91 1 the right to sell such mortgage or security, and to take such 2 action and advance such sums as may be necessary to pre 3 serve or protect the lien of such mortgage or security. 7 SEC. 703. The Secretary is authorized to insure under 8 any section of this Act any mortgage assigned to him in 9 connection with payment under a contract of insurance 10 which he subsequently sells or any mortgage executed in 11 connection with the sale by him of any property acquired 12 under any section of this Act or under any section or title 13 of the National Housing Act. This authority may be exer14 cised without regard to any limitations or requirements con15 tained in this Act upon the eligibility of the mortgage for insurance, upon the payment of insurance premiums, or upon 17 the terms and conditions of insurance settlement and the 18 benefits of the insurance to be included in such settlement. 16 22 23 EXPENDITURES TO CORRECT OR COMPENSATE FOR STRUC TURAL DEFECTS IN MORTGAGED HOMES AND EX PERIMENTAL PROPERTY SEC. 704. (a) The Secretary is authorized, with respect to any property improved by a one- to four-family dwelling approved for mortgage insurance under title IV prior to the 25 beginning of construction which he finds to have structural 24 92 1 defects, to make expenditures for (1) correcting such defects, 2 (2) paying the claims of the owner of the property arising 3 from such defects, or (3) acquiring title to the property; but 4 such authority of the Secretary shall exist only if the owner 5 has requested assistance from the Secretary not later than 6 four years (or such shorter time as the Secretary may pre7 scribe) after insurance of the mortgage. 8 (b) If the owner of any one- to four-family dwelling 9 which 10 11 12 13 14 (1) is covered by a mortgage insured under section 402 or is located in an older and declining area, and (2) is more than one year old on the date of the issuance of the insurance commitment, 15 makes application to the Secretary not more than one year 16 after the insurance of the mortgage to correct any structural 17 or other defect of the dwelling attributable to a failure of the 18 dwelling to meet applicable State laws, or local ordinances 19 or regulations, relating to the public health or safety, the 20 Secretary shall, with all reasonable promptness, make ex21 penditures for any of the purposes specified in subsection 22 (a), unless the defect is one that did not exist on the date 23 of the issuance of the insurance commitment. The Secretary 24 may require from the seller of any such dwelling an agree 93 1 ment to reimburse him for any payments made pursuant to 2 this subsection with respect to such dwelling. 3 (c) The Secretary is also authorized to expend available 4 funds to correct defects or failures (when he determines it 5 necessary to protect the occupants) with respect to experi6 mental property covered by a mortgage insured under this 7 Act, at any time subsequent to insurance of the mortgage, 8 where he finds that the defects are caused by or related to 9 the advanced technology utilized. 10 11 12 13 14 15 (d) The Secretary shall by regulations prescribe the terms and conditions upon which expenditures and payments may be made under the provisions of this section. TRANSITION BETWEEN THE NATIONAL HOUSING ACT AND THE REVISED NATIONAL HOUSING ACT SEC. 102. The provisions of section 101 of this Act shall 16 be effective in whole or in part (and the regulations and 17 guidelines necessary to administer and carry out such pro18 visions shall be issued) at such date or dates as the Secretary 19 of Housing and Urban Development shall prescribe, but in 20 no event later than July 1, 1973; and the Secretary shall 21 establish procedures for the orderly transfer of mortgage in 22 surance operations from the authority of the National Hous23 ing Act to the authority of the Revised National Housing 24 Act in order to assure continuity of efficient program activity 94 1 and to provide adequate opportunity for necessary admin 2 istrative and legislative revisions. 3 EXPERIMENTAL DUAL INTEREST-RATE SYSTEM 4 SEC. 103. (a) Notwithstanding any maximum interest 5 rate established by the Secretary of Housing and Urban 6 Development pursuant to section 4 of the Revised National 7 Housing Act, the Secretary is authorized, pursuant to com8 mitments issued prior to July 1, 1974, to insure mortgages, 9 under any provisions of such Act he deems appropriate, at 10 whatever interest rate may be agreed upon by the mortgagor 11 and mortgagee if the mortgagee establishes to the satisfaction 12 of the Secretary that it has made no charges, either directly 13 or indirectly, in the nature of discounts or points in connec14 tion with the mortgage transaction. 15 (b) The Secretary shall take appropriate steps to assure 16 that prospective mortgagors have adequate information as to 17 the alternative methods for establishing interest rates pur18 suant to this section and section 4 of the Revised National 19 Housing Act. 222 CONFORMING AND TECHNICAL AMENDMENTS SEC. 104. (a) Any reference in any Federal, State, or 22 local law to the National Housing Act shall be construed to 23 refer also to the Revised National Housing Act and any ref24 erence in such Federal, State, or local law to a particular 25 provision of the National Housing Act shall be construed to 95 1 refer also to the provision of the Revised National Housing 2 Act which corresponds in purpose and function to such pro 3 vision of the National Housing Act. 4 (b) Section 2(a) of the National Housing Act is 5 amended by inserting "or under title III of the Revised 6 National Housing Act" immediately after "under this sec7 tion" in the second sentence of the first paragraph. 8 (c) Section 213 (1) of the National Housing Act is 9 amended by inserting "or under section 501 of the Revised 10 National Housing Act where the mortgagor is a cooperative" 11 immediately after "under this section" in the third sentence 12 thereof. 13 14 15 PART B-AMENDMENTS TO NATIONAL HOUSING ACT EXTENSION OF EXISTING PROGRAMS SEC. 111. (a) (1) Section 2 (a) of the National Hous 16 ing Act is amended by striking out "October 1, 1972" and 17 inserting in lieu thereof "June 30, 1973". 18 (2) Section 235 (m) of such Act is amended by strik19 ing out "October 1, 1972" and inserting in lieu thereof 20 "June 30, 1973". 21 (3) Section 236 (n) of such Act is amended by strik22 ing out "October 1, 1972" and inserting in lieu thereof 23 "June 30, 1973". 24 (4) Section 809 (f) of such Act is amended by strik |