Page:United States Statutes at Large Volume 84 Part 1.djvu/508

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PUBLIC LAW 91-351-JULY 24, 1970

[84 STAT.

Public Law 91-351 July 24, 1970 [S. 3685]

Emergency Home Finance Act

of 1970.

AN ACT To increase the availability of mortgage credit for the financing of urgently needed housing, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That this Act may •,

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be cited as the Lmergency Home h inance Act ot 1970. TITLE I—REDUCTION O F INTEREST CHARGES FOR M E M B E R S O F THE FEDERAL H O M E LOAN BANK SYSTEM

Appropriation.

52 Stat. 10, 16; 83 Stat. 383. 12 USC 1709, 1713.

SEC. 101. (a) There is authorized to be appropriated not to exceed $250,000,000, without fiscal year limitation, to be used by the Federal Home Loan Bank Board for disbursement to Federal home loan banks for the purpose of adjusting the effective interest charged by such banks on short-term and long-term borrowing to promote an orderly flow of funds into residential construction. The disbursement of sums appropriated hereunder shall be made under such terms and conditions as may be prescribed by the Board to assure that such sums are used to assist in the provision of housing for low- and middle-income families, and that such families share fully in the benefits resulting from the disbursement of such sums. No member of a Federal home loan bank shall use funds the interest charges on which have been adjusted pursuant to the provisions of this section to make any loan, if— (1) the effective rate of interest on such loan exceeds the effective rate of interest on such funds payable by such member by a percentile amount which is in excess of such amount as the Board determines to be appropriate in furtherance of the purposes of this section; or (2) the principal obligation of any such loan which is secured by a mortgage on a residential structure exceeds the dollar limitations on the maximum mortgage amount, in effect on the date the mortgage was originated, which would be applicable if the mortgage was insured by the Secretary of Housing and Urban Development under section 203(b) or 207 of the National Housing Act. (b) Not more than 20 per centum of the sums appropriated pursuant to subsection (a) shall be disbursed in any one Federal home loan bank district. TITLE II—AUTHORITY FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION TO P R O VI D E A S E C O N D A R Y MARKET FOR CONVENTIONAL MORTGAGES

68 Stat. 613; J3 Stat. 385. 12 USC 1717.

SEC. 201. (a) Section 302(b) of the National Housing Act is amended— (1) by in?erting " (1) " immediately following " (b) "; and (2) by adding at the end thereof the following new paragraph: "(2) For the purposes set forth in section 301(a), and with the approval of the Secretary of Housing and Urban Development, the corporation is authorized, pursuant to commitments or otherwise, to purchase, service, sell, lend on the security of, or otherwise deal in mortgages which are not insured or guaranteed as provided in paragraph (1) (such mortgages referred to hereinafter as 'conventional mortgages'). No such purchase of a conventional mortgage shall be

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