[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: 24CFR203.43d]



[Page 173]

 

                 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.  203.43d  Eligibility of mortgages in certain communities.



    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 Sec.  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 Sec.  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 assignment does not 

take place, the contract of insurance is terminated and becomes null and 

void.

    (e) Any individual, organization, institution or governmental agency 

shall be considered a mortgagee for the purposes of this section.

    (f) Mortgages complying with the requirements of this section shall 

be insured under this subpart pursuant to section 203(o) of the National 

Housing Act. Such mortgages shall be insured under and be the obligation 

of the Special Risk Insurance Fund.

    (g) The mortgage was executed and filed for record on or before 

October 12, 1977.



[42 FR 57434, Nov. 2, 1977, as amended at 55 FR 34805, Aug. 24, 1990]