§1430b — Title 12 Banks and Banking | U.S. Code

Summary

Federal Home Loan Banks may make loans to mortgage lenders that are approved under title II of the National Housing Act. Those lenders must be chartered, able to keep operating, supervised by a government agency, and mainly make mortgages with their own money. These loans do not have to follow other chapter rules but must be backed by mortgages insured under title II. The Director sets the interest rate and other terms. No loan can be more than 90 percent of the unpaid principal of the mortgage used as security. A State housing finance agency can get an advance to help make mortgages for people who meet the income limits in sections 142(d) or 143(f) of title 26 without having to put up a title II insured mortgage or other collateral, as long as the advance meets this subsection’s rules, follows section 1430(a), and any real estate collateral is single‑family or multifamily residential mortgages.

Title 12, §1430b

Banks and Banking — Source: USLM XML via OLRC

(a)Each Federal Home Loan Bank is authorized to make advances to nonmember mortgagees approved under title II of the National Housing Act [12 U.S.C. 1707 et seq.]. Such mortgagees must be chartered institutions having succession and subject to the inspection and supervision of some governmental agency, and whose principal activity in the mortgage field must consist of lending their own funds. Such advances shall not be subject to the other provisions and restrictions of this chapter, but shall be made upon the security of insured mortgages, insured under title II of the National Housing Act. Advances made under the terms of this section shall be at such rates of interest and upon such terms and conditions as shall be determined by the Director, but no advance may be for an amount in excess of 90 per centum of the unpaid principal of the mortgage loan given as security.

(b)An advance made to a State housing finance agency for the purpose of facilitating mortgage lending that benefits individuals and families that meet the income requirements set forth in section 142(d) or 143(f) of title 26, need not be collateralized by a mortgage insured under title II of the National Housing Act [12 U.S.C. 1707 et seq.] or otherwise, if—

(1)such advance otherwise meets the requirements of this subsection; and

(2)such advance meets the requirements of section 1430(a) of this title, and any real estate collateral for such loan comprises single family or multifamily residential mortgages.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Housing Act, referred to in text, is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

Amendments

2008—Subsec. (a). Pub. L. 110–289 substituted “the Director” for “the Board”. 1992—Pub. L. 102–550 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). 1989—Pub. L. 101–73 substituted “Board” for “Federal Home Loan Bank Board”.

§1430b Advances to nonmember mortgagee; terms and conditions