24 Cfr 203.264

Office of Assistant Secretary for Housing, HUD
MORTGAGE INSURANCE PREMIUMS—
PERIODIC PAYMENT
§ 203.260 Amount of mortgage insurance premium (periodic MIP).
The mortgagee shall pay to the Commissioner an initial MIP in an amount
equal to one-half of one percent of the
average outstanding principal obligation of the mortgage for the first year
of amortization. After payment of the
initial MIP, the mortgagee shall pay to
the Commissioner an amount equal to
one-half of one percent of the average
outstanding principal obligation of the
mortgage for the 12-month period preceding each subsequent anniversary
date of the beginning of amortization.
[48 FR 28805, June 23, 1983]

§ 203.261 Calculation of periodic MIP.
The amount of any periodic MIP
shall be calculated in accordance with
the original amortization provisions of
the mortgage, without taking into account delinquent payments, prepayments, agreements to postpone payments, or agreements to recast the
mortgage.
[48 FR 28805, June 23, 1983]

§ 203.262 Due date of periodic MIP.
The full initial and each annual MIP
shall be due and payable to the Commissioner no later than the 10th day
after the amortization anniversary
date.
[61 FR 37801, July 19, 1996]

§ 203.264 Payment of periodic MIP.
The mortgagee shall pay each MIP in
twelve equal monthly installments.
Each monthly installment shall be due
and payable to the Commissioner no
later than the tenth day of each
month, beginning in the month in
which the mortgagor is required to
make the first monthly mortgage payment. This will be effective for amortization beginning on or after September
1, 1996.
[61 FR 42787, Aug. 19, 1996]

§ 203.265 Mortgagee’s late charge and
interest.
(a) Periodic MIP which are received
by the Commissioner after the pay-

§ 203.268

ment dates prescribed by §§ 203.262 and
203.264 shall include a late charge of
four percent of the amount paid.
(b) In addition to the late charge provided in paragraph (a) of this section,
the mortgagee shall pay interest on
any periodic MIP which are remitted to
the Commissioner more than 20 days
after the payment dates prescribed in
§ 203.264. Such interest rate shall be
paid at a rate set in conformity with
the Treasury Financial Manual.
[48 FR 28805, June 23, 1983, as amended at 61
FR 36265, July 9, 1996; 61 FR 37801, July 19,
1996]

§ 203.266 Period covered by periodic
MIP.
The initial MIP shall cover the period beginning with the date of the
issuance of a Mortgage Insurance Certificate and ending on the next anniversary of the beginning of amortization. Subsequent premium payments
shall cover the twelve-month period
preceding each subsequent anniversary
date.
[48 FR 28805, June 23, 1983]

§ 203.267 Duration of periodic MIP.
The mortgagee shall pay the MIP to
the Commissioner until the deed to the
Commissioner is filed for record or the
contract of insurance is terminated.
[48 FR 28805, June 23, 1983]

§ 203.268 Pro rata payment of periodic
MIP.
(a) If the insurance contract is terminated before the due date of the initial
MIP, the mortgagee shall pay a portion
of the MIP prorated from the beginning
of amortization, as defined in § 203.251,
to the date of termination.
(b) If the insurance contract is terminated after the due date of the initial
MIP, the mortgagee shall pay a portion
of the current annual MIP prorated
from the due date of the last annual
MIP to the date of termination.
(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

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