Page:United States Statutes at Large Volume 100 Part 1.djvu/140

 100 STAT. 104

42 USC 1487.

Regulations. Marketing.

PUBLIC LAW 99-272—APR. 7, 1986

agreements for the benefit of the borrower under the loan that provide that— "(A) the purchaser or any assignee of the loan shall not diminish any substantive or procedural right of the borrower arising under this title; "(B) upon any substantial default of the borrower, but prior to foreclosure, the loan shall be assigned to the Secretary for the purpose of avoiding foreclosure; and "(C) following any assignment under subparagraph (B) and before commencing any action to foreclose or otherwise dispossess the borrower, the Secretary shall afford the borrower all substantive and procedural rights arising under this title, including consideration for interest subsidy, moratorium, reamortization, refinancing, and appeal of any adverse decision to an impartial officer. "(4) From the proceeds of loan sales under paragraph (2), the Secretary shall set aside as a reserve against future losses not less than 5 percent of the outstanding face amount of the loans held by the public at any time.". (d) U S E OF RURAL HOUSING INSURANCE FUND.—Section 517(j) of the Housing Act of 1949 is amended— (1) by striking out "and" at the end of paragraph (4); (2) by striking out the period at the end of paragraph (5) and inserting in lieu thereof "; and"; and (3) by adding at the end thereof the following new paragraph: "(6) to make payments and take other actions in accordance with agreements entered into under paragraphs (2) and (3) of subsection (d).". (e) ELIGIBILITY FOR GUARANTEED LOANS.—Section 517 of the Housing Act of 1949 is amended by striking out subsection (n). O REGULATIONS.—Section 517(o) of the Housing Act of 1949 is D amended— (1) by inserting "(1)" after the subsection designation; and (2) by adding at the end thereof the following new paragraph: "(2) Not later than the expiration of the 90-day period following the date of the enactment of the Housing and Community Development Reconciliation Amendments of 1985, the Secretary shall issue regulations to facilitate the marketability in the secondary mortgage market of loans insured or guaranteed under this section. Such regulations shall ensure that such loans are competitive with other loans and mortgages insured or guaranteed by the Federal Government.". SEC. 3007. EXTENSION OF FEDERAL HOUSING ADMINISTRATION MORTGAGE INSURANCE PROGRAMS.

12 USC 1703.

(^) TITLE I INSURANCE.—Section 2(a) of the National Housing Act

is amended by striking out "prior to December 16, 1985" in the first sentence and inserting in lieu thereof "not later than March 17, 1986". (b) GENERAL INSURANCE.—Section 217 of the National Housing

12 USC I7l5h.

Act is amended by striking out "December 15, 1985" and inserting in lieu thereof "March 17, 1986". (c) LOW AND MODERATE INCOME HOUSING INSURANCE.—Section

12 USC 1715/.

221(f) of the National Housing Act is amended by striking out "December 15, 1985" in the fifth sentence and inserting in lieu thereof"Marchl7, 1986". (d) SECTION 235 HOMEOWNERSHIP.—

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