Defaulted mortgages
Existing mortgages
Notwithstanding any other provision of law, the Secretary, in connection with a mortgage restructuring under section 514 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, may make a one time, nondefault partial or full payment of claim under one or more mortgage insurance contracts, which shall include a determination by the Secretary or the participating administrative entity, in accordance with the Multifamily Assisted Housing Reform and Affordability Act of 1997, of the market value of the project and a restructuring of the mortgage, under such terms and conditions as are permitted by section 517(a) of such Act.
Repayment
As a condition to a partial claim payment under this section, the mortgagor shall agree to repay to the Secretary the amount of such payment and such obligation shall be secured by a second mortgage on the property on such terms and conditions as the Secretary may determine.
June 27, 1934, ch. 847Pub. L. 103–233, title I, § 101(e)108 Stat. 357Pub. L. 105–65, title II, § 210111 Stat. 1366Pub. L. 106–74, title II, § 213(a)113 Stat. 1073(, title V, § 541, as added , , ; amended , title V, § 523(b), , , 1406; , , .)
Editorial Notes
References in Text
Pub. L. 105–65111 Stat. 1384section 1437f of Title 42section 1701 of this titleThe Multifamily Assisted Housing Reform and Affordability Act of 1997, referred to in subsec. (b), is title V of , , . Sections 514 and 517(a) of the Act are set out as a note under , The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title of 1997 Amendment note set out under and Tables.
Amendments
Pub. L. 106–74, § 213(a)(1)1999—, substituted “defaulted mortgages and in connection with mortgage restructuring” for “multifamily housing projects and health care facilities” in section catchline.
Pub. L. 106–74, § 213(a)(2)Subsec. (b). , substituted “partial or full payment of claim under one or more mortgage insurance contracts” for “partial payment of the claim under the mortgage insurance contract”.
Pub. L. 105–65, § 210(1)1997—, inserted “and health care facilities” after “housing projects” in section catchline.
Pub. L. 105–65, § 523(b)(1)Subsec. (a). , substituted “Defaulted mortgages” for “Authority” in heading.
Pub. L. 105–65, § 210(2)(B), inserted “or for keeping the health care facility operational to serve community needs,” after “character of the project,” in introductory provisions.
Pub. L. 105–65, § 210(2)(A)section 1715w of this titlesection 1715z–7 of this titlesection 1749aaa–5 of this titlesection 1701z–11(b) of this titlesection 1701z–11(b) of this title, which directed the insertion, in introductory provisions, of “or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in ), a hospital (as that term is defined in ), or a group practice facility (as that term is defined in ))” after “”, was executed by inserting the language after “)” to reflect the probable intent of Congress.
Pub. L. 105–65, § 523(b)(2)Subsecs. (b), (c). , (3), added subsec. (b) and redesignated former subsec. (b) as (c).