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H.R. 1738 (98th): Homeowners Loan Corporation Charter Act

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The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Mar 1, 1983.

Homeowners Loan Corporation Charter Act - Establishes the Homeowners Loan Corporation as an independent Federal agency. Authorizes the Corporation to: (1) acquire home mortgages in exchange for obligations; and (2) make loans to homeowners in order to prevent mortgage foreclosure and to redeem or recover any home lost by foreclosure, forced sale, or voluntary surrender prior to enactment of this Act. Limits the interest and amortization period for a mortgage after it is acquired by the Corporation. Allows the Corporation to extend the time for an installment payment or to revise the terms of such a mortgage upon consideration of the circumstances of a homeowner. Limits such loans to homeowners to $350 a month for 12 months, with a 12-month extension authorized. Authorizes the Corporation, in connection with any such loan or acquired mortgage, to make loans to homeowners for: (1) taxes and assessments; (2) incidental expenses; and (3) maintenance and repair, rehabilitation, or modernization. Allows the Corporation to take a new mortgage for the entire indebtedness of a homeowner under this Act. Includes as conditions of eligibility for assistance under this Act the requirements that: (1) the mortgage is not federally insured; (2) the homeowner has incurred a substantial reduction in income due to circumstances beyond his or her control and is, therefore, unable to resume full mortgage payments; (3) the assistance is necessary to avoid foreclosure or to recover a lost home; and (4) there is a reasonable prospect that the homeowner will be able to repay the loan or pay the acquired mortgage. Sets forth provisions governing the authority of the Corporation to issue obligations to finance the assistance program under this Act. Limits the aggregate principal amount of outstanding obligations to 12 times the Corporation's capital stock of $5,000,000,000. Authorizes the Secretary of the Treasury to purchase such obligations. Declares that the Corporation shall be exempt from all taxes except State and local real property taxes. Directs the Corporation to submit annual reports on its activities to the President and Congress. Authorizes appropriations. Terminates the Secretary's authority to provide assistance under this Act after five years.