---
kind: "section"
citation: "24 C.F.R. § 248.103"
title: "24"
number: "248.103"
heading: "General prepayment limitation."
url: "https://uscodex.org/cfr/24/248.103"
---

# §248.103. General prepayment limitation.

- (a) **Prepayment.** An owner of eligible low income housing may prepay, and a mortgagee may accept prepayment of, a mortgage on such project only in accordance with a plan of action approved by the Commissioner.
- (b) **Termination.** A mortgage insurance contract with respect to eligible low income housing may be terminated pursuant to [§ 207.253](/cfr/24/207.253.md) of this chapter only in accordance with a plan of action approved by the Commissioner.
- (c) **Foreclosure.** A mortgagee of a mortgage insured by the Commissioner may foreclose the mortgage on, or acquire by deed in lieu of foreclosure, any eligible low income housing only if the mortgagee also conveys title to the project to the Commissioner in connection with a claim for insurance benefits.
- (d) **Effect of unauthorized prepayment.** A mortgagee's acceptance of a prepayment in violation of [paragraph (a)](#a) of this section, or the voluntary termination of a mortgage insurance contract in violation of [paragraph (b)](#b) of this section, shall be null and void and any low income affordability restrictions on the project shall continue to apply to the project.
- (e) **Remedies for unauthorized prepayment.** A mortgagee's acceptance of a prepayment in violation of [paragraph (a)](#a) of this section, or attempt to obtain voluntary termination of a mortgage insurance contract in violation of [paragraph (b)](#b) of this section, is grounds for administrative action under parts [24](/cfr/24/part24.md) and [25](/cfr/24/part25.md) of this title, in addition to any other remedies available by law, including rescission of the prepayment or reinstatement of the insurance contract.

## Notes

### Source

Source: 57 FR 12041, Apr. 8, 1992, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 17151 note, 4101 note, and 4101-4124; 42 U.S.C. 3535(d).