12 U.S.C. § 1709a — Determination of loan-to-value ratios

Page 559 TITLE 12—BANKS AND BANKING § 1710 5, 1988, 101 Stat. 1907; Pub. L. 102–54, § 13(d)(1), June 13, 1991, 105 Stat. 274.) Editorial Notes CODIFICATION Section was enacted as part of the Housing and Urban Development Act of 1970, and not as part of the Na- tional Housing Act which comprises this chapter. AMENDMENTS 1991—Par. (1). Pub. L. 102–54 substituted ‘‘Department of Veterans Affairs’’ for ‘‘Veterans’ Administration’’ in two places. 1988—Pub. L. 100–242 inserted parenthetical reference to condominiums and cooperatives in par. (1), sub- stituted ‘‘due, regardless of whether the purchaser is obligated on the loan’’ for ‘‘due’’ in par. (2), and sub- stituted ‘‘$250,000’’ for ‘‘$5,000’’ and ‘‘5’’ for ‘‘three’’ in closing provisions. § 1709a. Determination of loan-to-value ratios The Secretary of Housing and Urban Develop- ment, in establishing maximum loan-to-value ratios for mortgages insured by him under the National Housing Act [12 U.S.C. 1701 et seq.], as amended by sections 101, 102, and 103 of this Act, shall determine that such ratios are in the pub- lic interest after taking into consideration (1) the effect of such ratios on the national econ- omy and on conditions in the building industry, and (2) the availability or unavailability of resi- dential mortgage credit assisted under the Serv- icemen’s Readjustment Act of 1944, as amended. (Pub. L. 85–104, title I, § 104, July 12, 1957, 71 Stat. 296; Pub. L. 90–19, § 14(a), May 25, 1967, 81 Stat. 24.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in text, is 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 section 1701 of this title and Tables. Amendments by sections 101, 102, and 103 of this act, referred to in text, refers to amendment of sections 1709(b), (i), 1715k(d)(3), and 1715m(b) of this title by Pub. L. 85–104. Section 1709(i) of this title was repealed by Pub. L. 110–289, div. B, title I, § 2120(a)(1), July 30, 2008, 122 Stat. 2835. Section 1715m of this title was repealed by Pub. L. 110–289, div. B, title I, § 2120(a)(5), July 30, 2008, 122 Stat. 2835. The Servicemen’s Readjustment Act of 1944, as amended, referred to in text, is act June 22, 1944, ch. 268, 58 Stat. 284, which was classified generally to chap- ter 11C (§§ 693 to 697g) of former Title 38, Pensions, Bo- nuses, and Veterans’ Relief, and which was repealed by section 14(87) of Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1273, the first section of which enacted Title 38, Vet- erans’ Benefits. For distribution of sections 693 to 697g of former Title 38 to Title 38, Veterans’ Benefits, see Table preceding section 101 of Title 38, Veterans’ Bene- fits. CODIFICATION Section was enacted as part of the Housing Act of 1957, and not as part of the National Housing Act which comprises this chapter. AMENDMENTS 1967—Pub. L. 90–19 substituted ‘‘Secretary of Housing and Urban Development’’ for ‘‘Federal Housing Com- missioner’’. § 1709b. Repealed. Pub. L. 85–364, § 6, Apr. 1, 1958, 72 Stat. 77 Section, Pub. L. 85–104, title VI, § 605, July 12, 1957, 71 Stat. 305, authorized Federal Housing Commissioner and Administrator of Veterans’ Affairs to fix reason- able limits on charges, fees, and discounts imposed upon builders, sellers, or purchasers. § 1710. Payment of insurance (a) In general (1) Authorized claims procedures The Secretary may, in accordance with this subsection and terms and conditions pre- scribed by the Secretary, pay insurance bene- fits to a mortgagee for any mortgage insured under section 1709 of this title through any of the following methods: (A) Assignment of mortgage The Secretary may pay insurance benefits whenever a mortgage has been in a mone- tary default for not less than 3 full monthly installments or whenever the mortgagee is entitled to foreclosure for a nonmonetary default. Insurance benefits shall be paid pur- suant to this subparagraph only upon the as- signment, transfer, and delivery to the Sec- retary of— (i) all rights and interests arising under the mortgage; (ii) all claims of the mortgagee against the mortgagor or others arising out of the mortgage transaction; (iii) title evidence satisfactory to the Secretary; and (iv) such records relating to the mort- gage transaction as the Secretary may re- quire. (B) Conveyance of title to property The Secretary may pay insurance benefits if the mortgagee has acquired title to the mortgaged property through foreclosure or has otherwise acquired such property from the mortgagor after a default upon— (i) the prompt conveyance to the Sec- retary of title to the property which meets the standards of the Secretary in force at the time the mortgage was insured and which is evidenced in the manner provided by such standards; and (ii) the assignment to the Secretary of all claims of the mortgagee against the mortgagor or others, arising out of mort- gage transaction or foreclosure pro- ceedings, except such claims as may have been released with the consent of the Sec- retary. The Secretary may permit the mortgagee to tender to the Secretary a satisfactory con- veyance of title and transfer of possession directly from the mortgagor or other appro- priate grantor, and may pay to the mort- gagee the insurance benefits to which it would otherwise be entitled if such convey- ance had been made to the mortgagee and from the mortgagee to the Secretary. (C) Claim without conveyance of title The Secretary may pay insurance benefits upon sale of the mortgaged property at fore-