Page:United States Statutes at Large Volume 71.djvu/332

 296 Mortgage limits.

12 USC \ihm.

PUBLIC LAW 85-104-JULY 12, 1957

[71 S T A T.

u^g^ The mortgage shall— " (A)(i) involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $20,000 in the case of property upon which there is located a dwelling designed principally for a one- or two-family residence; or $27,500 in the case of a three-family residence; or $35,000 in the case of a four-family residence; or in the case of a dwelling designed principally for residential use for more than four families (but not exceeding such additional number of family units as the Commissioner may prescribe) $35,000 plus not to exceed $7,000 for each additional family unit in excess of four located on such property; and not to exceed an amount equal to the sum of (1) 97 per centum (but, in any case where the dwelling is not approved for mortgage insurance prior to the beginning of construction, unless the construction of the dwelling was completed more than one year prior to the application for mortgage insurance, 90 per centum) of $10,000 of the Commissioner's estimate of replacement cost of the property, as of the date the mortgage is accepted for insurance, (2) 85 per centum of such replacement cost in excess of $10,000 but not m excess of $16,000, (3) 70 per centum of such replacement cost in excess of $16,000: Provided., That in the case of properties other than new construction, the foregoing limitations upon the amount of the mortgage shall be based upon appraised value rather than upon the Commissioner's estimate of the replacement cost; "(ii) in the case of a mortgagor who is not the occupant of the property, have a principal obligation not in excess of an amount equal to 85 per centum of the amount computed under the provisions of clause (i); or", (b) Section 220(d)(3) of such Act is further amended by striking out the phrase "not to exceed" the first four places it appears in clause (B) and inserting in lieu thereof the phrase "not exceed '. SEC. 103. Section 222(b) of the National Housing Act is amended to

Servicemen. Ad- read aS f olloWS * .

ditionai mort-

'''• (h) To be eligible for insurance under this section a mortgage shall— "(1) meet the requirements of section 203(b) except as such requirements are modified by this section; "(2) involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $17,100; "(3) have a principal obligation in an amount not in excess of 95 per centum of the appraised value of the property or such higher amount as may be derived by applying the maximum ratio of loan to value prescribed in section 203(b)(2); and "(4) be executed by a mortgagor who at the time of application for insurance is certified as a 'serviceman' and who at the time of insurance is the owner of the property and either occupies the property or certifies that his failure to do so is the result of his military assignment, or, in the case of the United States Coast Guard, other assignment.", ratios*"'*°'^°^"^ SEC. 104. The Federal Housing Commissioner, in establishing maximum loan-to-value ratios for mortgages insured by him under the National Housing Act, as amended by sections 101, 102, and 103 of this Act, shall determine that such ratios are in the public interest after taking into consideration (1) the effect of such ratios on the national economy and on conditions in the building industry, and (2) the availability or unavailability of residential mortgage credit assisted iius^eginote. under the Servicemen's Readjustment Act of 1944, as amended. gages. 12 USC 1709.

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