12 U.S.C. § 1715t — Voluntary termination of insurance

Page 637 TITLE 12—BANKS AND BANKING § 1715u 1 So in original. 1 So in original. Probably should be followed by a comma. 2 So in original. Probably should be ‘‘section 1710(a)(1)(A) of this title or subsection (c)),’’. ‘‘(C) establishing time deadlines or target dead- lines for required approvals; ‘‘(D) modifying division of approval authority be- tween field and national offices; ‘‘(E) improving outreach to project sponsors re- garding information that is required to be sub- mitted for such approvals; ‘‘(F) requesting additional funding for increasing staff, if necessary; and ‘‘(G) any other actions which would expedite ap- provals. Any such changes shall be made in a manner that provides for full compliance with any existing re- quirements under law or regulation that are designed to protect families receiving public and assisted housing assistance, including income targeting, rent, and fair housing provisions, and shall also comply with requirements regarding environmental review and protection and wages paid to laborers. ‘‘(b) CONSULTATION.—The Secretary shall consult with the Commissioner of the Internal Revenue Service and take such actions as are appropriate in conjunction with such consultation to simplify the coordination of rules, regulations, forms, and approval requirements for multifamily housing projects projects [sic] for which assistance is provided by such Department in conjunction with any low-income housing tax credits under section 42 of the Internal Revenue Code of 1986 [26 U.S.C. 42] or tax-exempt housing bonds. ‘‘(c) RECOMMENDATIONS.—In implementing the changes required under this section, the Secretary shall solicit recommendations regarding such changes from project owners and sponsors, investors and stake- holders in housing tax credits, State and local housing finance agencies, public housing agencies, tenant advo- cates, and other stakeholders in such projects. ‘‘(d) REPORT.—Not later than the expiration of the 9- month period beginning on the date of the enactment of this Act [July 30, 2008], the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Bank- ing, Housing, and Urban Affairs of the Senate that— ‘‘(1) identifies the actions taken by the Secretary to comply with this section; ‘‘(2) includes information regarding any resulting improvements in the expedited approval for multi- family housing projects; ‘‘(3) identifies recommendations made pursuant to subsection (c); ‘‘(4) identifies actions taken by the Secretary to implement the provisions in the amendments made by sections 2834 and 2835 of this Act [enacting this section and sections 1437z–8 and 11403f–1 of Title 42, The Public Health and Welfare, and amending sec- tions 1701q and 1715r of this title and sections 1437f, 3545, 11403g, 11403h, 11404, 11405, 11405b, 11406, 11407, and 11407b of Title 42]; and ‘‘(5) makes recommendations for any legislative changes that are needed to facilitate prompt approval of assistance for such projects.’’ § 1715t. Voluntary termination of insurance Notwithstanding any other provision of this chapter and with respect to any loan or mort- gage heretofore or hereafter insured under this chapter, except under section 1703 of this title and except as specified under section 1715z–15 of this title and subtitle B of the Emergency Low Income Housing Preservation Act of 1987,,1 the Secretary is authorized to terminate any insur- ance contract upon request by the borrower or mortgagor and the financial institution or mort- gagee and upon payment of such termination charge as the Secretary determines to be equi- table, taking into consideration the necessity of protecting the various insurance Funds. Upon such termination, borrowers and mortgagors and financial institutions and mortgagees shall be entitled to the rights, if any, to which they would be entitled under this chapter if the in- surance contract were terminated by payment in full of the insured loan or mortgage. (June 27, 1934, ch. 847, title II, § 229, as added Pub. L. 86–372, title I, § 113, Sept. 23, 1959, 73 Stat. 662; amended Pub. L. 87–70, title VI, § 612(l), June 30, 1961, 75 Stat. 183; Pub. L. 89–117, title XI, § 1108(k), Aug. 10, 1965, 79 Stat. 505; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 101–235, title II, § 202(d)(2), Dec. 15, 1989, 103 Stat. 2037.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see Tables. The Emergency Low Income Housing Preservation Act of 1987, referred to in text, is title II of Pub. L. 100–242, Feb. 5, 1988, 101 Stat. 1877, which, as amended by Pub. L. 101–625, is known as the Low-Income Hous- ing Preservation and Resident Homeownership Act of 1990. Subtitle B of title II, which was formerly set out as a note under section 1715l of this title and which amended section 1715z–6 of this title, was amended gen- erally by Pub. L. 101–625 and is classified generally to subchapter I (§ 4101 et seq.) of chapter 42 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of this title and Tables. AMENDMENTS 1989—Pub. L. 101–235 inserted ‘‘and except as specified under section 1715z–15 of this title and subtitle B of the Emergency Low Income Housing Preservation Act of 1987,’’ after ‘‘section 1703 of this title’’. 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’ wherever appearing. 1965—Pub. L. 89–117 struck out ‘‘and Accounts’’ after ‘‘various Insurance Funds’’. 1961—Pub. L. 87–70 amended section generally, au- thorizing voluntary termination of insurance contracts with respect to loans insured under this chapter. § 1715u. Authority to assist mortgagors in default (a) Loss mitigation Upon default or imminent default, as defined by the Secretary 1 of any mortgage insured under this subchapter, mortgagees shall engage in loss mitigation actions for the purpose of pro- viding an alternative to foreclosure (including but not limited to actions such as special for- bearance, loan modification, preforeclosure sale, support for borrower housing counseling, subor- dinate lien resolution, borrower incentives, and deeds in lieu of foreclosure, as required, but not including assignment of mortgages to the Sec- retary under section 1710(a)(1)(A) of this title) or subsection (c),2 as provided in regulations by the Secretary. (b) Payment of partial claim (1) Establishment of program The Secretary may establish a program for payment of a partial claim to a mortgagee