12 USC 1715z-17 - Shared appreciation mortgages for single family housing

U.S Code last checked for updates: Nov 22, 2024

§ 1715z–17.

Shared appreciation mortgages for single family housing

(a)

One- to four-family dwellings; requirements

Notwithstanding any provision of this subchapter that is inconsistent with this section, the Secretary may insure, under any provision of this subchapter providing for insurance of mortgages on properties upon which there is located a dwelling designed principally for occupancy by one to four families, a mortgage secured by a first lien on such a property or on the stock allocated to a dwelling unit in a residential cooperative housing corporation, which—

(1)

provides for the mortgagee to share in a predetermined percentage of the property’s or stock’s net appreciated value;

(2)

bears interest at a rate which meets criteria prescribed by the Secretary;

(3)

provides for amortization over a period of not to exceed 30 years, but the actual term of the mortgage (excluding any refinancing) may be not less than 10 nor more than 30 years, and contains such provisions relating to refinancing of the principal balance of the mortgage and any contingent deferred interest as the Secretary may provide; and

(4)

meets such other conditions as the Secretary may require by regulation.

(b)

Payment of mortgagee’s share of net appreciated value; “net appreciated value” defined

(c)

Entitlement of mortgagee upon default

(d)

Inapplicability of State constitution, statute, etc., limiting or prohibiting increases in outstanding loan balance

(e)

Encouraged use of insurance by low and moderate income families

(f)

Consumer protections and disclosure requirements

(g)

Number of mortgages and loans

(June 27, 1934, ch. 847, title II, § 252, as added Pub. L. 98–181, title I [title IV, § 444], Nov. 30, 1983, 97 Stat. 1225; amended Pub. L. 100–242, title IV, § 415(b)(2), Feb. 5, 1988, 101 Stat. 1907.)

cite as: 12 USC 1715z-17