---
kind: "section"
citation: "24 C.F.R. § 232.906"
title: "24"
number: "232.906"
heading: "Processing of applications and required fees."
url: "https://uscodex.org/cfr/24/232.906"
---

# §232.906. Processing of applications and required fees.

- (a) **Processing of applications.** The local HUD Office will determine whether participation in a preapplication conference is required as a condition to submission of an initial application for either a conditional or firm commitment. After the preapplication conference an application for a conditional or firm commitment for insurance of a mortgage on a project shall be submitted by the sponsor and an approved mortgagee. Such application shall be submitted to the local HUD Office on a HUD approved form. An application may, at the option of the applicant, be submitted for a firm commitment omitting the conditional commitment stage. No application shall be considered unless accompanied by all exhibits required by the form and program handbooks. An application may be made for a commitment which provides for the insurance of the mortgage upon completion of any improvements or for a commitment which provides, in accordance with standards established by the Commissioner, for the completing of specified repairs and improvements after endorsement.
- (b) **Application fee—conditional commitment.** An application-commitment fee of $3 per thousand dollars of the requested mortgage amount shall accompany an application for conditional commitment.
- (c) **Application fee—firm commitment.** An application for firm commitment shall be accompanied by an application-commitment fee of $5 per thousand dollars of the requested mortgage amount to be insured less any amount previously received for a conditional commitment.
- (d) **Inspection fee.** Where an application provides for the completion of repairs, replacements and/or improvements (repairs), the Commissioner will charge an inspection fee equal to one percent (1%) of the cost of the repairs. However, where the Commissioner determines the cost of repairs is minimal, the Commissioner may establish a minimum inspection fee that exceeds one percent of the cost of repairs and can periodically increase or decrease this minimum fee.
- (e) **Cross-reference.** The provisions of paragraphs (f)(1) (Fee on increases), (g) (Reopening of expired commitments), (h) (Transfer fee), (i) (Refund of fees), and (j) (Fees not required) of [§ 200.40](/cfr/24/200.40.md) of this chapter apply to applications submitted under [subpart E](/cfr/24/subpartE.md) of this part.

## Notes

### Amendments

[61 FR 14416, Apr. 1, 1996]

### Source

Source: 53 FR 33735, Aug. 31, 1988, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1715b, 1715w, 1735d, and 1735f-19; 42 U.S.C. 3535(d).

### Source

Source: 36 FR 24618, Dec. 22, 1971, unless otherwise noted.

### Amendments

[61 FR 14416, Apr. 1, 1996]