APPENDIX 4

MORTGAGEE\'S CERTTFICATIONS

The mortgagee executing form HUD-54113 has personally reviewed the

mortgage documents and the application for insurance endorsement and

certifies that the mortgage is eligible for mortgage insurance under
HUD\'s

Direct Endorsement program. The mortgagee has submitted all appropriate

documents, properly executed, as required by all outstanding HUD
handbooks

and Mortgagee Letters. This mortgagee certification is in addition to
any

certifications required of the mortgagee, the mortgagor, or both on
forms

HUD-92800 or 92900-A. If a requirement from 24 CFR Part 203 is

incorporated in a different regulation by cross-reference (e.g., 203.17
in

Certification 1 is cross-referenced in 222.1), a reference to the Part
203

requirement in a certification shall also be deemed a reference to each

instance where the requirement is incorporated by reference. Each of the

below-listed certifications apply to the loan submitted for endorsement,

except to the extent the certification itself defines the situation to

which it applies.

GENERAL CERTIFICATIONS. The following general certifications apply to
all

mortgage loans categories eligible for insurance under the Direct

Endorsement program. Variations from the general certifications for

mortgages with special features are listed here as alternative

certifications. Additional requirements are listed below as specific

certifications.

\(1\) The mortgage is a first lien and contains the mortgage provisions

required by 24 CFR 203.17 (except as provided in 203.50(i) for

rehabilitation loans under Section 203(k) of National Housing Act); or

221.25, 221.30, 221.32, 221.35 or 221.40, and 221.45 for low- and

moderate income mortgagors under Section 221(d)(2) of National

Housing Act; or

234.25 for condominiums; or

235.22 for refinancing mortgages insured under Section 235(r) of the

National Housing Act.

\(2\) The mortgage is on real estate held in fee simple or on a
leasehold

under a lease for not less than 99 years which is renewable, or under

a lease which otherwise meets the requirements of 24 CFR 203.37 or

234.65 for condominiums.

\(3\) The stated mortgage amount satisfies the requirements of:

203.18, 203.18a, 203.18b, or 203.29; or

203.50(f) or (g) for rehabilitation loans; or

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220.25 and 220.30 (urban renewal); or

221.10, 221.11, 221.20, 221.50, for low- and moderate-income

mortgages; or

234.27 or 234.49 for condominiums; or

235.1202(b)(1) for refinancing mortgages under Section 235(r) of the

National Housing Act; or

240.5 for fee title purchasers; or

For a mortgage given to refinance an existing HUD-insured mortgage

pursuant to Section 223(a)(7) of the National Housing Act, the stated

amount satisfies the limitations set forth in 203.43(c) and 234.52;

or

If the mortgage involves refinancing to be insured under 24 CFR

221.21, the mortgage, in addition to the limitations contained in

221.10, 221.11, and 221.20, does not exceed the estimated cost of

repair and rehabilitation and the amount required to refinance the

existing indebtedness secured by the property; or

If the mortgage is on property sold by HUD, the mortgage amount is

that determined by the Secretary under 24 CFR 203.43(k) and Part 291.

\(4\) The mortgagor has made the minimum investment required by 24 CFR

203.19; or

220.35 (urban renewal); or

221.50 (low- and moderate income); or

234.28 (condominiums); or

203.43(k) for properties sold by HUD where the Secretary has

determined the minimum cash investment; and

no prepaid expenses, other than those listed in 24 CFR 221.54 were

included in determining the mortgagor\'s minimum investment.

\(5\) If the mortgaged property is in a flood plain, the mortgage meets
the

flood insurance requirements set forth in 203.16a or 234.17.

(5A) The property is free of legal restrictions on conveyance as
required

by 24 CFR 203.41, 203.512 or 234.66, except for restrictions

specifically permitted by those regulations.

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SPECIFIC CERTIFICATIONS. The following specific certifications reflect

additional special features of the mortgage loan categories eligible for

insurance under the Direct Endorsement program.

\(6\) If the property is located in an older declining urban area and
the

mortgage is to be insured under Section 223(e) of National Housing

Act, it also meets the requirements of 24 CFR 203.43a or 234.68.

\(7\) If the mortgage is an adjustable rate mortgage it also meets the

requirements established under 24 CFR 203.49 or 234.79.

\(8\) If the mortgage is a graduated payment mortgage it also meets the

requirements established under 24 CFR 203.45 or 234.75; if a growing

equity mortgage it also meets the requirements established under 24

CFR 203.47 or 234.77;

\(9\) If the property is located in an outlying area and is insured
under

Section 203(i) of the National Housing Act, the mortgage also meets

the requirements of 24 CFR 203.18(d).

\(10\) If the property to be insured is for a borrower who is a disaster

victim under Section 203(h) of the National Housing Act, it also meets

the requirements of 24 CFR 203.18(e).

\(11\) If the mortgage loan is for rehabilitation under Section 203(k)
of the

National Housing Act, the mortgage also meets the requirements of 24

CFR 203.50.

\(12\) If the mortgage to be insured is on a property in an area
determined

to be a federally impacted area under Section 238(c) of National

Housing Act, it also meets the requirements of 203.43e.

\(13\) If the mortgage to be insured is on Indian lands and is insured

pursuant to Section 248 of the National Housing Act, it also meets the

requirements set forth in 24 CFR 203.43h.

\(14\) If the mortgage to be insured is on Hawaiian Home Lands property
and

is insured pursuant to Section 247 of the National Housing Act, the

mortgage also meets the requirements of 203.43i including the

eligibility requirements set forth in 203.43(i).

\(15\) If the mortgage to be insured is eligible as an openend advance,
it

also meets the requirements of 203.44 or 234.70 (condominiums).

\(16\) If the mortgage is a service person\'s mortgage to be insured
under

Section 222 of the National Housing Act, it also meets the

requirements of 24 CFR Part 222.

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\(17\) If the mortgage to be insured is for fee title purchases under
Section

240 of the National Housing Act, it also meets the requirements of 24

CFR Part 240.

\(18\) If the mortgage to be insured is for loans for urban renewal
under

Section 220(d) of the National Housing Act, or if for a home

improvement loan under Section 220(h) of the National Housing Act, it

also meets the requirements of 24 CFR Part 220, Subpart A.

\(19\) If a refinance from a Section 235 mortgage to a Section 203(b)

Streamline mortgage and the recapture mortgage has been subordinated

to the Section 203(b) Streamline mortgage that is submifled for

insurance, that the recapture mortgage is a second lien; provided that

in the case where there is a loan made, held or insured by a Federal,

State or local governmental agency which was approved by the Secretary

as a second lien and which has been subordinated to the mortgage being

submitted for insurance, the recapture mortgage may be a third lien.

SPECIFIC CERTIFICATIONS FOR SECTION 235(r) MORTGAGES. The

certifications shown as Items (4), and (6) through (19), do not apply to

mortgages insured under Section 235(r) of the National Housing Act. The

certifications in addition to Item (1) through (3) and (5) herein, are
the

following:

\(20\) The mortgage term meets the requirements of 24 CFR
235.1202(b)(2).

\(21\) The interest rate on the mortgage does not exceed the maximum
rate as

computed in accordance with 24 CFR 235.1202(b)(3) and such interest

rate is less than the interest rate shown on the mortgage being

refinanced.

\(22\) The refinancing costs paid by the mortgagee, if any, meet the

requirements of 24 CFR 235.1202(b)(4).

\(23\) The mortgagor has not received payments for the costs of
refinancing,

nor have the payments been made on his behalf, for the period set

forth in 24 CFR 235.1202(b)(6)(iii).

\(24\) The recapture second mortgage, if applicable, has been modified
and

subordinated to the mortgage being submitted for insurance and the

recapture mortgage is a second lien; provided that in the case where

there is a loan made, held or insured by a Federal, State or local

governmental agency which was approved by the Secretary as a second

lien and which has been subordinated to the mortgage being submitted

for insurance, the recapture mortgage may be a third lien.

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