Page:United States Statutes at Large Volume 103 Part 1.djvu/461

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 433 amended by inserting "nonvoting common" before "stock" each place it appears. (e) MORTGAGE OPERATIONS. — (1) PROHIBITION ON FEES.— Section 305(a)(1) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(1)) is amended by adding at the end the following: "Nothing in this section authorizes the Corporation to impose any charge or fee upon any mortgagee approved by the Secretary of Housing and Urban Development for participation in any mortgage insur- ance program under the National Housing Act solely because of such status.". (2) LENDING ACTIVITIES. —Section 805(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the following new paragraph: "(5) The Corporation is authorized to lend on the security of, and to make commitments to lend on the security of, any mortgage that the Corporation is authorized to purchase under this section. The volume of the Corporation's lending activities and the establishment of its loan ratios, interest rates, maturities, and charges or fees in its secondary market operations under this paragraph, shall be deter- mined by the Corporation from time to time; and such determina- tions shall be consistent with the objectives that the lending activi- ties shall be conducted on such terms as will reasonably prevent excessive use of the Corporation's facilities, and that the operations of the Corporation under this paragraph shall be within its income derived from such operations and that such operations shall be fully self-supporting. The Corporation shall not be permitted to use its lending authority under this paragraph (A) to advance funds to a mortgage seller on an interim basis, using mortgage loans as collat- eral, pending the sale of the mortgages in the secondary market; or (B) to originate mortgage loans. Notwithstanding any Federal, State, or other law to the contrary, the Corporation is hereby empowered, in connection with any loan under this paragraph, whether before or after any default, to provide by contract with the borrower for the settlement or extinguishment, upon default, of any redemption, equitable, legal, or other right, title, or interest of the borrower in any mortgage or mortgages that constitute the security for the loan; and with respect to any such loan, in the event of default and pursuant otherwise to the terms of the contract, the mortgages that constitute such security shall become the absolute property of the Corporation.". (f) REFERENCES TO FSLIC AND FHLBB. — (1) SECTION 302.— Section 302a))(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is amended— (A) in the 4th sentence, by striking out "Federal Savings and Loan Insurance Corporation" and inserting in lieu J thereof "Resolution Trust Corporation"; and (B) in the 8th sentence, by striking out "Federal Home Loan Bank Board" and inserting in lieu thereof "Federal Housing Finance Board". (2) SECTION 305.— Section 305 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454) is amended— (A) by striking out "Federal Savings and Loan Insurance Corporation" each place it appears and inserting in lieu thereof "Resolution Trust Corporation"; and

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