Page:United States Statutes at Large Volume 92 Part 3.djvu/601

 PUBLIC LAW 9 5 - 6 1 9 — N O V. 9, 1978 " (e) The Association is authorized to — " (1) sell loans and advances of credit purchased under this section a t prices which it determines will help promote the objectives of assuring that operations under this section are, to the extent feasible, fully self-supporting; and " (2) p a y for services performed in carrying out its functions under this section without regard to any limitation on administrative expenses heretofore enacted. " (f) The total amount of outstanding purchases and commitments authorized by the Secretary to be made pursuant to this section shall not exceed amounts approved in appropriation Acts, but in no case may such amount exceed $100,000,000 a t any one time, " (g) The Secretary shall establish a purchase price to be paid by the Association for loans and advances of credit under this section which shall be adequate to compensate the lender for a reasonable return on such loan or advance, plus such reasonable costs as are normally incurred in originating, servicing, and otherwise processing such loans and advances. " (h) Any loan or advance of credit purchased under this section shall be purchased with recourse to the originator. " (i) If, after one year following the date on which the Association may issure obligations under subsection (c), 50 per centum of the amount available during such one-year period for financing the program established by this section has not been utilized, the Secretary shall provide that loans and advances of credit which may be purchased under this section shall have the lowest interest rate authorized by subsection (b)(2) unless the Secretary finds that the interest rate is not the p r i m a r y impediment to carrying out such program and that lowering the interest rate will not increase the utilization of the funds made available to carry out such program. " (j) The authority to purchase loans and advances of credit under this section shall terminate five years after the date of enactment of this section.". SEC. 245. SECONDARY FINANCING BY FEDERAL HOME LOAN MORTGAGE CORPORATION OF SOLAR ENERGY AND ENERGY CONSERVING IMPROVEMENT LOANS. Section 302(h) of the Federal Home Loan Mortgage Corporation Act is amended by a d d i n g the following new sentence at the end thereof: "The term 'residential mortgage' also includes a loan or advance of credit insured under title I of the National Housing Act whose original proceeds are applied for in order to finance energy conserving improvements, or the addition of a solar energy system, to residential real estate. The term 'residential mortgage' also includes a loan or advance of credit for such purposes not h a v i n g the benefit of such insurance and includes loans made where the lender relies for purposes of repayment primarily on the borrower's general credit standing and forecast of income, with or without other security.".

92 STAT. 3 2 3 3

12 USC 1451. "Residential mortgage." 12 USC 1702.

SEC. 246. SECONDARY FINANCING BY FEDERAL NATIONAL MORTGAGE ASSOCIATION OF SOLAR ENERGY AND ENERGY \ CONSERVING IMPROVEMENT LOANS. Section 302(b) of the Federal National Mortgage Association Charter Act is amended by a d d i n g at the end thereof the following 12 USC 1717. new paragraph: " (3) The corporation is authorized to purchase, service, sell, lend on the security of, and otherwise deal in loans or advances of credit made for energy conserving improvements and solar energy systems

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