[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: 24CFR203.17]



[Page 152-153]

 

                 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.  203.17  Mortgage provisions.



    (a) Mortgage form. (1) The term mortgage as used in this part, 

except Sec.  203.43c, means a first lien as is commonly given to secure 

advances on, or



[[Page 153]]



the unpaid purchase price of, real estate under the laws of the 

jurisdiction where the property is located, 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)(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 contian 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.



[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]