§2701 — Title 12 Banks and Banking | U.S. Code

Summary

Creates a backup federal program to stop mass home foreclosures by giving short-term emergency loans, advances, and mortgage-relief payments to help people pay their mortgages. Congress found the nation was in a severe recession, many workers lost income or jobs, homeowners’ ability to pay fell, and many could keep their homes with temporary help.

Title 12, §2701

Banks and Banking — Source: USLM XML via OLRC

(a)The Congress finds that—

(1)the Nation is in a severe recession and that the sharp downturn in economic activity has driven large numbers of workers into unemployment and has reduced the incomes of many others;

(2)as a result of these adverse economic conditions the capacity of many homeowners to continue to make mortgage payments has deteriorated and may further deteriorate in the months ahead, leading to the possibility of widespread mortgage foreclosures and distress sales of homes; and

(3)many of these homeowners could retain their homes with temporary financial assistance until economic conditions improve.

(b)It is the purpose of this chapter to provide a standby authority which will prevent widespread mortgage foreclosures and distress sales of homes resulting from the temporary loss of employment and income through a program of emergency loans and advances and emergency mortgage relief payments to homeowners to defray mortgage expenses.

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Statutory Notes and Related Subsidiaries

Short Title

Pub. L. 94–50, § 1,

July 2, 1975, 89 Stat. 249, provided: “That this Act [enacting this chapter, amending section 1723e and 1735b of this title and section 1452 and 4106 of Title 42, The Public Health and Welfare, enacting provisions set out as a note under this section, and amending provisions set out as a note under section 1723e of this title] may be cited as the ‘Emergency Housing Act of 1975’.” Pub. L. 94–50, title I, § 101,

July 2, 1975, 89 Stat. 249, provided that: “This title [enacting this chapter] may be cited as the ‘Emergency Homeowners’ Relief Act’.”

§2701 Congressional Findings and Declaration of Purpose

Summary

Title 12, §2701

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

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