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| 14.163 MORTGAGE INSURANCE_SINGLE FAMILY COOPERATIVE HOUSING |
| (203(n)) |
| FEDERAL AGENCY |
| HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT |
| AUTHORIZATION |
| National Housing Act; as amended, Section 203(n), Emergency Home Purchase Assistance Act of 1974, Public Law 93-449, 88 Stat. 1364. |
| OBJECTIVES |
| To provide insured financing for the purchase of the Corporate Certificate and Occupancy Certificate for a unit in a cooperative housing project. Ownership of the corporate certificate carries the right to occupy the unit located within the cooperative project. |
| TYPES OF ASSISTANCE |
| Guaranteed/Insured Loans. |
| USES AND USE RESTRICTIONS |
| HUD insures lenders against loss on mortgage loans. These insured loans may be used to assist individuals or families in acquiring corporate certificates and occupancy certificates in a cooperative housing project that is covered by a blanket mortgage insured under the National Housing Act. The maximum insurable mortgage loan is limited to the maximum limit under Section 203(b) minus the portion of the unpaid balance of the project mortgage attributable to the dwelling unit. |
| Applicant Eligibility |
| Potential owner-occupant mortgagors are eligible to apply. |
| Beneficiary Eligibility |
| Individuals/families. |
| Credentials/Documentation |
| Documentation regarding the characteristics of the property and the qualifications of the mortgagor are assembled by the mortgagee and submitted with the application. This program is excluded from coverage under OMB Circular No. A-87. |
| Preapplication Coordination |
| None. This program is excluded from coverage under E.O. 12372. |
| Application Procedure |
| Application is submitted for review and approval or disapproval to the HUD Homeownership Center having jurisdiction over the area where the property is located through a HUD approved lending institution. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110. |
| Award Procedure |
| See Application Procedure. |
| Deadlines |
| None. |
| Range of Approval/Disapproval Time |
| Varies. |
| Appeals |
| HUD will state the reasons for refusing an application. The applicant may reapply subject to concurrence of the lender. |
| Renewals |
| Not applicable. |
| Formula and Matching Requirements |
| For most families, the maximum amount of the loan is the same as under 203(b) - program 14.117. The unit's share of the project mortgage is deducted from the maximum potential amount to determine the maximum Section 203(n) loan. As of July 1, 1991, risk-based mortgage insurance premiums will be collected including: 1) an up-front premium which may be financed and 2) a periodic premium which is paid monthly. The origination charge by the mortgagee varies, but may not exceed one percent of the total mortgage amount. |
| Length and Time Phasing of Assistance |
| The maximum mortgage term is 30 years or the remaining term of the blanket mortgage covering the cooperative development, whichever is less. |
| Reports |
| Defaults in meeting the mortgage terms must be reported. Any approved mortgagee, at any time upon request by HUD, must furnish a copy of its latest financial statement. |
| Audits |
| The Department of Housing and Urban Development reserves the right to audit the account of the mortgagee to determine its compliance and conformance with HUD regulations and standards. |
| Records |
| Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations. |
| Account Identification |
| 86-4587-0-3-371. |
| Obligations |
| (Mortgages insured) Reported under program 14.117. |
| Range and Average of Financial Assistance |
| See Uses and Use Restrictions. |
| PROGRAM ACCOMPLISHMENTS |
| There has been very little activity under this program in recent years. |
| REGULATIONS, GUIDELINES, AND LITERATURE |
| HUD 4240.3, Section 203(n) Application Through Insurance (Single Family) no charge; 24 CFR 203.43c and 203.437. |
| Regional or Local Office |
| Persons are encouraged to contact the Homeownership Center serving their State (see http://www.hud.gov/offices/hsg/sfh/hoc/hsghocs.cfm) or the nearest HUD Office. See Catalog Address Appendix IV for a list of Offices. |
| Headquarters Office |
| None. |
| Web Site Address |
| http://www.hud.gov/offices/hsg/sfh/ins/singlefamily.cfm |
| RELATED PROGRAMS |
| 14.117, Mortgage Insurance_Homes; 14.132, Mortgage Insurance_Purchase of Sales-Type Cooperative Housing Units. |
| EXAMPLES OF FUNDED PROJECTS |
| Not applicable. |
| CRITERIA FOR SELECTING PROPOSALS |
| Not applicable. |
|
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |
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