12 U.S.C. § 2706 — Emergency Homeowners’ Relief Fund

Page 1460 TITLE 12—BANKS AND BANKING § 2705 1 See References in Text note below. under this section shall be final and incontest- able after two years from the date the claim was certified for payment by the Secretary, in the absence of fraud or misrepresentation on the part of such institution unless a demand for re- purchase of the obligation shall have been made on behalf of the United States prior to the expi- ration of such two-year period. The Secretary is authorized to transfer to any financial institu- tion approved for insurance under this chapter any insurance in connection with any loan which may be sold to it by another insured fi- nancial institution. (d) Maximum aggregate amount of loans and ad- vances insured The aggregate amount of loans and advances insured under this section and emergency mort- gage relief payments made under section 2705 of this title shall not exceed $3,000,000,000. (e) Underwriting guidelines and procedures The Secretary shall establish underwriting guidelines or procedures to allocate amounts made available for loans and advances insured under this section and for emergency relief pay- ments made under section 2705 of this title based on the likelihood that a mortgagor will be able to resume mortgage payments, pursuant to the requirement under section 2702(5) of this title. (Pub. L. 94–50, title I, § 105, July 2, 1975, 89 Stat. 251; Pub. L. 111–203, title XIV, § 1496(b)(3), July 21, 2010, 124 Stat. 2208.) Editorial Notes AMENDMENTS 2010—Subsecs. (b) to (d). Pub. L. 111–203, § 1496(b)(3)(A), (C), redesignated subsecs. (c) to (e) as (b) to (d), respectively, and struck out former subsec. (b). Prior to amendment, text of subsec. (b) read as follows: ‘‘In no case shall the insurance granted by the Sec- retary under this section to any financial institution on loans and advances made by such financial institu- tion for the purposes of this chapter exceed 40 per cen- tum of the total amount of such loans and advances made by the institution, except that, with respect to any individual loan or advance of credit, the amount of any claim for loss on such individual loan or advance of credit paid by the Secretary under the provision of this section shall not exceed 90 per centum of such loss.’’ Subsec. (e). Pub. L. 111–203, § 1496(b)(3)(D), added sub- sec. (e). Former subsec. (e) redesignated (d). Pub. L. 111–203, § 1496(b)(3)(B), inserted ‘‘and emer- gency mortgage relief payments made under section 2705 of this title’’ after ‘‘insured under this section’’ and substituted ‘‘$3,000,000,000’’ for ‘‘$1,500,000,000 at any one time’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amend- ment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade. § 2705. Emergency mortgage relief payments (a) Direct payments to mortgagee In the case of any mortgagee which would oth- erwise be eligible to participate in the program authorized under section 2704 of this title but does not qualify for an advance or advances as authorized by section 2712 1 of this title or under section 1430, 1430b, or 1431 of this title or other- wise elects not to participate in the program au- thorized under section 2704 of this title, the Sec- retary is authorized to make repayable emer- gency mortgage relief payments directly to such mortgagee on behalf of homeowners whose mort- gages are held by such financial institution and who are delinquent in their mortgage payments. (b) Mortgages eligible; terms and conditions Emergency mortgage relief payments shall be made under this section only with respect to a mortgage which meets the requirements of sec- tion 2702 of this title and only on such terms and conditions as the Secretary may prescribe, sub- ject to the provisions of section 2703 of this title. (c) Processing of relief payments; power of Sec- retary The Secretary may make such delegations and accept such certifications with respect to the processing of mortgage relief payments provided under this section as he deems appropriate to fa- cilitate the prompt and efficient implementa- tion of the assistance authorized under this sec- tion. (Pub. L. 94–50, title I, § 106, July 2, 1975, 89 Stat. 251.) Editorial Notes REFERENCES IN TEXT Section 2712 of this title, referred to in subsec. (a), was repealed by Pub. L. 111–203, title XIV, § 1496(b)(7), July 21, 2010, 124 Stat. 2209. § 2706. Emergency Homeowners’ Relief Fund To carry out the purposes of this chapter, the Secretary is authorized to establish in the Treasury of the United States an Emergency Homeowners’ Relief Fund (hereinafter in this chapter referred to as the ‘‘fund’’) which shall be available to the Secretary without fiscal year limitation— (1) for making payments in connection with defaulted loans or advances of credit insured under section 2704 of this title; (2) for making emergency mortgage relief payments under section 2705 of this title; (3) to pay such administrative expenses (or portion of such expenses) of carrying out the provisions of this chapter as the Secretary may deem necessary. (Pub. L. 94–50, title I, § 107, July 2, 1975, 89 Stat. 252; Pub. L. 98–479, title II, § 204(m)(1), Oct. 17, 1984, 98 Stat. 2234; Pub. L. 111–203, title XIV, § 1496(b)(4), July 21, 2010, 124 Stat. 2208.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 struck out subsec. (a) designa- tion before ‘‘To carry out’’ and subsec. (b) which read as follows: ‘‘The fund shall be credited with— ‘‘(1) all amounts received by the Secretary as pre- mium charges for insurance or as repayment for Page 1461 TITLE 12—BANKS AND BANKING § 2708 emergency mortgage relief payments under this chapter and all receipts, earnings, collections, or pro- ceeds derived from any claim or other assets acquired by the Secretary under this Act; and ‘‘(2) such amounts as may be appropriated for the purposes of this chapter.’’ 1984—Subsec. (a). Pub. L. 98–479, § 204(m)(1)(A), (B), re- designated subsec. (a)(1) as subsec. (a) and subpars. (A), (B), and (C) as pars. (1), (2), and (3), respectively. Subsec. (b). Pub. L. 98–479, § 204(m)(1)(C), (D), redesig- nated subsec. (a)(2) as subsec. (b) and subpars. (A) and (B) as pars. (1) and (2), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amend- ment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade. EMERGENCY MORTGAGE RELIEF Pub. L. 111–203, title XIV, § 1496(a), July 21, 2010, 124 Stat. 2207, provided that: ‘‘Effective October 1, 2010, and notwithstanding any other provision of law, there is hereby made available to the Secretary of Housing and Urban Development such sums as are necessary to pro- vide $1,000,000,000 in assistance through the Emergency Homeowners’ Relief Fund, which such Secretary shall establish pursuant to section 107 of the Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act is amended by this section, for use for emergency mort- gage assistance in accordance with title I of such Act [12 U.S.C. 2701 et seq.].’’ § 2707. Authority of Secretary (a) Rules and regulations The Secretary is authorized to make such rules and regulations as may be necessary to carry out the provisions of this chapter. (b) Payment of expenses and charges relating to acquisition, handling, improvement, or dis- posal of real and personal property Notwithstanding any other provision of law relating to the acquisition, handling, improve- ment, or disposal of real or other property by the United States, the Secretary shall have power, for the protection of the interest of the fund authorized under this chapter, to pay out of such fund all expenses or charges in connection with the acquisition, handling, improvement, or disposal of any property, real or personal, ac- quired by the Secretary as a result of recoveries under security, subrogation, or other rights. (c) Powers with respect to property rights held by Secretary In the performance of, with respect to, the functions, powers, and duties vested in the Sec- retary by this chapter, the Secretary shall— (1) have the power, notwithstanding any other provision of law, whether before or after default, to provide by contract or otherwise for the extinguishment upon default of any re- demption, equitable, legal, or other right, title in any mortgage, deed, trust, or other instru- ment held by or held on behalf of the Sec- retary under the provisions of this chapter; and (2) have the power to foreclose on any prop- erty or commence any action to protect or en- force any right conferred upon the Secretary by law, contract, or other agreement, and bid for and purchase at any foreclosure or other sale any property in connection with which as- sistance has been provided pursuant to this chapter. In the event of any such acquisition, the Secretary may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, complete, remodel and convert, dispose of, lease, and otherwise deal with, such property. Notwithstanding any other provision of law, the Secretary also shall have power to pursue to final collection by way of com- promise or otherwise all claims acquired by him in connection with any security, subroga- tion, or other rights obtained by him in ad- ministering this chapter. (d) Coverage of existing programs The Secretary shall allow funds to be adminis- tered by a State that has an existing program that is determined by the Secretary to provide substantially similar assistance to homeowners. After such determination is made such State shall not be required to modify such program to comply with the provisions of this chapter. (Pub. L. 94–50, title I, § 108, July 2, 1975, 89 Stat. 252; Pub. L. 111–203, title XIV, § 1496(b)(5), July 21, 2010, 124 Stat. 2208.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 added subsec. (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the date on which final regulations implementing that amend- ment take effect, or on the date that is 18 months after the designated transfer date if such regulations have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade. § 2708. Expiration date No loans or advance of credit shall be insured and no emergency mortgage relief payments made under this chapter after September 30, 2011, except if such loan or advance or such pay- ments are made with respect to a mortgagor re- ceiving the benefit of a loan or advance insured, or emergency mortgage relief payments made, under this chapter on such date. (Pub. L. 94–50, title I, § 109, July 2, 1975, 89 Stat. 253; Pub. L. 94–375, § 13(a), Aug. 3, 1976, 90 Stat. 1075; Pub. L. 111–203, title XIV, § 1496(b)(6), July 21, 2010, 124 Stat. 2209.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 struck out ‘‘Authorization and’’ before ‘‘expiration date’’ in section catchline, struck out subsec. (a), struck out subsec. (b) designation be- fore ‘‘No loans’’, and substituted ‘‘2011’’ for ‘‘1977’’. Prior to amendment, subsec. (a) read as follows: ‘‘There are authorized to be appropriated for purposes of this chapter such sums as may be necessary, except that the funds authorized to be appropriated for section 2705 of