12 U.S.C. § 1737 — Untitled legal text

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 Repealed.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 $6,150,000,000 except that with the approval of the President such ag- gregate amount may be increased to not to ex- ceed $6,650,000,000: Provided further, That no mortgage shall be insured under this section after April 30, 1948, except (A) pursuant to a commitment to insure issued on or before April 30, 1948, or (B) a mortgage given to refinance an existing mortgage insured under this section and which does not exceed the original principal amount and unexpired term of such existing mortgage, and no mortgage shall be insured under section 1743 of this title after March 1, 1950, except (i) pursuant to a commitment to in- sure issued on or before March 1, 1950, or (ii) a mortgage given to refinance an existing mort- gage insured under section 1743 of this title and which does not exceed the original principal amount and unexpired term of such existing mortgage: Provided further, That no mortgage shall be insured under section 1743 of this title unless the mortgagor certifies under oath that in selecting tenants for the property covered by the mortgage he will not discriminate against any family by reason of the fact that there are children in the family, and that he will not sell the property while the insurance is in effect un- less the purchaser so certifies, such certifi- cations to be filed with the Secretary; and viola- tion of any such certification shall be a mis- demeanor punishable by a fine of not to exceed $500: And provided further, That the Secretary shall, in his discretion, have power to require the availability for rental purposes of properties covered by mortgages insured under this sub- chapter, in such instances and for such periods of time as he may prescribe. Notwithstanding the first proviso of this sub- section, mortgages may be insured under sec- tions 1744 and 1746 of this title if the aggregate amounts of principal obligations of mortgages insured under said sections plus the aggregate amount of principal obligations of mortgages in- sured under section 1745 of this title do not ex- ceed the limitation contained in said section 1745 upon the aggregate amount of principal ob- ligations of mortgages insured pursuant to said section. Notwithstanding the second proviso of this subsection, mortgages otherwise eligible for in- surance under section 1743 of this title may be hereafter insured thereunder if the application for such insurance was received by the Depart- ment of Housing and Urban Development on or before March 1, 1950, and for such purpose the aggregate amount of principal obligations au- thorized to be insured under section 1743 of this title is increased by not to exceed $500,000,000. (b) Eligibility requirements To be eligible for insurance under this section a mortgage shall— (1) have been made to, and be held by, a mortgagee approved by the Secretary as re- sponsible and able to service the mortgage properly; (2) involve a principal obligation (including such initial service charges, appraisal, inspec- tion, and other fees as the Secretary shall ap- prove) in an amount not to exceed 90 per cen- tum of the Secretary’s estimate of the value (as of the date the mortgage is accepted for in- surance), except that as to applications re- ceived by the Secretary on or before March 31, 1948, the mortgage may involve a principal ob- ligation in an amount not to exceed 90 per cen- tum of the Secretary’s estimate of the nec- essary current cost (including the land and such initial service charges and such ap- praisal, inspection, and other fees as the Sec- retary shall approve); of a property, urban, suburban, or rural, upon which there is located a dwelling designed principally for residential use for not more than four families in the ag- gregate, which is approved for mortgage insur- ance prior to the beginning of construction. The principal obligation of such mortgage shall in no event, however, exceed— (A) $5,400 if such dwelling is designed for a single-family residence, or (B) $7,500 if such dwelling is designed for a two-family residence, or (C) $9,500 if such dwelling is designed for a three-family residence, or (D) $12,000 if such dwelling is designed for a four-family residence: Provided, That the Secretary may, if he finds that at any time or in any particular geo- graphical area it is not feasible, within such limitations of maximum mortgage amounts, to construct dwellings without sacrifice of sound standards of construction, design, or liv- ability, prescribe by regulation or otherwise higher maximum mortgage amounts not to ex- ceed— (A) $8,100 if such dwelling is designed for a single-family residence, or