-CITE-
    12 USC CHAPTER 28 - EMERGENCY MORTGAGE RELIEF               01/03/2007

-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.                   
    2704.       Insurance for emergency mortgage loans and advances.  
    2705.       Emergency mortgage relief payments.                   
    2706.       Emergency Homeowners' Relief Fund.                    
    2707.       Authority of 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.                                       

-End-



-CITE-
    12 USC Sec. 2701                                            01/03/2007

-EXPCITE-
    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'."

-End-



-CITE-
    12 USC Sec. 2702                                            01/03/2007

-EXPCITE-
    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.)

-End-



-CITE-
    12 USC Sec. 2703                                            01/03/2007

-EXPCITE-
    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.)

-End-



-CITE-
    12 USC Sec. 2704                                            01/03/2007

-EXPCITE-
    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.)

-End-



-CITE-
    12 USC Sec. 2705                                            01/03/2007

-EXPCITE-
    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.)

-End-



-CITE-
    12 USC Sec. 2706                                            01/03/2007

-EXPCITE-
    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.


-MISC1-
                                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.

-End-



-CITE-
    12 USC Sec. 2707                                            01/03/2007

-EXPCITE-
    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.)

-End-



-CITE-
    12 USC Sec. 2708                                            01/03/2007

-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".

-End-



-CITE-
    12 USC Sec. 2709                                            01/03/2007

-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.

-End-



-CITE-
    12 USC Sec. 2710                                            01/03/2007

-EXPCITE-
    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.


-MISC1-
                                AMENDMENTS                            
      1976 - Pub. L. 94-375 substituted "October 1, 1977" for "July 1,
    1976".

-End-



-CITE-
    12 USC Sec. 2711                                            01/03/2007

-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.)

-End-



-CITE-
    12 USC Sec. 2712                                            01/03/2007

-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.)

-End-