12 U.s.c. 1713

§ 1712

TITLE 12—BANKS AND BANKING

1990—Subsec. (e). Pub. L. 101–508, § 2104, added subsec.
(e).
Subsecs. (f) to (h). Pub. L. 101–508, § 2105, added subsecs. (f) to (h).
1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’ wherever appearing in subsecs. (a) to (d) of
this section.
1954—Act Aug. 2, 1954, amended section generally to
eliminate the former group accounts and substitute
therefor a general surplus account and participating reserve account.
1953—Subsec. (c). Act June 30, 1953, inserted sentence
relating to semi-annual transfer of group accounts,
and, in remainder of section, changed the provisions relating to settlement of accounts.
1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’
for ‘‘Administrator’’ wherever appearing.
1939—Subsec. (b). Act June 3, 1939, inserted ‘‘prior to
July 1, 1939’’.
1938—Subsecs. (a) to (f). Act Feb. 3, 1938, amended
provisions generally, and among other changes, struck
out subsec. (f).
1935—Subsec. (f). Act May 28, 1935, substituted ‘‘annual premium charge’’ for ‘‘premium charge’’ in first
sentence.
EXCEPTION TO STATUTE OF LIMITATIONS
Section 508(b) of Pub. L. 102–550 provided that: ‘‘Notwithstanding the 6-year limitation on distribution of
shares of the Participating Reserve Account under section 205(c) of the National Housing Act [12 U.S.C.
1711(c)], the Secretary shall distribute a share to an
otherwise eligible mortgagor in accordance with section 205(c), if the mortgagor applies for payment of the
share within 1 year after the date of enactment of this
Act [Oct. 28, 1992] in accordance with procedures in effect on such date.’’

§ 1712. Investment of funds
Moneys in the Fund not needed for the current
operations of the Department of Housing and
Urban Development related to insurance under
section 1709 of this title shall be deposited with
the Treasurer of the United States to the credit
of the Fund, or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the
United States or any agency of the United
States: Provided, That such moneys shall to the
maximum extent feasible be invested in such
bonds or other obligations the proceeds of which
will be used to directly support the residential
mortgage market. The Secretary may, with the
approval of the Secretary of the Treasury, purchase in the open market debentures issued
under the provisions of section 1710 of this title.
Such purchases shall be made at a price which
will provide an investment yield of not less than
the yield obtainable from other investments authorized by this section. Debentures so purchased shall be canceled and not reissued, and
the several group accounts to which such debentures have been charged shall be charged with
the amounts used in making such purchases.
(June 27, 1934, ch. 847, title II, § 206, 48 Stat. 1252;
Feb. 3, 1938, ch. 13, § 3, 52 Stat. 16; Apr. 20, 1950,
ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19,
§ 1(a)(1), (3), (e), May 25, 1967, 81 Stat. 17, 18; Pub.
L. 91–609, title I, § 117(a), Dec. 31, 1970, 84 Stat.
1774.)
AMENDMENTS
1970—Pub. L. 91–609 provided for guarantee as to principal and interest by any agency of the United States

Page 552

and for investment of monies in bonds or other obligations the proceeds of which will be used to directly support the residential mortgage market.
1967—Pub. L. 90–19 substituted ‘‘Department of Housing and Urban Development’’ and ‘‘Secretary’’ for
‘‘Federal Housing Administration’’ and ‘‘Commissioner’’, respectively, and inserted ‘‘related to insurance under section 1709 of this title’’ before ‘‘shall be
deposited’’.
1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’
for ‘‘Administrator’’.
1938—Act Feb. 3, 1938, among other changes, inserted
‘‘or in bonds or other obligations guaranteed as to principal and interest by’’ in first sentence, and inserted
third sentence.

§ 1712a. Indexing of FHA multifamily housing
loan limits
(a) Method of indexing
The dollar amounts set forth in—
(1) section 1713(c)(3)(A) of this title;
(2) section 1715e(b)(2)(A) of this title;
(3) section 1715k(d)(3)(B)(iii)(I) of this title;
(4) section 1715l(d)(3)(ii)(I) of this title;
(5) section 1715l(d)(4)(ii)(I) of this title;
(6) section 1715v(c)(2)(A) of this title; and
(7) section 1715y(e)(3)(A) of this title;
(collectively hereinafter referred to as the ‘‘Dollar Amounts’’) shall be adjusted annually (commencing in 2004) on the effective date of the Federal Reserve Board’s adjustment of the $400 figure in the Home Ownership and Equity Protection Act of 1994 (HOEPA). The adjustment of the
Dollar Amounts shall be calculated using the
percentage change in the Consumer Price Index
for All Urban Consumers (CPI–U) as applied by
the Federal Reserve Board for purposes of the
above-described HOEPA adjustment.
(b) Notification
The Federal Reserve Board on a timely basis
shall notify the Secretary, or his designee, in
writing of the adjustment described in subsection (a) of this section and of the effective
date of such adjustment in order to permit the
Secretary to undertake publication in the Federal Register of corresponding adjustments to
the Dollar Amounts. The dollar amount of any
adjustment shall be rounded to the next lower
dollar.
(June 27, 1934, ch. 847, title II, § 206A, as added
Pub. L. 107–326, § 5(a), Dec. 4, 2002, 116 Stat. 2794.)
REFERENCES IN TEXT
The Home Ownership and Equity Protection Act of
1994, referred to in subsec. (a), is subtitle B (§§ 151–158)
of title I of Pub. L. 103–325, Sept. 23, 1994, 108 Stat. 2190,
which enacted sections 1639 and 1648 of Title 15, Commerce and Trade, amended sections 1602, 1604, 1610, 1640,
1641, and 1647 of Title 15, and enacted provisions set out
as notes under sections 1601 and 1602 of Title 15. For
complete classification of this Act to the Code, see
Short Title of 1994 Amendment note set out under section 1601 of Title 15 and Tables.

§ 1713. Rental housing insurance
(a) Definitions
As used in this section—
(1) The term ‘‘mortgage’’ means a first mortgage on real estate in fee simple, or on the interest of either the lessor or lessee thereof (A)
under a lease for not less than ninety-nine

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TITLE 12—BANKS AND BANKING

years which is renewable or (B) under a lease
having a period of not less than fifty years to
run from the date the mortgage was executed,
upon which there is located or upon which
there is to be constructed a building or buildings designed principally for residential use,
or upon which there is located or to be constructed facilities for manufactured homes,
and the term ‘‘first mortgage’’ means such
classes of first liens as are commonly given to
secure advances (including but not being limited to advances during construction) on, or
the unpaid purchase price of, real estate under
the laws of the State, in which the real estate
is located, together with the credit instrument
or instruments, if any, secured thereby, and
may be in the form of trust mortgages or
mortgage indentures or deeds of trust securing
notes, bonds, or other credit instruments.
(2) The term ‘‘mortgagee’’ means the original lender under a mortgage, and its successors and assigns, and includes the holders of
credit instruments issued under a trust mortgage or deed of trust pursuant to which such
holders act by and through a trustee therein
named.
(3) The term ‘‘mortgagor’’ means the original borrower under a mortgage and its successors and assigns.
(4) The term ‘‘maturity date’’ means the
date on which the mortgage indebtedness
would be extinguished if paid in accordance
with the periodic payments provided for in the
mortgage.
(5) The term ‘‘slum or blighted area’’ means
any area where dwellings predominate which,
by reason of dilapidation, overcrowding, faulty
arrangement or design, lack of ventilation,
light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals.
(6) The term ‘‘rental housing’’ means housing, the occupancy of which is permitted by
the owner thereof in consideration of the payment of agreed charges, whether or not, by the
terms of the agreement, such payment over a
period of time will entitle the occupant to the
ownership of the premises or space in a manufactured home court or park properly arranged
and equipped to accommodate manufactured
homes.
(7) The term ‘‘State’’ includes the several
States, and Puerto Rico, the District of Columbia, Guam, the Trust Territory of the Pacific Islands, American Samoa, and the Virgin
Islands.
(b) Insurance of additional mortgages
In addition to mortgages insured under section 1709 of this title, the Secretary is authorized to insure mortgages as defined in this section (including advances on such mortgages during construction) which cover property held
by—
(1) Federal or State instrumentalities, municipal corporate instrumentalities of one or
more States, or limited dividend or redevelopment or housing corporations restricted by
Federal or State laws or regulations of State
banking or insurance departments as to rents,
charges, capital structure, rate of return, or
methods of operation; or

§ 1713

(2) any other mortgagor approved by the
Secretary. The Secretary may, in the Secretary’s discretion, require any such mortgagor to be regulated or restricted as to rents or
sales, charges, capital structure, rate of return, and methods of operation so as to provide reasonable rentals to tenants and a reasonable return on the investment. Any such
regulations or restrictions shall continue for
such period or periods as the Secretary, in the
Secretary’s discretion, may require, including
until the termination of all obligations of the
Secretary under the insurance and during such
further period of time as the Secretary shall
be the owner, holder, or reinsurer of the mortgage. The Secretary may make such contracts
with and acquire, for not to exceed $100, such
stock or interest in the mortgagor as he may
deem necessary to render effective any such
regulations or restrictions. The stock or interest acquired by the Secretary shall be paid for
out of the General Insurance Fund, and shall
be redeemed by the mortgagor at par upon the
termination of all obligations of the Secretary
under the insurance.
The insurance of mortgages under this section
is intended to facilitate particularly the production of rental accommodations, at reasonable
rents, of design and size suitable for family living. The Secretary is, therefore, authorized in
the administration of this section to take action, by regulation or otherwise, which will direct the benefits of mortgage insurance hereunder primarily to those projects which make
adequate provision for families with children,
and in which every effort has been made to
achieve moderate rental charges.
Notwithstanding any other provisions of this
section, the Secretary may not insure any mortgage under this section (except a mortgage with
respect to a manufactured home park designed
exclusively for occupancy by elderly persons)
unless the mortgagor certifies under oath that
in selecting tenants for the property covered by
the mortgage he will not discriminate against
any family by reason of the fact that there are
children in the family, and that he will not sell
the property while the insurance is in effect unless the purchaser so certifies, such certification
to be filed with the Secretary. Violation of any
such certification shall be a misdemeanor punishable by a fine of not to exceed $500.
(c) Eligibility for insurance; mortgage limits
To be eligible for insurance under this section
a mortgage on any property or project shall involve a principal obligation in an amount—
(1) Repealed. Pub. L. 93–383, title III,
§ 304(a)(1), Aug. 22, 1974, 88 Stat. 677.
(2) Not to exceed 90 per centum of the estimated value of the property or project (when
the proposed improvements are completed):
Provided, That this limitation shall not apply
to mortgages on housing in Alaska or in
Guam, but such a mortgage may involve a
principal obligation in an amount not to exceed 90 per centum of the amount which the
Secretary estimates will be the replacement
cost of the property or project when the proposed improvements are completed (the value
of the property or project as such term is used

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TITLE 12—BANKS AND BANKING

in this paragraph may include the land, the
proposed physical improvements, utilities
within the boundaries of the property or
project, architect’s fees, taxes, and interest
accruing during construction, and other miscellaneous charges incident to construction
and approved by the Secretary): And provided
further, That nothing contained in this section
shall preclude the insurance of mortgages covering existing construction located in slum or
blighted areas, as defined in paragraph (5) of
subsection (a) of this section, and the Secretary may require such repair or rehabilitation work to be completed as is, in his discretion, necessary to remove conditions detrimental to safety, health, or morals; and
(3)(A) Not to exceed, for such part of the
property or project as may be attributable to
dwelling use (excluding exterior land improvements as defined by the Secretary), $38,025 per
family unit without a bedroom, $42,120 per
family unit with one bedroom, $50,310 per family unit with two bedrooms, $62,010 per family
unit with three bedrooms, and $70,200 per family unit with four or more bedrooms, or not to
exceed $17,460 per space; except that as to
projects to consist of elevator type structures
the Secretary may in his discretion, increase
the dollar amount limitations per family unit
to not to exceed $43,875 per family unit without a bedroom, $49,140 per family unit with one
bedroom, $60,255 per family unit with two bedrooms, $75,465 per family unit with three bedrooms, and $85,328 per family unit with four or
more bedrooms, as the case may be, to compensate for the higher costs incident to the
construction of elevator-type structures of
sound standards of construction and design;
(B) the Secretary may, by regulation, increase any of the dollar amount limitations in
subparagraph (A) (as such limitations may
have been adjusted in accordance with section
1712a of this title) by not to exceed 170 percent
in any geographical area where the Secretary
finds that cost levels so require and by not to
exceed 170 percent, or 215 percent in high cost
areas, where the Secretary determines it necessary on a project-by-project basis, but in no
case may any such increase exceed 90 percent
where the Secretary determines that a mortgage purchased or to be purchased by the Government National Mortgage Association in implementing its special assistance functions
under section 1720 1 of this title (as such section existed immediately before November 30,
1983) is involved. Notwithstanding any other
provision of this paragraph, the amount which
may be insured under this section may be increased by up to 20 percent if such increase is
necessary to account for the increased cost of
the project due to the installation therein of a
solar energy system (as defined in subparagraph (3) of the last paragraph of section
1703(a) of this title) or residential energy conservation measures (as defined in section
8211(11)(A) through (G) and (I) of title 42) 1 in
cases where the Secretary determines that
such measures are in addition to those required under the minimum property standards
1 See

References in Text note below.

Page 554

and will be cost-effective over the life of the
measure.
The mortgage shall provide for complete amortization by periodic payments (unless otherwise approved by the Secretary) within such
term as the Secretary shall prescribe, and shall
bear interest at such rate as may be agreed upon
by the mortgagor and the mortgagee. The Secretary may consent to the release of a part or
parts of the mortgaged property from the lien of
the mortgage upon such terms and conditions as
he may prescribe and the mortgage may provide
for such release. No mortgage shall be accepted
for insurance under this section or section
1715a 1 of this title unless the Secretary finds
that the property or project, with respect to
which the mortgage is executed, is economically
sound. Such property or project may include
five or more family units and may include such
commercial and community facilities as the
Secretary deems adequate to serve the occupants.
(d) Premium, appraisal, and inspection charges
The Secretary shall collect a premium charge
for the insurance of mortgages under this section which shall be payable annually in advance
by the mortgagee, either in cash or in debentures issued by the Secretary under any subchapter and section of this chapter, except debentures of the Mutual Mortgage Insurance
Fund, or of the Cooperative Management Housing Insurance Fund at par plus accrued interest.
In addition to the premium charge herein provided for the Secretary is authorized to charge
and collect such amounts as he may deem reasonable for the appraisal of a property or project
offered for insurance and for the inspection of
such property or project during construction:
Provided, That such charges for appraisal and inspection shall not aggregate more than 1 per
centum of the original principal face amount of
the mortgage.
(e) Adjusted premium charge on payment of
mortgage
In the event that the principal obligation of
any mortgage accepted for insurance under this
section is paid in full prior to the maturity date,
the Secretary is authorized in his discretion to
require the payment by the mortgagee of an adjusted premium charge in such amount as the
Secretary determines to be equitable, but not in
excess of the aggregate amount of the premium
charges that the mortgagee would otherwise
have been required to pay if the mortgage had
continued to be insured until such maturity
date.
(f) Repealed. Pub. L. 89–117, title XI, § 1108(e)(3),
Aug. 10, 1965, 79 Stat. 504
(g) Payment of insurance after default
The failure of the mortgagor to make any payment due under or provided to be paid by the
terms of a mortgage insured under this section
shall be considered a default under such mortgage and, if such default continues for a period
of thirty days, the mortgagee shall be entitled
to receive the benefits of the insurance as hereinafter provided, upon assignment, transfer, and
delivery to the Secretary, within a period and in

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accordance with rules and regulations to be prescribed by the Secretary of (1) all rights and interests arising under the mortgage so in default;
(2) all claims of the mortgagee against the mortgagor or others, arising out of the mortgage
transactions; (3) all policies of title or other insurance or surety bonds or other guaranties and
any and all claims thereunder; (4) any balance of
the mortgage loans not advanced to the mortgagor; (5) any cash or property held by the mortgagee, or to which it is entitled, as deposits made
for the account of the mortgagor and which have
not been applied in reduction of the principal of
the mortgage indebtedness; and (6) all records,
documents, books, papers, and accounts relating
to the mortgage transactions. Upon such assignment, transfer, and delivery the obligation of
the mortgagee to pay the premium charges for
mortgage insurance shall cease, and the Secretary shall issue to the mortgagee a certificate
of claim as provided in subsection (h) of this section, and debentures having a par value equal to
the original principal face amount of the mortgage plus such amount as the mortgagee may
have paid for (A) taxes, special assessments, and
water rates, which are liens prior to the mortgage; (B) insurance on the property; and (C) reasonable expenses for the completion and preservation of the property and any mortgage insurance premiums paid after default, less the sum
of (i) that part of the amount of the principal
obligation that has been repaid by the mortgagor, (ii) an amount equivalent to 1 per centum of
the unpaid amount of such principal obligation,
and (iii) any net income received by the mortgagee from the property: Provided, That the mortgagee in the event of a default under the mortgage may, at its option and in accordance with
regulations of, and in a period to be determined
by, the Secretary, proceed to foreclose on and
obtain possession of or otherwise acquire such
property from the mortgagor after default, and
receive the benefits of the insurance as herein
provided, upon (1) the prompt conveyance to the
Secretary of title to the property which meets
the requirements of the rules and regulations of
the Secretary in force at the time the mortgage
was insured and which is evidenced in the manner prescribed by such rules and regulations,
and (2) the assignment to him of all claims of
the mortgagee against the mortgagor or others,
arising out of the mortgage transaction or foreclosure proceedings, except such claims that
may have been released with the consent of the
Secretary. Upon such conveyance and assignment, the obligation of the mortgagee to pay
the premium charges for insurance shall cease
and the mortgagee shall be entitled to receive
the benefits of the insurance as provided in this
subsection, except that in such event the 1 per
centum deduction, set out in (ii) hereof, shall
not apply. Notwithstanding any other provision
of this chapter, upon receipt, after September 2,
1964, of an application for insurance benefits on
a mortgage insured under this chapter, the Secretary may terminate the mortgagee’s obligation to pay premium charges on the mortgage.
(h) Certificate of claim; division of excess proceeds
The certificate of claim issued under this section shall be for an amount which the Secretary

§ 1713

determines to be sufficient, when added to the
face value of the debentures issued and the cash
adjustment paid to the mortgagee, to equal the
amount which the mortgagee would have received if, on the date of the assignment, transfer
and delivery to the Secretary provided for in
subsection (g) of this section, the mortgagor had
extinguished the mortgage indebtedness by payment in full of all obligations under the mortgage and a reasonable amount for necessary expenses incurred by the mortgagee in connection
with the foreclosure proceedings, or the acquisition of the mortgaged property otherwise, and
the conveyance thereof to the Secretary. Each
such certificate of claim shall provide that there
shall accrue to the holder of such certificate
with respect to the face amount of such certificate, an increment at the rate of 3 per centum
per annum which shall not be compounded. If
the net amount realized from the mortgage, and
all claims in connection therewith, so assigned,
transferred, and delivered, and from the property covered by such mortgage and all claims in
connection with such property, after deducting
all expenses incurred by the Secretary in handling, dealing with, acquiring title to, and disposing of such mortgage and property and in
collecting such claims, exceeds the face value of
the debentures issued and the cash adjustment
paid to the mortgagee plus all interest paid on
such debentures, such excess shall be divided as
follows:
(1) If such excess is greater than the total
amount payable under the certificate of claim
issued in connection with such property, the
Secretary shall pay to the holder of such certificate the full amount so payable, and any
excess remaining thereafter shall be retained
by the Secretary and credited to the General
Insurance Fund; and
(2) If such excess is equal to or less than the
total amount payable under such certificate of
claim, the Secretary shall pay to the holder of
such certificate the full amount of such excess.
(i) Debentures; execution; negotiability; terms;
tax exemptions
Debentures issued under this section shall be
executed in the name of the General Insurance
Fund as obligor, shall be negotiable, and, if in
book entry form, transferable, in the manner described by the Secretary in regulations, and
shall be dated as of the date of default as determined in subsection (g) of this section, except
that debentures issued pursuant to the provisions of section 1715k(f), section 1715l(g), and section 1715x of this title may be dated as of the
date the mortgage is assigned (or the property is
conveyed) to the Secretary and shall bear interest from such date. They shall bear interest at
a rate established by the Secretary pursuant to
section 1715o of this title payable semiannually
on the 1st day of January and the 1st day of July
of each year, and shall mature twenty years
after the date thereof. Such debentures as are issued in exchange for mortgages insured after
February 3, 1938, shall be exempt, both as to
principal and interest, from all taxation (except
surtaxes, estate, inheritance, and gift taxes)
now or hereafter imposed by the United States,

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TITLE 12—BANKS AND BANKING

by any Territory, dependency, or possession
thereof, or by any State, county, municipality,
or local taxing authority. They shall be paid out
of the General Insurance Fund which shall be
primarily liable therefor, and they shall be fully
and unconditionally guaranteed as to principal
and interest by the United States, and, in the
case of debentures issued in certificated registered form, such guaranty shall be expressed
on the face of the debentures. In the event the
General Insurance Fund fails to pay upon demand, when due, the principal of or interest on
any debentures so guaranteed, the Secretary of
the Treasury shall pay to the holders the
amount thereof which is authorized to be appropriated out of any money in the Treasury not
otherwise appropriated, and thereupon, to the
extent of the amount so paid, the Secretary of
the Treasury shall succeed to all the rights of
the holders of such debentures.
(j) Debentures; form and amounts
Debentures issued under this section—
(1) shall be in such form and amounts;
(2) shall be subject to such terms and conditions;
(3) shall include such provisions for redemption, if any, as may be prescribed by the Secretary of Housing and Urban Development,
with the approval of the Secretary of the
Treasury; and
(4) may be in book entry or certificated registered form, or such other form as the Secretary of Housing and Urban Development
may prescribe in regulations.
(k) Acquisition of property by conveyance or
foreclosure
The Secretary is authorized either to (1) acquire possession of and title to any property,
covered by a mortgage insured under this section and assigned to him, by voluntary conveyance in extinguishment of the mortgage indebtedness, or (2) institute proceedings for foreclosure on the property covered by any such insured mortgage and prosecute such proceedings
to conclusion. The Secretary at any sale under
foreclosure may, in his discretion, for the protection of the General Insurance Fund, bid any
sum up to but not in excess of the total unpaid
indebtedness secured by the mortgage, plus
taxes, insurance, foreclosure costs, fees, and
other expenses, and may become the purchaser
of the property at such sale. In determining the
amount to be bid, the Secretary shall act consistently with the goal established in section
1701z–11(a)(1) of this title. The Secretary is authorized to pay from the General Insurance
Fund such sums as may be necessary to defray
such taxes, insurance, costs, fees, and other expenses in connection with the acquisition or
foreclosure of property under this section. Pending such acquisition by voluntary conveyance or
by foreclosure, the Secretary is authorized, with
respect to any mortgage assigned to him under
the provisions of subsection (g) of this section,
to exercise all the rights of a mortgagee under
such mortgage, including the right to sell such
mortgage, and to take such action and advance
such sums as may be necessary to preserve or
protect the lien of such mortgage.

Page 556

(l) Handling and disposal of property; settlement
of claims
Notwithstanding any other provisions of law
relating to the acquisition, handling, or disposal
of real and other property by the United States,
the Secretary shall also have power, for the protection of the interests of the General Insurance
Fund, to pay out of the General Insurance Fund
all expenses or charges in connection with, and
to deal with, complete, reconstruct, rent, renovate, modernize, insure, make contracts for the
management of, or establish suitable agencies
for the management of, or sell for cash or credit
or lease in his discretion, any property acquired
by him under this section, and notwithstanding
any other provision of law, the Secretary shall
also have power to pursue to final collection by
way of compromise or otherwise all claims assigned and transferred to him in connection
with the assignment, transfer, and delivery provided for in this section, and at any time, upon
default, to foreclose on any property secured by
any mortgage assigned and transferred to or
held by him: Provided, That section 6101 of title
41 shall not be construed to apply to any contract for hazard insurance, or to any purchase or
contract for services or supplies on account of
such property if the amount thereof does not exceed $1,000.
(m) Repealed. Pub. L. 89–117, title XI, § 1108(e)(3),
Aug. 10, 1965, 79 Stat. 504
(n) Default or payment; rights of parties
In the event that a mortgage insured under
this section becomes in default through failure
of the mortgagor to make any payment due
under or provided to be paid by the terms of the
mortgage and such mortgage continues in default for a period of thirty days, but the mortgagee does not foreclose on or otherwise acquire
the property, or does not assign and transfer
such mortgage and the credit instrument secured thereby to the Secretary, in accordance
with subsection (g) of this section, and the Secretary is given written notice thereof, or in the
event that the mortgagor pays the obligation
under the mortgage in full prior to the maturity
thereof, and the mortgagee pays any adjusted
premium charge required under the provisions of
subsection (e) of this section, and the Secretary
is given written notice by the mortgagee of the
payment of such obligation, the obligation to
pay the annual premium charge for insurance
shall cease, and all rights of the mortgagee and
the mortgagor under this section shall terminate as of the date of such notice.
(o) Reissue of prior insurance
The Secretary, with the consent of the mortgagee and the mortgagor of a mortgage insured
under this section prior to February 3, 1938,
shall be empowered to reissue such mortgage insurance in accordance with the provisions of
this section as amended by the National Housing
Act Amendments of 1938, and any such insurance
not so reissued shall not be affected by the enactment of such Act.

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(p) Repealed. Pub. L. 89–117, title XI, § 1108(e)(3),
Aug. 10, 1965, 79 Stat. 504
(q) Repealed. Pub. L. 85–104, title I, § 111, July 12,
1957, 71 Stat. 297
(r) Service charge for mortgages assigned to and
held by the Secretary
Notwithstanding any other provision of this
chapter, the Secretary is authorized to include
in any mortgage insured under any subchapter
of this chapter after September 23, 1959, a provision requiring the mortgagor to pay a service
charge to the Secretary in the event such mortgage is assigned to and held by the Secretary.
Such service charge shall not exceed the amount
prescribed by the Secretary for mortgage insurance premiums applicable to such mortgage.
(June 27, 1934, ch. 847, title II, § 207, 48 Stat. 1252;
Aug. 23, 1935, ch. 614, title III, § 344(d), 49 Stat.
722; Feb. 3, 1938, ch. 13, § 3, 52 Stat. 16; June 3,
1939, ch. 175, § 12, 53 Stat. 807; Mar. 28, 1941, ch. 31,
§ 4(b), 55 Stat. 62; July 1, 1948, ch. 784, § 6, 62 Stat.
1209; Aug. 10, 1948, ch. 832, title I, § 101 (m–p, r),
62 Stat. 1273, 1274; Apr. 20, 1950, ch. 94, title I,
§§ 106–112, 122, 64 Stat. 52–54, 59; Sept. 1, 1951, ch.
378, title VI, §§ 604(b), 605, 65 Stat. 314; July 14,
1952, ch. 723, § 10(a)(2), 66 Stat. 603; June 30, 1953,
ch. 170, § 5, 67 Stat. 122; Aug. 2, 1954, ch. 649, title
I, §§ 112(b), 115–117, 68 Stat. 593–595; Aug. 11, 1955,
ch. 783, title I, § 102(b), (c), 69 Stat. 635; Aug. 7,
1956, ch. 1029, title I, §§ 103, 104(b), (c), 70 Stat.
1092; Pub. L. 85–104, title I, §§ 108(b), 109–111, July
12, 1957, 71 Stat. 297; Pub. L. 86–70, § 10(a), (b),
June 25, 1959, 73 Stat. 142; Pub. L. 86–372, title I,
§ 104, Sept. 23, 1959, 73 Stat. 655; Pub. L. 86–624,
§ 6, July 12, 1960, 74 Stat. 411; Pub. L. 87–70, title
VI, § 607, June 30, 1961, 75 Stat. 178; Pub. L.
88–560, title I, §§ 105(b), 106, 107(a), 108, Sept. 2,
1964, 78 Stat. 772, 774, 776; Pub. L. 89–117, title II,
§ 207(a), title XI, § 1108(e), Aug. 10, 1965, 79 Stat.
467, 504; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81
Stat. 17; Pub. L. 90–301, § 3(b), May 7, 1968, 82
Stat. 114; Pub. L. 91–152, title I, §§ 103(a), (b),
113(b), title IV, § 403(c)(2), Dec. 24, 1969, 83 Stat.
380, 383, 395; Pub. L. 93–383, title III, §§ 303(a),
304(a), Aug. 22, 1974, 88 Stat. 676, 677; Pub. L.
94–173, § 3, Dec. 23, 1975, 89 Stat. 1027; Pub. L.
94–375, § 8(a), (b)(1), Aug. 3, 1976, 90 Stat. 1071;
Pub. L. 95–557, title III, § 311(a), Oct. 31, 1978, 92
Stat. 2098; Pub. L. 95–619, title II, § 248(b), Nov. 9,
1978, 92 Stat. 3235; Pub. L. 96–153, title III,
§§ 313(b), 314, Dec. 21, 1979, 93 Stat. 1117; Pub. L.
96–399, title III, §§ 308(c)(1), 310(a), Oct. 8, 1980, 94
Stat. 1640, 1641; Pub. L. 97–35, title III, §§ 338(b),
339B(a), (c), Aug. 13, 1981, 95 Stat. 416, 417; Pub.
L. 97–377, title I, § 101(g), Dec. 21, 1982, 96 Stat.
1908; Pub. L. 98–181, title IV, §§ 404(b)(4), 407(c),
431(a), 435, 446(a), Nov. 30, 1983, 97 Stat. 1209, 1211,
1220, 1222, 1228; Pub. L. 98–479, title II, § 204(a)(3),
Oct. 17, 1984, 98 Stat. 2232; Pub. L. 100–242, title
I, § 182, title IV, § 426(a), (h), Feb. 5, 1988, 101 Stat.
1871, 1915, 1916; Pub. L. 102–550, title V, §§ 509(a),
516(b), Oct. 28, 1992, 106 Stat. 3782, 3790; Pub. L.
103–233, title III, § 306, Apr. 11, 1994, 108 Stat. 373;
Pub. L. 107–73, title II, § 213(a), Nov. 26, 2001, 115
Stat. 676; Pub. L. 107–326, § 5(b)(1), Dec. 4, 2002,
116 Stat. 2794; Pub. L. 108–186, title III,
§ 302(b),(c)(1), Dec. 16, 2003, 117 Stat. 2692; Pub. L.
110–161, div. K, title II, § 221(1), Dec. 26, 2007, 121
Stat. 2436.)

REFERENCES IN TEXT
Section 1715a of this title, referred to in subsec. (c),
which related to additional housing insurance, was repealed by act June 3, 1939, ch. 175, § 13, 53 Stat. 807.
Section 1720 of this title, referred to in subsec.
(c)(3)(B), was repealed by Pub. L. 98–181, title IV,
§ 483(a), Nov. 30, 1983, 97 Stat. 1240.
Section 8211 of title 42, referred to in subsec. (c)(3)(B),
was omitted from the Code pursuant to section 8229 of
Title 42, The Public Health and Welfare, which terminated authority under that section on June 30, 1989.
This chapter, referred to in subsecs. (d), (g) and (r),
was in the original ‘‘this Act’’, meaning act June 27,
1934, ch. 847, 48 Stat. 1246, which is classified principally
to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see Tables.
The National Housing Act Amendments of 1938, referred to in subsec. (o), is act Feb. 3, 1938, ch. 13, 42
Stat. 8, as amended, section 3 of which amended this
section generally. For complete classification of this
Act to the Code, see section 1701a of this title and
Tables.
CODIFICATION
In subsec. (l), ‘‘section 6101 of title 41’’ substituted for
‘‘section 3709 of the Revised Statutes’’ on authority of
Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which
Act enacted Title 41, Public Contracts.
References to ‘‘mobile homes’’, wherever appearing in
text, were changed to ‘‘manufactured homes’’ in view of
the amendment of the National Housing Act by section
308(c)(1) of Pub. L. 96–399 requiring the substitution of
‘‘manufactured home’’ for ‘‘mobile home’’ wherever appearing in the National Housing Act, and section
339B(c) of Pub. L. 97–35 (set out as a note under section
1703 of this title) providing that the terms ‘‘mobile
home’’ and ‘‘manufactured home’’ shall be deemed to
include the terms ‘‘mobile homes’’ and ‘‘manufactured
homes’’, respectively.
AMENDMENTS
2007—Subsec. (c)(3)(B). Pub. L. 110–161 substituted
‘‘170 percent’’ for ‘‘140 percent’’ after ‘‘not to exceed’’ in
two places and ‘‘215 percent in high cost areas’’ for ‘‘170
percent in high cost areas’’.
2003—Subsec. (c)(3)(A). Pub. L. 108–186, § 302(c)(1), substituted ‘‘$17,460’’ for ‘‘$11,250’’.
Subsec. (c)(3)(B). Pub. L. 108–186, § 302(b), substituted
‘‘140 percent in’’ for ‘‘110 percent in’’ and inserted ‘‘, or
170 percent in high cost areas,’’ after ‘‘and by not to exceed 140 percent’’.
2002—Subsec. (c)(3). Pub. L. 107–326, § 5(b)(1)(B), which
directed substitution of ‘‘(B) the Secretary may, by
regulation, increase any of the dollar amount limitations in subparagraph (A) (as such limitations may
have been adjusted in accordance with section 1712a of
this title)’’ for ‘‘and accept that the Secretary’’
through ‘‘in this paragraph’’, was executed by making
the substitution for ‘‘and except that the Secretary
may, by regulation, increase any of the foregoing dollar
amount limitations contained in this paragraph’’, to
reflect the probable intent of Congress.
Pub. L. 107–326, § 5(b)(1)(A), inserted subpar. (A) designation after ‘‘(3)’’.
2001—Subsec. (c)(3). Pub. L. 107–73 substituted
‘‘$38,025’’, ‘‘$42,120’’, ‘‘$50,310’’, ‘‘$62,010’’, and ‘‘$70,200’’
for ‘‘$30,420’’, ‘‘$33,696’’, ‘‘$40,248’’, ‘‘$49,608’’, and
‘‘$56,160’’, respectively, ‘‘$11,250’’ for ‘‘$9,000’’, and
‘‘$43,875’’, ‘‘$49,140’’, ‘‘$60,255’’, ‘‘$75,465’’, and ‘‘$85,328’’
for ‘‘$35,100’’, ‘‘$39,312’’, ‘‘$48,204’’, ‘‘$60,372’’, and
‘‘$68,262’’, respectively.
1994—Subsec. (c)(3). Pub. L. 103–233 substituted
‘‘$56,160’’ for ‘‘$59,160’’.
1992—Subsec. (c)(3). Pub. L. 102–550, § 509(a), substituted ‘‘$30,420’’, ‘‘$33,696’’, ‘‘$40,248’’, ‘‘$49,608’’, and
‘‘$59,160’’ for ‘‘$25,350’’, ‘‘$28,080’’, ‘‘$33,540’’, ‘‘$41,340’’,
and ‘‘$46,800’’, respectively, and ‘‘$35,100’’, ‘‘$39,312’’,
‘‘$48,204’’, ‘‘$60,372’’, and ‘‘$68,262’’ for ‘‘$29,250’’,
‘‘$32,760’’, ‘‘$40,170’’, ‘‘$50,310’’, and ‘‘$56,885’’, respectively.

§ 1713

TITLE 12—BANKS AND BANKING

Subsec. (g). Pub. L. 102–550, § 516(b)(1), in second sentence, substituted ‘‘issue to the mortgagee a certificate
of claim as provided in subsection (h) of this section,
and debentures having a par value’’ for ‘‘, subject to
the cash adjustment provided for in subsection (j) of
this section, issue to the mortgagee a certificate of
claim as provided in subsection (h) of this section, and
debentures having a total face value’’.
Subsec. (i). Pub. L. 102–550, § 516(b)(2), (3), in first sentence, substituted ‘‘shall be negotiable, and, if in book
entry form, transferable, in the manner described by
the Secretary in regulations’’ for ‘‘shall be signed by
the Secretary, by either his written or engraved signature, shall be negotiable’’, and in fourth sentence substituted ‘‘and, in the case of debentures issued in certificated registered form, such guaranty’’ for ‘‘and such
guaranty’’.
Subsec. (j). Pub. L. 102–550, § 516(b)(4), added subsec. (j)
and struck out former subsec. (j) which read as follows:
‘‘Debentures issued under this section shall be in such
form and denominations in multiples of $50, shall be
subject to such terms and conditions, and shall include
such provision for redemption, if any, as may be prescribed by the Secretary with the approval of the Secretary of the Treasury, and may be in coupon or registered form. Any difference between the amount of debentures to which the mortgagee is entitled under this
section, and the aggregate face value of the debentures
issued, not to exceed $50, shall be adjusted by the payment of cash by the Secretary to the mortgagee from
the General Insurance Fund.’’
1988—Subsec. (c)(3). Pub. L. 100–242, § 426(a), (h), substituted ‘‘$25,350’’, ‘‘$28,080’’, ‘‘$33,540’’, ‘‘$41,340’’, and
‘‘$46,800’’ for ‘‘$19,500’’, ‘‘$21,600’’, ‘‘$25,800’’, ‘‘$31,800’’,
and ‘‘$36,000’’, respectively, and ‘‘$29,250’’, ‘‘$32,760’’,
‘‘$40,170’’, ‘‘$50,310’’, and ‘‘$56,885’’ for ‘‘$22,500’’,
‘‘$25,200’’, ‘‘$30,900’’, ‘‘$38,700’’, and ‘‘$43,758’’, respectively, and substituted ‘‘not to exceed 110 percent in
any geographical area where the Secretary finds that
cost levels so require and by not to exceed 140 percent
where the Secretary determines it necessary on a
project-by-project basis, but in no case may any such
increase exceed 90 percent where the Secretary determines that a mortgage purchased or to be purchased by
the Government National Mortgage Association in implementing its special assistance functions under section 1720 of this title (as such section existed immediately before November 30, 1983) is involved’’ for ‘‘not
to exceed 75 per centum in any geographical area where
he finds that cost levels so require, except that, where
the Secretary determines it necessary on a project by
project basis, the foregoing dollar amount limitations
contained in this paragraph may be exceeded by not to
exceed 90 per centum (by not to exceed 140 per centum
where the Secretary determines that a mortgage other
than one purchased or to be purchased under section
1720 of this title by the Government National Mortgage
Association in implementing its special assistance
functions is involved) in such an area.’’
Subsec. (k). Pub. L. 100–242, § 182, inserted provisions
after second sentence directing the Secretary to act
consistently with the goal established in section
1701z–11(a)(1) of this title in determining the amount to
be bid.
1984—Subsec. (i). Pub. L. 98–479 substituted ‘‘section
1715k(f), section 1715l(g), and section 1715x of this title’’
for ‘‘section 1715k(f), 1715l(g), and section 1715x of this
title’’.
1983—Subsec. (a)(7). Pub. L. 98–181, § 407(c), inserted
‘‘American Samoa,’’ after ‘‘Pacific Islands,’’.
Subsec. (b). Pub. L. 98–181, § 431(a)(3), in first undesignated par. following par. (2) struck out ‘‘and directed’’
after ‘‘therefore, authorized’’.
Pub. L. 98–181, § 435, in second undesignated par. following par. (2) substituted ‘‘the Secretary may not insure any mortgage under this section (except a mortgage with respect to a manufactured home park designed exclusively for occupancy by elderly persons)’’
for ‘‘no mortgage shall be insured hereunder’’.
Subsec. (b)(2). Pub. L. 98–181, § 431(a)(1), (2), substituted provision permitting the Secretary discre-

Page 558

tionary authority to regulate rents and other charges
for such period or periods as the Secretary, in his discretion, may require for provision which required the
Secretary to regulate rents and other charges until the
termination of all obligations of the Secretary under
the insurance and during such further time as the Secretary was owner, holder, or reinsurer of the mortgage,
and substituted ‘‘any such regulations and restrictions’’ for ‘‘the regulations and restrictions’’.
Subsec. (c). Pub. L. 98–181, § 446(a), which directed
that ‘‘(unless otherwise approved by the Secretary)’’ be
inserted after ‘‘periodic payments’’ in first undesignated par. of par. (3), was executed to the undesignated
par. following par. (3) to reflect the probable intent of
Congress.
Pub. L. 98–181, § 404(b)(4), which directed the substitution of provision that the interest rate for the mortgage be such a rate as agreed upon by the mortgagor
and mortgagee for provision that the rate of interest,
exclusive of premium charges for insurance, not exceed
51⁄4 per centum per annum on the amount of the principal obligation outstanding at any time, or not exceed
such per centum per annum not in excess of 6 per centum per annum as the Secretary finds necessary to
meet the mortgage market in first undesignated par. of
par. (3), was executed to the undesignated par. following par. (3) to reflect the probable intent of Congress.
1982—Subsec. (c)(3). Pub. L. 97–377 inserted ‘‘(by not
to exceed 140 per centum where the Secretary determines that a mortgage other than one purchased or to
be purchased under section 1720 of this title by the Government National Mortgage Association in implementing its special assistance functions is involved)’’ after
‘‘90 per centum’’.
1981—Subsec. (c)(3). Pub. L. 97–35, §§ 338(b), 339B(a),
substituted ‘‘$9,000’’ for ‘‘$8,000’’ and made minor
changes in nomenclature.
1980—Subsec. (a)(1), (6). Pub. L. 96–399, § 308(c)(1), substituted ‘‘manufactured’’ for ‘‘mobile’’.
Subsec. (c)(3). Pub. L. 96–399, § 310(a), inserted provisions relating to residential energy conservation measures.
1979—Subsec. (c)(3). Pub. L. 96–153, §§ 313(b), 314, in
first sentence of first unnumbered par. substituted
‘‘$8,000’’ for ‘‘$3,900’’, ‘‘75 per centum’’ for ‘‘50 per centum’’ and inserted exception that where the Secretary
determines it necessary on a project by project basis,
the dollar amount limitations may be exceeded by not
to exceed 90 per centum in such an area.
1978—Subsec. (c). Pub. L. 95–557 substituted ‘‘may include five’’ for ‘‘may include eight’’ in concluding par.
Subsec. (c)(3). Pub. L. 95–619 provided that the
amount insurable under this section could be increased
by up to 20 per centum if such increase were necessary
to account for the increased cost of a residence due to
the installation of a solar energy system.
1976—Subsec. (c)(3). Pub. L. 94–375 substituted ‘‘50 per
centum in any geographical area’’ for ‘‘75 per centum in
any geographical area’’, ‘‘$19,500’’ for ‘‘$13,000’’,
‘‘$21,600’’ for ‘‘$18,000’’, ‘‘$25,800’’ for ‘‘$21,500’’, ‘‘$31,800’’
for ‘‘$26,500’’, ‘‘$36,000’’ for ‘‘$30,000’’, ‘‘$3,900’’ for
‘‘$3,250’’, ‘‘$22,500’’ for ‘‘$15,000’’, ‘‘$25,200’’ for ‘‘$21,000’’,
‘‘$30,900’’ for ‘‘$25,750’’, ‘‘$38,700’’ for ‘‘$32,250’’, and
‘‘$43,758’’ for ‘‘$36,465’’.
1975—Subsec. (c)(3). Pub. L. 94–173 raised from 45 per
centum to 75 per centum the amount by which any dollar limitation may, by regulation, be increased.
1974—Subsec. (c)(1). Pub. L. 93–383, § 304(a)(1), struck
out par. (1) which set forth limits on principal obligation of not to exceed $20,000,000, or not to exceed
$50,000,000 if executed by a mortgagor under subsec.
(b)(1) of this section.
Subsec. (c)(3). Pub. L. 93–383, §§ 303(a), 304(a)(2), substituted ‘‘$3,250’’ for ‘‘$2,500’’, ‘‘$13,000’’ for ‘‘$9,900’’,
‘‘$15,000’’ for ‘‘$11,550’’, ‘‘$18,000’’ for ‘‘$13,750’’, ‘‘$21,000’’
for ‘‘$16,500’’, ‘‘$21,500’’ for ‘‘$16,500’’, ‘‘$25,750’’ for
‘‘$19,800’’, ‘‘$26,500’’ for ‘‘$20,350’’, ‘‘$30,000’’ for ‘‘$23,100’’,
‘‘$32,250’’ for ‘‘$24,750’’, and ‘‘$36,465’’ for ‘‘$28,050’’, and
struck out limitation of $1,000,000 per mortgage for
trailer courts or parks.

Page 559

TITLE 12—BANKS AND BANKING

1969—Subsec. (a)(1). Pub. L. 91–152, § 103(a)(1)(A), substituted ‘‘mobile homes’’ for ‘‘trailer coach mobile
dwellings’’.
Subsec. (a)(6). Pub. L. 91–152, § 103(a)(1)(B), (C), substituted ‘‘mobile home court’’ for ‘‘trailer court’’ and
‘‘mobile homes’’ for ‘‘trailer coach mobile dwellings’’.
Subsec. (a)(7). Pub. L. 91–152, § 403(c)(2), inserted ‘‘the
Trust Territory of the Pacific Islands,’’ after ‘‘Guam,’’.
Subsec. (c)(3). Pub. L. 91–152, §§ 103(a)(2), (b), 113(b)(1),
(2), substituted ‘‘$2,500 per space or $1,000,000 per mortgage for mobile home courts or parks’’ for ‘‘$1,800 per
space or $500,000 per mortgage for trailer courts or
parks’’, ‘‘$9,900’’ for ‘‘$9,000’’, ‘‘$11,550’’ for ‘‘$10,500’’,
‘‘$13,750’’ for ‘‘$12,500,’’ ‘‘$16,500’’ from ‘‘$15,000’’ wherever appearing therein, ‘‘$19,800’’ for ‘‘$18,000’’, ‘‘$20,350’’
for ‘‘$18,500’’, ‘‘$23,100’’ for ‘‘$21,000’’, ‘‘$24,750’’ for
‘‘$22,500’’, and ‘‘$28,050’’ for ‘‘$25,500’’.
1968—Subsec. (c)(3). Pub. L. 90–301 limited interest
rate on mortgages to such per centum per annum not
in excess of 6 per centum as the Secretary finds necessary to meet the mortgage market.
1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’ wherever appearing in subsecs. (b), (b)(2),
(c)(2), (3), (d), (e), (g), (h), (h)(1), (h)(2), (h)(2)(i), (j) to (l),
(n), (o), and (r).
1965—Subsec. (b). Pub. L. 89–117, § 1108(e)(4), substituted ‘‘General Insurance Fund’’ for ‘‘Housing
Fund’’.
Subsec. (c)(3). Pub. L. 89–117, § 207(a), substituted
‘‘$18,500 per family unit with three bedrooms, and
$21,000 per family unit with four or more bedrooms’’ for
‘‘and $18,500 per family unit with three or more bedrooms’’ and ‘‘$22,500 per family unit with three bedrooms, and $25,000 per family unit with four or more
bedrooms’’ for ‘‘and $22,500 per family unit with three
or more bedrooms’’.
Subsec. (d). Pub. L. 89–117, § 1108(e)(1), (2), removed
reference to collection of premium charges for the insurance of mortgages under section 1715a of this title
and substituted ‘‘debentures issued by the Commissioner under any subchapter and section of this chapter, except debentures of the Mutual Mortgage Insurance Fund, or of the Cooperative Management Housing
Insurance Fund’’ for ‘‘debentures of the Housing Insurance Fund issued by the Commissioner under this subchapter’’.
Subsec. (f). Pub. L. 89–117, § 1108(e)(3), repealed subsec.
(f) which created the Housing Insurance Fund.
Subsecs. (h) to (l). Pub. L. 89–117, § 1108(e)(4), substituted ‘‘General Insurance Fund’’ for ‘‘Housing Insurance Fund’’ and ‘‘Housing Fund’’ wherever appearing.
Subsec. (m). Pub. L. 89–117, § 1108(e)(3), repealed subsec. (m) which provided for credits and charges in the
Housing Insurance Fund.
Subsec. (p). Pub. L. 89–117, § 1108(e)(3), repealed subsec. (p) which provided for the disposition of surplus
moneys in the Housing Insurance Fund and the investment of such moneys.
1964—Subsec. (c)(2). Pub. L. 88–560, § 106, substituted
‘‘Provided, That this limitation shall not apply’’ for
‘‘Provided, That except with respect to a mortgage executed by a mortgagor coming within the provisions of
subsection (b)(1) of this section or a mortgage on a
trailer court or park, such mortgage shall not exceed
the amount which the Commissioner estimates will be
the cost of the completed physical improvements on
the property or project exclusive of public utilities and
streets and organization and legal expenses: Provided,
further, That this limitation shall not apply’’ before ‘‘to
mortgages on housing in Alaska.’’
Subsec. (c)(3). Pub. L. 88–560, § 107(a), changed limits
on mortgages for property or project attributable to
dwelling use from ‘‘$2,500 per room (or $9,000 per family
unit if the number of rooms in such property or project
is less than four per family unit)’’ to ‘‘$9,000 per family
unit without a bedroom, $12,500 per family unit with
one bedroom, $15,000 per family unit with two bedrooms, and $18,500 per family unit with three or more
bedrooms’’, changed such mortgage limits on project
consisting of elevator-type structures from a sum ‘‘of

§ 1713

$2,500 per room to not exceed $3,000 per room and the
dollar amount limitation of $9,000 per family unit to
not exceed $9,400 per family unit’’ to dollar amount
limitations ‘‘per family unit to not to exceed $10,500 per
family unit without a bedroom, $15,000 per family unit
with one bedroom, $18,000 per family unit with two bedrooms, and $22,500 per family unit with three or more
bedrooms’’, and substituted provision authorizing an
increase ‘‘by not to exceed 45 per centum’’ of any of
such limits because of cost levels for former provision
authorizing such an increase ‘‘by not to exceed $1,250
per room without regard to the number of rooms being
less than four, or four or more’’.
Subsec. (g). Pub. L. 88–560, § 105(b), inserted provision
for termination of mortgagee’s obligation to pay premium charges on the mortgage.
Subsec. (k). Pub. L. 88–560, § 108, struck out second
sentence providing for mandatory acquisition or foreclosure within one year of multifamily project in default.
1961—Subsec. (b)(2). Pub. L. 87–70, § 607(1), struck out
provisions from first paragraph which limited the Commissioner’s authority to insure mortgages to property
held by private corporations, associations, cooperative
societies which are legal agents of owner-occupants, or
trusts formed or created for the purpose of rehabilitating slum or blighted areas, or providing housing for
rent or sale.
Subsec. (c)(3). Pub. L. 87–70, § 607(2), (3), inserted ‘‘(excluding exterior land improvements as defined by the
Commissioner)’’ and substituted ‘‘$1,800 per space’’ for
‘‘$1,500 per space’’.
Subsec. (i). Pub. L. 87–70, § 607(4), permitted debentures issued pursuant to the provisions of section
1715k(f), 1715l(g), and 1715x of this title to be dated as of
the date the mortgage is assigned (or the property is
conveyed) to the Commissioner.
1960—Subsec. (a)(7). Pub. L. 86–624 struck out ‘‘Hawaii,’’ before ‘‘Puerto Rico’’.
1959—Subsec. (a)(7). Pub. L. 86–70, § 10(a), struck out
‘‘Alaska,’’ before ‘‘Hawaii’’.
Subsec. (b). Pub. L. 86–372, § 104(e)(1), struck out exceptions that related to housing for elderly persons
from the two unnumbered paragraphs following par. (2).
Subsec. (c). Pub. L. 86–372, § 104(c), (e)(2), struck out
provisions that authorized insurance of mortgages not
more than $8,100 if the entire property or project was
specially designed for the use and occupancy of elderly
persons and the mortgagor is a financially qualified
nonprofit organization, and substituted in the unnumbered paragraph following par. (3) ‘‘51⁄4 per centum per
annum’’ for ‘‘41⁄2 per centum per annum’’.
Subsec. (c)(1). Pub. L. 86–372, § 104(a), substituted
‘‘$20,000,000’’ for ‘‘$12,500,000’’.
Subsec. (c)(2). Pub. L. 86–70, § 10(b), substituted ‘‘Alaska’’ for ‘‘the Territory of Alaska’’.
Subsec. (c)(3). Pub. L. 86–372, § 104(b), substituted
‘‘$2,500’’ for ‘‘$2,250’’ in two places, ‘‘$9,000’’ for ‘‘$8,100’’
in two places, ‘‘$3,000’’ for ‘‘$2,700’’, ‘‘$9,400’’ for ‘‘$8,400’’,
‘‘$1,250 per room’’ for ‘‘$1,000 per room’’, ‘‘$1,500 per
space’’ for ‘‘$1,000 per space’’, and ‘‘$500,000’’ for
‘‘$300,000’’.
Subsec. (f). Pub. L. 86–372, § 104(e)(3), substituted ‘‘sections 1715a, 1715e, 1715v, and 1715w of this title’’ for
‘‘sections 1715a and 1715e of this title’’ in two places.
Subsec. (r). Pub. L. 86–372, § 104(d), added subsec. (r).
1957—Subsec. (c). Pub. L. 85–104, § 110, inserted in unnumbered paragraph following par. (3), ‘‘(or $8,400 per
family unit in the case of projects to consist of elevator-type structures)’’ and ‘‘and may permit single elderly persons to use and occupy such units’’.
Subsec. (c)(3). Pub. L. 85–104, § 109, struck out ‘‘per
room’’ after ‘‘limitations’’, and inserted ‘‘without regard to the number of rooms being less than four, or
four or more,’’.
Subsec. (i). Pub. L. 85–104, § 108(b), substituted in second sentence, ‘‘established by the Commissioner pursuant to section 1715o of this title’’ for ‘‘determined by
the Commissioner, with the approval of the Secretary
of the Treasury, at the time the mortgage was insured,
but not to exceed 3 per centum per annum’’.

§ 1713

TITLE 12—BANKS AND BANKING

Subsec. (q). Pub. L. 85–104, § 111, repealed provisions
which related to insurance of mortgages by Federal National Mortgage Association. See section 1715e of this
title.
1956—Subsec. (b). Act Aug. 7, 1956, § 104(b), inserted
‘‘(except provisions relating to housing for elderly persons)’’ before ‘‘to take’’ in paragraph following par. (2),
and inserted ‘‘(except with respect to housing designed
for elderly persons, with occupancy preference therefor,
as provided in the paragraph following paragraph (3) of
subsection (c) of this section)’’ after ‘‘hereunder’’ in
second unnumbered par. following par. (2).
Subsec. (c). Act Aug. 7, 1956, § 104(c), substituted provisions of unnumbered par. following par. (3) that in
certain housing for elderly persons, the mortgage may
involve a principal obligation of $8,100 per family unit
and 90 percent of the replacement cost, for former provisions that if the number of bedrooms is equal or exceeds two per family unit, and the principal obligation
does not exceed $7,200 per family unit, the mortgage
may involve a principal obligation not in excess of 90
percent of the value of the property.
Subsec. (c)(2). Act Aug. 7, 1956, § 103(a), substituted
‘‘90 per centum’’ for ‘‘80 per centum’’.
Subsec. (c)(3). Act Aug. 7, 1956, § 103(b), increased limits on mortgages from $2,000 per room to $2,250 per
room, from $7,200 to $8,100 where the number of rooms
in the project is less than 4 per family unit, from $2,400
to $2,700 per room and $7,500 to $8,400 per family unit for
elevator type structures, and inserted provision allowing Commissioner to increase dollar amount limitations by not to exceed $1,000 per room.
1955—Subsec. (a). Act Aug. 11, 1955, § 102(b)(1), (2), inserted provisions relating to trailer coach mobile
dwellings in par. (1)(B), and included space in a trailer
court or park in the definition of ‘‘rental housing’’ in
par. (6).
Subsec. (c). Act Aug. 11, 1955, § 102(b)(5), amended last
paragraph to authorize insurance of mortgages on rental properties having eight or more family units.
Subsec. (c)(1). Act Aug. 11, 1955, § 102(c), increased
from $5,000,000 to $12,500,000 the limitation on the maximum amount of a mortgage.
Subsec. (c)(2). Act Aug. 11, 1955, § 102(b)(3), inserted
‘‘or mortgage on a trailer court or park’’.
Subsec. (c)(3). Act Aug. 11, 1955, § 102(b)(4), inserted
‘‘or not to exceed $1,000 per space or $300,000 per mortgage for trailer courts or parks’’.
1954—Subsec. (c)(2). Act Aug. 2, 1954, § 115(1), (2), inserted the proviso relating to mortgage insurance with
respect to construction in slum or blighted areas, and
inserted the reference to Guam.
Subsec. (c)(3). Act Aug. 2, 1954, § 115(3), struck out the
$10,000 per family-unit limitation, and inserted provisions permitting an increase in the limitations of $2,000
per room and $7,200 per family unit (less than four
rooms) to $2,400, and $7,500, respectively, for elevatortype structures.
Subsec. (d). Act Aug. 2, 1954, § 116, inserted in first
sentence ‘‘of the Housing Insurance Fund’’ after ‘‘debentures’’.
Subsec. (h). Act Aug. 2, 1954, § 117, at end of first sentence, inserted provision relating to inclusion of foreclosure costs, costs of acquisition, and costs of conveyance to the Commissioner.
Subsec. (i). Act Aug. 2, 1954, § 112(b), substituted in
second sentence a twenty-year period for the ten-year
period, with respect to the maturity of debentures.
1953—Subsec. (c). Act June 30, 1953, § 5(a), added par.
following par. (3).
Subsec. (c)(2). Act June 30, 1953, § 5(a), substituted ‘‘80
per centum of the estimated value of the property or
project (when the proposed improvements are completed)’’ for limitation of 90 per centum of value attributable to dwelling use up to $7,000 per family unit, 60
per centum of such value over $7,000 and up to $10,000,
and 90 per centum of value attributable to non-dwelling
use.
Subsec. (c)(3). Act June 30, 1953, § 5(a), substituted
provisions for maximum mortgage amount of $2,000 per

Page 560

room (or $7,200 per family unit if the number of rooms
does not equal or exceed four per family unit), up to
$10,000 per family unit, for provisions which fixed a limitation of $8,100 per family unit (or $7,200 if the number
of rooms was less than four per family unit), provided
for amortization of the mortgage and rate of interest,
provided for consent to release of part of mortgaged
property, prohibited acceptance of mortgages on properties not economically sound, and provided for inclusion with mortgaged properties adequate commercial
and community facilities.
Subsec. (i). Act June 30, 1953, § 5(b), substituted in second sentence, ‘‘ten’’ years for ‘‘twenty’’ years.
1952—Subsec. (a)(7). Act July 14, 1952, inserted
‘‘Guam,’’ after ‘‘District of Columbia,’’.
1951—Subsec. (c)(2). Act Sept. 1, 1951, § 605, in cl. (i),
substituted ‘‘of the property or project attributable to
dwelling use’’ for ‘‘of the property or project’’; in cl.
(ii), inserted ‘‘and’’ after ‘‘unit’’; and added cl. (iii).
Subsec. (c)(3). Act Sept. 1, 1951, § 605, substituted
‘‘four per family unit’’ for ‘‘four and one-half per family
unit’’.
Subsec. (i). Act Sept. 1, 1951, § 604(b), substituted in
second sentence the provision that such debentures
shall mature twenty years after the date thereof, for
the provision that they should mature three years after
the first day of July following the maturity date of the
mortgage in exchange for which the debentures were issued.
1950—Act Apr. 20, 1950, § 122, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing.
Subsec. (b). Act Apr. 20, 1950, § 106, added last two unnumbered pars.
Subsec. (c)(2). Act Apr. 20, 1950, § 107(1), provided that
the mortgage would not exceed 90% of the first $7,000
estimated value of the property and 60% of such estimated value in excess of $7,000 and not in excess of
$10,000.
Subsec. (c)(3). Act Apr. 20, 1950, § 107(2), (3), provided
a dollar mortgage limitation of $8,100 per family unit or
$7,200 per family unit if the number of rooms did not
equal or exceed four and one-half per family unit, and
struck out ‘‘, except that with respect to mortgages insured under the provisions of the second proviso of
paragraph (2) of this subsection, which mortgages are
authorized to have a maturity of not exceeding forty
years from the date of insurance of the mortgage, such
interest rate shall not exceed 4 per centum per annum’’
in first sentence of last par.
Subsec. (d). Act Apr. 20, 1950, § 108, struck out ‘‘onehalf of’’ before ‘‘1 per centum’’ in proviso.
Subsec. (f). Act Apr. 20, 1950, § 109, inserted ‘‘and section 1715e’’ before ‘‘of this title’’ wherever appearing.
Subsec. (g). Act Apr. 20, 1950, § 110, inserted ‘‘and any
mortgage insurance premiums paid after default’’ after
‘‘preservation of the property’’ in cl. (C) of last sentence, and substituted proviso of last sentence for the
one reading ‘‘That the mortgagee in event of a default
under the mortgage, may, at its option and in accordance with rules and regulations to be prescribed by the
Commissioner, proceed to foreclose on or otherwise acquire the property as provided in the case of a mortgage which is in default under section 1715a of this title
and receive the benefits of the insurance as provided in
such section’’.
Subsec. (h). Act Apr. 20, 1950, § 111, substituted ‘‘under
this section’’ after ‘‘claim issued’’ in first sentence for
‘‘by the Commissioner to any mortgagee upon the assignment of the mortgage to the Commissioner’’.
Subsec. (i). Act Apr. 20, 1950, § 112, struck out first
sentence and substituted ‘‘Debentures issued under this
section shall be executed in the name of the Housing
Insurance Fund as obligor, shall be signed by the Commissioner by either his written or engraved signature,
shall be negotiable, and shall be dated as of the date of
default as determined in subsection (g) of this section
and shall bear interest from such date’’.
1948—Subsec. (b)(1) Act Aug. 10, 1948, § 101(m), substituted ‘‘restricted by Federal or State laws or regulations of State banking or insurance departments’’ for

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§ 1715

TITLE 12—BANKS AND BANKING

‘‘formed under and restricted by Federal or State housing laws’’.
Subsec. (c). Act Aug. 10, 1948, § 101(n)(1)–(3), amended
first sentence generally, inserted ‘‘except that with respect to mortgages insured under the provisions of the
second proviso of paragraph numbered (2) of this subsection, which mortgages are hereby authorized to have
a maturity of not exceeding forty years from the date
of the insurance of the mortgage, such interest rate
shall not exceed 4 per centum per annum’’ at end of second sentence, and inserted last sentence.
Act July 1, 1948, inserted proviso.
Subsec. (g). Act Aug. 10, 1948, § 101(o), substituted, in
cl. (ii), ‘‘(1)’’ for ‘‘(2)’’.
Subsec. (h). Act Aug. 10, 1948, § 101(p), substituted ‘‘retained by the Housing Administrator and credited to
the Housing Insurance Fund’’ for ‘‘paid to the mortgagor of such property’’.
Subsec. (q). Act Aug. 10, 1948, § 101(r), added subsec.
(q).
1941—Subsec. (a)(1). Act Mar. 28, 1941, § 4(b)(1), struck
out ‘‘district or territory’’.
Subsec. (a)(7). Act Mar. 28, 1941, § 4(b)(2), added par.
(7).
1939—Subsec. (c). Act June 3, 1939, amended first sentence generally.
1938—Act of Feb. 3, 1938, amended section generally.
1935—Act Aug. 23, 1935, inserted ‘‘property’’ before
‘‘project’’ in last sentence.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 431(c) of Pub. L. 98–181 provided that: ‘‘The
amendments made in this section [amending this section and section 1715y of this title] shall not apply with
respect to mortgages insured by the Secretary of Housing and Urban Development before the date of the enactment of this Act [Nov. 30, 1983].’’
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of this title.

Act [Nov. 28, 1990], the Secretary of Housing and Urban
Development shall implement a system of mortgage insurance for mortgages insured under section 207, 221,
223, 232, or 241 of the National Housing Act [12 U.S.C.
1713, 1715l, 1715n, 1715w, 1715z–6] that delegates processing functions to selected approved mortgagees or other
individuals and entities expressly approved by the Department of Housing and Urban Development. Under
such system, the Secretary shall retain the authority
to approve rents, expenses, property appraisals, and
mortgage amounts and to execute a firm commitment.
‘‘(b) FULL INSURANCE PROGRAM.—Notwithstanding
subsection (a), the Secretary shall maintain a viable
system for full insurance programs under such Act
[this chapter] under which all processing functions are
performed by officers and employees of the Department
of Housing and Urban Development.’’
LIMITATION ON NUMBER OF DWELLING UNITS WITH
MORTGAGES NOT PROVIDING FOR COMPLETE AMORTIZATION

Section 446(f) of Pub. L. 98–181 provided that: ‘‘The
aggregate number of dwelling units included in properties covered by mortgages insured pursuant to the
authority granted in the amendments made by this section [amending sections 1713, 1715k, 1715l, and 1715v of
this title] in any fiscal year may not exceed 10,000.’’
AMENDMENTS TO PROVISIONS FOR FAMILY UNIT LIMITS
ON RENTAL HOUSING; EQUITABLE APPLICATION OF
SUCH AMENDMENTS OR PRE-AMENDMENT PROVISIONS
TO PROJECTS SUBMITTED FOR CONSIDERATION PRIOR
TO SEPTEMBER 2, 1964
Section 107(g) of Pub. L. 88–560, as amended by Pub.
L. 90–19, § 21(a), May 25, 1967, 81 Stat. 25, provided that
if the Secretary of Housing and Urban Development determined that it would be inequitable to apply the provisions of the National Housing Act as amended by section 107 [amending sections 1713, 1715e, 1715k, 1715l,
1715v, and 1748h–2 of this title] to a project which had
been submitted for his consideration prior to Sept. 2,
1964, such provisions could be applied to such project
without regard to the amendments made by section 107.

EFFECTIVE DATE OF 1954 AMENDMENT
Amendment by section 112(b) of act Aug. 2, 1954, as
not applicable in any case where the mortgage involved
was insured or the commitment for the insurance was
issued prior to Aug. 2, 1954, see section 112(e) of that
act, set out as a note under section 1710 of this title.
REPEALS
The directory language of, but not the amendment
made by, Pub. L. 90–301, § 3(b), May 7, 1968, 82 Stat. 114,
cited as a credit to this section, was repealed by Pub.
L. 98–181, title IV, § 404(a), Nov. 30, 1983, 97 Stat. 1208.

§ 1714. Taxation
Nothing in this subchapter shall be construed
to exempt any real property acquired and held
by the Secretary under this subchapter from
taxation by any State or political subdivision
thereof, to the same extent, according to its
value, as other real property is taxed.

REGULATIONS

(June 27, 1934, ch. 847, title II, § 208, 48 Stat. 1252;
Feb. 3, 1938, ch. 13, § 3, 52 Stat. 22; Apr. 20, 1950,
ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19,
§ 1(a)(3), May 25, 1967, 81 Stat. 17.)

Section 509(h) of Pub. L. 102–550 provided that: ‘‘The
Secretary of Housing and Urban Development shall
issue regulations necessary to carry out the amendments made by subsections (a) through (g) [amending
this section and sections 1715e, 1715k, 1715l, 1715v, and
1715y of this title], which shall take effect not later
than the expiration of the 1-year period beginning on
the date of the enactment of this Act [Oct. 28, 1992].’’

1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’.
1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’
for ‘‘Administrator’’.
1938—Act Feb. 3, 1938, corrected error in spelling of
‘‘subdivision’’.

TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.
DELEGATION OF PROCESSING OF MORTGAGE INSURANCE
Pub. L. 101–625, title III, § 328, Nov. 28, 1990, 104 Stat.
4138, as amended by Pub. L. 102–242, title II, § 226, Dec.
19, 1991, 105 Stat. 2307, provided that:
‘‘(a) AUTHORITY.—Not later than the expiration of the
60-day period beginning on the date of enactment this

AMENDMENTS

§ 1715. Statistical and economic surveys
The Secretary shall cause to be made in connection with the insurance programs such statistical surveys and legal and economic studies
as he shall deem useful to guide the development of housing and the creation of a sound
mortgage market in the United States, and shall
publish from time to time the results of such
surveys and studies. Expenses of such studies
and surveys, and expenses of publication and
distribution of the results of such studies and