-CITE-

12 USC CHAPTER 28 - EMERGENCY MORTGAGE RELIEF 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

.

-HEAD-

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-MISC1-

Sec.

2701. Congressional findings and declaration of purpose.

2702. Mortgages eligible for assistance.

2703. Manner of assistance and repayment.

(a) Form of assistance.

(b) Amount of assistance.

(c) Monthly payments; extension of time; report of

increase in income.

(d) Conditions and terms of repayment; interest rate.

(e) Deferral of commencement of repayment; security

for repayment.

2704. Insurance for emergency mortgage loans and advances.

(a) Institutions eligible.

(b) Amount of insurance.

(c) Premium charge; amount.

(d) Waiver of compliance with rules and regulations;

finality and incontestability of payment for

loss; transfer of insurance.

(e) Maximum aggregate amount of loans and advances

insured.

2705. Emergency mortgage relief payments.

(a) Direct payments to mortgagee.

(b) Mortgages eligible; terms and conditions.

(c) Processing of relief payments; power of

Secretary.

2706. Emergency Homeowners' Relief Fund.

2707. Authority of Secretary.

(a) Rules and regulations.

(b) Payment of expenses and charges relating to

acquisition, handling, improvement, or disposal

of real and personal property.

(c) Powers with respect to property rights held by

Secretary.

2708. Authorization of appropriations; limitations; expiration date

for loans and advances of credit.

2709. Waiver and relaxation by institutions and approved mortgagees

of limitations with respect to mortgage delinquencies;

notification to Federal supervisory agency prior to foreclosure

proceedings.

2710. Reports to Congress; time; contents.

2711. Nonapplicability of other laws.

2712. Federal Deposit Insurance Corporation advances to insured

banks.

-CITE-

12 USC Sec. 2701 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2701. Congressional findings and declaration of purpose

-STATUTE-

(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 unemployment and has reduced the incomes of many others;

(2) as a result of these adverse economic conditions the

capacity of many homeowners to continue to make mortgage payments

has deteriorated 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 assistance until economic conditions improve.

(b) It is the purpose of this chapter to provide a standby

authority which will prevent widespread 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

defray mortgage expenses.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 102, July 2, 1975, 89 Stat. 249.)

-MISC1-

SHORT TITLE

Section 1 of Pub. L. 94-50 provided: ''That this Act (enacting

this chapter, amending sections 1723e and 1735b of this title and

sections 1452 and 4106 of Title 42, The Public Health and Welfare,

enacting 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'.''

Section 101 of title I of Pub. L. 94-50 provided that: ''This

title (enacting this chapter) may be cited as the 'Emergency

Homeowners' Relief Act'.''

-CITE-

12 USC Sec. 2702 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2702. Mortgages eligible for assistance

-STATUTE-

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 mortgage 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 responsible for the

regulation of the holder that circumstances (such as the volume

of delinquent loans in its portfolio) 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, 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;

(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 and is financially unable to

make full mortgage payments;

(5) there is a reasonable prospect that the mortgagor will be

able to make the adjustments necessary for a full resumption of

mortgage payments; and

(6) the mortgaged property is the principal residence of the

mortgagor.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 103, July 2, 1975, 89 Stat. 249.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2703, 2705 of this title.

-CITE-

12 USC Sec. 2703 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2703. Manner of assistance and repayment

-STATUTE-

(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

advances of credit insured pursuant to section 2704 of this title

or in the form of emergency mortgage relief payments made by the

Secretary pursuant 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 mortgage

insurance premiums due under the homeowner's mortgage, 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.

(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 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.

(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 repayable by the

homeowner upon such terms and conditions as the Secretary shall

prescribe, except that interest on a loan or advance of credit

insured under section 2704 of this title or emergency mortgage

relief payments made under section 2705 of this title shall not be

charged at a rate which exceeds the maximum interest rate

applicable with respect to mortgages insured pursuant to section

1709(b) of this title.

(e) Deferral of commencement of repayment; security for repayment

The Secretary may provide for the deferral of the commencement of

the repayment of a loan or advance insured under section 2704 of

this title or emergency mortgage relief payments made under section

2705 of this title 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. 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.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 104, July 2, 1975, 89 Stat. 250.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2704, 2705 of this title.

-CITE-

12 USC Sec. 2704 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2704. Insurance for emergency mortgage loans and advances

-STATUTE-

(a) Institutions eligible

The Secretary is authorized, upon such terms and conditions as

the Secretary may prescribe, to insure banks, trust companies,

finance companies, mortgage companies, savings and loan

associations, insurance companies, credit unions, and such other

financial institutions, which the Secretary finds to be qualified

by experience and facilities and approves as eligible for

insurance, against losses which they may sustain as a result of

emergency loans or advances of credit made in accordance with the

provisions of section 2703 of this title and this section with

respect to mortgages eligible for assistance under this chapter.

(b) Amount of insurance

In no case shall the insurance granted by the Secretary under

this section to any financial institution on loans and advances

made by such financial institution for the purposes of this chapter

exceed 40 per centum of the total amount of such loans and advances

made by the institution, except that, with respect to any

individual loan or advance of credit, the amount of any claim for

loss on such individual loan or advance of credit paid by the

Secretary under the provision of this section shall not exceed 90

per centum of such loss.

(c) Premium charge; amount

The Secretary is authorized to fix a premium charge or charges

for the insurance granted under this section, but in the case of

any loan or advance of credit, such charge or charges shall not

exceed an amount equivalent to one-half of 1 per centum per annum

of the principal obligation of such loan or advance of credit

outstanding at any time.

(d) Waiver of compliance with rules and regulations; finality and

incontestability of payment for loss; transfer of insurance

The Secretary is authorized and empowered to waive compliance

with any rule or regulation prescribed by the Secretary for the

purposes of this section if, in the Secretary's judgment, the

enforcement of such rule or regulation would impose an injustice

upon an insured lending institution which has substantially

complied with such regulations in good faith. Any payment for loss

made to an insured financial institution under this section shall

be final and incontestable after two years from the date the claim

was certified for payment by the Secretary, in the absence of fraud

or misrepresentation on the part of such institution unless a

demand for repurchase of the obligation shall have been made on

behalf of the United States prior to the expiration of such

two-year period. The Secretary is authorized to transfer to any

financial institution approved for insurance under this chapter any

insurance in connection with any loan which may be sold to it by

another insured financial institution.

(e) Maximum aggregate amount of loans and advances insured

The aggregate amount of loans and advances insured under this

section shall not exceed $1,500,000,000 at any one time.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 105, July 2, 1975, 89 Stat. 251.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2703, 2705, 2706 of this

title.

-CITE-

12 USC Sec. 2705 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2705. Emergency mortgage relief payments

-STATUTE-

(a) Direct payments to mortgagee

In the case of any mortgagee which would otherwise be eligible to

participate in the program authorized under section 2704 of this

title but does not qualify for an advance or advances as authorized

by section 2712 of this title or under section 1430, 1430b, or 1431

of this title or otherwise elects not to participate in the program

authorized under section 2704 of this title, the Secretary is

authorized to make repayable emergency mortgage relief payments

directly to such mortgagee on behalf of homeowners whose mortgages

are held by such financial institution and who are delinquent in

their mortgage payments.

(b) Mortgages eligible; terms and conditions

Emergency mortgage relief payments shall be made under this

section only with respect to a mortgage which meets the

requirements of section 2702 of this title and only on such terms

and conditions as the Secretary may prescribe, subject to the

provisions of section 2703 of this title.

(c) Processing of relief payments; power of Secretary

The Secretary may make such delegations and accept such

certifications with respect to the processing of mortgage relief

payments provided under this section as he deems appropriate to

facilitate the prompt and efficient implementation of the

assistance authorized under this section.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 106, July 2, 1975, 89 Stat. 251.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2703, 2706, 2708 of this

title.

-CITE-

12 USC Sec. 2706 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2706. Emergency Homeowners' Relief Fund

-STATUTE-

(a) To carry out the purposes of this chapter, the Secretary is

authorized to establish in the Treasury of the United States an

Emergency Homeowners' Relief Fund (hereinafter in this chapter

referred to as the ''fund'') which shall be available to the

Secretary without fiscal year limitation -

(1) for making payments in connection with defaulted loans or

advances of credit insured under section 2704 of this title;

(2) for making emergency mortgage relief payments under section

2705 of this title;

(3) to pay such administrative expenses (or portion of such

expenses) of carrying out the provisions of this chapter as the

Secretary may deem necessary.

(b) The fund shall be credited with -

(1) all amounts received by the Secretary as premium charges

for insurance or as repayment for emergency mortgage relief

payments under this chapter and all receipts, earnings,

collections, or proceeds derived from any claim or other assets

acquired by the Secretary under this Act; and

(2) such amounts as may be appropriated for the purposes of

this chapter.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 107, July 2, 1975, 89 Stat. 252; Pub.

L. 98-479, title II, Sec. 204(m)(1), Oct. 17, 1984, 98 Stat. 2234.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (b)(1), is Pub. L. 94-50, July

2, 1975, 89 Stat. 249, as amended, known as the Emergency Housing

Act of 1975, which in addition to enacting this chapter, amended

sections 1723e, 1723e note and 1735b of this title, and sections

1452 and 4106 of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see Short Title

note set out under section 2701 of this title and Tables.

-MISC2-

AMENDMENTS

1984 - Subsec. (a). Pub. L. 98-479, Sec. 204(m)(1)(A), (B),

redesignated subsec. (a)(1) as subsec. (a) and subpars. (A), (B),

and (C) as pars. (1), (2), and (3), respectively.

Subsec. (b). Pub. L. 98-479, Sec. 204(m)(1)(C), (D), redesignated

subsec. (a)(2) as subsec. (b) and subpars. (A) and (B) as pars. (1)

and (2), respectively.

-CITE-

12 USC Sec. 2707 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2707. Authority of Secretary

-STATUTE-

(a) Rules and regulations

The Secretary is authorized to make such rules and regulations as

may be necessary to carry out the provisions of this chapter.

(b) Payment of expenses and charges relating to acquisition,

handling, improvement, or disposal of real and personal

property

Notwithstanding any other provision of law relating to the

acquisition, handling, improvement, or disposal of real or other

property by the United States, the Secretary shall have power, for

the protection of the interest of the fund authorized under this

chapter, to pay out of such fund all expenses or charges in

connection with the acquisition, handling, improvement, or disposal

of any property, real or personal, acquired by the Secretary as a

result of recoveries under security, subrogation, or other rights.

(c) Powers with respect to property rights held by Secretary

In the performance of, with respect to, the functions, powers,

and duties vested in the Secretary by this chapter, the Secretary

shall -

(1) have the power, notwithstanding any other provision of law,

whether before or after default, to provide by contract or

otherwise for the extinguishment upon default of any redemption,

equitable, legal, or other right, title in any mortgage, deed,

trust, or other instrument held by or held on behalf of the

Secretary under the provisions of this chapter; and

(2) have the power to foreclose on any property or commence any

action to protect or enforce any right conferred upon the

Secretary by law, contract, or other agreement, and bid for and

purchase at any foreclosure or other sale any property in

connection with which assistance has been provided pursuant to

this chapter. In the event of any such acquisition, the

Secretary may, notwithstanding any other provision of law

relating to the acquisition, handling, or disposal of real

property by the United States, complete, remodel and convert,

dispose of, lease, and otherwise deal with, such property.

Notwithstanding any other provision of law, the Secretary also

shall have power to pursue to final collection by way of

compromise or otherwise all claims acquired by him in connection

with any security, subrogation, or other rights obtained by him

in administering this chapter.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 108, July 2, 1975, 89 Stat. 252.)

-CITE-

12 USC Sec. 2708 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2708. Authorization of appropriations; limitations; expiration

date for loans and advances of credit

-STATUTE-

(a) There are authorized to be appropriated for purposes of this

chapter such sums as may be necessary, except that the funds

authorized to be appropriated for section 2705 of this title shall

not exceed $500,000,000. Any amounts so appropriated shall remain

available until expended.

(b) No loans or advance of credit shall be insured and no

emergency mortgage relief payments made under this chapter after

September 30, 1977, except if such loan or advance or such payments

are made with respect to a mortgagor receiving the benefit of a

loan or advance insured, or emergency mortgage relief payments

made, under this chapter on such date.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 109, July 2, 1975, 89 Stat. 253; Pub.

L. 94-375, Sec. 13(a), Aug. 3, 1976, 90 Stat. 1075.)

-MISC1-

AMENDMENTS

1976 - Subsec. (b). Pub. L. 94-375 substituted ''September 30,

1977'' for ''June 30, 1976''.

-CITE-

12 USC Sec. 2709 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2709. Waiver and relaxation by institutions and approved

mortgagees of limitations with respect to mortgage

delinquencies; notification to Federal supervisory agency prior

to foreclosure proceedings

-STATUTE-

Each Federal supervisory agency with respect to financial

institutions subject to its jurisdiction, and the Secretary, with

respect to other approved mortgagees, shall (1) prior to October 1,

1977, take appropriate action, not inconsistent with laws relating

to the safety or soundness of such institutions or mortgagee, as

the case may be, to waive or relax limitations pertaining to the

operations of such institutions or mortgagees with respect to

mortgage delinquencies in order to cause or encourage forebearance

in residential mortgage loan foreclosures, and (2) until one year

from July 2, 1975, request each such institution or mortgagee to

notify that Federal supervisory agency, the Secretary, and the

mortgagor, at least thirty days prior to instituting foreclosure

proceedings in connection with any mortgage loan. As used in this

chapter the term ''Federal supervisory agency'' means the Board of

Governors of the Federal Reserve System, the Board of Directors of

the Federal Deposit Insurance Corporation, the Comptroller of the

Currency, the Federal Home Loan Bank Board, the Federal Savings and

Loan Insurance Corporation, and the National Credit Union

Administration.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 110, July 2, 1975, 89 Stat. 253; Pub.

L. 94-375, Sec. 13(b), Aug. 3, 1976, 90 Stat. 1075; Pub. L. 98-479,

title II, Sec. 204(m)(2), Oct. 17, 1984, 98 Stat. 2234.)

-MISC1-

AMENDMENTS

1984 - Pub. L. 98-479 struck out subsection ''(a)'' designation.

1976 - Subsec. (a). Pub. L. 94-375 substituted ''Each'' for

''Until one year from July 2, 1975, each'', and inserted ''prior to

October 1, 1977'' after ''(1)'', and ''until one year from July 2,

1975'' after ''(2)''.

-TRANS-

TRANSFER OF FUNCTIONS

Federal Home Loan Bank Board and Federal Savings and Loan

Insurance Corporation abolished and functions transferred, see

sections 401 to 406 of Pub. L. 101-73, set out as a note under

section 1437 of this title.

-CITE-

12 USC Sec. 2710 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2710. Reports to Congress; time; contents

-STATUTE-

Within sixty days after July 2, 1975, and within each sixty-day

period thereafter prior to October 1, 1977, the Secretary shall

make a report to the Congress on (1) the current rate of

delinquencies and foreclosures in the housing market areas of the

country which should be of immediate concern if the purposes of

this chapter is to be achieved; (2) the extent of, and prospect for

continuance of, voluntary forebearance by mortgagees in such

housing market areas; (3) actions being taken by governmental

agencies to encourage forebearance by mortgagees in such housing

market areas; (4) actions taken and actions likely to be taken with

respect to making assistance under this chapter available to

alleviate hardships resulting from any serious rates of

delinquencies and foreclosures; and (5) the current default status

and projected default trends with respect to mortgages covering

multifamily properties with special attention to mortgages insured

under the various provisions of the National Housing Act (12 U.S.C.

1701 et seq.) and with recommendations on how such defaults and

prospective defaults may be cured or avoided in a manner which,

while giving weight to the financial interests of the United

States, takes into full consideration the urgent needs of the many

low- and moderate-income families that currently occupy such

multifamily properties.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 111, July 2, 1975, 89 Stat. 253; Pub.

L. 94-375, Sec. 13(c), Aug. 3, 1976, 90 Stat. 1075.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in text, is act June 27,

1934, ch. 847, 48 Stat. 1246, as amended, which is classified

principally to chapter 13 (Sec. 1701 et seq.) of this title. For

complete classification of this Act to the Code, see section 1701

of this title and Tables.

-MISC2-

AMENDMENTS

1976 - Pub. L. 94-375 substituted ''October 1, 1977'' for ''July

1, 1976''.

-CITE-

12 USC Sec. 2711 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2711. Nonapplicability of other laws

-STATUTE-

Notwithstanding any provision of law which limits the nature,

amount, term, form, or rate of interest, or the nature, amount, or

form of security of loans or advances of credit, loans, or advances

of credit may be made in accordance with the provisions of this

chapter without regard to such provision of law.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 112, July 2, 1975, 89 Stat. 254.)

-CITE-

12 USC Sec. 2712 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 28 - EMERGENCY MORTGAGE RELIEF

-HEAD-

Sec. 2712. Federal Deposit Insurance Corporation advances to

insured banks

-STATUTE-

Notwithstanding any other provision of law, the Federal Deposit

Insurance Corporation is authorized, upon such terms and conditions

as the Corporation may prescribe, to make such advances to any

insured bank as the Corporation determines may be necessary or

appropriate to facilitate participation by such bank in the program

authorized by this chapter. For the purpose of obtaining such

funds as it determines are necessary for such advances, the

Corporation may borrow from the Treasury as authorized in section

1824 of this title, and the Secretary of the Treasury is authorized

and directed to make loans to the Corporation for such purpose in

the same manner as loans may be made for insurance purposes under

such section, subject to the maximum limitation on outstanding

aggregate loans there provided.

-SOURCE-

(Pub. L. 94-50, title I, Sec. 113, July 2, 1975, 89 Stat. 254.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2705 of this title.

-CITE-