EXCERPT FROM EMERGENCY HOME PURCHASE ASSISTANCE ACT OF 1974 [Public Law 93-449, 88 Stat. 1364] GNMA-INTERIM AUTHORITY TO PURCHASE CERTAIN MORTGAGES AN ACT To increase on an emergency basis the availability of reasonably priced mortgage credit for housing Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE SECTION 1. This Act may be cited as the "Emergency Home Purchase Assistance Act of 1974". FINDINGS SEC. 2. The Congress finds and declares that upon (1) in many parts of the Nation, residential mortgage credit is or is likely soon to become prohibitively expensive or unavailable at any price; (2) the unavailability of mortgage credit severely restricts housing production, causes hardship for those who wish to purchase or sell new and existing housing, and delays the achievement of the national goal of a decent home for every American family; and (3) there is an urgent need to provide an alternate source of residential mortgage credit on an emergency basis. SEC. 3. (b) The amendment made by subsection (a) becomes effective the date of enactment of this Act and shall remain in effect until October 1, 19771 except that it shall remain in effect after such date 2 to the extent necessary (1) to honor commitments to purchase mortgages issued prior to such date 2 and (2) to provide for the liquidation of assets and discharge of liabilities acquired or incurred prior to such date.2 * Approved October 18, 1974. EXCERPT FROM THE HOUSING ACT OF 1959 [Public Law 86-372, 73 Stat. 654] * SEC. 306. *** (b) In connection with the sale of any mortgages to the Government 1 Sec. 207 (1) of the Emergency Housing Act of 1975, Public Law 94-50, approved July 2, 1975, 89 Stat. 249, deleted the words "for a period of one year following such date of enactment" and inserted in lieu thereof "until July 1, 1976". Sec. 13(d) of the Housing Authorization Act of 1976, Public Law 94-375, approved August 3, 1976, 90 Stat. 1067, amended section 3(b) of the Emergency Home Purchase Assistance Act by striking "July 1, 1976" and inserting in lieu thereof "October 1, 1977". 2 Sec. 207 (2) of the Emergency Housing Act of 1975, Public Law 94-50, approved July 2, 1975. 89 Stat. 249, deleted the words "the expiration of such period" each place it appears and inserted in lieu thereof "such date". 1 National Mortgage Association 1 pursuant to section 306 (e) of the Federal National Mortgage Association Charter Act, the Secretary of Housing and Urban Development is authorized and any other official, unit, or agency selling such mortgages thereunder is directed, to transfer to the Association from time to time, from authorizations, limitations, and funds available for administrative expenses of such official, unit, or agency in connection with the same mortgages, such amounts thereof as said Secretary determines to be required for administrative expenses of the Association in connection with the purchase, servicing, and sale of such mortgages: Provided, That no such transfer shall be made after a budget estimate of the Association with respect to the same mortgages has been submitted to and finally acted upon by the Congress. * Approved September 23, 1959. EXCERPTS FROM HOUSING AND URBAN DEVELOPMENT ACT OF 1968 [Public Law 90-448, 82 Stat. 476, 545] TITLE VIII-SECONDARY MORTGAGE MARKET PURPOSES SEC. 801. The purposes of this title include the partition of the Federal National Mortgage Association as heretofore existing into two separate and distinct corporations, each of which shall have continuity and corporate succession as a separated portion of the previ ously existing corporation. One of such corporations, to be known as Federal National Mortgage Association, will be a Government-sponsored private corporation, will retain the assets and liabilities of the previously existing corporation accounted for under section 304 of the Federal National Mortgage Association Charter Act, and will continue to operate the secondary market operations authorized by such section 304. The other, to be known as Government National Mortgage Association, will remain in the Government, will retain the assets and liabilities of the previously existing corporation accounted for under sections 305 and 306 of such Act, and will continue to operate the special assistance functions and management and liquidating functions authorized by such sections 305 and 306. * EFFECTIVE DATE SEC. 808. The amendments made by this title shall be effective from and after a date,2 no more than one hundred and twenty days following the date of enactment of this Act, as established by the Secretary of Housing and Urban Development. Notice of the establishment of such effective date shall be published in the Federal Register at least thirty days prior thereto. 1 Sec. 807(a), Housing and Urban Development Act of 1968, Public Law 90-448, approved August 1, 1968, 82 Stat. 476, 544, substituted "Government" for "Federal". 2 This effective date was established as Sept. 1, 1968. SAVINGS PROVISIONS SEC. 809. (a) No cause of action by or against the Federal National Mortgage Association existing prior to the effective date established pursuant to section 808 shall abate by reason of the enactment of this title. Any such cause of action may thereafter be asserted by or against the appropriate corporate body named in section 302 (a) (2) of the National Housing Act. (b) No suit, action, or other proceeding commenced by or against the Federal National Mortgage Association, or any officer thereof in his official capacity, prior to the effective date established pursuant to section 808 shall abate by reason of the enactment of this title. A court may at any time thereafter during the pendency of any such litigation, on its own motion or that of any party, order that the litigation may be maintained by or against the appropriate corporate body named in section 302 (a) (2) of the National Housing Act or the appropriate corresponding officer thereof. TRANSITIONAL PROVISIONS SEC. 810. (a) On the effective date established pursuant to section 808 of this Act, each share of outstanding nonvoting common stock, with a par value of $100 per share, of the Federal National Mortgage Association shall be changed into and shall become one share of voting common stock, without par value, of such corporation. For the purposes of the Internal Revenue Code of 1954, no gain or loss is recognized by the holders of such stock on such change, and the basis and holding period of such stock in the hands of the stockholders immediately after such change are the same as the basis and holding period of such stock in their hands immediately prior to such change. (b) Repealed.2 (c) Repealed.3 (d) Those persons who are the officers and employees of the Federal National Mortgage Association immediately prior to the effective date established pursuant to section 808 shall become the officers and employees of the Government National Mortgage Association on such date. The Federal National Mortgage Association and the Government National Mortgage Association shall provide by contract for the conditions and methods under which and by which the Federal National Mortgage Association during the transitional period may employ those individuals who are employees of the Government National Mortgage Association on such effective date; and may provide by contract for the operation by either of such corporations of any of the functions of the other. The Secretary of Housing and Urban Development shall make every reasonable effort to place in other comparable Federal positions any individuals who are career or career-conditional employees of the Government National Mortgage Association on such 1 This sentence added by sec. 901(e), Housing and Urban Development Act of 1970, Public Law 91-609. approved December 31, 1970, 84 Stat. 1770, 1807. 2 Sec. 806 (1) of Housing and Community Development Act of 1974, Public Law 93-383, approved August 22, 1974, 88 Stat. 633, repealed this subsection (b). 3 Sec. 806 (1) of Housing and Community Development Act of 1974, Public Law 93-383, 88 Stat. 633, approved August 22, 1974, repealed this subsection (c). effective date and who are subsequently during the transitional period neither employed by the Federal National Mortgage Association nor retained by the Government National Mortgage Association. Approved August 1, 1968. SPECIAL ASSISTANCE (GNMA) FOR LOW-COST HOMES EXCERPT FROM THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 [Public Law 89-754, 80 Stat. 1255, 1285] FEDERAL NATIONAL MORTGAGE ASSOCIATION SPECIAL ASSISTANCE FOR FINANCING LOW-COST HOMES SEC. 1006. The Congress hereby finds that the sharp decline in new home construction over the past year threatens to undercut our present high level of prosperity and employment as such declines have in the past; that the substantial reduction which has taken place has had its greatest impact on families of modest income who are seeking to achieve the goal of homeownership; that this decline in homebuilding is due primarily to the shortage of mortgage financing on terms which moderate income families can afford; and that our national policy objectives in the field of housing and community development are thereby being thwarted. The Congress therefore expresses its intent that the special assistance funds made available to the Federal National Mortgage Association for the financing of new low-cost homes by the Act of September 10, 1966 (Public Law 89-556),1 should be released immediately to halt the continuing decline in the construction of new homes for families of moderate income. Approved November 3, 1966. EXCERPTS FROM EMERGENCY HOME FINANCE ACT OF 1970 [Public Law 91-351, 84 Stat. 450, 464, 12 U.S.C. 1430 Note] AN ACT To increase the availability of mortgage credit for the financing of urgently needed housing, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Emergency Home Finance Act of 1970". 1 The reference to Public Law 89-556 is in error and should be to Public Law 89-566. Public Law 89-566 amended sec. 305 (g) of the National Housing Act to provide an additional $1,000,000,000 for purchase of FIIA and VA mortgages under FNMA's special assistance program. The special assistance functions of FNMA are now administered by GNMA, TITLE I-REDUCTION OF INTEREST CHARGES FOR MEMBERS OF THE FEDERAL HOME LOAN BANK SYSTEM SEC. 101. (a) There is authorized to be appropriated not to exceed $250,000,000, without fiscal year limitation, to be used by the Federal Home Loan Bank Board for disbursement to Federal home loan banks for the purpose of adjusting the effective interest charged by such banks on short-term and long-term borrowing to promote an orderly flow of funds into residential construction. The disbursement of sums appropriated hereunder shall be made under such terms and conditions as may be prescribed by the Board to assure that such sums are used to assist in the provision of housing for low- and middle-income families, and that such families share fully in the benefits resulting from the disbursement of such sums. No member of a Federal home loan bank shall use funds the interest charges on which have been adjusted pursuant to the provisions of this section to make any loan, if (1) the effective rate of interest on such loan exceeds the effective rate of interest on such funds payable by such member by a percentile amount which is in excess of such amount as the Board determines to be appropriate in furtherance of the purposes of this section; or (2) the principal obligation of any such loan which is secured by a mortgage on a residential structure exceeds the dollar limitations on the maximum mortgage amount, in effect on the date the mortgage was originated, which would be applicable if the mortgage was insured by the Secretary of Housing and Urban Development under section 203 (b) or 207 of the National Housing Act. (b) Not more than 20 per centum of the sums appropriated pursuant to subsection (a) shall be disbursed in any one Federal home loan bank district. TITLE III-FEDERAL HOME LOAN MORTGAGE CORPORATION [12 U.S.C. 1451] SHORT TITLE SEC. 301. This title may be cited as the "Federal Home Loan Mortgage Corporation Act". DEFINITIONS SEC. 302. As used in this title (a) The term "Board of Directors" means the Board of Directors of the Corporation. |