(a) Late charge. Initial MIP remitted to the Secretary after the payment date in Sec. 206.111(a) and monthly MIP remitted to the Secretary 10 days after the payment date in Sec. 206.111(b) shall include a late charge of four percent of the amount paid.
(b) Interest. In addition to any late charge provided in paragraph (a) of this section, the mortgagee shall pay interest on any initial MIP remitted to the Secretary more than 30 days after closing, and interest on any monthly MIP remitted to the Secretary more than 30 days after the payment date prescribed in Sec. 206.111(b). Such interest rate shall be paid at a rate set in conformity with the Treasury Financial Manual.
(c) Paid by mortgagee. Any late charge owed by the mortgagee shall be paid from the mortgagee's funds and shall not be added to the mortgage balance of the mortgagor. [54 FR 24833, June 9, 1989; 54 FR 32060, Aug. 4, 1989, as amended at 60 FR 42761, Aug. 16, 1995] Sec. 206.115 [Reserved]