Page:United States Statutes at Large Volume 48 Part 1.djvu/1274

 1248 73d C ONGRESS. SESS. II. CH. 847 . JUNE 27, 1934 . Mutual Mor tgage I nsura nce Fund. Creation. SEC. 202 . There is hereby created a Mutual Mortgage Insurance Use. Fund (hereinafter referred to as the "Fund"), which shall be used by the Administrator as a revolving fund for carrying out the pro- vision s of th is tit le as h ereinaf ter pr ovided, and th ere sh all be allo- cated immediately to such Fund the sum of $10,000,000 out of funds made available to the Administrator for the purposes of this title. MUTUAL MORTGAGE INSURANCE FU ND Insurance of mort- gages. Authority to insure SEC. 20 3 . (a) The Ad ministrator i s authorized, upon applicat ion mortgage of m motgtga gee . ca- t ion by the mortgagee, to insure as hereinafter provided any mortgage offered to him within one year from the date of its execution which Terms. is eligible for insurance as hereinafter provided, and, upon such terms as the Administrator may prescribe, to make commitments for the insu ring of such mor tgag es p rior to the date of thei r ex ecut ion Proviso. or disbursem ent thereon : Provi ded, Th at exc ept wi th the a ppr ova l Limits on aggregate of the President, (1) the aggregate principal obligation of all mort- principal obligations. gages on property and low-cost housing projects existing on the date of enactment of this Act and insured under this title shall not exceed $1,000,000,000, and (2) the insurance of mortgages on property and low- cost hou sing pro ject s co nstr ucte d af ter the pass age of t his Act shall be limited to a similar amount. Requirements, eli g i. (b) To be elig ible for insu rance under t his section a mortgage bility for insurance. shall- (1) Have, or be held by, a mortgagee approved by the Admin- istrator as responsible and able to service the mortgage properly. (2) Involve a principal o bligation (in cluding such i nitial service charges and appraisal and other fees as the Administrator shall approve) in an amount not to exceed $16,000, and not to exceed 80 per centum of the appraised value of the property as of the date the mortgage is executed. (3) Have a maturity satisfactory to the Administrator, but not to exceed twenty years. (4) Contain complete amortization provisions satisfactory to the Administrator requiring periodic payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Administrator. (5) Bear int erest (exclus ive of premiu m charges for insur- ance) at not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any time, or not to exceed 6 per centum per annum if the Administrator finds that in cer- tain areas or under special circumstances the mortgage market demands it. (6) Provide, in a manner satisfactory to the Administrator, for the appl icat ion of t he m ortg agor 's p erio dic paym ents (ex clus ive of the amount allocated to interest and to the premium charge which is req uired for mor tgage insuran ce as hereinaf ter pro- vided) to amortization of the principal of the mortgage. (7) Contain such terms and provisions with respect to insur- ance, repairs, alterations, payment of taxes, default reserves, delinquency charges, fore closure proce edings, antici pation of maturity, additional and secondary liens, and other matters as the Administrator may in his discretion prescribe. Pr emiu m cha rge for (c) The Administrator is authorized to fix a premium charge for insurance of mortgages . Determ ination. the insurance of mortgages under this section (to be determined in Am ount . accordance with the risk involved) which in no case shall be less than one-half of 1 per centum nor more than 1 per centum per Payment. annum of the original face value of the mortgage, and which shall INSURANCE OF MORTGAGES