(ii) 850 square feet in size, if designed for a family of not less than 5 and not more than 7 persons; and

(iii) 1020 square feet in size, if designed for a family of not less than 8 persons, or

(B) the size provided under the applicable locally adopted standards for size of dwelling units;

except that the Secretary, upon the request of a tribe or Indian housing authority, may waive the size requirements under this paragraph; and

(7) conform with the energy performance requirements for new construction established by the Secretary under section 526(a) of the National Housing Act.

(k) DEFINITIONS.-For purposes of this section:

(1) The term "family" means 1 or more persons maintaining a household, as the Secretary shall by regulation provide. (2) The term "Guarantee Fund" means the Indian Housing Loan Guarantee Fund established under subsection (i).

(3) The term "Indian" means person recognized as being Indian or Alaska Native by an Indian tribe, the Federal Government, or any State.

(4) The term "Indian area" means the area within which an Indian housing authority is authorized to provide housing. (5) The term "Indian housing authority" means any entity that

(A) is authorized to engage in or assist in the development or operation of low-income housing for Indians; and (B) is established

(i) by exercise of the power of self-government of an Indian tribe independent of State law; or

(ii) by operation of State law providing specifically for housing authorities for Indians, including regional housing authorities in the State of Alaska.

(6) The term "Secretary" means the Secretary of Housing and Urban Development.

(7) The term "standard housing" means a dwelling unit or housing that complies with the requirements established under subsection (j).

(8) The term "tribe" means any tribe, band, pueblo, group, community, or nation of Indians or Alaska Natives.

(9) The term "trust land" means land title to which is held by the United States for the benefit of an Indian or Indian tribe or title to which is held by an Indian tribe subject to a restriction against alienation imposed by the United States. [12 U.S.C. 1515z-13a]

NONJUDICIAL FORECLOSURE OF MORTGAGES FOR SINGLE FAMILY HOUSING

EXCERPT FROM DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES AP. PROPRIATIONS ACT, 1995

[Public Law 103–327; 108 Stat. 2316; 12 U.S.C. 3751 et seq.]

This title may be cited as the "Single Family Mortgage Foreclosure Act of 1994". [12 U.S.C. 3751 note]

SEC. 802. FINDINGS AND PURPOSE.

(a) FINDINGS.-The Congress finds that

(1) the disparate State laws under which mortgages are foreclosed on behalf of the Secretary covering 1- to 4-family residential properties

(A) burden certain programs administered by the Secretary;

(B) increase the costs of collecting obligations; and (C) generally are a detriment to the community in which the properties are located;

(2) the long periods required to complete the foreclosure of such mortgages under certain State laws

(A) lead to deterioration in the condition of the properties involved;

(B) necessitate substantial Federal holding expenditures;

(C) increase the risk of vandalism, fire loss, depreciation, damage, and waste with respect to the properties; and

(D) adversely affect the neighborhoods in which the properties are located;

(3) these conditions seriously impair the ability of the Secretary to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underlying Federal program authority;

(4) the availability of uniform and more expeditious procedures, with no right of redemption in the mortgagor or others,

The text of this title consists of title VIII of the bill S. 2281, 103d Congress, as reported (S. Rep. 103-307). The title was enacted by the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995, Pub. L. 103-327, 108 Stat. 2316, approved September 28, 1994, by incorporating such title by reference in such Act.

for the foreclosure of these mortgages by the Secretary will tend to ameliorate these conditions; and

(5) providing the Secretary with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts if they contribute to overcrowded calendars.

(b) PURPOSE.-The purpose of this title is to create a uniform Federal foreclosure remedy for single family mortgages that

(1) are held by the Secretary pursuant to title I or title II of the National Housing Act; or

(2) secure loans obligated by the Secretary under section 312 of the Housing Act of 1964. [12 U.S.C. 3751]

SEC. 803. DEFINITIONS.

For purposes of this title, the following definitions shall apply: (1) BONA FIDE PURCHASER.-The term "bona fide purchaser” means a purchaser for value in good faith and without notice of any adverse claim, and who acquires the security property free of any adverse claim.

(2) COUNTY.-The term "county" has the same meaning as in section 2 of title 1, United States Code.

(3) MORTGAGE.-The term "mortgage" means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any property (real, personal or mixed), or any interest in property (including leaseholds, life estates, reversionary interests, and any other estates under applicable State law), is conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien for the purpose of securing the payment of money or the performance of an obligation.

(4) MORTGAGE AGREEMENT.-The term "mortgage agreement" means the note or debt instrument and the mortgage instrument, deed of trust instrument, trust deed, or instrument or instruments creating the mortgage, including any instrument incorporated by reference therein and any instrument or agreement amending or modifying any of the foregoing.

(5) MORTGAGOR.-The term "mortgagor" means the obligor, grantor, or trustee named in the mortgage agreement and, unless the context otherwise indicates, includes the current owner of record of the security property whether or not such owner is personally liable on the mortgage debt.

(6) OWNER.-The term "owner" means any person who has an ownership interest in property and includes heirs, devises, executors, administrators, and other personal representatives, and trustees of testamentary trusts if the owner of record is deceased.

(7) PERSON.-The term "person" includes any individual, group of individuals, association, partnership, corporation, or organization.

(8) RECORD; RECORDED.-The terms "record" and "recorded" include "register" and "registered" in the instance of registered land.

(9) SECURITY PROPERTY.-The term "security property" means the property (real, personal or mixed) or an interest in

property (including leaseholds, life estates, reversionary interests, and any other estates under applicable State law), together with fixtures and other interests subject to the lien of the mortgage under applicable State law.

(10) SINGLE FAMILY MORTGAGE.-The term "single family mortgage" means a mortgage that covers property on which there is located a 1- to 4-family residence, and that

(A) is held by the Secretary pursuant to title I or title II of the National Housing Act; or

(B) secures a loan obligated by the Secretary under section 312 of the Housing Act of 1964, as it existed before the repeal of that section by section 289 of the CranstonGonzalez National Affordable Housing Act (except that a mortgage securing such a loan that covers property containing nonresidential space and a 1- to 4-family dwelling shall not be subject to this title).

(11) STATE.-The term "State" means

(A) the several States;

(B) the District of Columbia;

(C) the Commonwealth of Puerto Rico;

(D) the United States Virgin Islands;

(E) Guam;

(F) American Samoa;

(G) the Northern Mariana Islands;

(H) the Trust Territory of the Pacific Islands; and

(I) Indian tribes, as defined by the Secretary. [12 U.S.C. 3752]

SEC. 804. APPLICABILITY.

Single family mortgages encumbering real estate located in any State may be foreclosed by the Secretary in accordance with this title, or pursuant to other foreclosure procedures available, at the option of the Secretary. [12 U.S.C. 3753]

SEC. 805. DESIGNATION OF FORECLOSURE COMMISSIONER.

(a) IN GENERAL.-The Secretary may designate a person or persons to serve as a foreclosure commissioner or commissioners for the purpose of foreclosing upon a single family mortgage.

(b) POWER OF SALE.-A foreclosure commissioner designated under this section shall have a nonjudicial power of sale.

(c) QUALIFICATIONS.-The foreclosure commissioner, if a natural person, shall be a resident of the State in which the security property is located and, if not a natural person, the foreclosure commissioner must be duly authorized to transact business under laws of the State in which the security property is located. No person shall be designated as a foreclosure commissioner unless that person is responsible, financially sound, and competent to conduct a foreclosure.

(d) DESIGNATION PROCEDURE.—

(1) WRITTEN DESIGNATION.-The Secretary may designate a foreclosure commissioner by executing a written designation stating the name and business or residential address of the commissioner, except that if a person is designated in his or her capacity as an official or employee of a government or cor

porate entity, such person may be designated by his or her unique title or position instead of by name.

(2) SUBSTITUTE COMMISSIONERS.-The Secretary may, with or without cause, designate a substitute foreclosure commissioner to replace a previously designated foreclosure commissioner.

(3) NUMBER.-More than 1 foreclosure commissioner may be designated at any time. [12 U.S.C. 3754]

SEC. 806. PREREQUISITES TO FORECLOSURE.

(a) IN GENERAL.

(1) UPON BREACH OF COVENANT OR CONDITION.-The Secretary is authorized to foreclose a mortgage under this title upon the breach of a covenant or condition in the mortgage agreement.

(2) NO OTHER PENDING PROCEEDINGS.

(A) PRIOR TO COMMENCEMENT.-No foreclosure may be commenced under this title unless any previously pending judicial or nonjudicial proceeding that has been separately instituted by the Secretary to foreclose the mortgage (other than under this title), has been withdrawn, dismissed, or otherwise terminated.

(B) AFTER COMMENCEMENT.-No separately instituted foreclosure proceeding on a mortgage which is the subject of a foreclosure proceeding under this title shall be instituted by the Secretary during the pendency of foreclosure pursuant to this title.

(b) OTHER RIGHTS UNAFFECTED.-Nothing in this title shall preclude the Secretary from

(1) enforcing any right, other than foreclosure, under applicable Federal or State law, including any right to obtain a monetary judgment; or

(2) foreclosing under this title if the Secretary has obtained or is seeking any other remedy available pursuant to Federal or State law, or under the mortgage agreement, including the appointment of a receiver, mortgagee-in-possession status, or relief under an assignment of rents. [12 U.S.C. 3755]

SEC. 807. COMMENCEMENT OF FORECLOSURE.

(a) REQUEST TO FORECLOSURE COMMISSIONER.-If the Secretary, as holder of a single family mortgage, determines that the prerequisites to foreclosure set forth in section 806 are satisfied, the Secretary may request the foreclosure commissioner to commence foreclosure of a single family mortgage. Upon such request, the foreclosure commissioner shall commence foreclosure of the mortgage, by commencing service of a notice of default and foreclosure sale in accordance with sections 808 and 809.

(b) DESIGNATION OF SUBSTITUTE FORECLOSURE COMMISSIONER.-After commencement of a foreclosure under this title, the Secretary may designate a substitute foreclosure commissioner at any time before the time of the foreclosure sale, and the foreclosure shall continue without prejudice, unless the substitute commissioner, in that commissioner's sole discretion, finds that continuation of the foreclosure sale will unfairly affect the interests of the