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 Code of Federal Regulations (Last Updated: November 8, 2024)
 Title 24 - Housing and Urban Development
 Subtitle B - Regulations Relating to Housing and Urban Development
 Chapter II - Office of Assistant Secretary for Housing - Federal Housing Commissioner, Department of Housing and Urban Development
 SubChapter B - Mortgage and Loan Insurance Programs Under National Housing Act and Other Authorities
 Part 203 - Single Family Mortgage Insurance
 Subpart A - Eligibility Requirements and Underwriting Procedures
 Insured Ten-Year Protection Plans (Plan)

  § 203.203 - Issuance and nature of insured 10-year protection plans.  

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  • § 203.203 Issuance and nature of insured 10-year protection plans.

    (a) Plans may be issued:

    (1) By a builder, warranty company, insurance company, or Risk Retention Group (see 15 U.S.C. 3901a(4)(A)-(H) (Supp. IV 1986); or

    (2) By a State that guarantees the builder's performance and the State's continuing financial backing throughout the Plan's coverage period.

    (b) All Plans must have insurance backing unless backed by the full faith and credit of a State.

    (c)

    (1) Plans backed by the full faith and credit of a State must be in compliance with § 203.200 through § 203.202, § 203.204 through § 203.206, and § 203.209 to be acceptable to HUD. HUD will evaluate these Plans to ensure their compliance with these sections.

    (2) HUD will not accept Plans backed by a State agency or a State insurance guaranty fund unless HUD is assured that the full faith and credit of the State is pledged to satisfy any and all obligations of the State agency or guaranty fund that may arise in connection with its financial backing of a Plan.

    (d) The functions of a Plan issuer and an insurance backer may be performed by a single corporate entity.