Sec. 264. Lender repurchase requirement
129 words·~1 min read·
/bill/113/hr/2767/ih/section-264A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The FHA may not newly insure, under any provision of this title, the National Housing Act, or any FHA program, any mortgage on a 1- to 4-family residential property unless the mortgagee under such mortgage enters into such binding agreements as the FHA considers necessary to ensure that, if the mortgagor is in default with respect to the mortgagor’s obligation to make payments under the mortgage for 60 or more consecutive days during the 24-month period beginning upon origination of the mortgage, the mortgagee will, upon notice by the FHA, repurchase such mortgage in an amount equal to the remaining principal obligation under the mortgage, as determined in accordance with guidelines issued by the FHA.
This section shall take effect upon the date of the enactment of this Act.