7 1 USE OF FUNDS FROM UNITED STATES HOUSING ACT OF 2 1937 3 SEC. 105. Notwithstanding any other provision of law, 4 to further the purposes of this title and to more fully im5 plement the provisions of title V of the Housing and Urban 6 Development Act of 1970, the Secretary, out of funds ap7 propriated pursuant to section 5 of the United States Hous8 ing Act of 1937, is authorized to contract for and to make 9 payments of cash assistance for rental or homeownership 10 expense to, or on behalf of, such number of individuals 11 and families as the Secretary determines are necessary 12 to enable him to make the findings and recommendations 13 required by section 504 (c) of the Housing and Urban 14 Development Act of 1970 as amended by section 104 of 15 this Act. TITLE II-MORTGAGE CREDIT ASSISTANCE 16 17 REVISION AND SIMPLIFICATION OF MORTGAGE CREDIT 18 19 AUTHORITIES SEC. 201. The provisions of this section which follow 20 will be effective as provided in section 202 and may be 21 cited as the "Revised National Housing Act". "REVISED NATIONAL HOUSING ACT "TITLE I-GENERAL AUTHORITY "DEFINITIONS "SEC. 101. As used in this Act "(a) The term 'first mortgage' means such classes of 8 1 first liens as are commonly given to secure advances on, or 2 the unpaid purchase price of, real estate, under the laws of 3 the State in which the real estate is located, together with the 4 credit instruments, if any, secured thereby. 5 "(b) The term 'mortgage' means a first mortgage on 6 real estate in fee simple, or on a leasehold (1) under a lease 7 for not less than ninety-nine years which is renewable or (2) 8 under a lease having a period of not less than fifty years to run from the date the mortgage was executed. 9 10 "(c) The term 'mortgagee' includes the original lender 11 under a mortgage, and its successors and assigns approved by 12 the Secretary. 13 14 15 "(d) The term 'mortgagor' includes the original borrower under a mortgage, and its successors and assigns. "(e) The term 'home mortgage' means a mortgage in16 volving a one- to four-family residence or a one-family unit 17 in a condominium. 18 "(f) The term 'project mortgage' means a mortgage 19 involving multifamily housing, a land development project, or 20 a health facility. 21 "(g) The term 'loan' means a loan the security for 22 which is acceptable to the Secretary but does not necessarily 23 involve a mortgage. 24 "(h) The term 'lender' includes the original lender 25 under a loan and its successors and assigns approved by the 26 Secretary. 2 9 "(i) The term 'borrower' includes the original bor rower under a loan and its successors and assigns. 3 "(j) The term 'maturity date' means the date on which 4 the mortgage indebtedness would be extinguished if paid in 5 accordance with the payments provided for in the mortgage. 6 "(k) The term 'condominium' means a multiunit hous7 ing project which is subject to a plan of family unit owner8 ship acceptable to the Secretary under which each dwelling 9 unit is individually owned and cach such owner holds an 10 undivided interest in the common areas and facilities which 11 serve the project. 12 "(1) The term 'experimental property' means property 13 which involves the utilization and testing of advanced 14 technology in property design, materials, or construction, 15 or experimental property standards for neighborhood design, 16 which will provide data or experience which the Secretary 17 deems to be significant in reducing building costs or improv18 ing building standards, quality, livability, or durability, or 19 improving neighborhood design. 20 "(m) The term 'experimental financing' means financ21 ing involving the use, on an experimental basis, of financing 22 instruments which are not otherwise authorized or acceptable 23 under this Act (including instruments which are not mort24 gages or which involve amortization, interest, or related 25 terms and conditions which do not conform to the require 1 10 ments of this Act) but which the Secretary determines (1) 2 may have value in expanding housing opportunities or meet 3 4 5 6 ing special needs and (2) have a potential for acceptance in the private market. "(n) The term 'advances' means mortgage proceeds advanced during construction or rehabilitation or otherwise 7 prior to final endorsement of a mortgage for insurance. In 8 addition to being made for the purpose of financing improve9 ments to the property and the purchase of materials and 10 building components delivered to the property, such insured 11 proceeds may, with the approval of the Secretary, be ad12 vanced for the purpose of providing funds to cover the cost of materials and building components which have been pur14 chased for use in the construction or rehabilitation of a project 15 and are to become a part of the mortgaged property, but 16 which are located at a site other than the mortgaged 17 property. 13 18 "(o) The term 'State' includes the several States and 19 Puerto Rico, the District of Columbia, Guam, and the Virgin 20 Islands. Such term may also include American Samoa, the 21 Canal Zone, Midway Island, and the Trust Territory of the 22 Pacific Islands where the Secretary determines the use of 220 23 particular mortgage insurance programs are feasible and 24 desirable. 1 11 "(p) The term 'Secretary' means the Secretary of Hous 2 ing and Urban Development. 3 4 8 "GENERAL INSURANCE AUTHORITY "SEC. 102. (a) To be eligible for insurance under this 5 Act a mortgage or loan shall have been made by, and be 6 held by, a mortgagee or lender approved by the Secretary as 7 responsible and able to service the mortgage or loan properly. "(b) The Secretary is authorized, upon application by 9 the mortgagee or lender, to insure mortgages and loans, upon 10 such terms and conditions as he may prescribe, in accordance 11 with the provisions of this Act, and to make (or modify, 12 amend or increase) commitments for insurance of such mort13 gages or loans prior to the date of their execution or disburse14 ment thereon. Except where otherwise specifically provided, 15 insurance as authorized by this section may be pursuant to a 16 contract which obligates the Secretary to pay losses up to a 17 specified amount or specified percentage of the mortgage or 18 loan amount (including an amount equal to the full value of 19 the mortgage or loan), or to pay losses in excess of a specified 20 amount or specified percentage of the mortgage or loan 21 amount, or to share in any losses on a specified basis, or which 22 involves a combination of the foregoing types of obligations, 23 as the Secretary determines appropriate in particular pro 24 225 grams or with respect to particular classes of risks in order 25 to encourage the provision of needed housing opportunities or |