---
kind: "section"
citation: "12 U.S.C. § 1701l–1"
title: "12"
title_heading: "Banks and Banking"
number: "1701l–1"
heading: "Mortgage proceeds fraudulently misappropriated by mortgagor; recovery of deficiency after foreclosure"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1701l-1"
units:
  - "Chapter 13 — National Housing"
---

# §1701l–1. Mortgage proceeds fraudulently misappropriated by mortgagor; recovery of deficiency after foreclosure


The [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development shall take action to secure the payment of any deficiency after foreclosure on a [mortgage](/usc/12/1707.md?p=a) insured or assisted under Federal law where the [Secretary](/usc/12/1715z–22a.md?p=4) has reason to believe that the [mortgage](/usc/12/1707.md?p=a) proceeds have been fraudulently misappropriated by the [mortgagor](/usc/12/1707.md?p=b).


## Source credit

(Pub. L. 93–383, title VIII, § 819, Aug. 22, 1974, 88 Stat. 740.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Housing and Community Development Act of 1974, and not as part of the National Housing Act which comprises this chapter.