Page:United States Statutes at Large Volume 53 Part 2.djvu/330

 PUBLIC LAWS-CH. 175-JUNE 3, 1939 Maturity provi- sions; period extended. 52 Stat. 11. 52 Stat. 10. 12 U. S. C., Supp. IV, §1709. Binding effect of contract. Validity. Mortgage refinanc- ing existing mortgage; Insurance provisions. 52 Stat. 13 . 12 U. 8. C., Supp. IV, 1710 (a). Determination of value of mortgage. Items included. Proviso. Foreclosed mort- gages of designated class accepted prior to July 1, 1941. 52 Stat. 10. 12 U. S. C., Supp. IV, i 1709 (b). 52 stat. 12 . 12 U. S. C., Snpp. IV, §1710 (g). Conveyance of title, etc., to acquired prop- erty; authority of Ad- ministrator, etc. SEC. 7. Paragraph (3) of section 203 (b) of such Act, as amended, is amended by striking out the words "until July 1, 1939". SEC. 8. Section 203 of such Act, as amended, is further amended by adding at the end thereof the following new subsections: "(e) Any contract of insurance heretofore or hereafter executed by the Administrator under this title shall be conclusive evidence of the eligibility of the mortgage for insurance, and the validity of any con- tract of insurance so executed shall be incontestable in the hands of an approved mortgagee from the date of the execution of such contract except for fraud or misrepresentation on the part of such approved mortgagee. "( oo mortgage which in whole or in part refinances a then exist- ing mortgage shall be insured under this section unless the mortgagor files with the application his certificate to the Administrator that prior to the making of the application the mortgagor applied to the holder of such existing mortgage for such refinancing and that, after reason- able opportunity such holder failed or refused to make a loan of a like amount and on as favorable terms as those of the loan secured by the mortgage offered for insurance after taking into account amortiza- tion provisions, commission, interest rate, mortgage insurance pre- mium, and costs to the mortgagor for legal services, appraisal fees, title expenses, and similar charges." SEC. 9. The last sentence of section 204 (a) of such Act, as amended, is amended to read as follows: "For the purposes of this subsection, the value of the mortgage shall be determined, in accordance with rules and regulations prescribed by the Administrator, by adding to the amount of the original principal obligation of the mortgage which was unpaid on the date of the institution of foreclosure proceedings, or on the date of the acquisition of the property after default other than by foreclosure, the amount of all payments which have been made by the mortgagee for taxes, ground rents, and water rates, which are liens prior to the mortgage, special assessments which are noted on the application for insurance or which become liens after the insurance of the mortgage, insurance on the mortgaged property, and any mortgage insurance premiums paid after either of such dates, and by deducting from such total amount any amount received on account of the mortgage after either of such dates, and any amount received as rent or other income from the property, less reasonable expenses incurred in handling the property, after either of such dates: Provided,That with respect to mortgages which are accepted for insurance prior to July 1, 1941, under section 203 (b) (2) (B) of this Act, and which are foreclosed before there shall have been paid on account of the principal obligation of the mortgage a sum equal to 10 per centum of the appraised value of the property as of the date the mortgage was accepted for insurance, there may be included in the debentures issued by the Administrator, on account of foreclosure costs actually paid by the mortgagee and approved by the Administrator an amount not in excess of 2 per centum of the unpaid principal of the mortgage as of the date of the institution of fore- closure proceedings, but in no event in excess of $75." SEC. 10. Section 204 (g) of such Act, as amended, is amended by adding at the end thereof the following new sentence: "The power to convey and to execute in the name of the Administrator deeds of conveyance, deeds of release, assignments and satisfactions of mort- gages, and any other written instrument relating to real property or any interest therein heretofore or hereafter acquired by the Adminis- trator pursuant to the provisions of this Act, may be exercised by the Administrator or by any Assistant Administrator appointed by him, without the execution of any express delegation of power or 806 [53 STAT.

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