[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: 24CFR203.27]



[Page 159-160]

 

                 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.  203.27  Charges, fees or discounts.



    (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, the charge not to exceed:

    (i) $20 dollars or one percent of the original principal amount of 

the mortgage (excluding any one-time mortgage insurance premium paid 

pursuant to Sec.  203.280), whichever is the greater; or

    (ii) $350 dollars or two and one-half percent of the original 

principal amount of the mortgage (excluding any one-time mortgage 

insurance premium paid pursuant to Sec.  203.280), whichever is the 

greater, with respect to mortgages on property under construction or to 

be constructed where the mortgagee



[[Page 160]]



makes partial disbursements and inspections of the property during the 

progress of construction.

    (iii) If the mortgage involves repair or rehabilitation, and the 

mortgagee meets the conditions of paragraph (a)(2)(ii) of this section 

relating to disbursements and inspections, the charge prescribed in 

paragraph (a)(2)(ii) of this section may be collected in connection with 

that portion of the mortgage applied to such repair or rehabilitation. 

The charge with respect to any part of the mortgage not applied to 

repair or rehabilitation, or any part of the mortgage so applied which 

does not meet the conditions of paragraph (a)(2)(ii) of this section 

relating to disbursements and inspections, shall be limited to that 

provided in paragraph (a)(2)(i) of this section.

    (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 Sec.  

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 such compensation as is 

satisfactory to the mortgagor in order to obtain mortgage financing.



[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]