76 S T A T. ]
P U B U C L A W 8 7 - 7 0 - J U N E 30, 1961
"(3) as to mortgages meeting the requirements of this section debentures, which are insured or initially endorsed for insurance on or after the date of enactment of the Housing Act of 1961, notwithstanding the provisions of paragraphs (1) and (2) of this subsection, the Commissioner in his discretion, in accordance with such regulations as he may prescribe, may make payments pursuant to such paragraphs in cash or in debentures (as provided in the mortgage insurance contract), or may acquire a mortgage loan that is in default and the security therefor upon payment to the mortgagee in cash or in debentures (as provided in the mortgage insurance contract) of a total amount equal to the unpaid principal balance of the loan plus any accrued interest and any advances approved by the Commissioner and made previously by the mortgagee under the provisions of the mortgage, and after the acquisition of any such mortgage by the Commissioner the mortgagee shall have no further rights, liabilities, or obligations with respect to the loan or the security tor the loan. The appropriate provisions of sections 204 and 207 relating to the issuance ^^^^^ ^ ^ c i7io, of debentures shall apply with respect to debentures issued under this paragraph, and the appropriate provisions of sections 204 and 207 relating to the rights, liabilities, and obligations of a mortgagee shall apply with respect to the Commissioner when he has acquired an insured mortgage under this paragraph, in accordance with and subject to regulations (modifying such provisions to the extent necessary to render their application for such purposes appropriate and effective) which shall be prescribed by the Commissioner, except that as applied to mortgages so acquired (A) all references in section 204 to the Mutual Mortgage Insurance Fund or the Fund shall be construed to refer to the Section 221 Housing Insurance Fund, (B) all references in section 204 to 12 USC nisi, section 203 shall be construed to refer to this section, and (C) all references in section 207 to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Section 221 Housing Insurance F u n d; or"; (14) striking out in paragraph (4) of subsection (g) (as redesignated by the preceding paragraph) the phrase "this paragraph (3)", each place it appears, and inserting in lieu thereof "this paragraph"; and (16) inserting in the last sentence of subsection (h) after "cash adjustments," the following: "cash payments,". (b) Section 101(c) of the Housing Act of 1949 is amended by— (1) striking out "under section 220 or 221" and inserting in lieu thereof "under section 220 or section 221(d)(3) "; (2) striking out "of section 220(d), or under section 221 of the National Housing Act, as amended, if the mortgaged property is in an area d e s c r i e d in clause (3) of section 221(a) of said Act, or in a community referred to in clause (2)(B) of said section" and inserting in lieu thereof "of section 220(d) of the National Housing Act"; and (3) striking out clause (iii) and renumbering clause (iv) as clause (iii). (c) Section 305 of the National Housing Act is amended by adding at the end thereof a new subsection as follows: " (h) Notwithstanding clause (2) of section 302(b) and any provision of this Act which is inconsistent with this subsection, the Association is authorized (subject to Presidential action as provided in subsection (a), as limited by subsection (c)) to purchase pursuant to commitments or otherwise, and to service, sell, or otherwise deal in, mortgages insured under the provisions of section 221(d)(3) of this Act." 64207 0-62—13
js sm. 62|.
^8 sm. e^us. 12 USC 1717.
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