Regulations pursuant to any section or title of the National Housing Act in any instance requiring the approval of the Commissioner.

(b) (1) To approve the insurance of mortgages taken as security in connection with the sale of properties conveyed to the Federal Housing Commissioner.

(2) To the positions in this section there are delegated the duties and functions as set forth in § 200.95.

[26 F.R. 7389, Aug. 12, 1961, as amended at 28 F.R. 9986, Sept. 14, 1963; 34 F.R. 6576, Apr. 17, 1969] § 200.98

Chief Underwriter and Deputy, Chief Mortgage Credit Examiner and Deputy, Chief Appraiser and Deputy, Commitment Appraiser, and Commitment Mortgage Credit Examiner. To the positions of Chief Underwriter, Deputy Chief Underwriter, Chief Mortgage Credit Examiner, Deputy Chief Mortgage Credit Examiner, Chief Appraiser, Deputy Chief Appraiser, and to each of them, and with respect to the issuance of commitments to the positions of Commitment Appraiser and Commitment Mortgage Credit Examiner, and to each of them, there is delegated the following duties and functions:

(a) To issue commitments for insurance under any home mortgage insurance program and to approve modifications of such commitments for insurance.

(b) To make the high cost determinations for the Federal National Mortgage Association prescribed in section 305(g) of the National Housing Act.

[30 F.R. 6116, Apr. 30, 1965, as amended at 31, F.R. 12792, Sept. 30, 1966; 33 F.R. 7490, May 21, 1968]

§ 200.99

Real Property Officer.

To the position of Real Property Officer and to each of them there is delegated the duties and functions as set forth in paragraphs (v) and (w) of § 200.95. [28 F.R. 2496, Mar. 14, 1963]

§ 200.100 Closing Clerk.

To the position of Closing Clerk and to each of them there is delegated the duty and function to execute in the name of the Commissioner, as authorized agent, mortgage insurance certificates under any home mortgage program and any other documents requiring the signature of the authorized agent incident to completion of the closing of the mortgage insurance transaction.

[29 F.R. 12070, Aug. 25, 1964]

§ 200.101 Assistant Commissioner for Property Disposition.

To the position of Assistant Commissioner for Property Disposition there is delegated the duties and functions set forth in § 200.95 as they apply to the acquisition, maintenance, and disposition of real property and the servicing of one- to four-family mortgages. [26 F.R. 7389, Aug. 12, 1961. Redesignated at 28 F.R. 2496, Mar. 14, 1963]

§ 200.102 Assistant Commissioners.

To the position of Assistant Commissioner, and to each of them, in addition to the authority granted under the provisions of section 204(g) of the National Housing Act, there is delegated the following duties and functions:

(a) To execute in the name of the Commissioner proofs of claim against bankrupt, insolvent and decedent estates.

(b) To execute releases of obligations, including notes, judgments and other evidences of indebtedness, and to release liens of any kind held as security for such obligations.

(c) To execute the power and authority vested in the Commissioner under the regulations governing property and obligations held by the Federal Housing Commissioner and approved by the Secretary of the Treasury.

[26 F.R. 7390, Aug. 12, 1961, as amended at 34 F.R. 9383, June 14, 1969. Redesignated at 28 F.R. 2496, Mar. 14, 1963]

§ 200.103 Division Directors and their superiors; Field Office Directors, Deputies, and Assistants, and others. To the position of Assistant Commissioner and Deputy Assistant Commissioner, Special Assistant and Deputy Special Assistant, Assistant to the Commissioner, Defense Coordinator, Division Director and Deputy Division Director, Field Office Director, Deputy Field Office Director, Assistant Field Office Director, there is delegated the duty and function to certify that official long distance telephone calls made were necessary in the interest of the Government, pursuant to 31 U.S.C. 680a (section 4 of the Act approved May 10, 1939, 53 Stat. 738).

[34 F.R. 6577, Apr. 17, 1969]

§ 200.104 Classified Information Control Officer.

To the position of Classified Information Control Officer there is delegated the following duties and functions:

To the position of Personnel Security Officer and under his direction and supervision to the position of Deputy Security Officer there is delegated the following duties and functions:

(a) To be responsible for the establishment and administration of a security program in the Federal Housing Administration.

(b) To participate in conferences and discussions as the security representative of the FHA with officials of other government agencies for the purpose of making effective the National Personnel Security Program.

(c) To clear personnel of the FHA for sensitive positions.

(d) To evaluate security reports and to take final action in security cases of all types.

(e) To participate in proceedings before security hearing boards in any instance where an FHA employee is involved.

(f) To prepare reports and releases as required by the Attorney General and the Civil Service Commission in the administration of the FHA security program.

[26 F.R. 7390, Aug. 12, 1961. Redesignated at 28 F.R. 2496, Mar. 14, 1963]

§ 200.106 Assistant Commissioner for Field Operations and Deputy; Directors, Deputy Directors, Assistant Directors, and Administrative Officers and Chief Clerks in FHA Field Offices; Assistant Commissioner for Administration and Deputy.

(a) To the Assistant Commissioner for Field Operations; Deputy Assistant Commissioner for Field Operations; Directors, Deputy Directors, Assistant Directors, Administrative Officers, and Chief Clerks in FHA Field Offices; and

the Assistant Commissioner for Administration, pursuant to 5 U.S.C. 16a, there is delegated the authority to administer the oath required by section 1757, Revised Statutes, as amended (5 U.S.C. 16), incident to entrance into the executive branch of the Federal Government, or any other oath required by law in connection with employment therein, such oath to be administered without charge or fee and to have the same force and effect as oaths administered by officers having seals.

(b) The authority of this section covers the administration of Appointment Affidavits, Standard Form 61, and oaths to witnesses in any matter pending before the United States Civil Service Commission.

[28 F.R. 2496, Mar. 14, 1963, as amended at 34 F.R. 9383, June 14, 1969]

§ 200.107 National emergency.

To all Field Office Directors, Deputy Directors, Assistant Directors, and Chief Underwriters there is delegated, immediately upon declaration by the President of a national emergency or in event of an enemy attack, authority to designate certifying officers and to revoke such designations and to execute and submit to the Treasury Department necessary statements and schedules with respect thereto, pursuant to Public Law 389, approved December 29, 1941 (31 U.S.C. 82b-82e), and the standards and procedures of the Secretary of the Treasury thereunder. This authority shall be exercised only in the event the Commissioner is unable to act in his official capacity.

[28 F.R. 2496, Mar. 14, 1963]

§ 200.108 Director of the Management and Operations Assistance Division; Deputy Director of the Management and Operations Assistance Division;

and Chief of the Contracting Section.

To the position of Director of the Management and Operations Assistance Division and under his general supervision to the positions of Deputy Director of the Management and Operations Assistance Division; and Chief of the Contracting Section, and to each of them, there is delegated the following basic authority and functions:

(a) To act for the Assistant SecretaryCommissioner in the following instances:

(1) In approving the settlement of tort claims for and against the Assistant Secretary-Commissioner.

(2) In approving the settlement of claims not exceeding $6,500 made by employees for damage or loss of personal property occurring incident to performing Government service.

(3) In executing releases or other instruments required in connection with the settlement of claims under subparagraphs (1) and (2) of this paragraph.

(b) To execute as Contracting Officer or cause to be executed under his direction all contracts for goods and services for the repair, construction, improvement, removal, demolition or alteration, maintenance, and operation of acquired properties, including properties held as a result of FHA operations by the Secretary of Housing and Urban Development as mortgagee in possession, and broker management services in connection with such properties, and the publication of notices and advertisements in newspapers, magazines, and periodicals.

(c) To execute as Contracting Officer contracts for credit reports.

(d) To approve for payment travel and other expenses incidental to the transfer of an employee to a new duty station, as provided in the Administrative Expenses Act.

[31 F.R. 16495, Dec. 24, 1966, as amended at 34 F.R. 9383, June 14, 1969]

§ 200.109 HUD Regional Administrators (except Regional Administrator, Region VII) and Assistant Regional Administrators for FHA.

To the position of Regional Administrator, and to each of them, except the Regional Administrator, Region VII, and to the position of Assistant Regional Administrator for FHA, and to each of them under the general supervision of the appropriate Regional Administrator there is assigned authority as follows:

(a) To allocate below market interest rate funds to eligible section 221(d) (3) projects and to make reservations of contract authority for rent supplements and for interest assistance under section 236 of the National Housing Act and to modify or cancel such allocations and reservations.

(b) To approve or disapprove the eligibility of nonprofit sponsors and nonprofit mortgagors.

(c) To recommend to the Assistant Commissioner for Programs approval of applications for financial assistance and approval of waiver of repayment of loans made under section 207 of the Appa

lachian Regional Development Act of 1965, as amended.

(d) To approve or disapprove, following initial endorsement, increases in project mortgage amounts recommended or referred by FHA field offices.

The Regional Administrator, Region III, will exercise the authority assigned under this paragraph for the Puerto Rico jurisdiction.

(e) To approve or disapprove loans for housing for the elderly or handicapped under section 202 of the Housing Act of 1959 and to make contracts and execute documents in connection therewith and, with respect to project applications filed under section 202 of the Housing Act of 1959 and converted to applications for mortgage insurance under section 236 of the National Housing Act, to determine feasibility under section 236, issue commitments for mortgage insurance under section 236, and insure such mortgages pursuant to such commitments, including approval of insured advances during construction.

[32 F.R. 12475, Aug. 29, 1967, as amended at 33 F.R. 6656, May 1, 1968; 33 F.R. 12188, Aug. 29, 1968; 34 F.R. 13030, Aug. 12, 1969]

Subpart E-Mortgage Insurance
Procedures and Processing

§ 200.140 Scope of subpart.

This subpart is confined to general procedures and processing covering mortgage insurance irrespective of the particular program involved. More specific information regarding procedures and processing, including variances under the several titles and sections of the National Housing Act, are treated in other provisions of this chapter.

[33 F.R. 7390, Aug. 12, 1961]

§ 200.141 Procedure in general.

All mortgage insurance programs involve four basic steps. First, applications for insurance; second, commitments for insurance; third, insurance endorsements; and fourth, claims for

losses.

[26 F.R. 7390, Aug. 12, 1961]

APPLICATION FOR INSURANCE § 200.142 Form and filing.

Any financial institution approved by the Commissioner as a mortgagee may apply for mortgage insurance. The application form may be obtained from any Federal Housing Administration field

office. The application must be submitted to the office having jurisdiction over the area in which the property described in the application and offered as security is located.

[26 F.R. 7390, Aug. 12, 1961]

§ 200.143

Purpose and content.

Every application, whether for insurance of a home type or project type mortgage, sets forth the required information to enable FHA to determine eligibility under a particular program. The eligibility consideration covers three general areas as follows:

(a) The eligibility of the proposed loan under the statute, i.e., term, interest rate, mortgage amount, and ratios of loan to value or replacement cost.

(b) The eligibility of the property with respect to compliance with FHA statutory and regulatory requirements.

(c) (1) The eligibility of the mortgagor with regard to the mortgagor's ability to carry and pay the proposed mortgage debt.

(2) Applications are designed to meet the requisites of the several programs. Accordingly, the applications will call for certain supplemental information, such as drawings and specifications, financial statements, exhibits and other information appropriate to enable the FHA to make the necessary determinations concerning eligibility.

[26 F.R. 7390, Aug. 12, 1961]

Each application must be accompanied by a fee for examination in an amount in effect on the date the application is filed as indicated by the regulations covering the particular insurance program. [26 F.R. 7390, Aug. 12, 1961]

§ 200.145 Technical analysis and underwriting processing.

(a) When an application for mortgage insurance is received in the Field Office it is recorded and a receipt issued therefor. The proposed transaction is then analyzed to determine whether the application and supporting information is in proper form for underwriting processing.

(b) Underwriting processing involves consideration of the elements having to do with eligibility for insurance including review of the planning, construction, and specifications, cost estimation and valuation, and credit analysis. The findings are included in a report and recom

mendation which is the basis for the commitment.

[26 F.R. 7390, Aug. 12, 1961]

§ 200.146 Acceptance, rejection and re

consideration.

(a) If an application for mortgage insurance meets the eligibility requirements a commitment for insurance is issued.

(b) If the application for mortgage insurance is not eligible for processing or does not qualify, this fact is reported to the applicant together with the reason for the rejection.

(c) A rejected application for mortgage insurance may be reconsidered upon written request to the Field Office which rejected the application.

[26 F.R. 7390, Aug. 12, 1961]

COMMITMENT FOR INSURANCE

§ 200.147 Issuance of commitment.

After a determination that the mortgagor and the property offered for security meets the standards and requirements as to eligibility, a commitment is prepared and forwarded over the signature of the Authorized Agent to the approved mortgagee setting forth the terms and conditions under which the mortgage transaction will be insured. The commitment is a binding contract between the FHA and the mortgagee presenting the application.

[26 F.R. 7390, Aug. 12, 1961]

§ 200.148 Types of commitments. (a) Home mortgages. In connection with home mortgages the commitment issued may be conditional or firm.

(1) Conditional commitment. A conditional commitment is requested in a case where the mortgagor is unknown and therefore cannot be specified in the application. The Commissioner agrees to insure a mortgage on specified property in an amount and under the terms specified, provided the property is sold to a purchaser who is satisfactory to the FHA as a borrower.

(2) Firm commitment. A firm commitment is requested where the mortgagee desires insurance of a mortgage on specified property with a named mortgagor in an amount and on terms set forth in the commitment.

(b) Project mortgages. In connection with project mortgages the mortgagee may specify which of two types of commitments he desires.

(1) Commitment for insurance of advances. A commitment for insurance of advances specifies that the FHA will insure construction advances, subject to compliance with the commitment terms.

(2) Commitment to insure upon completion. A commitment to insure upon completion does not include construction advances, but provides that the FHA will insure the mortgage upon completion of the project subject to compliance with the commitment terms.

[26 F.R. 7391, Aug. 12, 1961] § 200.149

Terms and conditions.

(a) The commitment sets forth the exact conditions under which the FHA will insure the mortgage loan. It indicates the maximum eligible term of years, the amount of such loan, the interest rate and the amount of the monthly installment, including principal and interest. In addition, in connection with proposed construction there may be provision for structural requirements and the number and type of inspections necessary. In the case of project mortgages, the commitment may indicate a schedule of advances which will be insured upon a finding that such advances are made in accordance with the commitment.

(b) A commitment is for a definite period of time and contains cancellation conditions which permit FHA to cancel the commitment in case of non-compliance with its terms. Upon full compliance with the terms of the commitment instrument, the FHA is legally bound to endorse the mortgage for insurance.

[26 F.R. 7391, Aug. 12, 1961]

INSURANCE ENDORSEMENT

§ 200.150 Request for endorsement. When all conditions of the commitment are fully met the commitment, together with all supporting documents such as the note, mortgage and any other exhibits as required by the terms of the commitment, are returned to the FHA by the mortgagee with request for endorsement for insurance. [26 F.R. 7391, Aug. 12, 1961] § 200.151 Final review.

Upon receipt of a request for endorsement the FHA makes a final review of the commitment and the supporting documents to determine that all are in proper

order and that the terms and conditions have been fully performed. [26 F.R. 7391, Aug. 12, 1961]

§ 200.152 Endorsement for insurance.

When it has been determined that the terms and conditions of the commitment have been fully complied with, the FHA insures the mortgage and evidences the insurance by the Authorized Agent's signature in the endorsement panel on the mortgage note which is then returned to the mortgagee. After this endorsement the mortgagee is entitled to the benefits of insurance subject to compliance with the administrative regulations which are, in effect, a part of the insurance contract.

[26 F.R. 7391, Aug. 12, 1961]

Upon default in a mortgage the mortgagee submits a notice of default status to the FHA Insuring Office having jurisdiction over the area wherein the mortgage security is located. [26 F.R. 7391, Aug. 12, 1961]

§ 200.155 Claim requirements.

To perfect its claim for payment the mortgagee is required either to assign the mortgage to the Commissioner or tender to him a good merchantable title to the property covered by the insured mortgage. In the home mortgage programs the mortgagee is required to foreclose the insured mortgage and obtain title to the property under a deed conveying good merchantable title. In project mortgage programs the foregoing procedure may be followed or the mortgagee has an alternative option to assign the project mortgage to the Commissioner. If the latter option is exercised the claim for insurance is reduced by one percent of the amount of the mortgage. [26 F.R. 7391, Aug. 12, 1961]