Source: http://www.law.cornell.edu/uscode/text/12/1717?quicktabs_8=4
Timestamp: 2013-12-11 17:22:26
Document Index: 188534535

Matched Legal Cases: ['§ 1717', '§ 1717', '§ 1717', '§ 302', '§ 31', '§ 6', '§ 6', '§ 1', '§ 1', '§ 1', '§ 117', '§ 3', '§ 13', '§ 201', '§ 201', '§ 13', '§ 301', '§ 102', '§ 602', '§ 701', '§ 102', '§ 201', '§ 802', '§ 1004', '§ 2', '§ 7', '§ 405', '§ 1', '§ 802', '§ 114', '§ 202', '§ 201', '§ 402', '§ 901', '§ 806', '§ 2', '§ 408', '§ 101', '§ 318', '§ 246', '§ 317', '§ 534', '§ 309', '§ 202', '§ 201', '§ 201', '§ 2', '§ 2', '§ 443', '§ 1068', '§ 731', '§ 13', '§ 1381', '§ 582', '§ 1124', '§ 483', '§ 1471', '§ 693', '§ 291', '§ 133', '§ 8211', '§ 1122', '§ 1381', '§ 1381', '§ 1381', '§ 1381', '§ 1381', '§ 204', '§ 201', '§ 203', '§ 201', '§ 309', '§ 313', '§ 339', '§ 339', '§ 806', '§ 806', '§ 806', '§ 807', '§ 806', '§ 201', '§ 802', '§ 802', '§ 802', '§ 802', '§ 802', '§ 803', '§ 1', '§ 1', '§ 201', '§ 102', '§ 702', '§ 701', '§ 1124', '§ 3', '§ 6', '§ 2', '§ 3', '§ 4']

12 USC § 1717 - Federal National Mortgage Association and Government National Mortgage Association | Title 12 - Banks and Banking | U.S. Code | LII / Legal Information Institute
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12 USC § 1717 - Federal National Mortgage Association and Government National Mortgage Association
conventional mortgages that are secured by a subordinate lien against a one- to four-family residence that is the principal residence of the mortgagor; and (ii)
conventional mortgages that are secured by a subordinate lien against a property comprising five or more family dwelling units. If the corporation, pursuant to paragraphs (1) through (4), shall have purchased, serviced, sold, or otherwise dealt with any other outstanding mortgage secured by the same residence, the aggregate original amount of such other mortgage and the mortgage authorized to be purchased, serviced, sold, or otherwise dealt with under this paragraph shall not exceed the applicable limitation determined under paragraph (2).
The corporation shall establish limitations governing the maximum original principal obligation of conventional mortgages described in subparagraph (A). In any case in which the corporation purchases a participation interest in such a mortgage, the limitation shall be calculated with respect to the total original principal obligation of such mortgage described in subparagraph (A) and not merely with respect to the interest purchased by the corporation. Such limitations shall not exceed (i)
with respect to mortgages described in subparagraph (A)(i), 50 per centum of the single-family residence mortgage limitation determined under paragraph (2); and (ii)
with respect to mortgages described in subparagraph (A)(ii), the applicable limitation determined under paragraph (2).
No subordinate mortgage against a one- to four-family residence shall be purchased by the corporation if the total outstanding indebtedness secured by the property as a result of such mortgage exceeds 80 per centum of the value of such property unless (i)
that portion of such total outstanding indebtedness that exceeds such 80 per centum is guaranteed or insured by a qualified insurer as determined by the corporation; (ii)
the seller retains a participation of not less than 10 per centum in the mortgage; or (iii)
for such period and under such circumstances as the corporation may require, the seller agrees to repurchase or replace the mortgage upon demand of the corporation in the event that the mortgage is in default. The corporation shall not issue a commitment to purchase a subordinate mortgage prior to the date the mortgage is originated, if such mortgage is eligible for purchase under the preceding sentence only by reason of compliance with the requirements of clause (ii) of such sentence.
The corporation may not implement any new program (as such term is defined in section 4502 of this title) before obtaining the approval of the Secretary under section 4542 [1]
Administration of trusts; obligations of departments and agencies of the United States; exemption of interest income from taxation; authorization of appropriations for differential reimbursements (1)
Notwithstanding any other provision of this chapter or of any other law, the Association is authorized under section 1721 of this title to create, accept, execute, and otherwise administer in all respects such trusts, receiverships, conservatorships, liquidating or other agencies, or other fiduciary and representative undertakings and activities, hereinafter in this subsection called “trusts”, as might be appropriate for financing purposes; and in relation thereto the Association may acquire, hold and manage, dispose of, and otherwise deal in any mortgages or other types of obligations in which any department or agency of the United States listed in paragraph (2) of this subsection may have a financial interest. The Association may join in any such undertakings and activities, hereinafter in this subsection called “trusts”; notwithstanding that it is also serving in a fiduciary or representative capacity; and is authorized to guarantee any participations or other instruments, whether evidence of property rights or debt, issued for such financing purposes. Participations or other instruments issued by the Association pursuant to this subsection shall to the same extent as securities which are direct obligations of or obligations guaranteed as to principal or interest by the United States be deemed to be exempt securities within the meaning of laws administered by the Securities and Exchange Commission. The amounts of any mortgages and their obligations acquired by the Association under section 1721 of this title, pursuant to this subsection, shall not be included in the total amounts set forth in section 1721
Subject to the limitations provided in paragraph (4) of this subsection, one or more trusts may be established as provided in this subsection by each of the following departments or agencies:
The Farmers Home Administration of the Department of Agriculture, but only with respect to operating loans, direct farm ownership loans, direct housing loans, and direct soil and water loans. Such trusts may not be established with respect to loans for housing for the elderly under sections 502 and 515(a) of the Housing Act of 1949 [42 U.S.C. 1472 and 1485
(a)], nor with respect to loans for nonfarm recreational development.
The Department of Education, but only with respect to loans made by the Secretary of Education for construction of academic facilities, and loans to help finance student loan programs.
The Export-Import Bank.
The head of each such department or agency, hereinafter in this subsection called the “trustor,” is authorized to set aside a part or all of any obligations held by the trustor and subject them to a trust or trusts and, incident thereto, shall guarantee to the trustee timely payment thereof. The trust instrument may provide for the issuance and sale of beneficial interests or participations, by the trustee, in such obligations or in the right to receive interest and principal collections therefrom; and may provide for the substitution or withdrawal of such obligations, or for the substitution of cash for obligations. The trust or trusts shall be exempt from all taxation. The trust instrument may also contain other appropriate provisions in keeping with the purposes of this subsection. The Association shall be named and shall act as trustee of any such trusts and, for the purposes thereof, the title to such obligations shall be deemed to have passed to the Association in trust. The trust instrument shall provide that custody, control, and administration of the obligations shall remain in the trustor subjecting the obligations to the trust, subject to transfer to the trustee in event of default or probable default, as determined by the trustee, in the payment of principal and interest of the beneficial interests or participations. Collections from obligations subject to the trust shall be dealt with as provided in the instrument creating the trust. The trust instrument shall provide that the trustee will promptly pay to the trustor the full net proceeds of any sale of beneficial interests or participations to the extent they are based upon such obligations or collections. Such proceeds shall be dealt with as otherwise provided by law for sales or repayment of such obligations. The effect of both past and future sales of any issue of beneficial interests or participations shall be the same, to the extent of the principal of such issue, as the direct sale with recourse of the obligations subject to the trust. Any trustor creating a trust or trusts hereunder is authorized to purchase, through the facilities of the trustee, outstanding beneficial interests or participations to the extent of the amount of the trustor’s responsibility to the trustee on beneficial interests or participations outstanding, and to pay the trustor’s proper share of the costs and expenses incurred by the Association as trustee pursuant to the trust instrument.
When any trustor guarantees to the trustee the timely payment of obligations the trustor subjects to a trust pursuant to this subsection, and it becomes necessary for such trustor to meet his responsibilities under such guaranty, the trustor is authorized to fulfill such guaranty.
Beneficial interests or participations shall not be issued for the account of any trustor in an aggregate principal amount greater than is authorized with respect to such trustor in an appropriation Act. Any such authorization shall remain available only for the fiscal year for which it is granted and for the succeeding fiscal year.
The Association, as trustee, is authorized to issue and sell beneficial interests or participations under this subsection, notwithstanding that there may be an insufficiency in aggregate receipts from obligations subject to the related trust to provide for the payment by the trustee (on a timely basis out of current receipts or otherwise) of all interest or principal on such interests or participations (after provision for all costs and expenses incurred by the trustee, fairly prorated among trustors). There are authorized to be appropriated without fiscal year limitation such sums as may be necessary to enable any trustor to pay the trustee such insufficiency as the trustee may require on account of outstanding beneficial interests or participations authorized to be issued pursuant to paragraph (4) of this subsection. Such trustor shall make timely payments to the trustee from such appropriations, subject to and in accord with the trust instrument. In the event that the insufficiency required by the trustee is on account of principal maturities of outstanding beneficial interests or participations authorized to be issued pursuant to paragraph (4) of this subsection, or pursuant hereto, the trustee is authorized to elect to issue additional beneficial interests or participations for refinancing purposes in lieu of requiring any trustor or trustors to make payments to the trustee from appropriated funds or other sources. Each such issue of beneficial interests or participations shall be in an amount determined by the trustee but not in excess of the aggregate amount which the trustee would otherwise require the trustor or trustors to pay from appropriated funds or other sources, and may be issued without regard to the provisions of paragraph (4) of this subsection. All refinancing issues of beneficial interests or participations shall be deemed to have been issued pursuant to the authority contained in the appropriation Act or Acts under which the beneficial interests or participations were originally issued.
(June 27, 1934, ch. 847, title III, § 302,48 Stat. 1254; May 28, 1935, ch. 150, § 31,49 Stat. 300; Feb. 3, 1938, ch. 13, § 6,52 Stat. 24; Mar. 28, 1941, ch. 31, § 6,55 Stat. 62; July 1, 1948, ch. 784, § 1,62 Stat. 1208; July 19, 1949, ch. 351, § 1,63 Stat. 446; Oct. 25, 1949, ch. 729, § 1(3),63 Stat. 905; Apr. 20, 1950, ch. 94, title I, § 117,64 Stat. 57; July 14, 1952, ch. 723, § 3(b),66 Stat. 602; June 30, 1953, ch. 170, § 13(b),67 Stat. 125; Aug. 2, 1954, ch. 649, title II, § 201,68 Stat. 613; Aug. 7, 1956, ch. 1029, title II, § 201,70 Stat. 1096; Pub. L. 85–857, § 13(g),Sept. 2, 1958, 72 Stat. 1265; Pub. L. 86–372, title III, § 301,Sept. 23, 1959, 73 Stat. 669; Pub. L. 87–70, title I, § 102(c), title VI, §§ 602, 603
(a),June 30, 1961, 75 Stat. 158, 176; Pub. L. 88–560, title VII, §§ 701(a), 702,Sept. 2, 1964, 78 Stat. 800, 802; Pub. L. 89–117, title I, § 102(d), title II, § 201(b)(1), title VIII, §§ 802(a), 803, 804, title X, § 1004(a),Aug. 10, 1965, 79 Stat. 454, 465, 493, 494, 501; Pub. L. 89–429, § 2,May 24, 1966, 80 Stat. 164; Pub. L. 89–751, § 7,Nov. 3, 1966, 80 Stat. 1236; Pub. L. 89–754, title IV, § 405,Nov. 3, 1966, 80 Stat. 1273; Pub. L. 90–19, § 1(a)(2), (3), (j)(1),May 25, 1967, 81 Stat. 17, 18; Pub. L. 90–448, title VIII, §§ 802(c)–(g), 803, Aug. 1, 1968, 82 Stat. 536, 537, 542; Pub. L. 91–152, title I, § 114,Dec. 24, 1969, 83 Stat. 385; Pub. L. 91–296, title II, § 202,June 30, 1970, 84 Stat. 350; Pub. L. 91–351, title II, § 201(a), title IV, § 402,July 24, 1970, 84 Stat. 450, 458; Pub. L. 91–609, title IX, § 901(d),Dec. 31, 1970, 84 Stat. 1807; Pub. L. 93–383, title VIII, §§ 806(a)–(f), 807, Aug. 22, 1974, 88 Stat. 727, 728; Pub. L. 93–541, § 2,Dec. 26, 1974, 88 Stat. 1739; Pub. L. 95–128, title IV, § 408(a),Oct. 12, 1977, 91 Stat. 1138; Pub. L. 95–557, title I, § 101(c)(3), title III, § 318(a),Oct. 31, 1978, 92 Stat. 2083, 2100; Pub. L. 95–619, title II, § 246,Nov. 9, 1978, 92 Stat. 3233; Pub. L. 96–153, title III, § 317,Dec. 21, 1979, 93 Stat. 1119; Pub. L. 96–294, title V, § 534(b),June 30, 1980, 94 Stat. 741; Pub. L. 96–399, title III, §§ 309, 313(a), 339
(a)(1), (b)(1),Oct. 8, 1980, 94 Stat. 1641, 1644, 1657; Pub. L. 97–110, title II, § 202(c),Dec. 26, 1981, 95 Stat. 1514; Pub. L. 98–440, title II, §§ 201(a), 203
(a), 205
(a),Oct. 3, 1984, 98 Stat. 1692, 1693, 1695; Pub. L. 98–479, title II, §§ 201(b), 204
(a)(16),Oct. 17, 1984, 98 Stat. 2227, 2232; Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–122, § 2(b)(1),Sept. 30, 1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub. L. 100–242, title IV, § 443(a),Feb. 5, 1988, 101 Stat. 1922; Pub. L. 100–628, title X, § 1068(a),Nov. 7, 1988, 102 Stat. 3276; Pub. L. 101–73, title VII, § 731(f)(1),Aug. 9, 1989, 103 Stat. 433; Pub. L. 102–54, § 13(d)(2)(A),June 13, 1991, 105 Stat. 274; Pub. L. 102–550, title XIII, § 1381(b), (c), (s)(1),Oct. 28, 1992, 106 Stat. 3995, 4001; Pub. L. 105–276, title V, § 582(a)(14),Oct. 21, 1998, 112 Stat. 2644; Pub. L. 110–289, div. A, title I, § 1124(a)(1), (2),July 30, 2008, 122 Stat. 2691, 2692.)
Section 1720 of this title, referred to in subsecs. (a)(2)(A) and (b)(1), was repealed by Pub. L. 98–181, title IV, § 483(a),Nov. 30, 1983, 97 Stat. 1240.
The Housing Act of 1949, referred to in subsec. (b)(1), is act July 15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the Housing Act of 1949 is classified generally to subchapter III (§ 1471 et seq.) of chapter 8A 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 1441 of Title 42 and Tables.
The Servicemen’s Readjustment Act of 1944, referred to in subsec. (b)(1), is act June 22, 1944, ch. 268, 58 Stat. 284, as amended, which was classified generally to chapter 11C (§§ 693 to 697g) of former Title 38, Pensions, Bonuses, and Veterans’ Relief, and which was repealed by section 14(87) ofPub. L. 85–857, Sept. 2, 1958, 72 Stat. 1273, the first section of which enacted Title 38, Veterans’ Benefits. For distribution of sections 693 to 697g of former Title 38 to Title 38, Veterans’ Benefits, see Table preceding section 101 of Title 38, Veterans’ Benefits.
The Public Health Service Act, referred to in subsec. (b)(1), is act July 1, 1944, ch. 373, 58 Stat. 682, as amended. Part B of title VI of the Public Health Service Act is classified generally to part B (§ 291j–1 et seq.) of subchapter IV of chapter 6A 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 201 of Title 42 and Tables.
Subchapter IX–A of this chapter and section 1749cc–1 of this title, referred to in subsec. (b)(1), were repealed by Pub. L. 101–235, title I, § 133(a),Dec. 15, 1989, 103 Stat. 2027.
The National Energy Conservation Policy Act, referred to in subsec. (b)(3), is Pub. L. 95–619, Nov. 9, 1978, 92 Stat. 3208, as amended. Title II of the National Energy Conservation Policy Act is classified principally to subchapter II (§ 8211 et seq.) of chapter 91 of Title 42, The Public Health and Welfare. Section 210 of the Act [42 U.S.C. 8211] was omitted from the Code pursuant to section 8229 of Title 42 which terminated authority under that section on June 30, 1989. For complete classification of this Act to the Code, see Short Title note set out under section 8201 of Title 42 and Tables.
Section 4542 of this title, referred to in subsec. (b)(6), was repealed and a new section 4542 was added by Pub. L. 110–289, div. A, title I, §§ 1122, 1124
(d),July 30, 2008, 122 Stat. 2693. The new section 4542 does not relate to obtaining the approval of the Secretary.
2008—Subsec. (b)(2). Pub. L. 110–289inserted last sentence and substituted seventh through ninth sentences for former seventh and eighth sentences which read as follows: “Such limitations shall not exceed $93,750 for a mortgage secured by a single-family residence, $120,000 for a mortgage secured by a two-family residence, $145,000 for a mortgage secured by a three-family residence, and $180,000 for a mortgage secured by a four-family residence, except that such maximum limitations shall be adjusted effective January 1 of each year beginning with 1981. Each such adjustment shall be made by adding to each such amount (as it may have been previously adjusted) a percentage thereof equal to the percentage increase during the twelve-month period ending with the previous October in the national average one-family house price in the monthly survey of all major lenders conducted by the Federal Housing Finance Board.”
1998—Subsec. (b)(2). Pub. L. 105–276struck out penultimate sentence which read as follows: “With respect to mortgages secured by property comprising five or more family dwelling units, such limitations shall not exceed 125 per centum of the dollar amounts set forth in section 1713
(c)(3) of this title, except that such limitations may be increased by the corporation (taking into account construction costs) to not to exceed 240 per centum of such dollar amounts in any geographical area for which the Secretary of Housing and Urban Development determines under such section that cost levels require any increase in the dollar amount limitations under such section.”
1992—Subsec. (b)(2). Pub. L. 102–550, § 1381(b), (c)(1), in first sentence, struck out “and with the approval of the Secretary of Housing and Urban Development,” before “the corporation” and in last sentence, substituted “Hawaii, and the Virgin Islands” for “and Hawaii”.
Subsec. (b)(3), (4). Pub. L. 102–550, § 1381(c)(2), (3), struck out “, with the approval of the Secretary of Housing and Urban Development,” after “corporation is authorized”.
Subsec. (b)(6). Pub. L. 102–550, § 1381(c)(4), added par. (6).
Subsec. (c)(2). Pub. L. 102–550, § 1381(s)(1)(A), in first sentence of concluding provisions, substituted “the trustor” for “him” after “obligations held by” and in last sentence, substituted “the trustor’s” for “his” in two places.
Subsec. (c)(3). Pub. L. 102–550, § 1381(s)(1)(B), substituted “the trustor” for “he” after “obligations” and “guaranty,”.
1991—Subsec. (c)(2)(D). Pub. L. 102–54substituted “Department of Veterans Affairs” for “Veterans’ Administration”.
1989—Subsec. (b)(2). Pub. L. 101–73substituted “Resolution Trust Corporation” for “Federal Savings and Loan Insurance Corporation” and “Federal Housing Finance Board” for “Federal Home Loan Bank Board”.
1988—Subsec. (b)(5)(A)(i). Pub. L. 100–242struck out “through March 15, 1988,” before “conventional mortgages”.
Subsec. (b)(5)(A)(ii). Pub. L. 100–628struck out “until October 1, 1985,” before “conventional mortgages”.
1987—Subsec. (b)(5)(A)(i). Pub. L. 100–200substituted “March 15, 1988” for “December 16, 1987”.
Pub. L. 100–122substituted “through October 31, 1987” for “until October 1, 1987”.
1986—Subsecs. (a)(3), (b)(2). Pub. L. 99–514substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.
1984—Subsec. (b)(2). Pub. L. 98–479, § 204(a)(16), substituted “corporation” for “Corporation” in fourth sentence after “The”.
Subsec. (b)(2). Pub. L. 98–440, §§ 201(a), 205
(a), in second sentence substituted “No such purchase of a conventional mortgage secured by a property comprising one- to four-family dwelling units” for “No such purchase of a conventional mortgage”, in sixth sentence substituted “The corporation shall establish limitations governing the maximum original principal obligation of conventional mortgages that are purchased by it; in any case in which the corporation purchases a participation interest in such a mortgage, the limitation shall be calculated with respect to the total original principal obligation of the mortgage and not merely with respect to the interest purchased by the corporation” for “The corporation shall establish limitations governing the maximum principal obligation of conventional mortgages purchased by it”, and in penultimate sentence inserted provision that the limitations set forth in section 1713
(c)(3) of this title may be increased by the corporation (taking into account construction costs) to not to exceed 240 per centum of such dollar amounts in any geographical area for which the Secretary of Housing and Urban Development determines under such section that cost levels require any increase in the dollar amount limitations under such section.
Subsec. (b)(5). Pub. L. 98–440, § 203(a), added par. (5).
Subsec. (c)(2)(B). Pub. L. 98–479, § 201(b), substituted “Department of Education” for “Department of Health, Education, and Welfare” and “Secretary of Education” for “Commissioner of Education”.
1981—Subsec. (b)(2). Pub. L. 97–110substituted provisions empowering the Corporation to purchase a conventional mortgage which was originated more than one year prior to the purchase date only if the seller is the Federal Deposit Insurance Corporation, the Federal Savings and Loan Insurance Corporation, the National Credit Union Administration, or any other seller currently engaged in mortgage lending or investing activities for provisions which had empowered the Corporation to purchase a conventional mortgage which was originated more than one year prior to the purchase date only if the seller was currently engaged in mortgage lending or investing activities and if, as a result thereof, the cumulative aggregate of the principal balances of all conventional mortgages purchased by the Corporation which were originated more than one year prior to the date of purchase did not exceed 20 per centum of the cumulative aggregate of the principal balances of all conventional mortgages purchased by the Corporation.
1980—Subsec. (b)(1). Pub. L. 96–399, § 309, struck out “(1)” before “the mortgage” and cl. (2) relating to requirement respecting assistance under contracts authorized by section 1437f of title 42 for at least 20 per centum of covered units.
Subsec. (b)(2). Pub. L. 96–399, § 313(a), substituted provisions defining term “conventional mortgages”, and limitations respecting amounts, adjustments, etc., for such mortgages, for provisions establishing limitations for the maximum principal obligation of conventional mortgages purchased by the corporation and maximum amount of such limitations.
Subsec. (b)(3). Pub. L. 96–399, § 339(a)(1), substituted provisions relating to authority, with the approval of the Secretary of Housing and Urban Development, to deal in loans or advances of credit for the purchase and installation of home improvements, and provisions respecting eligibility for purchases of loans or advances of credit, for provisions relating to authority to deal in loans or advances of credit made for energy conserving improvements and solar energy systems, etc., and provisions respecting eligibility for purchases of loans.
Pub. L. 96–294inserted provisions relating to loans or advances of credit by public utilities for purpose of financing residential energy conservation measures in a residential building.
Subsec. (b)(4). Pub. L. 96–399, § 339(b)(1), added par. (4).
1979—Subsec. (b)(1). Pub. L. 96–153substituted “(1) if the mortgage is insured under section 1713
(e)(3), or 1715z–1 of this title, and (2) at least 20 per centum of the units covered by such mortgage are assisted under contracts authorized by section 1437f of title 42” for “if the mortgage (1) is insured under section 1715z–1 of this title or is a below-market interest rate mortgage insured under section 1715l
(d)(3) of this title, and (2) covers property which has the benefit of local tax abatement in an amount determined by the Secretary of Housing and Urban Development to be sufficient to make possible rentals not in excess of those that could be approved by the Secretary if the mortgage amount did not exceed the otherwise applicable maximum amount per dwelling unit and if local tax abatement were not provided”.
1978—Subsec. (b)(3). Pub. L. 95–619added par. (3).
Subsec. (b)(1). Pub. L. 95–557substituted “or subchapter VIII of this chapter or section 1709
(k) of this title” for “or subchapter VIII of this chapter” and “if the original principal obligation thereof exceeds or exceeded $55,000 in the case of property upon which is located a dwelling designed principally for a one-family residence; or $60,000 in the case of a two- or three-family residence; or $68,750 in the case of a four-family residence; or, in the case of a property containing more than four dwelling units, $38,000 per dwelling unit (or such higher amount not in excess of $45,000 per dwelling unit as the Secretary may by regulation specify in any geographical area where the Secretary finds that cost levels so require) for that part of the property attributable to dwelling use” for “if the original principal obligation thereof exceeds or exceeded $33,000 (or such higher amount not in excess of $38,000 as the Secretary may by regulation specify in any geographical area where he finds that cost levels so require), for each family residence or dwelling unit covered by the mortgage (plus an additional $2,500 for each such family residence or dwelling unit which has four or more bedrooms)”.
1977—Subsec. (b)(2). Pub. L. 95–128inserted “by more than 25 per centum” after “exceed” in last sentence.
1974—Subsec. (a)(2). Pub. L. 93–383, § 806(a)(1), substituted “September 1, 1968” for “the effective date established pursuant to section 808 of the Housing and Urban Development Act of 1968”.
Subsec. (a)(2)(A). Pub. L. 93–383, § 806(a)(2), struck out “effective” before “date”.
Subsec. (a)(2)(B). Pub. L. 93–383, § 806(a)(2), (b), struck out “effective” before “date”, inserted “or metropolitan area thereof” before “and shall” and “jurisdiction” before “venue”, and substituted “District of Columbia corporation” for “resident thereof”.
Subsec. (b)(1). Pub. L. 93–541substituted “or guaranteed under part B of title VI of the Public Health Service Act” for “to a public agency under part B of title VI of the Public Health Service Act”.
Pub. L. 93–383, § 807, substituted “$33,000 (or such higher amount not in excess of $38,000 as the Secretary may by regulation specify in any geographical area where he finds that cost levels so require)” for “$22,000”.
Subsec. (b)(2). Pub. L. 93–383, § 806(c)–(f), substituted “80” for “75” and “exceed 20” for “exceed 10”, struck out “private” before “insurer” in cl. (C), and substituted provisions relating to limitations contained in first proviso of first sentence of section 1464
(c) of this title, for provisions relating to limitations applicable to mortgages insured under sections 1709
(b) or 1713 of this title.
1970—Subsec. (a)(3). Pub. L. 91–609added par. (3).
Subsec. (b). Pub. L. 91–351, §§ 201(a), 402, designated existing provisions as par. (1), inserted “is insured under section 1715z–1 of this title or” before “is a below-market interest rate mortgage insured under section 1715l
(d)(3) of this title”, and added par. (2).
Pub. L. 91–296inserted provisions authorizing the purchase, service, sale, or other dealing in loans made to a public agency under part B of title VI of the Public Health Service Act.
1969—Subsec. (b). Pub. L. 91–152substituted “$22,000” or “the otherwise applicable maximum amount” for “$17,500” wherever appearing.
1968—Subsec. (a)(1). Pub. L. 90–448, § 802(c)(1), (2), designated existing provisions as par. (1), and struck out “(hereinafter referred to as the ‘Association’)”.
Subsec. (a)(2). Pub. L. 90–448, § 802(c)(3), added par. (2).
Subsec. (b). Pub. L. 90–448, § 802(d), substituted “each of the bodies corporate named in subsection (a) (2) of this section is authorized” for “the Association is authorized”, and inserted provisions empowering the corporation to purchase, sell, or otherwise deal in any securities guaranteed by the Association under section 1721
Subsec. (c)(1). Pub. L. 90–448, § 802(e), struck out “, consistent with section 1722 of this title,” before “to guarantee any participations”.
Subsec. (c)(2). Pub. L. 90–448, § 802(f), (g), struck out provisions from par. (C) which prohibited the Department of Housing and Urban Development from exercising the authority with respect to secondary market operations of the Federal National Mortgage Association, and in last sentence substituted “incurred by the Association” for “incurred by the Federal National Mortgage Association”.
Subsec. (c)(5). Pub. L. 90–448, § 803, inserted provisions authorizing the trustee, in the event that the insufficiency required by the trustee is on account of principal maturities of outstanding beneficial interests or participations to be issued pursuant to paragraph (4) of this subsection, or pursuant hereto, to elect to issue additional beneficial interests or participations for refinancing purposes in lieu of requiring any trustor or trustors to make payments to the trustee from appropriated funds or other sources, limiting each such issue of beneficial interests or participations, and directing that all refinancing issues be deemed to have been issued pursuant to the authority contained in the appropriation Act or Acts under which the beneficial interests or participations were originally issued.
1967—Subsec. (a). Pub. L. 90–19, § 1(j)(1), substituted “in the Department of Housing and Urban Development” for “a constituent agency of the Housing and Home Finance Agency”.
Subsec. (b). Pub. L. 90–19, § 1(a)(2), (3), substituted “Secretary of Housing and Urban Development” and “Secretary” for “Federal Housing Commissioner” and “Commissioner”, respectively.
1966—Subsec. (b). Pub. L. 89–754inserted “or under subchapter IX–A of this chapter with respect to a new community approved under section 1749cc–1 of this title”.
Subsec. (c). Pub. L. 89–429designated existing provisions as par. (1), gave the name “trusts”, for the purpose of the entire subsection, to trusts, receiverships, conservatorships, liquidating or other agencies, or other fiduciary and representative undertakings which the Association is authorized to administer, expanded the types of securities in which the Association is authorized to deal so as to include an expanded array of obligations in which any department or agency of the United States listed in par. (2) of the subsection might have a financial interest, exempted participation certificates or other instruments issued pursuant to this subsection from all regulation by the Securities and Exchange Commission, repealed existing authority for issuance of participations based on below-market interest rate mortgages insured under section 1715l
(d)(3) of this title, and added pars. (2) to (5).
Subsec. (c)(2)(B). Pub. L. 89–751substituted “The Department of Health, Education, and Welfare, but only with respect to loans made by the Commissioner of Education for construction of academic facilities, and loans to help finance student loan programs” for “The Office of Education of the Department of Health, Education, and Welfare, but only with respect to loans for construction of academic facilities”.
1965—Subsec. (b). Pub. L. 89–117, §§ 201(b)(1), 802
(a)(1), 803, 804, and 1004(a), defined “home mortgages”, removed mortgages offered by or covering property held by a federal instrumentality from the list of prohibited purchases, inserted parenthetical material which, in the case of family dwelling units having four or more bedrooms, placed an additional amount of $2,500 to the $17,500 per unit limit on purchasable mortgages, inserted provision excepting below-market mortgages from the $17,500 per unit limit on purchasable mortgages if local tax abatement were granted sufficient to keep rentals at the level where they would be if the mortgage amount did not exceed $17,500 per dwelling unit, and authorized the Association to purchase loans insured under subchapter III of chapter 8A of Title 42 in its secondary market operations.
Subsec. (c). Pub. L. 89–117, §§ 102(d), 802
(a)(2), (3), authorized appropriations to reimburse the Association for differential amounts resulting when mortgages bearing a below-market interest rate and insured under section 1715l
(d)(3) of this title after August 10, 1965, are included within one or more of the trusts or other agencies created under this section authorized the Association to deal, in addition to first mortgages, in obligations offered to it by the Housing and Home Finance Agency or its Administrator, or by such Agency’s constituent units or agencies or the heads thereof, and inserted “and other obligations” after “mortgages” in last sentence.
1964—Subsec. (b). Pub. L. 88–560, § 702, substituted “any mortgage under section 1720 of this title” for “any mortgage” and deleted proviso reading “Provided, That with respect to mortgages purchased under section 1719 of this title the principal obligation shall not exceed $20,000”.
Subsec. (c). Pub. L. 88–560, § 701(a), added subsec. (c).
1961—Subsec. (b). Pub. L. 87–70substituted “authorized, pursuant to commitments or otherwise, to purchase, lend (under section 1719 of this title) on the security of, service, sell, or otherwise deal in any mortgages which are insured” for “authorized to make commitments to purchase and to purchase, service, or sell, any residential or home mortgages (or participations therein) which are insured”, and “section 1715k of this title or subchapter VIII of this chapter for “section 1715k or 1748b of this title”, permitted the purchase of mortgages insured under section 1715e of this title and covering property located in an urban renewal area, and defined term “mortgage”.
1959—Subsec. (b). Pub. L. 86–372included within cl. (3) mortgages insured under section 1715k of this title, increased the limitation on the original principal obligation from $15,000 to $17,500, and established a limitation of not more than $20,000 with respect to mortgages purchased under section 1719 of this title.
1958—Subsec. (b). Pub. L. 85–857inserted “, chapter 37 of title 38” after “Servicemen’s Readjustment Act of 1944, as amended”.
1956—Subsec. (b). Act Aug. 7, 1956, substituted “(2)” for “and (2)”, “if” for “if (i)”; and “(3) the Association may not purchase any mortgage, except a mortgage insured under section 1748b of this title or a mortgage covering property located in Alaska, Guam, or Hawaii, if” for “or (ii)”.
1954—Act Aug. 2, 1954, amended section generally to recharter the Association, substituting provisions formerly covered in section 1716 of this title for provisions now covered by sections 1719 to 1721 of this title.
1953—Act June 30, 1953, struck out proviso at end of first sentence, which limited purchase of mortgages other than defense or disaster mortgages to $2,750,000,000.
1952—Act July 14, 1952, increased purchasing power of the Association from $2,750,000,000 to $3,650,000,000 but limited purchases of mortgages other than defense or disaster mortgages to $2,750,000,000.
1950—Act Apr. 20, 1950, substituted “$2,750,000,000” for “$2,500,000,000”.
1949—Joint Res. Oct. 25, 1949, substituted “$2,500,000,000” for “$1,500,000,000” in first sentence.
1948—Act July 1, 1948, amended section generally to make it applicable to the Association instead of to the former national mortgage associations, and increased the borrowing capacity from twenty times to forty times the capital and surplus.
1941—Act Mar. 28, 1941, inserted “and VI” in cl. (2).
1938—Act Feb. 3, 1938, among other changes, substituted “twenty times the amount of its paid-up capital and surplus” for “twelve times the aggregate par value of its outstanding capital stock”, and inserted last sentence and proviso.
1935—Act May 28, 1935, substituted “twelve times” for “ten times” in cl. (1).
Pub. L. 110–289, div. A, title I, § 1124(a)(3),July 30, 2008, 122 Stat. 2692, provided that: “The amendments made by paragraphs (1) and (2) of this subsection [amending this section] shall take effect upon the expiration of the date described in section 201(a) of the Economic Stimulus Act of 2008 (Public Law 110–185) [122 Stat. 619; probably means Dec. 31, 2008].”
Amendment by section 101(c)(3) ofPub. L. 95–557effective Oct. 1, 1978, see section 104 ofPub. L. 95–557, set out as a note under section 1709 of this title.
For effective date of amendment by Pub. L. 85–857, see section 2 ofPub. L. 85–857, set out as an Effective Date note preceding Part I of Title 38, Veterans’ Benefits.
Section 339(a)(2), (b)(2) ofPub. L. 96–399provided that when Federal National Mortgage Association submits its proposal to Secretary of Housing and Urban Development to implement authority granted by amendment of this section, Secretary of Housing and Urban Development shall, within 75 days, approve such proposal or transmit to Congress a report explaining why such proposal has not been approved.
Pub. L. 92–213, § 3,Dec. 22, 1971, 85 Stat. 775, as amended by Pub. L. 92–335, § 6,July 1, 1972, 86 Stat. 405; Pub. L. 92–503, § 2,Oct. 18, 1972, 86 Stat. 906; Pub. L. 93–85, § 3,Aug. 10, 1973, 87 Stat. 221; Pub. L. 93–117, § 4,Oct. 2, 1973, 87 Stat. 422, provided that when the Secretary of Housing and Urban Development determined that such action was necessary to avoid excessive discounts on federally insured or guaranteed mortgages, the Government National Mortgage Association could, until Oct. 1, 1974, issue commitments to purchase mortgages with original principal obligations not more than 50 per centum in excess of the limitations imposed by clause (3) of the proviso to the first sentence of section 302(b)(1) of the National Housing Act [subsec. (b)(1) of this section], and it could purchase the mortgages so committed to be purchased.
Section 9 ofPub. L. 89–429authorized Federal National Mortgage Association during fiscal year 1966 to sell (1) additional participations in Government Mortgage Liquidation Trust, and (2) participations in a trust to be established by Small Business Administration, each without regard to the provisions of subsec. (c)(4) of this section.
Trust Agreements With Administrator of Veterans’ Affairs
Section 6(a) ofPub. L. 89–429provided that: “Nothing in this Act [enacting section 1717a of this title and section 745 of Title 20, Education, amending this section and sections 1720, 1749, and 1757 of this title, section 1988 of Title 7, Agriculture, and section 743 of Title 20, and enacting material set out as notes under this section] shall be construed to repeal or modify the provisions of section 1820
(e) [now 3720(e)] of title 38, United States Code, respecting the authority of the Administrator of Veterans’ Affairs [now Secretary of Veterans Affairs].”
There are hereby transferred from the Reconstruction Finance Corporation to the Housing and Home Finance Administrator—
[Housing and Home Finance Agency lapsed and functions were transferred to Secretary of Housing and Urban Development, see section 9(c) ofPub. L. 89–174, Sept. 9, 1965, 79 Stat. 670, set out as a note under 42 U.S.C. 3531.]