Loan Insurance Requirements.

A. The Administration may require that each loan be subject to a loan insurance policy that provides coverage for the Administration in the case of a loan default with terms and conditions that the Administration approves. B. If loan insurance is provided by the FHA Title I Property Improvement Loan Program or any insurance program of the MHF or of any other insurer approved by the Administration, the purchase or making of loans by the Administration shall be regulated by the regulations, handbooks, or guidelines of the insurance programs.