
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC1735f-11]

 
                       TITLE 12--BANKS AND BANKING
 
                      CHAPTER 13--NATIONAL HOUSING
 
                       SUBCHAPTER V--MISCELLANEOUS
 
Sec. 1735f-11. Direction to Secretary to require mortgagees with 
        above normal rates of early, serious defaults and claims to 
        submit reports and take corrective action
        
    (a) To reduce losses in connection with mortgage insurance programs 
under this chapter, the Secretary shall review, at least once a year, 
the rate of early serious defaults and claims involving mortgagees 
approved under this chapter. On the basis of this review, the Secretary 
shall notify each mortgagee which, as determined by the Secretary, had a 
rate of early serious defaults and claims during the preceding year 
which was higher than the normal rate for the geographic area or areas 
in which that mortgagee does business. In the notification, the 
Secretary shall require each mortgagee to submit a report, within a time 
determined by the Secretary, containing the mortgagee's (1) explanation 
for the above normal rate of early serious defaults and claims; (2) plan 
for corrective action, if applicable, both with regard to (A) mortgages 
in default; and (B) its mortgage-processing system in general; and (3) a 
timeframe within which this corrective action will be begun and 
completed. If the Secretary does not agree with this timeframe or plan, 
a mutually agreeable timeframe and plan will be determined.
    (b) Failure of the mortgagee to submit a report required under 
subsection (a) of this section within the time determined by the 
Secretary or to commence or complete the plan for corrective action 
within the timeframe agreed upon by the Secretary may be cause for 
suspension of the mortgagee from participation in programs under this 
chapter.

(June 27, 1934, ch. 847, title V, Sec. 533, as added Pub. L. 100-242, 
title IV, Sec. 407(b), Feb. 5, 1988, 101 Stat. 1902.)

                  Section Referred to in Other Sections

    This section is referred to in section 1709 of this title.
