§1701l — Title 12 Banks and Banking | U.S. Code

Summary

If a house has a mortgage insured under the National Housing Act, it cannot be sold with financing that has an interest rate higher than the rate set by the Secretary of Housing and Urban Development while the mortgage stays insured. The sale also cannot give the buyer worse repayment, payoff, foreclosure, or forfeiture rules than those already in the insured mortgage.

Title 12, §1701l

Banks and Banking — Source: USLM XML via OLRC

It is the intent of Congress that no sale of a dwelling on which a mortgage is insured under the National Housing Act, as amended [12 U.S.C. 1701 et seq.], shall be financed, while such mortgage is so insured, at an interest rate higher than that prescribed by the Secretary of Housing and Urban Development. It is the further intent of Congress that no such sale shall be made, while such mortgage is so insured, on terms less favorable to the purchaser as to amortization, retirement, foreclosure, or forfeiture than those contained in such mortgage.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Housing Act, as amended, referred to in text, is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see section 1701 of this title and Tables. Codification Section was enacted as part of the Housing Act of 1950, and not as part of the National Housing Act which comprises this chapter.

Amendments

1967—Pub. L. 90–19 substituted “Secretary of Housing and Urban Development” for “Federal Housing Commissioner”.

§1701l Limitation on Interest Rates of Insured Mortgages; Terms of Sales