12 U.S.C. § 1715q: Delivery of statement of…

Summary

The Secretary must require that, when a single- or two-family home approved for certain federal mortgage insurance is being sold for the buyer to live in, the seller, builder, or a person the Secretary names give the buyer a written notice before the sale showing the appraised value set by the Secretary. The rule does not apply if the mortgage was insured or the insurance commitment was issued before August 2, 1954. If the loan amount is based on the Secretary’s replacement-cost estimate or other estimates, the Secretary can instead require a written statement of those estimates.

Title 12, §1715q

Banks and Banking, Source: USLM XML via OLRC

The Secretary is authorized and directed to require that in connection with any property upon which there is located a dwelling designed principally for a single-family residence or a two-family residence and which is approved for mortgage insurance under section 1709 or 1715e of this title with respect to any property or project of a corporation or trust of the character described in paragraph (2) of subsection (a) of section 1715e of this title, or section 1715k, 1715l, 1715m, 1715x, 1715y, 1715z(i), 1715z–2, or 1750b of this title, the seller or builder or such other person as may be designated by the Secretary shall agree to deliver, prior to the sale of the property, to the person purchasing such dwelling for his own occupancy, a written statement setting forth the amount of the appraised value of the property as determined by the Secretary. This section shall not apply in any case where the mortgage involved was insured or the commitment for such insurance was issued prior to August 2, 1954. Notwithstanding the first sentence of this section, the Secretary is authorized to require, in connection with any mortgage where the mortgage amount is computed on the basis of the Secretary’s estimate of the replacement cost of the property, or on the basis of any other estimates of the Secretary, that a written statement setting forth such estimate or estimates, as the case may be, be furnished under this section in lieu of a written statement setting forth the amount of the appraised value of the property.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1715m of this title, referred to in text, was repealed by Pub. L. 110–289, div. B, title I, § 2120(a)(5),

July 30, 2008, 122 Stat. 2835. section 1715z–2 of this title, referred to in text, was repealed by Pub. L. 110–289, div. B, title I, § 2120(a)(6),

July 30, 2008, 122 Stat. 2835.

Amendments

1968—Pub. L. 90–448 inserted references to section 1715z(i) and 1715z–2 of this title. 1967—Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing, and “Secretary’s” for “Commissioner’s”. 1961—Pub. L. 87–70 inserted references to section 1715x and 1715y of this title, and substituted “or on the basis of any other estimates of the Commissioner, that a written statement setting forth such estimate or estimates, as the case may be,” for “that a written statement setting forth such estimate”. 1957—Pub. L. 85–104 inserted sentence authorizing estimate of replacement cost in lieu of an estimate of value where mortgage amount is based upon replacement cost.

§1715q Delivery of Statement of Appraisal or Estimates to Home Buyers