257.7—Definitions.
As used in this part and in the H4H program, the following definitions apply.
Act means the National Housing Act (12 U.S.C. 1701
et seq. ).
Allowable closing costs mean charges, fees, and discounts that the mortgagee may collect from the mortgagor as provided at 24 CFR 203.27(a).
Board means the Advisory Board for the HOPE for Homeowners program, which is comprised of the Secretary of HUD, the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve System (Federal Reserve Board), and the Chairperson of the Board of Directors of the Federal Deposit Insurance Corporation or the designees of each such individual.
Contract of insurance means the agreement by which FHA provides mortgage insurance to a mortgagee.
Default and delinquency fees means late charges contained in a mortgage/security instrument for the late or nonreceipt of payments from mortgagors after the date upon which payment is due, including charges imposed by the mortgagee for the return of payments on the mortgage due to insufficient funds.
Direct financial benefit means the same as “initial equity” determined under § 257.118(a).
Disposition means any transaction that results in whole or partial transfer of title of a property other than—
Eligible Mortgage means a mortgage as defined at § 257.104.
Existing senior mortgage means an eligible mortgage that has superior priority and is being refinanced by a mortgage insured under section 257 of the Act.
Existing subordinate mortgage means a mortgage that is subordinate in priority to an eligible mortgage that is being refinanced by a mortgage insured under section 257 of the Act.
FHA means the Federal Housing Administration.
HOPE for Homeowners program (or H4H program) means the program established under section 257 of the Act.
HUD means the Department of Housing and Urban Development.
Intentionally defaulted for purposes of section 257(e)(1)(A) of the Act means the mortgagor:
(2)
Had available funds at the time payment on the mortgage or debt was due that could pay the mortgage or debt without undue hardship; and
Mortgage has the same meaning as provided at 24 CFR 203.17(a)(1).
Mortgagee has the same meaning as provided at 24 CFR 203.251(f).
Mortgagor has the same meaning as provided at 24 CFR 203.251(e).
Net worth means the total dollar amount of all liabilities subtracted from the total dollar amount of all assets (other than retirement accounts) of the mortgagor.
Prepayment penalties mean such amounts as defined at 12 CFR 226.32(d)(6) of the Federal Reserve Board's Regulation Z (Truth in Lending).
Primary residence means the dwelling where the mortgagor maintains his or her permanent place of abode and typically spends the majority of the calendar year. A mortgagor can have only one primary residence.
Program mortgage means the mortgage into which the existing senior mortgage is refinanced.
Related party of a person means any of the following or another person acting on behalf of the person or any of the following—
(1)
The person's father, mother, stepfather, stepmother, brother, sister, stepbrother, stepsister, son, daughter, stepson, stepdaughter, grandparent, grandson, granddaughter, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, the spouse of any of the foregoing, and the person's spouse;
(2)
Any entity of which 25 percent or more of any class of voting securities is owned, controlled, or held in the aggregate by the person or the persons referred to in paragraph (1) of this definition; and
(3)
Any entity of which the person or any person referred to in paragraph (1) of this definition serves as a trustee, general partner, limited partner, managing member, or director.
Secretary means the Secretary of Housing and Urban Development.
Substantial debt means any individual liability of the mortgagor that exceeds $100,000.
Total monthly mortgage payment means the sum of:
(2) Escrowed amounts.
(i)
The monthly required amount collected by or on behalf of the mortgagee for real estate taxes, premiums for required hazard and mortgage insurance, homeowners' association dues, ground rent, special assessments, water and sewer charges, and other similar charges required by the note or security instrument; or
(ii)
For mortgages not subject to escrow deposits, 1/12 of the estimated annual costs for items listed in paragraph (2)(i) of this definition.