Page:United States Statutes at Large Volume 112 Part 3.djvu/841

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PUBLIC LAW 105-276—OCT. 21, 1998 112 STAT. 2671 of the National Housing Act (12 U.S.C. 1710) is amended by striking "SEC. 204." and all that follows through the end of subsection (a) and inserting the following: "SEC. 204. (a) IN GENERAL.— "(1) AUTHORIZED CLAIMS PROCEDURES. — The Secretary may, in accordance with this subsection and terms and conditions prescribed by the Secretary, pay insurance benefits to a mortgagee for any mortgage insured under section 203 through any of the following methods: " (A) ASSIGNMENT OF MORTGAGE.—The Secretary may pay insurance benefits whenever a mortgage has been in a monetary default for not less than 3 full monthly installments or whenever the mortgagee is entitled to foreclosure for a nonmonetary default. Insurance benefits shall be paid pursuant to this subparagraph only upon the assignment, transfer, and delivery to the Secretary of— "(i) all rights and interests arising under the mortgage; "(ii) all claims of the mortgagee against the mortgagor or others arising out of the mortgage transaction; "(iii) title evidence satisfactory to the Secretary; and "(iv) such records relating to the mortgage transaction as the Secretary may require. "(B) CONVEYANCE OF TITLE TO PROPERTY. — The Secretary may pay insurance benefits if the mortgagee has acquired title to the mortgaged property through foreclosure or has otherwise acquired such property from the mortgagor after a default upon— "(i) the prompt conveyance to the Secretary of title to the property which meets the standards of the Secretary in force at the time the mortgage was insured and which is evidenced in the manner provided by such standards; and "(ii) the assignment to the Secretary of all claims of the mortgagee against the mortgagor or others, arising out of mortgage transaction or foreclosure proceedings, except such claims as may have been released with the consent of the Secretary. The Secretary may permit the mortgagee to tender to the Secretary a satisfactory conveyance of title and transfer of possession directly from the mortgagor or other appropriate grantor, and may pay to the mortgagee the insurance benefits to which it would otherwise be entitled if such conveyance had been made to the mortgagee and from the mortgagee to the Secretary. "(C) CLAIM WITHOUT CONVEYANCE OF TITLE. — The Secretary may pay insurance benefits upon sale of the mortgaged property at foreclosure where such sale is for at least the fair market value of the property (with appropriate adjustments), as determined by the Secretary, and upon assignment to the Secretary of all claims referred to in clause (ii) of subparagraph (B). "(D) PREFORECLOSURE SALE.— The Secretary may pay insurance benefits upon the sale of the mortgaged property by the mortgagor after default and the assignment to the