Title 12, Banks and BankingRelease 119-102
§1701l–1 Mortgage Proceeds Fraudulently Misappropriated by Mortgagor; Recovery of Deficiency After Foreclosure
Title 12 › CHAPTER 13 — NATIONAL HOUSING › § 1701l–1
Summary
The Secretary of Housing and Urban Development must try to collect any remaining debt after a foreclosure. This applies when the mortgage was insured or helped by the federal government and the Secretary believes the borrower took the loan money by fraud.
Full Legal Text
Title 12, §1701l–1
Banks and Banking, Source: USLM XML via OLRC
The Secretary of Housing and Urban Development shall take action to secure the payment of any deficiency after foreclosure on a mortgage insured or assisted under Federal law where the Secretary has reason to believe that the mortgage proceeds have been fraudulently misappropriated by the mortgagor.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Section was enacted as part of the Housing and Community Development Act of 1974, and not as part of the National Housing Act which comprises this chapter.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1701l–1
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102