Page:United States Statutes at Large Volume 84 Part 1.djvu/509

 84 STAT. ]

PUBLIC LAW 91-351-JULY 24, 1970

451

made if the outstanding principal balance of the mortgage at the time of purchase exceeds 75 per centum of the value of the property securing the mortgage, unless (A) the seller retains a participation of not less than 10 per centum in the mortgage; (B) for such period and under such circumstances as the corporation may require, the seller agrees to repurchase or replace the mortgage upon demand of the corporation in the event that the mortgage is in default; or (C) that portion of the unpaid principal balance of the mortgage which is in excess of such 7.5 per centum is guaranteed or insured by a qualified private insurer as determined by the corporation. The corporation shall not issue a commitment to purchase a conventional mortgage prior to the date the mortgage is originated, if such mortgage is eligible for purchase under the preceding sentence only by reason of compliance with the requirements of clause (A) of such sentence. The corporation may purchase a conventional mortgage which was originated more than one year prior to the purdhase date only if the seller is currently engaged in mortgage lending or investing activities and if, as a result thereof, the cumulative aggregate of the principal balances of all conventional mortgages purchased by the corporation which were originated more than one year prior to the date of purchase does not exceed 10 per centum of the cumulative aggregate of the principal balances of all conventional mortgages purchased by the corporation. The corporation shall establish limitations governing the maximum principal obligation of conventional mortgages purchased by it which are comparable to the limitations which would be applicable if the mortgage Avere insured by the Secretary of Housing and Urban Development under section 203(b) or 207 of the National Housing Act." 83%lu'i83^' ^^'' (b) Section 5202 of the Revised Statutes (12 U.S.C. 82) is amended 12 USC 1709, by adding at the end thereof the following: ^^^3"Eleventh. Liabilities incurred in connection with sales of mortgages, or participations therein, to the Federal National Mortgage Association or the Federal Home I^oan Mortgage Corporation.".

TITLE III—FEDERAL HOME LOAN MORTGAGE CORPORATION SHORT TITLE

SEC. 301. This title may be cited as the "Federal Home Loan Mortgage Corporation Act". DEFINITIONS

SEC. 302. As used in this title— (a) The term "Board of Directors" means the Board of Directors of the Corporation. (b) The term "Corporation" means the Federal Home Loan Mortgage Corporation created by this title. (c) The term "law" includes any law of the United States or of any State (including any rule of law or of equity). (d) The term "mortgage" includes such classes of liens as are commonly given or are legally effective to secure advances on, or the unpaid purchase price of, real estate under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby, and includes interests in mortgages. (e) The term "organization" means any corporation, partnership, association, business trust, or business entity. (f) The term "prescribe" means to prescribe by regulations or otherwise.

citation of title.

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