Page:United States Statutes at Large Volume 97.djvu/1250

 97 STAT. 1218 PUBLIC LAW 98-181—NOV. 30, 1983 NONOCCUPANT SINGLE FAMILY MORTGAGORS 12 USC 1709. SEC. 425. Section 203(b)(8) of the National Housing Act is amended by striking out all that follows "an amount equal to" through "subsection." and inserting in lieu thereof the following: "the lesser of (A) the otherwise applicable maximum dollar amount prescribed under paragraph (2), or (B) 85 percent of the appraised value of the property as of the date the mortgage is accepted for insurance:". PAYMENT OF CLAIMS WITHOUT ACQUISITION OF TITLE 12 USC 1710. SEC. 426. (a) Section 204(a) of the National Housing Act is amended— (1) by striking out "Upon such conveyance and assignment" in the second sentence and inserting in lieu thereof the follow- ing: "The Secretary is also authorized, in accordance with such regulations as the Secretary may prescribe, to make the benefit of the insurance as hereinafter provided available to the mort- gagee, notwithstanding any provision of this section requiring conveyance of title to the property to the Secretary, (1) upon sale of the insured property at foreclosure, where such sale is for at least the fair market value of the property (with appropri- ate adjustments), as determined by the Secretary, and (2) upon the assignment to the Secretary of all claims referred to in clause (2) of the preceding sentence. The payment of benefits under the preceding sentence may be made for any mortgage insured pursuant to a commitment to insure issued on or after the effective date of this sentence and, with the approval of the mortgagee, for any mortgage insured pursuant to a commit- ment issued before that date. Upon the conveyance and assign- ment referred to in the first sentence of this section or the sale and assignment referred to in the second sentence of this subsection,"; and (2) by striking out "and any amount" and all that follows through the colon preceding the first proviso of the final sen- tence and inserting in lieu thereof the following: "any amount received as rent or other income from the property, less reason- able expenses incurred in handling the property, after either of such dates, and, in the case of insurance benefits paid in accordance with the second sentence of this section, any amount received upon the foreclosure sale of the property:". (b) Section 204(j) of such Act is amended by inserting after "under section 203" the following: "(other than a mortgagee receiving insurance benefits under the second sentence of subsection (a))" 12 USC 1735b. 38 USC 1801 et seq. STRUCTURAL DEFECTS IN VETERANS ADMINISTRATION-APPROVED, FEDERAL HOUSING ADMINISTRATION-INSURED NEW HOMES SEC. 427. Section 518(a) of the National Housing Act is amended by striking out "approved for mortgage insurance prior to the beginning of construction which he finds" and inserting in lieu thereof the following: "that, before the beginning of construction, was approved for mortgage insurance under this Act or for guaranty, insurance, or a direct loan under chapter 37 of title 38, United States Code, and that the Secretary finds".

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