§ 1710. — Payment of insurance.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1710]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1710. Payment of insurance
(a) In general
(1) Authorized claims procedures
The Secretary may, in accordance with this subsection and terms
and conditions prescribed by the Secretary, pay insurance benefits
to a mortgagee for any mortgage insured under section 1709 of this
title through any of the following methods:
(A) Assignment of mortgage
The Secretary may pay insurance benefits whenever a mortgage
has been in a monetary default for not less than 3 full monthly
installments or whenever the mortgagee is entitled to
foreclosure for a nonmonetary default. Insurance benefits shall
be paid pursuant to this subparagraph only upon the assignment,
transfer, and delivery to the Secretary of--
(i) all rights and interests arising under the mortgage;
(ii) all claims of the mortgagee against the mortgagor
or others arising out of the mortgage transaction;
(iii) title evidence satisfactory to the Secretary; and
(iv) such records relating to the mortgage transaction
as the Secretary may require.
(B) Conveyance of title to property
The Secretary may pay insurance benefits if the mortgagee
has acquired title to the mortgaged property through foreclosure
or has otherwise acquired such property from the mortgagor after
a default upon--
(i) the prompt conveyance to the Secretary of title to
the property which meets the standards of the Secretary in
force at the time the mortgage was insured and which is
evidenced in the manner provided by such standards; and
(ii) the assignment to the Secretary of all claims of
the mortgagee against the mortgagor or others, arising out
of mortgage transaction or foreclosure proceedings, except
such claims as may have been released with the consent of
the Secretary.
The Secretary may permit the mortgagee to tender to the
Secretary a satisfactory conveyance of title and transfer of
possession directly from the mortgagor or other appropriate
grantor, and may pay to the mortgagee the insurance benefits to
which it would otherwise be entitled if such conveyance had been
made to the mortgagee and from the mortgagee to the Secretary.
(C) Claim without conveyance of title
The Secretary may pay insurance benefits upon sale of the
mortgaged property at foreclosure where such sale is for at
least the fair market value of the property (with appropriate
adjustments), as determined by the Secretary, and upon
assignment to the Secretary of all claims referred to in clause
(ii) of subparagraph (B).
(D) Preforeclosure sale
The Secretary may pay insurance benefits upon the sale of
the mortgaged property by the mortgagor after default and the
assignment to the Secretary of all claims referred to in clause
(ii) of subparagraph (B), if--
(i) the sale of the mortgaged property has been approved
by the Secretary;
(ii) the mortgagee receives an amount at least equal to
the fair market value of the property (with appropriate
adjustments), as determined by the Secretary; and
(iii) the mortgagor has received an appropriate
disclosure, as determined by the Secretary.
(2) Payment for loss mitigation
The Secretary may pay insurance benefits to the mortgagee to
recompense the mortgagee for all or part of any costs of the
mortgagee for taking loss mitigation actions that provide an
alternative to foreclosure of a mortgage that is in default
(including but not limited to actions such as special forbearance,
loan modification, and deeds in lieu of foreclosure, but not
including assignment of mortgages to the Secretary under paragraph
(1)(A)). No actions taken under this paragraph, nor any failure to
act under this paragraph, by the Secretary or by a mortgagee shall
be subject to judicial review.
(3) Determination of claims procedure
The Secretary shall publish guidelines for determining which of
the procedures for payment of insurance under paragraph (1) are
available to a mortgagee when it claims insurance benefits. At least
one of the procedures for payment of insurance benefits specified in
paragraph (1)(A) or (1)(B) shall be available to a mortgagee with
respect to a mortgage, but the same procedure shall not be required
to be available for all of the mortgages held by a mortgagee.
(4) Servicing of assigned mortgages
If a mortgage is assigned to the Secretary under paragraph
(1)(A), the Secretary may permit the assigning mortgagee or its
servicer to continue to service the mortgage for reasonable
compensation and on terms and conditions determined by the
Secretary. Neither the Secretary nor any servicer of the mortgage
shall be required to forbear from collection of amounts due under
the mortgage or otherwise pursue loss mitigation measures.
(5) Calculation of insurance benefits
Insurance benefits shall be paid in accordance with section
1735d of this title and shall be equal to the original principal
obligation of the mortgage (with such additions and deductions as
the Secretary determines are appropriate) which was unpaid upon the
date of--
(A) assignment of the mortgage to the Secretary;
(B) the institution of foreclosure proceedings;
(C) the acquisition of the property after default other than
by foreclosure; or
(D) sale of the mortgaged property by the mortgagor.
(6) Forbearance and recasting after default
The mortgagee may, upon such terms and conditions as the
Secretary may prescribe--
(A) extend the time for the curing of the default and the
time for commencing foreclosure proceedings or for otherwise
acquiring title to the mortgaged property, to such time as the
mortgagee determines is necessary and desirable to enable the
mortgagor to complete the mortgage payments, including an
extension of time beyond the stated maturity of the mortgage,
and in the event of a subsequent foreclosure or acquisition of
the property by other means the Secretary may include in the
amount of insurance benefits an amount equal to any unpaid
mortgage interest; or
(B) provide for a modification of the terms of the mortgage
for the purpose of recasting, over the remaining term of the
mortgage or over such longer period pursuant to guidelines as
may be prescribed by the Secretary, the total unpaid amount then
due, with the modification to become effective currently or to
become effective upon the termination of an agreed-upon
extension of the period for curing the default; and the
principal amount of the mortgage, as modified, shall be
considered the ``original principal obligation of the mortgage''
for purposes of paragraph (5).
(7) Termination of premium obligation
The obligation of the mortgagee to pay the premium charges for
insurance shall cease upon fulfillment of the appropriate
requirements under which the Secretary may pay insurance benefits,
as described in paragraph (1). The Secretary may also terminate the
mortgagee's obligation to pay mortgage insurance premiums upon
receipt of an application filed by the mortgagee for insurance
benefits under paragraph (1), or in the event the contract of
insurance is terminated pursuant to section 1715t of this title.
(8) Effect on payment of insurance benefits under section
1715u
Nothing in this section shall limit the authority of the
Secretary to pay insurance benefits under section 1715u of this
title.
(9) Treatment of mortgage assignment program
Notwithstanding any other provision of law, or the Amended
Stipulation entered as a consent decree on November 8, 1979, in
Ferrell v. Cuomo, No. 73 C 334 (N.D. Ill.), or any other order
intended to require the Secretary to operate the program of mortgage
assignment and forbearance that was operated by the Secretary
pursuant to the Amended Stipulation and under the authority of
section 1715u of this title, prior to its amendment by section
407(b) of The Balanced Budget Downpayment Act, I (Public Law 104-99;
110 Stat. 45), no mortgage assigned under this section may be
included in any mortgage foreclosure avoidance program that is the
same or substantially equivalent to such a program of mortgage
assignment and forbearance.
(b) Consent to release of mortgagor or property
The Secretary may at any time, under such terms and conditions as he
may prescribe, consent to the release of the mortgagor from his
liability under the mortgage or the credit instrument secured thereby,
or consent to the release of parts of the mortgaged property from the
lien of the mortgage.
(c) Debentures; form and amounts
Debentures issued under this section--
(1) shall be in such form and amounts;
(2) shall be subject to such terms and conditions;
(3) shall include such provisions for redemption, if any, as may
be prescribed by the Secretary of Housing and Urban Development,
with the approval of the Secretary of the Treasury; and
(4) may be in book entry or certificated registered form, or
such other form as the Secretary of Housing and Urban Development
may prescribe in regulations.
(d) Debentures; issuance; negotiability; terms; tax exemptions
The debentures issued under this section to any mortagee \1\ with
respect to mortgages insured under section 1709 of this title shall be
issued in the name of the Mutual Mortgage Insurance Fund as obligor and
shall be negotiable, and, if in book entry form, transferable, in the
manner described by the Secretary in regulations. All such debentures
shall be dated as of the date foreclosure proceedings were instituted,
or the property was otherwise acquired by the mortgagee after default:
Provided, That debentures issued pursuant to claims for insurance filed
on or after September 2, 1964 shall be dated as of the date of default
or as of such later date as the Secretary, in his discretion, may
establish by regulation. The debentures shall bear interest from such
date at a rate established by the Secretary pursuant to section 1715o of
this title, payable semiannually on the 1st day of January and the 1st
day of July of each year, and shall mature twenty years after the date
thereof. Such debentures as are issued in exchange for property covered
by mortgages insured under section 1709 or section 1713 of this title
prior to February 3, 1938 shall be subject only to such Federal, State,
and local taxes as the mortgages in exchange for which they are issued
would be subject to in the hands of the holder of the debentures and
shall be a liability of the Mutual Mortgage Insurance Fund, but such
debentures shall be fully and unconditionally guaranteed as to principal
and interest by the United States; but any mortgagee entitled to receive
any such debentures may elect to receive in lieu thereof a cash
adjustment and debentures issued as hereinafter provided and bearing the
current rate of interest. Such debentures as are issued in exchange for
property covered by the mortgages insured after February 3, 1938, shall
be exempt, both as to principal and interest, from all taxation (except
surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed
by the United States, by any Territory, dependency, or possession
thereof, or by any State, county, municipality, or local taxing
authority; and such debentures shall be paid out of the Mutual Mortgage
Insurance Fund, which shall be primarily liable therefor, and they shall
be fully and unconditionally guaranteed as to principal and interest by
the United States, and, in the case of debentures issued in certificated
registered form, such guaranty shall be expressed on the face of the
debentures. In the event that the Mutual Mortgage Insurance Fund fails
to pay upon demand, when due, the principal of or interest on any
debentures issued under this section, the Secretary of the Treasury
shall pay to the holders the amount thereof which is authorized to be
appropriated, out of any money in the Treasury not otherwise
appropriated, and thereupon to the extent of the amount so paid the
Secretary of the Treasury shall succeed to all the rights of the holders
of such debentures.
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\1\ So in original. Probably should be ``mortgagee''.
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(e) Certificate of claim
(1) Subject to paragraph (2), the certificate of claim issued by the
Secretary to any mortgagee shall be for an amount which the Secretary
determines to be sufficient, when added to the face value of the
debentures issued and the cash adjustment paid to the mortgagee, to
equal the amount which the mortgagee would have received if, at the time
of the conveyance to the Secretary of the property covered by the
mortgage, the mortgagor had redeemed the property and paid in full all
obligations under the mortgage and a reasonable amount for necessary
expenses incurred by the mortgagee in connection with the foreclosure
proceedings, or the acquisition of the mortgaged property otherwise, and
the conveyance thereof to the Secretary. Each such certificate of claim
shall provide that there shall accrue to the holder of such certificate
with respect to the face amount of such certificate, an increment at the
rate of 3 per centum per annum which shall not be compounded. The amount
to which the holder of any such certificate shall be entitled shall be
determined as provided in subsection (f) of this section.
(2) A certificate of claim shall not be issued and the provisions of
paragraph (1) of this subsection shall not be applicable in the case of
a mortgage accepted for insurance pursuant to a commitment issued on or
after September 2, 1964.
(f) Division of excess proceeds; settlement of certificates of claims
and refunds to mortgagors
(1) If, after deducting (in such manner and amount as the Secretary
shall determine to be equitable and in accordance with sound accounting
practice) the expenses incurred by the Secretary, the net amount
realized from any property conveyed to the Secretary under this section
and the claims assigned therewith exceed the face value of the
debentures issued and the cash paid in exchange for such property plus
all interest paid on such debentures, such excess shall be divided as
follows:
(i) If such excess is greater than the total amount payable
under the certificate of claim issued in connection with such
property, the Secretary shall pay to the holder of such certificate
the full amount so payable, and any excess remaining thereafter
shall be paid to the mortgagor of such property if the mortgage was
insured under section 1709 of this title: Provided, That on and
after September 2, 1964, any excess remaining after payment to the
holder of the full amount of the certificate of claim, together with
the accrued interest increment thereon, shall be retained by the
Secretary and credited to the applicable insurance fund; and
(ii) If such excess is equal to or less than the total amount
payable under such certificate of claim, the Secretary shall pay to
the holder of such certificate the full amount of such excess.
(2) Notwithstanding any other provisions of this section, the
Secretary is authorized, with respect to mortgages insured pursuant to
commitments for insurance issued after August 11, 1955, and, with the
consent of the mortgagee or mortgagor, as the case may be, with respect
to mortgages insured pursuant to commitments issued prior to such date,
to effect the settlement of certificates of claim and refunds to
mortgagors at any time after the sale or transfer of title to the
property conveyed to the Secretary under this section and without
awaiting the final liquidation of such property for the purpose of
determining the net amount to be realized therefrom: Provided, That the
settlement authority created by the Housing Amendments of 1955 shall be
terminated with respect to any certificates of claim outstanding as of
September 2, 1964.
(3) With the consent of the holder thereof, the Secretary is
authorized, without awaiting the final liquidation of the Secretary's
interest in the property, to settle any certificate of claim issued
pursuant to subsection (e) of this section, with respect to which
settlement had not been effected prior to September 2, 1964, by making
payment in cash to the holder thereof of such amount not exceeding the
face amount of the certificate of claim, together with the accrued
interest thereon, as the Secretary may consider appropriate: Provided,
That in any case where the certificate of claim is settled in accordance
with the provisions of this paragraph, any amounts realized after
September 2, 1964, in the liquidation of the Secretary's interest in the
property, shall be retained by the Secretary and credited to the
applicable insurance fund.
(g) Handling and disposal of property; settlement of claims
Notwithstanding any other provision of law relating to the
acquisition, handling, or disposal of real property by the United
States, the Secretary shall have power to deal with, complete, rent,
renovate, modernize, insure, or sell for cash or credit, in his
discretion, any properties conveyed to him in exchange for debentures
and certificates of claim as provided in this section; and
notwithstanding any other provision of law, the Secretary shall also
have power to pursue to final collection, by way of compromise or
otherwise, all claims against mortgagors assigned by mortgagees to the
Secretary as provided in this section: Provided, That section 5 of title
41 shall not be construed to apply to any contract for hazard insurance,
or to any purchase or contract for services or supplies on account of
such property if the amount thereof does not exceed $1,000. The
Secretary shall, by regulation, carry out a program of sales of such
properties and shall develop and implement appropriate credit terms and
standards to be used in carrying out the program. The power to convey
and to execute in the name of the Secretary deeds of conveyance, deeds
of release, assignments and satisfactions of mortgages, and any other
written instrument relating to real or personal property or any interest
therein heretofore or hereafter acquired by the Secretary pursuant to
the provisions of this chapter, may be exercised by an officer appointed
by him, without the execution of any express delegation of power or
power of attorney: Provided, That nothing in this subsection shall be
construed to prevent the Secretary from delegating such power by order
or by power of attorney, in his discretion, to any officer, agent, or
employee he may appoint: And provided further, That a conveyance or
transfer of title to real or personal property or an interest therein to
the Secretary of Housing and Urban Development, his successors and
assigns, without identifying the Secretary therein, shall be deemed a
proper conveyance or transfer to the same extent and of like effect as
if the Secretary were personally named in such conveyance or transfer.
The Secretary may sell real and personal property acquired by the
Secretary pursuant to the provisions of this chapter on such terms and
conditions as the Secretary may prescribe.
(h) Disposition of assets in revitalization areas
(1) In general
The purpose of this subsection is to require the Secretary to
carry out a program under which eligible assets (as such term is
defined in paragraph (2)) shall be made available for sale in a
manner that promotes the revitalization, through expanded
homeownership opportunities, of revitalization areas.
Notwithstanding the authority under the last sentence of subsection
(g) of this section, the Secretary shall dispose of all eligible
assets under the program and shall establish the program in
accordance with the requirements under this subsection.
(2) Eligible assets
For purposes of this subsection, the term ``eligible asset''
means any of the following assets of the Secretary:
(A) Properties
Any property that--
(i) is designed as a dwelling for occupancy by 1 to 4
families;
(ii) is located in a revitalization area;
(iii) was previously subject to a mortgage insured under
the provisions of this chapter; and
(iv) is owned by the Secretary pursuant to the payment
of insurance benefits under this chapter.
(B) Mortgages
Any mortgage that--
(i) is an interest in a property that meets the
requirements of clauses (i) and (ii) of subparagraph (A);
(ii) was previously insured under the provisions of this
chapter; and
(iii) is held by the Secretary pursuant to the payment
of insurance benefits under this chapter.
For purposes of this subsection, an asset under this
subparagraph shall be considered to be located in a
revitalization area, or in the asset control area of a preferred
purchaser, if the property described in clause (i) is located in
such area.
(C) Future interests
Any contingent future interest of the Secretary in an asset
described in subparagraph (A) or (B).
(3) Revitalization areas
The Secretary shall designate areas as revitalization areas for
purposes of this subsection. Before designation of an area as a
revitalization area, the Secretary shall consult with affected units
of general local government and interested nonprofit organizations.
The Secretary may designate as revitalization areas only areas that
meet one of the following requirements:
(A) Very-low income area
The median household income for the area is less than 60
percent of the median household income for--
(i) in the case of any area located within a
metropolitan area, such metropolitan area; or
(ii) in the case of any area not located within a
metropolitan area, the State in which the area is located.
(B) High concentration of eligible assets
A high rate of default or foreclosure for single family
mortgages insured under this chapter has resulted, or may
result, in the area--
(i) having a disproportionately high concentration of
eligible assets, in comparison with the concentration of
such assets in surrounding areas; or
(ii) being detrimentally impacted by eligible assets in
the vicinity of the area.
(C) Low home ownership rate
The rate for home ownership of single family homes in the
area is substantially below the rate for homeownership in the
metropolitan area.
(4) Preference for sale to preferred purchasers
The Secretary shall provide a preference, among prospective
purchasers of eligible assets, for sale of such assets to any
purchaser who--
(A) is--
(i) the unit of general local government having
jurisdiction with respect to the area in which are located
the eligible assets to be sold; or
(ii) a nonprofit organization;
(B) in making a purchase under the program under this
subsection--
(i) establishes an asset control area, which shall be an
area that consists of part or all of a revitalization area;
and
(ii) purchases all interests of the Secretary in all
assets of the Secretary that, at any time during the period
which shall be set forth in the sale agreement required
under paragraph (7)--
(I) are or become eligible assets; and
(II) are located in the asset control area of the
purchaser; and
(C) has the capacity to carry out the purchase of eligible
assets under the program under this subsection and under the
provisions of this paragraph.
(5) Agreements required for purchase
(A) Preferred purchasers
Under the program under this subsection, the Secretary may
sell an eligible asset as provided in paragraph (4) to a
preferred purchaser only pursuant to a binding agreement by the
preferred purchaser that the eligible asset will be used in
conjunction with a home ownership plan that provides as follows:
(i) The plan has as its primary purpose the expansion of
home ownership in, and the revitalization of, the asset
control area, established pursuant to paragraph (4)(B)(i) by
the purchaser, in which the eligible asset is located.
(ii) Under the plan, the preferred purchaser has
established, and agreed to meet, specific performance goals
for increasing the rate of home ownership for eligible
assets in the asset control area that are under the
purchaser's control. The plan shall provide that the
Secretary may waive or modify such goals or deadlines only
upon a determination by the Secretary that a good faith
effort has been made in complying with the goals through the
homeownership plan and that exceptional neighborhood
conditions prevented attainment of the goal.
(iii) Under the plan, the preferred purchaser has
established rehabilitation standards that meet or exceed the
standards for housing quality established under subparagraph
(B)(iii) by the Secretary, and has agreed that each asset
property for an eligible asset purchased will be
rehabilitated in accordance with such standards.
(B) Non-preferred purchasers
Under the program under this subsection, the Secretary may
sell an eligible asset to a purchaser who is not a preferred
purchaser only pursuant to a binding agreement by the purchaser
that complies with the following requirements:
(i) The purchaser has agreed to meet specific
performance goals established by the Secretary for home
ownership of the asset properties for the eligible assets
purchased by the purchaser, except that the Secretary may,
by including a provision in the sale agreement required
under paragraph (7), provide for a lower rate of home
ownership in sales involving exceptional circumstances.
(ii) The purchaser has agreed that each asset property
for an eligible asset purchased will be rehabilitated to
comply with minimum standards for housing quality
established by the Secretary for purposes of the program
under this subsection.
(6) Discount for preferred purchasers
(A) In general
For the purpose of providing a public purpose discount for
the bulk sales of eligible assets made under the program under
this subsection by preferred purchasers, each eligible asset
sold through the program under this subsection to a preferred
purchaser shall be sold at a price that is discounted from the
value of the asset, as based on the appraised value of the asset
property (as such term is defined in paragraph (8)).
(B) Appraisals
The Secretary shall require that each appraisal of an
eligible asset under this paragraph is based upon--
(i) the market value of the asset property in its ``as
is'' physical condition, which shall take into consideration
age and condition of major mechanical and structural
systems; and
(ii) the value of the property appraised for home
ownership.
(C) Discount classes
The Secretary, in the sole discretion of the Secretary,
shall establish the discount under this paragraph for an
eligible asset, which shall be in one of the following amounts:
(i) Standard discount
In the case only of eligible assets with asset
properties that, at the time of sale under this subsection,
do not meet the standards for housing quality established
pursuant to paragraph (5)(B)(ii), an amount that--
(I) is appropriate to provide reasonable resources
for the improvement \2\ such assets; and
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\2\ So in original. Probably should be followed by ``of''.
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(II) takes into consideration the financial safety
and soundness of the Mutual Mortgage Insurance Fund.
(ii) Deep discount
In the case only of eligible assets described in clause
(i) for which the Secretary determines a deep discount is
appropriate, an amount that exceeds the amount of a standard
discount under clause (i). In making a determination whether
a deep discount is appropriate, the Secretary may consider
the condition of the asset property, the extent of resources
available to the preferred purchaser, the comprehensive
revitalization plan undertaken by such purchaser, or any
other circumstances the Secretary considers appropriate.
(iii) Minimal discount
In the case only of eligible assets with asset
properties that, at the time of sale under this subsection,
meet or substantially meet the standards for housing quality
established pursuant to paragraph (5)(B)(ii), an amount that
is less than the amount of a standard discount under clause
(i) of this subparagraph and is sufficient to provide
assistance to the preferred purchaser in meeting costs
associated with compliance with the program requirements
under this subsection.
(D) Determination of discount class
The Secretary shall, in the sole discretion of the
Secretary, establish a method for determining which discount
under clause (i) or (ii) \2\ subparagraph (C) shall be provided
for an eligible asset that is described in such clause (i) and
sold to a preferred purchaser. The method may result in the
assignment of discounts on any basis consistent with
subparagraph (C) that the Secretary considers appropriate to
carry out the purposes of this subsection.
(7) Sale agreement
The Secretary may sell an eligible asset under this subsection
only pursuant to a sale agreement entered into under this paragraph
with the purchaser, which shall include the following provisions:
(A) Assets
The sale agreement shall identify the eligible assets to be
purchased and the interests sold.
(B) Revitalization area and asset control area
The sale agreement shall identify--
(i) the boundaries of the specific revitalization areas
(or portions thereof) in which are located the eligible
assets that are covered by the agreement; and
(ii) in the case of a preferred purchaser, the asset
control area established pursuant to paragraph (4)(B)(i)
that is covered by the agreement.
(C) Financing
The sale agreement shall identify the sources of financing
for the purchase of the eligible assets.
(D) Binding agreements
The sale agreement shall contain binding agreements by the
purchaser sufficient to comply with--
(i) in the case of a preferred purchaser, the
requirements under paragraph (5)(A), which agreements shall
provide that the eligible assets purchased will be used in
conjunction with a home ownership plan meeting the
requirements of such paragraph, and shall set forth the
terms of the homeownership plan, including--
(I) the goals of the plan for the eligible assets
purchased and for the asset control area subject to the
plan;
(II) the revitalization areas (or portions thereof)
in which the homeownership plan is operating or will
operate;
(III) the specific use or disposition of the
eligible assets under the plan; and
(IV) any activities to be conducted and services to
be provided under the plan; or
(ii) in the case of a purchaser who is not a preferred
purchaser, the requirements under paragraph (5)(B).
(E) Purchase price and discount
The sale agreement shall establish the purchase price of the
eligible assets, which in the case of a preferred purchaser
shall provide for a discount in accordance with paragraph (6).
(F) Housing quality
The sale agreement shall provide for compliance of the
eligible assets purchased with the rehabilitation standards
established under paragraph (5)(A)(iii) or the minimum standards
for housing quality established under paragraph (5)(B)(ii), as
applicable, and shall specify such standards.
(G) Performance goals and sanctions
The sale agreement shall set forth the specific performance
goals applicable to the purchaser, in accordance with paragraph
(5), shall set forth any sanctions for failure to meet such
goals and deadlines, and shall require the purchaser to certify
compliance with such goals.
(H) Period covered
The sale agreement shall establish--
(i) in the case of a preferred purchaser, the time
period referred to in paragraph (4)(B)(ii); and
(ii) in the case of a purchaser who is not a preferred
purchaser, the time period for purchase of eligible assets
that may be covered by the purchase.
(I) Other terms
The agreement shall contain such other terms and conditions
as may be necessary to require that eligible assets purchased
under the agreement are used in accordance with the program
under this subsection.
(8) Definitions
For purposes of this subsection, the following definitions shall
apply:
(A) Asset control area
The term ``asset control area'' means the area established
by a preferred purchaser pursuant to paragraph (4)(B)(i).
(B) Asset property
The term ``asset property'' means--
(i) with respect to an eligible asset that is a
property, such property; and
(ii) with respect to an eligible asset that is a
mortgage, the property that is subject to the mortgage.
(C) Eligible asset
The term ``eligible asset'' means an asset described in
paragraph (2).
(D) Nonprofit organization
The term ``nonprofit organization'' means a private
organization that--
(i) is organized under State or local laws;
(ii) has no part of its net earnings inuring to the
benefit of any member, shareholder, founder, contributor, or
individual; and
(iii) complies with standards of financial
responsibility that the Secretary may require.
(E) Preferred purchaser
The term ``preferred purchaser'' means a purchaser described
in paragraph (4).
(F) Unit of general local government
The term ``unit of general local government'' means any
city, town, township, county, parish, village, or other general
purpose political subdivision of a State.
(9) Secretary's discretion
The Secretary shall have the authority to implement and
administer the program under this subsection in such manner as the
Secretary may determine. The Secretary may, in the sole discretion
of the Secretary, enter into contracts to provide for the proper
administration of the program with such public or nonprofit entities
as the Secretary determines are qualified.
(10) Regulations
The Secretary shall issue regulations to implement the program
under this subsection through rulemaking in accordance with the
procedures established under section 553 of title 5 regarding
substantive rules. Such regulations shall take effect not later than
the expiration of the 2-year period beginning on October 21, 1998.
(i) Mortgagor's or mortgagee's interest in property or claim conveyed
No mortgagee or mortgagor shall have, and no certificate of claim
shall be construed to give to any mortgagee or mortgagor, any right or
interest in any property conveyed to the Secretary or in any claim
assigned to him; nor shall the Secretary owe any duty to any mortgagee
or mortgagor with respect to the handling or disposal of any such
property or the collection of any such claim.
(j) Foreclosure; payment and cessation of obligation
In the event that any mortgagee under a mortgage insured under
section 1709 of this title (other than a mortgagee receiving insurance
benefits under clause (1)(A) of the second sentence of subsection (a) of
this section) forecloses on the mortgaged property but does not convey
such property to the Secretary in accordance with this section, and the
Secretary is given written notice thereof, or in the event that the
mortgagor pays the obligation under the mortgage in full prior to the
maturity thereof, and the mortgagee pays any adjusted premium charge
required under the provisions of section 1709(c) of this title, and the
Secretary is given written notice by the mortgagee of the payment of
such obligation, the obligation to pay any subsequent premium charge for
insurance shall cease, and all rights of the mortgagee and the mortgagor
under this section shall terminate as of the date of such notice.
(k) Repealed. Pub. L. 105-276, title VI, Sec. 601(c), Oct. 21, 1998, 112
Stat. 2673
(l) Nullification of right of redemption of single family mortgagors
(1) Whenever the Secretary or a contract mortgagee (pursuant to its
contract with the Secretary) forecloses on a Secretary-held single
family mortgage in any Federal or State court or pursuant to a power of
sale in a mortgage, the purchaser at the foreclosure sale shall be
entitled to receive a conveyance of title to, and possession of, the
property, subject to the interests senior to the interests of the
Secretary or the contract mortgagee, as the case may be. Notwithstanding
any State law to the contrary, there shall be no right of redemption
(including in all instances any right to possession based upon any right
of redemption) in the mortgagor or any other person subsequent to the
foreclosure sale in connection with a Secretary-held single family
mortgage. The appropriate State official or the trustee, as the case may
be, shall execute and deliver a deed or other appropriate instrument
conveying title to the purchaser at the foreclosure sale, consistent
with applicable procedures in the jurisdiction and without regard to any
such right of redemption.
(2) The following actions shall be taken in order to verify title in
the purchaser at the foreclosure sale:
(A) In the case of a judicial foreclosure in any Federal or
State court, there shall be included in the petition and in the
judgment of foreclosure a statement that the foreclosure is in
accordance with this subsection and that there is no right of
redemption in the mortgagor or any other person.
(B) In the case of a foreclosure pursuant to a power of sale
provision in the mortgage, the statement required in subparagraph
(A) shall be included in the advertisement of the sale and either in
the recitals of the deed or other appropriate instrument conveying
title to the purchaser at the foreclosure sale or in an affidavit or
addendum to the deed.
(3) For purposes of this subsection:
(A) The term ``contract mortgagee'' means a person or entity
under a contract with the Secretary that provides for the assignment
of a single-family mortgage from the Secretary to the person or
entity for the purpose of pursuing foreclosure.
(B) the \3\ term ``mortgage'' means a deed of trust, mortgage,
deed to secure debt, security agreement, or any other form of
instrument under which any interest in property, real, personal, or
mixed, or any interest in property, including leaseholds, life
estates, reversionary interests, and any other estates under
applicable State law, is conveyed in trust, mortgaged, encumbered,
pledged, or otherwise rendered subject to a lien, for the purpose of
securing the payment of money or the performance of an obligation.
---------------------------------------------------------------------------
\3\ So in original. Probably should be capitalized.
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(C) The term ``Secretary-held single family mortgage'' means a
single-family mortgage held by the Secretary or by a contract
mortgagee at the time of initiation of foreclosure that--
(i) was formerly insured by the Secretary under any section
of this subchapter; or
(ii) was taken by the Secretary as a purchase money mortgage
in connection with the sale or other transfer of Secretary-owned
property under any section of this subchapter.
(D) the term ``single-family mortgage'' means a mortgage that
covers property on which is located a 1-to-4 family residence.
(June 27, 1934, ch. 847, title II, Sec. 204, 48 Stat. 1249; May 28,
1935, ch. 150, Sec. 29(c), 49 Stat. 300; Feb. 19, 1937, ch. 12, 50 Stat.
20; Feb. 3, 1938, ch. 13, Sec. 3, 52 Stat. 12; June 3, 1939, ch. 175,
Secs. 9, 10, 53 Stat. 806; June 28, 1941, ch. 261, Sec. 9, 55 Stat. 365;
Oct. 14, 1943, ch. 258, Sec. 1, 57 Stat. 570; Aug. 10, 1948, ch. 832,
title I, Sec. 101(l), (q), 62 Stat. 1273, 1274; Apr. 20, 1950, ch. 94,
title I, Secs. 105, 122, 64 Stat. 52, 59; Sept. 1, 1951, ch. 378, title
VI, Sec. 604(a), 65 Stat. 314; Aug. 2, 1954, ch. 649, title I,
Secs. 111, 112(a), 113, 68 Stat. 593, 594; Aug. 11, 1955, ch. 783, title
I, Sec. 102(a), 69 Stat. 635; Pub. L. 85-104, title I, Secs. 107,
108(a), July 12, 1957, 71 Stat. 297; Pub. L. 86-372, title I,
Secs. 114(b), 117, Sept. 23, 1959, 73 Stat. 662, 664; Pub. L. 87-70,
title VI, Sec. 612(b), (c), June 30, 1961, 75 Stat. 180; Pub. L. 88-560,
title I, Secs. 104(a), 105(a), Sept. 2, 1964, 78 Stat. 769, 770; Pub. L.
89-117, title XI, Sec. 1108(d), Aug. 10, 1965, 79 Stat. 504; Pub. L. 90-
19, Sec. 1(a)(2), (3), (4), (d), May 25, 1967, 81 Stat. 17, 18; Pub. L.
98-181, title IV, Sec. 426, Nov. 30, 1983, 97 Stat. 1218; Pub. L. 100-
242, title V, Sec. 569, Feb. 5, 1988, 101 Stat. 1948; Pub. L. 100-628,
title X, Sec. 1064(a), (b), Nov. 7, 1988, 102 Stat. 3275; Pub. L. 101-
235, title I, Sec. 136, Dec. 15, 1989, 103 Stat. 2028; Pub. L. 102-550,
title V, Sec. 516(a), Oct. 28, 1992, 106 Stat. 3790; Pub. L. 104-99,
title IV, Sec. 407(a), Jan. 26, 1996, 110 Stat. 45; Pub. L. 104-134,
title I, Sec. 101(e) [title II, Sec. 221(a)], Apr. 26, 1996, 110 Stat.
1321-257, 1321-290; renumbered title I, Pub. L. 104-140, Sec. 1(a), May
2, 1996, 110 Stat. 1327; Pub. L. 105-276, title VI, Secs. 601(a), (c),
(d), 602, Oct. 21, 1998, 112 Stat. 2670, 2673, 2674.)
References in Text
The Housing Amendments of 1955, referred to in subsec. (f)(2), is
act Aug. 11, 1955, ch. 783, 69 Stat. 635, as amended. For complete
classification of this Act to the Code, see Short Title of 1955
Amendments note set out under section 1701 of this title and Tables.
Amendments
1998--Subsec. (a). Pub. L. 105-276, Sec. 601(a), inserted heading
and amended text generally, substituting present provisions for
provisions which authorized mortgagee of foreclosed property to receive
insurance benefit upon conveyance to Secretary of title and assignment
of claims, or upon foreclosure sale or approved sale after default where
at least fair market value was received, set maintenance of property as
condition of receipt of benefit, provided that obligation to pay premium
would cease upon conveyance and assignment and debentures would issue
having par value equal to value of mortgage, and set forth provisions
detailing amounts to be included in debentures or cash payment and
provisions authorizing extension or modification of mortgage where
default was due to circumstances beyond control of mortgagor.
Subsec. (g). Pub. L. 105-276, Sec. 601(d), inserted at end ``The
Secretary may sell real and personal property acquired by the Secretary
pursuant to the provisions of this chapter on such terms and conditions
as the Secretary may prescribe.''
Subsecs. (h), (i). Pub. L. 105-276, Sec. 602, added subsec. (h) and
redesignated former subsec. (h) as (i).
Subsec. (k). Pub. L. 105-276, Sec. 601(c), struck out subsec. (k)
which read as follows: ``Notwithstanding any other provision of this
section or of section 1739 or 1750c of this title and with respect to
any debentures issued in exchange for properties conveyed to and
accepted by the Secretary after September 23, 1959 in accordance with
such sections, the Secretary may (1) include in debentures reasonable
payments made by the mortgagee with the approval of the Secretary for
the purpose of protecting, operating, or preserving the property, and
taxes imposed upon any deed or any other instrument by which the
property was acquired by the mortgagee and transferred or conveyed to
the Secretary; (2) include in debentures as a portion of foreclosure
costs (to the extent that foreclosure costs may be included in such
debentures by any other provision of this chapter) payments made by the
mortgagee for the cost of acquiring the property and conveying and
evidencing title to the property to the Secretary; and (3) terminate the
mortgagee's obligation to pay mortgage insurance premiums upon receipt
of an application for debentures filed by the mortgagee, or in the event
the contract of insurance is terminated pursuant to section 1715t of
this title.''
1996--Subsec. (a). Pub. L. 104-134, in penultimate proviso of last
sentence, substituted ``special forebearance'' for ``special
foreclosure''.
Pub. L. 104-99 inserted ``: And provided further, That the Secretary
may pay insurance benefits to the mortgagee to recompense the mortgagee
for its actions to provide an alternative to the foreclosure of a
mortgage that is in default, which actions may include special
foreclosure, loan modification, and deeds in lieu of foreclosure, all
upon terms and conditions as the mortgagee shall determine in the
mortgagee's sole discretion, within guidelines provided by the
Secretary, but which may not include assignment of a mortgage to the
Secretary: And provided further, That for purposes of the preceding
proviso, no action authorized by the Secretary and no action taken, nor
any failure to act, by the Secretary or the mortgagee shall be subject
to judicial review.'' before period at end of last sentence.
1992--Subsec. (a). Pub. L. 102-550, Sec. 516(a)(1), in fifth
sentence, substituted ``issue to the mortgagee debentures having a par
value'' for ``, subject to the cash adjustment hereinafter provided,
issue to the mortgagee debentures having a total face value''.
Subsec. (c). Pub. L. 102-550, Sec. 516(a)(2), added subsec. (c) and
struck out former subsec. (c) which read as follows: ``Debentures issued
under this section shall be in such form and denominations in multiples
of $50, shall be subject to such terms and conditions, and shall include
such provisions for redemption, if any, as may be prescribed by the
Secretary with the approval of the Secretary of the Treasury, and may be
in coupon or registered form. Any difference between the value of the
mortgage determined as herein provided and the aggregate face value of
the debentures issued, not to exceed $350, shall be adjusted by the
payment of cash by the Secretary to the mortgagee from the Mutual
Mortgage Insurance Fund.''
Subsec. (d). Pub. L. 102-550, Sec. 516(a)(3), (4), in first
sentence, substituted ``issued in the name of'' for ``executed in the
name of'' and ``and shall be negotiable, and, if in book entry form,
transferable, in the manner described by the Secretary in regulations''
for ``, shall be signed by the Secretary by either his written or
engraved signature, and shall be negotiable'' and in fifth sentence,
substituted ``and, in the case of debentures issued in certificated
registered form, such guaranty'' for ``and such guaranty''.
1989--Subsec. (a). Pub. L. 101-235, Sec. 136(a), inserted after
third sentence ``As a condition of the receipt of such benefits, the
mortgagee shall maintain or assure the maintenance of the mortgaged
property (in such manner as the Secretary shall by regulation provide)
during the period beginning on the taking of the possession or other
acquisition of the mortgaged property by the mortgagee and ending on
conveyance to the Secretary or other disposition of the mortgaged
property in accordance with this section, and funds expended by the
mortgagee in meeting such obligation shall be included, to the extent
provided in this subsection or in subsection (k) of this section, in
debentures or other insurance payment pursuant to this section.''
Subsec. (g). Pub. L. 101-235, Sec. 136(b), inserted after first
sentence ``The Secretary shall, by regulation, carry out a program of
sales of such properties and shall develop and implement appropriate
credit terms and standards to be used in carrying out the program.''
1988--Subsec. (a). Pub. L. 100-628, Sec. 1064(a)(1), (2), in second
sentence, substituted ``(1)(A) upon sale'' for ``(1) upon sale'',
inserted cl. (B), and substituted ``; and (2)'' for ``, and (2)''.
Pub. L. 100-628, Sec. 1064(b)(1), in third sentence, substituted
``November 30, 1983 (on or after November 7, 1988, with respect to the
payment of benefits under clause (1)(B) of the preceding sentence),''
for ``the effective date of this sentence''.
Pub. L. 100-628, Sec. 1064(b)(2)(A), in fifth sentence, struck out
``foreclosure'' before ``sale of the property: Provided''.
Subsec. (j). Pub. L. 100-628, Sec. 1064(b)(2)(B), inserted ``clause
(1)(A) of'' before ``the second sentence''.
Subsec. (l). Pub. L. 100-242 added subsec. (l).
1983--Subsec. (a). Pub. L. 98-181, Sec. 426(a), inserted provision
authorizing the Secretary to make the benefit of the insurance available
to the mortgagee upon sale of the insured property at foreclosure and
assignment of all claims to the Secretary and provision relating to
payment of benefits pursuant to a commitment to insure issued on or
after the effective date of this sentence [Nov. 30, 1983], and
substituted ``any amount received as rent or other income from the
property, less reasonable expenses incurred in handling the property,
after either of such dates, and, in the case of insurance benefits paid
in accordance with the second sentence of this section, any amount
received upon the foreclosure sale of the property'' for ``and any
amount received as rent or other income from the property, less
reasonable expenses incurred in handling the property, after either of
such dates''.
Subsec. (j). Pub. L. 98-181, Sec. 426(b), inserted ``(other than a
mortgagee receiving insurance benefits under the second sentence of
subsection (a) of this section)'' after ``section 1709 of this title''.
1967--Pub. L. 90-19, Sec. 1(a)(2), substituted ``Secretary of
Housing and Urban Development'' for ``Federal Housing Commissioner'' in
subsec. (g).
Pub. L. 90-19, Sec. 1(a)(3), substituted ``Secretary'' for
``Commissioner'' wherever appearing in subsecs. (a) to (d), (e)(1),
(f)(1), (f)(1)(i), (ii), (f)(2), (3), (g), (h), (j), and (k).
Subsec. (f)(3). Pub. L. 90-19, Sec. 1(a)(4), substituted
``Secretary's'' for ``Commissioner's'' wherever appearing.
Subsec. (g). Pub. L. 90-19, Sec. 1(d), substituted ``an officer''
for ``the Commissioner or by any Assistant Commissioner''.
1965--Subsec. (a). Pub. L. 89-117, Sec. 1108(d)(1), struck out
reference to section 1715a of this title after reference to section 1709
of this title in first sentence.
Subsec. (c). Pub. L. 89-117, Sec. 1108(d)(2), substituted ``Mutual
Mortgage Insurance Fund'' for ``Fund as to mortgages insured under
section 1709 of this title and from the Housing Fund as to mortgages
insured under section 1715a of this title''.
Subsec. (d). Pub. L. 89-117, Sec. 1108(d)(3)-(6), removed all
references to debentures issued with respect to mortgages insured under
section 1715a of this title and to the Housing Insurance Fund and
substituted Mutual Mortgage Insurance Fund for Fund wherever appearing.
Subsec. (f). Pub. L. 89-117, Sec. 1108(d)(7), struck out provision
of subpar. (1)(i) calling for retention of excess by Commissioner and
credit to the Housing Insurance Fund in the case of mortgages insured
under section 1713 of this title.
1964--Subsec. (a). Pub. L. 88-560, Secs. 104(a), 105(a)(1)-(3),
(6)(B), amended provisions as follows; section 104(a), in proviso
reading ``And provided further, That with respect to any mortgage
covering a one-, two-, three-, or four-family residence'', struck out
``and it is probable that the mortgage will be restored to good standing
within a reasonable period of time'' after ``control of the mortgagor'',
substituted ``upon such terms and conditions'' for ``under such
regulations and conditions'', incorporated authority of Commissioner to
``extend the time for curing default and enter into an agreement with
the mortgage providing that if the mortgage is subsequently foreclosed,
any interest accruing after the date of the agreement which is not paid
by the mortgagor may be included in the debentures'' in cl. (1), and
provided for remainder of cl. (1), cl. (2) and consideration of the
principal amount of the mortgage, as modified, as the ``original
principal obligation of the mortgage'' for purpose of computing total
face value of debentures to be issued or cash payment to be made by
Commissioner to a mortgagee; section 105(a)(1) substituted in third
sentence ``charges for the administration, operation, maintenance and
repair of community-owned property or the maintenance and repair of the
mortgaged property, the obligation for which arises out of a covenant
filed for record and approved by the Commissioner prior to the insurance
of the mortgage, insurance on the mortgaged property, and any mortgage
insurance premiums'' for ``insurance on the mortgaged property, and any
mortgage insurance premiums paid after either of such dates''; section
105(a)(2) inserted provisos reading ``And provided further, That with
respect to a mortgage accepted for insurance pursuant to a commitment
issued on or after September 2, 1964, the Commissioner may include in
debentures or in the cash payment on amount not to exceed the
foreclosure, acquisition, and conveyance costs actually paid by the
mortgagee and approved by the Commissioner'' and ``And provided further,
That with respect to a mortgage accepted for insurance pursuant to a
commitment issued prior to September 2, 1964, the Commissioner may, with
the consent of the mortgagee (in lieu of issuing a certificate of claim
as provided in subsection (e)), included in debentures or in the cash
payment, in addition to amounts otherwise allowed for such costs, an
amount not to exceed one-third of the total foreclosure, acquisition,
and conveyance costs actually paid by the mortgagee and approved by the
Commissioner, but in no event may the total allowance for such costs
exceed the amount actually paid by the mortgagee:''; section 105(a)(3)
struck out from proviso reading ``And provided further, That with
respect to mortgages to which the provisions of sections 532 and 536 of
Appendix To Title 50 apply'' the words ``and the payment of insurance
premiums'' after ``on account of interest on debentures'' and inserted
after such proviso ``And provided further, That where the claim is paid
in cash there shall be included in the cash payment an amount equivalent
to the compensation for loss of debenture interest that would be
included in computing debentures if such claim were being paid in
debentures''; and section 105(a)(6)(B) substituted ``and (subject to
subsection (e)(2) of this section) a certificate of claim'' for ``and a
certificate of claim'' in second sentence.
Subsec. (c). Pub. L. 88-560, Sec. 105(a)(4), increased limitation on
the difference between the value of the mortgage and the aggregate face
value of the debentures issued from $50 to $350.
Subsec. (d). Pub. L. 88-560, Sec. 105(a)(5), substituted ``:
Provided, That debentures issued pursuant to claims for insurance filed
on or after September 2, 1964 shall be dated as of the date of default
or as of such later date as the Commissioner, in his discretion, may
establish by regulation. The debentures'' for ``, except that debentures
issued pursuant to the provisions of section 1715k(f), 1715l(g), and
1715x of this title may be dated as of the date the mortgage is assigned
(or the property is conveyed) to the Commissioner, and'' in second
sentence.
Subsec. (e). Pub. L. 88-560, Sec. 105(a)(6)(A), designated existing
provisions as par. (1), substituted ``Subject to paragraph (2), the
certificate'' for ``The certificate'', and added par. (2).
Subsec. (f). Pub. L. 88-560, Sec. 105(a)(7)-(11), designated
introductory par. as par. (1) and substituted ``If, after deducting (in
such manner and amount as the Commissioner shall determine to be
equitable and in accordance with sound accounting practice) the expenses
incurred by the Commissioner, the net amount realized from any property
conveyed to the Commissioner under this section and the claims assigned
therewith exceed the face value'' for ``If the net amount realized from
any property conveyed to the Commissioner under this section and the
claims assigned therewith, after deducting all expenses incurred by the
Commissioner in handling, dealing with, and disposing of such property
and in collecting such claims, exceeds the face value''; redesignated
former par. (1) as (i) and inserted proviso; redesignated former par.
(2) as (ii); designated concluding par. as par. (2) and inserted
proviso; and added par. (3), respectively.
1961--Subsec. (d). Pub. L. 87-70, Sec. 612(b), permitted debentures
issued pursuant to provisions of section 1715k(f), 1715l(g), and 1715x
of this title to be dated as of the date the mortgage is assigned (or
the property is conveyed) to the Commissioner.
Subsec. (g). Pub. L. 87-70, Sec. 612(c), included instruments
relating to personal property, and inserted proviso requiring that a
conveyance or transfer of title to real or personal property or an
interest therein to the Federal Housing Commissioner, his successors and
assigns, without identifying the Commissioner therein, shall be deemed a
proper conveyance or transfer.
1959--Subsec. (a). Pub. L. 86-372, Sec. 114(b), authorized the
Commissioner, with respect to any mortgage covering a one-, two-, three-
, or four-family residence insured under this chapter, if he finds after
notice of default, that the default was due to circumstances beyond the
control of the mortgagor and it is probable that the mortgage will be
restored to good standing within a reasonable period of time, to extend
the time for curing default and to enter into an agreement with the
mortgagee providing that if the mortgage is subsequently foreclosed, any
interest accruing after the date of the agreement which is not paid by
the mortgagor may be included in the debentures.
Subsec. (k). Pub. L. 86-372, Sec. 117, substituted ``and with
respect to any debentures issued in exchange for properties conveyed to
and accepted by the Commissioner after September 23, 1959 in accordance
with such section'' for ``with respect to any debentures issued pursuant
to this section or section 1739 or 1750c of this title'', and inserted
provisions authorizing inclusion as a portion of the foreclosure costs
payments made by the mortgagee for the cost of acquiring the property
and conveying the evidencing title to the property to the Commissioner,
and permitting the termination of the mortgagee's obligation to pay
mortgage insurance premiums in the event the contract of insurance is
terminated pursuant to section 1715t of this title.
1957--Subsec. (d). Pub. L. 85-104, Sec. 108(a), substituted
``established by the Commissioner pursuant to section 1715o of this
title'' for ``determined by the Commissioner, with the approval of the
Secretary of the Treasury, at the time the mortgage was offered for
insurance, but not to exceed 3 per centum per annum'' in second
sentence.
Subsec. (k). Pub. L. 85-104, Sec. 107, added subsec. (k).
1955--Subsec. (f). Act Aug. 11, 1955, authorized the Commissioner to
effect the settlement of certificates of claim and refunds to
mortgagors.
1954--Subsec. (a). Act Aug. 2, 1954, Sec. 111(l), permitted a
mortgagee to receive in debentures amounts paid by it for Federal taxes
imposed on a deed to it and on a deed to the Commissioner; (2)
substituted, in second proviso, ``or under section 1715e of this title,
or with respect to any mortgage accepted for insurance under section
1709 of this title on or after August 2, 1954,'' for ``or under section
1715e of this title''; and (3) inserted proviso permitting direct
conveyances to the Commissioner.
Subsec. (d). Act Aug. 2, 1954, Sec. 112(a), substituted provision
for a straight 20-year maturity on debentures for former provision that
the debentures should mature ``three years after the 1st day of July
following the maturity date of the mortgage on the property in exchange
for which the debentures were issued, except that debentures issued with
respect to mortgages insured under section 1715e of this title shall
mature twenty years after the date of such debentures'' in second
sentence.
Subsec. (j). Act Aug. 2, 1954, Sec. 113, added subsec. (j).
1951--Subsec. (d). Sept. 1, 1951, inserted in second sentence the
provision that debentures issued with respect to mortgages insured under
section 1715e of this title shall mature twenty years after the date of
such debentures.
1950--Act Apr. 20, 1950, Sec. 122, substituted ``Commissioner'' for
``Administrator'' wherever appearing.
Subsec. (a). Act Apr. 20, 1950, Sec. 105, inserted ``or under
section 1715e of this title'' in second proviso.
1948--Subsec. (a). Act Aug. 10, 1948, Sec. 101(l)(1), (2), struck
out ``prior to July 1, 1944'' in first proviso and inserted second
proviso.
Subsec. (f). Act Aug. 10, 1948, Sec. 101(q), inserted ``if the
mortgage was insured under section 1709 of this title and shall be
retained by the Administrator and credited to the Housing Insurance Fund
if the mortgage was insured under section 1713 of this title'' before
the colon in par. (1).
1943--Subsec. (a). Act Oct. 14, 1943, inserted proviso.
1941--Subsec. (a). Act June 28, 1941, substituted ``July 1, 1944''
for ``July 1, 1941'' in last sentence.
1939--Subsec. (a). Act June 3, 1939, Sec. 9, amended last sentence
generally.
Subsec. (g). Act June 3, 1939, Sec. 10, inserted last sentence.
1938--Subsecs. (a) to (f). Act Feb. 3, 1938, amended provisions
generally.
Subsecs. (g), (h). Act Feb. 3, 1938, added subsecs. (g) and (h).
1937--Subsec. (b). Act Joint Res. Feb. 19, 1937, substituted ``July
1, 1939'' for ``July 1, 1937''.
1935--Subsec. (a). Act May 28, 1935, amended last sentence
generally.
Effective Date of 1998 Amendment
Pub. L. 105-276, title VI, Sec. 601(b), Oct. 21, 1998, 112 Stat.
2673, provided that: ``The Secretary shall publish a notice in the
Federal Register stating the effective date of the terms and conditions
prescribed by the Secretary under section 204(a)(1) of the National
Housing Act [12 U.S.C. 1710(a)(1)], as amended by subsection (a) of this
section. Subsections (a) and (k) of section 204 of the National Housing
Act [12 U.S.C. 1710(a), (k)], as in effect immediately before such
effective date, shall continue to apply to any mortgage insured under
section 203 of the National Housing Act [12 U.S.C. 1709] before such
effective date, except that the Secretary may, at the request of the
mortgagee, pay insurance benefits as provided in subparagraphs (A) and
(D) of section 204(a)(1) of such Act [12 U.S.C. 1710(a)(1)(A), (D)] to
calculate insurance benefits in accordance with section 204(a)(5) of
such Act [12 U.S.C. 1710(a)(5)].''
Effective Date of 1996 Amendment
Section 407(c) of Pub. L. 104-99, as amended by Pub. L. 104-134,
title I, Sec. 101(e) [title II, Sec. 221(d)], Apr. 26, 1996, 110 Stat.
1321-257, 1321-291; renumbered title I, Pub. L. 104-140, Sec. 1(a), May
2, 1996, 110 Stat. 1327; Pub. L. 104-204, title II, Sec. 203, Sept. 26,
1996, 110 Stat. 2894; Pub. L. 105-33, title II, Sec. 2002(1), Aug. 5,
1997, 111 Stat. 257, provided that: ``Except as provided in subsection
(e) [110 Stat. 46, repealed by Pub. L. 105-33, Sec. 2002(2)], the
amendments made by subsections (a) and (b) [amending this section and
section 1715u of this title] shall apply with respect to mortgages
insured under the National Housing Act [12 U.S.C. 1701 et seq.] that are
executed before, on, or after October 1, 1997.''
Effective Date of 1954 Amendment
Section 112(e) of act Aug. 2, 1954, provided that: ``This section
[amending this section and sections 1713, 1748b, and 1750c of this
title] shall not apply in any case where the mortgage involved was
insured or the commitment for such insurance was issued prior to the
effective date of the Housing Act of 1954 [Aug. 2, 1954].''
Regulations
Section 101(e) [title II, Sec. 221(c)(1)] of Pub. L. 104-134
provided that: ``Not later than 30 days after the date of enactment of
this Act [Apr. 26, 1996], the Secretary of Housing and Urban Development
shall issue interim regulations to implement section 407 of the Balanced
Budget Downpayment Act, I [Pub. L. 104-99, amending this section and
section 1715u of this title and enacting provisions set out as a note
above], and the amendments to the National Housing Act made by that
section.''
Section 407(d) of Pub. L. 104-99, which directed the Secretary of
Housing and Urban Development to issue interim regulations to implement
section 407 of Pub. L. 104-99 and amendments made by that section
(amending this section and section 1715u of this title and enacting
provisions set out as a note above) not later than 60 days after Jan.
26, 1996, was repealed by Pub. L. 104-134, title I, Sec. 101(e) [title
II, Sec. 221(c)(2)], Apr. 26, 1996, 110 Stat. 1321-257, 1321-291;
renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110 Stat.
1327.
Section 1064(c) of Pub. L. 100-628 provided that: ``In developing
regulations to carry out the amendments made by this section [amending
this section], the Secretary of Housing and Urban Development may
delegate to mortgagees the authority to make determinations on behalf of
the Secretary, and the Secretary shall rely on certifications and post
audit reviews to the greatest extent possible.''
Asset Control Area Demonstration Program Agreements, Contracts, and
Regulations
Pub. L. 107-206, title I, Sec. 1303, Aug. 2, 2002, 116 Stat. 897,
provided that: ``The Secretary of Housing and Urban Development shall
begin to enter into new agreements and contracts pursuant to the Asset
Control Area Demonstration Program as provided in section 602 of Public
Law 105-276 [amending this section] not later than September 15, 2002:
Provided, That any agreement or contract entered into pursuant to such
program shall be consistent with the requirements of such section 602:
Provided further, That the Department shall develop proposed regulations
for this program not later than September 15, 2002.''
Transfer of HUD Assets in Revitalization Areas
Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 142], Dec. 21, 2000,
114 Stat. 2763, 2763A-618, provided that: ``In carrying out the program
under section 204(h) of the National Housing Act (12 U.S.C. 1710(h)),
upon the request of the chief executive officer of a county or the
government of appropriate jurisdiction and not later than 60 days after
such request is made, the Secretary of Housing and Urban Development
shall designate as a revitalization area all portions of such county
that meet the criteria for such designation under paragraph (3) of such
section.''
Settlement Costs in the Financing of Federal Housing Administration and
Veterans' Administration Assisted Housing; Study and Recommendations to
Congress on Reduction and Standardization of Costs
Pub. L. 91-351, title VII, Sec. 701, July 24, 1970, 84 Stat. 461,
provided that:
``(a) With respect to housing built, rehabilitated, or sold with
assistance provided under the National Housing Act [this chapter] or
under chapter 37 of title 38, United States Code, the Secretary of
Housing and Urban Development and the Administrator of Veterans' Affairs
are respectively authorized and directed to prescribe standards
governing the amounts of settlement costs allowable in connection with
the financing of such housing in any such area. Such standards shall--
``(1) be established after consultation between the Secretary
and the Administrator;
``(2) be consistent in any area for housing assisted under the
National Housing Act and housing assisted under chapter 37 of title
38, United States Code; and
``(3) be based on the Secretary's and the Administrator's
estimates of the reasonable charge for necessary services involved
in settlements for particular classes of mortgages and loans.
``(b) The Secretary and the Administrator shall undertake a joint
study and make recommendations to the Congress not later than one year
after the date of enactment of this Act [July 24, 1970] with respect to
legislative and administrative actions which should be taken to reduce
mortgage settlement costs and to standardize these costs for all
geographic areas.''
Section Referred to in Other Sections
This section is referred to in sections 1706c, 1709, 1712, 1715e,
1715k, 1715l, 1715m, 1715n, 1715u, 1715x, 1715y, 1715z-3, 1715z-11a,
1715z-12, 1715z-13, 1715z-17, 1748h-1, 1748h-2, 1750c, 3763 of this
title; title 42 section 11408.
