Page:United States Statutes at Large Volume 80 Part 1.djvu/1324
PUBLIC LAW 89-754-NOV. 3, 1966
(e) There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section. All funds so appropriated shall remain available until expended when so provided in appropriation Acts. MORTGAGE RELIEF FOR CERTAIN HOMEOWNERS 79 Stat. 458. 12 USC 1735g.
SEC. 1012. That part of section 107 of the Housing and Urban Development Act of 1965 which precedes subsection (f) is amended to read as follows: "MORTGAGE
"SEC. 107. (a) For the purposes of this section— "(1) The term 'mortgage' means a mortgage which (A) is 12 USC 1701. insured under the National Housing Act, or (B) secures a home loan guaranteed or insured under the Servicemen's Readjustment 72l^l\%\\^ Act of 1944 or chapter 37 of title 38, United States Code. 72 Stat. 1203. " (2) The term 'Federal mortgage agency' means— 38 USC 1801. " (A) the Secretary of Housing and Urban Development when used in connection with mortgages insured under the National Housing Act, and " (B) the Administrator of Veterans' Affairs when used in connection with mortgages securing home loans guaranteed or insured under the Servicemen's Readjustment Act of 1944 or chapter 37 of title 38, United States Code. "(3) The term 'distressed mortgagor' means an individual who— " (A) was employed by the Federal Government at, or was assigned as a serviceman to, a military base or other Federal installation and whose employment or service at such base or installation was terminated subsequent to November 1, 1964, as the result of the closing (in whole or in part) of such base or installation; and " (B) is the owner-occupant of a dwelling situated at or near such base or installation and upon which there is a mortgage securing a loan which is in default because of the inability of such individual to make payments due under such mortgage. " (b)(1) Any distressed mortgagor, for the purpose of avoiding foreclosure of his mortgage, may apply to the appropriate Federal mortgage agency for a determination that suspension of his obligation to make payments due under such mortgage during a temporary period is necessary in order to avoid such foreclosure. "(2) Upon receipt of an application made under this subsection by a distressed mortgagor, the Federal mortgage agency shall issue to such mortgagor a certificate of moratorium if it determines, after consultation with the interested mortgagee, that such action is necessary to avoid foreclosure. "(3) Prior to the issuance to any distressed mortgagor of a certificate of moratorium under paragraph (2), the Federal mortgage agency, the mortgagor, and the mortgagee shall enter into a binding agreement under which— " (A) the mortgagor will be required to make payments to such agency, after the expiration of such certificate, in an aggregate amount equal to the amount paid by such agency on behalf of such mortgagor as proAaded in subsection (c), together with interest thereon at a rate not to exceed the rate provided in the mortgage; the manner and time in which such payments shall be made to be