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1 debentures which are the obligation of the fund. Such pur

2 chases shall be made at a price which will provide an in

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vestment yield of not less than the yield obtained from other 4 investments authorized by this subsection. Debentures so

5 purchased shall be canceled and not reissued.

6 (g) The Secretary is authorized to advance from one

7 insurance fund to another such amounts as he considers

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necessary for the administration of the funds. Such advances 9 shall be repayable at such times and at such rates of in10 terest as the Secretary deems appropriate.

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(h) There is authorized to be appropriated such sums

as may be needed from time to time to cover losses sustained 13 by the General Insurance Fund or the Special Risk In

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surance Fund.

INSURANCE PREMIUMS AND CHARGES

SEC. 202. (a) The Secretary is authorized to fix an 17 insurance premium for the insurance of mortgages and 18 loans under this Act. The Secretary may require the pay19 ment of the insurance premium on an advance or a deferred 20 basis, except that with respect to any mortgage or loan 21 insured under title V or with respect to any loan under title 22 III, such insurance premium shall be payable annually in 23 advance by the mortgagee or lender.

24 (b) In the event that the principal obligation of any 25 mortgage or loan insured under title IV or title V is paid

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1 in full prior to the maturity date, the Secretary is authorized 2 in his discretion to require the payment by the mortgagee or 3 the lender of an adjusted premium charge in such amount as 4 the Secretary determines to be equitable, but not in excess 5 of the aggregate amount of the insurance premium that the 6 mortgagee or lender would otherwise have been required to 7 pay if the mortgage or loan had continued to be insured 8 until such maturity date. Where such prepayment occurs, the 9 Secretary is authorized to refund to the mortgagee or the 10 lender for the account of the moragagor or the borrower 11 all, or such portion as he shall determine to be equitable, 12 of the current unearned insurance premium theretofore 13 paid.

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(c) The Secretary is authorized to terminate any insur15 ance contract upon request by the mortgagor or borrower and 16 the mortgagee or lender. As a condition to terminating the 17 insurance, the Secretary is authorized in his discretion to 18 require the payment of a termination charge computed in 19 the same manner as the adjusted premium charge.

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(d) The payments specified in subsections (a), (b), 21 and (c) shall be payable by the mortgagee or the lender 22 either in cash or in debentures issued by the Secretary, except 23 that the insurance premium for loans under title III shall 24 be paid only in cash. The debentures presented for such pay

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1 ment shall represent obligations of the particular insurance

2 fund to which such insurance premium is to be credited.

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(e) (1) In the case of a mortgage insured under section 4 401 covering a single-family dwelling or a one-family unit in 5 a condominium where the mortgagor is a serviceman who 6 at the time of insurance or assumption of the mortgage is 7 the owner of the property and either occupies the property or certifies that his failure to do so is the result of his service 9 assignment, the mortgage insurance premiums fixed by the 10 Secretary shall not be payable by the mortgagee during the 11 period of ownership of the property involved. Such premiums 12 shall be paid not less frequently than once a year, upon request of the Secretary, by the Secretary of Defense or the 14 Secretary of Transportation, as the case may be, from the

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respective appropriations available for pay and allowances 16 of servicemen.

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(2) As used in this subsection

(A) The term "serviceman" means a person to whom the Secretary of Defense, or the Secretary of Transportation, as the case may be, has issued a certificate indicating that such person requires housing, is serving on active duty in the Armed Forces of the United States and has served on active duty for more

than two years, but a certificate shall not be issued to

any person ordered to active duty for training purposes

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only. The Secretary of Defense and the Secretary of Transportation, respectively, are authorized to prescribe

rules and regulations governing the issuance of such certificate and may withhold issuance of more than one such certificate to a serviceman whenever in his discretion issuance is not justified due to circumstances resulting from his service assignment.

(B) The term "period of ownership" means the period, for which mortgage insurance premiums are fixed, prior to the date that the Secretary of Defense or the Secretary of Transportation, as the case may be,

furnishes the Secretary with a certification that such ownership (as defined by the Secretary) has terminated. (3) Where a serviceman dies while on active duty in 15 the Armed Forces of the United States, leaving a surviving 16 widow as owner of the property, the period of ownership 17 shall extend for two years beyond the date of the service18 man's death or until the date the widow disposes of the property, whichever date occurs first. The Secretary of De20 fense or the Secretary of Transportation, as the case may be, 21 shall notify such widow promptly following the serviceman's 22 death of the additional costs to be borne by the mortgagor

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following termination of the two-year period.

PROCESSING FEES AND SERVICE CHARGES

SEC. 203. (a) The Secretary is authorized to charge

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1 and collect from the mortgagee or lender such amounts as 2 he may deem reasonable for the processing of a mortgage 3 or loan insurance application and for the appraisal and in4 spection of the property or project to be covered by the 5 mortgage to be insured or for other services performed by 6 the Secretary. These fees and charges shall be payable by 7 the mortgagee or lender in cash at such time as the Secretary may require.

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(b) The Secretary is authorized to include in any mortgage or loan insured under this Act or in any loan made 11 payable to the Secretary a provision requiring the mortgagor 12 or borrower to pay a service charge to the Secretary in the 13 event the mortgage or loan is held by the Secretary. The 14 service charge shall not exceed the amount prescribed by 15 the Secretary for insurance premiums applicable to such 16 mortgage or loan.

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TITLE III-INSURANCE FOR PROPERTY

IMPROVEMENT AND MOBILE HOME LOANS

TYPES OF LOANS

SEC. 301. (a) The Secretary is authorized to insure

21 financial institutions against losses which they may sustain

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as a result of making, advancing credit in connection with,

or purchasing property improvement and mobile home loans

24 meeting the requirements of this title.

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(b) The property improvement loan shall be for the

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