[Code of Federal Regulations]

[Title 24, Volume 2]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR203.12]



[Page 151]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

 CHAPTER II--OFFICE OF ASSISTANT SECRETARY FOR HOUSING--FEDERAL HOUSING 

        COMMISSIONER, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

 

PART 203_SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents

 

     Subpart A_Eligibility Requirements and Underwriting Procedures

 

Sec.  203.12  Mortgage insurance on proposed or new construction.



    (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 

(or developer) in the same subdivision may make reference to the 

existing previously approved AFHMP.



[64 FR 56110, Oct. 15, 1999]