§ 3751. — Findings and purpose.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3751]
TITLE 12--BANKS AND BANKING
CHAPTER 38A--SINGLE FAMILY MORTGAGE FORECLOSURE
Sec. 3751. Findings and purpose
(a) Findings
The Congress finds that--
(1) the disparate State laws under which mortgages are
foreclosed on behalf of the Secretary covering 1- to 4-family
residential properties--
(A) burden certain programs administered by the Secretary;
(B) increase the costs of collecting obligations; and
(C) generally are a detriment to the community in which the
properties are located;
(2) the long periods required to complete the foreclosure of
such mortgages under certain State laws--
(A) lead to deterioration in the condition of the properties
involved;
(B) necessitate substantial Federal holding expenditures;
(C) increase the risk of vandalism, fire loss, depreciation,
damage, and waste with respect to the properties; and
(D) adversely affect the neighborhoods in which the
properties are located;
(3) these conditions seriously impair the ability of the
Secretary to protect the Federal financial interest in the affected
properties and frustrate attainment of the objectives of the
underlying Federal program authority;
(4) the availability of uniform and more expeditious procedures,
with no right of redemption in the mortgagor or others, for the
foreclosure of these mortgages by the Secretary will tend to
ameliorate these conditions; and
(5) providing the Secretary with a nonjudicial foreclosure
procedure will reduce unnecessary litigation by removing many
foreclosures from the courts if they contribute to overcrowded
calendars.
(b) Purpose
The purpose of this chapter is to create a uniform Federal
foreclosure remedy for single family mortgages that--
(1) are held by the Secretary pursuant to title I or title II of
the National Housing Act [12 U.S.C. 1702 et seq., 1707 et seq.]; or
(2) secure loans obligated by the Secretary under section 1452b
\1\ of title 42.
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\1\ See References in Text note below.
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(Pub. L. 103-327, title II, Sept. 28, 1994, 108 Stat. 2316.)
References in Text
The National Housing Act, referred to in subsec. (b)(1), is act June
27, 1934, ch. 847, 48 Stat. 1246, as amended. Titles I and II of the Act
are classified generally to subchapters I (Sec. 1702 et seq.) and II
(Sec. 1707 et seq.), respectively, of chapter 13 of this title. For
complete classification of this Act to the Code, see section 1701 of
this title and Tables.
Section 1452b of title 42, referred to in subsec. (b)(2), was
repealed by Pub. L. 101-625, title II, Sec. 289(b)(1), Nov. 28, 1990,
104 Stat. 4128.
Codification
Section is based on section 802 of title VIII of S. 2281, One
Hundred Third Congress, as reported July 13, 1994, which was enacted
into law by Pub. L. 103-327.
Effective Date
Title II of Pub. L. 103-327, Sept. 28, 1994, 108 Stat. 2316,
provided in part that title VIII of S. 2281, One Hundred Third Congress,
as reported July 13, 1994, which is classified to this chapter, is
incorporated into Pub. L. 103-327 and deemed enacted into law upon
enactment of Pub. L. 103-327, which was approved Sept. 28, 1994.
Short Title
Section 801 of title VIII of S. 2281, One Hundred Third Congress, as
reported July 13, 1994, which was enacted into law by title II of Pub.
L. 103-327, Sept. 28, 1994, 108 Stat. 2316, provided in part, that:
``This title [enacting this chapter] may be cited as the `Single Family
Mortgage Foreclosure Act of 1994'.''