or by any other system, provided that the method for transmission meets the security requirements set forth in § 203.60(c). | ||||
| 21:21:4.0.1.1.4.4.1.5 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.34 Policies and procedures; administrative systems. | FDA | Each manufacturer or authorized distributor of record that distributes drug samples shall establish, maintain, and adhere to written policies and procedures describing its administrative systems for the following: (a) Distributing drug samples by mail or common carrier, including methodology for reconciliation of requests and receipts; (b) Distributing drug samples by means other than mail or common carrier including the methodology for: (1) Reconciling requests and receipts, identifying patterns of nonresponse, and the manufacturer's or distributor's response when such patterns are found; (2) Conducting the annual physical inventory and preparation of the reconciliation report; (3) Implementing a sample distribution security and audit system, including conducting random and for-cause audits of sales representatives by personnel independent of the sales force; and (4) Storage of drug samples by representatives; (c) Identifying any significant loss of drug samples and notifying FDA of the loss; and (d) Monitoring any loss or theft of drug samples. | ||||
| 21:21:4.0.1.1.4.4.1.6 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.35 Standing requests. | FDA | Manufacturers or authorized distributors of record shall not distribute drug samples on the basis of open-ended or standing requests, but shall require separate written requests for each drug sample or group of samples. An arrangement by which a licensed practitioner requests in writing that a specified number of drug samples be delivered over a period of not more than 6 months, with the actual delivery dates for parts of the order to be set by subsequent oral communication or electronic transmission, is not considered to be a standing request. | ||||
| 21:21:4.0.1.1.4.4.1.7 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.36 Fulfillment houses, shipping and mailing services, comarketing agreements, and third-party recordkeeping. | FDA | (a) Responsibility for creating and maintaining forms, reports, and records. Any manufacturer or authorized distributor of record that uses a fulfillment house, shipping or mailing service, or other third party, or engages in a comarketing agreement with another manufacturer or distributor to distribute drug samples or to meet any of the requirements of PDMA, PDA, or this part, remains responsible for creating and maintaining all requests, receipts, forms, reports, and records required under PDMA, PDA, and this part. (b) Responsibility for producing requested forms, reports, or records. A manufacturer or authorized distributor of record that contracts with a third party to maintain some or all of its records shall produce requested forms, reports, records, or other required documents within 2 business days of a request by an authorized representative of FDA or another Federal, State, or local regulatory or law enforcement official. | ||||
| 21:21:4.0.1.1.4.4.1.8 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.37 Investigation and notification requirements. | FDA | [64 FR 67756, Dec. 3, 1999, as amended at 69 FR 48775, Aug. 11, 2004; 70 FR 14981, Mar. 24, 2005; 74 FR 13112, Mar. 26, 2009; 80 FR 18090, Apr. 3, 2015] | (a) Investigation of falsification of drug sample records. A manufacturer or authorized distributor of record that has reason to believe that any person has falsified drug sample requests, receipts, or records, or is diverting drug samples, shall: (1) Notify FDA, by telephone or in writing, within 5 working days; (2) Immediately initiate an investigation; and (3) Provide FDA with a complete written report, including the reason for and the results of the investigation, not later than 30 days after the date of the initial notification in paragraph (a)(1) of this section. (b) Significant loss or known theft of drug samples. A manufacturer or authorized distributor of record that distributes drug samples or a charitable institution that receives donated drug samples from a licensed practitioner shall: (1) Notify FDA, by telephone or in writing, within 5 working days of becoming aware of a significant loss or known theft; (2) Immediately initiate an investigation into the significant loss or known theft; and (3) Provide FDA with a complete written report, including the reason for and the results of the investigation, not later than 30 days after the date of the initial notification in paragraph (b)(1) of this section. (c) Conviction of a representative. (1) A manufacturer or authorized distributor of record that distributes drug samples shall notify FDA, by telephone or in writing, within 30 days of becoming aware of the conviction of one or more of its representatives for a violation of section 503(c)(1) of the act or any State law involving the sale, purchase, or trade of a drug sample or the offer to sell, purchase, or trade a drug sample. (2) A manufacturer or authorized distributor of record shall provide FDA with a complete written report not later than 30 days after the date of the initial notification. (d) Selection of individual responsible for drug sample information. A manufacturer or authorized distributor of record that distributes drug samples shall inform FDA in writing within 30 days … | |||
| 21:21:4.0.1.1.4.4.1.9 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | D | Subpart D—Samples | § 203.38 Sample lot or control numbers; labeling of sample units. | FDA | (a) Lot or control number required on drug sample labeling and sample unit label. The manufacturer or authorized distributor of record of a drug sample shall include on the label of the sample unit and on the outside container or packaging of the sample unit, if any, an identifying lot or control number that will permit the tracking of the distribution of each drug sample unit. (b) Records containing lot or control numbers required for all drug samples distributed. A manufacturer or authorized distributor of record shall maintain for all samples distributed records of drug sample distribution containing lot or control numbers that are sufficient to permit the tracking of sample units to the point of the licensed practitioner. (c) Labels of sample units. Each sample unit shall bear a label that clearly denotes its status as a drug sample, e.g., “sample,” “not for sale,” “professional courtesy package.” (1) A drug that is labeled as a drug sample is deemed to be a drug sample within the meaning of the act. (2) A drug product dosage unit that bears an imprint identifying the dosage form as a drug sample is deemed to be a drug sample within the meaning of the act. (3) Notwithstanding paragraphs (c)(1) and (c)(2) of this section, any article that is a drug sample as defined in section 503(c)(1) of the act and § 203.3(i) that fails to bear the label required in this paragraph (c) is a drug sample. | ||||
| 21:21:4.0.1.1.4.5.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | E | Subpart E—Wholesale Distribution | § 203.50 Requirements for wholesale distribution of prescription drugs. | FDA | (a) Identifying statement for sales by unauthorized distributors. Before the completion of any wholesale distribution by a wholesale distributor of a prescription drug for which the seller is not an authorized distributor of record to another wholesale distributor or retail pharmacy, the seller shall provide to the purchaser a statement identifying each prior sale, purchase, or trade of such drug. This identifying statement shall include: (1) The proprietary and established name of the drug; (2) Dosage; (3) Container size; (4) Number of containers; (5) The drug's lot or control number(s); (6) The business name and address of all parties to each prior transaction involving the drug, starting with the manufacturer; and (7) The date of each previous transaction. (b) The drug origin statement is subject to the record retention requirements of § 203.60 and must be retained by all wholesale distributors involved in the distribution of the drug product, whether authorized or unauthorized, for 3 years. (c) Identifying statement not required when additional manufacturing processes are completed. A manufacturer that subjects a drug to any additional manufacturing processes to produce a different drug is not required to provide to a purchaser a statement identifying the previous sales of the component drug or drugs. (d) List of authorized distributors of record. Each manufacturer shall maintain at the corporate offices a current written list of all authorized distributors of record. (1) Each manufacturer's list of authorized distributors of record shall specify whether each distributor listed thereon is authorized to distribute the manufacturer's full product line or only particular, specified products. (2) Each manufacturer shall update its list of authorized distributors of record on a continuing basis. (3) Each manufacturer shall make its list of authorized distributors of record available on request to the public for inspection or copying. A manufacturer may impose reasonable copying charges for such … | ||||
| 21:21:4.0.1.1.4.6.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | F | Subpart F—Request and Receipt Forms, Reports, and Records | § 203.60 Request and receipt forms, reports, and records. | FDA | (a) Use of electronic records, electronic signatures, and handwritten signatures executed to electronic records. (1) Provided the requirements of part 11 of this chapter are met, electronic records, electronic signatures, and handwritten signatures executed to electronic records may be used as an alternative to paper records and handwritten signatures executed on paper to meet any of the record and signature requirements of PDMA, PDA, or this part. (2) Combinations of paper records and electronic records, electronic records and handwritten signatures executed on paper, or paper records and electronic signatures or handwritten signatures executed to electronic records, may be used to meet any of the record and signature requirements of PDMA, PDA, or this part, provided that: (i) The requirements of part 11 of this chapter are met for the electronic records, electronic signatures, or handwritten signatures executed to electronic records; and (ii) A reasonably secure link between the paper-based and electronic components exists such that the combined records and signatures are trustworthy and reliable, and to ensure that the signer cannot readily repudiate the signed records as not genuine. (3) For the purposes of this paragraph (a), the phrase “record and signature requirements of PDMA, PDA, or this part” includes drug sample request and receipt forms, reports, records, and other documents, and their associated signatures required by PDMA, PDA, and this part. (b) Maintenance of request and receipt forms, reports, records, and other documents created on paper. Request and receipt forms, reports, records, and other documents created on paper may be maintained on paper or by photographic imaging (i.e., photocopies or microfiche), provided that the security and authentication requirements described in paragraph (c) of this section are followed. Where a required document is created on paper and electronically scanned into a computer, the resulting record is an electronic record that must meet the requirements o… | ||||
| 21:21:4.0.1.1.4.7.1.1 | 21 | Food and Drugs | I | C | 203 | PART 203—PRESCRIPTION DRUG MARKETING | G | Subpart G—Rewards | § 203.70 Application for a reward. | FDA | [64 FR 67756, Dec. 3, 1999, as amended at 69 FR 48775, Aug. 11, 2004; 74 FR 13112, Mar. 26, 2009; 80 FR 18091, Apr. 3, 2013] | (a) Reward for providing information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample. A person who provides information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample, or the offer to sell, purchase, or trade a drug sample, in violation of section 503(c)(1) of the act, is entitled to one-half the criminal fine imposed and collected for such violation, but not more than $125,000. (b) Procedure for making application for a reward for providing information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample. A person who provides information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample, or the offer to sell, purchase, or trade a drug sample, in violation of section 503(c)(1) of the act, may apply for a reward by making written application to: (1) Director, Office of Compliance, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002; or (2) Food and Drug Administration, Center for Biologics Evaluation and Research, Office of Compliance and Biologics Quality (ATTN: Director), Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993-0002, as appropriate. | |||
| 24:24:2.1.1.2.4.1.79.1 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.1 Underwriting procedures. | HUD | [62 FR 30225, June 2, 1997] | The three underwriting procedures for single family mortgages are: (a) Direct Endorsement. This procedure, which is described in § 203.5, is available for mortgagees that are eligible under § 203.3. (b) Lender insurance. This procedure, which is described in § 203.6, is available for mortgagees that are eligible for the Direct Endorsement program under § 203.5, and that are also approved according to § 203.4. (c) Issuing of commitments through HUD offices. Processing through HUD offices as described in § 203.7, with issuance of commitments, is available only for mortgages that are not eligible for Direct Endorsement processing under § 203.5(b) or to the extent required in § 203.3(b)(4), § 203.3(d)(1), or as determined by the Secretary. | |||
| 24:24:2.1.1.2.4.1.79.2 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.3 Approval of mortgagees for Direct Endorsement. | HUD | [57 FR 58345, Dec. 9, 1992, as amended at 60 FR 42758, Aug. 16, 1995; 61 FR 2651, Jan. 26, 1996; 62 FR 20088, Apr. 24, 1997; 62 FR 65182, Dec. 10, 1997] | (a) Direct Endorsement approval. To be approved for the Direct Endorsement program set forth in § 203.5, a mortgagee must be an approved mortgagee meeting the requirements of §§ 202.13, 202.14 or 202.17 and this section. (b) Special requirements. The mortgagee must establish that it meets the following qualifications. (1) The mortgagee has five years of experience in the origination of single family mortgages. The Secretary will approve a mortgagee with less than five years experience in the origination of single family mortgages if a principal officer has had a minimum of five years of managerial experience in the origination of single family mortgages. (2) The mortgagee has on its permanent staff an underwriter that is authorized by the mortgagee to bind the mortgagee on matters involving the origination of mortgages through the Direct Endorsement procedure and that is registered with the Secretary and such registration is maintained with the Secretary. The technical staff may be employees of the mortgagee or may be hired on a fee basis from a roster maintained by the Secretary. The mortgagee shall use appraisers permitted by § 203.5(e). (3) [Reserved] (4) The mortgagee must submit initially 15 mortgages processed in accordance with §§ 203.5 and 203.255. Separate approval is required to originate mortgages under part 206 of this chapter through the Direct Endorsement program unless at least 50 mortgages closed by the mortgagee have been insured under part 206 of this chapter prior to September 15, 1995. Other mortgagees who have not closed at least 50 mortgages under part 206 of this chapter must submit five (5) Home Equity Conversion Mortgages, processed in accordance with §§ 203.3 and 203.255. The documents required by § 203.255 will be reviewed by the Secretary and, if acceptable, commitments will be issued prior to endorsement of the mortgages for insurance. If the underwriting and processing of these 15 mortgages (or the 5 Home Equity Conversion Mortgages) is satisfactory, then the mortgagee may b… | |||
| 24:24:2.1.1.2.4.1.79.3 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.4 Approval of mortgagees for Lender Insurance. | HUD | [62 FR 30226, June 2, 1997, as amended at 62 FR 65182, Dec. 10, 1997; 77 FR 3604, Jan. 25, 2012] | Each mortgagee that chooses to participate in the Lender Insurance program must use the Lender Insurance process to insure all of the mortgages that it underwrites, unless the mortgages are ineligible for the Direct Endorsement program as provided in § 203.5(b), or unless HUD determines that the mortgages are ineligible for the Lender Insurance program. (a) Direct Endorsement approval. To be approved for the Lender Insurance program described in § 203.6, a mortgagee must be unconditionally approved for the Direct Endorsement program as provided in § 203.3. (b) Performance: Claim and default rate. (1) In addition to being unconditionally approved for the Direct Endorsement program, a mortgagee must have had an acceptable claim and default rate (as described in paragraph (b)(3) of this section) for at least 2 years prior to its application for participation in the Lender Insurance program, and must maintain such a claim and default rate in order to retain Lender Insurance approval. (2) HUD may approve a mortgagee that is otherwise eligible for Lender Insurance approval, but has an acceptable claim and default record of less than 2 years, if: (i) The mortgagee is an entity created by a merger, acquisition, or reorganization completed less than 2 years prior to the date of the mortgagee's application for Lender Insurance approval; (ii) One or more of the entities participating in the merger, acquisition, or reorganization had Lender Insurance approval at the time of the merger, acquisition, or reorganization; (iii) All of the lending institutions participating in the merger, acquisition, or reorganization that had Lender Insurance approval at the time of the merger, acquisition, or reorganization had an acceptable claim and default record for the 2 years preceding the mortgagee's application for Lender Insurance approval; and (iv) The claim and default record of the mortgagee derived by aggregating the claims and defaults of the entities participating in the merger, acquisition, or reorganization, for the … | |||
| 24:24:2.1.1.2.4.1.79.4 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.5 Direct Endorsement process. | HUD | [57 FR 58346, Dec. 9, 1992; 58 FR 13537, Mar. 12, 1993, as amended at 59 FR 50463, Oct. 3, 1994; 60 FR 42759, Aug. 16, 1995; 61 FR 36263, July 9, 1996; 62 FR 20088, Apr. 24, 1997; 62 FR 30226, June 2, 1997; 69 FR 43509, July 20, 2004; 77 FR 51469, Aug. 24, 2012] | (a) General. Under the Direct Endorsement program, the Secretary does not review applications for mortgage insurance before the mortgage is executed or issue conditional or firm commitments, except to the extent required by § 203.3(b)(4), § 203.3(d)(1), or as determined by the Secretary. Under this program, the mortgagee determines that the proposed mortgage is eligible for insurance under the applicable program regulations, and submits the required documents to the Secretary in accordance with the procedures set forth in § 203.255. This subpart provides that certain functions shall be performed by the Secretary (or Commissioner), but the Secretary may specify that a Direct Endorsement mortgagee shall perform such an action without specific involvement or approval by the Secretary, subject to statutory limitations. In each case, the Direct Endorsement mortgagee's performance is subject to pre-endorsement and post-endorsement review by the Secretary under § 203.255 (c) and (e). (b) Eligible programs. (1) All single family mortgages authorized for insurance under the National Housing Act must be originated through the Direct Endorsement program, except the following: (i) Mortgages underwritten for insurance by mortgagees that have applied for participation in, and have been approved for, the Lender Insurance program; (ii) Mortgages authorized under sections 203(n), 203(p), 213(d), 221(h), 221(i), 225, 233, 237, 809, or 810 of the National Housing Act, or any other insurance programs announced by Federal Register notice; or (iii) As provided in § 203.1. (2) The provision contained in § 221.55 of this chapter regarding deferred sales to displaced families is not available in the Direct Endorsement program. (c) Underwriter due diligence. A Direct Endorsement mortgagee shall exercise the same level of care which it would exercise in obtaining and verifying information for a loan in which the mortgagee would be entirely dependent on the property as security to protect its investment. Mortgagee procedures t… | |||
| 24:24:2.1.1.2.4.1.79.5 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.6 Lender Insurance process. | HUD | [62 FR 30226, June 2, 1997] | Under the Lender Insurance program, a mortgagee approved for the program conducts its own pre-insurance review, insures the mortgage, and agrees to indemnify HUD in accordance with § 203.255(f). | |||
| 24:24:2.1.1.2.4.1.79.6 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.7 Commitment process. | HUD | [57 FR 58346, Dec. 9, 1992; 58 FR 13537, Mar. 12, 1993, as amended at 62 FR 30226, June 2, 1997] | For single family mortgage programs that are not eligible for Direct Endorsement processing under § 203.5, or for Lender Insurance processing under § 203.6, the mortgagee must submit an application for mortgage insurance in a form prescribed by the Secretary prior to making the mortgage loan. If: (a) A mortgage for a specified property has been accepted for insurance through issuance of a conditional commitment by the Secretary or a certificate of reasonable value by the Department of Veterans Affairs, and (b) A specified mortgagor and all other proposed terms and conditions of the mortgage meet the eligibility requirements for insurance as determined by the Secretary, the Secretary shall approve the application for insurance by issuing a firm commitment setting forth the terms and conditions of insurance. | |||
| 24:24:2.1.1.2.4.1.79.7 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.8 Approval of mortgagees for Direct Endorsement Lender Review and Approval Process (DELRAP). | HUD | [84 FR 41874, Aug. 15, 2019] | (a) General. Each mortgagee that chooses to participate in the review and approval of Condominium Projects, as set forth in § 203.43b, must be granted authority to participate in the Direct Endorsement Lender Review and Approval Process (DELRAP). (b) DELRAP Authority —(1) Eligibility. To be granted DELRAP authority, as described in § 203.43b, a mortgagee must be unconditionally approved for the Direct Endorsement program as provided in § 203.3 and meet the following requirements: (i) Have staff with at least one year of experience in underwriting mortgages on condominiums and/or Condominium Project approval; (ii) Have originated no fewer than 10 condominium loans in projects approved by the Commissioner; (iii) Have an acceptable quality control plan that includes specific provisions related to DELRAP; and (iv) Ensure that staff members that participate in the approval of a Condominium Project using DELRAP authority meet the above requirements in paragraph (b)(1)(i) of this section or are supervised by staff that meet such requirements. (2) Conditional DELRAP Authority. Mortgagees will be granted conditional DELRAP authority upon provision of notice to the Commissioner of the intent to use DELRAP. Mortgagees with conditional DELRAP authority must submit all recommended Condominium Project approvals, denials, and recertifications to FHA for review. If FHA agrees with the mortgagee's recommendation, it will advise the mortgagee that it may proceed with the recommended decision on the Condominium Project. (3) Unconditional DELRAP Authority. Mortgagees will be granted unconditional DELRAP authority after completing at least five (5) DELRAP reviews, or such lower number of DELRAP reviews as HUD may specify, to the satisfaction of HUD, and may then exercise DELRAP authority to approve projects in accordance with requirements of HUD. (c) Reviews. HUD will monitor a mortgagee's performance in DELRAP on an ongoing basis. (1) If the review shows that there are no material deficiencies, subsequent project… | |||
| 24:24:2.1.1.2.4.1.80.10 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.12 Mortgage insurance on proposed or new construction. | HUD | [64 FR 56110, Oct. 15, 1999] | (a) Applicability. This section applies to an application for insurance of a mortgage on a one-to four-family dwelling, unless the mortgage will be secured by a dwelling that: (1) Was completed more than one year before the date of the application for insurance or, under the Direct Endorsement Program, was completed more than one year before the date of the appraisal; or (2) Is being sold to a second or subsequent purchaser. (b) Procedures. (1) Applications for insurance to which this section applies will be processed in accordance with procedures prescribed by the Secretary. These procedures may only provide for endorsement for insurance of a mortgage covering a dwelling that is: (i) Approved under the Direct Endorsement Program or the Lender Insurance Program; or (ii) Located in a subdivision approved by the Rural Housing Service. (2) The mortgagee must submit a signed Builder's Certification of Plans, Specifications and Site (Builder's Certification). The Builder's Certification must be in a form prescribed by the Secretary and must cover: (i) Flood hazards; (ii) Noise; (iii) Explosive and flammable materials storage hazards; (iv) Runway clear zones/clear zones; (v) Toxic waste hazards; (vi) Other foreseeable hazards or adverse conditions (i.e., rock formations, unstable soils or slopes, high ground water levels, inadequate surface drainage, springs, etc.) that may affect the health and safety of the occupants or the structural soundness of the improvements. The Builder's Certification must be provided to the appraiser for reference before the performance of an appraisal on the property. (3) If a builder (or developer) intends to sell five or more properties in a subdivision, an Affirmative Fair Housing Marketing Plan (AFHMP) that meets the requirements of 24 CFR part 200, subpart M must be submitted and approved by HUD no later than the date of the first application for mortgage insurance in that subdivision. Thereafter, applications for insurance on other properties sold by the same builder … | |||
| 24:24:2.1.1.2.4.1.80.11 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.14 Builders' warranty. | HUD | [57 FR 58346, Dec. 9, 1992] | Applications relating to proposed construction must be accompanied by an agreement in form satisfactory to the Secretary, executed by the seller or builder or such other person as the Secretary may require, and agreeing that in the event of any sale or conveyance of the dwelling, within a period of one year beginning with the date of initial occupancy, the seller, builder, or such other person will at the time of such sale or conveyance deliver to the purchaser or owner of such property a warranty in form satisfactory to the Secretary warranting that the dwelling is constructed in substantial conformity with the plans and specifications (including amendments thereof or changes and variations therein which have been approved in writing by the Secretary) on which the Secretary has based on the valuation of the dwelling. Such agreement must provide that upon the sale or conveyance of the dwelling and delivery of the warranty, the seller, builder or such other person will promptly furnish the Secretary with a conformed copy of the warranty establishing by the purchaser's receipt thereon that the original warranty has been delivered to the purchaser in accordance with this section. | |||
| 24:24:2.1.1.2.4.1.80.12 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.15 Certification of appraisal amount. | HUD | [58 FR 41001, July 30, 1993] | An application with respect to insurance of mortgages must be accompanied by an agreement satisfactory to the Commissioner, executed by the seller, builder or such other person as may be required by the Commissioner, whereby the person agrees that before any sale of the dwelling, the person will deliver to the purchaser of the property a written statement, in a form satisfactory to the Commissioner, setting forth the amount of the appraised value of the property as determined by the Commissioner. | |||
| 24:24:2.1.1.2.4.1.80.13 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.16 Certificate and contract regarding use of dwelling for transient or hotel purposes. | HUD | Every application filed with respect to insurance of mortgages on a two-, three-, or four-family dwelling, or a single-family dwelling which is one of a group of 5 or more single-family dwellings held by the same mortgagor, must be accompanied by a contract in form satisfactory to the Commissioner, signed by the proposed mortgagor covenanting and agreeing that so long as the proposed mortgage is insured by the Commissioner the mortgagor will not rent the housing or any part thereof covered by the mortgage for transient or hotel purposes, together with the mortgagor's certification under oath that the housing or any part thereof covered by the proposed mortgage will not be rented for transient or hotel purposes. For the purpose of this subchapter rental for transient or hotel purposes shall mean (a) rental for any period less than 30 days or (b) any rental if the occupants of the housing accommodations are provided customary hotel services such as room service for food and beverages, maid service, furnishing and laundering of linen, and bellboy service. | ||||
| 24:24:2.1.1.2.4.1.80.14 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.16a Mortgagor and mortgagee requirement for maintaining flood insurance coverage. | HUD | [87 FR 70742, Nov. 21, 2022] | (a) In general. (1) The requirements of this section apply if a mortgage is to cover property improvements that: (i) Are located in an area designated by the Federal Emergency Management Agency (FEMA) as a floodplain area having special flood hazards; (ii) Are otherwise determined by the Commissioner to be subject to flood hazard; or (iii) Are not otherwise covered by the flood insurance standard for condominium projects established under § 203.43b(d)(6)(iii) or (i)(1). (2) No mortgage may be insured that covers property improvements located in an area that has been identified by FEMA 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 flood insurance under the National Flood Insurance Program (NFIP) is available with respect to such property improvements. Such requirement for flood insurance shall be effective one year after the date of notification by FEMA to the chief executive officer of a flood prone community that such community has been identified as having special flood hazards. (3) For purposes of this section, property improvement means a dwelling and related structures/equipment essential to the value of the property and subject to flood damage. (b) Flood insurance obligation. The mortgagor and mortgagee shall be obligated, by a special condition to be included in the mortgage commitment, to obtain and maintain either NFIP flood insurance or private flood insurance coverage on the property improvements. (c) Insurance policy. A mortgagee may accept a flood insurance policy in the form of the standard policy issued under the NFIP or a private flood insurance policy as defined in this section, and the mortgagee shall be named as the loss payee for flood insurance benefits. A mortgagee may determine that a private flood insurance policy meets the definition of private flood insurance in this section, without further review of the policy, if the following statement is included within the policy o… | |||
| 24:24:2.1.1.2.4.1.80.8 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.9 Disclosure regarding interest due upon mortgage prepayment. | HUD | [56 FR 18947, Apr. 24, 1991, as amended at 79 FR 50837, Aug. 26, 2014] | Each mortgagee with respect to a mortgage under this part shall at or before closing with respect to any such mortgage, provide the mortgagor with written notice in a form prescribed by the Commissioner describing any requirements the mortgagor must fulfill upon prepayment of the principal amount of the mortgage to prevent the accrual of any interest on the principal amount after the date of such prepayment. This paragraph shall apply to any mortgage executed after August 22, 1991, and before January 21, 2015. | |||
| 24:24:2.1.1.2.4.1.80.9 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.10 Informed consumer choice for prospective FHA mortgagors. | HUD | [64 FR 29765, June 2, 1999, as amended at 64 FR 34984, June 30, 1999] | (a) Mortgagee to provide disclosure notice. A mortgagee must provide a prospective FHA mortgagor with an informed consumer choice disclosure notice if, in the mortgagees's judgment, the prospective FHA mortgagor may qualify for similar conventional mortgage products offered by the mortgagee. The mortgagee should base this judgment on the mortgagee's initial assessment of the prospective FHA mortgagor's eligibility for a conventional mortgage product. If a mortgagee is unsure about a prospective FHA mortgagor's eligibility for a conventional mortgage product, the mortgagee should provide the prospective FHA mortgagor with an informed consumer choice disclosure notice. (b) Informed consumer choice disclosure notice —(1) Contents of notice. The informed consumer choice disclosure notice must: (i) Provide a one page generic analysis comparing the mortgage costs of an FHA-insured mortgage with the mortgage costs of similar conventional mortgage products offered by the mortgagee that the prospective FHA mortgagor may qualify for; (ii) Provide information about when the requirement to pay FHA mortgage insurance premiums terminates; and (iii) Meet the requirements of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)). (2) Format of disclosure notice. The informed consumer choice disclosure notice must be provided in a format prescribed by the Commissioner. HUD has prepared a model informed consumer choice disclosure notice that represents this format and that meets the requirements of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)). The model informed consumer choice disclosure notice contains the minimum elements of an informed consumer choice disclosure notice. These elements must be included in a mortgagee's informed consumer choice disclosure notice. A mortgagee, however, may include additional elements in an informed consumer choice disclosure notice to better reflect the mortgagee's products or to provide information that the mortgagee believes is meaningful and he… | |||
| 24:24:2.1.1.2.4.1.81.15 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.17 Mortgage provisions. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 45 FR 29278, May 2, 1980; 48 FR 28804, June 23, 1983; 49 FR 21319, May 21, 1984; 53 FR 34281, Sept. 6, 1988; 54 FR 39525, Sept. 27, 1989; 57 FR 58347, Dec. 9, 1992; 61 FR 36263, July 9, 1996; 84 FR 41875, Aug. 15, 2019] | (a) Mortgage form. (1) The term “mortgage” as used in this part, except § 203.43c, shall have the meaning given in Section 201 of the National Housing Act, as amended (12 U.S.C. 1707). (2)(i) The mortgage shall be in a form meeting the requirements of the Commissioner. The Commissioner may prescribe complete mortgage instruments. For each case in which the Commissioner does not prescribe complete mortgage instruments, the Commissioner (A) Shall require specific language in the mortgage which shall be uniform for every mortgage, and (B) May also prescribe the language or substance of additional provisions for all mortgages as well as the language or substance of additional provisions for use only in particular jurisdictions or for particular programs. (ii) Each mortgage shall also contain any provisions necessary to create a valid and enforceable secured debt under the laws of the jurisdiction in which the property is located. (b) Mortgage multiples. A mortgage shall involve a principal obligation in a multiple of $1. (c) Payments. The mortgage shall: (1) Come due on the first of the month. (2) Contain complete amortization provisions satisfactory to the Secretary and an amortization period not in excess of the term of the mortgage. (3) Provide for payments to principal and interest to begin not later than the first day of the month following 60 days from the date the mortgage is executed (or the date a construction mortgage is converted to a permanent mortgage, if applicable). (d) Maturity. The mortgage shall have a term of not more than 30 years from the date of the beginning of amortization. (e) Property Standards. The mortgage must be a first lien upon the property that conforms with property standards prescribed by the Commissioner. (f) Disbursement. The entire principal amount of the mortgage must have been disbursed to the mortgagor or to his or her creditors for his or her account and with his or her consent. | |||
| 24:24:2.1.1.2.4.1.81.16 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.18 Maximum mortgage amounts. | HUD | [36 FR 24508, Dec. 22, 1971] | (a) Mortgagors of principal or secondary residences. The principal amount of the mortgage must not exceed the lesser of the following amounts that apply: (1) The dollar amount limitation that applies for the area under section 203(b)(2)(A) of the National Housing Act including any increase in the dollar limitation under § 203.29, as announced in accordance with § 203.18(h); (2)(i) The amount based on appraised value that is permitted by section 203(b)(10) of the National Housing Act, if that provision is in effect and applies to the mortgage; or (ii) If section 203(b)(10) is not in effect or otherwise does not apply to the mortgage, the lesser of the amounts based on appraised value that are permitted by section 203(b)(2)(B) of the National Housing Act and paragraph (g) of this section; (3) An amount equal to 85 percent of the appraised value if the mortgage covers a dwelling that is to be occupied as a secondary residence (as defined in paragraph (f)(2) of this section). (b) Veteran qualifications. The special veteran terms provided in section 203(b)(2) of the National Housing Act shall apply only if the mortgagor submits one of the following certifications: (1) A certification issued by the Secretary of Defense establishing that the veteran performed extra hazardous service while serving in the armed forces for a period of less than 90 days; or (2) A Certificate of Eligibility from the Department of Veterans Affairs establishing that the person served 90 days or more on active duty in the armed forces (U.S. Army, Navy, Marine Corps, Air Force, Coast Guard, the Army Reserve, the Naval Reserve, the Marine Corps Reserve, the Air Force Reserve, the Coast Guard Reserve, the National Guard of the United States, or the Air National Guard of the United States); that he or she enlisted before September 8, 1980; and that he or she was discharged or released under conditions other than dishonorable (a copy of the veteran's discharge papers or Form DD-214 shall be submitted with the certificate); or (3) A Certi… | |||
| 24:24:2.1.1.2.4.1.81.17 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.18a Solar energy system. | HUD | [45 FR 51770, Aug. 5, 1980] | (a) The dollar limitation provided in § 203.18(a) may be increased by up to 20 percent if such an increase is necessary to account for the increased cost of the residence due to the installation of a solar energy system. (b) Solar energy system is defined as any addition, alteration, or improvement to an existing or new structure which is designed to utilize wind energy or solar energy either of the active type based on mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types to reduce the energy requirements of that structure from other energy sources and which is in conformity with such criteria and standards as shall be prescribed by the Secretary in consultation with the Secretary of Energy. | |||
| 24:24:2.1.1.2.4.1.81.18 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.18b Increased mortgage amount. | HUD | [45 FR 76377, Nov. 18, 1980, as amended at 47 FR 917, Jan. 7, 1982; 49 FR 12697, Mar. 30, 1984; 49 FR 14338, Apr. 11, 1984; 53 FR 8880, Mar. 18, 1988; 56 FR 18947, Apr. 24, 1991; 58 FR 41002, July 30, 1993; 59 FR 13882, Mar. 24, 1994; 60 FR 16033, Mar. 28, 1995] | (a) If any party believes that a mortgage limit established by the Secretary under § 203.18(a)(1) does not accurately reflect the median house prices in an area, the party may submit documentation in support of an alternative mortgage limit. For purposes of this section, an area (1) must be at least the size of a county, whether or not the area is located within a metropolitan statistical area, as established by the Office of Management and Budget; and (2) may be an area for which the mortgage limits established under § 203.18(b)(1) apply. (b)(1) The documentation referred to in paragraph (a) of this section must consist of sufficient housing sales price data for the entire geographic area for which the request is made to justify an alternative mortgage limit. The documentation should include a listing of actual sales prices in the area for all or nearly all new and existing 1-family homes and condominiums, over a period of time varies with sales volume, as follows: (i) For 500 or more sales per month, a one-month reporting period; (ii) For 250 through 499 sales per month, a two-month reporting period. (iii) For less than 250 sales per month, a three-month reporting period. The listing should contain a brief address for each property, its county location, its sale price, the month and year of its sale, and whether it is new or existing. In areas where the ratio of existing sales to new sales is three-to-one or greater, an increase in the mortgage limit may be based on 95 percent of the average of the new and the existing median sales prices. In these areas, the documentation referred to in this paragraph may also include separate median sales prices for both the new and existing homes. (2) Requests for an increased mortgage limit based upon documentation of median house prices for the area should be sent to the appropriate HUD field office. (c) In the case of an area where the Commissioner determines that the median one-family house price does not reasonably reflect the sales prices of newly constructed ho… | |||
| 24:24:2.1.1.2.4.1.81.19 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.18c One-time or up-front mortgage insurance premium excluded from limitations on maximum mortgage amounts. | HUD | [57 FR 15211, Apr. 24, 1992] | After determining any maximum insurable mortgage amount under the provisions of this subpart, the maximum insurable amount of any mortgage may be increased by the amount of any one-time or up-front mortgage insurance premium that will be financed as part of the mortgage. | |||
| 24:24:2.1.1.2.4.1.81.20 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.18d Minimum principal loan amount. | HUD | [53 FR 8880, Mar. 18, 1988] | A mortgagee may not require, as a condition of providing a loan secured by a mortgage insured under this part, that the principal amount of the mortgage exceed a minimum amount established by the mortgagee. | |||
| 24:24:2.1.1.2.4.1.81.21 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.19 Qualified mortgage. | HUD | [78 FR 75237, Dec. 11, 2013] | (a) Definitions. As used in this section: (1) Average prime offer rate means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to mortgagors by a representative sample of mortgagees for mortgage transactions that have low-risk pricing characteristics as published by the Consumer Financial Protection Bureau (CFPB) from time to time in accordance with the CFPB's regulations at 12 CFR 1026.35, pertaining to prohibited acts or practices in connection with higher-priced mortgage loans. (2) Annual percentage rate is the measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the mortgagor to the amount and timing of payments made and is the rate required to be disclosed by the mortgagee under 12 CFR 1026.18, pertaining to disclosure of finance charges for mortgages. (3) Points and fees has the meaning given to “points and fees” in 12 CFR 1026.32(b)(1) as of January 10, 2014. Any changes made by the CFPB to the points and fees definition may be adopted by HUD through publication of a notice and after providing FHA-approved mortgagees with time, as may be determined necessary, to implement. (b) Qualified mortgage —(1) Limit. For a single family mortgage to be insured under title II of the National Housing Act (12 U.S.C. 1701 et seq. ), except for mortgages for manufactured housing and mortgages under paragraph (c) of this section, the total points and fees payable in connection with a loan used to secure a dwelling shall not exceed the CFPB's limit on points and fees for qualified mortgage in its regulations at 12 CFR 1026.43(e)(3) as of January 10, 2014. Any changes made by the CFPB to the limit on points and fees may be adopted by HUD through publication of a notice and after providing FHA-approved mortgagees with time, as may be determined necessary, to implement. (2) Rebuttable presumption qualified mortgage. (i) A single family mortgage insured under title II of th… | |||
| 24:24:2.1.1.2.4.1.81.22 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.20 Agreed interest rate. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 49 FR 19457, May 8, 1984] | (a) The mortgage shall bear interest at the rate agreed upon by the mortgagee and the mortgagor. (b) Interest shall be payable in monthly installments on the principal amount of the mortgage outstanding on the due date of each installment. | |||
| 24:24:2.1.1.2.4.1.81.23 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.21 Amortization provisions. | HUD | The mortgage must contain complete amortization provisions satisfactory to the Commissioner, requiring monthly payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Commissioner. The sum of the principal and interest payments in each month shall be substantially the same. | ||||
| 24:24:2.1.1.2.4.1.81.24 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.22 Payment of insurance premiums or charges; prepayment privilege. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 37 FR 8661, Apr. 29, 1972; 48 FR 28804, June 23, 1983; 50 FR 25914, June 24, 1985; 61 FR 36263, July 9, 1996; 79 FR 50837, Aug. 26, 2014] | (a) Payment of periodic insurance premiums or charges. Except with respect to mortgages for which a one-time mortgage insurance premium is paid pursuant to § 203.280, the mortgage may provide for monthly payments by the mortgagor to the mortgagee of an amount equal to one-twelfth of the annual mortgage insurance premium payable by the mortgagee to the Commissioner. Such payments continue only so long as the contract of insurance shall remain in effect or for such shorter period as mortgage insurance premiums are payable by the mortgagee to the Commissioner. (b) Prepayment privilege. The mortgage shall contain a provision permitting the mortgagor to prepay the mortgage in whole or in part at any time and in any amount. The mortgage shall not provide for the payment of any charge on account of such prepayment. | |||
| 24:24:2.1.1.2.4.1.81.25 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.23 Mortgagor's payments to include other charges. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 37 FR 25231, Nov. 29, 1972; 41 FR 47934, Nov. 10, 1976; 59 FR 53901, Oct. 26, 1994] | (a) The mortgage shall provide for such equal monthly payments by the mortgagor to the mortgagee as will amortize: (1) The ground rents, if any; (2) The estimated amount of all taxes; (3) Special assessments, if any; (4) Flood insurance premiums, if flood insurance is required by the Commissioner; and (5) Fire and other hazard insurance premiums, if any. The mortgage shall further provide that such payments shall be held by the mortgagee in a manner satisfactory to the Commissioner for the purpose of paying such ground rents, taxes, assessments, and insurance premiums before the same become delinquent, for the benefit and account of the mortgagor. The mortgage must also make provisions for adjustments in case the estimated amount of such taxes, assessments, and insurance premiums shall prove to be more, or less, than the actual amount thereof so paid by the mortgagor. Such payments shall be held in an escrow subject to § 203.550. (b) The mortgagor shall not be required to pay premiums for fire or other hazard insurance which protects only the interests of the mortgagee, or for life or disability income insurance, or fees charged for obtaining information necessary for the payment of property taxes. The foregoing does not apply to charges made or penalties exacted by the taxing authority, except that a penalty assessed or interest charged by a taxing authority for failure to timely pay taxes or assessments shall not be charged by the mortgagee to the mortgagor if the mortgagee had sufficient funds in escrow for the account of the mortgagor to pay such taxes or assessments prior to the date on which penalty or interest charges are imposed. (c) Mortgages involving a principal obligation not in excess of $9,000 may contain a provision requiring the mortgagor to pay to the mortgagee an annual service charge at such rate as may be agreed upon between the mortgagee and the mortgagor, but in no case shall such service charge exceed one-half of one percent per annum. Any such service charge shall be payable in mont… | |||
| 24:24:2.1.1.2.4.1.81.26 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.24 Application of payments. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 37 FR 25231, Nov. 29, 1972; 50 FR 25914, June 24, 1985; 61 FR 36263, July 9, 1996] | (a) All monthly payments to be made by the mortgagor to the mortgagee shall be added together and the aggregate amount thereof shall be paid by the mortgagor each month in a single payment. The mortgagee shall apply the same to the following items in the order set forth: (1) Premium charges under the contract of insurance (other than a one-time or up-front mortgage insurance premium paid in accordance with §§ 203.280, 203.284 and 203.285), charges for ground rents, taxes, special assessments, flood insurance premiums, if required, and fire and other hazard insurance premiums; (2) Interest on the mortgage; (3) Amortization of the principal of the mortgage; and (4) Late charges, if permitted under the terms of the mortgage and subject to such conditions as the Commissioner may prescribe. (b) Any deficiency in the amount of any such aggregate monthly payment shall, unless made good by the mortgagor prior to, or on, the due date of the next such payment, constitute an event of default under the mortgage. | |||
| 24:24:2.1.1.2.4.1.81.27 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.25 Late charge. | HUD | [41 FR 49734, Nov. 10, 1976] | The mortgage may provide for the collection by the mortgagee of a late charge, not to exceed four per cent of the amount of each payment more than 15 days in arrears, to cover servicing and other costs attributable to the receipt of payments from mortgagors after the date upon which payment is due. | |||
| 24:24:2.1.1.2.4.1.81.28 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.26 Mortgagor's payments when mortgage is executed. | HUD | [41 FR 49734, Nov. 10, 1976, as amended at 48 FR 28804, June 23, 1983] | (a) The mortgagor must pay to the mortgagee, upon execution of the mortgage, a sum that will be sufficient to pay the ground rents, if any, the estimated taxes, special assessments, flood insurance premiums, if required, and fire and other hazard insurance premiums for the period beginning on the last date on which each such charge would have been paid under the normal lending practices of the lender and local custom (if each such date constitutes prudent lending practice), and ending on the due date of the first full installment payment under the mortgage, plus an amount sufficient to pay the mortgage insurance premium from the date of closing the loan to the date of the first monthly payment under the mortgage or, where applicable, the one-time mortgage insurance premium payable pursuant to § 203.280. (b) The mortgagee may also collect from the mortgagor a sum not exceeding one-sixth of the estimated total amount of such taxes, special assessments, insurance premiums and other charges to be paid during the ensuing 12-month period. | |||
| 24:24:2.1.1.2.4.1.81.29 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.27 Charges, fees or discounts. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 43 FR 19846, May 9, 1978; 45 FR 30602, May 8, 1980; 45 FR 33966, May 21, 1980; 47 FR 29525, July 7, 1982; 48 FR 11940, Mar. 22, 1983; 48 FR 28804, June 23, 1983; 49 FR 19457, May 8, 1984; 57 FR 58347, Dec. 9, 1992; 58 FR 13537, Mar. 12, 1993; 73 FR 68239, Nov. 17, 2008] | (a) The mortgagee may collect from the mortgagor the following charges, fees or discounts: (1) [Reserved] (2) A charge to compensate the mortgagee for expenses incurred in originating and closing the loan, provided that the Commissioner may establish limitations on the amount of any such charge. (3) Reasonable and customary amounts, but not more than the amount actually paid by the mortgagee, for any of the following items: (i) Recording fees and recording taxes or other charges incident to recordation; (ii) Credit Report; (iii) Survey, if required by mortgagee or mortgagor; (iv) Title examination; title insurance, if any; (v) Fees paid to an appraiser or inspector approved by the Commissioner for the appraisal and inspection, if required, of the property. Notwithstanding any limitations in this paragraph (a)(3) if the mortgagee is permitted by applicable regulations to use the services of staff appraisers and inspectors for processing mortgages, and does so, the mortgagee may collect from the mortgagor the reasonable and customary amounts for such appraisals and inspections. (vi) Such other reasonable and customary charges as may be authorized by the Commissioner. (4) Reasonable and customary charges in the nature of discounts. (5) Interest from the date of closing or the date on which the mortgagee disburses the mortgage proceeds to the account of the mortgagor or the mortgagor's creditors, whichever is later, to the date of the beginning of amortization. (b)-(c) [Reserved] (d) Before the insurance of any mortgage, the mortgagee shall furnish to the Secretary a signed statement in a form satisfactory to the Secretary listing any charge, fee or discount collected by the mortgagee from the mortgagor. All charges, fees or discounts are subject to review by the Secretary both before and after endorsement under § 203.255. (e) Nothing in this section will be construed as prohibiting the mortgagor from dealing through a broker who does not represent the mortgagee, if he prefers to do so, and paying suc… | |||
| 24:24:2.1.1.2.4.1.81.30 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.28 Economic soundness of projects. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 42 FR 57434, Nov. 2, 1977; 45 FR 33966, May 21, 1980; 53 FR 8880, Mar. 18, 1988] | The mortgage must be executed with respect to a project which, in the opinion of the Commissioner, is economically sound, except that this section shall not apply in each of the following instances: (a) To a mortgage of the character described in § 203.18(d) and with respect to such a mortgage, the Commissioner shall determine that the mortgage is an acceptable risk giving consideration to the need for providing adequate housing for families of low and moderate income, particularly in suburban and outlying areas or small communities. (b) To a mortgage of the character described in § 203.18 (e). (c) To a mortgage of the character described in § 203.43a. (d) To a mortgage in a federally impacted area described in § 203.43e. (e) To a rehabilitation loan of the character described in § 203.50. | |||
| 24:24:2.1.1.2.4.1.81.31 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.29 Eligible mortgages in Alaska, Guam, Hawaii, or the Virgin Islands. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 49 FR 14338, Apr. 11, 1984; 55 FR 34804, Aug. 24, 1990; 56 FR 18948, Apr. 24, 1991; 64 FR 14569, Mar. 25, 1999] | (a) When is an increased mortgage limit permitted for these areas? For Alaska, Guam, Hawaii or the Virgin Islands, the Commissioner may increase the maximum mortgage amount permitted by section 203(b)(2)(A) of the National Housing Act when authorized by section 214 of that Act, through the procedures described in § 203.18(h). (b) If a party believes that the otherwise applicable mortgage limit needs to be increased to reflect the extent to which high costs make it infeasible to construct dwellings without sacrificing sound standards of construction, design or livability, the party may submit documentation in support of an alternative mortgage limit. This documentation should include actual or estimated costs of such items as design, construction, materials, and labor. In addition, actual sales prices of new homes may be submitted, together with any other documentation requested by the Commissioner. Requests for alternative mortgage limits, together with supporting documentation should be sent to the appropriate HUD field office. The field office will forward the request and supporting material, with the field office's recommendation, to the Commissioner for determination. (c) If the Alaska Housing Authority, or the Government of Guam, Hawaii, or the Virgin Islands or any agency or instrumentality of those entities, is the mortgagor or the mortgagee, or the mortgagor is regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation to such an extent and in such manner as the Commissioner determines advisable to provide reasonable rental and sales prices and a reasonable return on the investment, any mortgage otherwise eligible for insurance under this subpart may be insured: (1) In any case where the Alaska Housing Authority, or the government of Guam, Hawaii, the Virgin Islands, or any agency or instrumentality of those entities, is the mortgagor, without regard to any requirement that the mortgagor occupy the dwelling as a principal residence or a secondar… | |||
| 24:24:2.1.1.2.4.1.81.32 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.30 Certificate of nondiscrimination by the mortgagor. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 57 FR 58347, Dec. 9, 1992; 61 FR 36264, July 9, 1996] | The mortgagor shall certify to the Commissioner as to each of the following points: (a) That neither he, nor anyone authorized to act for him, will refuse to sell or rent, after the making of a bonafide offer, or refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny the dwelling or property covered by the mortgage to any person because of race, color, religion, national origin, familial status (except as provided by law), or handicap. (b) That any restrictive covenant on such property relating to race, color, religion, or national origin is recognized as being illegal and void and is hereby specifically disclaimed. (c) That civil action for preventative relief may be brought by the Attorney General in any appropriate U.S. District Court against any person responsible for a violation of this certification. (d) That buildings having four (4) or more units, which were built for first occupancy after March 13, 1991, were constructed in compliance with the Fair Housing Act new construction requirements in 24 CFR 100.205. | |||
| 24:24:2.1.1.2.4.1.81.33 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.31 Mortgagor of a principal residence in military service cases. | HUD | [55 FR 34804, Aug. 24, 1990] | (a) A mortgage that is otherwise eligible for insurance under any of the provisions of this part may be insured without regard to any requirement contained in this part that the mortgagor occupy the dwelling as a principal residence (as defined in § 203.18(f)(1)) at the time of insurance, or that the mortgagor meet loan-to-value or comparable limitations based on the failure of the mortgagor to meet an occupancy requirement, if: (1) The Commissioner is satisfied that the inability of the mortgagor to meet the occupancy requirement is by reason of his or her entry into military service after the filing of an application for insurance; and (2) The mortgagor expresses an intent (in such form as the Commissioner may prescribe), to meet the occupancy requirement upon his or her discharge from the service. (b) A serviceperson will also be considered to meet the occupancy requirement referred to in paragraph (a) of this section for mortgage insurance purposes, if the following conditions are satisfied: (1) The serviceperson and his or her family expect to meet the occupancy requirement referred to in paragraph (a) of this section for two or more years. The Commissioner may shorten this period to one year, if (i) the serviceperson's family will occupy the property for at least one year and (ii) the serviceperson is assigned to a combat zone or other hazardous duty area where the family cannot accompany him or her; and (2) The property is located in an area in which the prospects of resale are reasonable. | |||
| 24:24:2.1.1.2.4.1.82.34 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.32 Mortgage lien. | HUD | [45 FR 19223, Mar. 25, 1980, as amended at 50 FR 20906, May 21, 1985; 56 FR 4477, Feb. 4, 1991; 58 FR 42647, Aug. 11, 1993] | (a) Except as otherwise provided in this section, a mortgagor must establish that, after the mortgage offered for insurance has been recorded, the mortgaged property will be free and clear of all liens other than such mortgage, and that there will not be outstanding any other unpaid obligations contracted in connection with the mortgage transaction or the purchase of the mortgaged property, except obligations that are secured by property or collateral owned by the mortgagor independently of the mortgaged property. (b) With prior approval of the Secretary, the mortgaged property may be subject to a secondary mortgage or loan made or insured, or other secondary lien held, by a Federal, State, or local government agency or instrumentality, or an entity designated in the homeownership plan submitted by an applicant for an implementation grant under the Homeownership and Opportunity for People Everywhere (HOPE) program, or an eligible nonprofit organization as defined in § 203.41(a)(5) of this part, provided that the required monthly payments under the insured mortgage and the secondary mortgage or lien shall not exceed the mortgagor's reasonable ability to pay as determined by the Secretary. (c) With the prior approval of the Secretary, the mortgaged property may be subject to a second mortgage held by a mortgagee not described in paragraph (b) of this section. Unless the mortgage is for the purpose described in paragraph (d) of this section, it shall meet the following requirements: (1) The required monthly payments under the insured mortgage and the second mortgage shall not exceed the mortgagor's reasonable ability to pay, as determined by the Commissioner; (2) Periodic payments, if any, shall be collected monthly and be substantially the same; (3) The sum of the principal amount of the insured mortgage and the second mortgage shall not exceed the loan-to-value limitation applicable to the insured mortgage, and shall not exceed the maximum mortgage limit for the area; (4) The repayment terms shall not provid… | |||
| 24:24:2.1.1.2.4.1.82.35 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.33 Relationship of income to mortgage payments. | HUD | [37 FR 16390, Aug. 12, 1972, as amended at 54 FR 38649, Sept. 20, 1989; 59 FR 59648, Nov. 18, 1994; 77 FR 5675, Feb. 3, 2012] | (a) Adequacy of mortgagor's gross income. A mortgagor must establish, to the satisfaction of the Secretary, that his or her gross income is and will be adequate to meet (1) the periodic payments required by the mortgage submitted for insurance and (2) other long-term obligations. (b) Determinations of adequacy of mortgagor income under this section shall be made in a uniform manner without regard to race, color, religion, sex, national origin, familial status, handicap, marital status, actual or perceived sexual orientation, gender identity, source of income of the mortgagor, or location of the property. | |||
| 24:24:2.1.1.2.4.1.82.36 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.34 Credit standing. | HUD | A mortgagor must have a general credit standing satisfactory to the Commissioner. | ||||
| 24:24:2.1.1.2.4.1.82.37 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.35 Disclosure and verification of Social Security and Employer Identification Numbers. | HUD | [54 FR 39693, Sept. 27, 1989] | To be eligible for mortgage insurance under this part, the mortgagor must meet the requirements for the disclosure and verification of Social Security and Employer Identification Numbers, as provided by part 200, subpart U, of this chapter. | |||
| 24:24:2.1.1.2.4.1.82.38 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.36 [Reserved] | HUD | |||||
| 24:24:2.1.1.2.4.1.83.39 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.37 Nature of title to realty. | HUD | [49 FR 21319, May 21, 1984] | A mortgage, to be eligible for insurance, must be on real estate held in fee simple, or on leasehold under a lease for not less than 99 years which is renewable, or under a lease having a period of not less than 10 years to run beyond the maturity date of the mortgage. | |||
| 24:24:2.1.1.2.4.1.83.40 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.37a Sale of property. | HUD | [68 FR 23375, May 1, 2003, as amended at 69 FR 77116, Dec. 23, 2004; 71 FR 33142, June 7, 2006] | (a) Sale by owner of record —(1) Owner of record requirement. To be eligible for a mortgage insured by FHA, the property must be purchased from the owner of record and the transaction may not involve any sale or assignment of the sales contract. (2) Supporting documentation. The mortgagee shall obtain documentation verifying that the seller is the owner of record and must submit this documentation to HUD as part of the application for mortgage insurance, in accordance with § 203.255(b)(12). This documentation may include, but is not limited to, a property sales history report, a copy of the recorded deed from the seller, or other documentation (such as a copy of a property tax bill, title commitment, or binder) demonstrating the seller's ownership. (b) Time restrictions on re-sales —(1) General. The eligibility of a property for a mortgage insured by FHA is dependent on the time that has elapsed between the date the seller acquired the property (based upon the date of settlement) and the date of execution of the sales contract that will result in the FHA mortgage insurance (the re-sale date). The mortgagee shall obtain documentation verifying compliance with the time restrictions described in this paragraph and must submit this documentation to HUD as part of the application for mortgage insurance, in accordance with § 203.255(b). (2) Re-sales occurring 90 days or less following acquisition. If the re-sale date is 90 days or less following the date of acquisition by the seller, the property is not eligible for a mortgage to be insured by FHA. (3) Re-sales occurring between 91 days and 180 days following acquisition. (i) If the re-sale date is between 91 days and 180 days following acquisition by the seller, the property is generally eligible for a mortgage insured by FHA. (ii) However, HUD will require that the mortgagee obtain additional documentation if the re-sale price is 100 percent over the purchase price. Such documentation must include an appraisal from another appraiser. The mortgagee ma… | |||
| 24:24:2.1.1.2.4.1.83.41 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.38 Location of dwelling. | HUD | [61 FR 36264, July 9, 1996] | At the time a mortgage is insured there must be located on the mortgaged property one or more dwellings designed principally for residential use for not more than four families. | |||
| 24:24:2.1.1.2.4.1.83.42 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.39 Standards for buildings. | HUD | The buildings on the mortgaged property must conform with the standards prescribed by the Commissioner. | ||||
| 24:24:2.1.1.2.4.1.83.43 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.40 Location of property. | HUD | [49 FR 12697, Mar. 30, 1984, as amended at 61 FR 36264, July 9, 1996] | The mortgaged property shall be located within the United States, Puerto Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, and American Samoa. The mortgaged property, if otherwise acceptable to the Commissioner, may be located in any community where the housing standards meet the requirements of the Commissioner. | |||
| 24:24:2.1.1.2.4.1.83.44 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.41 Free assumability; exceptions. | HUD | [58 FR 42648, Aug. 11, 1993; 59 FR 15112, Mar. 31, 1994] | (a) Definitions. As used in this section: (1) Low- or moderate-income housing means housing which is designed to be affordable, taking into account available financing, to individuals or families whose household income does not exceed 115 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families. The Secretary may approve a higher percentage up to 140 percent. (2) Eligible governmental or nonprofit program means a program operated pursuant to a program established by Federal law, operated by a State or local government, or operated by an eligible nonprofit organization, if the program is designed to assist the purchase of low-or moderate-income housing including rental housing. (3) Legal restrictions on conveyance means any provision in any legal instrument, law or regulation applicable to the mortgagor or the mortgaged property, including but not limited to a lease, deed, sales contract, declaration of covenants, declaration of condominium, option, right of first refusal, will, or trust agreement, that attempts to cause a conveyance (including a lease) made by the mortgagor to: (i) Be void or voidable by a third party; (ii) Be the basis of contractual liability of the mortgagor for breach of an agreement not to convey, including rights of first refusal, pre-emptive rights or options related to mortgagor efforts to convey; (iii) Terminate or subject to termination all or a part of the interest held by the mortgagor in the mortgaged property if a conveyance is attempted; (iv) Be subject to the consent of a third party; (v) Be subject to limits on the amount of sales proceeds retainable by the seller; or (vi) Be grounds for acceleration of the insured mortgage or increase in the interest rate. (4) Tax-exempt bond financing means financing which is funded in whole or in part by the proceeds of qualified mortgage bonds described in section 143 of the Internal Revenue code of 1986, or any successor section, on which the interest is ex… | |||
| 24:24:2.1.1.2.4.1.83.45 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.42 Rental properties. | HUD | [56 FR 27692, June 17, 1991, as amended at 61 FR 36264, July 9, 1996] | (a) A mortgage on property upon which there is a dwelling to be rented by the mortgagor shall not be eligible for insurance if the property is a part of, or adjacent or contiguous to, a project, or group of similar rental properties, in which the mortgagor has a financial interest in eight or more dwelling units. (b) Paragraph (a) of this section shall not apply where: (1) A mortgage qualifies as a rehabilitation loan under § 203.50 of this part; (2) The mortgage is to be used for the rehabilitation of property located in a specific area or neighborhood that has been targeted by a State or local government for redevelopment, in accordance with a specific program that involves substantial public or private commitments in support of neighborhood improvement or redevelopment; and (3) The State or local government has approved, and has submitted to the Commissioner a plan describing the program of neighborhood redevelopment and revitalization, including the geographic area targeted for redevelopment, and the nature and proportion of public or private commitments that have been made in support of the redevelopment program. (c) No two-, three-, or four-family dwelling, and no single-family dwelling, if it is part of a group of five or more single-family dwellings held by the same mortgagor, or any part or unit thereof, shall be rented or offered for rent for transient or hotel purposes, as defined in § 203.16, so long as the dwelling is subject to any insured mortgage. | |||
| 24:24:2.1.1.2.4.1.83.46 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43 Eligibility of miscellaneous type mortgages. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 45 FR 30602, May 8, 1980; 47 FR 29525, July 7, 1982; 52 FR 4139, Feb. 10, 1987; 52 FR 37287, Oct. 6, 1987; 52 FR 44861, Nov. 23, 1987; 53 FR 8880, Mar. 18, 1988; 55 FR 34805, Aug. 24, 1990; 55 FR 38033, Sept. 14, 1990; 61 FR 36264, July 9, 1996] | (a) A mortgage which meets the requirements of this subpart, except as modified by this section, shall be eligible for insurance under this subpart subject to compliance with the additional requirements of this section. (b) The mortgage may be accepted for insurance if: (1) Executed in connection with the sale by the Government, or any agency or official thereof, of any housing acquired or constructed under Public Law 849, Seventy-sixth Congress, as amended; Public Law 781, Seventy-sixth Congress, as amended; or Public Law 9, 73 or 353, Seventy-seventh Congress, as amended (including any property acquired, held or constructed in connection with such housing or to serve the inhabitants thereof); or (2) Executed in connection with the sale by the Public Housing Administration, or by any public housing agency with the approval of the said Administration, or any housing (including any property acquired, held or constructed in connection with such housing or to serve the inhabitants thereof) owned or financially assisted pursuant to the provisions of Public Law 671, Seventy-sixth Congress; or (3) Executed in connection with the sale by the Government, or any agency or official thereof, or any of the so-called Greenbelt towns, or parts thereof, including projects, or parts thereof, known as Greenhills, OH; Greenbelt, MD; and Greendale, WI, developed under the Emergency Relief Appropriation Act of 1935; or of any of the village properties or employee's housing under the jurisdiction of the Tennessee Valley Authority; or of any housing under the jurisdiction of the Department of the Interior located within the town area of Coulee Dam, WA, acquired by the United States for the construction, operation, and maintenance of Grand Coulee Dam and its appurtenant works or of any permanent housing under the jurisdiction of the Department of the Interior constructed under the Boulder Canyon Project Act of December 21, 1928, as amended and supplemented, located within the Boulder City municipal area; or (4) Executed in connect… | |||
| 24:24:2.1.1.2.4.1.83.47 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43a Eligibility of mortgages covering housing in certain neighborhoods. | HUD | [36 FR 24508, Dec. 22, 1971, as amended at 55 FR 18493, May 2, 1990] | (a) A mortgage financing the repair, rehabilitation, construction, or purchase of property located in an older declining urban area shall be eligible for insurance under this subpart subject to compliance with the additional requirements of this section. (b) The mortgage shall meet all of the requirements of this subpart, except such requirements as are judged to be not applicable on the basis of the following determinations to be made by the Commissioner: (1) That the conditions of the area in which the property is located prevent the application of certain eligibility requirements of this subpart. (2) That the area is reasonably viable, and there is a need in the area for adequate housing for families of low and moderate income. (3) That the mortgage to be insured is an acceptable risk. (c) Mortgages complying with the requirements of this section shall be insured under this subpart pursuant to section 223(e) of the National Housing Act. Such mortgages shall be insured under and be the obligation of the Special Risk Insurance Fund. (d) For restrictions against approving mortgage insurance for a certain category of newly legalized alien, see 24 CFR part 49. | |||
| 24:24:2.1.1.2.4.1.83.48 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43b Eligibility of mortgages on single-family condominium units. | HUD | [84 FR 41875, Aug. 15, 2019] | (a) Definitions. As used in this part: (1) Condominium Association (Association) means the organization, regardless of its formal legal name that consists of homeowners within a Condominium Project for the purpose of managing the financial and common-area assets. (2) Condominium Project means the project in which one-family dwelling units are attached, semi-detached, detached, or manufactured housing units, and in which owners hold an undivided interest in the Common Elements. (3) Condominium Unit means real estate consisting of a one-family dwelling unit in a Condominium Project. (4) Common Elements means the Condominium Project's common areas and facilities including: Underlying land and buildings, driveways, parking areas, elevators, outside hallways, recreation and landscaped areas, and other elements described in the condominium declaration. (5) Rental for Transient or Hotel Purposes shall have the meaning given in section 513(e) of the National Housing Act (12 U.S.C. 1731b(e)). (6) Single-Unit Approval means approval of one unit in an unapproved Condominium Project under paragraph (i) of this section. (7) Site Condominium means: (i) A Condominium Project that consists entirely of single-family detached dwellings that have no shared garages or any other attached buildings; or (ii) A Condominium Project that: (A) Consists of single family detached or horizontally attached (townhouse) dwellings where the unit consists of the dwelling and land; and (B) Is encumbered by a declaration of condominium covenants or condominium form of ownership and does not contain any manufactured housing units. (b) Eligibility. A mortgage secured by a Condominium Unit shall be eligible for insurance under section 203 of the National Housing Act if it meets the requirements of this subpart, except as modified by this section. (c) Approval required. To be eligible for insurance under this section, a Condominium Unit must be located in a Condominium Project approved by HUD or a DELRAP mortgagee approv… | |||
| 24:24:2.1.1.2.4.1.83.49 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43c Eligibility of mortgages involving a dwelling unit in a cooperative housing development. | HUD | [42 FR 40431, Aug. 10, 1977, as amended at 45 FR 29278, May 2, 1980; 45 FR 76377, Nov. 18, 1980; 48 FR 12085, Mar. 23, 1983; 48 FR 28804, June 23, 1983; 49 FR 23584, June 6, 1984; 52 FR 48201, Dec. 21, 1987; 53 FR 8881, Mar. 18, 1988; 53 FR 9869, Mar. 28, 1988; 53 FR 34282, Sept. 6, 1988; 56 FR 24631, May 30, 1991; 58 FR 41002, July 30, 1993] | A mortgage involving a dwelling unit in a cooperative housing development which meets the requirements of this subpart, except as modified by this section, shall be eligible for insurance under section 203(n) of the National Housing Act. (a) The provisions of §§ 203.16a, 203.17, 203.18, 203.18a, 203.23, 203.24, 203.26, 203.37, 203.38, 203.43h, 203.43i, 203.43j, 203.44, 203.49, and 203.50 of this part do not apply to mortgages insured under section 203(n) of the National Housing Act. (b) As used in connection with the insurance of mortgages under this section and § 203.437 of this part: (1) The term mortgage shall mean a first lien given to secure a loan made to finance the unpaid purchase price of a Corporate Certificate together with the applicable Occupancy Certificate of a cooperative ownership housing corporation in which the permanent occupancy of the dwelling units is restricted to members of such corporation, and may refer both to a security instrument creating a lien, whether called a mortgage, deed of trust, security deed or another term used in a particular jurisdiction, as well as the credit instrument, or note, secured thereby. (2) Corporation shall mean an organization which holds title to a cooperative housing development which is covered by a blanket mortgage or mortgages insured by FHA under the National Housing Act. (3) Corporate Certificate shall mean such stock certificates, membership certificates, or other instruments which the laws of the jurisdictions in which the cooperative housing development is located require to evidence ownership of a specified interest in the corporation. (4) Occupancy Certificate shall mean a written instrument provided by the corporation to each holder of a Corporate Certificate which grants an exclusive right of possession of a specific dwelling unit in the cooperative housing development. (5) References in this subpart to a dwelling, residence or property which is sold, conveyed, covered by a mortgage or subject to a lien shall be construed to mea… | |||
| 24:24:2.1.1.2.4.1.83.50 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43d Eligibility of mortgages in certain communities. | HUD | [42 FR 57434, Nov. 2, 1977, as amended at 55 FR 34805, Aug. 24, 1990] | Notwithstanding any other requirements of this subpart, a mortgage covering a one- to four-family dwelling occupied by the mortgagor as a principal residence (as defined in § 203.18(f)(1)) is eligible for insurance if the following requirements are met: (a) The property is located in a community where the Secretary determines that: (1) Temporary adverse economic conditions exist throughout the community as a direct and primary result of outstanding claims to ownership of land in the community by an American Indian tribe, band, or Nation; (2) Such ownership claims are reasonably likely to be settled, by court action or otherwise; (3) As a direct result of the community's temporarily impaired economic condition, owners of homes in the community occupied as principal residences (as defined in § 203.18(f)(1)) have been involuntarily unemployed or underemployed and have, thus, incurred substantial reductions in income that significantly impair their ability to continue timely payment of their mortgages; (4) As a result, widespread mortgage foreclosures and distress sales of homes are likely in the community; and (5) Fifty or more individuals were joined as parties defendant or were members of a defendant class prior to December 31, 1976 in litigation involving claims to ownership of land in the community by an American Indian tribe, band or Nation. (b) The mortgagor, as a direct result of the community's temporarily impaired economic condition, has been involuntarily unemployed or underemployed and has thus incurred a substantial reduction in income which significantly impairs the owners ability to continue timely payment of the mortgage. (c) The mortgagee certifies that the security instrument has been recorded and is a good and valid first lien on the property except for the claims specified in paragraph (a)(1) of this section. (d) The mortgagee agrees upon insurance of the mortgage to assign such mortgage to the Secretary within 30 days from the date of the issuance of the insurance certificate and if such… | |||
| 24:24:2.1.1.2.4.1.83.51 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43e [Reserved] | HUD | |||||
| 24:24:2.1.1.2.4.1.83.52 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43f Eligibility of mortgages covering manufactured homes. | HUD | [48 FR 7735, Feb. 24, 1983, as amended at 61 FR 36264, July 9, 1996] | A mortgage covering a one-family manufactured home (as defined in 24 CFR 3280.2(a)(16)) that meets the requirements of this subpart, except as modified by this section, shall be eligible for insurance pursuant to this subpart. (a) The manufactured home, when erected on site, shall have floor space area of not less than four hundred square feet and shall have been constructed in conformance with the National Manufactured Home Construction and Safety Standards as evidenced by a certification label affixed thereto in accordance with 24 CFR 3280.8. (b) The mortgage shall cover the manufactured home and site, shall constitute a mortgage on a property classified and taxed as real estate, and shall have a term of not more than 30 years from the date of the beginning of amortization. (c) In the case of a manufactured home which has not been permanently erected on a site for more than one year prior to the date of the application for mortgage insurance: (i) The manufactured home shall be erected on a site-built permanent foundation that meets or exceeds applicable requirements of the Minimum Property Standards for One- and Two-Family Dwellings, 4900.1 (see 24 CFR 200.929(b)(1)) (MPS) and shall be permanently attached thereto by anchoring devices adequate for all loads identified in the MPS. The towing hitch or running gear, which includes axles, brakes, wheels and other parts of the chassis that operate only during transportation, shall have been removed. The finished grade level beneath the manufactured home shall be at or above the 100-year return frequency flood elevation. The site, site improvements, and all other features of the mortgaged property not addressed by the Manufactured Home Construction and Safety Standards shall meet or exceed applicable requirements of the MPS. (ii) The space beneath the manufactured home shall be enclosed by continuous foundation-type construction designed to resist all forces to which it is subject without transmitting forces to the building superstructure. The enclosure shall be… | |||
| 24:24:2.1.1.2.4.1.83.53 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43g Eligibility of mortgages in certain communities. | HUD | [49 FR 21319, May 21, 1984, as amended at 55 FR 34805, Aug. 24, 1990] | (a) A mortgage which meets the requirements of this subpart shall be eligible for insurance without regard to the limitation in this part relating to marketability of title under the following conditions: (1) The mortgagor is to occupy the dwelling as a principal residence (as defined in § 203.18(f)(1)). (2) The defect or potential defect in title is a direct and primary result of outstanding claims to ownership of land in the community by an American Indian tribe, band, group or Nation. (3) Fifty or more individual owners were joined as parties defendant or were members of a defendant class before April 1, 1980 in litigation involving claims to ownership of land in the community in which the property is located by an American Indian tribe, band, group or Nation pursuant to a dispute involving the Articles of Confederation, the Trade and Intercourse Act of 1790 or any similar State or Federal law. (4) Such ownership claims are reasonably likely to be settled by court action or otherwise. (5) Temporary adverse economic conditions exist throughout the community as a direct and primary result of such claims. (b) Mortgages complying with the requirements of this subpart as modified by this section shall be the obligation of the Special Risk Insurance Fund. | |||
| 24:24:2.1.1.2.4.1.83.54 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43h Eligibility of mortgages on Indian land insured pursuant to section 248 of the National Housing Act. | HUD | [51 FR 21871, June 16, 1986, as amended at 53 FR 34282, Sept. 6, 1988; 57 FR 58347, Dec. 9, 1992; 61 FR 36264, July 9, 1996] | A mortgage covering a one- to four-family residence located on Indian land shall be eligible for insurance pursuant to section 248 of the National Housing Act (12 U.S.C. 1715z-13), notwithstanding otherwise applicable requirements related to marketability of title, if the mortgage meets the requirements of this subpart as modified by this section and is made by an Indian Tribe or on a leasehold estate, by an Indian who will occupy it as a principal residence. Mortgage insurance on cooperative shares is not authorized under this section. (a) Exemptions. (1) The provisions of subparts I, J, and M of part 200, and § 203.30, shall not apply to approval of mortgagors for mortgages insured under this section if the Indian tribe to which the prospective mortgagor belongs is subject to the Indian Civil Rights Act. (2) In the case of an Indian tribe which is not subject to the Indian Civil Rights Act, the authorities cited in paragraph (a)(1) of this section shall apply, but any preference in the tribe's approval of the sale or assumption of a lease and mortgage under this section in favor of an eligible Indian over a non-Indian shall not be considered to be a violation of subpart I, J or M. (b) Eviction procedures. Before HUD will insure a mortgage on Indian land, the tribe having jurisdiction over such property must certify to the HUD Field Office that it has adopted and will enforce procedures for eviction of defaulted mortgagors where the insured mortgage has been foreclosed. (c) Approval of lease and mortgage. The lease must be on a form prescribed by HUD. The mortgage must be on a form which meets the requirements of § 203.17(a)(2). Before HUD will insure any mortgage under this section, the mortgagee must demonstrate that the Bureau of Indian Affairs, U.S. Department of Interior, has approved both the lease and mortgage. (d) Construction advances. The Commissioner may issue a commitment for the insurance of advances made during construction and a Direct Endorsement mortgagee may request insurance of a… | |||
| 24:24:2.1.1.2.4.1.83.55 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43i Eligibility of mortgages on Hawaiian Home Lands insured pursuant to section 247 of the National Housing Act. | HUD | [52 FR 8067, Mar. 16, 1987, and 52 FR 28470, July 30, 1987, as amended at 53 FR 8881, Mar. 18, 1988; 53 FR 34282, Sept. 6, 1988; 57 FR 58347, Dec. 9, 1992; 61 FR 36264, July 9, 1996; 62 FR 30226, June 2, 1997; 69 FR 33525, June 15, 2004] | (a) Eligibility. A mortgage on a homestead lease granted by the Department of Hawaiian Home Lands covering a one- to four-family residence located on Hawaiian home lands is eligible for insurance pursuant to section 247 of the National Housing Act (12 U.S.C. 1715z-12) if the mortgagor is a native Hawaiian who will occupy it as a principal residence, and if the mortgage meets the requirements of this subpart as modified by this section. Mortgage insurance on cooperative shares under § 203.43c on homes in federally impacted areas under § 203.43e is not authorized under this section. (b) Exemptions from other regulations. The provisions of subparts I, J, and M of part 200, and § 203.30, to the extent that these provisions would otherwise prohibit preferences in favor of Native Hawaiians in the leasing, sale or other disposition of Hawaiian home lands, do not apply to mortgages insured pursuant to section 247 of the National Housing Act. The first lien requirement contained in § 203.17 also does not apply to mortgages insured pursuant to section 247 of the National Housing Act. (c) Definitions. (1) Department of Hawaiian Home Lands (DHHL) is a Department of the State of Hawaii responsible for management of Hawaiian home lands for the benefit of native Hawaiians. (2) Hawaiian home lands means all lands given the status of Hawaiian home lands under section 204 of the Hawaiian Homes Commission Act of 1920 (42 Stat. 110), or under the corresponding provision of the Constitution of the State of Hawaii adopted under section 4 of the Act entitled “An Act to provide for the admission of the State of Hawaii into the Union,” approved March 18, 1959 (73 Stat. 5). (3) Native Hawaiian means any descendant of not less than one-half part of the blood of the races inhabiting the Hawaiian islands before January 1, 1778, or, in the case of an individual who is awarded an interest in a lease of Hawaiian home lands through transfer or succession, such lower percentage as may be established for such transfer or succession und… | |||
| 24:24:2.1.1.2.4.1.83.56 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.43j Eligibility of mortgages on Allegany Reservation of Seneca Nation of Indians. | HUD | [52 FR 48201, Dec. 21, 1987, and 53 FR 9869, Mar. 28, 1988, as amended at 54 FR 32970, Aug. 11, 1989; 55 FR 34805, Aug. 24, 1990] | A mortgage on a leasehold estate covering a one- to four-family residence located on the Allegany Reservation of the Seneca Nation of Indians in the State of New York is eligible for insurance if the mortgage meets the requirements of this subpart as modified by this section. (a) Title. This section applies only to a mortgage which: (1) Does not meet the requirements of § 203.37; (2) Is on a leasehold under a lease with a termination date in February 1991, which provides for renewal in accordance with the Act of February 19, 1875 (18 Stat. 330) and the Act of September 30, 1890 (26 Stat. 558). A mortgage may not be on a leasehold created by a lease which is executed after the effective date of this section as a renewal or replacement of a lease described in paragraph (a)(2) of this section. A mortgage may not be secured by any other right of occupancy created in lieu of a leasehold after the effective date of this section by agreement of the Seneca Nation, court order, law or any other means. (b) Provisions of mortgage. The Secretary will prescribe special mortgage provisions in the form of a mortgage rider in order better to secure the mortgagee, including: (1) Authorization for the mortgagee to exercise the option of lease renewal if the mortgagor fails to do so, and to recover from the mortgagor authorized expenses incurred to obtain lease renewal; and (2) Making a mortgagor failure to take steps necessary for less renewal an event of default under the mortgage. (c) Secretary agreement with mortgagor. The mortgagor must enter into an agreement with the Secretary and such other parties as the Secretary may require regarding actions to be taken to obtain either a renewal of the lease or a new lease. (d) Certification. The borrower must certify that it has received disclosures, in a form prescribed by the Secretary, explaining the status of the lease and the consequences of nonrenewal. The disclosure shall include a discussion of the fact that a mortgagor who does not obtain a lease renewal and l… | |||
| 24:24:2.1.1.2.4.1.83.57 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.44 Eligibility of advances. | HUD | [61 FR 36264, July 9, 1996] | Mortgagees may not make open-end advances under section 225 of the National Housing Act (12 U.S.C. 1715p) in connection with the mortgages insured under this chapter. | |||
| 24:24:2.1.1.2.4.1.83.58 | 24 | Housing and Urban Development | II | B | 203 | PART 203—SINGLE FAMILY MORTGAGE INSURANCE | A | Subpart A—Eligibility Requirements and Underwriting Procedures | § 203.45 Eligibility of graduated payment mortgages. | HUD | [41 FR 42949, Sept. 29, 1976, as amended at 45 FR 33966, May 21, 1980; 45 FR 56341, Aug. 24, 1980; 49 FR 19453, 19458, May 8, 1984; 49 FR 23584, June 6, 1984; 52 FR 48201, Dec. 21, 1987; 53 FR 8881, Mar. 18, 1988; 53 FR 9869, Mar. 28, 1988; 55 FR 34805, Aug. 24, 1990; 58 FR 41003, July 30, 1993] | A mortgage containing provisions for varying rates of amortization corresponding to anticipated variations in family income shall be eligible for insurance under this subpart subject to compliance with the additional requirements of this section. (a) The mortgage may provide that any interest which accrues and which is unpaid pursuant to a financing plan approved by the Secretary, shall be added to the principal obligation of the mortgage. (b) The mortgage shall bear interest at the rate agreed upon by the mortgagee and the mortgagor. (c) The mortgage amount shall not exceed the lesser of: (1) The limits prescribed by §§ 203.18, 203.18a, and 203.29; or, (2) An amount which, when added to all accrued mortgage interest which will be unpaid under a financing plan approved by the Secretary, shall not exceed 97 percent of the appraised value of the property covered by the mortgage as of the date the mortgage is accepted for insurance. However, if the mortgagor is a veteran, the mortgage amount, when added to all accrued mortgage interest which will be unpaid under a financing plan approved by the Secretary, shall not exceed the applicable limits prescribed for veterans in § 203.18(a). (d) The mortgage must contain complete amortization provisions satisfactory to the Secretary requiring monthly payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Secretary. The sum of the payments to principal and/or interest may increase annually for a period of five years at a rate of 2 1/2 percent, 5 percent or 7 1/2 percent or for a period of ten years at a rate of 2 percent or 3 percent. Any required increase in payments shall occur on the anniversary date of the beginning of amortization. On the termination of the period of annual increases of payments, the sum of the payments to principal and interest in each month shall be substantially the same. (e) The mortgagee shall fully explain to the mortgagor the nature of the obligation undertaken and the mortgagor shall certify that … |
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CREATE TABLE cfr_sections (
section_id TEXT PRIMARY KEY,
title_number INTEGER,
title_name TEXT,
chapter TEXT,
subchapter TEXT,
part_number TEXT,
part_name TEXT,
subpart TEXT,
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section_number TEXT,
section_heading TEXT,
agency TEXT,
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