§ 203.17 Mortgage provisions.

(a) Mortgage form. (1) The term “mortgage” as used in this part, except § 203.43c, shall have the meaning given in Section 201 of the National Housing Act, as amended (12 U.S.C. 1707). (2)(i) The mortgage shall be in a form meeting the requirements of the Commissioner. The Commissioner may prescribe complete mortgage instruments. For each case in which the Commissioner does not prescribe complete mortgage instruments, the Commissioner (A) Shall require specific language in the mortgage which shall be uniform for every mortgage, and (B) May also prescribe the language or substance of additional provisions for all mortgages as well as the language or substance of additional provisions for use only in particular jurisdictions or for particular programs. (ii) Each mortgage shall also contain any provisions necessary to create a valid and enforceable secured debt under the laws of the jurisdiction in which the property is located. (b) Mortgage multiples. A mortgage shall involve a principal obligation in a multiple of $1. (c) Payments. The mortgage shall: (1) Come due on the first of the month. (2) Contain complete amortization provisions satisfactory to the Secretary and an amortization period not in excess of the term of the mortgage. (3) Provide for payments to principal and interest to begin not later than the first day of the month following 60 days from the date the mortgage is executed (or the date a construction mortgage is converted to a permanent mortgage, if applicable). (d) Maturity. The mortgage shall have a term of not more than 30 years from the date of the beginning of amortization. (e) Property Standards. The mortgage must be a first lien upon the property that conforms with property standards prescribed by the Commissioner. (f) Disbursement. The entire principal amount of the mortgage must have been disbursed to the mortgagor or to his or her creditors for his or her account and with his or her consent.