12 U.S.C. § 5220a: Application of GSE…

Summary

When the Secretary of the Treasury uses funds from title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.) to prevent or lessen home foreclosures, any help for mortgages (for example, changing, refinancing, making, guaranteeing, or insuring a loan) must follow a size rule. The Secretary must make sure the largest loan amount that can get that help is at least as big as the Freddie Mac (Federal Home Loan Mortgage Corporation) purchase limit that applies at that time for the area where the property is located.

Title 12, §5220a

Banks and Banking, Source: USLM XML via OLRC

In making any assistance available to prevent and mitigate foreclosures on residential properties, including any assistance for mortgage modifications, using any amounts made available to the Secretary of the Treasury under title I of the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5211 et seq.], the Secretary shall provide that the limitation on the maximum original principal obligation of a mortgage that may be modified, refinanced, made, guaranteed, insured, or otherwise assisted, using such amounts shall not be less than the dollar amount limitation on the maximum original principal obligation of a mortgage that may be purchased by the Federal Home Loan Mortgage Corporation that is in effect, at the time that the mortgage is modified, refinanced, made, guaranteed, insured, or otherwise assisted using such amounts, for the area in which the property involved in the transaction is located.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Emergency Economic Stabilization Act of 2008, referred to in text, is div. A of Pub. L. 110–343, Oct. 3, 2008, 122 Stat. 3765. Title I of the Act is classified principally to this subchapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 5201 of this title and Tables. Codification Section was enacted as part of the Helping Families Save Their Homes Act of 2009, and not as part of the Emergency Economic Stabilization Act of 2008 which comprises this chapter.

§5220a Application of Gse Conforming Loan Limit to Mortgages Assisted with Tarp Funds