12 U.S.C. § 1745 — Insurance of mortgages on sales of Government housing; limits and conditions; Greenbelt towns; State housing

submitted 92 years ago by ch. 847 to r/title-12-BANKS-AND-BANKING · 761 words · no verdicts yet

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The Secretary may insure certain mortgages connected with sales of Government or public housing despite several usual limits. The mortgages must meet specified terms, including limits on maturity, principal, and interest.

Upon a mortgagee’s application, the Secretary may insure, or commit to insure, under sections 1738 or 1743 mortgages connected with the sale of housing acquired or built under the listed Public Laws, including related property. This may be done without regard to: (1) when the mortgage is insured; (2) the usual total principal limit, but all mortgages insured under this section together may not exceed $750,000,000; (3) a requirement for prior approval before construction or for new construction; or (4) the listed provisions of sections 1738 and 1743. The mortgage must otherwise qualify under the applicable section, mature within 25 years after insurance, have principal (including approved initial service, appraisal, inspection, and other fees) no greater than 90 percent of the Secretary’s appraised value, and bear interest no higher than 5 percent per year for property with no more than four residential families or 4½ percent for property with more than four. The Secretary may also insure qualifying mortgages connected with sales of housing owned or financially assisted under Public Law 671; sales of the Greenbelt towns and listed village properties; and a project or property resale within two years after acquisition from the Government. The Secretary may also insure under section 1743 mortgages connected with State or municipal sales of permanent housing built for World War II veterans, their families, and others, if the principal obligation does not exceed 85 percent of the Secretary’s appraised value of the mortgage property and does not exceed $8,100 per family unit for the part of the property attributable to dwelling use.

the actual law source: uscode.house.gov ↗public domain

Notwithstanding any of the provisions of this subchapter, the Secretary is authorized, upon application by the mortgagee, to insure or to make commitments to insure under section 1738 or section 1743 of this title any mortgage executed in connection with the sale by the Government, or any agency or official thereof, of any housing acquired or constructed under Public Law 849, Seventy-sixth Congress, as amended; Public Law 781, Seventy-sixth Congress, as amended; or Public Laws 9, 73, or 353, Seventy-seventh Congress, as amended (including any property acquired, held or constructed in connection with such housing or to serve the inhabitants thereof), without regard to—

(1)

any limit as to the time when any mortgage may be insured under this subchapter;

(2)

any limit as to the aggregate amount of principal obligations of all mortgages insured under this subchapter, but the aggregate amount of principal obligations of all mortgages insured pursuant to this section shall not exceed $750,000,000;

(3)

any requirement that the obligation be approved for mortgage insurance prior to the beginning of construction or that the construction be new construction;

(4)

any of the provisions of subsections (b)(2) or (b)(5) of section 1738 of this title or paragraphs (B) and (C) of the first sentence of section 1743(b)(3) of this title:

Provided, That such mortgage shall (1) otherwise be eligible for insurance under section 1738 or section 1743 of this title as the case may be, (2) have a maturity not exceeding twenty-five years from the date of insurance, (3) involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in an amount not exceeding 90 per centum of the appraised value of the mortgage property as determined by the Secretary, and (4) bear interest (exclusive of premium charges) at not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any time if such mortgage covers property on which there is located a dwelling designed principally for residential use for not more than four families in the aggregate, irrespective of whether such dwelling or dwellings have a party wall or are otherwise physically connected with another dwelling or dwellings, or bear interest at not to exceed 4½ per centum per annum on the amount of the principal obligation outstanding at any time if such mortgage covers property upon which there is located a dwelling or dwellings designed principally for residential use for more than four families.

The Secretary is further authorized to insure or to make commitments to insure in accordance with the provisions of this section any mortgage executed in connection with the sale by the Secretary, or by any public housing agency with the approval of the Secretary, of any housing (including any property acquired, held, or constructed in connection with such housing or to serve the inhabitants thereof) owned or financially assisted pursuant to the provisions of Public Law 671, Seventy-sixth Congress.

The Secretary is further authorized to insure or to make commitments to insure in accordance with the provisions of this section any mortgage executed in connection with the sale by the Government, or any agency or official thereof, of any of the so-called Greenbelt towns, or parts thereof, including projects, or parts thereof, known as Greenhills, Ohio; Greenbelt, Maryland; and Greendale, Wisconsin, developed under the Emergency Relief Appropriation Act of 1935, or of any of the village properties under the jurisdiction of the Tennessee Valley Authority, and any mortgage executed in connection with the first resale, within two years from the date of its acquisition from the Government, of any portion of a project or property of the character described in this section.

The Secretary is further authorized to insure or to make commitments to insure under section 1743 of this title in accordance with the provisions of this section any mortgage executed in connection with the sale by a State or municipality, or an agency, instrumentality, or body politic of either, of any permanent housing (including any property acquired, held, or constructed in connection therewith or to serve the inhabitants thereof), constructed by or on behalf of such State, municipality, agency, instrumentality or body politic, for the occupancy of veterans of World War II, their families, and others: Provided, That the principal obligation of any such mortgage does not exceed either 85 per centum of the appraised value of the mortgage property as determined by the Secretary or $8,100 per family unit for such part of such property as may be attributable to dwelling use.

Source credit: (June 27, 1934, ch. 847, title VI, § 610, as added Aug. 5, 1947, ch. 495, § 2, 61 Stat. 777; amended Aug. 10, 1948, ch. 832, title I, § 101(e), 62 Stat. 1270; Apr. 20, 1950, ch. 94, title I, §§ 120, 122, 64 Stat. 58, 59; July 14, 1952, ch. 723, § 14, 66 Stat. 605; Pub. L. 90–19, § 1(a)(3), (o), May 25, 1967, 81 Stat. 17, 19.)

history & why it existsrecord from the source credit

1934Enacted · Act of June 27, 1934, ch. 847 · 61 Stat. 777
1948Amended · Act of Aug. 10, 1948, ch. 832 · 62 Stat. 1270
1950Amended · Act of Apr. 20, 1950, ch. 94 · 64 Stat. 58, 59
1952Amended · Act of July 14, 1952, ch. 723 · 66 Stat. 605
1967Amended · Pub. L. 90-19 · 81 Stat. 17, 19

A history note hasn’t been published yet. The record shows enactment by ch. 847 on 1934-06-27.

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