Page:United States Statutes at Large Volume 78.djvu/812

 770

12 USC m^5u

PUBLIC LAW 88-560-SEPT. 2, 1964

[78 STAT.

iimount wiual to any iinimid mortgage iuteiest, or (2) approve a iiioditication of the ternis of the mortgage for the purpose of (•hanging the amortization provisions by recasting, over the remaining term of the mortgage or over such longer period as may be approved by the Commissioner, the total unpaid amount then due, as determined by the Commissioner, with the modification to become effective currently or to become effective upon the termination of an agreed-upon extension of the period for curing the default; and the principal amount of the mortgage, as modified, shall be considered to pe the 'original principal obligation of the mortgage' as that term is nsed in this Act for the purpose of computing the total face value of the debentures to be issued or the cash payment to be made by the (Commissioner to a mortgagee". ^^^ Section 280 of such Act is amended by striking out the first sentence and inserting in lieu thereof the following: "Upon receiving notice of the default of any mortgage coverin|r a one-, two-, three-, or four-family residence heretofore or hereafter insured under this Act, the Commissioner, in his discretion and for the purpose of avoiding foreclosure of the mortgage, and notwithstanding the fact that he has previously approved a request of the mortgagee for an extension of the time for curing the default and of the time for commencing foreclosure proceedings or for otherwise acquiring title to the mortgaged property, or has approved a modification of the mortgage for the purpose of changing the amortization provisions by recasting the unpaid balance, may acquire the loan and security therefor upon payment of the insurance benefits in an amount equal to the impaid principal balance of the loan plus any unpaid mortgage interest plus reimbursement for such costs and attorney's fees as the Commissioner finds were properly incurred in connection with the defaulted mortgage and its assignment to the Commissioner, and for any proper advances theretofore made by the mortgagee under the provisions of the mortgage. After the acquisition of such mortgage by the Commissionei', the mortgagee shall have no further rights, liabilities, or obligations with respect thereto." <HAN<;KIS I N F H A I N I S I H A N C E B E N E F I T S A N D siMPLiFK A T I O N O F

PAYMENT PROCEDURES

12 USC 1710.

SEC. 10.5. (a) Section 204 of the National Housing Act is amended by— (1) striking out in the third sentence of subsection (a) the words "insurance on the mortgaged property, and any mortgage insurance premiums paid after either of such dates" and inserting in lieu thereof the following: "charges for the administration, operation, maintenance and repair of community-owned property or the maintenance and repair of the mortgaged property, the obligation for which arises out of a covenant filed for record and approved by the Commissioner prior to the insurance of the mortgage, insurance on the mortgaged property, and any mortgage insurance premiums"; (2) inserting after the colon following the second proviso of subsection (a) two additional provisos as follows: " ^ n ^ provided further, That with respect to a mortgage accepted for insurance pursuant to a commitment issued on or after the date of enactment of the Housing Act of 1964, the Commissioner may include in debentures or in the cash payment an amount not to exceed the foreclosure, acquisition, and conveyance costs actually paid by the mortgagee and approved by the Commissioner: And provided further, That wnth respect to a mortgage accepted for insurance pursuant to a commitment issued prior to the date of enactment

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