Open-End Advance [HUD] Law and Legal Definition
Pursuant to 24 CFR 203.251 (n) [Title 24 Housing and Urban Development; Subtitle B Regulations Relating to Housing and Urban Development; Chapter II Office of Assistant Secretary for Housing Federal Housing Commissioner, Department of Housing and Urban Development; Subchapter B Mortgage and Loan Insurance Programs Under National Housing Act and Other Authorities; Part 203 Single Family Mortgage Insurance; Subpart B Contract Rights and Obligations; Definitions], the term Open-End Advance means “an insured advance made by an approved mortgagee in connection with a previously insured mortgage, pursuant to an open-end provision in the mortgage.”
