|
U.S. Code as of:
01/19/04
Section 1715u. Authority to assist mortgagors in default
(a) Loss mitigation
Upon default of any mortgage insured under this subchapter,
mortgagees shall engage in loss mitigation actions for the purpose
of providing an alternative to foreclosure (including but not
limited to actions such as special forbearance, loss modification,
and deeds in lieu of foreclosure, but not including assignment of
mortgages to the Secretary under section 1710(a)(1)(A) of this
title) as provided in regulations by the Secretary.
(b) Payment of partial claim
The Secretary may establish a program for payment of a partial
claim to a mortgagee that agrees to apply the claim amount to
payment of a mortgage on a 1- to 4-family residence that is in
default. Any such payment under such program to the mortgagee shall
be made in the sole discretion of the Secretary and on terms and
conditions acceptable to the Secretary, except that -
(1) the amount of the payment shall be in an amount determined
by the Secretary, not to exceed an amount equivalent to 12 of the
monthly mortgage payments and any costs related to the default
that are approved by the Secretary; and
(2) the mortgagor shall agree to repay the amount of the
insurance claim to the Secretary upon terms and conditions
acceptable to the Secretary.
The Secretary may pay the mortgagee, from the appropriate insurance
fund, in connection with any activities that the mortgagee is
required to undertake concerning repayment by the mortgagor of the
amount owed to the Secretary.
(c) Assignment
(1) Program authority
The Secretary may establish a program for assignment to the
Secretary, upon request of the mortgagee, of a mortgage on a 1-
to 4-family residence insured under this chapter.
(2) Program requirements
The Secretary may accept assignment of a mortgage under a
program under this subsection only if -
(A) the mortgage was in default;
(B) the mortgagee has modified the mortgage to cure the
default and provide for mortgage payments within the reasonable
ability of the mortgagor to pay, at interest rates not
exceeding current market interest rates; and
(C) the Secretary arranges for servicing of the assigned
mortgage by a mortgagee (which may include the assigning
mortgagee) through procedures that the Secretary has determined
to be in the best interests of the appropriate insurance fund.
(3) Payment of insurance benefits
Upon accepting assignment of a mortgage under a program
established under this subsection, the Secretary may pay
insurance benefits to the mortgagee from the appropriate
insurance fund, in an amount that the Secretary determines to be
appropriate, not to exceed the amount necessary to compensate the
mortgagee for the assignment and any losses and expenses
resulting from the mortgage modification.
(d) Prohibition of judicial review
No decision by the Secretary to exercise or forego exercising any
authority under this section shall be subject to judicial review.
(e) Repealed. Pub. L. 104-134, title I, Sec. 101(e) [title II, Sec.
221(b)(2)], Apr. 26, 1996, 110 Stat. 1321-257, 1321-291;
renumbered title I, Pub. L. 104-140, Sec. 1(a), May 2, 1996, 110
Stat. 1327
(f) Applicability of other laws
No provision of this chapter, or any other law, shall be
construed to require the Secretary to provide an alternative to
foreclosure for mortgagees with mortgages on 1- to 4-family
residences insured by the Secretary under this chapter, or to
accept assignments of such mortgages.
|
|