Sec. 256. Mutual Mortgage Insurance Fund capital reserve
479 words·~2 min read·
/bill/113/hr/2767/ih/section-256A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
To ensure accurate determinations of the capital ratio under subsection
(b)of this section and such ratio under section 205(f) of the National Housing Act, as amended by subsection
(d)of this section, the FHA shall establish separate accounts in the Mutual Mortgage Insurance Fund and take such other actions as may be necessary to segregate the following amounts: Capital attributable to new business. Capital attributable to mortgages that become insured before the expiration of the transition period under section 281. The FHA shall ensure that the account for the Mutual Mortgage Insurance Fund that is established pursuant to subsection (a)(1) of this section at all times maintains a capital ratio of not less than 4.0 percent. For purposes of this section, the following definitions shall apply: The term capital means the economic net worth of the account of the Fund that is established pursuant to subsection (a)(1) of this section, as determined by the FHA under the annual audit required under section 538 of the National Housing Act ( 12 U.S.C. 1735f–16 ). The term capital ratio means the ratio of capital to unamortized insurance-in-force. The term economic net worth means the current cash available to the account of the Fund that is established pursuant to subsection (a)(1) of this section, plus the net present value of all future cash inflows and outflows expected to result from outstanding new business. The term Fund means the Mutual Mortgage Insurance Fund established under section 205 of the National Housing Act ( 12 U.S.C. 1711 ). The term new business means mortgages that are obligations of the Mutual Mortgage Insurance Fund that become insured by the FHA after the expiration of the transition period under section 281. The term unamortized insurance-in-force means the remaining obligation on outstanding new business, as estimated by the FHA. Paragraph
(4)of section 205(f) of the National Housing Act ( 12 U.S.C. 1711(f)(4) ) is amended— in subparagraph (A), by striking Mutual Mortgage Insurance Fund and inserting account of the Mutual Mortgage Insurance Fund that is established pursuant to subsection (a)(2) of the ; FHA Reform and Modernization Act of 2013 in subparagraph (C)— by striking Fund the first place such term appears and inserting account of the Mutual Mortgage Insurance Fund that is established pursuant to subsection (a)(2) of the ; and FHA Reform and Modernization Act of 2013 by striking the Fund. and inserting the following: such account that become insured by the Secretary of Housing and Urban Development (or the FHA, pursuant to subtitle D of the ; and FHA Reform and Modernization Act of 2013) before the expiration of the transition period under section 281 of such Act . in subparagraph (D), by inserting before the comma the following: and become insured before the expiration of the transition period under section 281 of the . FHA Reform and Modernization Act of 2013
Connectionstraces to 1
Traces to 1 document
1 reference not yet in our index
- 12 USC 1735f–16
Citation graph
cites case law
Cites 2Cited by 0 across 0 sources