§ 1715m. — Mortgage insurance for servicemen.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715m]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715m. Mortgage insurance for servicemen
(a) Purpose; housing certificates
The purpose of this section is to aid in the provision of housing
accommodations for servicemen in the armed forces of the United States
and their families, servicemen in the United States Coast Guard and
their families, and servicemen in the United States National Oceanic and
Atmospheric Administration and their families by supplementing the
insurance of mortgages under section 1709 of this title with a system of
mortgage insurance specially designed to assist the financing required
for the construction or purchase of dwellings by those persons. As used
in this section, a ``serviceman'' means a person to whom the Secretary
of Defense (or any officer or employee designated by him), the Secretary
of Transportation (or any officer or employee designated by him), or the
Secretary of Commerce (or any officer or employee designated by him), as
the case may be, has issued a certificate hereunder indicating that such
person requires housing, is serving on active duty in the armed forces
of the United States, in the United States Coast Guard, or in the United
States National Oceanic and Atmospheric Administration and has served on
active duty for more than two years, but a certificate shall not be
issued hereunder to any person ordered to active duty for training
purposes only. The Secretary of Defense, the Secretary of
Transportation, and the Secretary of Commerce, respectively, are
authorized to prescribe rules and regulations governing the issuance of
such certificates and may withhold issuance of more than one such
certificate to a serviceman whenever in his discretion issuance is not
justified due to circumstances resulting from military assignment, or,
in the case of the United States Coast Guard or the United States
National Oceanic and Atmospheric Administration, other assignment.
(b) Eligibility of mortgage for insurance
To be eligible for insurance under this section a mortgage shall--
(1) meet the requirements of section 1709(b), 1709(i),
1715l(d)(2), or 1715y(c) of this title, except as such requirements
are modified by this section;
(2) involve a dwelling designed principally for a one-family
residence or a one-family unit in a condominium project;
(3) have a principal obligation not in excess of the sum of (i)
97 per centum of $25,000 of the appraised value of the property as
of the date the mortgage is accepted for insurance, and (ii) 95 per
centum of such value in excess of $25,000; and
(4) be executed by a mortgagor who at the time of application
for insurance is certified as a ``serviceman'' and who at the time
of insurance is the owner of the property and either occupies the
property as a principal residence or certifies that his failure to
do so is the result of his military assignment, or, in the case of
the United States Coast Guard or the United States National Oceanic
and Atmospheric Administration, other assignment.
(c) Manner of acceptance; payment of premiums
The Secretary may prescribe the manner in which a mortgage may be
accepted for insurance under this section. Premiums fixed by the
Secretary under section 1709 of this title with respect to, or payable
during, the period of ownership by a serviceman of the property involved
shall not be payable by the mortgage \1\ but shall be paid not less
frequently than once each year, upon request of the Secretary to the
Secretary of Defense, the Secretary of Transportation, or the Secretary
of Commerce, as the case may be, from the respective appropriations
available for pay and allowances of persons eligible for mortgage
insurance under this section. As used herein, ``the period of ownership
by a serviceman'' means the period, for which premiums are fixed, prior
to the date that the Secretary of Defense (or any officer or employee or
other person designated by him), the Secretary of Transportation (or any
officer or employee or other person designated by him), or the Secretary
of Commerce (or any officer or employee or other person designated by
him), as the case may be, furnishes the Secretary with a certification
that such ownership (as defined by the Secretary), has terminated.
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\1\ So in original. Probably should be ``mortgagee''.
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(d) Entitlement of mortgagee to benefits
Any mortgagee under a mortgage insured under this section is
entitled to the benefits of the insurance as provided in section 1710(a)
of this title with respect to mortgages insured under section 1709 of
this title.
(e) Applicability of other provisions
The provisions of subsections (b), (c), (d), (e), (f), (g), (h),\2\
(j), and (k) \2\ of section 1710 of this title shall apply to mortgages
insured under this section, except that as applied to those mortgages
(1) all references to the Fund, or Mutual Mortgage Insurance Fund, shall
refer to the General Insurance Fund, and (2) all references to section
1709 of this title shall refer to this section.
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\2\ See References in Text note below.
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(f) Transfer of insurance on mortgages covering single-family dwellings
or one-family units in condominium projects if mortgage is
assumed by serviceman
The Secretary is authorized to transfer to this section the
insurance on any mortgage covering a single-family dwelling or a one-
family unit in a condominium project insured under this chapter, if the
mortgage indebtedness thereof has been assumed by a serviceman who at
the time of assumption is the owner of the property and either occupies
the property as a principal residence or certifies that his failure to
do so is the result of his military assignment, or, in the case of the
United States Coast Guard or the United States National Oceanic and
Atmospheric Administration, other assignment.
(g) Extension of period of ownership where serviceman dies while on
active duty
Where a serviceman dies while on active duty in the armed forces of
the United States or in the United States Coast Guard or in the United
States National Oceanic and Atmospheric Administration, leaving a
surviving widow as owner of the property, the period of ownership by the
serviceman (within the meaning of subsection (c) of this section) shall
extend for two years beyond the date of the serviceman's death or until
the date the widow disposes of the property, whichever date occurs
first. The Secretary of Defense or the Secretary of Transportation, or
the Secretary of Commerce, as the case may be, shall notify such widow
promptly following the serviceman's death of the additional costs to be
borne by the mortgagor following termination of the two-year period.
(June 27, 1934, ch. 847, title II, Sec. 222, as added Aug. 2, 1954, ch.
649, title I, Sec. 124, 68 Stat. 603; amended Pub. L. 85-104, title I,
Secs. 103, 112, July 12, 1957, 71 Stat. 296, 297; Pub. L. 86-372, title
I, Secs. 111, 116(b), Sept. 23, 1959, 73 Stat. 661, 664; Pub. L. 88-560,
title I, Sec. 115, Sept. 2, 1964, 78 Stat. 779; Pub. L. 89-117, title
II, Sec. 212, title XI, Sec. 1108(j), Aug. 10, 1965, 79 Stat. 470, 505;
Pub. L. 90-19, Sec. 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 90-448,
title III, Sec. 301, Aug. 1, 1968, 82 Stat. 505; Pub. L. 91-152, title
I, Secs. 102(c), 105, 113(f), Dec. 24, 1969, 83 Stat. 380, 381, 384;
Pub. L. 91-621, Sec. 7(b), Dec. 31, 1970, 84 Stat. 1865; Pub. L. 93-383,
title III, Secs. 302(d), 310(c), Aug. 22, 1974, 88 Stat. 676, 682; Pub.
L. 95-128, title III, Secs. 303(d), 304(c), Oct. 12, 1977, 91 Stat.
1132, 1133; Pub. L. 96-153, title III, Sec. 312(c), Dec. 21, 1979, 93
Stat. 1116; Pub. L. 96-399, title III, Sec. 336(c), Oct. 8, 1980, 94
Stat. 1654; Pub. L. 100-242, title IV, Sec. 406(b)(14), Feb. 5, 1988,
101 Stat. 1901.)
References in Text
The General Insurance Fund, referred to in text, was established by
section 1735c of this title.
Subsection (h) of section 1710 of this title, referred to in subsec.
(e), was redesignated subsec. (i) by Pub. L. 105-276, title VI,
Sec. 602(1), Oct. 21, 1998, 112 Stat. 2674.
Subsection (k) of section 1710 of this title, referred to in subsec.
(e), was repealed by Pub. L. 105-276, title VI, Sec. 601(c), Oct. 21,
1998, 112 Stat. 2673.
Codification
The text reading ``servicemen in the armed forces of the United
States and their families, servicemen in the United States Coast Guard
and their families, and servicemen in the United States National Oceanic
and Atmospheric Administration and their families'' read in subsec. (a)
as amended by Pub. L. 91-621 ``servicemen in the armed forces of the
United States Coast Guard and their families, and servicemen in the
United States National Oceanic and Atmospheric Administration and their
families'' and expresses the Congressional intent as manifest in the
legislative history.
Amendments
1988--Subsecs. (b)(4), (f). Pub. L. 100-242 inserted ``as a
principal residence'' after ``occupies the property''.
1980--Subsec. (b)(2). Pub. L. 96-399 substituted provisions relating
to dwelling designed principally for a one-family residence or a one-
family unit in a condominium project, for provisions setting forth
maximum dollar amounts for the principal obligation involved.
1979--Subsec. (b)(2). Pub. L. 96-153 substituted ``$67,500'' for
``$60,000''.
1977--Subsec. (b). Pub. L. 95-128 substituted ``$60,000'' for
``$45,000'' in par. (2) and ``and (ii) 95 per centum of such value in
excess of $25,000'' for ``(ii) 90 per centum of such value in excess of
$25,000 but not in excess of $35,000, and (iii) 80 per centum of such
value in excess of $35,000'' in par. (3).
1974--Subsec. (b)(2). Pub. L. 93-383, Sec. 302(d), substituted
``$45,000'' for ``$33,000''.
Subsec. (b)(3). Pub. L. 93-383, Sec. 310(c), in cl. (i) substituted
``$25,000'' for ``$15,000'', in cl. (ii) substituted ``$25,000'' for
``$15,000'' and ``$35,000'' for ``$25,000'' and in cl. (iii) substituted
``80'' for ``85'' and ``$35,000'' for ``$25,000''.
1970--Pub. L. 91-621 extended benefits accorded members of the armed
forces under this chapter with respect to insurance of mortgages to
servicemen in the United States National Oceanic and Atmospheric
Administration, inserting references to such Administration and the
Secretary of Commerce in subsecs. (a), (b)(4), (c), (f), and (g) as the
executive officer for effecting such benefits.
1969--Subsec. (b)(1). Pub. L. 91-152, Sec. 105, inserted reference
to section 1715y(c) of this title.
Subsec. (b)(2). Pub. L. 91-152, Sec. 113(f), substituted ``$33,000''
for ``$30,000''.
Subsec. (b)(3). Pub. L. 91-152, Sec. 102(c), substituted ``$25,000''
for ``$20,000'' wherever appearing.
1968--Subsecs. (a), (c). Pub. L. 90-448, Sec. 301(1), substituted
``Secretary of Transportation'' for ``Secretary of the Treasury''
wherever appearing.
Subsecs. (f), (g). Pub. L. 90-448, Sec. 301(2), added subsecs. (f)
and (g). A prior subsec. (f) was repealed by Pub. L. 89-117.
1967--Subsecs. (b)(2), (c). Pub. L. 90-19 substituted ``Secretary''
for ``Commissioner'' wherever appearing.
1965--Subsec. (b)(2). Pub. L. 89-117, Sec. 212(1), substituted
``$30,000'' for ``$20,000''.
Subsec. (b)(3). Pub. L. 89-117, Sec. 212(2), substituted provisions
prohibiting the mortgage to have a principal obligation in excess of the
sum of (i) 97 per centum of $15,000 of the appraised value of the
property as of the date the mortgage is accepted for insurance, (ii) 90
per centum of such value in excess of $15,000 but not in excess of
$20,000, and (iii) 85 per centum of such value in excess of $20,000 for
provisions which prohibited the mortgage to have a principal obligation
in an amount in excess of 95 per centum of the appraised value of the
property or such higher amount as may be derived by applying the maximum
ratio of loan to value prescribed in section 1709(b)(2) of this title.
Subsec. (e). Pub. L. 89-117, Sec. 1108(j)(1), substituted ``General
Insurance Fund'' for ``Servicemen's Mortgage Insurance Fund''.
Subsec. (f). Pub. L. 89-117, Sec. 1108(j)(2), repealed subsec. (f)
which created the Servicemen's Mortgage Insurance Fund, provided for
transfer of funds thereto, and authorized purchase and cancellation of
debentures and payment and credit of charges.
1964--Subsec. (b)(1). Pub. L. 88-560, Sec. 115(1), inserted
reference to section 1715l(d)(2) of this title.
Subsec. (b)(2). Pub. L. 88-560, Sec. 115(2), substituted ``or
section 1715l(d)(2) of this title such principal obligation shall not
exceed the maximum limits prescribed for such section'' for ``such
principal obligation shall not exceed $9,000''.
1959--Subsec. (b)(1). Pub. L. 86-372, Sec. 111(1), inserted
reference to section 1709(i) of this title.
Subsec. (b)(2). Pub. L. 86-372, Sec. 111(2), substituted ``$20,000,
except that in the case of a mortgage meeting the requirements of
section 1709(i) of this title such principal obligation shall not exceed
$9,000'' for ``$17,100''.
Subsec. (e). Pub. L. 86-372, Sec. 116(b), inserted reference to
subsec. (k) of section 1710 of this title.
1957--Subsec. (b). Pub. L. 85-104, Sec. 103, substituted cls. (1),
(2), and (3), for former provision which read: ``In addition to
mortgages insured under section 1709 of this title, the Commissioner
may, for the purpose of this section, insure any mortgage under this
section which would be eligible for insurance under section 1709 of this
title, except that as to mortgages so insured the maximum ratio of loan
to value may, in the discretion of the Commissioner, exceed the maximum
ratio of loan to value prescribed in said section but not to exceed in
any event 95 per centum of the appraised value of the property and not
to exceed $17,100:'', and which designated former proviso as cl. (4).
Subsec. (e). Pub. L. 85-104, Sec. 112, substituted ``(h), and (j) of
section 1710 of this title'' for ``and (h) of section 1710 of this
title''.
Effective Date of 1988 Amendment
Amendment by Pub. L. 100-242 applicable only with respect to
mortgages insured pursuant to conditional commitment issued on or after
Feb. 5, 1988, or in accordance with direct endorsement program (24 CFR
200.163), if approved underwriter of mortgagee signs appraisal report
for property on or after Feb. 5, 1988, see section 406(d) of Pub. L.
100-242, set out as a note under section 1709 of this title.
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the
Coast Guard, including the authorities and functions of the Secretary of
Transportation relating thereto, to the Department of Homeland Security,
and for treatment of related references, see sections 468(b), 551(d),
552(d), and 557 of Title 6, Domestic Security, and the Department of
Homeland Security Reorganization Plan of November 25, 2002, as modified,
set out as a note under section 542 of Title 6.
Section Referred to in Other Sections
This section is referred to in sections 1709, 1715q of this title;
title 10 sections 2831, 2833.
