[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: 24CFR203.22]



[Page 158]

 

                 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.  203.22  Payment of insurance premiums or charges; prepayment 

privilege.



    (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 Sec.  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 on 

any installment due date, but shall not provide for the payment of any 

charge on account of such prepayment.



[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]