12 U.S.C. § 1701l — Limitation on interest rates of insured mortgages; terms of sales
submitted 76 years ago by ch. 94 to r/title-12-BANKS-AND-BANKING · 96 words · no verdicts yet
This section states requirements Congress intends for sales financed while a National Housing Act-insured mortgage remains insured. It addresses interest rates and buyer protections.
While a mortgage is insured under the amended National Housing Act, Congress intends that a dwelling sale not be financed at an interest rate higher than the rate prescribed by the Secretary of Housing and Urban Development. Congress also intends that the sale not give the buyer less favorable terms for amortization, retirement, foreclosure, or forfeiture than the insured mortgage provides.
It is the intent of Congress that no sale of a dwelling on which a mortgage is insured under the National Housing Act, as amended [12 U.S.C. 1701 et seq.], shall be financed, while such mortgage is so insured, at an interest rate higher than that prescribed by the Secretary of Housing and Urban Development. It is the further intent of Congress that no such sale shall be made, while such mortgage is so insured, on terms less favorable to the purchaser as to amortization, retirement, foreclosure, or forfeiture than those contained in such mortgage.
Source credit: (Apr. 20, 1950, ch. 94, title V, § 508, 64 Stat. 81; Pub. L. 90–19, § 8(e), May 25, 1967, 81 Stat. 22.)
- 1950Enacted · Act of Apr. 20, 1950, ch. 94 · 64 Stat. 81
- 1967Amended · Pub. L. 90-19 · 81 Stat. 22
A history note hasn’t been published yet. The record shows enactment by ch. 94 on 1950-04-20.
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