84

1 determination is proposed shall be notified in writing by the

2 Secretary and shall be entitled (upon making a written re3 quest to the Secretary) to

4

5

67

(A) a written notice specifying the charges in reasonable detail, and

(B) an opportunity to be heard and to be repre

sented by counsel.

8 (3) Any person aggrieved by a determination of the 9 Secretary pursuant to this section may, within sixty days. 10 after notice of such determination, file a petition of review 11 in the United States Court of Appeals for the circuit in 12 which the property involved is located. Judicial review 13 shall be confined to the record made in the hearing before 14 the Secretary, and the Secretary's findings of fact shall be 15 conclusive if supported by substantial evidence.

16

(4) For purposes of compliance with this section, the 17 Secretary's notice of a determination or proposed determination under this section shall be considered to have been

18

19 received by the interested person or firm if the notice is

20 properly mailed to the last known address of such person

22

or firm.

(d) The Secretary shall take such further actions and

23 impose such further requirements for the protection of home24 owners, cooperative members, and tenants in properties 25 covered by mortgages insured under this Act and under

85

1 the National Housing Act as he deems necessary and ap

2

3

4

propriate.

INSURANCE CONTRACT INCONTESTABILITY

SEC. 8. Any contract of insurance executed by the Secre5 tary under the provisions of title IV or V shall be con6 clusive evidence of the eligibility of the loan or mortgage 7 for insurance. The validity of any contract of insurance so 8 executed shall be incontestable in the hands of an approved 9 financial institution or approved mortgagee from the date of 10 the execution of such contract, except for fraud or misrepre11 sentation on the part of such financial institution or 12 mortgagee.

13

14

ADMINISTRATION

SEC. 9. In carrying out the provisions of this Act, the 15 Secretary is authorized (1) to make such expenditures as

16

may be necessary, (2) to sue and be sued, (3) to make such 17 rules and regulations as may be necessary, and (4) to pro18 vide or obtain technical assistance in the planning for and 19 construction of projects to be covered by mortgages insured 20 under this Act.

24

TITLE II-INSURANCE FUNDS, PREMIUMS,

AND CHARGES

CONSOLIDATION OF INSURANCE FUNDS

SEC. 201. (a) The General Insurance Fund (herein

25 after referred to as the "Fund"), created pursuant to sec26 tion 519 of the National Housing Act, shall be used by the

86

1 Secretary as a revolving fund for carrying out all his obliga2 tions incurred pursuant to the National Housing Act and 3 pursuant to this Act. There shall be transferred to the Gen4 eral Insurance Fund all the assets, liabilities, and obligations 5 of

6

7

8

9

10

11

12

13

15

(1) the Special Risk Insurance Fund created pursuant to section 238 (b) of the National Housing Act; (2) the Cooperative Management Housing Insurance Fund created pursuant to section 213 (k) of the National Housing Act; and

(3) the Mutual Mortgage Insurance Fund created pursuant to section 202 of the National Housing Act.

(b) All premiums, fees, charges, and other income 14 received by the Secretary in connection with the insurance of mortgages or loans shall be credited to the Fund. 16 All payments made pursuant to claims of mortgagees, cash 17 adjustments, the principal of and interest paid on deben18 tures, expenses incurred in connection with the acquisition and disposal of property, nonadministrative and ad20 ministrative expenses, and all other authorized expenditures 21 incurred pursuant to this Act and the National Housing 22 Act shall be paid out of the Fund.

1920

23 (c) The Secretary is authorized to borrow from the 24 Treasury from time to time such amounts as the Secretary 25 shall determine are necessary to pay insurance claims in

87

1 cash, in lieu of issuing debentures. Notes or other obligations 2 issued by the Secretary for amounts borrowed under this 3 subsection shall bear interest at a rate determined by the 4 Secretary of the Treasury, taking into consideration the cur5 rent average market yield on outstanding marketable obliga6 tions of the United States with remaining periods to maturity 7 comparable to the average maturities of such notes or other 8 obligations.

9 (d) Moneys in the Fund not needed for current opera10 tions of the Fund shall be deposited with the Treasurer of 11 the United States to the credit of the Fund or invested in 12 bonds or other obligations of, or in bonds or other obliga13 tions guaranteed by, the United States or any agency of 14 the United States. The Secretary, with the approval of the 15 Secretary of the Treasury, may purchase in the open market 16 debentures which are the obligation of the Fund. Such pur17 chases shall be made at a price which will provide an in18 vestment yield of not less than the yield obtained from other 19 investments authorized by this subsection. Debentures so 20 purchased shall be canceled and not reissued.

21 (e) There are authorized to be appropriated such sums 22 as may be needed from time to time to compensate the Fund 23 for expenditures or anticipated expenditures under section 24 704. There are also authorized to be appropriated such sums

88

1

as may

be needed from time to time to cover losses or antic2 ipated losses to the Fund on account of mortgages insured

3 under the National Housing Act which were obligations of 4 the Special Risk Insurance Fund.

5 INSURANCE PREMIUMS, PROCESSING FEES, AND SERVICE

7

SEC. 202. (a) The Secretary is authorized to fix an

8 insurance premium for the insurance of mortgages and loans 9 under this Act, payable in such manner as the Secretary 10 may prescribe.

11

(b) The Secretary is authorized to charge and collect 12 from the mortgagee or lender such amounts as he may deem. 13 reasonable for the processing of a mortgage or loan insurance 14 application and for the appraisal and inspection of the prop15 erty or project to be covered by the mortgage to be insured or for other services performed by the Secretary.

16

17

(c) The Secretary is authorized to include in any mort18 gage or loan insured under this Act or in any loan made pay19 able to the Secretary a provision requiring the mortgagor or 20 borrower to pay a service charge to the Secretary in the 21 event the mortgage or loan is held by the Secretary. The 22 service charge shall not exceed the amount prescribed by the 23 Secretary for insurance premiums applicable to such mort24 gage or loan.