US Laws, Codes, Statutes & Cases

      (a)      (1)      New mortgage loans that the Administration purchases shall be loans to families of limited income or to sponsors of community development projects.

            (2)      A commitment that the Administration makes to purchase new mortgage loans shall specify:

                  (i)      the interest rate on loans eligible for purchase, which may not exceed the prevailing interest rate on comparable mortgage loans available in the State, independent of public assistance or purchase; and

                  (ii)      the numbers or volumes of loans under the commitment to be made in specific geographic areas.

            (3)      For any residential mortgage loans to be used to acquire homes for families of limited income, the commitment shall be limited to loans of a specified amount per dwelling unit, based on the current average sale price of new homes in the area, as determined by the Administration.

      (b)      A commitment that the Administration makes to purchase existing mortgages shall require that the proceeds of the purchase be:

            (1)      reinvested, within specified time limits, in new mortgage loans to:

                  (i)      families of limited income; or

                  (ii)      sponsors of community development projects; or

            (2)      invested in short-term obligations pending the purchase or making of the mortgages.