Title 12, Banks and BankingRelease 119-102
§1701l Limitation on Interest Rates of Insured Mortgages; Terms of Sales
Title 12 › CHAPTER 13 — NATIONAL HOUSING › § 1701l
Summary
Homes with mortgages insured under the National Housing Act cannot be sold with financing at interest rates higher than HUD sets, or on payment, payoff, foreclosure, or loss terms worse than the mortgage.
Full Legal Text
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.
Legislative History
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”.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1701l
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102