Laws & Regs

§ 1702a

TITLE 12—BANKS AND BANKING
EFFECTIVE DATE OF 1941 AMENDMENT

Amendment by act June 28, 1941, effective July 1,
1941, see section 6 of act June 28, 1941.

thorized Commissioner to establish one position in
GS–18, four in GS–17, and eight in GS–16 in Federal
Housing Administration.

§ 1703. Insurance of financial institutions

REPEALS
Act Aug. 10, 1948, ch. 832, title V, § 501(a), 62 Stat. 1283,
formerly cited as a credit to this section, was repealed
by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 655.
TRANSFER OF FUNCTIONS
Functions, powers, and duties of Federal Housing Administration and Housing and Home Finance Agency
transferred to Secretary of Housing and Urban Development who was authorized to delegate such functions,
powers, and duties to such officers and employees of
Department of Housing and Urban Development as Secretary may designate, see sections 3534 and 3535 of Title
42, The Public Health and Welfare.
Reorg. Plan No. 3 of 1947, eff. July 27, 1947, 12 F.R.
4981, 61 Stat. 954, set out in the Appendix to Title 5,
Government Organization and Employees, abolished office of Federal Housing Administrator and transferred
functions to Federal Housing Commissioner. It also
consolidated Federal Housing Administration with
other agencies into Housing and Home Finance Agency
and transferred functions of Federal Loan Administrator with respect to Federal Housing Administration
and its functions to Housing and Home Finance Administrator. Federal Housing Administration continued as
a constituent agency within Housing and Home Finance Agency. For provisions concerning appointment
and compensation of Federal Housing Commissioner,
see section 3 of Reorganization Plan.
Functions, powers, and duties of National Housing
Agency with respect to property, funds, and other assets which were formerly under administration of Farm
Security Administration and were transferred to National Housing Agency by Ex. Ord. No. 9070, Feb. 24,
1942, 7 F.R. 1529, as amended, were abolished by section
2(a)(3) of act Aug. 14, 1946, ch. 964, 60 Stat. 1063, as
amended, set out as a note under sections 1001 to 1005d
of Title 7, Agriculture, except with respect of housing
projects and such other properties and assets in process
of liquidation.
Federal Housing Administration consolidated with
other agencies into National Housing Agency during
World War II, see Ex. Ord. No. 9070.
Functions of National Housing Agency with respect
to non-farm-housing projects and other properties remaining under its jurisdiction pursuant to section
2(a)(3) of act Aug. 14, 1946, transferred to Public Housing Commissioner by Reorg. Plan No. 3 of 1947, § 4(b),
eff. July 27, 1947, 12 F.R. 4983, 61 Stat. 955, set out in the
Appendix to Title 5.
Federal Housing Administration to be administered
by Federal Loan Administrator within Federal Loan
Agency, see Reorg. Plan No. I of 1939, § 402, eff. July 1,
1939, 4 F.R. 2730, 53 Stat. 1429 set out in the Appendix
to Title 5.
EXECUTIVE ORDER NO. 7058
Ex. Ord. No. 7058, May 29, 1935, authorized Federal
Housing Administrator to adopt a seal for Federal
Housing Administration, provided that copies of any
books, records, papers, documents, agreements, orders,
rules, or regulations of Administration were admissible
in evidence equally with originals thereof, and empowered Administrator or his designee to certify or exemplify copies of any books, records, papers, or documents
of Administration.
EXECUTIVE ORDER NO. 7280
Ex. Ord. No. 7280, Jan. 28, 1936, was issued as evidence
of creation of Federal Housing Administration and
validated and confirmed creation thereof.

§ 1702a. Repealed. June
§ 12(c)(14), 69 Stat. 182

Page 524

28,

1955,

ch.

189,

Section, act June 27, 1934, ch. 847, title II, § 228, as
added Aug. 2, 1954, ch. 649, title I, § 126, 68 Stat. 809, au-

(a) Authority to insure financial institutions
The Secretary is authorized and empowered
upon such terms and conditions as he may prescribe, to insure banks, trust companies, personal finance companies, mortgage companies,
building and loan associations, installment lending companies and other such financial institutions, which the Secretary finds to be qualified
by experience or facilities and approves as eligible for credit insurance, against losses which
they may sustain as a result of loans and advances of credit, and purchases of obligations
representing loans and advances of credit, made
by them for the purpose of (i) financing alterations, repairs, and improvements upon or in
connection with existing structures or manufactured homes, and the building of new structures,
upon urban, suburban, or rural real property (including the restoration, rehabilitation, rebuilding, and replacement of such improvements
which have been damaged or destroyed by earthquake, conflagration, tornado, hurricane, cyclone, flood, or other catastrophe), by the owners thereof or by lessees of such real property
under a lease expiring not less than six months
after the maturity of the loan or advance of
credit; and for the purpose of (ii) financing the
purchase of a manufactured home to be used by
the owner as his principal residence or financing
the purchase of a lot on which to place such
home and paying expenses reasonably necessary
for the appropriate preparation of such lot, including the installation of utility connections,
sanitary facilities, and paving, and the construction of a suitable pad, or financing only the acquisition of such a lot either with or without
such preparation by an owner of a manufactured
home; and for the purpose of financing the preservation of historic structures, and, as used in
this section, the term ‘‘historic structures’’
means residential structures which are registered in the National Register of Historic
Places or which are certified by the Secretary of
the Interior to conform to National Register criteria; and the term ‘‘preservation’’ means restoration or rehabilitation undertaken for such
purposes as are approved by the Secretary in
regulations issued by him, after consulting with
the Secretary of the Interior. Other than in connection with a manufactured home or a lot on
which to place such a home (or both), in no case
shall the insurance granted by the Secretary
under this section to any such financial institution on loans, advances of credit, and purchases
made by such financial institution for such purposes exceed 10 per centum of the total amount
of such loans, advances of credit, and purchases.
With respect to any loan, advance of credit, or
purchase, the amount of any claim for loss on
any such individual loan, advance of credit or
purchase paid by the Secretary under the provisions of this section to a lending institution
shall not exceed 90 per centum of such loss.
After August 2, 1954, (i) the Secretary shall not
enter into contracts for insurance pursuant to
this section except with lending institutions

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TITLE 12—BANKS AND BANKING

which are subject to the inspection and supervision of a governmental agency required by law
to make periodic examinations of their books
and accounts, and which the Secretary finds to
be qualified by experience or facilities to make
and service such loans, advances or purchases,
and with such other lending institutions which
the Secretary approves as eligible for insurance
pursuant to this section on the basis of their
credit and their experience or facilities to make
and service such loans, advances or purchases;
(ii) only such items as substantially protect or
improve the basic livability or utility of properties shall be eligible for financing under this
section, and therefore the Secretary shall from
time to time declare ineligible for financing
under this section any item, product, alteration,
repair, improvement, or class thereof which he
determines would not substantially protect or
improve the basic livability or utility of such
properties, and he may also declare ineligible
for financing under this section any item which
he determines is especially subject to selling
abuses; and (iii) the Secretary is authorized and
directed, by such regulations or procedures as he
shall deem advisable, to prevent the use of any
financial assistance under this section (1) with
respect to new residential structures (other than
manufactured homes) that have not been completed and occupied for at least six months, or
(2) which would, through multiple loans, result
in an outstanding aggregate loan balance with
respect to the same structure exceeding the dollar amount limitation prescribed in this subsection for the type of loan involved: Provided,
That this clause (iii) may in the discretion of
the Secretary be waived with respect to the period of occupancy or completion of any such new
residential structures. The Secretary is hereby
authorized and directed, with respect to manufactured homes to be financed under this section, to (i) prescribe minimum property standards to assure the livability and durability of
the manufactured home and the suitability of
the site on which the manufactured home is to
be located; and (ii) obtain assurances from the
borrower that the manufactured home will be
placed on a site which complies with the standards prescribed by the Secretary and with local
zoning and other applicable local requirements.
The insurance authority provided under this
section may be made available with respect to
any existing manufactured home that has not
been insured under this section if such home was
constructed in accordance with the standards issued under the National Manufactured Housing
Construction and Safety Standards Act of 1974
[42 U.S.C. 5401 et seq.] and it meets standards
similar to the minimum property standards applicable to existing homes insured under subchapter II of this chapter.
Alterations, repairs, and improvements upon
or in connection with existing structures may
include the provision of fire safety equipment,
energy conserving improvements, or the installation of solar energy systems. Alterations, repairs, and improvements upon or in connection
with existing structures may also include the
evaluation and reduction of lead-based paint
hazards. As used in this section—
(1) the term ‘‘fire safety equipment’’ means
any device or facility which is designed to re-

§ 1703

duce the risk of personal injury or property
damage resulting from fire and is in conformity with such criteria and standards as shall
be prescribed by the Secretary;
(2) the term ‘‘energy conserving improvements’’ means the purchase and installation of
weatherization materials as defined in section
6862(9) of title 42; and 1
(3) the term ‘‘solar energy system’’ means
any addition, alteration, or improvement to
an existing or new structure which is designed
to utilize wind energy or solar energy either of
the active type based on mechanically forced
energy transfer or of the passive type based on
convective, conductive, or radiant energy
transfer or some combination of these types to
reduce the energy requirements of that structure from other energy sources, and which is
in conformity with such criteria and standards
as shall be prescribed by the Secretary in consultation with the Secretary of Energy.2
(4) the terms ‘‘evaluation’’, ‘‘reduction’’, and
‘‘lead-based paint hazard’’ have the same
meanings given those terms in section 4851b of
title 42.
(b) Conditions for denial of insurance
(1) Except as provided in the last sentence of
this paragraph, no insurance shall be granted
under this section to any such financial institution with respect to any obligation representing
any such loan, advance of credit, or purchase by
it if the amount of such loan, advance of credit,
or purchase exceeds—
(A)(i) $25,000 if made for the purpose of financing alterations, repairs and improvements
upon or in connection with existing singlefamily structures; and
(ii) $25,090 if made for the purpose of financing alterations, repairs and improvements
upon or in connection with existing manufactured homes;
(B) $60,000 or an average amount of $12,000
per family unit if made for the purpose of financing the alteration, repair, improvement,
or conversion of an existing structure used or
to be used as an apartment house or a dwelling
for two or more families;
(C) $69,678 if made for the purpose of financing the purchase of a manufactured home;
(D) $92,904 if made for the purpose of financing the purchase of a manufactured home and
a suitably developed lot on which to place the
home; and 1
(E) $23,226 if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of
that owner, of a suitably developed lot on
which to place that manufactured home, and if
the owner certifies that he or she will place
the manufactured home on the lot acquired
with such loan within 6 months after the date
of such loan.3
(F) $15,000 per family unit if made for the
purpose of financing the preservation of an
historic structure; and
(G) such principal amount as the Secretary
may prescribe if made for the purpose of fi1 So

in original. The word ‘‘and’’ probably should not appear.
in original. The period probably should be ‘‘; and’’.
3 So in original. The period probably should be a semicolon.
2 So

§ 1703

TITLE 12—BANKS AND BANKING

nancing fire safety equipment for a nursing
home, extended health care facility, intermediate health care facility, or other comparable health care facility.
The Secretary shall, by regulation, annually increase the dollar amount limitations in subparagraphs (A)(ii), (C), (D), and (E) (as such limitations may have been previously adjusted under
this sentence) in accordance with the index established pursuant to paragraph (9).
(2) Because of prevailing higher costs, the Secretary may, by regulation, in Alaska, Guam, or
Hawaii, increase any dollar amount limitation
on manufactured homes or manufactured home
lot loans contained in this subsection by not to
exceed 40 per centum. In other areas, the maximum dollar amounts specified in subsections
(b)(1)(D) and (b)(1)(E) of this section may be increased on an area-by-area basis to the extent
the Secretary deems necessary, but in no case
may such limits, as so increased, exceed the
lesser of (A) 185 percent of the dollar amount
specified, or (B) the dollar amount specified as
increased by the same percentage by which 95
percent of the median one-family house price in
the area (as determined by the Secretary) exceeds $67,500.
(3) No insurance shall be granted under this
section to any such financial institution with
respect to any obligation representing any such
loan, advance of credit, or purchase by it if the
term to maturity of such loan, advance of credit
or purchase exceeds—
(A)(i) twenty years and thirty-two days if
made for the purpose of financing alterations,
repairs, and improvements upon or in connection with an existing single-family structure;
and
(ii) fifteen years and thirty-two days if made
for the purpose of financing alterations, repairs, and improvements upon or in connection with an existing manufactured home;
(B) twenty years and thirty-two days if
made for the purpose of financing the alteration, repair, improvement or conversion of an
existing structure used or to be used as an
apartment house or a dwelling for two or more
families;
(C) twenty years and thirty-two days (twenty-three years and thirty-two days in the case
of a manufactured home composed of two or
more modules) if made for the purpose of financing the purchase of a manufactured home;
(D) twenty years and thirty-two days (twenty-five years and thirty-two days in the case
of a manufactured home composed of two or
more modules) if made for the purpose of financing the purchase of a manufactured home
and a suitably developed lot on which to place
the home;
(E) twenty years and thirty-two days if
made for the purpose of financing the purchase, by the owner of a manufactured home
which is the principal residence of that owner,
of a suitably developed lot on which to place
that manufactured home;
(F) fifteen years and thirty-two days if made
for the purpose of financing the preservation
of an historic structure;
(G) such term to maturity as the Secretary
may prescribe if made for the purpose of fi-

Page 526

nancing the construction of a new structure
for use in whole or in part for agricultural purposes; and
(H) such term to maturity as the Secretary
may prescribe if made for the purpose of financing fire safety equipment for a nursing
home, extended health care facility, intermediate health care facility, or other comparable health care facility.
(4) For the purpose of this subsection—
(A) the term ‘‘developed lot’’ includes an interest in a condominium project (including
any interest in the common areas) or a share
in a cooperative association;
(B) a loan to finance the purchase of a manufactured home or a manufactured home and
lot may also finance the purchase of a garage,
patio, carport, or other comparable appurtenance; and
(C) a loan to finance the purchase of a manufactured home or a manufactured home and
lot shall be secured by a first lien upon such
home or home and lot, its furnishings, equipment, accessories, and appurtenances.
(5) No insurance shall be granted under this
section to any such financial institution with
respect to any obligation representing any such
loan, advance of credit, or purchase by it unless
the obligation has such maturity, bears such insurance premium charges, and contains such
other terms, conditions, and restrictions as the
Secretary shall prescribe, in order to make credit available for the purpose of this subchapter.
Any such obligation with respect to which insurance is granted under this section shall bear interest at such rate as may be agreed upon by the
borrower and the financial institution.
(6)(A) Any obligation with respect to which insurance is granted under this section may be refinanced and extended in accordance with such
terms and conditions as the Secretary may prescribe, but in no event for an additional amount
or term in excess of any applicable maximum
provided for in this subsection.
(B) The owner of a manufactured home lot
purchased without assistance under this section
but otherwise meeting the requirements of this
section may refinance such lot under this section in connection with the purchase of a manufactured home if the borrower certifies that the
home and lot is or will be his or her principal
residence within six months after the date of the
loan.
(C) The owner-occupant of a manufactured
home or a home and lot which was purchased
without assistance under this section but which
otherwise meets the requirements of this section may refinance such home or home and lot
under this section if the home was constructed
in accordance with standards established under
section 604 of the National Manufactured Housing Construction and Safety Standards Act of
1974 [42 U.S.C. 5403].
(7) With respect to the financing of alterations, repairs, and improvements to existing
structures or the building of new structures as
authorized under clause (i) of the first sentence
of subsection (a) of this section, any loan broker
(as defined by the Secretary) or any other party
having a financial interest in the making of

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TITLE 12—BANKS AND BANKING

such a loan or advance of credit or in providing
assistance to the borrower in preparing the loan
application or otherwise assisting the borrower
in obtaining the loan or advance of credit who
knowingly (as defined in section 1735f–14(g) of
this title) submits to any such financial institution or to the Secretary false information shall
be subject to a civil money penalty in the
amount and manner provided under section
1735f–14 of this title with respect to mortgagees
and lenders under this chapter.
(8) INSURANCE BENEFITS FOR MANUFACTURED
HOUSING LOANS.—Any contract of insurance with
respect to loans, advances of credit, or purchases in connection with a manufactured home
or a lot on which to place a manufactured home
(or both) for a financial institution that is executed under this subchapter after July 30, 2008,
by the Secretary shall be conclusive evidence of
the eligibility of such financial institution for
insurance, and the validity of any contract of
insurance so executed shall be incontestable in
the hands of the bearer from the date of the execution of such contract, except for fraud or misrepresentation on the part of such institution.
(9) ANNUAL INDEXING OF MANUFACTURED HOUSING LOANS.—The Secretary shall develop a method of indexing in order to annually adjust the
loan limits established in subparagraphs (A)(ii),
(C), (D), and (E) of this subsection. Such index
shall be based on the manufactured housing
price data collected by the United States Census
Bureau. The Secretary shall establish such
index no later than 1 year after July 30, 2008.
(10) FINANCIAL SOUNDNESS OF MANUFACTURED
HOUSING PROGRAM.—The Secretary shall establish such underwriting criteria for loans and advances of credit in connection with a manufactured home or a lot on which to place a manufactured home (or both), including such loans
and advances represented by obligations purchased by financial institutions, as may be necessary to ensure that the program under this
subchapter for insurance for financial institutions against losses from such loans, advances of
credit, and purchases is financially sound.
(11) LEASEHOLD REQUIREMENTS.—No insurance
shall be granted under this section to any such
financial institution with respect to any obligation representing any such loan, advance of
credit, or purchase by it, made for the purposes
of financing a manufactured home which is intended to be situated in a manufactured home
community pursuant to a lease, unless such
lease—
(A) expires not less than 3 years after the
origination date of the obligation;
(B) is renewable upon the expiration of the
original 3 year term by successive 1 year
terms; and
(C) requires the lessor to provide the lessee
written notice of termination of the lease not
less than 180 days prior to the expiration of
the current lease term in the event the lessee
is required to move due to the closing of the
manufactured home community, and further
provides that failure to provide such notice to
the mortgagor in a timely manner will cause
the lease term, at its expiration, to automatically renew for an additional 1 year term.

§ 1703

(c) Handling and disposal of property
(1) Authority of Secretary
Notwithstanding any other provision of law,
the Secretary may—
(A) deal with, complete, rent, renovate,
modernize, insure, or assign or sell at public
or private sale, or otherwise dispose of, for
cash or credit in the Secretary’s discretion,
and upon such terms and conditions and for
such consideration as the Secretary shall determine to be reasonable, any real or personal property conveyed to or otherwise acquired by the Secretary, in connection with
the payment of insurance heretofore or hereafter granted under this subchapter, including any evidence of debt, contract, claim,
personal property, or security assigned to or
held by him in connection with the payment
of insurance heretofore or hereafter granted
under this section; and
(B) pursue to final collection, by way of
compromise or otherwise, all claims assigned to or held by the Secretary and all
legal or equitable rights accruing to the Secretary in connection with the payment of
such insurance, including unpaid insurance
premiums owed in connection with insurance made available by this subchapter.
(2) Advertisements for proposals
Section 5 of title 41 shall not be construed to
apply to any contract of hazard insurance or
to any purchase or contract for services or
supplies on account of such property if the
amount thereof does not exceed $25,000.
(3) Delegation of authority
The power to convey and to execute in the
name of the Secretary, deeds of conveyance,
deeds of release, assignments and satisfactions
of mortgages, and any other written instrument relating to real or personal property or
any interest therein heretofore or hereafter
acquired by the Secretary pursuant to the provisions of this subchapter may be exercised by
an officer appointed by the Secretary without
the execution of any express delegation of
power or power of attorney. Nothing in this
subsection shall be construed to prevent the
Secretary from delegating such power by order
or by power of attorney, in the Secretary’s discretion, to any officer or agent the Secretary
may appoint.
(d) Authority to transfer insurance
The Secretary is authorized and empowered,
under such regulations as he may prescribe, to
transfer to any such approved financial institution any insurance in connection with any loans
and advances of credit which may be sold to it
by another approved financial institution.
(e) Authority to waive compliance with regulations
The Secretary is authorized to waive compliance with regulations heretofore or hereafter
prescribed by him with respect to the interest
and maturity of and the terms, conditions, and
restrictions under which loans, advances of credit, and purchases may be insured under this section and section 1706a 4 of this title, if in his
4 See

References in Text note below.

§ 1703

TITLE 12—BANKS AND BANKING

judgment the enforcement of such regulations
would impose an injustice upon an insured institution which has substantially complied with
such regulations in good faith and refunded or
credited any excess charge made, and where
such waiver does not involve an increase of the
obligation of the Secretary beyond the obligation which would have been involved if the regulations had been fully complied with.
(f) Premium charges; manufactured home loans
(1) Premium charges
The Secretary shall fix a premium charge
for the insurance hereafter granted under this
section, but in the case of any obligation representing any loan, advance of credit, or purchase, such premium charge shall not exceed
an amount equivalent to 1 per centum per
annum of the net proceeds of such loan, advance of credit, or purchase, for the term of
such obligation, and such premium charge
shall be payable in advance by the financial
institution and shall be paid at such time and
in such manner as may be prescribed by the
Secretary.
(2) Manufactured home loans
Notwithstanding paragraph (1), in the case
of a loan, advance of credit, or purchase in
connection with a manufactured home or a lot
on which to place such a home (or both), the
premium charge for the insurance granted
under this section shall be paid by the borrower under the loan or advance of credit, as
follows:
(A) At the time of the making of the loan,
advance of credit, or purchase, a single premium payment in an amount not to exceed
2.25 percent of the amount of the original insured principal obligation.
(B) In addition to the premium under subparagraph (A), annual premium payments
during the term of the loan, advance, or obligation purchased in an amount not exceeding 1.0 percent of the remaining insured
principal balance (excluding the portion of
the remaining balance attributable to the
premium collected under subparagraph (A)
and without taking into account delinquent
payments or prepayments).
(C) Premium charges under this paragraph
shall be established in amounts that are sufficient, but do not exceed the minimum
amounts necessary, to maintain a negative
credit subsidy for the program under this
section for insurance of loans, advances of
credit, or purchases in connection with a
manufactured home or a lot on which to
place such a home (or both), as determined
based upon risk to the Federal Government
under existing underwriting requirements.
(D) The Secretary may increase the limitations on premium payments to percentages above those set forth in subparagraphs
(A) and (B), but only if necessary, and not in
excess of the minimum increase necessary,
to maintain a negative credit subsidy as described in subparagraph (C).
(g) Finality of payment for loss
Any payment for loss made to an approved financial institution under this section shall be

Page 528

final and incontestable after two years from the
date the claim was certified for payment by the
Secretary, in the absence of fraud or misrepresentation on the part of such institution, unless
a demand for repurchase of the obligation shall
have been made on behalf of the United States
prior to the expiration of such two-year period.
(h) Authority to regulate
The Secretary is authorized and directed to
make such rules and regulations as may be necessary to carry out the provisions of this subchapter.
(i) ‘‘Manufactured home’’ defined
For purposes of this section, the term ‘‘manufactured home’’ includes any elder cottage housing opportunity unit that is small, freestanding,
barrier-free, energy efficient, removable, and designed to be installed adjacent to an existing 1to 4-family dwelling.
(June 27, 1934, ch. 847, title I, § 2, 48 Stat. 1246;
May 28, 1935, ch. 150, § 28, 49 Stat. 299; Aug. 23,
1935, ch. 614, title III, § 344(b), 49 Stat. 722; Apr. 3,
1936, ch. 165, § 1, 49 Stat. 1187; Apr. 17, 1936, ch.
234, § 4, 49 Stat. 1234; Apr. 22, 1937, ch. 121, § 2, 50
Stat. 71; Feb. 3, 1938, ch. 13, § 2, 52 Stat. 9; June
3, 1939, ch. 175, §§ 1, 2, 53 Stat. 804, 805; June 28,
1941, ch. 261, §§ 1–5, 55 Stat. 364, 365; May 26, 1942,
ch. 319, § 13, 56 Stat. 305; Mar. 23, 1943, ch. 21, § 2,
57 Stat. 43; Oct. 15, 1943, ch. 259, §§ 3, 4, 57 Stat.
571; June 26, 1947, ch. 152, 61 Stat. 182; Aug. 10,
1948, ch. 832, title I, § 101(s), 62 Stat. 1275; July 15,
1949, ch. 338, title II, § 201(1), 63 Stat. 421; Aug. 30,
1949, ch. 524, 63 Stat. 681; Oct. 25, 1949, ch. 729,
§ 1(1), 63 Stat. 905; Apr. 20, 1950, ch. 94, title I,
§§ 101(a), 122, 64 Stat. 48, 59; Mar. 10, 1953, ch. 5,
§ 1, 67 Stat. 4; Aug. 2, 1954, ch. 649, title I,
§§ 101(a), 102, 68 Stat. 590; June 30, 1955, ch. 251,
§ 1(1), 69 Stat. 225; Aug. 11, 1955, ch. 783, title I,
§ 101, 69 Stat. 635; Feb. 10, 1956, ch. 33, 70 Stat. 11;
Aug. 7, 1956, ch. 1029, title I, § 101, 70 Stat. 1091;
Pub. L. 85–104, title I, § 105, July 12, 1957, 71 Stat.
297; Pub. L. 86–372, title I, § 101, Sept. 23, 1959, 73
Stat. 654; Pub. L. 86–788, § 2(a), Sept. 14, 1960, 74
Stat. 1028; Pub. L. 87–70, title VI, § 604(a), June
30, 1961, 75 Stat. 177; Pub. L. 88–560, title I, § 101,
Sept. 2, 1964, 78 Stat. 769; Pub. L. 89–117, title II,
§ 202(a), title XI, § 1108(a), Aug. 10, 1965, 79 Stat.
465, 504; Pub. L. 90–19, § 1(a)(3), (d), May 25, 1967,
81 Stat. 17, 18; Pub. L. 90–448, title III, § 308, Aug.
1, 1968, 82 Stat. 509; Pub. L. 91–78, § 2(a), Sept. 30,
1969, 83 Stat. 125; Pub. L. 91–152, title I, §§ 101(a),
103(c), Dec. 24, 1969, 83 Stat. 379, 380; Pub. L.
91–432, § 1(a), Oct. 2, 1970, 84 Stat. 886; Pub. L.
91–473, § 1(a), Oct. 21, 1970, 84 Stat. 1064; Pub. L.
91–525, § 1(a), Dec. 1, 1970, 84 Stat. 1384; Pub. L.
91–609, title I, §§ 101(a), 113, Dec. 31, 1970, 84 Stat.
1770, 1773; Pub. L. 92–503, § 1(a), Oct. 18, 1972, 86
Stat. 906; Pub. L. 93–85, § 1(a), Aug. 10, 1973, 87
Stat. 220; Pub. L. 93–117, § 1(a), Oct. 2, 1973, 87
Stat. 421; Pub. L. 93–383, title III, §§ 309(a)–(d),
316(a), Aug. 22, 1974, 88 Stat. 680, 681, 685; Pub. L.
93–449, § 4(a), Oct. 18, 1974, 88 Stat. 1366; Pub. L.
94–173, § 1, Dec. 23, 1975, 89 Stat. 1027; Pub. L.
95–60, § 1(a), June 30, 1977, 91 Stat. 257; Pub. L.
95–80, § 1(a), July 31, 1977, 91 Stat. 339; Pub. L.
95–128, title II, §§ 301(a), 306, Oct. 12, 1977, 91 Stat.
1131, 1134; Pub. L. 95–406, § 1(a), Sept. 30, 1978, 92
Stat. 879; Pub. L. 95–557, title III, §§ 301(a), 320,
Oct. 31, 1978, 92 Stat. 2095, 2101; Pub. L. 95–619,

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TITLE 12—BANKS AND BANKING

title II, § 241, Nov. 9, 1978, 92 Stat. 3228; Pub. L.
96–71, § 1(a), Sept. 28, 1979, 93 Stat. 501; Pub. L.
96–105, § 1(a), Nov. 8, 1979, 93 Stat. 794; Pub. L.
96–153, title III, §§ 301(a), 313(a), Dec. 21, 1979, 93
Stat. 1111, 1116; Pub. L. 96–372, § 1(a), Oct. 3, 1980,
94 Stat. 1363; Pub. L. 96–399, title III, §§ 301(a),
308(a)–(c)(1), Oct. 8, 1980, 94 Stat. 1638, 1640; Pub.
L. 97–35, title III, §§ 331(a), 338(a), 339B(c), Aug.
13, 1981, 95 Stat. 412, 414, 417; Pub. L. 97–289, § 1(a),
Oct. 6, 1982, 96 Stat. 1230; Pub. L. 98–35, § 1(a),
May 26, 1983, 97 Stat. 197; Pub. L. 98–109, § 1(a),
Oct. 1, 1983, 97 Stat. 745; Pub. L. 98–181, title IV,
§§ 401(a), 404(b)(1), 415–417, Nov. 30, 1983, 97 Stat.
1207, 1208, 1212; Pub. L. 99–120, § 1(a), Oct. 8, 1985,
99 Stat. 502; Pub. L. 99–156, § 1(a), Nov. 15, 1985, 99
Stat. 815; Pub. L. 99–219, § 1(a), Dec. 26, 1985, 99
Stat. 1730; Pub. L. 99–267, § 1(a), Mar. 27, 1986, 100
Stat. 73; Pub. L. 99–272, title III, § 3007(a), Apr. 7,
1986, 100 Stat. 104; Pub. L. 99–289, § 1(b), May 2,
1986, 100 Stat. 412; Pub. L. 99–345, § 1, June 24,
1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986,
100 Stat. 986; Pub. L. 100–122, § 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, § 401(b), Feb. 5, 1988, 101 Stat.
1898; Pub. L. 101–235, title I, § 134(a), Dec. 15, 1989,
103 Stat. 2027; Pub. L. 101–625, title III, § 340(b)(1),
(c), title VIII, § 806(a), Nov. 28, 1990, 104 Stat.
4147, 4323; Pub. L. 102–389, title II, Oct. 6, 1992, 106
Stat. 1592, 1593; Pub. L. 102–550, title V,
§ 503(c)(1), title X, § 1012(k)(1), Oct. 28, 1992, 106
Stat. 3779, 3906; Pub. L. 106–569, title IX, § 901,
Dec. 27, 2000, 114 Stat. 3026; Pub. L. 110–289, div.
B, title I, §§ 2143, 2144(a), 2145–2148(a), 2150, July
30, 2008, 122 Stat. 2844–2848.)
REFERENCES IN TEXT
The National Manufactured Housing Construction
and Safety Standards Act of 1974, referred to in subsec.
(a), is title VI of Pub. L. 93–383, Aug. 22, 1974, 88 Stat.
700, as amended, which is classified generally to chapter 70 (§ 5401 et seq.) 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 5401 of
Title 42 and Tables.
Section 1706a of this title, referred to in subsec. (e),
was repealed by act June 3, 1939, ch. 175, § 3, 53 Stat. 805,
eff. July 1, 1939.
CODIFICATION
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 below) providing that
the terms ‘‘mobile home’’ and ‘‘manufactured home’’
shall be deemed to include the terms ‘‘mobile homes’’
and ‘‘manufactured homes’’, respectively.
AMENDMENTS
2008—Subsec. (a). Pub. L. 110–289, § 2147(a), in first undesignated par., struck out ‘‘on and after July 1, 1939,’’
after ‘‘made by them’’ and after ‘‘institution for such
purposes’’ and struck out ‘‘made after August 2, 1954’’
after ‘‘credit, or purchase’’.
Pub. L. 110–289, § 2143, in first undesignated par., substituted ‘‘Other than in connection with a manufactured home or a lot on which to place such a home (or
both), in no case’’ for ‘‘In no case’’ and ‘‘. With’’ for
‘‘: Provided, That with’’.

§ 1703

Subsec. (b)(1). Pub. L. 110–289, § 2145(c), substituted
‘‘Except as provided in the last sentence of this paragraph, no’’ for ‘‘No’’ in introductory provisions and inserted concluding provisions.
Subsec. (b)(1)(A)(ii). Pub. L. 110–289, § 2145(a)(1), substituted ‘‘$25,090’’ for ‘‘$17,500’’.
Subsec. (b)(1)(C) to (E). Pub. L. 110–289, § 2145(a)(2)–(5),
realigned margins and substituted ‘‘$69,678’’ for
‘‘$48,600’’ in subpar. (C), ‘‘$92,904’’ for ‘‘$64,800’’ in subpar. (D), and ‘‘$23,226’’ for ‘‘$16,200’’ in subpar. (E).
Subsec. (b)(8). Pub. L. 110–289, § 2144(a), added par. (8).
Subsec. (b)(9). Pub. L. 110–289, § 2145(b), added par. (9).
Subsec. (b)(10). Pub. L. 110–289, § 2148(a), added par.
(10).
Subsec. (b)(11). Pub. L. 110–289, § 2150, added par. (11).
Subsec. (c). Pub. L. 110–289, § 2147(b), amended subsec.
(c) generally. Prior to amendment, subsec. (c) related
to the Secretary’s powers with respect to any debt,
contract, claim, personal property, or security assigned
or held in connection with the payment of insurance.
Subsec. (f). Pub. L. 110–289, § 2146, designated existing
provisions as par. (1), inserted heading, and added par.
(2).
2000—Subsec. (b)(3)(E). Pub. L. 106–569 substituted
‘‘twenty years’’ for ‘‘fifteen years’’.
1992—Subsec. (a). Pub. L. 102–550, § 1012(k)(1), which
directed amendment of fifth undesignated par. by inserting ‘‘Alterations, repairs, and improvements upon
or in connection with existing structures may also include the evaluation and reduction of lead-based paint
hazards.’’, and by adding par. (4), was executed to
fourth undesignated par. to reflect the probable intent
of Congress.
Subsec. (b)(1)(C) to (E). Pub. L. 102–550, § 503(c)(1),
added subpars. (C) to (E) and struck out former subpars. (C) to (E) which read as follows:
‘‘(C) 70 percent of the median 1-family house price in
the area, as determined by the Secretary under section
1709(b)(2) of this title, if made for the purpose of financing the purchase of a manufactured home;
‘‘(D) 80 percent of the median 1-family house price in
the area, as determined by the Secretary under section
1709(b)(2) of this title, if made for the purpose of financing the purchase of a manufactured home and a suitably developed lot on which to place the home;
‘‘(E) the greater of (i) 20 percent of the median 1-family house price in the area, as determined by the Secretary under section 1709(b)(2) of this title, or (ii)
$13,500, if made for the purpose of financing the purchase, by an owner of a manufactured home which is
the principal residence of the owner, of a suitably developed lot on which to place that manufactured home,
and if the owner certifies that the owner will place the
manufactured home on the lot acquired with such loan
within 6 months after the date of such loan;’’.
Pub. L. 102–389 added subpars. (C) to (E) and struck
out former subpars. (C) to (E) which read as follows:
‘‘(C) $40,500 if made for the purpose of financing the
purchase of a manufactured home;
‘‘(D) $54,000 if made for the purpose of financing the
purchase of a manufactured home and a suitably developed lot on which to place the home;
‘‘(E) $13,500, if made for the purpose of financing the
purchase, by an owner of a manufactured home which
is the principal residence of that owner, of a suitably
developed lot on which to place that manufactured
home, and if the owner certifies that he or she will
place the manufactured home on the lot acquired with
such loan within six months after the date of such
loan;’’.
Subsec. (b)(2). Pub. L. 102–389 substituted ‘‘but in no
case may such limits, as so increased, exceed the lesser
of (A) 185 percent of the dollar amount specified, or (B)
the dollar amount specified as increased by the same
percentage by which 95 percent of the median one-family house price in the area (as determined by the Secretary) exceeds $67,500’’ for ‘‘but not to exceed the percentage by which the maximum mortgage amount of a
one-family residence in the area is increased by the
Secretary under section 1709(b)(2) of this title’’.

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TITLE 12—BANKS AND BANKING

1990—Subsec. (b)(1)(A). Pub. L. 101–625, § 340(b)(1)(A),
added subpar. (A) and struck out former subpar. (A)
which read as follows: ‘‘$17,500 ($20,000 where financing
the installation of a solar energy system is involved) if
made for the purpose of financing alterations, repairs
and improvements upon or in connection with existing
single-family structures or manufactured homes;’’.
Subsec. (b)(1)(B). Pub. L. 101–625, § 340(b)(1)(B), substituted ‘‘$60,000 or an average amount of $12,000 per
family unit’’ for ‘‘$43,750 or an average amount of $8,750
per family unit ($50,000 and $10,000, respectively, where
financing the installation of a solar energy system is
involved)’’.
Subsec. (b)(3)(A). Pub. L. 101–625, § 340(c)(1), added subpar. (A) and struck out former subpar. (A) which read
as follows: ‘‘fifteen years and thirty-two days if made
for the purpose of financing alterations, repairs, and
improvements upon or in connection with an existing
single-family structure or manufactured home;’’.
Subsec. (b)(3)(B). Pub. L. 101–625, § 340(c)(2), substituted ‘‘twenty years’’ for ‘‘fifteen years’’.
Subsec. (i). Pub. L. 101–625, § 806(a), added subsec. (i).
1989—Subsec. (b)(7). Pub. L. 101–235 added par. (7).
1988—Subsec. (a). Pub. L. 100–242 struck out ‘‘and not
later than March 15, 1988,’’ after ‘‘made by them on or
after July 1, 1939,’’.
1987—Subsec. (a). Pub. L. 100–200 substituted ‘‘March
15, 1988’’ for ‘‘December 16, 1987’’.
Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for
‘‘December 2, 1987’’.
Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for
‘‘November 15, 1987’’.
Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for
‘‘October 31, 1987’’.
Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for
‘‘September 30, 1987’’.
1986—Subsec. (a). Pub. L. 99–430 substituted ‘‘September 30, 1987’’ for ‘‘September 30, 1986’’.
Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for
‘‘June 6, 1986’’.
Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30,
1986’’.
Pub. L. 99–272 made amendment identical to Pub. L.
99–219. See 1985 Amendment note below.
Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March
17, 1986’’.
1985—Subsec. (a). Pub. L. 99–219 substituted ‘‘not later
than March 17, 1986’’ for ‘‘prior to December 16, 1985’’.
Pub. L. 99–156 substituted ‘‘December 16, 1985’’ for
‘‘November 15, 1985’’.
Pub. L. 99–120 substituted ‘‘November 15, 1985’’ for
‘‘October 1, 1985’’.
1983—Subsec. (a). Pub. L. 98–181, § 415, inserted new
undesignated par. authorizing insurance be made available to existing manufactured homes not insured under
this section if such homes were constructed in accordance with the standards issued under the National
Manufactured Housing Construction and Safety Standards Act of 1974 and meet standards similar to the minimum property standards applicable to existing homes
issued under subchapter II of this chapter.
Pub. L. 98–181, § 401(a), substituted ‘‘October 1, 1985’’
for ‘‘December 1, 1983’’.
Pub. L. 98–109 substituted ‘‘December 1, 1983’’ for ‘‘October 1, 1983’’.
Pub. L. 98–35 substituted ‘‘October 1, 1983’’ for ‘‘May
21, 1983’’.
Subsec. (b)(1)(C). Pub. L. 98–181, § 416(a)(1), substituted
‘‘$40,500’’ for ‘‘$22,500 ($35,000 in the case of a manufactured home composed of two or more modules)’’.
Subsec. (b)(1)(D). Pub. L. 98–181, § 416(a)(2), substituted ‘‘$54,000’’ for ‘‘$35,000 ($47,500 in the case of a
manufactured home composed of two or more modules)’’.
Subsec. (b)(1)(E). Pub. L. 98–181, § 416(a)(3), substituted
‘‘$13,500’’ for ‘‘such an amount as may be necessary, but
not exceeding $12,500,’’.
Subsec. (b)(2). Pub. L. 98–181, § 416(b), substituted provision authorizing the Secretary, in other areas, to increase the maximum dollar amounts specified in sub-

Page 530

sec. (b)(1)(D) and (E) on an area-by-area basis as
deemed necessary, but not to exceed the percentage by
which the maximum mortgage amount of a one-family
residence in the area is increased by the Secretary
under section 1709(b)(2) of this title for provision which
authorized the Secretary, by regulation, in other areas
where needed to meet the higher costs of land acquisition, etc., in connection with the purchase of a manufactured home or lot, to increase any dollar amount
limitation otherwise applicable by an additional $7,500.
Subsec. (b)(5). Pub. L. 98–181, § 404(b)(1), amended par.
(5) generally, substituting provision that any obligation with respect to which insurance is granted under
this section bear interest at such rate as agreed upon
by the borrower and the financial institution for provision that any such obligation bear interest and insurance premium charges as do not exceed an amount determined by a specified formula.
Subsec. (b)(6)(C). Pub. L. 98–181, § 417, added subpar.
(C).
1982—Subsec. (a). Pub. L. 97–289 substituted ‘‘May 21,
1983’’ for ‘‘October 1, 1982’’.
1981—Subsec. (a). Pub. L. 97–35, § 331(a), substituted
‘‘1982’’ for ‘‘1981’’.
Subsec. (b). Pub. L. 97–35, § 338(a), completely revised
and reorganized provisions respecting computations,
adjustments, applicability, etc., for granting of insurance to financial institutions for obligations representing loans, advances of credit, or purchases.
1980—Subsec. (a). Pub. L. 96–399, §§ 301(a), 308(c)(1),
substituted ‘‘October 1, 1981’’ for ‘‘October 16, 1980’’, and
substituted ‘‘manufactured home’’ for ‘‘mobile home’’
wherever appearing.
Pub. L. 96–372 substituted ‘‘October 16, 1980’’ for ‘‘October 1, 1980’’.
Subsec. (b). Pub. L. 96–399, § 308(a)–(c)(1), inserted provisions respecting areas of high land costs or high setup costs, substituted ‘‘manufactured home’’ for ‘‘mobile home’’ wherever appearing, and increased amounts
with respect to financing purchases of such homes from
$18,000 to $20,000 (from $27,000 to $30,000 where there are
two or more modules), where an undeveloped lot is concerned from $24,000 to $26,675 (from $33,000 to $36,675
where there are two or more modules), where a suitably
developed lot is concerned from $27,500 to $30,550 (from
$36,500 to $40,550 where there are two or more modules),
and where a principal place of residence of the owner is
concerned from $6,250 to $6,950 and $9,375 to $10,425, respectively, for undeveloped and developed lots.
1979—Subsec. (a). Pub. L. 96–153, § 301(a), substituted
‘‘October 1, 1980’’ for ‘‘December 1, 1979’’.
Pub. L. 96–105 substituted ‘‘December 1, 1979’’ for ‘‘November 1, 1979’’.
Pub. L. 96–71 substituted ‘‘November 1, 1979’’ for ‘‘October 1, 1979’’.
Subsec. (b). Pub. L. 96–153, § 313(a), substituted: in cl.
(1) of first sentence of first unlettered paragraph
‘‘$18,000 ($27,000 in the case of a mobile home containing’’ for ‘‘$16,000 ($24,000 in the case of a mobile home
composing’’, in subpar. (A) of second unlettered paragraph ‘‘such an amount not exceeding $24,000 ($33,000 in
the case of a mobile home composed of two or more
modules)’’ for ‘‘an amount not exceeding (i) the maximum amount under clause (1) of the first paragraph of
this subsection, and (ii) such amount not to exceed
$5,000 as may be necessary to cover the cost of purchasing the lot’’, in subpar. (B) of second unlettered paragraph ‘‘twenty years and thirty-two days (twenty-five’’
for ‘‘fifteen years and thirty-two days (twenty-three’’,
in subpar. (A) of third unlettered paragraph ‘‘such an
amount not exceeding $27,500 ($36,500 in the case of a
mobile home composed of two or more modules)’’ for
‘‘an amount not exceeding (i) the maximum amount
under clause (1) of the first paragraph of this subsection, and (ii) such amount not to exceed $7,500 as
may be necessary to cover the cost of purchasing the
lot’’, in subpar. (B) of such unlettered paragraph ‘‘twenty years and thirty-two days (twenty-five’’ for ‘‘fifteen
years and thirty-two days (twenty-three’’, in subpar.
(A) of the fourth unlettered paragraph ‘‘$6,250 in the

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TITLE 12—BANKS AND BANKING

case of an undeveloped lot, or (ii) $9,375’’ for ‘‘$5,000 in
the case of an undeveloped lot, or (ii) $7,500’’, and in
subpar. (B) of such paragraph ‘‘fifteen years and thirtytwo days’’ for ‘‘ten years and thirty-two days’’.
1978—Subsec. (a). Pub. L. 95–557, § 301(a), substituted
‘‘October 1, 1979’’ for ‘‘November 1, 1978’’.
Pub. L. 95–406 substituted ‘‘November 1, 1978’’ for ‘‘October 1, 1978’’.
Subsec. (a)(2). Pub. L. 95–619 defined ‘‘energy conserving improvements’’ in terms of purchase and installation of weatherization materials as defined in section
6862(9) of title 42 rather than additions, alterations, or
improvements of an existing or new structure, designed
to reduce the total energy requirements of a structure
in conformity with standards prescribed by the Secretary.
Subsec. (a)(3). Pub. L. 95–619 expanded definition of
‘‘solar energy system’’ to include the utilization of
wind energy and added the distinction between active
and passive types of energy systems.
Subsec. (b). Pub. L. 95–557, § 320, substituted ‘‘not in
excess of $37,500 nor an average amount of $7,500 per
family unit and having a maturity not in excess of fifteen years’’ for ‘‘not in excess of $25,000 nor an average
amount of $5,000 per family unit and having a maturity
not in excess of twelve years’’.
1977—Subsec. (a). Pub. L. 95–128, § 301(a), substituted
‘‘October 1, 1978’’ for ‘‘October 1, 1977’’.
Pub. L. 95–80 substituted ‘‘October 1, 1977’’ for ‘‘August 1, 1977’’.
Pub. L. 95–60 substituted ‘‘August 1, 1977’’ for ‘‘June
30, 1977’’.
Subsec. (b). Pub. L. 95–128, § 306, substituted: in cl. (1)
of first sentence ‘‘$15,000’’ for ‘‘$10,000’’ and ‘‘$16,000
($24,000’’ for ‘‘$12,500 ($20,000’’, and in cl. (2) ‘‘fifteen
years’’ for ‘‘twelve years’’; inserted at end of proviso in
cl. (2) ‘‘(twenty-three years and thirty-two days in the
case of a mobile home composed of two or more modules)’’; substituted in subpar. (B) of the second and
third paragraphs ‘‘twenty-three years’’ for ‘‘twenty
years’’; and inserted paragraph at end of subsec. (b)
which authorized the Secretary to increase by regulation any dollar amount limitation on mobile homes or
mobile home lot loans contained in this subsection by
not to exceed 40 per centum.
1975—Subsec. (b). Pub. L. 94–173 substituted ‘‘$12,500
($20,000’’ for ‘‘$10,000 ($15,000’’ in cl. 1.
1974—Subsec. (a). Pub. L. 93–449, § 4(a)(1), inserted provisions relating to financing preservation of historic
structures and defining ‘‘historic structures’’ and
‘‘preservation’’.
Pub. L. 93–383, §§ 309(b)(1), (2), (c), 316(a), substituted
‘‘June 30, 1977’’ for ‘‘October 1, 1974’’ in provisions preceding initially designated cl. (i), inserted ‘‘or mobile
homes’’ after ‘‘in connection with existing structures’’
in initial cl. (i), provisions relating to the financing of
the purchase of a lot on which a mobile home is to be
placed and payment of reasonable expenses for the appropriate preparation of such lot, and paragraph relating to alteration, repair, and improvement upon or in
connection with existing structures with respect to inclusion of fire safety equipment, etc.
Subsec. (b). Pub. L. 93–449, § 4(a)(2), added par. relating to loans financing preservation of historic structures.
Pub. L. 93–383, § 309(a), (b)(3), (d), in cl. (1) substituted
‘‘exceeds $10,000’’ for ‘‘exceeds $5,000’’, in cl. (2) substituted provisions relating to maturity of obligation
in excess of twelve years and thirty-two days for provisions relating to maturity of obligation in excess of
three years and thirty-two days and authorization of
increase to seven years and thirty-two days under conditions determined by the Secretary and substituted
‘‘fifteen years and thirty-two days’’ for ‘‘twelve years
and thirty-two days (fifteen years and thirty-two days
in the case of a mobile home composed of two or more
modules)’’, in cl. (3) substituted ‘‘$25,000’’ for ‘‘$15,000’’,
‘‘$5,000’’ for ‘‘$2,500’’, and ‘‘twelve years’’ for ‘‘seven
years’’, inserted provision relating to loans to finance
fire safety equipment for a nursing home, etc., and in-

§ 1703

serted paragraphs relating to financing the purchase of
a mobile home and an undeveloped lot on which the
mobile home is to be placed, financing the purchase of
a mobile home and a suitably developed lot on which
the mobile home is to be placed, and financing the purchase by the owner of a mobile home of a lot on which
the mobile home is to be placed.
1973—Subsec. (a). Pub. L. 93–117 substituted ‘‘October
1, 1974’’ for ‘‘October 1, 1973’’.
Pub. L. 93–85 substituted ‘‘October 1, 1973’’ for ‘‘June
30, 1973’’.
1972—Subsec. (a). Pub. L. 92–503 substituted ‘‘June 30,
1973’’ for ‘‘October 1, 1972’’.
1970—Subsec. (a). Pub. L. 91–609, § 101(a), substituted
‘‘October 1, 1972’’ for ‘‘January 1, 1971’’.
Pub. L. 91–525 substituted ‘‘January 1, 1971’’ for ‘‘December 1, 1970’’.
Pub. L. 91–473 substituted ‘‘December 1, 1970’’ for ‘‘November 1, 1970’’.
Pub. L. 91–432 substituted ‘‘November 1, 1970’’ for ‘‘October 1, 1970’’.
Subsec. (b). Pub. L. 91–609, § 113(1), (2), in cl. (1) prohibited insurance with respect to obligations representing a loan where loan exceeds ‘‘($15,000 in the case of a
mobile home composed of two or more modules)’’, and
in cl. (2) prescribed maturity date for obligation financing purchase of a mobile home of ‘‘(fifteen years and
thirty-two days in the case of a mobile home composed
of two or more modules)’’.
1969—Subsec. (a). Pub. L. 91–152, §§ 101(a), 103(c)(1)(4),
substituted ‘‘October 1, 1970’’ for ‘‘January 1, 1970’’, designated as ‘‘(i)’’ provisions authorizing and empowering
the Secretary to insure institutions financing alterations, repairs, and improvements, etc., inserted provisions designated as ‘‘(ii)’’ dealing with institutions
which finance the purchase of mobile homes used by
the owner as his principal residence, inserted ‘‘(other
than mobile homes)’’ after ‘‘(1) with respect to new residential structures’’, and inserted provisions authorizing and directing the Secretary to prescribe minimum
property standards and conformance to local zoning requirements with respect to mobile homes financed by
insured institutions.
Pub. L. 91–78 substituted ‘‘January 1, 1970’’ for ‘‘October 1, 1969’’.
Subsec. (b). Pub. L. 91–152, § 103(c)(5), (6), in cl. (1) inserted provision excepting obligations financing the
purchase of mobile homes in an amount not exceeding
$10,000, and in cl. (2) inserted proviso limiting obligations financing the purchase of mobile homes to a maturity date not in excess of twelve years and thirty-two
days.
Subsec. (c)(2). Pub. L. 91–152, § 103(c)(7), substituted
‘‘real or personal property’’ for ‘‘real property’’ wherever appearing.
1968—Subsec. (b). Pub. L. 90–448 substituted ‘‘$5,000’’
for ‘‘$3,500’’, ‘‘seven years’’ for ‘‘five years’’, ‘‘$5.50 discount’’ for ‘‘$5 discount’’, and ‘‘$4.50 discount’’ for ‘‘$4
discount’’.
1967—Pub. L. 90–19, § 1(a)(3), substituted ‘‘Secretary’’
for ‘‘Commissioner’’ wherever appearing in subsecs. (a),
(b), (c)(1), (2), and (d) to (h).
Subsec. (c)(2). Pub. L. 90–19, § 1(d), substituted ‘‘an officer’’ for ‘‘the Commissioner or by any Assistant Commissioner’’.
1965—Subsec. (a). Pub. L. 89–117, § 202(a), substituted
‘‘October 1, 1969’’ for ‘‘October 1, 1965’’.
Subsec. (f). Pub. L. 89–117, § 1108(a), struck out provisions directing the deposit of premium charges and fees
and property held with respect to insurance into a
United States Treasury account to be used to defray
Federal Housing Administration expenses and to pay
insurance claims and making allowance for transfer
and merger of funds and disposition of surplus funds.
1964—Subsec. (g). Pub. L. 88–560 struck out ‘‘after December 31, 1957,’’ after ‘‘Any payment for loss made’’.
1961—Subsec. (a). Pub. L. 87–70 substituted ‘‘October
1, 1965’’ for ‘‘October 1, 1961’’.
1960—Subsec. (a). Pub. L. 86–788 substituted ‘‘October
1, 1961’’ for ‘‘October 1, 1960’’, and struck out provisions

§ 1703

TITLE 12—BANKS AND BANKING

limiting the aggregate amount of all loans, advances of
credit, and obligations purchased, with respect to
which insurance could be granted under the section, at
$1,750,000,000.
1959—Subsec. (a). Pub. L. 86–372 substituted ‘‘October
1, 1960’’ for ‘‘September 30, 1959’’.
1957—Subsecs. (g), (h). Pub. L. 85–104 added subsec. (g)
and redesignated former subsec. (g) as (h).
1956—Subsec. (a). Act Aug. 7, 1956, § 101(a), substituted
‘‘September 30, 1959’’ for ‘‘September 30, 1956’’ and proviso of second par. authorizing waiver of clause (iii) in
discretion of Commissioner with respect to occupancy
of completion of new residential structures, for former
proviso providing that the clause (iii) occupancy requirement should not be mandatory with respect to
new residences damaged by a major disaster.
Act Feb. 10, 1956, removed the six months’ occupancy
requirement with respect to new residences damaged by
a major disaster.
Subsec. (b). Act Aug. 7, 1956, § 101(b), (c), increased
amount of loans which can be insured to $3,500 in lieu
of former provisions providing $2,500 for improvement
of existing structures and $3,000 for construction of new
structures, increased maximum term of loans which
can be insured from 3 years and thirty-two days to 5
years and thirty-two days, inserted proviso limiting interest and premium charges equivalent to $5 discount
per $100 for proceeds of loan up to $2,500 and $4 discount
per $100 for proceeds in excess of $2,500, and substituted
‘‘$15,000 nor an average amount of $2,500 per family
unit’’ for ‘‘$10,000’’.
1955—Subsec. (a). Act Aug. 11, 1955, substituted ‘‘September 30, 1956’’ for ‘‘August 1, 1955’’.
Act June 30, 1955, substituted ‘‘August 1, 1955’’ for
‘‘July 1, 1955’’.
1954—Subsec. (a). Act Aug. 2, 1954, § 101(a), in second
sentence, inserted proviso restricting claims for losses
on individual loans, advances of credit, and purchases
to 90 per centum of loss in each such case, and added
second par.
Subsec. (f). Act Aug. 2, 1954, § 102, inserted last two
sentences with respect to termination of the Title I
Claims Account as of August 1, 1954.
1953—Subsec. (a). Act Mar. 10, 1953, increased the Subchapter
I
loan
insurance
authorization
from
$1,250,000,000 to $1,750,000,000.
1950—Act Apr. 20, 1950, § 122, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing.
Subsec. (a). Act Apr. 20, 1950, § 101(a)(1), (2), substituted ‘‘July 1, 1955’’ for ‘‘Mar. 1, 1950’’, and limited
the total amount of outstanding loans with respect to
which insurance is granted under this section to
$1,250,000,000 outstanding at any one time.
Subsec. (b)(1). Act Apr. 20, 1950, § 101(a)(3), substituted
‘‘$3,000’’ for ‘‘$4,500’’.
Subsec. (b)(2). Act Apr. 20, 1950, § 101(a)(4), struck out
‘‘residential or’’ before ‘‘agricultural purposes’’.
Subsec. (f). Act Apr. 20, 1950, § 101(a)(5), substituted
‘‘section’’ for ‘‘subchapter’’ wherever appearing.
1949—Subsec. (a). Joint Res. Oct. 25, 1949, substituted
‘‘March 1, 1950’’ for ‘‘November 1, 1949’’ in first sentence
and ‘‘$225,000,000’’ for ‘‘$200,000,000’’ in last sentence.
Act Aug. 30, 1949, substituted ‘‘November 1, 1949’’ for
‘‘September 1, 1949’’.
Act July 15, 1949, substituted ‘‘September 1, 1949’’ for
‘‘July 1, 1949’’.
1948—Subsec. (a). Act Aug. 10, 1948, § 101(s)(1), substituted ‘‘$200,000,000’’ for ‘‘$165,000,000’’.
Subsec. (b). Act Aug. 10, 1948, § 101(s)(2)–(4), substituted ‘‘$4,500’’ for ‘‘$3,000’’, struck out first proviso
and inserted in lieu a new proviso, and struck out last
sentence.
1947—Subsec. (a). Act June 26, 1947, extended provisions of section for two years from 1947 to 1949.
1943—Subsec. (a). Act Oct. 15, 1943, substituted ‘‘1947’’
for ‘‘1944’’ in first sentence.
Act Mar. 23, 1943, substituted ‘‘1944’’ for ‘‘1943’’ in first
sentence.
Subsec. (f). Act Oct. 15, 1943, § 4, struck out ‘‘threefourths of’’ before ‘‘1 per centum’’ in first sentence.

Page 532

1942—Subsec. (b). Act May 26, 1942, amended provisions generally.
1941—Subsec. (a). Act June 28, 1941, §§ 1, 2, substituted
‘‘July 1, 1943’’ for ‘‘July 1, 1941’’ in first sentence; inserted ‘‘and other sources’’ after ‘‘premiums’’; and substituted ‘‘$165,000,000’’ for ‘‘$100,000,000’’.
Subsec. (b). Act June 28, 1941, § 3, substituted ‘‘made
for the purpose of financing the alteration, repair, or
improvement of existing structures exceeds $2,500 (or in
the case of the alteration, repair, or improvement of an
existing dwelling designed or to be designed for more
than one family, exceeds $5,000), or for the purpose of financing the construction of new structures exceeds
$3,000’’ for ‘‘exceeds $2,500’’; substituted in cl. (2) ‘‘where
the loan, advance of credit, or purchase does not exceed
$2,500, or has a maturity in excess of five years and
thirty-two days, where the loan, advance of credit, or
purchase exceeds $2,500 but does not exceed $5,000; except that such maturity limitations shall not apply if’’
for ‘‘unless’’; and inserted proviso at end.
Subsec. (c). Act June 28, 1941, § 4, designated existing
provisions as par. (1), inserted ‘‘personal’’ before ‘‘property’’, and added par. (2).
Subsec. (f). Act June 28, 1941, § 5, inserted ‘‘and all
moneys collected by the Administrator as fees of any
kind in connection with the granting of insurance as
provided in this section, and all moneys derived from
the sale, collection, disposition, or compromise of any
evidence of debt, contract, claim, property, or security
assigned to or held by the Administrator as provided in
subsection (c) of this section with respect to insurance
collected on and after July 1, 1939’’ in last sentence.
1939—Subsecs. (a), (b). Act June 3, 1939, § 1, amended
provisions generally.
Subsecs. (f), (g). Act June 3, 1939, § 2, added subsecs. (f)
and (g).
1938—Subsecs. (a), (b). Act Feb. 3, 1938, amended provisions generally.
1937—Subsec. (a). Act Apr. 22, 1937, in third sentence,
limited the total liability for all insurance under this
section and former section 1026a of this title, not to exceed in the aggregate $100,000,000.
1936—Subsecs. (a) to (d). Act Apr. 3, 1936, amended
provisions generally.
Subsec. (e). Act Apr. 17, 1936, added subsec. (e).
1935—Subsec. (a). Act Aug. 23, 1935, substituted ‘‘and
the purchase and installation of equipment and machinery on real property’’ for ‘‘including the installation of equipment and machinery’’ in first sentence.
Act May 28, 1935, substituted ‘‘April’’ for ‘‘January’’
in first sentence and inserted ‘‘including the installation of equipment and machinery’’, and amended generally the last sentence.
EFFECTIVE DATE OF 2008 AMENDMENT
Pub. L. 110–289, div. B, title I, § 2144(b), July 30, 2008,
122 Stat. 2844, provided that: ‘‘The amendment made by
subsection (a) [amending this section] shall only apply
to loans that are registered or endorsed for insurance
after the date of the enactment of this title [July 30,
2008].’’
EFFECTIVE DATE OF 1990 AMENDMENT
Section 340(b)(2) of Pub. L. 101–625 provided that:
‘‘The amendments made by this subsection [amending
this section] shall apply to loans executed on or after
June 1, 1991.’’
EFFECTIVE DATE OF 1989 AMENDMENT
Section 134(b) of Pub. L. 101–235 provided that: ‘‘The
amendment made by subsection (a) [amending this section] shall apply only with respect to—
‘‘(1) violations referred to in the amendment that
occur on or after the date of the enactment of this
Act [Dec. 15, 1989]; and
‘‘(2) in the case of a continuing violation (as determined by the Secretary of Housing and Urban Development), any portion of a violation referred to in the
amendment that occurs on or after such date.’’

Page 533

§ 1705

TITLE 12—BANKS AND BANKING

EFFECTIVE DATE OF 1981 AMENDMENT

TIMING

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.

Pub. L. 110–289, div. B, title I, § 2148(b), July 30, 2008,
122 Stat. 2847, provided that: ‘‘Not later than the expiration of the 6-month period beginning on the date of
the enactment of this title [July 30, 2008], the Secretary
of Housing and Urban Development shall revise the existing underwriting criteria for the program referred to
in paragraph (10) of section 2(b) of the National Housing
Act [12 U.S.C. 1703(b)(10)] (as added by subsection (a) of
this section) in accordance with the requirements of
such paragraph.’’

EFFECTIVE DATE OF 1954 AMENDMENT
Section 101(b) of act Aug. 2, 1954, provided that, as
used in the amendments made by such act (see 1954
Amendments note above), the words ‘‘effective date of
the Housing Act of 1954 [Act Aug. 2, 1954]’’ mean the
first day after the first full calendar month following
the date of approval of such act (Aug. 2, 1954).
EFFECTIVE DATE OF 1950 AMENDMENT
Section 101(b) of act Apr. 20, 1950, provided that ‘‘This
section [amending this section] shall take effect as of
March 1, 1950.’’
EFFECTIVE DATE OF 1949 AMENDMENT
Section 202 of title II of act July 15, 1949, provided
that: ‘‘This title [amending this section and sections
1709 and 1738 of this title] shall take effect as of June
30, 1949.’’
EFFECTIVE DATE OF 1939 AMENDMENT
Section 4 of act June 3, 1939, provided that: ‘‘The provisions of sections 1, 2, and 3 of this Act [amending this
section and repealing section 1706a of this title] shall
take effect on July 1, 1939.’’

‘‘MOBILE HOME’’ AND ‘‘MANUFACTURED HOME’’ TO INCLUDE
‘‘MOBILE HOMES’’ AND ‘‘MANUFACTURED
HOMES’’
Section 339B(c) of Pub. L. 97–35 provided that: ‘‘For
purposes of paragraphs (1) and (4) of section 308(c) of
the Housing and Community Development Act of 1980
[amending sections 1703 and 1713 of this title, and section 5401 et seq. of Title 42, The Public Health and Welfare], the term ‘mobile home’ and the term ‘manufactured home’ shall be deemed to include the term ‘mobile homes’ and the term ‘manufactured homes’, respectively.’’
DATA COLLECTION AND REPORTING PROCEDURES RESPECTING MEAN AND MEDIAN SALES PRICES ON MANUFACTURED HOMES AND LOTS; DEVELOPMENT, CONTENTS, ETC.

Section 818 of act Aug. 2, 1954, provided that: ‘‘Insofar
as the provisions of any other law are inconsistent with
the provisions of this Act [see 1954 Short Title note set
out under section 1701 of this title], the provisions of
this Act shall be controlling.’’

Section 308(e) of Pub. L. 96–399 provided that: ‘‘Not
later than January 1, 1982, the Secretary of Housing
and Urban Development shall develop a procedure for
collecting and regularly reporting data on the mean
and median sales price for new manufactured homes,
and, where available, data on the mean and median
sales price for manufactured home lots and combination new manufactured home and lot packages. Such
reports shall contain, to the maximum extent feasible,
sales price information for the Nation, each census region, each State on an annual basis, and selected standard metropolitan statistical areas having sufficient activity on an annual basis.’’

POWERS AND AUTHORITIES OF ACT AUGUST 2, 1954 AS
CUMULATIVE; SEPARABILITY

REPORT RESPECTING OWNERSHIP OF MOBILE HOME
SITES

Section 819 of act Aug. 2, 1954, provided that: ‘‘Except
as may be otherwise expressly provided in this Act [see
Short Title of 1954 Amendments note set out under section 1701 of this title], all powers and authorities conferred by this Act shall be cumulative and additional to
and not in derogation of any powers and authorities
otherwise existing. Notwithstanding any other evidences of the intention of Congress, it is hereby declared to be the controlling intent of Congress that if
any provisions of this Act, or the application thereof to
any persons or circumstances, shall be adjudged by any
court of competent jurisdiction to be invalid, such
judgment shall not affect, impair, or invalidate the remainder of this Act or its application to other persons
and circumstances.’’

Section 321 of Pub. L. 96–153, required the Secretary
of Housing and Urban Development to submit a report
to Congress by Mar. 31, 1980, containing recommendations for programs and policies which encourage individual ownership of mobile home lots through several
methods.

EFFECTIVE DATE OF 1936 AMENDMENT
Section 1 of act Apr. 3, 1936, provided that the amendment made by that section is effective Apr. 1, 1936.
INCONSISTENT LAWS

PURPOSES
Pub. L. 110–289, div. B, title I, § 2142, July 30, 2008, 122
Stat. 2844, provided that: ‘‘The purposes of this subtitle
[subtitle B (§§ 2141–2150) of title I of div. B of Pub. L.
110–289, see Short Title of 2008 Amendment note set out
under section 1701 of this title] are—
‘‘(1) to provide adequate funding for FHA-insured
manufactured housing loans for low- and moderateincome homebuyers during all economic cycles in the
manufactured housing industry;
‘‘(2) to modernize the FHA title I insurance program for manufactured housing loans to enhance participation by Ginnie Mae and the private lending
markets; and
‘‘(3) to adjust the low loan limits for title I manufactured home loan insurance to reflect the increase
in costs since such limits were last increased in 1992
and to index the limits to inflation.’’

REPAYMENT TO TREASURY ON CAPITAL ACCOUNT OF
SUBCHAPTER I INSURANCE FUND
Section 2 of act Mar. 10, 1953, authorized the Federal
Housing Commissioner to pay out of the capital account of the Title I Insurance Fund to the Secretary of
the Treasury, prior to June 30, 1954, the sum of
$8,333,313.65 either in one lump sum or in installments
and that the first payment be made on July 1, 1953.

§ 1704. Repealed. Apr. 3, 1936, ch. 165, § 2, 49 Stat.
1188
Section, act June 27, 1934, ch. 847, title I, § 3, 48 Stat.
1247, related to loans to financial institutions.

§ 1705. Allocation of funds
For the purposes of carrying out the provisions of this subchapter and subchapters II and
III of this chapter the President, in his discretion, is authorized to provide such funds or any
portion thereof by allotment to the Secretary
from any funds that are available, or may hereafter be made available, to the President for
emergency purposes.
(June 27, 1934, ch. 847, title I, § 4, 48 Stat. 1247;
June 30, 1947, ch. 166, title II, § 206(l), 61 Stat. 208;