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12 U.S.C. § 1738 — Delegation of insuring authority to direct endorsement mortgagees

Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 1738 — Delegation of insuring authority to direct endorsement mortgagees

**(a) Authority** The Secretary may delegate, to one or more mortgagees approved by the Secretary under the direct endorsement program, the authority of the Secretary under this chapter to insure mortgages involving property upon which there is located a dwelling designed principally for occupancy by 1 to 4 families. **(b) Considerations** In determining whether to delegate authority to a mortgagee under this section, the Secretary shall consider the experience and performance of the mortgagee compared to the default rate of all insured mortgages in comparable markets, and such other factors as the Secretary determines appropriate to minimize risk of loss to the insurance funds under this chapter. **(c) Enforcement of insurance requirements** (1) **In general** — If the Secretary determines that a mortgage insured by a mortgagee pursuant to delegation of authority under this section was not originated in accordance with the requirements established by the Secretary, and the Secretary pays an insurance claim with respect to the mortgage within a reasonable period specified by the Secretary, the Secretary may require the mortgagee approved under this section to indemnify the Secretary for the loss. (2) **Fraud or misrepresentation** — If fraud or misrepresentation was involved in connection with the origination, the Secretary may require the mortgagee approved under this section to indemnify the Secretary for the loss regardless of when an insurance claim is paid. **(d) Termination of mortgagee’s authority** If a mortgagee to which the Secretary has made a delegation under this section violates the requirements and procedures established by the Secretary or the Secretary determines that other good cause exists, the Secretary may cancel a delegation of authority under

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Source file: Laws/federal/codes/united-states-code/title-12/section-1738-delegation-of-insuring-authority-to-direct-endorsement-mortgagees--5f8c54e5bc.md
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Source location: Title 12, Chapter 13, § 1738; chapter-013-national-housing.md

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Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 1701d–4 — Mortgage insurance benefits

**(a) Conveyance and assignment by mortgagee after foreclosure; debentures and certificates of claim; cost of foreclosure** In any case in which the mortgagee under a mortgage insured under [section 1738 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1738&num=0&edition=prelim) shall have foreclosed and taken possession of the mortgaged property, in accordance with regulations of, and within a period to be determined by, the Secretary, or shall, with the consent of the Secretary, have otherwise acquired such property from the mortgagor after default, the mortgagee shall be entitled to receive the benefit of the insurance as hereinafter provided, upon (1) the prompt conveyance to the Secretary of title to the property which meets the requirements of rules and regulations of the Secretary in force at the time the mortgage was insured, and which is evidenced in the manner prescribed by such rules and regulations; and (2) the assignment to him of all claims of the mortgagee against the mortgagor or others, arising out of the mortgage transaction or foreclosure proceedings, except such claims as may have been released with the consent of the Secretary. Upon such conveyance and assignment the obligation of the mortgagee to pay the premium charges for insurance shall cease and the Secretary shall, subject to the cash adjustment hereinafter provided, issue to the mortgagee debentures having a total face value equal to the value of the mortgage and a certificate of claim, as hereinafter provided. For the purposes of this subsection, the value of the mortgage shall be determined, in accordance with rules and regulations prescribed by the Secretary, by adding to the amount of the original principal obligation of the mortgage which was unp

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Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 1701g–4 — Insurance of mortgages

**(a) Additional authorization; advances during construction** In addition to mortgages insured under [section 1738 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1738&num=0&edition=prelim), the Secretary is authorized to insure mortgages as defined in [section 1736 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1736&num=0&edition=prelim) (including advances on such mortgages during construction) which are eligible for insurance as hereinafter provided. **(b) Eligibility requirements** To be eligible for insurance under this section a mortgage shall meet the following conditions: (1) The mortgaged property shall be held by a mortgagor approved by the Secretary. The Secretary may, in his discretion, require such mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation. The Secretary may make such contracts with, and acquire for not to exceed $100 stock or interest in any such mortgagor, as the Secretary may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the General Insurance Fund, and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Secretary under the insurance. (2) Preference or priority of opportunity in the occupancy of the mortgaged property for veterans of World War II and their immediate families, and for hardship cases as defined by the Secretary, shall be provided under such regulations and procedures as may be prescribed by the Secretary. (3) The mortgage shall involve a principal obligation in an amount— (A) not to exceed $5,000,000; and (B) not to exceed 90 per centum of the amount wh

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Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 1701g–5a — Insurance of mortgages on sales of Government housing; limits and conditions; Greenbelt towns; State housing

Notwithstanding any of the provisions of this subchapter, the Secretary is authorized, upon application by the mortgagee, to insure or to make commitments to insure under section 1738 or [section 1743 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1743&num=0&edition=prelim) any mortgage executed in connection with the sale by the Government, or any agency or official thereof, of any housing acquired or constructed under Public Law 849, Seventy-sixth Congress, as amended; Public Law 781, Seventy-sixth Congress, as amended; or Public Laws 9, 73, or 353, Seventy-seventh Congress, as amended (including any property acquired, held or constructed in connection with such housing or to serve the inhabitants thereof), without regard to— (1) any limit as to the time when any mortgage may be insured under this subchapter; (2) any limit as to the aggregate amount of principal obligations of all mortgages insured under this subchapter, but the aggregate amount of principal obligations of all mortgages insured pursuant to this section shall not exceed $750,000,000; (3) any requirement that the obligation be approved for mortgage insurance prior to the beginning of construction or that the construction be new construction; (4) any of the provisions of subsections (b)(2) or (b)(5) of [section 1738 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1738&num=0&edition=prelim) or paragraphs (B) and (C) of the first sentence of [section 1743(b)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1743/b/3&num=0&edition=prelim): The Secretary is further authorized to insure or to make commitments to insure in accordance with the provisions of this section any mort

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Federal law — U.S. Code and appendices · legal_authorities

12 U.S.C. § 1738 — Insurance of mortgages

Page 808 TITLE 12—BANKS AND BANKING § 1737 1742 of this title, and section 609k of Title 15, Commerce and Trade, and amending sections 371, 1430, 1702, 1706, 1707, 1713, and 1715, 1716, 1717 of this title] or the appli- cation thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.’’ § 1737. Repealed. Pub. L. 89–117, title XI, § 1108(aa), Aug. 10, 1965, 79 Stat. 507 Section, act June 27, 1934, ch. 847, title VI, § 602, as added Mar. 28, 1941, ch. 31, § 1, 55 Stat. 55; amended May 26, 1942, ch. 319, § 14(b) 56 Stat. 305; June 30, 1947, ch. 166, title II, § 206(l), 61 Stat. 208; 1947 Reorg. Plan No. 3, § 3, eff. July 27, 1947, 12 F.R. 4981, 61 Stat. 954; Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59, created the War Housing Insurance Fund. For establishment of the General Insurance Fund, see section 1735c of this title. § 1738. Insurance of mortgages (a) Relief of housing shortage; eligibility; limita- tions on time and amount In order to assist in relieving the acute short- age of housing which now exists and to increase the supply of housing accommodations available to veterans of World War II at prices within their reasonable ability to pay, the Secretary is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage which is eligible for insurance as hereinafter provided, and, upon such terms as the Secretary may prescribe, to make commitments for the in- suring of such mortgages prior to the date of their execution or disbursement thereon: Pro- vided, That the aggregate amount of principal obligations of all mortgages insured under this subchapter shall not exceed $6

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