12 U.S.C. § 1712a — Indexing of FHA multifamily housing

Page 572 TITLE 12—BANKS AND BANKING § 1712 § 1712. Investment of funds Moneys in the Fund not needed for the current operations of the Department of Housing and Urban Development related to insurance under section 1709 of this title shall be deposited with the Treasurer of the United States to the credit of the Fund, or invested in bonds or other obli- gations of, or in bonds or other obligations guar- anteed as to principal and interest by, the United States or any agency of the United States: Provided, That such moneys shall to the maximum extent feasible be invested in such bonds or other obligations the proceeds of which will be used to directly support the residential mortgage market. The Secretary may, with the approval of the Secretary of the Treasury, pur- chase in the open market debentures issued under the provisions of section 1710 of this title. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from other investments au- thorized by this section. Debentures so pur- chased shall be canceled and not reissued, and the several group accounts to which such deben- tures have been charged shall be charged with the amounts used in making such purchases. (June 27, 1934, ch. 847, title II, § 206, 48 Stat. 1252; Feb. 3, 1938, ch. 13, § 3, 52 Stat. 16; Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19, § 1(a)(1), (3), (e), May 25, 1967, 81 Stat. 17, 18; Pub. L. 91–609, title I, § 117(a), Dec. 31, 1970, 84 Stat. 1774.) Editorial Notes AMENDMENTS 1970—Pub. L. 91–609 provided for guarantee as to prin- cipal and interest by any agency of the United States and for investment of monies in bonds or other obliga- tions the proceeds of which will be used to directly sup- port the residential mortgage market. 1967—Pub. L. 90–19 substituted ‘‘Department of Hous- ing and Urban Development’’ and ‘‘Secretary’’ for ‘‘Federal Housing Administration’’ and ‘‘Commis- sioner’’, respectively, and inserted ‘‘related to insur- ance under section 1709 of this title’’ before ‘‘shall be deposited’’. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’. 1938—Act Feb. 3, 1938, among other changes, inserted ‘‘or in bonds or other obligations guaranteed as to prin- cipal and interest by’’ in first sentence, and inserted third sentence. § 1712a. Indexing of FHA multifamily housing loan limits (a) Method of indexing The dollar amounts set forth in— (1) section 1713(c)(3)(A) of this title; (2) section 1715e(b)(2)(A) of this title; (3) section 1715k(d)(3)(B)(iii)(I) of this title; (4) section 1715l(d)(3)(ii)(I) of this title; (5) section 1715l(d)(4)(ii)(I) of this title; (6) section 1715v(c)(2)(A) of this title; and (7) section 1715y(e)(3)(A) of this title; (collectively hereinafter referred to as the ‘‘Dol- lar Amounts’’) shall be adjusted annually (com- mencing in 2004) on the effective date of the Fed- eral Reserve Board’s adjustment of the $400 fig- ure in the Home Ownership and Equity Protec- tion Act of 1994 (HOEPA). The adjustment of the Dollar Amounts shall be calculated using the percentage change in the Consumer Price Index for All Urban Consumers (CPI–U) as applied by the Federal Reserve Board for purposes of the above-described HOEPA adjustment. (b) Notification The Federal Reserve Board on a timely basis shall notify the Secretary, or his designee, in writing of the adjustment described in sub- section (a) and of the effective date of such ad- justment in order to permit the Secretary to un- dertake publication in the Federal Register of corresponding adjustments to the Dollar Amounts. The dollar amount of any adjustment shall be rounded to the next lower dollar. (June 27, 1934, ch. 847, title II, § 206A, as added Pub. L. 107–326, § 5(a), Dec. 4, 2002, 116 Stat. 2794.) Editorial Notes REFERENCES IN TEXT The Home Ownership and Equity Protection Act of 1994, referred to in subsec. (a), is subtitle B (§§ 151–158) of title I of Pub. L. 103–325, Sept. 23, 1994, 108 Stat. 2190, which enacted sections 1639 and 1648 of Title 15, Com- merce and Trade, amended sections 1602, 1604, 1610, 1640, 1641, and 1647 of Title 15, and enacted provisions set out as notes under sections 1601 and 1602 of Title 15. For complete classification of this Act to the Code, see Short Title of 1994 Amendment note set out under sec- tion 1601 of Title 15 and Tables. § 1713. Rental housing insurance (a) Definitions As used in this section— (1) The term ‘‘mortgage’’ means a first mort- gage on real estate in fee simple, or on the in- terest of either the lessor or lessee thereof (A) under a lease for not less than ninety-nine years which is renewable or (B) under a lease having a period of not less than fifty years to run from the date the mortgage was executed, upon which there is located or upon which there is to be constructed a building or build- ings designed principally for residential use, or upon which there is located or to be con- structed facilities for manufactured homes, and the term ‘‘first mortgage’’ means such classes of first liens as are commonly given to secure advances (including but not being lim- ited to advances during construction) on, or the unpaid purchase price of, real estate under the laws of the State, in which the real estate is located, together with the credit instrument or instruments, if any, secured thereby, and may be in the form of trust mortgages or mortgage indentures or deeds of trust securing notes, bonds, or other credit instruments. (2) The term ‘‘mortgagee’’ means the origi- nal lender under a mortgage, and its succes- sors and assigns, and includes the holders of credit instruments issued under a trust mort- gage or deed of trust pursuant to which such holders act by and through a trustee therein named. (3) The term ‘‘mortgagor’’ means the origi- nal borrower under a mortgage and its succes- sors and assigns. (4) The term ‘‘maturity date’’ means the date on which the mortgage indebtedness