Page:United States Statutes at Large Volume 70.djvu/1152

 1096

PUBLIC LAW 1020-AUG. 7, 1956

[70 S T A T

X

68 Stat. 596. 12 USC 1715k.

Federal Mortgage tion. 68 Stat. 12 USC

National Associa613. 1717.

69 Stat. 647. 12 USC 1748b.

68 Stat. 614. 12 USC 1718.

68 Stat. 615. 12 USC 1719.

68 Stat. 617. 12 USC 1720.

there shall be included in the actual cost, in lieu of the allowance for builder's profit under clause (i) or (ii) of the p^^eceding sentence, an allowance for builder's and sponsor's profit and risk of 10 per centum (unless the Commissioner, after finding that such allowance is unreasonable, shall by regulation prescribe a lesser percentage) of all other items entering into the term 'actual cost' except land or amounts paid for a leasehold and amounts included under either (A) or (B) of clause (ii) of the preceding sentence. I n the case of a mortgage insured under section 220 where the mortgagor is not also the builder as defined by the Commissioner, there shall be included in the actual cost an allowance for sponsor's profit and risk of the said 10 per centum or lesser percentage of all other items entering into the term 'actual cost' except land or amounts paid for a leasehold, amounts included under either (A) or (B) of the said clause (ii), and amounts paid by the mortgagor under a general construction contract." TITLE II—SECONDAEY MORTGAGE MARKET SEC. 201. Section 302(b) of the National Housing Act is amended— (1) by striking out "and (2) " and inserting in lieu thereof (2); (2) by striking out "if (i) " and inserting in lieu thereof "if"; and (3) by striking out "or (ii) the original principal obligation thereof exceeds or exceeded $15,000 for each family residence or dwelling unit covered by the mortgage" and inserting in lieu thereof "; and (3) the Association may not purchase any mortgage, except a mortgage insured under section 803 or a mortgage covering property located in Alaska, Guam, or Hawaii, if the original principal obligation thereof exceeds or exceeded $15,000 for each family residence or dwelling unit covered by the mortgage". SEC. 202. Section 303(b) of such Act is amended by striking out the first sentence and inserting: "The Association shall accumulate funds for its capital surplus account from private sources by requiring each mortgage seller to make payments of nonrefundable capital contributions equal to 2 per centum of the unpaid principal amounts of mortgages purchased or to be purchased by the Association from such seller or equal to such other greater or lesser percentage, but not less than 1 per centum thereof, as the Association may determine from time to time, taking into consideration conditions in the mortgage market and the general economy." SEC. 203. Section 304(a) of such Act is amended by striking out "at the market price" in the second sentence and inserting "within the range of market prices". SEC. 204. (a) Section 304(a) of such Act is amended by adding at the end thereof the following new sentence: "Notwithstanding any other provision of this section, advance commitments to purchase mortgages in secondary market operations under this section shall be issued only at prices which are sufficient to facilitate advance planning of home construction, but which are sufficiently below the price then offered by the Association for immediate purchase to prevent excessive sales to the Association pursuant to such commitments." (b) Section 304(d) of such Act is amended to read as follows: " (d) The Association may not purchase participations in its operations under this section." SEC. 205. Section 305(b) of such Act is amended by striking out the second sentence and inserting in lieu thereof the following:

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