24 Cfr 203.269

§ 203.269

24 CFR Ch. II (4–1–13 Edition)

(c) A pro rata MIP shall not be due or
payable where the mortgagee notifies
the Commissioner that foreclosure or
other action to acquire the property
has been completed and that the property will not be conveyed to the Commissioner in exchange for insurance
benefits. Any MIP due and paid after
the institution of foreclosure or the
date the property was otherwise acquired by the mortgagee will be refunded to the mortgagee upon receipt
by the Commissioner of the notice
from the mortgagee that the property
will not be conveyed to the Commissioner.
[48 FR 28805, June 23, 1983, as amended at 61
FR 37801, July 19, 1996]

§ 203.269 Method of payment of periodic MIP.
In cases that the Commissioner
deems appropriate, the Commissioner
may require, by means of instructions
communicated to all affected mortgagees, that periodic MIP be remitted
electronically.
[60 FR 34138, June 30, 1995]

pmangrum on DSK3VPTVN1PROD with CFR

OPEN-END INSURANCE CHARGES—ALL
MORTGAGES
§ 203.270 Open-end insurance charges.
(a) Required charge. In the case of an
insured open-end advance the mortgagee shall pay to the Commissioner
an open-end insurance charge.
(b) Payment of charge for mortgages
with periodic MIP. The amount of any
insured open-end advance shall be
added to the average outstanding principal obligation of the mortgage for
the purpose of determining the amount
of periodic MIP as provided in §§ 203.260
through 203.268, except that the initial
additional charge shall be prorated to
cover the period beginning with the
first day of the month following the
issuance of a certificate evidencing the
insurance of the open-end advance and
ending on the due date of the next MIP.
(c) Payment of charge for mortgages
with one-time or up-front MIP. In the
case of a mortgage with a one-time or
up-front MIP pursuant to § 203.280,
§ 203.284, or § 203.285 of this part, the insurance charge shall be in an amount
equal to 1⁄2 percent per annum of the
outstanding principal obligation of the

open-end advance. Sections 203.260
through 203.268 shall apply to the openend charge on a mortgage with a onetime or up-front MIP, except that all
references to amortization dates shall
refer to amortization dates of the openend advance, references to MIP shall
refer to the open-end insurance charge,
and references to outstanding principal
obligation of the mortgage shall refer
to outstanding principal obligation of
the open-end advance.
(d) Method of payment—all mortgages.
The payment of any open-end insurance charge under this subpart shall be
made to the Commissioner by the
mortgagee either in cash or debentures
issued by the Mutual Mortgage Insurance Fund at par plus accrued interest.
[48 FR 28806, June 23, 1983, as amended at 56
FR 24624, May 30, 1991; 57 FR 15211, Apr. 24,
1992; 57 FR 46983, Oct. 14, 1992; 58 FR 41003,
July 30, 1993]

MORTGAGE INSURANCE PREMIUMS—ONETIME PAYMENT
§ 203.280 One-time or Up-front MIP.
For mortgages for which a one-time
or up-front MIP is to be charged in accordance with §§ 203.259a, 203.284, or
203.285, the mortgagee shall, as a condition to the endorsement of the mortgage for insurance, pay to the Commissioner for the account of the mortgagor, in a manner prescribed by the
Commissioner, a premium representing
the total obligation for the insuring of
the mortgage by the Commissioner or
the up-front portion of the total obligation, as applicable, within 10 calendar
days after the date of loan closing or
within 10 calendar days after the date
of disbursement of the mortgage proceeds, whichever is later.
[70 FR 19669, Apr. 13, 2005]

§ 203.281 Calculation of one-time MIP.
(a) The applicable premium percentage determined under paragraph (b) of
this section assumes, for purposes of
calculation, that the entire amount of
the one-time MIP is added to the loan
amount. The amount of the one-time
MIP shall be determined by multiplying the loan amount otherwise insurable under this part by the applicable premium percentage, subject to adjustment for the portion of the MIP, if

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