Source: https://www.law.cornell.edu/uscode/text/12/1715z%E2%80%9320
Timestamp: 2018-04-20 03:17:11
Document Index: 461898889

Matched Legal Cases: ['§ 1715', '§\u202f1715', '§\u202f255', '§\u202f417', '§\u202f1066', '§\u202f2106', '§\u202f334', '§\u202f503', '§\u202f406', '§\u202f6', '§\u202f593', '§\u202f201', '§\u202f6074', '§\u202f131', '§\u202f2118', '§\u202f206', '§\u202f2', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f2118', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f2122', '§\u202f201', '§\u202f201', '§\u202f201', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f593', '§\u202f6', '§\u202f6', '§\u202f503', '§\u202f520', '§\u202f334', '§\u202f334', '§\u202f334', '§\u202f334', '§\u202f2106', '§\u202f1066', '§\u202f1066', '§\u202f201', '§\u202f593', '§\u202f201', '§\u202f417', '§\u202f593']

12 U.S. Code § 1715z–20 - Insurance of home equity conversion mortgages for elderly homeowners
§ 1715z–20.
Insurance of home equity conversion mortgages for elderly homeowners
(a) PurposeThe purpose of this section is to authorize the Secretary to carry out a program of mortgage insurance designed—
The terms “mortgagee”, “mortgagor”, “real estate,” [1] and “State” have the meanings given such terms in section 1707 of this title.
The term “home equity conversion mortgage” means a first mortgage which provides for future payments to the homeowner based on accumulated equity and which a housing creditor (as defined in section 3802(2) of this title) is authorized to make (A) under any law of the United States (other than section 3803 of this title) or applicable agency regulations thereunder; (B) in accordance with section 3803 of this title, notwithstanding any State constitution, law, or regulation; or (C) under any State constitution, law, or regulation.
(4)Mortgage.—The term “mortgage” means a first mortgage or first lien on real estate, in fee simple, a first or subordinate mortgage or lien on all stock allocated to a dwelling unit in a residential cooperative housing corporation, or a first mortgage or first lien on a leasehold—
(5)First mortgage.—
The term “first mortgage” means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate or a first or subordinate lien on all stock allocated to a dwelling unit in a residential cooperative housing corporation, under the laws of the State in which the real estate or dwelling unit is located, together with the credit instruments, if any, secured thereby.
(c) Insurance authorityThe Secretary may, upon application by a mortgagee, insure any home equity conversion mortgage eligible for insurance under this section and, upon such terms and conditions as the Secretary may prescribe, make commitments for the insurance of such mortgages prior to the date of their execution or disbursement to the extent that the Secretary determines such mortgages—
(d) Eligibility requirementsTo be eligible for insurance under this section, a mortgage shall—
(2) have been executed by a mortgagor who—
(B) has received adequate counseling, as provided in subsection (f), by an independent third party that is not, either directly or indirectly, associated with or compensated by a party involved in—
(7) provide that the homeowner shall not be liable for any difference between the net amount of the remaining indebtedness of the homeowner under the mortgage and the amount recovered by the mortgagee from—
the insurance benefits paid pursuant to subsection (i)(1)(C);
(9) provide for future payments to the mortgagor based on accumulated equity (minus any applicable fees and charges), according to the method that the mortgagor shall select from among the methods under this paragraph, by payment of the amount—
(e) Disclosures by mortgageeThe Secretary shall require each mortgagee of a mortgage insured under this section to make available to the homeowner—
at the time of the loan application, a written list of the names and addresses of third-party information sources who are approved by the Secretary as responsible and able to provide the information required by subsection (f);
(4) prior to loan closing, a statement of the projected total cost of the mortgage to the homeowner based on the projected total future loan balance (such cost expressed as a single average annual interest rate for at least 2 different appreciation rates for the term of the mortgage) for not less than 2 projected loan terms, as the Secretary shall determine, which shall include—
(f) Counseling services and information for mortgagorsThe Secretary shall provide or cause to be provided adequate counseling for the mortgagor, as described in subsection (d)(2)(B). Such counseling shall be provided by counselors that meet qualification standards and follow uniform counseling protocols. The qualification standards and counseling protocols shall be established by the Secretary within 12 months of July 30, 2008. The protocols shall require a qualified counselor to discuss with each mortgagor information which shall include—
(h) Administrative authorityThe Secretary may—
(1) Notwithstanding any other provision of law, and in order to further the purposes of the program authorized in this section, the Secretary shall take any action necessary—
to provide any mortgagee under this section with funds not to exceed the limitations in subsection (g) to which the mortgagee is entitled under the terms of the insured mortgage or ancillary contracts authorized in this section.
(2) Actions under paragraph (1) may include—
The Secretary may not insure a home equity conversion mortgage under this section unless such mortgage provides that the homeowner’s obligation to satisfy the loan obligation is deferred until the homeowner’s death, the sale of the home, or the occurrence of other events specified in regulations of the Secretary. For purposes of this subsection, the term “homeowner” includes the spouse of a homeowner. Section 1647(b) of title 15 and any implementing regulations issued by the Board of Governors of the Federal Reserve System shall not apply to a mortgage insured under this section.
The Secretary shall, by regulation, require that the mortgagee of a mortgage insured under this subsection, provide to the mortgagor, within an appropriate time period and in a manner established in such regulations, a good faith estimate of: (A) the total cost of the refinancing; and (B) the increase in the mortgagor’s principal limit as measured by the estimated initial principal limit on the mortgage to be insured under this subsection less the current principal limit on the home equity conversion mortgage that is being refinanced and insured under this subsection.
(3) Waiver of counseling requirementThe mortgagor under a mortgage insured under this subsection may waive the applicability, with respect to such mortgage, of the requirements under subsection (d)(2)(B) (relating to third party counseling), but only if—
(5) Actuarial studyNot later than 180 days after December 27, 2000, the Secretary shall conduct an actuarial analysis to determine the adequacy of the insurance premiums collected under the program under this subsection with respect to—
the establishment of a single national limit on the benefits of insurance under subsection (g) (relating to limitation on insurance authority); and
(1) In generalThe mortgagee and any other party that participates in the origination of a mortgage to be insured under this section shall—
(B) demonstrate to the Secretary that the mortgagee or other party maintains, or will maintain, firewalls and other safeguards designed to ensure that—
(r) [2] Limitation on origination feesThe Secretary shall establish limits on the origination fee that may be charged to a mortgagor under a mortgage insured under this section, which limitations shall—
(1) be equal to 2.0 percent of the maximum claim amount of the mortgage, up to a maximum claim amount of $200,000 plus 1 percent of any portion of the maximum claim amount that is greater than $200,000, unless adjusted thereafter on the basis of an analysis of—
(June 27, 1934, ch. 847, title II, § 255, as added Pub. L. 100–242, title IV, § 417(a), Feb. 5, 1988, 101 Stat. 1908; amended Pub. L. 100–628, title X, § 1066, Nov. 7, 1988, 102 Stat. 3275; Pub. L. 101–508, title II, § 2106, Nov. 5, 1990, 104 Stat. 1388–20; Pub. L. 101–625, title III, § 334(b)–(d), Nov. 28, 1990, 104 Stat. 4141, 4142; Pub. L. 102–389, title II, Oct. 6, 1992, 106 Stat. 1592; Pub. L. 102–550, title V, §§ 503(c)(2), 520, Oct. 28, 1992, 106 Stat. 3779, 3793; Pub. L. 104–99, title IV, § 406, Jan. 26, 1996, 110 Stat. 45; Pub. L. 104–120, § 6, Mar. 28, 1996, 110 Stat. 835; Pub. L. 105–276, title V, § 593(a)–(e)(1), Oct. 21, 1998, 112 Stat. 2654, 2655; Pub. L. 106–569, title II, § 201(a)(1), (b), (c)(1), Dec. 27, 2000, 114 Stat. 2948, 2950; Pub. L. 109–13, div. A, title VI, § 6074, May 11, 2005, 119 Stat. 300; Pub. L. 109–289, div. B, § 131, Sept. 29, 2006, 120 Stat. 1316; Pub. L. 110–289, div. B, title I, §§ 2118(b)(2), 2122(a)–(c), July 30, 2008, 122 Stat. 2835–2838; Pub. L. 111–22, div. A, title II, § 206, May 20, 2009, 123 Stat. 1654; Pub. L. 113–29, § 2, Aug. 9, 2013, 127 Stat. 509.)
[1]  So in original. The comma probably should follow the closed quotes.
[2]  So in original. No subsec. (q) has been enacted.
2013—Subsec. (h)(3). Pub. L. 113–29 added par. (3).
2009—Subsec. (b)(4)(B). Pub. L. 111–22 added subpar. (B) and struck out former subpar. (B), which read as follows: “under a lease having a period of not less than 10 years to run beyond the maturity date of the mortgage.”
2008—Subsec. (b)(2). Pub. L. 110–289, § 2122(a)(1), inserted “ ‘real estate,’ ” after “ ‘mortgagor’, ”.
Subsec. (b)(4). Pub. L. 110–289, § 2122(b)(1), in introductory provisions, inserted “a first or subordinate mortgage or lien” before “on all stock”, “unit” before “in a residential”, and “a first mortgage or first lien” before “on a leasehold”.
Subsec. (b)(5). Pub. L. 110–289, § 2122(b)(2), inserted “a first or subordinate lien on” before “all stock”.
Subsec. (d)(1). Pub. L. 110–289, § 2122(a)(2), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “have been made to a mortgagee approved by the Secretary as responsible and able to service the mortgage properly;”.
Subsec. (d)(2)(B). Pub. L. 110–289, § 2122(a)(3), amended subpar. (B) generally. Prior to amendment, subpar. (B) read as follows: “has received adequate counseling by a third party (other than the lender) as provided in subsection (f) of this section;”.
Subsec. (f). Pub. L. 110–289, § 2122(a)(4), substituted “Counseling services and information for mortgagors” for “Information services for mortgagors” in heading and amended introductory provisions generally. Prior to amendment, introductory provisions read as follows: “The Secretary shall provide or cause to be provided by entities other than the lender the information required in subsection (d)(2)(B) of this section. Such information shall be discussed with the mortgagor and shall include—”.
Subsec. (g). Pub. L. 110–289, § 2122(a)(5), substituted “limitation established under section 1454(a)(2) of this title for a 1-family residence” for “established under section 1709(b)(2) of this title for 1-family residences in the area in which the dwelling subject to the mortgage under this section is located”.
Subsec. (i)(2)(A). Pub. L. 110–289, § 2118(b)(2), substituted “Mutual Mortgage Insurance Fund” for “General Insurance Fund”.
Subsec. (l). Pub. L. 110–289, § 2122(a)(8), amended subsec. (l) generally. Prior to amendment, subsec. (l) related to funding for counseling and consumer education and outreach.
Pub. L. 110–289, § 2122(a)(6), (7), redesignated subsec. (m) as (l) and struck out former subsec. (l) which related to waiver of up-front premiums for mortgages to fund long-term care insurance.
Subsecs. (m) to (p). Pub. L. 110–289, § 2122(a)(9), added subsecs. (m) to (p). Former subsec. (m) redesignated (l).
Subsec. (r). Pub. L. 110–289, § 2122(c), added subsec. (r).
2006—Subsec. (g). Pub. L. 109–289 substituted “275,000” for “250,000”.
2005—Subsec. (g). Pub. L. 109–13 substituted “250,000” for “150,000”.
2000—Subsec. (b)(2). Pub. L. 106–569, § 201(b)(1), struck out “ ‘mortgage’,” before “ ‘mortgagee’,”.
Subsec. (b)(4), (5). Pub. L. 106–569, § 201(b)(2), added pars. (4) and (5).
Subsecs. (k) to (m). Pub. L. 106–569, § 201(a)(1), (c)(1), added subsecs. (k) and (l) and redesignated former subsec. (k) as (m).
1998—Pub. L. 105–276, § 593(d)(1), struck out “Demonstration program of” before “Insurance” in section catchline.
Subsec. (a). Pub. L. 105–276, § 593(d)(2), (3), struck out “demonstration” before “program” in introductory provisions, inserted “and” at end of par. (1), substituted a period for “; and” at end of par. (2), and struck out par. (3) which read as follows: “to require the evaluation of data to determine—
Subsec. (d)(2)(C), (D). Pub. L. 105–276, § 593(e)(1)(A), added subpar. (C) and redesignated former subpar. (C) as (D).
Subsec. (d)(11). Pub. L. 105–276, § 593(e)(1)(B)–(D), added par. (11).
Subsec. (f). Pub. L. 105–276, § 593(b), inserted concluding provisions.
Subsec. (g). Pub. L. 105–276, § 593(a), substituted “The aggregate number of mortgages insured under this section may not exceed 150,000.” for “No mortgage may be insured under this section after September 30, 2000, except pursuant to a commitment to insure issued on or before such date. The total number of mortgages insured under this section may not exceed 50,000.”
Subsec. (i)(1). Pub. L. 105–276, § 593(d)(2), struck out “demonstration” before “program” in introductory provisions.
Subsec. (k). Pub. L. 105–276, § 593(d)(4), (5), redesignated subsec. (l) as (k) and struck out heading and text of former subsec. (k), which had required interim report not later than Sept. 30, 1989, on design and implementation of demonstration program of insurance of home equity conversion mortgages for elderly homeowners, preliminary evaluation of program incorporating comments and recommendations not later than Mar. 30, 1992, and updated report and evaluation biennially thereafter, including analysis of repayment of home equity conversion mortgages during report period.
Subsec. (l). Pub. L. 105–276, § 593(d)(5), redesignated subsec. (l) as (k).
Pub. L. 105–276, § 593(c), added subsec. (l).
1996—Subsec. (d)(3). Pub. L. 104–120, § 6(c), amended par. (3) generally. Prior to amendment, par. (3) read as follows: “be secured by a dwelling that is designed principally for a 1-family residence and is occupied by the mortgagor;”.
Subsec. (g). Pub. L. 104–120, § 6(a), (b), substituted “2000” for “1996” and “50,000” for “30,000”.
Pub. L. 104–99 substituted “1996” for “1995” and “30,000” for “25,000”.
1992—Subsec. (g). Pub. L. 102–389 and Pub. L. 102–550, § 503(c)(2), amended subsec. (g) identically, substituting “for 1-family residences in the area in which the dwelling subject to the mortgage under this section is located” for “for a 1-family residence”.
Subsec. (j). Pub. L. 102–550, § 520, inserted at end “Section 1647(b) of title 15 and any implementing regulations issued by the Board of Governors of the Federal Reserve System shall not apply to a mortgage insured under this section.”
1990—Subsec. (d)(7)(A). Pub. L. 101–625, § 334(c), added subpar. (A) and struck out former subpar. (A) which read as follows: “the foreclosure sale; or”.
Subsec. (d)(9), (10). Pub. L. 101–625, § 334(b), added pars. (9) and (10).
Subsec. (e)(2). Pub. L. 101–625, § 334(d)(1), substituted “statement informing the homeowner that the liability of the homeowner under the mortgage is limited and” for “statement” and struck out “and” at end.
Subsec. (e)(4). Pub. L. 101–625, § 334(d)(2), (3), added par. (4).
Subsec. (g). Pub. L. 101–508, § 2106, substituted “September 30, 1995” for “September 30, 1991” and “may not exceed 25,000” for “may not exceed 2,500”.
1988—Subsec. (b)(3). Pub. L. 100–628, § 1066(a), made technical amendment to reference to section 3802(2) of this title to correct reference to corresponding provision of original act.
Subsec. (d)(3). Pub. L. 100–628, § 1066(b), struck out “and that has a value not to exceed the maximum dollar amount established by the Secretary under section 1709(b)(2) of this title for a 1-family residence” after “by the mortgagor”.
Pub. L. 106–569, title II, § 201(c)(2), Dec. 27, 2000, 114 Stat. 2951, provided that:
“The provisions of section 255(l) of the National Housing Act [former 12 U.S.C. 1715z–20(l)] (as added by paragraph (1) of this subsection) shall apply only to mortgages closed on or after April 1, 2001.”
Pub. L. 105–276, title V, § 593(f), Oct. 21, 1998, 112 Stat. 2655, provided that:
“This section [amending this section and enacting provisions set out as a note below] shall take effect on, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].”
Pub. L. 106–569, title II, § 201(a)(2), Dec. 27, 2000, 114 Stat. 2949, provided that:
“The Secretary shall issue any final regulations necessary to implement the amendments made by paragraph (1) of this subsection [amending this section], which shall take effect not later than the expiration of the 180-day period beginning on the date of the enactment of this Act [Dec. 27, 2000]. The regulations shall be issued after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section).”
Pub. L. 100–242, title IV, § 417(b), Feb. 5, 1988, 101 Stat. 1912, directed Secretary of Housing and Urban Development, not later than 6 months after Feb. 5, 1988, to consult with lenders, insurers, and organizations and individuals with expertise in home equity conversion in developing proposed regulations implementing this section and not later than 9 months after Feb. 5, 1988, to issue proposed regulations implementing this section.
Pub. L. 105–276, title V, § 593(e)(2), Oct. 21, 1998, 112 Stat. 2655, provided that:
The Secretary of Housing and Urban Development shall, by interim notice, implement the amendments made by paragraph (1) [amending this section] in an expeditious manner, as determined by the Secretary. Such notice shall not be effective after the date of the effectiveness of the final regulations issued under subparagraph (B) of this paragraph.
The Secretary shall, not later than the expiration of the 90-day period beginning on the date of the enactment of this Act [Oct. 21, 1998], issue final regulations to implement the amendments made by paragraph (1). Such regulations shall be issued only after notice and opportunity for public comment pursuant to the provisions of section 553 of title 5, United States Code (notwithstanding subsections (a)(2) and (b)(3)(B) of such section).”