12 U.S.C. § 1736 — Definitions

Page 807 TITLE 12—BANKS AND BANKING § 1736 a military base or other Federal installation was ter- minated subsequent to Nov. 1, 1964, as the result of closing of such base or installation, formerly defined as an individual who was unemployed, although willing to work, as the result of the closing of a Federal installa- tion, and providing in subpar. (B) for dwelling situated at or near the base or installation and substituting ‘‘payments due under such mortgage’’ for ‘‘payments of principal and/or interest under such mortgage’’. Subsec. (b)(1). Pub. L. 89–754 substituted ‘‘payments due under such mortgage’’ for ‘‘payments of principal and/or interest under such mortgage’’. Subsec. (b)(2). Pub. L. 89–754 struck out subpar. (A) providing for determination that mortgagor is not in default with respect to any condition or covenant of the mortgage other than requiring the payment of in- stallments of principal and/or interest under the mort- gage and incorporated without subpar. designation pro- vision for determination that such action is necessary to avoid foreclosure, formerly providing in subpar. (B) that such action was the only available means of avoid- ing foreclosure of such mortgage. Subsec. (b)(3). Pub. L. 89–754 substituted in introduc- tory text ‘‘the Federal mortgage agency, the mort- gagor, and the mortgagee shall enter into a binding agreement’’ for ‘‘the Federal mortgage agency shall re- quire such mortgagor to enter into a binding agree- ment’’, designated existing provisions as subpar. (A), provided for payment of interest at rate not to exceed the rate provided in the mortgage, and added subpar. (B). Subsec. (b)(4). Pub. L. 89–754 increased the period from one to two years in subpar. (A), substituted sub- par. (B) provision for expiration date as thirty days after date on which mortgagor gives notice in writing to Federal mortgage agency of ability to resume obli- gation to make payments due under his mortgage for former provision as the date thirty days after date on which mortgagor to whom certificate was issued ceased to be a distressed mortgagor, now incorporated in sub- par. (C), redesignated former subpar. (B) as (C), pro- viding for a determination by the Federal mortgage agency, and struck out former subpar. (C) provision for date on which mortgagor becomes in default with re- spect to any condition or covenant in his mortgage other than that requiring the payment by him of in- stallments of principal and/or interest under the mort- gage. Subsec. (c)(1). Pub. L. 89–754 substituted ‘‘payments due under the mortgage’’ for ‘‘payments of principal, and, if so specified in the certificate, of interest, under the mortgage’’. Subsec. (c)(2). Pub. L. 89–754 substituted ‘‘may in- clude’’ for ‘‘shall include’’ and ‘‘unpaid payments under such mortgage’’ for ‘‘unpaid principal and interest charges which had accrued and subsequent to the date on which such mortgagor became a distressed mort- gagor as defined in subsection (a) of this section’’, and authorized payments of reasonable allowance for fore- closure costs actually paid by the mortgagee if a fore- closure action was dismissed as result of issuance of moratorium certificate and taxes and insurance pre- miums on mortgaged property as deemed necessary when not provided for through payments to a tax and insurance account held by the interested mortgagee. Subsec. (c)(3). Pub. L. 89–754 substituted ‘‘payments due under the mortgage’’ for ‘‘payments of principal, and, if so specified in the certificate, of interest, under the mortgage’’. Subsec. (d). Pub. L. 89–754 reenacted subsec. (d) with- out change. Subsec. (e). Pub. L. 89–754 substituted ‘‘Secretary of Housing and Urban Development’’ for ‘‘Federal Housing Commissioner’’ in two places and made fund available for payment of administrative expenses incurred in connection with assistance to distressed mortgagors and unavailable for payment of administrative ex- penses of the Administrator of Veterans’ Affairs. § 1735h. Repealed. Pub. L. 89–754, title X, § 1013(j), Nov. 3, 1966, 80 Stat. 1292 Section, Pub. L. 89–117, title I, § 108(a)–(d), (f), Aug. 10, 1965, 79 Stat. 460, 461, provided for acquisition of prop- erty at or near military bases which have been ordered to be closed. See section 3374 of Title 42, The Public Health and Welfare. SUBCHAPTER VI—WAR HOUSING INSURANCE Editorial Notes AMENDMENTS 1942—Act May 26, 1942, ch. 319, § 14(a), 56 Stat. 305, amended subchapter heading, substituting ‘‘WAR’’ for ‘‘DEFENSE’’. § 1736. Definitions As used in this subchapter— (a) The term ‘‘mortgage’’ means a first mort- gage on real estate, in fee simple, or on a lease- hold (1) under a lease for not less than ninety- nine years which is renewable; or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed; and the term ‘‘first mortgage’’ means such classes of first liens as are commonly given to secure advances 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 instruments, if any, secured thereby. (b) The term ‘‘mortgagee’’ includes the origi- nal lender under a mortgage, and his successors and assigns approved by the Secretary; and the term ‘‘mortgagor’’ includes the original bor- rower under a mortgage and his successors and assigns. (c) The term ‘‘maturity date’’ means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage. (d) The term ‘‘State’’ includes the several States, and Puerto Rico, the District of Colum- bia, Guam, and the Virgin Islands. (June 27, 1934, ch. 847, title VI, § 601, as added Mar. 28, 1941, ch. 31, § 1, 55 Stat. 55; amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; July 14, 1952, ch. 723, § 10(a)(2), 66 Stat. 603; Pub. L. 86–70, § 10(a), June 25, 1959, 73 Stat. 142; Pub. L. 86–624, § 6, July 12, 1960, 74 Stat. 411; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.) Editorial Notes AMENDMENTS 1967—Subsec. (b). Pub. L. 90–19 substituted ‘‘Sec- retary’’ for ‘‘Commissioner’’. 1960—Subsec. (d). Pub. L. 88–624 struck out ‘‘Hawaii,’’ before ‘‘Puerto Rico’’. 1959—Subsec. (d). Pub. L. 86–70 struck out ‘‘Alaska,’’ before ‘‘Hawaii’’. 1952—Subsec. (d). Act July 14, 1952, inserted ‘‘Guam,’’ after ‘‘District of Columbia,’’. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing. Statutory Notes and Related Subsidiaries SEPARABILITY Act Mar. 28, 1941, ch. 31, § 9, 55 Stat. 62, provided that: ‘‘If any provision of this Act [enacting sections 1736 to 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