Laws and Regs

24CFR203-281
[Code of Federal Regulations]
[Title 24, Volume 2]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR203.281]
[Page 187]
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 B--Contract Rights and Obligations
Sec. 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 any,
that is not to be included in the insured mortgage.
(b)(1) The Commissioner shall determine the applicable premium
percentage in accordance with sound financial and actuarial practice.
(2) Application of the premium percentage determined under paragraph
(b)(1) of this section shall not result in a MIP in excess of an amount
equivalent to 1 per centum per annum of the amount of the principal
obligation of the mortgage outstanding at any time, without taking into
account delinquent payments or prepayments.
(c) The applicable premium percentage will be published by notice at
least annually in the Federal Register.
[48 FR 28806, June 23, 1983, as amended at 61 FR 36265, July 9, 1996]

Page 1