WAIS Document Retrieval[Code of Federal Regulations]
[Title 24, Volume 2, Parts 200 to 499]
[Revised as of April 1, 2000]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR203.363]

[Page 189-190]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
PART 203--SINGLE FAMILY MORTGAGE INSURANCE--Table of Contents
 
               Subpart B--Contract Rights and Obligations
 
Sec. 203.363  Effect of noncompliance with regulations.

    (a) For mortgages insured under firm commitments issued prior to 
November 19, 1992 or under direct endorsement processing where the 
credit worksheet was signed by the mortgagee's approved underwriter 
prior to November 19, 1992. If, for any reason, the mortgagee fails to 
comply with the regulations in this subpart, the Secretary may hold 
processing of the application for insurance benefits in abeyance for a 
reasonable time in order to permit the mortgagee to comply, or, in the 
alternative, the Secretary may reconvey title to the property to the 
mortgagee, in which event the application for insurance benefits shall 
be considered as cancelled without prejudice to the rights of the 
mortgagee to reapply for insurance benefits at a subsequent date.
    (b) For mortgages insured under firm commitments issued on or after 
November 19, 1992, or under direct endorsement processing where the 
credit worksheet was signed by the mortgagee's underwriter on or after 
November 19, 1992. If, for any reason, the mortgagee fails to comply 
with the regulations in this subpart, the Secretary may hold processing 
of the application for insurance benefits in abeyance for a reasonable 
time in order to permit the mortgagee to comply. In the alternative to 
holding processing in abeyance, the Secretary may reconvey title to the 
property to the

[[Page 190]]

mortgagee, in which event the application for insurance benefits shall 
be considered as cancelled and the mortgagee shall refund the insurance 
benefits to the Secretary as well as other funds required by 
Sec. 203.364 of this part. The mortgagee may reapply for insurance 
benefits at a subsequent date; provided, however, that the mortgagee may 
not be reimbursed for any expenses incurred in connection with the 
property after it has been reconveyed by the Secretary, or paid any 
debenture interest accrued after the date of initial conveyance or after 
the date conveyance was required by Sec. 203.359 of this part, whichever 
is earlier, and there will be deducted from the insurance benefits any 
reduction in the Secretary's estimate of the value of the property 
occurring from the time of reconveyance to the time of reapplication.

[57 FR 47971, Oct. 20, 1992, as amended at 61 FR 36453, July 10, 1996]



