12-U.S.C.-1715Z-14
§1715Z-14 – §1715Z-14. Risk-Sharing Demonstration
Pathway
Title 12 > Chapter 13 > Subchapter II > Section 1715z-14
Details
- Reference: Section 1715z-14
- Legend: §1715Z-14 – §1715Z-14. Risk-Sharing Demonstration
- USCode Year: 2013
Provision Content
(a) Demonstration mortgage risk-sharing program; areas; number of mortgages
The purpose of this section is to authorize a demonstration mortgage risk-sharing program designed to test the feasibility of entering into risk-sharing contracts with private mortgage insurers and with insured community development financial institutions in order to reduce Government risk and administrative costs, and to speed mortgage processing. The Secretary shall limit the demonstration under this section to not more than four administrative regions of the Department of Housing and Urban Development, and shall assure that the program is in the financial interest of the Government and will not result in loss of employment by any employees of the Department of Housing and Urban Development before the expiration of the 5-year period beginning on December 21, 2000. The aggregate number of mortgages for which risk of nonpayment is shared under this section in any administrative region of the Department of Housing and Urban Development in any fiscal year may not exceed 20 percent of the aggregate number of mortgages and loans insured by the Secretary under this subchapter in such region during the preceding fiscal year.
(b) One- to four-family dwellings; requirements for private mortgage insurance companies
Notwithstanding any other provision of this chapter inconsistent with this section, the Secretary is authorized, in providing mortgage insurance with respect to one- to four-family dwellings under sections 1709(b), 1715y, and 1715z–10 of this title, to enter into risk-sharing contracts with private mortgage insurance companies which have been determined to be qualified insurers under section 1717(b)(2)(C) of this title and with insured community development financial institutions. Such contracts shall require private mortgage insurance companies and insured community development financial institutions to—
(1) assume a secondary percentage of loss on any mortgage insured pursuant to section 1709(b), 1715y, or 1715z–10 of this title covering a one- to four-family dwelling, which percentage of loss shall be set forth in the risk-sharing contract, with the first percentage of loss to be borne by the Secretary;
(2) perform or delegate underwriting, credit approval, appraisal, inspection, commitment, claims processing, property disposition, or other functions as the Secretary shall approve as consistent with the purposes of this section and shall set forth in the risk-sharing contract.
(c) Required contract provisions
Any contract for risk-sharing under this section shall contain such provisions relating to the sharing of premiums received by the Secretary with a private mortgage insurer or insured community development financial institution on a sound actuarial basis, establishment of loss reserves, manner of calculating claims on such risk-sharing contract, conditions with respect to foreclosure, handling and disposition of property prior to claim or settlement, rights of assignees, and other similar matters as the Secretary may prescribe pursuant to regulations. Pursuant to a contract under this section, a private mortgage insurance company or insured community development financial institution shall endorse loans for risk-sharing and take such other actions on behalf of the Secretary and in the Secretarys name as the Secretary may authorize.
(d) Mortgages offered for inclusion by Secretary
The Secretary shall require any private mortgage insurance company or insured community development financial institution participating in the program under this section to provide risk-sharing for those mortgages offered by the Secretary for inclusion in the program.
(e) Insured community development financial institution
For purposes of this section, the term insured community development financial institution means a community development financial institution, as such term is defined in section 4702 of this title that is an insured depository institution (as such term is defined in section 1813 of this title) or an insured credit union (as such term is defined in section 1752 of this title).
(June 27, 1934, ch. 847, title II, §249, as added Pub. L. 98–181, title I [title IV, §428(a)], Nov. 30, 1983, 97 Stat. 1219; amended Pub. L. 99–120, §1(g), Oct. 8, 1985, 99 Stat. 502; Pub. L. 99–156, §1(g), Nov. 15, 1985, 99 Stat. 815; Pub. L. 99–219, §1(g), Dec. 26, 1985, 99 Stat. 1730; Pub. L. 99–267, §1(g), Mar. 27, 1986, 100 Stat. 73; Pub. L. 99–272, title III, §3007(g), Apr. 7, 1986, 100 Stat. 105; Pub. L. 99–289, §1(b), May 2, 1986, 100 Stat. 412; Pub. L. 99–345, §1, June 24, 1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100–122, §1, Sept. 30, 1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub. L. 106–554, §1(a)(7) [title I, §143], Dec. 21, 2000, 114 Stat. 2763, 2763A–618.)
References in Text
Section 1715z–10 of this title, referred to in subsec. (b), was repealed by Pub. L. 110–289, div. B, title I, §2120(a)(7), July 30, 2008, 122 Stat. 2835.
Amendments
2000—Pub. L. 106–554, §1(a)(7) [title I, §143(1)], substituted Risk-sharing demonstration for Reinsurance contracts in section catchline.
Subsec. (a). Pub. L. 106–554, §1(a)(7) [title I, §143(2), (3)], in heading and first sentence substituted risk-sharing for reinsurance wherever appearing, in first sentence inserted and with insured community development financial institutions after private mortgage insurers, in second sentence substituted four administrative regions for two administrative regions and the expiration of the 5-year period beginning on December 21, 2000 for March 15, 1988, and in last sentence substituted mortgages for which risk of nonpayment is shared for mortgages insured and 20 percent for 10 percent.
Subsec. (b). Pub. L. 106–554, §1(a)(7) [title I, §143(2), (4)(A), (B)], in first sentence of introductory provisions, substituted , in providing for to provide, , to enter into for through and risk-sharing for reinsurance and inserted and with insured community development financial institutions before period at end and, in second sentence of introductory provisions, inserted and insured community development financial institutions after private mortgage insurance companies.
Subsec. (b)(1). Pub. L. 106–554, §1(a)(7) [title I, §143(4)(C)], added par. (1) and struck out former par. (1) which read as follows: assume a percentage of loss on any mortgage insured pursuant to section 1709(b), 1715y, or 1715z–10 of this title covering a one- to four-family dwelling, which percentage of loss shall be set forth in the risk-sharing contract; and.
Pub. L. 106–554, §1(a)(7) [title I, §143(2)], substituted risk-sharing for reinsurance.
Subsec. (b)(2). Pub. L. 106–554, §1(a)(7) [title I, §143(4)(D)], substituted perform or delegate underwriting, for carry out (under appropriate delegation) such and functions as the Secretary for function as the Secretary pursuant to regulations, and inserted before period at end and shall set forth in the risk-sharing contract.
Subsec. (c). Pub. L. 106–554, §1(a)(7) [title I, §143(2), (5)], in first sentence, substituted contract for for contract of and risk-sharing for reinsurance, inserted received by the Secretary with a private mortgage insurer or insured community development financial institution after sharing of premiums, substituted loss reserves for insurance reserves, such risk-sharing contract for such insurance, and rights of assignees for right of assignees and, in second sentence, inserted or insured community development financial institution after private mortgage insurance company and substituted loans for risk-sharing for loans for insurance.
Subsec. (d). Pub. L. 106–554, §1(a)(7) [title I, §143(2), (6)], inserted or insured community development financial institution after private mortgage insurance company and substituted risk-sharing for reinsurance.
Subsec. (e). Pub. L. 106–554, §1(a)(7) [title I, §143(7)], added subsec. (e).
1987—Subsec. (a). Pub. L. 100–200 substituted March 15, 1988 for December 16, 1987.
Pub. L. 100–179 substituted December 16, 1987 for December 2, 1987.
Pub. L. 100–170 substituted December 2, 1987 for November 15, 1987.
Pub. L. 100–154 substituted November 15, 1987 for October 31, 1987.
Pub. L. 100–122 substituted October 31, 1987 for September 30, 1987.
1986—Subsec. (a). Pub. L. 99–430 substituted September 30, 1987 for September 30, 1986.
Pub. L. 99–345 substituted September 30, 1986 for June 6, 1986.
Pub. L. 99–289 substituted June 6, 1986 for April 30, 1986.
Pub. L. 99–272 made amendment identical to Pub. L. 99–219. See 1985 Amendment note below.
Pub. L. 99–267 substituted April 30, 1986 for March 17, 1986.
1985—Subsec. (a). Pub. L. 99–219 substituted March 17, 1986 for December 15, 1985.
Pub. L. 99–156 substituted December 15, 1985 for November 14, 1985.
Pub. L. 99–120 substituted November 14, 1985 for September 30, 1985.
Evaluation of Reinsurance Program; Report to Congress
Pub. L. 98–181, title I [title IV, §428(b)], Nov. 30, 1983, 97 Stat. 1219, provided that: The Secretary of Housing and Urban Development shall evaluate the reinsurance program under section 249 of the National Housing Act [this section] and, not later than March 1, 1985, submit to the Congress a report setting forth the results of such evaluation. Such report shall include an evaluation of the possible effect of a reinsurance program on the characteristics of the pool of mortgages remaining wholly under the applicable insurance funds and the actuarial soundness of such funds under such conditions.
U.S. Encyclopedia of Law Coverage
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