Sec. 609. Home equity conversion mortgage program

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Section 255 of the National Housing Act ( 12 U.S.C. 1715–20 ) is amended by adding at the end the following new subsection: There is hereby created a Home Equity Conversion Mortgage Insurance Fund (in this section referred to as the Fund ), which shall be used by the Secretary as a revolving fund for carrying out the mortgage insurance obligations of this section and for mortgages and commitments transferred pursuant to paragraph (2). The Secretary shall transfer to the Fund all commitments for insurance issued under this section before the date of the enactment of this subsection and the insurance of any mortgage insured under this section before such date of enactment.

The Secretary shall transfer to the Fund from the Mutual Mortgage Insurance Fund an amount equal to the total of the premium payments previously made with respect to the insurance of mortgages transferred to the Fund pursuant to paragraph

(2)minus the total of any administrative expenses previously incurred in connection with such mortgages, plus such other amounts as the Secretary determines to be necessary and appropriate. Premium charges, adjusted premium charges, inspection and other fees, service charges, and any other income received by the Secretary under this section, together with all earnings on the assets of the Fund, shall be credited to the Fund. All payments made pursuant to claims of mortgagees with respect to mortgages insured under this section, cash adjustments, the principal of and interest paid on debentures which are the obligation of the Fund, expenses incurred in connection with or as a consequence of the acquisition and disposal of property acquired under such this section, and all administrative expenses in connection with the mortgage insurance operations under this section shall be paid out of the Fund. Moneys in the Fund not needed for current operations of the Fund shall be deposited with the Treasurer of the United States to the credit of the Fund or invested in bonds or other obligations of, or in bonds or other obligations guaranteed by, the United States or any agency of the United States, except that such moneys shall to the maximum extent feasible be invested in such bonds or other obligations the proceeds of which will be used to directly support the residential mortgage market. The Secretary, with the approval of the Secretary of the Treasury, may purchase in the open market debentures which are the obligation of the Fund. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtained from other investments authorized by this subsection. Debentures so purchased shall be canceled and not reissued. . Subparagraph

(A)of section 255(i)(2) of the National Housing Act ( 12 U.S.C. 1715z–20(i)(2)(A) ) is amended by striking Mutual Mortgage Insurance Fund and inserting Home Equity Conversion Mortgage Insurance Fund established under subsection

(s).

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12 USC 1715–20
12 USC 1715z–20(i)(2)(A)

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Sec. 609

Home equity conversion mortgage program

Cite12 USC 1715–20

Cite12 USC 1715z–20(i)(2)(A)

Cites 2Cited by 0 across 0 sources