12 U.S.C. § 1710

Editorial Notes

References in Text

act Aug. 11, 1955, ch. 78369 Stat. 635section 1701 of this titleThe Housing Amendments of 1955, referred to in subsec. (f)(2), is , . For complete classification of this Act to the Code, see Short Title of 1955 Amendments note set out under and Tables.

act June 27, 1934, ch. 84748 Stat. 1246This chapter, referred to in subsecs. (g) and (h), was in the original “this Act”, meaning , , which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see Tables.

Codification

section 6101 of title 41Pub. L. 111–350, § 6(c)Jan. 4, 2011124 Stat. 3854In subsec. (g), “” substituted for “section 3709 of the Revised Statutes” on authority of , , , which Act enacted Title 41, Public Contracts.

Amendments

Pub. L. 111–22, § 203(c)(3)section 1715u(c) of this title2009—Subsec. (a)(2). , substituted “subsection (a)(1)(A) or ” for “paragraph (1)(A)”.

Pub. L. 111–22, § 203(c)(1), (2), inserted “or faces imminent default, as defined by the Secretary” after “default” and “support for borrower housing counseling, partial claims, borrower incentives, preforeclosure sale,” after “loan modification,”.

Pub. L. 108–447, § 221(1)(A)2004—Subsec. (h)(2). , substituted “following categories of assets of the Secretary, unless the Secretary determines at any time that the asset property is economically or otherwise infeasible to rehabilitate or that the best use of the asset property is as open space (including park land)” for “following assets of the Secretary” in introductory provisions.

Pub. L. 108–447, § 221(1)(B)Subsec. (h)(2)(B)(ii). , inserted “except for mortgages insured under or made pursuant to sections 1715z, 1715z–12, or 1715z–20 of this title” after “chapter”.

Pub. L. 108–447, § 221(1)(C)Subsec. (h)(2)(C). , struck out heading and text of subpar. (C). Text read as follows: “Any contingent future interest of the Secretary in an asset described in subparagraph (A) or (B).”

Pub. L. 108–447, § 221(2)Subsec. (h)(3). , inserted “, States, and Indian tribes” after “government” in second sentence.

Pub. L. 108–447, § 221(3)(A)Subsec. (h)(4)(A)(i). , inserted “, State, or Indian tribe” after “government”.

Pub. L. 108–447, § 221(3)(B)Subsec. (h)(4)(B)(ii). , amended cl. (ii) generally. Prior to amendment, cl. (ii) read as follows: “purchases all interests of the Secretary in all assets of the Secretary that, at any time during the period which shall be set forth in the sale agreement required under paragraph (7)—

“(I) are or become eligible assets; and

“(II) are located in the asset control area of the purchaser; and”.

Pub. L. 108–447, § 221(3)(C)Subsec. (h)(4)(C). , substituted “purchase of the category or categories of eligible assets set forth in the sale agreement under” for “purchase of eligible assets under”.

Pub. L. 108–447, § 221(4)(A)Subsec. (h)(6)(C). , amended heading and text of subpar. (C) generally. Prior to amendment, subpar. (C) set out discount classes, including standard, deep, and minimal discounts.

Pub. L. 108–447, § 221(4)(B)Subsec. (h)(6)(D). , struck out heading and text of subpar. (D). Text read as follows: “The Secretary shall, in the sole discretion of the Secretary, establish a method for determining which discount under clause (i) or (ii) subparagraph (C) shall be provided for an eligible asset that is described in such clause (i) and sold to a preferred purchaser. The method may result in the assignment of discounts on any basis consistent with subparagraph (C) that the Secretary considers appropriate to carry out the purposes of this subsection.”

Pub. L. 108–447, § 221(5)Subsec. (h)(7)(A). , substituted “category or categories of eligible assets to be purchased and, based on the purchaser’s capacity to manage and dispose of assets, the maximum number of assets owned by the Secretary at the time the sale agreement is executed that shall be sold to the purchaser” for “eligible assets to be purchased and the interests sold”.

Pub. L. 108–447, § 221(6)(A)Subsec. (h)(8)(F). , inserted “, and any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive officer to act on behalf of the jurisdiction with regard to the provisions of this subsection” after “State”.

Pub. L. 108–447, § 221(6)(B)Subsec. (h)(8)(G), (H). , added subpars. (G) and (H).

Pub. L. 105–276, § 601(a)1998—Subsec. (a). , inserted heading and amended text generally, substituting present provisions for provisions which authorized mortgagee of foreclosed property to receive insurance benefit upon conveyance to Secretary of title and assignment of claims, or upon foreclosure sale or approved sale after default where at least fair market value was received, set maintenance of property as condition of receipt of benefit, provided that obligation to pay premium would cease upon conveyance and assignment and debentures would issue having par value equal to value of mortgage, and set forth provisions detailing amounts to be included in debentures or cash payment and provisions authorizing extension or modification of mortgage where default was due to circumstances beyond control of mortgagor.

Pub. L. 105–276, § 601(d)Subsec. (g). , inserted at end “The Secretary may sell real and personal property acquired by the Secretary pursuant to the provisions of this chapter on such terms and conditions as the Secretary may prescribe.”

Pub. L. 105–276, § 602Subsecs. (h), (i). , added subsec. (h) and redesignated former subsec. (h) as (i).

Pub. L. 105–276, § 601(c)September 23, 1959section 1715t of this titleSubsec. (k). , struck out subsec. (k) which read as follows: “Notwithstanding any other provision of this section or of section 1739 or 1750c of this title and with respect to any debentures issued in exchange for properties conveyed to and accepted by the Secretary after in accordance with such sections, the Secretary may (1) include in debentures reasonable payments made by the mortgagee with the approval of the Secretary for the purpose of protecting, operating, or preserving the property, and taxes imposed upon any deed or any other instrument by which the property was acquired by the mortgagee and transferred or conveyed to the Secretary; (2) include in debentures as a portion of foreclosure costs (to the extent that foreclosure costs may be included in such debentures by any other provision of this chapter) payments made by the mortgagee for the cost of acquiring the property and conveying and evidencing title to the property to the Secretary; and (3) terminate the mortgagee’s obligation to pay mortgage insurance premiums upon receipt of an application for debentures filed by the mortgagee, or in the event the contract of insurance is terminated pursuant to .”

Pub. L. 104–1341996—Subsec. (a). , in penultimate proviso of last sentence, substituted “special forebearance” for “special foreclosure”.

Pub. L. 104–99And provided furtherAnd provided further inserted “: , That the Secretary may pay insurance benefits to the mortgagee to recompense the mortgagee for its actions to provide an alternative to the foreclosure of a mortgage that is in default, which actions may include special foreclosure, loan modification, and deeds in lieu of foreclosure, all upon terms and conditions as the mortgagee shall determine in the mortgagee’s sole discretion, within guidelines provided by the Secretary, but which may not include assignment of a mortgage to the Secretary: , That for purposes of the preceding proviso, no action authorized by the Secretary and no action taken, nor any failure to act, by the Secretary or the mortgagee shall be subject to judicial review.” before period at end of last sentence.

Pub. L. 102–550, § 516(a)(1)1992—Subsec. (a). , in fifth sentence, substituted “issue to the mortgagee debentures having a par value” for “, subject to the cash adjustment hereinafter provided, issue to the mortgagee debentures having a total face value”.

Pub. L. 102–550, § 516(a)(2)Subsec. (c). , added subsec. (c) and struck out former subsec. (c) which read as follows: “Debentures issued under this section shall be in such form and denominations in multiples of $50, shall be subject to such terms and conditions, and shall include such provisions for redemption, if any, as may be prescribed by the Secretary with the approval of the Secretary of the Treasury, and may be in coupon or registered form. Any difference between the value of the mortgage determined as herein provided and the aggregate face value of the debentures issued, not to exceed $350, shall be adjusted by the payment of cash by the Secretary to the mortgagee from the Mutual Mortgage Insurance Fund.”

Pub. L. 102–550, § 516(a)(3)Subsec. (d). , (4), in first sentence, substituted “issued in the name of” for “executed in the name of” and “and shall be negotiable, and, if in book entry form, transferable, in the manner described by the Secretary in regulations” for “, shall be signed by the Secretary by either his written or engraved signature, and shall be negotiable” and in fifth sentence, substituted “and, in the case of debentures issued in certificated registered form, such guaranty” for “and such guaranty”.

Pub. L. 101–235, § 136(a)1989—Subsec. (a). , inserted after third sentence “As a condition of the receipt of such benefits, the mortgagee shall maintain or assure the maintenance of the mortgaged property (in such manner as the Secretary shall by regulation provide) during the period beginning on the taking of the possession or other acquisition of the mortgaged property by the mortgagee and ending on conveyance to the Secretary or other disposition of the mortgaged property in accordance with this section, and funds expended by the mortgagee in meeting such obligation shall be included, to the extent provided in this subsection or in subsection (k) of this section, in debentures or other insurance payment pursuant to this section.”

Pub. L. 101–235, § 136(b)Subsec. (g). , inserted after first sentence “The Secretary shall, by regulation, carry out a program of sales of such properties and shall develop and implement appropriate credit terms and standards to be used in carrying out the program.”

Pub. L. 100–628, § 1064(a)(1)1988—Subsec. (a). , (2), in second sentence, substituted “(1)(A) upon sale” for “(1) upon sale”, inserted cl. (B), and substituted “; and (2)” for “, and (2)”.

Pub. L. 100–628, § 1064(b)(1)November 30, 1983November 7, 1988, in third sentence, substituted “ (on or after , with respect to the payment of benefits under clause (1)(B) of the preceding sentence),” for “the effective date of this sentence”.

Pub. L. 100–628, § 1064(b)(2)(A)Provided”., in fifth sentence, struck out “foreclosure” before “sale of the property:

Pub. L. 100–628, § 1064(b)(2)(B)Subsec. (j). , inserted “clause (1)(A) of” before “the second sentence”.

lPub. L. 100–242lSubsec. (). added subsec. ().

Pub. L. 98–181, § 426(a)Nov. 30, 19831983—Subsec. (a). , inserted provision authorizing the Secretary to make the benefit of the insurance available to the mortgagee upon sale of the insured property at foreclosure and assignment of all claims to the Secretary and provision relating to payment of benefits pursuant to a commitment to insure issued on or after the effective date of this sentence [], and substituted “any amount received as rent or other income from the property, less reasonable expenses incurred in handling the property, after either of such dates, and, in the case of insurance benefits paid in accordance with the second sentence of this section, any amount received upon the foreclosure sale of the property” for “and any amount received as rent or other income from the property, less reasonable expenses incurred in handling the property, after either of such dates”.

Pub. L. 98–181, § 426(b)section 1709 of this titleSubsec. (j). , inserted “(other than a mortgagee receiving insurance benefits under the second sentence of subsection (a))” after “”.

Pub. L. 90–19, § 1(a)(2)1967—, substituted “Secretary of Housing and Urban Development” for “Federal Housing Commissioner” in subsec. (g).

Pub. L. 90–19, § 1(a)(3), substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a) to (d), (e)(1), (f)(1), (f)(1)(i), (ii), (f)(2), (3), (g), (h), (j), and (k).

Pub. L. 90–19, § 1(a)(4)Subsec. (f)(3). , substituted “Secretary’s” for “Commissioner’s” wherever appearing.

Pub. L. 90–19, § 1(d)Subsec. (g). , substituted “an officer” for “the Commissioner or by any Assistant Commissioner”.

Pub. L. 89–117, § 1108(d)(1)section 1715a of this titlesection 1709 of this title1965—Subsec. (a). , struck out reference to after reference to in first sentence.

Pub. L. 89–117, § 1108(d)(2)section 1709 of this titlesection 1715a of this titleSubsec. (c). , substituted “Mutual Mortgage Insurance Fund” for “Fund as to mortgages insured under and from the Housing Fund as to mortgages insured under ”.

Pub. L. 89–117, § 1108(d)(3)section 1715a of this titleSubsec. (d). –(6), removed all references to debentures issued with respect to mortgages insured under and to the Housing Insurance Fund and substituted Mutual Mortgage Insurance Fund for Fund wherever appearing.

Pub. L. 89–117, § 1108(d)(7)section 1713 of this titleSubsec. (f). , struck out provision of subpar. (1)(i) calling for retention of excess by Commissioner and credit to the Housing Insurance Fund in the case of mortgages insured under .

Pub. L. 88–560And provided furtherAnd provided furtherSeptember 2, 1964And provided furtherSeptember 2, 1964And provided furtherAnd provided further1964—Subsec. (a). , §§ 104(a), 105(a)(1)–(3), (6)(B), amended provisions as follows; section 104(a), in proviso reading “, That with respect to any mortgage covering a one-, two-, three-, or four-family residence”, struck out “and it is probable that the mortgage will be restored to good standing within a reasonable period of time” after “control of the mortgagor”, substituted “upon such terms and conditions” for “under such regulations and conditions”, incorporated authority of Commissioner to “extend the time for curing default and enter into an agreement with the mortgage providing that if the mortgage is subsequently foreclosed, any interest accruing after the date of the agreement which is not paid by the mortgagor may be included in the debentures” in cl. (1), and provided for remainder of cl. (1), cl. (2) and consideration of the principal amount of the mortgage, as modified, as the “original principal obligation of the mortgage” for purpose of computing total face value of debentures to be issued or cash payment to be made by Commissioner to a mortgagee; section 105(a)(1) substituted in third sentence “charges for the administration, operation, maintenance and repair of community-owned property or the maintenance and repair of the mortgaged property, the obligation for which arises out of a covenant filed for record and approved by the Commissioner prior to the insurance of the mortgage, insurance on the mortgaged property, and any mortgage insurance premiums” for “insurance on the mortgaged property, and any mortgage insurance premiums paid after either of such dates”; section 105(a)(2) inserted provisos reading “, That with respect to a mortgage accepted for insurance pursuant to a commitment issued on or after , the Commissioner may include in debentures or in the cash payment on amount not to exceed the foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner” and “, That with respect to a mortgage accepted for insurance pursuant to a commitment issued prior to , the Commissioner may, with the consent of the mortgagee (in lieu of issuing a certificate of claim as provided in subsection (e)), included in debentures or in the cash payment, in addition to amounts otherwise allowed for such costs, an amount not to exceed one-third of the total foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner, but in no event may the total allowance for such costs exceed the amount actually paid by the mortgagee:”; section 105(a)(3) struck out from proviso reading “, That with respect to mortgages to which the provisions of sections 532 and 536 of Appendix To Title 50 apply” the words “and the payment of insurance premiums” after “on account of interest on debentures” and inserted after such proviso “, That where the claim is paid in cash there shall be included in the cash payment an amount equivalent to the compensation for loss of debenture interest that would be included in computing debentures if such claim were being paid in debentures”; and section 105(a)(6)(B) substituted “and (subject to subsection (e)(2) of this section) a certificate of claim” for “and a certificate of claim” in second sentence.

Pub. L. 88–560, § 105(a)(4)Subsec. (c). , increased limitation on the difference between the value of the mortgage and the aggregate face value of the debentures issued from $50 to $350.

Pub. L. 88–560, § 105(a)(5)ProvidedSeptember 2, 1964lSubsec. (d). , substituted “: , That debentures issued pursuant to claims for insurance filed on or after shall be dated as of the date of default or as of such later date as the Commissioner, in his discretion, may establish by regulation. The debentures” for “, except that debentures issued pursuant to the provisions of section 1715k(f), 1715(g), and 1715x of this title may be dated as of the date the mortgage is assigned (or the property is conveyed) to the Commissioner, and” in second sentence.

Pub. L. 88–560, § 105(a)(6)(A)Subsec. (e). , designated existing provisions as par. (1), substituted “Subject to paragraph (2), the certificate” for “The certificate”, and added par. (2).

Pub. L. 88–560, § 105(a)(7)Subsec. (f). –(11), designated introductory par. as par. (1) and substituted “If, after deducting (in such manner and amount as the Commissioner shall determine to be equitable and in accordance with sound accounting practice) the expenses incurred by the Commissioner, the net amount realized from any property conveyed to the Commissioner under this section and the claims assigned therewith exceed the face value” for “If the net amount realized from any property conveyed to the Commissioner under this section and the claims assigned therewith, after deducting all expenses incurred by the Commissioner in handling, dealing with, and disposing of such property and in collecting such claims, exceeds the face value”; redesignated former par. (1) as (i) and inserted proviso; redesignated former par. (2) as (ii); designated concluding par. as par. (2) and inserted proviso; and added par. (3), respectively.

Pub. L. 87–70, § 612(b)l1961—Subsec. (d). , permitted debentures issued pursuant to provisions of section 1715k(f), 1715(g), and 1715x of this title to be dated as of the date the mortgage is assigned (or the property is conveyed) to the Commissioner.

Pub. L. 87–70, § 612(c)Subsec. (g). , included instruments relating to personal property, and inserted proviso requiring that a conveyance or transfer of title to real or personal property or an interest therein to the Federal Housing Commissioner, his successors and assigns, without identifying the Commissioner therein, shall be deemed a proper conveyance or transfer.

Pub. L. 86–372, § 114(b)1959—Subsec. (a). , authorized the Commissioner, with respect to any mortgage covering a one-, two-, three-, or four-family residence insured under this chapter, if he finds after notice of default, that the default was due to circumstances beyond the control of the mortgagor and it is probable that the mortgage will be restored to good standing within a reasonable period of time, to extend the time for curing default and to enter into an agreement with the mortgagee providing that if the mortgage is subsequently foreclosed, any interest accruing after the date of the agreement which is not paid by the mortgagor may be included in the debentures.

Pub. L. 86–372, § 117September 23, 1959section 1715t of this titleSubsec. (k). , substituted “and with respect to any debentures issued in exchange for properties conveyed to and accepted by the Commissioner after in accordance with such section” for “with respect to any debentures issued pursuant to this section or section 1739 or 1750c of this title”, and inserted provisions authorizing inclusion as a portion of the foreclosure costs payments made by the mortgagee for the cost of acquiring the property and conveying the evidencing title to the property to the Commissioner, and permitting the termination of the mortgagee’s obligation to pay mortgage insurance premiums in the event the contract of insurance is terminated pursuant to .

Pub. L. 85–104, § 108(a)o1957—Subsec. (d). , substituted “established by the Commissioner pursuant to section 1715 of this title” for “determined by the Commissioner, with the approval of the Secretary of the Treasury, at the time the mortgage was offered for insurance, but not to exceed 3 per centum per annum” in second sentence.

Pub. L. 85–104, § 107Subsec. (k). , added subsec. (k).

Aug. 11, 19551955—Subsec. (f). Act , authorized the Commissioner to effect the settlement of certificates of claim and refunds to mortgagors.

Aug. 2, 1954lsection 1715e of this titlesection 1709 of this titleAugust 2, 1954section 1715e of this title1954—Subsec. (a). Act , § 111(), permitted a mortgagee to receive in debentures amounts paid by it for Federal taxes imposed on a deed to it and on a deed to the Commissioner; (2) substituted, in second proviso, “or under , or with respect to any mortgage accepted for insurance under on or after ,” for “or under ”; and (3) inserted proviso permitting direct conveyances to the Commissioner.

Aug. 2, 1954section 1715e of this titleSubsec. (d). Act , § 112(a), substituted provision for a straight 20-year maturity on debentures for former provision that the debentures should mature “three years after the 1st day of July following the maturity date of the mortgage on the property in exchange for which the debentures were issued, except that debentures issued with respect to mortgages insured under shall mature twenty years after the date of such debentures” in second sentence.

Aug. 2, 1954Subsec. (j). Act , § 113, added subsec. (j).

Sept. 1, 1951section 1715e of this title1951—Subsec. (d). , inserted in second sentence the provision that debentures issued with respect to mortgages insured under shall mature twenty years after the date of such debentures.

Apr. 20, 19501950—Act , § 122, substituted “Commissioner” for “Administrator” wherever appearing.

Apr. 20, 1950section 1715e of this titleSubsec. (a). Act , § 105, inserted “or under ” in second proviso.

Aug. 10, 1948lJuly 1, 19441948—Subsec. (a). Act , § 101()(1), (2), struck out “prior to ” in first proviso and inserted second proviso.

Aug. 10, 1948section 1709 of this titlesection 1713 of this titleSubsec. (f). Act , § 101(q), inserted “if the mortgage was insured under and shall be retained by the Administrator and credited to the Housing Insurance Fund if the mortgage was insured under ” before the colon in par. (1).

Oct. 14, 19431943—Subsec. (a). Act , inserted proviso.

June 28, 1941July 1, 1944July 1, 19411941—Subsec. (a). Act , substituted “” for “” in last sentence.

June 3, 19391939—Subsec. (a). Act , § 9, amended last sentence generally.

June 3, 1939Subsec. (g). Act , § 10, inserted last sentence.

Feb. 3, 19381938—Subsecs. (a) to (f). Act , amended provisions generally.

Feb. 3, 1938Subsecs. (g), (h). Act , added subsecs. (g) and (h).

Feb. 19, 1937July 1, 1939July 1, 19371937—Subsec. (b). Act Joint Res. , substituted “” for “”.

May 28, 19351935—Subsec. (a). Act , amended last sentence generally.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendment

Pub. L. 105–276, title VI, § 601(b)Oct. 21, 1998112 Stat. 2673

Effective Date of 1996 Amendment

Pub. L. 104–99, title IV, § 407(c)Jan. 26, 1996110 Stat. 46Pub. L. 104–134, title I, § 101(e) [title II, § 221(d)]Apr. 26, 1996110 Stat. 1321–257Pub. L. 104–140, § 1(a)May 2, 1996110 Stat. 1327Pub. L. 104–204, title II, § 203Sept. 26, 1996110 Stat. 2894Pub. L. 105–33, title II, § 2002(1)Aug. 5, 1997111 Stat. 257

Effective Date of 1954 Amendment

Act Aug. 2, 1954, ch. 649, title I, § 112(e)68 Stat. 593

Regulations

Pub. L. 104–134, title I, § 101(e) [title II, § 221(c)(1)]Apr. 26, 1996110 Stat. 1321–291

Pub. L. 104–99, title IV, § 407(d)Jan. 26, 1996110 Stat. 46section 407 of Pub. L. 104–99section 1715u of this titleJan. 26, 1996Pub. L. 104–134, title I, § 101(e) [title II, § 221(c)(2)]Apr. 26, 1996110 Stat. 1321–257Pub. L. 104–140, § 1(a)May 2, 1996110 Stat. 1327, , , which directed the Secretary of Housing and Urban Development to issue interim regulations to implement and amendments made by that section (amending this section and and enacting provisions set out as a note above) not later than 60 days after , was repealed by , , , 1321–291; renumbered title I, , , .

Pub. L. 100–628, title X, § 1064(c)Nov. 7, 1988102 Stat. 3275

Homeownership Preservation

Pub. L. 110–289, div. B, title I, § 2125July 30, 2008122 Stat. 2840

Asset Control Area Demonstration Program Agreements, Contracts, and Regulations

Pub. L. 107–206, title I, § 1303Aug. 2, 2002116 Stat. 897

Transfer of HUD Assets in Revitalization Areas

Pub. L. 106–554, § 1(a)(7) [title I, § 142]Dec. 21, 2000114 Stat. 2763

Settlement Costs in the Financing of Federal Housing Administration and Veterans’ Administration Assisted Housing; Study and Recommendations to Congress on Reduction and Standardization of Costs

Pub. L. 91–351, title VII, § 701July 24, 197084 Stat. 461