4550.4

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TABLE OF CONTENTS

Paragraph Page

CHAPTER 1. ADMINISTRATION

1-1 Introduction 1-1

1-2. Application for Mortgage Insurance 1-2

1-3. Eligibility 1-2

1-4. Nature of Improvements 1-2

1-5. Prevailing Wage Requirements 1-3

1-6. Cost Certification 1-3

1-7. Financing 1-3

1-8. Closing Requirements 1-4

1-9. FNMA Eligibility 1-4

1-10. Loan Security 1-4

1-11. Consent by Holders of Prior Liens 1-4

1-12. Architectural Exhibits 1-4

1-13. Relationships of Supplementary Cooperative Loan

To Withdrawals From Replacement Reserve 1-5

1-14. Approval of Cooperative Membership 1-6

1-15. Supplementary Loans to Finance Resales of

Memberships 1-6

1-16. Commitment Forms 1-8

1-17. Mortgage (or Deed of Trust) Covering Supplementary

Cooperative Loans 1-8

CHAPTER 2. SUPPLEMENTARY LOANS - VALUATION INSTRUCTIONS

2-1. Purposes and Kinds of Supplementary Loans 2-1

2-2. Requirements and Processing 2-1

2-3. Loans to Finance Repairs 2-1

2-4. Funds to Finance Cooperative Purchase and

Resale of Memberships 2-2

2-5. Loans for Value of Improvements or Additional

Community Facilities 2-2

2-6. Improvement Loans, Valuation Processing 2-2

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4550\. 4

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Paragraph Page

CHAPTER 3. MORTGAGE CREDIT REQUIREMENTS FOR

SECTION 213(j) SUPPLEMENTARY LOANS

3-1. General Requirements 3-1

3-2. Maximum Insurable Loan 3-1

3-3 Amortization of Loan 3-2

3-4. Determination of Maximum Insurable Loan 3-3

FORMS APPENDIX IV - SUPPLEMENTARY COOPERATIVE LOANS

APPENDIX FORM NUMBER TITLE

4-1. FHA-3201-A Application for Insurance

4-2. FHA-3206-A Commitment for Insurance of Advances

4-3. FHA-3209-A Commitment to Insure Upon Completion

\* FHA-3212 Mortgagor\'s Certificate

\* FHA-3213 Off-Site Bond

\* FHA-3220 Mortgagee\'s Certificate

4-4. FHA-3257-C FHA Required Closing Instruments

\*Copy of form included in forms appendix Reference (2) of

the Foreword.

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4550.4

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FOREWORD

This fourth handbook of the cooperative housing series provides

information and sets forth requirements and procedures regarding HUD\'s

supplementary loan program for housing cooperatives.

Chapter 1 explains the benefits in this program and sets forth

administrative procedures relating to the insuring of the loans.
Chapters

2, 3, and 4 address themselves to the necessary underwriting
requirements

and procedures.

An Appendix of forms pertinent to this program and a numerical reference

to applicable HUD-FHA Regulations are included for ready reference and

convenience.

Legal Authority:

Supplementary Loans

Subpart A - 213.1 (a), (b), (f), (l), (m), (n); 213.2 through 213.4;

213.6(d); 213.7(1), (m); 213.8; 213.9(a); 213.10;

213.18(a), (b)-(l), and (c); 213.27(e); 213.28(a) thru

(f); 213.31(h); 213.39.

Subpart B - 213.251 through. 253(d); 213.254(d); 213.255(d); 213.256(d);

213.257(b); 213.258(a) (b); 213.259; 213.265(a); 213.266;

213.266(a); 213.267 through. 270 and 207 except as provided

in 213.251(c) and (d).

References:

\(1\) 4470.1 - Mortgage Credit Analysis for Project Mortgage Insurance

\(2\) 4550.2 - Pre-Sale-Management Type Cooperative Handbook. (For

additional instruction on the determination of the

maximum insurable loan, see Chapter 11.)

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4550.4

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Cancellations: Handbooks numbered 4550.1, 4550.2, 4550.3, 4550.4,

4550.5 and 4550.6 cancel the following portions of Volume VI, Book 2,

of the FHA Manual:

Appendices IV-1, 2, 3, 4, 5, 6, 7

Paragraph 63402.17-a(1)

Paragraph 63511-(exceptions)

Paragraph 63608.6-Note

Paragraph 63608.6k

Paragraph 63608.6-o-Note

Paragraph 63608.6-p-Note

Paragraphs 63616 thru 63616.6

The following FHA Manual, Volume VII, Book 2 references are cancelled:

Paragraph 72435.2 and Table 1, Paragraphs 72456 thru 72456.19 Paragraphs

72514.2 and. 3, Paragraphs 72627 thru 72627.2, 72628 thru 72628.2,

72632, 72717 thru 72717.1, 72718 thru 72718.3, 72724 thru 72724.2,

72933 thru 72933.1, 72934 thru 72937, 72943 thru 72945, 72946 thru

72946.5, 72961 thru 72961.6, 72963 thru 72963.5, 73050 thru 73059.8,

73060 thru 73069.4, 73080 thru 73087.7, and 73087.30 thru 73087.36.

Circular HPMC-FHA 4200.11 - Mortgage Insurance on Cooperative

Mobile Home Parks

Dated January 4, 1971

Copies of this handbook should be made available to interested parties.

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