24 CFR §207.253 — Termination by prepayment and voluntary termination
HUD / FHA Multifamily · a federal regulation, 24 CFR Part 207, Subpart B—Contract Rights and Obligations. It governs FHA's multifamily programs, not the Single Family Housing Policy Handbook 4000.1. Text as of eCFR 2026-10-09.
24 CFR §207.253, Termination by prepayment and voluntary termination. An FHA multifamily program rule in Subpart B—Contract Rights and Obligations of 24 CFR Part 207 (Multifamily Housing Mortgage Insurance).
Verbatim regulatory text
Verbatim provisions from 24 CFR §207.253 — Termination by prepayment and voluntary termination — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
24 CFR §207.253(a)
All rights under the insurance contract and all obligations to pay future insurance premiums shall terminate on the following conditions: (a) Termination by prepayment. Notice of the prepayment in full of the mortgage or loan shall be given to the Commissioner, on a form prescribed by the Commissioner, within 30 days from the date of prepayment. The insurance contract shall terminate, effective as of the date of prepayment. No adjusted premium charge shall be due the Commissioner on account of such termination by prepayment.
24 CFR §207.253(b)
(b) Termination by voluntary agreement. Receipt by the Commissioner of a written request, by the mortgagor and mortgagee or lender for termination of the insurance on the mortgage or loan, on a form prescribed by the Commissioner, accompanied by the original credit instrument for cancellation of the insurance endorsement and the remittance of all sums to which the Commissioner is entitled. The termination shall become effective as of the date these requirements are met. No voluntary termination charge shall be due the Commissioner on account of such termination by voluntary agreement.
24 CFR §207.253(c)
(c) Upon termination of the mortgage or loan insurance contract by a payment in full or by a voluntary termination, the Commissioner shall refund to the mortgagee or lender for the account of the mortgagor or borrower an amount equal to the pro rata portion of the current annual mortgage insurance premium theretofore paid, which is applicable to the portion of the year subsequent to (1) the date of the prepayment or (2) the effective date of the voluntary termination of the contract of insurance.
24 CFR §207.253(d)
(d) Notwithstanding any provision in the mortgage instrument, this section shall apply to all mortgage or loan insurance contracts terminated by either prepayment or voluntary termination where: (1) The mortgage is prepaid in full or (2) the Commissioner receives a request for voluntary termination, on or after May 1, 1972.
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Source of record: https://claudeforcompliance.com/regs/fha-24cfr-207-253/
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