201.55—Calculation of insurance claim payment.
The lender will be reimbursed in an amount not to exceed 90 percent of its loss on any eligible loan up to the amount of insurance coverage in the lender's insurance coverage reserve account established by the Secretary under § 201.32, if the insurance claim is made in accordance with the requirements of this part. The amount of the insurance claim payment shall be computed as follows:
(a) Property improvement loans.
For property improvement loans, the insurance claim payment shall be 90 percent of the following amounts:
(1)
The unpaid amount of the loan obligation (net unpaid principal and the uncollected interest earned to the date of default, calculated according to the terms of the note executed for any loan application that is approved prior to the effective date of these regulations, and calculated according to the actuarial method for all loans for which loan applications are approved on or after the effective date of these regulations). Where the lender has proceeded against the secured property under § 201.51(a)(2), the unpaid amount of the loan obligation shall be reduced by the proceeds received from the property's sale or disposition, after deducting the following:
(ii)
Customary and reasonable expenses for foreclosure and disposition, as determined by the Secretary.
(2)
Interest on the unpaid amount of the loan obligation from the date of default to the date of the claim's initial submission for payment plus 15 calendar days, calculated at the rate of seven percent per annum. However, interest shall not be paid for any period greater than nine months from the date of default.
(3)
The amount of uncollected court costs, including fees paid for issuing, serving, and filing a summons.
(4)
The amount of attorney's fees on an hourly or other basis for time actually expended and billed, not to exceed $500.
(b) Manufactured home loans.
For manufactured home loans, the insurance claim payment shall be 90 percent of the sum of the following amounts:
(1)
The unpaid amount of the loan obligation (net unpaid principal and the uncollected interest earned to the date of default, calculated according to the actuarial method), after deducting the following amounts:
(i)
The best price obtainable for the property after lawful repossession or foreclosure, as determined in accordance with § 201.53 ;
(ii)
All amounts to which the lender is entitled after the date of default from any source relating to the property, including but not limited to such items as rent, other income, recourse recovery against the dealer, hazard insurance benefits, secured interest protection insurance benefits, and rebates on prepaid insurance premiums; and
(iii)
Amounts retained by the lender after the date of default, including amounts held or deposited to the account of the borrower or to which the lender is entitled under the loan transaction, and which have not been applied in reduction of the borrower's indebtedness.
(2)
Interest on the unpaid amount of the loan obligation from the date of default to the date of the claim's initial submission for payment plus 15 calendar days, calculated at the rate of seven percent per annum. However, interest shall not be paid for any period greater than nine months from the date of default.
(3)
For manufactured home purchase loans, the amount of costs paid to a dealer or other third party to repossess and preserve the manufactured home and other property securing repayment of the loan (including the costs of site inspection, property appraisal, hazard insurance premiums, personal property taxes, and site rental, as appropriate), plus actual costs not to exceed $1,000 per module for removing and transporting the home to a dealer's lot or other off-site location.
(4)
The amount of a sales commission paid to a dealer, real estate agent or other third party for the resale of the repossessed or foreclosed manufactured home and/or lot. Where the home is resold on-site, the commission shall not exceed 10 percent of the sales price. Where the home is resold off-site, the commission shall not exceed seven percent of the sales price.
(5)
For manufactured home lot loans, and for combination loans where both the foreclosed manufactured home and lot are classified as realty, the amount of:
(i)
State or local real estate taxes, ground rents, and municipal water and sewer fees or liens, prorated to the date of disposition of the property;
(ii)
Special assessments which are noted on the loan application or which become liens after the insurance is issued, prorated to the date of disposition of the property;
(iii)
Premiums for hazard insurance on the manufactured home, prorated to the date of disposition of the property; and
(iv)
Transfer taxes imposed upon any deeds or other instruments by which the property was acquired by the lender.
(6)
The amount of uncollected court costs, including fees paid for issuing, serving, and filing a summons.
(7)
The amount of attorney's fees on an hourly or other basis for time actually expended and billed, not to exceed $1,000.
(8)
The amount of expenses for recording the assignment of the security to the United States, and for costs of repossession or foreclosure other than attorney's fees and those incurred under paragraph (b)(3), but not to exceed costs which are customary and reasonable in the jurisdiction where the repossession or foreclosure takes place, as determined by the Secretary.