Sec. 205. Authority to protect taxpayers in unusual and exigent market conditions
167 words·~1 min read·
/bill/113/s/1217/rs/section-205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If the Corporation, upon the written agreement of the Chairman of the Board of Governors of the Federal Reserve System and the Secretary of the Treasury, and in consultation with the Secretary of Housing and Urban Development, determines that unusual and exigent circumstances have created or threatened to create an anomalous lack of mortgage credit availability within the housing markets that could materially and severely disrupt the functioning of the housing finance system of the United States, the Corporation may, for a period not to exceed 6 months, provide insurance in accord with section 204 to any covered security regardless of whether such security has satisfied the requirements of section 202(a).
In exercising the authority granted under subsection (a), the Corporation shall consider the severity of the conditions present in the housing markets and the risks presented to the Mortgage Insurance Fund in exercising such authority. The authority granted to the Corporation under subsection
(a)may not be exercised more than once in any given 3-year period.