12 U.S.C. § 2701 — Congressional findings and declaration of

Page 1457 TITLE 12—BANKS AND BANKING § 2701 1 Probably should be ‘‘The Bureau’’. tions, and to grant such reasonable exemptions for classes of transactions, as may be necessary to achieve the purposes of this chapter. (b) Liability for acts done in good faith in con- formity with rule, regulation, or interpreta- tion No provision of this chapter or the laws of any State imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or interpretation thereof by the Bureau or the Attorney General, notwithstanding that after such act or omission has occurred, such rule, regulation, or interpre- tation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (c) Investigations; hearings; failure to obey order; contempt (1) The Secretary 1 may investigate any facts, conditions, practices, or matters that may be deemed necessary or proper to aid in the en- forcement of the provisions of this chapter, in prescribing of rules and regulations thereunder, or in securing information to serve as a basis for recommending further legislation concerning real estate settlement practices. To aid in the investigations, the Bureau is authorized to hold such hearings, administer such oaths, and re- quire by subpena the attendance and testimony of such witnesses and production of such docu- ments as the Bureau deems advisable. (2) Any district court of the United States within the jurisdiction of which an inquiry is carried on may, in the case of contumacy or re- fusal to obey a subpena of the Bureau issued under this section, issue an order requiring com- pliance therewith; and any failure to obey such order of the court may be punished by such court as a contempt thereof. (d) Delay of effectiveness of recent final regula- tion relating to payments to employees (1) In general The amendment to part 3500 of title 24 of the Code of Federal Regulations contained in the final regulation prescribed by the Secretary and published in the Federal Register on June 7, 1996, which will, as of the effective date of such amendment— (A) eliminate the exemption for payments by an employer to employees of such em- ployer for referral activities which is cur- rently codified as section 3500.14(g)(1)(vii) of such title 24; and (B) replace such exemption with a more limited exemption in new clauses (vii), (viii), and (ix) of section 3500.14 of such title 24, shall not take effect before July 31, 1997. (2) Continuation of prior rule The regulation codified as section 3500.14(g)(1)(vii) of title 24 of the Code of Fed- eral Regulations, relating to employer-em- ployee payments, as in effect on May 1, 1996, shall remain in effect until the date the amendment referred to in paragraph (1) takes effect in accordance with such paragraph. (3) Public notice of effective date The Secretary shall provide public notice of the date on which the amendment referred to in paragraph (1) will take effect in accordance with such paragraph not less than 90 days and not more than 180 days before such effective date. (Pub. L. 93–533, § 19, as added Pub. L. 94–205, § 10, Jan. 2, 1976, 89 Stat. 1159; amended Pub. L. 98–181, title I [title IV, § 461(e)], Nov. 30, 1983, 97 Stat. 1232; Pub. L. 104–208, div. A, title II, § 2103(f), Sept. 30, 1996, 110 Stat. 3009–401; Pub. L. 111–203, title X, § 1098(11), July 21, 2010, 124 Stat. 2104.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203, § 1098(11)(A), substituted ‘‘Bu- reau’’ for ‘‘Secretary’’ in section catchline. Subsec. (a). Pub. L. 111–203, § 1098(11)(B), substituted ‘‘Bureau’’ for ‘‘Secretary’’. Subsecs. (b), (c). Pub. L. 111–203, § 1098(11)(C), sub- stituted ‘‘the Bureau’’ for ‘‘the Secretary’’ wherever appearing. 1996—Subsec. (d). Pub. L. 104–208 added subsec. (d). 1983—Subsec. (c). Pub. L. 98–181 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 98–181 effective Jan. 1, 1984, see section 461(f) of Pub. L. 98–181, set out as a note under section 2602 of this title. EFFECTIVE DATE Section effective Jan. 2, 1976, see section 12 of Pub. L. 94–205, set out as an Effective Date of 1976 Amendment note under section 2602 of this title. CHAPTER 28—EMERGENCY MORTGAGE RELIEF Sec. 2701. Congressional findings and declaration of pur- pose. 2702. Mortgages eligible for assistance. 2703. Manner of assistance and repayment. 2704. Insurance for emergency mortgage loans and advances. 2705. Emergency mortgage relief payments. 2706. Emergency Homeowners’ Relief Fund. 2707. Authority of Secretary. 2708. Expiration date. 2709, 2710. Repealed. 2711. Nonapplicability of other laws. 2712. Repealed. § 2701. Congressional findings and declaration of purpose (a) The Congress finds that— (1) the Nation is in a severe recession and that the sharp downturn in economic activity has driven large numbers of workers into un- employment and has reduced the incomes of many others; (2) as a result of these adverse economic con- ditions the capacity of many homeowners to Page 1458 TITLE 12—BANKS AND BANKING § 2702 continue to make mortgage payments has de- teriorated and may further deteriorate in the months ahead, leading to the possibility of widespread mortgage foreclosures and distress sales of homes; and (3) many of these homeowners could retain their homes with temporary financial assist- ance until economic conditions improve. (b) It is the purpose of this chapter to provide a standby authority which will prevent wide- spread mortgage foreclosures and distress sales of homes resulting from the temporary loss of employment and income through a program of emergency loans and advances and emergency mortgage relief payments to homeowners to de- fray mortgage expenses. (Pub. L. 94–50, title I, § 102, July 2, 1975, 89 Stat. 249.) Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 94–50, § 1, July 2, 1975, 89 Stat. 249, provided: ‘‘That this Act [enacting this chapter, amending sec- tions 1723e and 1735b of this title and sections 1452 and 4106 of Title 42, The Public Health and Welfare, enact- ing provisions set out as a note under this section, and amending provisions set out as a note under section 1723e of this title] may be cited as the ‘Emergency Housing Act of 1975’.’’ Pub. L. 94–50, title I, § 101, July 2, 1975, 89 Stat. 249, provided that: ‘‘This title [enacting this chapter] may be cited as the ‘Emergency Homeowners’ Relief Act’.’’ § 2702. Mortgages eligible for assistance No assistance shall be extended with respect to any mortgage under this chapter unless— (1) the holder of the mortgage has indicated to the mortgagor its intention to foreclose; (2) the mortgagor and holder of the mort- gage have certified that circumstances make it probable that there will be a foreclosure and that the mortgagor is in need of emergency mortgage relief as authorized by this chapter; (3) payments under the mortgage have been delinquent for at least three months; (4) the mortgagor has incurred a substantial reduction in income as a result of involuntary unemployment or underemployment due to adverse economic conditions or medical condi- tions and is financially unable to make full mortgage payments; (5) there is a reasonable prospect that the mortgagor will be able to make the adjust- ments necessary for a full resumption of mort- gage payments; and (6) the mortgaged property is the principal residence of the mortgagor. (Pub. L. 94–50, title I, § 103, July 2, 1975, 89 Stat. 249; Pub. L. 111–203, title XIV, § 1496(b)(1), July 21, 2010, 124 Stat. 2207.) Editorial Notes AMENDMENTS 2010—Par. (2). Pub. L. 111–203, § 1496(b)(1)(A), sub- stituted ‘‘have certified’’ for ‘‘have indicated in writing to the Secretary of Housing and Urban Development (hereinafter referred to as the ‘Secretary’) and to any agency or department of the Federal Government re- sponsible for the regulation of the holder’’ and struck out ‘‘(such as the volume of delinquent loans in its portfolio)’’ after ‘‘circumstances’’ and ‘‘, except that such statement by the holder of the mortgage may be waived by the Secretary if in his judgment such waiver would further the purposes of this chapter’’ after ‘‘by this chapter’’. Par. (4). Pub. L. 111–203, § 1496(b)(1)(B), inserted ‘‘or medical conditions’’ after ‘‘adverse economic condi- tions’’. 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. § 2703. Manner of assistance and repayment (a) Form of assistance Assistance under this chapter with respect to a mortgage which meets the requirements of section 2702 of this title may be provided in the form of emergency mortgage relief loans and ad- vances of credit insured pursuant to section 2704 of this title or in the form of emergency mort- gage relief payments made by the Secretary pur- suant to section 2705 of this title. (b) Amount of assistance Assistance under this chapter on behalf of a homeowner may be made available in an amount up to the amount of the principal, interest, taxes, ground rents, hazard insurance, and mort- gage insurance premiums due under the home- owner’s mortgage. The amount of assistance provided to a homeowner under this chapter shall be an amount that the Secretary deter- mines is reasonably necessary to supplement such amount as the homeowner is capable of contributing toward such mortgage payment, except that the aggregate amount of such assist- ance provided for any homeowner shall not ex- ceed $50,000. (c) Monthly payments; extension of time; report of increase in income Monthly payments may be provided under this chapter either with the proceeds of an insured loan or advance of credit or with emergency mortgage relief payments for up to twelve months, and, in accordance with criteria pre- scribed by the Secretary, such monthly pay- ments may be extended once for up to twelve ad- ditional months. A mortgagor receiving the ben- efit of mortgage relief assistance pursuant to this chapter shall be required, in accordance with criteria prescribed by the Secretary, to re- port any increase in income which will permit a reduction or termination of such assistance dur- ing this period. (d) Conditions and terms of repayment; interest rate Emergency loans or advances of credit made and insured under section 2704 of this title, and emergency mortgage relief payments made under section 2705 of this title, shall be repay- able by the homeowner upon such terms and conditions as the Secretary shall prescribe, ex-