Title 12, Banks and BankingRelease 119-102
§1735f–6 Secondary Mortgages Held by State or Local Governmental Agency on Insured Properties
Title 12 › CHAPTER 13 — NATIONAL HOUSING › SUBCHAPTER V — MISCELLANEOUS › § 1735f–6
Summary
Mortgage insurance cannot be refused just because the home also has a second mortgage or loan from a state or local government, as long as its terms are approved by the Secretary.
Full Legal Text
Title 12, §1735f–6
Banks and Banking, Source: USLM XML via OLRC
In carrying out the provisions of subchapter II of this chapter with respect to insuring mortgages secured by a one- to four-family dwelling unit, the Secretary may not deny such insurance for any such mortgage solely because the dwelling unit which secures such mortgage will be subject to a secondary mortgage or loan made or insured, or other secondary lien held, by any State or local governmental agency or instrumentality under terms and conditions approved by the Secretary.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1735f–6
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102