§1715g — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary may insure a mortgage that otherwise meets the rules even if the borrower is not living in the home when the insurance is issued. This is allowed when the borrower left to enter active duty in a uniformed service after applying for the insurance and says they intend to live in the property after release from active duty.

Title 12, §1715g

Banks and Banking — Source: USLM XML via OLRC

The Secretary is hereby authorized to insure any mortgage otherwise eligible for insurance under any of the provisions of this chapter without regard to any requirement with respect to the occupancy of the mortgagor of the property at the time of insurance, where the Secretary is satisfied that the inability of the mortgagor to meet such requirement is by reason of his entry on active duty in a uniformed service subsequent to the filing of an application for insurance and the mortgagor expresses an intent to meet such requirement upon his release from active duty.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this Act”, meaning 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 Tables.

Amendments

1988—Pub. L. 100–242 substituted “with respect to the occupancy of the mortgagor” for “that the mortgagor be the occupant” and “meet such requirement” for “occupy the property” wherever appearing. 1970—Pub. L. 91–621 substituted “on active duty in a uniformed service” and “release from active duty” for “into military service” and “discharge from military service”. 1967—Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing.

Statutory Notes and Related Subsidiaries

Effective Date

of 1988 AmendmentAmendment by Pub. L. 100–242 applicable only with respect to mortgages insured pursuant to conditional commitment issued on or after Feb. 5, 1988, or in accordance with direct endorsement program (24 CFR 200.163), if approved underwriter of mortgagee signs appraisal report for property on or after Feb. 5, 1988, see section 406(d) of Pub. L. 100–242, set out as a note under section 1709 of this title.

§1715g Insurance of Mortgage Where Mortgagor Is Not Occupant of Property