Form of assistance
section 2702 of this titlesection 2704 of this titlesection 2705 of this titleAssistance under this chapter with respect to a mortgage which meets the requirements of may be provided in the form of emergency mortgage relief loans and advances of credit insured pursuant to or in the form of emergency mortgage relief payments made by the Secretary pursuant to .
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 mortgage insurance premiums due under the homeowner’s mortgage. The amount of assistance provided to a homeowner under this chapter shall be an amount that the Secretary determines 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 assistance provided for any homeowner shall not exceed $50,000.
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 prescribed by the Secretary, such monthly payments may be extended once for up to twelve additional months. A mortgagor receiving the benefit of mortgage relief assistance pursuant to this chapter shall be required, in accordance with criteria prescribed by the Secretary, to report any increase in income which will permit a reduction or termination of such assistance during this period.
Conditions and terms of repayment; interest rate
section 2704 of this titlesection 2705 of this title12 U.S.C. 1707Emergency loans or advances of credit made and insured under , and emergency mortgage relief payments made under , shall be repayable by the homeowner upon such terms and conditions as the Secretary shall prescribe, except that (1) the rate of interest on any loan or advance of credit insured under this chapter shall be fixed for the life of the loan or advance of credit and shall not exceed the rate of interest that is generally charged for mortgages on single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act [ et seq.] at the time such loan or advance of credit is made, and (2) no interest shall be charged on interest which is deferred on a loan or advance of credit made under this chapter. In establishing rates, terms and conditions for loans or advances of credit made under this chapter, the Secretary shall take into account a homeowner’s ability to repay such loan or advance of credit.
Deferral of commencement of repayment; security for repayment
section 2704 of this titlesection 2705 of this titleThe Secretary may provide for the deferral of the commencement of the repayment of a loan or advance insured under or emergency mortgage relief payments made under until one year following the date of the last disbursement of the proceeds of the loan or advance or payments or for such longer period as the Secretary determines would further the purpose of this chapter. Any eligible homeowner who receives a grant or an advance of credit under this chapter may repay the loan in full, without penalty, by lump sum or by installment payments at any time before the loan becomes due and payable. The Secretary shall by regulation require such security for the repayment of insured loans or advances of credit or emergency mortgage relief payments as he deems appropriate and may require that such repayment be secured by a lien on the mortgaged property.
Pub. L. 94–50, title I, § 10489 Stat. 250Pub. L. 111–203, title XIV, § 1496(b)(2)124 Stat. 2208(, , ; , , .)
Editorial Notes
References in Text
act June 27, 1934, ch. 84748 Stat. 1246section 1701 of this titleThe National Housing Act, referred to in subsec. (d)(1), is , . Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see and Tables.
Amendments
Pub. L. 111–203, § 1496(b)(2)(A)2010—Subsec. (b). , substituted “. The amount of assistance provided to a homeowner under this chapter shall be an amount that the Secretary determines 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 assistance provided for any homeowner shall not exceed $50,000.” for “, but such assistance shall not exceed the lesser of $250 per month or the amount determined to be reasonably necessary to supplement such amount as the homeowner is capable of contributing toward such mortgage payment.”
Pub. L. 111–203, § 1496(b)(2)(B)section 2704 of this titlesection 2705 of this titlesection 1709(b) of this titleSubsec. (d). , substituted “(1) the rate of interest on any loan or advance of credit insured under this chapter shall be fixed for the life of the loan or advance of credit and shall not exceed the rate of interest that is generally charged for mortgages on single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act at the time such loan or advance of credit is made, and (2) no interest shall be charged on interest which is deferred on a loan or advance of credit made under this chapter. In establishing rates, terms and conditions for loans or advances of credit made under this chapter, the Secretary shall take into account a homeowner’s ability to repay such loan or advance of credit.” for “interest on a loan or advance of credit insured under or emergency mortgage relief payments made under shall not be charged at a rate which exceeds the maximum interest rate applicable with respect to mortgages insured pursuant to .”
Pub. L. 111–203, § 1496(b)(2)(C)Subsec. (e). , inserted “Any eligible homeowner who receives a grant or an advance of credit under this chapter may repay the loan in full, without penalty, by lump sum or by installment payments at any time before the loan becomes due and payable.” after “purpose of this chapter.”
Statutory Notes and Related Subsidiaries
Effective Date of 2010 Amendment
Pub. L. 111–203section 1400(c) of Pub. L. 111–203section 1601 of Title 15Amendment by effective on the date on which final regulations implementing that amendment 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 , set out as a note under , Commerce and Trade.