12-U.S.C.-1715Z-21
§1715Z-21 – §1715Z-21. Delegation of Insuring Authority to Direct Endorsement Mortgagees
Pathway
Title 12 > Chapter 13 > Subchapter II > Section 1715z-21
Details
- Reference: Section 1715z-21
- Legend: §1715Z-21 – §1715Z-21. Delegation of Insuring Authority to Direct Endorsement Mortgagees
- USCode Year: 2013
Provision Content
(a) Authority
The Secretary may delegate, to one or more mortgagees approved by the Secretary under the direct endorsement program, the authority of the Secretary under this chapter to insure mortgages involving property upon which there is located a dwelling designed principally for occupancy by 1 to 4 families.
(b) Considerations
In determining whether to delegate authority to a mortgagee under this section, the Secretary shall consider the experience and performance of the mortgagee compared to the default rate of all insured mortgages in comparable markets, and such other factors as the Secretary determines appropriate to minimize risk of loss to the insurance funds under this chapter.
(c) Enforcement of insurance requirements
(1) In general
If the Secretary determines that a mortgage insured by a mortgagee pursuant to delegation of authority under this section was not originated in accordance with the requirements established by the Secretary, and the Secretary pays an insurance claim with respect to the mortgage within a reasonable period specified by the Secretary, the Secretary may require the mortgagee approved under this section to indemnify the Secretary for the loss.
(2) Fraud or misrepresentation
If fraud or misrepresentation was involved in connection with the origination, the Secretary may require the mortgagee approved under this section to indemnify the Secretary for the loss regardless of when an insurance claim is paid.
(d) Termination of mortgagees authority
If a mortgagee to which the Secretary has made a delegation under this section violates the requirements and procedures established by the Secretary or the Secretary determines that other good cause exists, the Secretary may cancel a delegation of authority under this section to the mortgagee by giving notice to the mortgagee. Such a cancellation shall be effective upon receipt of the notice by the mortgagee or at a later date specified by the Secretary. A decision by the Secretary to cancel a delegation shall be final and conclusive and shall not be subject to judicial review.
(e) Requirements and procedures
Before approving a delegation under this section, the Secretary shall issue regulations establishing appropriate requirements and procedures, including requirements and procedures governing the indemnification of the Secretary by the mortgagee.
(June 27, 1934, ch. 847, title II, §256, as added Pub. L. 104–204, title IV, §427, Sept. 26, 1996, 110 Stat. 2928.)
U.S. Encyclopedia of Law Coverage
12-U.S.C.-1715Z-13A in the Legal Encyclopedia: Banking Law
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12-U.S.C.-1715X in the Legal Encyclopedia: Mortgage
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12-U.S.C.-1715V in the Legal Encyclopedia: Housing
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