Source: https://www.federalregister.gov/articles/2012/12/07/2012-29545/federal-housing-administration-fha-section-232-healthcare-mortgage-insurance-program-partial-payment
Timestamp: 2015-05-30 06:29:23
Document Index: 97271590

Matched Legal Cases: ['art 232', '§ 232', 'art 232', 'art 232', 'art 232', '§ 232', '§ 232', '§ 207', '§ 207']

Federal Register | Federal Housing Administration (FHA) Section 232 Healthcare Mortgage Insurance Program: Partial Payment of Claims
-72923 (4 pages)
Shorter URL: https://federalregister.gov/a/2012-29545 Related Topics
FR–5537–P–01 FHA Healthcare Mortgage Insurance Program; Partial Payment of Claims
FHA's Section 232 program insures mortgage loans to facilitate the construction, substantial rehabilitation, purchase, and refinancing of nursing homes, intermediate care facilities, board and care homes, and assisted-living facilities. A project may include more than one type of facility and financing, and a combination of these uses is acceptable. The Section 232 program is authorized under the National Housing Act (12 U.S.C. 1715w). HUD's regulations for the Section 232 program are codified in 24 CFR part 232. While many aspects of HUD's healthcare facility operations, including the basic contract and eligibility requirements, are governed by the regulations applicable to HUD's multifamily mortgage insurance programs, separate healthcare regulations have been adopted to address program operations specific to healthcare facilities, such as state licensing requirements.
B. The Proposed Rule and Public Comments Back to Top
The proposed rule added a new § 232.882, entitled “Partial Payment of Claims,” to the Section 232 program regulations in 24 CFR part 232 to provide that if the mortgagee elects to assign a mortgage to the FHA Commissioner, under certain circumstances the Commissioner may request the mortgagee to accept a partial payment of the claim. That proposed PPC regulation for the Section 232 program differed from the regulations establishing the PPC process for the multifamily programs primarily because the focus of the Section 232 program is on healthcare facilities.
List of Subjects in 24 CFR Part 232 Back to Top
1.The authority citation for 24 CFR part 232 is revised to read as follows: Authority:
12 U.S.C. 1715b, 1715w, 1735f-19; 42 U.S.C. 3535(d).
2.Add § 232.256 to subpart B to read as follows: § 232.256 Partial payment of claims.
(a) When a lender for a loan on a healthcare project becomes eligible to file an insurance claim and to assign the mortgage to the Commissioner pursuant to § 207.258, the Commissioner may request the lender, in lieu of assignment, to accept a partial payment of the claim under the mortgage insurance contract and recast the mortgage, under such terms and conditions as the Commissioner may determine.
(1) The lender is entitled, after a default as defined in § 207.255, to assign the mortgage in exchange for the payment of insurance benefits;