§ 2703. — Manner of assistance and repayment.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
TITLE 12--BANKS AND BANKING
CHAPTER 28--EMERGENCY MORTGAGE RELIEF
Sec. 2703. Manner of assistance and repayment
(a) Form of assistance
Assistance under this chapter with respect to a mortgage which meets
the requirements of section 2702 of this title may be provided in the
form of emergency mortgage relief loans and advances of credit insured
pursuant to section 2704 of this title or in the form of emergency
mortgage relief payments made by the Secretary pursuant to section 2705
of this title.
(b) Amount of assistance
Assistance under this chapter on behalf of a homeowner may be made
available in an amount up to the amount of the principal, interest,
taxes, ground rents, hazard insurance, and mortgage insurance premiums
due under the homeowner's mortgage, but such assistance shall not exceed
the lesser of $250 per month or the amount determined to be reasonably
necessary to supplement such amount as the homeowner is capable of
contributing toward such mortgage payment.
(c) Monthly payments; extension of time; report of increase in income
Monthly payments may be provided under this chapter either with the
proceeds of an insured loan or advance of credit or with emergency
mortgage relief payments for up to twelve months, and, in accordance
with criteria prescribed by the Secretary, such monthly payments may be
extended once for up to twelve additional months. A mortgagor receiving
the benefit of mortgage relief assistance pursuant to this chapter shall
be required, in accordance with criteria prescribed by the Secretary, to
report any increase in income which will permit a reduction or
termination of such assistance during this period.
(d) Conditions and terms of repayment; interest rate
Emergency loans or advances of credit made and insured under section
2704 of this title, and emergency mortgage relief payments made under
section 2705 of this title, shall be repayable by the homeowner upon
such terms and conditions as the Secretary shall prescribe, except that
interest on a loan or advance of credit insured under section 2704 of
this title or emergency mortgage relief payments made under section 2705
of this title shall not be charged at a rate which exceeds the maximum
interest rate applicable with respect to mortgages insured pursuant to
section 1709(b) of this title.
(e) Deferral of commencement of repayment; security for repayment
The Secretary may provide for the deferral of the commencement of
the repayment of a loan or advance insured under section 2704 of this
title or emergency mortgage relief payments made under section 2705 of
this title until one year following the date of the last disbursement of
the proceeds of the loan or advance or payments or for such longer
period as the Secretary determines would further the purpose of this
chapter. The Secretary shall by regulation require such security for the
repayment of insured loans or advances of credit or emergency mortgage
relief payments as he deems appropriate and may require that such
repayment be secured by a lien on the mortgaged property.
(Pub. L. 94-50, title I, Sec. 104, July 2, 1975, 89 Stat. 250.)
Section Referred to in Other Sections
This section is referred to in sections 2704, 2705 of this title.