Code of Federal Regulations (Last Updated: July 5, 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 242 - Mortgage Insurance for Hospitals |
Subpart D - Endorsement for Insurance |
§ 242.41 - Certification of cost requirements.
Latest version.
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§ 242.41 Certification of cost requirements.
Before initial endorsement of the mortgage for insurance, the mortgagor, the mortgagee, and HUD shall enter into an agreement in form and content satisfactory to HUD for the purpose of precluding any excess of mortgage proceeds over statutory limitations. Under this agreement, the mortgagor shall disclose its relationship with the builder, including any collateral agreement, and shall agree:
(a) To execute a Certificate of Actual Costs, upon completion of all physical improvements on the mortgaged property.
(b) To apply any cost savings in accordance with the provisions below.