PRIA, Government Policy, Made Personal

Summary

The Secretary can end insurance on any loan or mortgage insured under this chapter if both the borrower and the lender ask for it and pay a fair termination charge that helps protect the insurance funds. That authority does not apply to loans covered by section 1703, or by section 1715z–15 and Subtitle B of the Emergency Low Income Housing Preservation Act of 1987. After the insurance ends, the borrower and the lender have the same rights they would have if the loan had been paid off in full.

Title 12, §1715t

Banks and Banking, Source: USLM XML via OLRC

Notwithstanding any other provision of this chapter and with respect to any loan or mortgage heretofore or hereafter insured under this chapter, except under section 1703 of this title and except as specified under section 1715z–15 of this title and subtitle B of the Emergency Low Income Housing Preservation Act of 1987,, the Secretary is authorized to terminate any insurance contract upon request by the borrower or mortgagor and the financial institution or mortgagee and upon payment of such termination charge as the Secretary determines to be equitable, taking into consideration the necessity of protecting the various insurance Funds. Upon such termination, borrowers and mortgagors and financial institutions and mortgagees shall be entitled to the rights, if any, to which they would be entitled under this chapter if the insurance contract were terminated by payment in full of the insured loan or mortgage.

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. The Emergency Low Income Housing Preservation Act of 1987, referred to in text, is title II of Pub. L. 100–242, Feb. 5, 1988, 101 Stat. 1877, which, as amended by Pub. L. 101–625, is known as the Low-Income Housing Preservation and Resident Homeownership Act of 1990. Subtitle B of title II, which was formerly set out as a note under section 1715l of this title and which amended section 1715z–6 of this title, was amended generally by Pub. L. 101–625 and is classified generally to subchapter I (§ 4101 et seq.) of chapter 42 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 4101 of this title and Tables.

Amendments

1989—Pub. L. 101–235 inserted “and except as specified under section 1715z–15 of this title and subtitle B of the Emergency Low Income Housing Preservation Act of 1987,” after “section 1703 of this title”. 1967—Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing. 1965—Pub. L. 89–117 struck out “and Accounts” after “various Insurance Funds”. 1961—Pub. L. 87–70 amended section generally, authorizing voluntary termination of insurance contracts with respect to loans insured under this chapter.

§1715t Voluntary Termination of Insurance