§1735f–8 — Title 12 Banks and Banking | U.S. Code

Summary

Mortgage insurance premiums that lenders or their agents collect must be paid to the Federal Government promptly: for one- to four-family home loans, when the lender gets the money from the borrower; for all other loans, when the payment is due. The Secretary may allow a delay up to twenty-four months if the lender pays interest, at a rate the Secretary sets, to the insurance fund for the time starting twenty days after receipt or the due date until the premiums are paid.

Title 12, §1735f–8

Banks and Banking — Source: USLM XML via OLRC

In carrying out the provisions of subchapters I, II, IV,11 See References in Text note below. VII, VIII, IX–B, and X pertaining to the payment of loan or mortgage insurance premium charges by a financial institution, other mortgagees, or agent thereof to the Federal Government in connection with a loan or mortgage insurance program established pursuant to any of these subchapters, the Secretary shall require that payment of such premiums be made (1) in the case of loans or mortgages respecting one- to four-family residences, promptly upon their receipt from the borrower, and (2) in any other case, promptly when due to the Secretary; except that the Secretary may approve payment of such premiums within twenty-four months of such receipt or due date, as appropriate, if the financial institution, mortgagee, or agent thereof pays interest, at a rate specified by the Secretary, to the insurance fund for the period beginning twenty days after receipt from the borrower or after the due date, as appropriate, and ending upon payment of the premiums to the Federal Government.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Subchapter IV of this chapter, referred to in text, was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

Amendments

1989—Pub. L. 101–235 struck out reference to subchapter IX–A after reference to subchapter VIII. 1983—Pub. L. 98–181 substituted “(1) in the case of loans or mortgages respecting one- to four-family residences, promptly upon their receipt from the borrower, and (2) in any other case, promptly when due to the Secretary” for “promptly upon their receipt from the borrower”, inserted “or due date, as appropriate,” after “such receipt”, and inserted “or after the due date, as appropriate,” before “and ending”.

§1735f–8 Time of payment of premium charges