Sec. 224. Lender repurchase requirement
263 words·~1 min read·
/bill/115/hr/6746/ih/section-224A 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 6-month period beginning upon origination of the mortgage, the mortgagee will, except as provided pursuant to subsection
(b)and 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. The FHA shall provide, by regulation, for the FHA to waive the applicability of any binding agreements regarding repurchase of a mortgage entered into by a mortgagee pursuant to subsection
(a)in cases in which hardship circumstances for the mortgagor materially contributed to the default of the mortgage. For purposes of this subsection, such hardship circumstances may include divorce, job or other income loss, health problems, death in the family, and such other situations as the FHA may prescribe. This section shall take effect on the date of the enactment of this Act. During the transition period under section 551, any reference in this section to the FHA shall be construed to refer to the Secretary of Housing and Urban Development to the extent the Secretary has not delegated authority under this section to the FHA pursuant to section 552(1).