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Title 12, Banks and BankingRelease 119-110

§2707 Authority of Secretary

Title 12 › CHAPTER 28 — EMERGENCY MORTGAGE RELIEF › § 2707

Last updated Sep 22, 2026|Official source

Summary

The Secretary may make the rules needed to carry out this chapter. The Secretary can use the chapter’s fund to pay costs tied to getting, holding, fixing up, or selling property the government gets back when it enforces loans or other claims. Even if other laws say otherwise, the Secretary may, before or after a borrower defaults, cancel redemption or other rights in mortgages, foreclose, sue to protect rights, and bid for or buy property at sale. After taking property, the Secretary can finish work on it, fix it up, sell it, lease it, or handle it any other way, and can try to collect any related claims. If a State already runs a program that the Secretary finds is mostly the same, the State may administer these funds and does not have to change its program.

Full Legal Text

Title 12, §2707

Banks and Banking, Source: USLM XML via OLRC

(a)Rules and regulations
The Secretary is authorized to make such rules and regulations as may be necessary to carry out the provisions of this chapter.
(b)Payment of expenses and charges relating to acquisition, handling, improvement, or disposal of real and personal property
Notwithstanding any other provision of law relating to the acquisition, handling, improvement, or disposal of real or other property by the United States, the Secretary shall have power, for the protection of the interest of the fund authorized under this chapter, to pay out of such fund all expenses or charges in connection with the acquisition, handling, improvement, or disposal of any property, real or personal, acquired by the Secretary as a result of recoveries under security, subrogation, or other rights.
(c)Powers with respect to property rights held by Secretary
In the performance of, with respect to, the functions, powers, and duties vested in the Secretary by this chapter, the Secretary shall—
(1)have the power, notwithstanding any other provision of law, whether before or after default, to provide by contract or otherwise for the extinguishment upon default of any redemption, equitable, legal, or other right, title in any mortgage, deed, trust, or other instrument held by or held on behalf of the Secretary under the provisions of this chapter; and
(2)have the power to foreclose on any property or commence any action to protect or enforce any right conferred upon the Secretary by law, contract, or other agreement, and bid for and purchase at any foreclosure or other sale any property in connection with which assistance has been provided pursuant to this chapter. In the event of any such acquisition, the Secretary may, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, complete, remodel and convert, dispose of, lease, and otherwise deal with, such property. Notwithstanding any other provision of law, the Secretary also shall have power to pursue to final collection by way of compromise or otherwise all claims acquired by him in connection with any security, subrogation, or other rights obtained by him in administering this chapter.
(d)Coverage of existing programs
The Secretary shall allow funds to be administered by a State that has an existing program that is determined by the Secretary to provide substantially similar assistance to homeowners. After such determination is made such State shall not be required to modify such program to comply with the provisions of this chapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2010—Pub. L. 111–203 added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date

of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the date on which final

Regulations

implementing that amendment take effect, or on the date that is 18 months after the designated transfer date if such

Regulations

have not been issued by that date, see section 1400(c) of Pub. L. 111–203, set out as a note under section 1601 of Title 15, Commerce and Trade.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2707

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110