Page:United States Statutes at Large Volume 112 Part 3.djvu/844

 112 STAT. 2674 PUBLIC LAW 105-276—OCT. 21, 1998 12 USC 1715U. 12 USC 1735f-14. the following new sentence: "The Secretary may sell real and personal property acquired by the Secretary pursuant to the provisions of this Act on such terms and conditions as the Secretary may prescribe.". (e) AUTHORITY To INSURE MORTGAGE. —Section 223(c) of the National Housing Act (12 U.S.C. 1715n(c)) is amended— (1) by striking "him" each place it appears and inserting "the Secretary"; and (2) by inserting before "of any property acquired", the following: ", including a sale through another entity acting under authority of the fourth sentence of section 204(g),". (f) Loss MITIGATION.— Section 230 of the National Housing Act is amended— (1) by redesignating subsections (a) through (e) as (b) through (f); and (2) by inserting a new subsection (a) as follows: "(a) Upon default of any mortgage insured under this title, mortgagees shall engage in loss mitigation actions for the purpose of providing an alternative to foreclosure (including but not limited to actions such as special forbearance, loss modification, and deeds in lieu of foreclosure, but not including assignment of mortgages to the Secretary under section 204(a)(1)(A)) as provided in regulations by the Secretary.". (g) PENALTY. —Section 536(a) of the National Housing Act is amended by inserting at the end of paragraph (2) the following: "In the case of the mortgagee's failure to engage in loss mitigation activities, as provided in section 536(b)(l)(I), the penalty shall be in the amount of three times the amount of any insurance benefits claimed by the mortgagee with respect to any mortgage for which the mortgagee failed to engage in such loss mitigation actions.". (h) VIOLATION. —Section 536(b)(1) of the National Housing Act is amended by inserting after subparagraph (h) the following: "(I) Failure to engage in loss mitigation actions as provided in section 230(a) of this Act.". SEC. 602. DISPOSITION OF HUD-OWNED SINGLE FAMILY ASSETS IN REVITALIZATION AREAS.—Section 204 of the National Housing Act (12 U.S.C. 1710) is amended— (1) by redesignating subsection (h) as subsection (i); and (2) by inserting after subsection (g) the following new subsection: "(h) DISPOSITION OF ASSETS IN REVITALIZATION AREAS.— "(1) IN GENERAL. — The purpose of this subsection is to require the Secretary to carry out a program under which eligible assets (as such term is defined in paragraph (2)) shall be made available for sale in a manner that promotes the revitalization, through expanded homeownership opportunities, of revitalization areas. Notwithstanding the authority under the last sentence of subsection (g), the Secretary shall dispose of all eligible assets under the program and shall establish the program in accordance with the requirements under this subsection. "(2) ELIGIBLE ASSETS.— For purposes of this subsection, the term 'eligible asset' means any of the following assets of the Secretary: " (A) PROPERTIES.— Any property that—

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