miscellaneous fha amendments

miscellaneous fha amendments Sec. 612. (a) Section 203 of the National Housing Act is amended by— (1) striking out in subsection (b)(3) the words “insurance of the mortgage” and inserting in lieu thereof “beginning of amortization of the mortgage”, and (2) striking out in the first proviso of the second sentence of subsection (c) the words “particular insurance fund” and inserting in lieu thereof “particular insurance fund or account”. (b) The second sentence of section 204(d) of such Act is amended by inserting after “mortgagee after default,” the following: “except that debentures issued pursuant to the provisions of section 220(f), section 221(g), and section 233 may be dated as of the date the mortgage is assigned (or the property is conveyed) to the Commissioner,”. (c) The last sentence of section 204(g) of such Act is amended to read as follows: “The power to convey and to execute in the name of the Commissioner deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real or personal property or any interest therein heretofore or hereafter acquired by the Commissioner pursuant to the provisions of this Act, may be exercised by the Commissioner or by any Assistant Commissioner appointed by him, without the execution of any express delegation of power or power of attorney: Provided, That nothing in this subsection shall be construed to prevent the Commissioner from delegating such power by order or by power of attorney, in his discretion, to any officer, agent, or employee he may appoint: And provided further, That a conveyance or transfer of title to real or personal property or an interest therein to the Federal Housing Com-75 Stat. 181missioner, his successors and assigns, without identifying the Commissioner therein, shall be deemed a proper conveyance or transfer to the same extent and of like effect as if the Commissioner were personally named in such conveyance or transfer.” (d) Section 209 of such Act is amended by striking out in the second sentence “shall be charged as a general expense of the Fund, the Housing Fund, and the Defense Housing Insurance Fund in such proportion as the Commissioner shall determine” and inserting in lieu thereof “shall be charged as a general expense of such insurance fund or funds, or account or accounts, as the Commissioner shall determine”. (e) Section 212 of such Act is amended by— (1) striking out in the second sentence of subsection (a) “any mortgage under section 220” and inserting in lieu thereof “any loan or mortgage under section 220 or section 233”; and (2) striking out in the third sentence of subsection (a) “in subsection (d)(4)” and inserting in lieu thereof “in subsection (d) (3) in the case of a cooperative or a limited profit mortgagor, or in subsection (d)(4)”. (f) Section 219 of such Act is amended to read as follows: “Sec. 219. Notwithstanding any limitations contained in other sections of this Act as to the use of moneys credited to the Title I Insurance Account, the Title I Housing Insurance Fund, the Section 203 Home Improvement Account, the Housing Insurance Fund, the War Housing Insurance Fund, the Housing Investment Insurance Fund, the Armed Services Housing Mortgage Insurance Fund, the National Defense Housing Insurance Fund, the Section 220 Housing Insurance Fund, the Section 220 Home Improvement Account, the Section 221 Housing Insurance Fund, the Experimental Housing Insurance Fund, the Apartment Unit Insurance Fund, or the Servicemen’s Mortgage Insurance Fund, the Commissioner is hereby authorized to transfer funds from any one or more of such insurance funds or accounts to any other such fund or account in such amounts and at such times as the Commissioner may determine, taking into consideration the requirements of such funds or accounts, separately and jointly to carry out effectively the insurance programs for which such funds or accounts were established.” (g) Section 220(f) of such Act is amended by— (1) striking out “or” at the end of paragraph (1), (2) striking out the period at the end of paragraph (2) and inserting in lieu thereof “; or”, and (3) adding at the end thereof the following: “(3) as to mortgages meeting the requirements of this section that are insured or initially endorsed for insurance on or after the date of enactment of the Housing Act of 1961, notwithstanding the provisions of paragraphs (1) and (2) of this subsection, the Commissioner in his discretion, in accordance with such regulations as he may prescribe, may make payments pursuant to such paragraphs in cash or in debentures (as provided in the mortgage insurance contract), or may acquire a mortgage loan that is in default and the security therefor upon payment to the mortgagee in cash or in debentures (as provided in the mortgage insurance contract) of a total amount equal to the unpaid principal balance of the loan plus any accrued interest and any advances approved by the Commissioner and made previously by the mortgagee under the provisions of the mortgage. After the acquisition of the mortgage by the Commissioner the mortgagee shall have no further rights, liabilities, or obligations with respect to the loan or the security for the loan. The appropriate provisions of sections 204 and 207 relating to the rights, liabilities, and obligations 75 Stat. 182 of a mortgagee shall apply with respect to the Commissioner when he has acquired an insured mortgage under this paragraph, in accordance with and subject to regulations (modifying such provisions to the extent necessary to render their application for such purposes appropriate and effective) which shall be prescribed by the Commissioner, except that as applied to mortgages so acquired (A) all references in section 204 to the Mutual Mortgage Insurance Fund or the Fund shall be construed to refer to the Section 220 Housing Insurance Fund, (B) all references section 204 to section 203 shall be construed to refer to this section, and (C) all references in section 207 to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Section 220 Housing Insurance Fund.” (h)(1) Section 223(a) of such Act is amended by striking out “213, or 222” each place it appears and inserting in lieu thereof “213, 220, 221, 222, 231, 232, or 233”. (2) Section 223 (a)(7) of such Act is amended— (A) by striking out “section 903 or section 908 of title IX” and inserting in lieu thereof “section 220, 221, 903, or 908”; and (B) by striking out “insured under section 608 or 908”. (3) Section 223 of such Act is further amended by adding at the end thereof the following new subsection: “(d) With respect to any mortgage, other than a mortgage covering a one- to four-family structure, heretofore or hereafter insured by the Commissioner, and notwithstanding any other provision of this Act, when the taxes, interest on the mortgage debt, mortgage insurance premiums, hazard insurance premiums, and the expense of maintenance and operation of the project covered by such mortgage during the first two years following the date of completion of the project, as determined by the Commissioner, exceed the project income, the Commissioner may, in his discretion and upon such terms and conditions as he may prescribe, permit the excess of the foregoing expenses over the project income to be added to the amount of such mortgage, and extend the coverage of the mortgage insurance thereto, and such additional amount shall be deemed to be part of the original face amount of the mortgage.” (i) The first sentence of section 224 of such Act is amended to read as follows: “Notwithstanding any other provisions of this Act, debentures issued under any section of this Act with respect to a loan or mortgage accepted for insurance on or after thirty days following the effective date of the Housing Act of 1954 (except debentures issued pursuant to paragraph (4) of section 221(g)) shall bear interest at the rate in effect on the date the commitment to insure the loan or mortgage was issued, or the date the loan or mortgage was endorsed for insurance, or (when there are two or more insurance endorsements) the date the loan or mortgage was initially endorsed for insurance, whichever rate is the highest, except that debentures issued pursuant to section 220(f), section 220(h)(7), section 221(g), or section 233 may, at the discretion of the Commissioner, bear interest at the rate in effect on the date they are issued.” (j) Section 226 of such Act is amended by— (1) striking out in the first sentence “222, or” and inserting in lieu thereof “222, 233, 234, or”; and (2) striking out in the third sentence the words “that a written statement setting forth such estimate” and inserting in lieu thereof the following: “or on the basis of any other estimates of the Commissioner, that a written statement setting forth such estimate or estimates, as the case may be,”. 75 Stat. 183 (k) Section 227 of such Act is amended by— (1) striking out in subsection (a) “or (vi) under section 810 if the mortgage meets the requirements of subsection (f)” and inserting in lieu thereof “(vi) under section 233 if the mortgage meets the requirements of subsection (b)(2), or (vii) under section 810 if the mortgage meets the requirements of subsection (f)”; (2) striking out in subsection (b) the word “value” and inserting in lieu thereof “value, cost,”; and (3) striking out in the second and third sentences of subsection (c) “section 221 if the mortgage meets the requirements of paragraph (4) of subsection (d) thereof, or section 231,” and inserting in lieu thereof “section 221(d)(3), section 221(d)(4), section 231, or section 233(b)(2),”. (l) Section 229 of such Act is amended to read as follows: “voluntary termination of insurance “Sec. 229. Notwithstanding any other provision of this Act and with respect to any loan or mortgage heretofore or hereafter insured under this Act, except under section 2, the Commissioner is authorized to terminate any insurance contract upon request by the borrower or mortgagor and the financial institution or mortgagee and upon payment of such termination charge as the Commissioner determines to be equitable, taking into consideration the necessity of protecting the various insurance Funds and Accounts. Upon such termination, borrowers and mortgagors and financial institutions and mortgagees shall be entitled to the rights, if any, to which they would be entitled under this Act if the insurance contract were terminated by payment in full of the insured loan or mortgage.” (m) Section 231(c)(2) of such Act is amended to read as follows: “(2) not exceed, for such part of such property or project as may be attributable to dwelling use (excluding exterior land improvements as defined by the Commissioner), $2,250 per room (or $9,000 per family unit if the number of rooms in such property or project is less than four per family unit): Provided, That as to projects to consist of elevator-type structures, the Commissioner may, in his discretion, increase the dollar amount limitation of $2,250 per room to not to exceed $2,750 per room and the dollar amount limitation of $9,000 per family unit to not to exceed $9,400 per family unit, as the case may be, to compensate for the higher costs incident to the construction of elevator-type structures of sound standards of construction and design; except that the Commissioner may, by regulation, increase any of the foregoing dollar amount limitations contained in this paragraph by not to exceed $1,250 per room, without regard to the number of rooms being less than four, or four or more, in any geographical area where he finds that cost levels so require;”.