consolidation of fha insurance funds

consolidation of fha insurance funds Sec. 214. Title V of the National Housing Act is amended by adding at the end thereof the following new section: “establishment of general insurance fund “Sec. 519. (a) There is hereby created a General Insurance Fund which shall be used by the Commissioner, on and after the date of the enactment of the Housing and Urban Development Act of 1965, as a revolving fund for carrying out all the insurance provisions of this Act with the exception of those specified in subsection (e). All mortgages or loans insured under this Act pursuant to commitments issued on or after the date of the enactment of the Housing and Urban Development Act of 1965, except those specified in subsection (e), and all loans reported for insurance under section 2 on or after the date of the enactment of the Housing and Urban Development Act of 1965, shall be, insured under the General Insurance Fund. The Commissioner shall transfer to the General Insurance Fund— “(1) the assets and liabilities of all insurance accounts and funds, except the Mutual Mortgage Insurance Fund, existing under this Act immediately prior to the enactment of the Housing and Urban Development Act of 1965; “(2) all outstanding commitments for insurance issued prior to the date of the enactment of the Housing and Urban Development Act of 1965, except those specified in subsection (e); “(3) the insurance on all mortgages and loans insured prior to the date of the enactment, of the Housing and Urban Development Act of 1965, except insurance specified in subsection (e); and “(4) the insurance of all loans made by approved financial institutions pursuant to section 2 prior to the date of the enactment of the Housing and Urban Development Act of 1965. “(b) The general expenses of the operations of the Federal Housing Administration relating to mortgages mid loans which are the obligation of the General Insurance Fund may be charged to the General Insurance Fund. “(c) Moneys in the General Insurance Fund not needed for the current operations of the Federal Housing Administration with respect to mortgages and loans which are the obligation of the General Insurance Fund shall be deposited with the Treasurer of the United States to the credit of such Fund, or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States. The Commissioner may, with the approval of the Secretary of the Treasury, purchase in the open market debentures issued as obligations of the General Insurance Fund or issued prior to the enactment of the Housing and Urban 79 Stat. 472Development Act of 1965 under other provisions of this Act, except debentures issued under the Mutual Mortgage Insurance Fund. Such purchases shall lie made at a price which will provide an investment yield of not less than the yield obtainable from other investments authorized by this section. Debentures so purchased shall be canceled and not reissued. “(d) Premium charges, adjusted premium charges, and appraisal anti other fees received on account of the insurance of any mortgage or loan which is the obligation of the General Insurance Fund, the receipts derived from the property covered by such mortgages and loans and from the claims, debts, contracts, property, and security assigned to the Commissioner in connection there with, and all earnings on the assets of the Fund shall be credited to the General Insurance Fund. The principal of. and interest paid and to be paid on, debentures which are the. obligation of such Fund, cash insurance payments and adjustments, and expenses incurred in the handling, management, renovation, and disposal of properties acquired, in connection with mortgages and loans which are the obligation of such Fund, shall be charged to such Fund. “(e) The General Insurance Fund shall not be used for carrying out the provisions of sections203(b), 203(h), and 203(i), or the provisions of section 213 to the extent that they involve mortgages the insurance for which is title obligation of the Cooperative Management Housing Insurance Fund created by section 213(k); and nothing in this section shall apply to or affect any mortgages, loans, commitments, or insurance under such provisions.”