---
kind: "section"
citation: "12 U.S.C. § 1715z–8"
title: "12"
title_heading: "Banks and Banking"
number: "1715z–8"
heading: "Mortgage assistance payments for middle-income families"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1715z-8"
units:
  - "Chapter 13 — National Housing"
  - "Subchapter II — Mortgage Insurance"
---

# §1715z–8. Mortgage assistance payments for middle-income families

- (a) **Determination by Secretary of necessity; interest subsidy payments; effective date—** Whenever he determines such action to be necessary in furtherance of the purposes set forth in section 501 of the Emergency Home Finance Act of 1970, the [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to make, and to contract to make, periodic assistance payments on behalf of families of middle income. The assistance shall be accomplished through interest subsidy payments to the Federal National [Mortgage](/usc/12/1707.md?p=a) Association or the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) Corporation (hereinafter referred to as “the investor”) with respect to [mortgages](/usc/12/1707.md?p=a) meeting the special requirements specified in this section and made after July 24, 1970.
- (b) **Qualifications of mortgagor for assistance payments—** To qualify for assistance payments a middle-income family shall be a [mortgagor](/usc/12/1707.md?p=b) under a [mortgage](/usc/12/1707.md?p=a) which is (1) insured under [subsection (j)](#j) of this section, (2) guaranteed under [chapter 37](/usc/38/chptIII/ch37.md) of title 38, or (3) a conventional [mortgage](/usc/12/1707.md?p=a) meeting the requirements of [subsection (j)(3)](#j-3) of this section. In addition to the foregoing requirement, the [Secretary](/usc/12/1715z–22a.md?p=4) may require that the [mortgagor](/usc/12/1707.md?p=b) have an income, at the time of acquisition of the property, of not more than the median income for the area in which the property is located, as determined by the [Secretary](/usc/12/1715z–22a.md?p=4), with appropriate adjustments for smaller and larger families.
- (c) **Termination of interest subsidy payments—** The interest subsidy payments authorized by this section shall cease when (1) the [mortgagor](/usc/12/1707.md?p=b) no longer occupies the property which secures the [mortgage](/usc/12/1707.md?p=a), (2) the [mortgages](/usc/12/1707.md?p=a) are no longer held by the investor, or (3) the rate of interest paid by the [mortgagor](/usc/12/1707.md?p=b) reaches the rate of interest specified on the [mortgage](/usc/12/1707.md?p=a).
- (d) **Monthly mortgage payments as determining eligibility for interest subsidy payments; mortgage assistance payments for middle-income cooperative members; interest subsidy payments; applicability of provisions to cooperative mortgagors—**
  - (1) Interest subsidy payments shall be on [mortgages](/usc/12/1707.md?p=a) on which the [mortgagor](/usc/12/1707.md?p=b) makes monthly payments towards principal and interest equal to an amount which would be required if the [mortgage](/usc/12/1707.md?p=a) bore an effective interest rate of 7 per centum per annum including any discounts or charges in the nature of points or otherwise (but not including premiums, if any, for [mortgage](/usc/12/1707.md?p=a) insurance) or such higher rate (not to exceed the rate specified in the [mortgage](/usc/12/1707.md?p=a)), which the [mortgagor](/usc/12/1707.md?p=b) could pay by applying at least 20 per centum of his income towards homeownership expenses. As used in this subsection, the term “monthly homeownership expense” includes the monthly payment for principal, interest, [mortgage](/usc/12/1707.md?p=a) insurance premium, insurance, and taxes due under the [mortgage](/usc/12/1707.md?p=a).
  - (2) In addition to the [mortgages](/usc/12/1707.md?p=a) eligible for assistance under paragraph (1) of this subsection, the [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to make periodic assistance payments on behalf of cooperative members of middle income. Such assistance payments shall be accomplished through interest subsidy payments to the investor with respect to [mortgages](/usc/12/1707.md?p=a) insured (subsequent to July 24, 1970) under [section 1715e of this title](/usc/12/1715e.md) which are executed by cooperatives, the membership in which is limited to middle-income families. For purposes of this paragraph—
    - (A) the term “[mortgagor](/usc/12/1707.md?p=b)”, when used in [subsection (b)](#b) in the case of a [mortgage](/usc/12/1707.md?p=a) covering a cooperative housing proj­ect, means a member of the cooperative;
    - (B) the term “acquisition of the property”, when used in [subsection (b)](#b), means the family’s application for a dwelling unit; and
    - (C) in the case of a cooperative [mortgagor](/usc/12/1707.md?p=b), [subsection (c)](#c) shall not apply and the interest subsidy payments shall cease when the [mortgage](/usc/12/1707.md?p=a) is no longer held by the investor or the cooperative fails to limit membership to families whose incomes at the time of their application for a dwelling unit meets such requirements as are laid down by the [Secretary](/usc/12/1715z–22a.md?p=4) pursuant to [subsection (b)](#b).
- (e) **Amount of interest subsidy payments—** The interest subsidy payments shall be in an amount equal to the difference, as determined by the [Secretary](/usc/12/1715z–22a.md?p=4), between the total amount of interest per calendar quarter received by the investor on [mortgages](/usc/12/1707.md?p=a) assisted under this section and purchased by it and the total amount of interest which the investor would have received if the yield on such [mortgages](/usc/12/1707.md?p=a) was equal to the sum of (1) the average costs (expressed as an annual percentage rate) to it of all borrowed funds outstanding in the immediately preceding calendar quarter, and (2) such per centum per annum as will provide for administrative and other expenses of the investor and a reasonable economic return, as determined by the [Secretary](/usc/12/1715z–22a.md?p=4) to be necessary and appropriate taking into account the purpose of this section to provide additional [mortgage](/usc/12/1707.md?p=a) [credit](/usc/12/5481.md?p=7) at reasonable rates of interest to middle-income families.
- (f) **Adoption of procedures for recertifications of mortgagor’s income—** Procedures shall be adopted by the [Secretary](/usc/12/1715z–22a.md?p=4) for recertifications of the [mortgagor](/usc/12/1707.md?p=b)’s income at intervals of two years (or at shorter intervals where the [Secretary](/usc/12/1715z–22a.md?p=4) deems it desirable) for the purpose of adjusting the amount of the [mortgagor](/usc/12/1707.md?p=b)’s payments pursuant to [subsection (d)](#d).
- (g) **Regulations to assure that sales price or other consideration paid is not increased above appraised value—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall prescribe such regulations as he deems necessary to assure that the sales price of, or other consideration paid in connection with, the purchase by a homeowner of the property with respect to which assistance payments are to be made is not increased above the appraised value on which the maximum [mortgage](/usc/12/1707.md?p=a) which the [Secretary](/usc/12/1715z–22a.md?p=4) will insure is computed.
- (h) **Authorization of appropriations; aggregate amount of assistance payment contracts; termination date—**
  - (1) There are authorized to be appropriated such sums as may be necessary to enable the [Secretary](/usc/12/1715z–22a.md?p=4) to make interest subsidy payments under contracts entered into under this section. The aggregate amount of contracts to make such payments shall not exceed amounts approved in appropriation Acts, and payments pursuant to such contracts shall not exceed $105,000,000 during the first year of such contracts prior to July 1, 1971, which amount shall be increased by an additional $105,000,000 during the first year of an additional number of such contracts on July 1 of each of the years 1971 and 1972.
  - (2) No interest subsidy payments under this section shall be made after June 30, 1973, except pursuant to contracts entered into on or before such date.
- (i) **Determination of family income; exclusion of income of minors—** In determining the income of any family for the purposes of this section, income from all sources of each member of the family in the household shall be included, except that the [Secretary](/usc/12/1715z–22a.md?p=4) shall exclude income earned by any minor [person](/usc/12/5481.md?p=19).
- (j) **Insurance of mortgages executed by mortgagors meeting eligibility requirements for assistance payments; issuance of commitment; eligibility requirements for insurance—**
  - (1) The [Secretary](/usc/12/1715z–22a.md?p=4) is authorized, upon application by the [mortgagee](/usc/12/1707.md?p=b), to insure a [mortgage](/usc/12/1707.md?p=a) executed by a [mortgagor](/usc/12/1707.md?p=b) who meets the eligibility requirements for assistance payments prescribed by the [Secretary](/usc/12/1715z–22a.md?p=4) under [subsection (b)](#b). Commitments for the insurance of such [mortgages](/usc/12/1707.md?p=a) may be issued by the [Secretary](/usc/12/1715z–22a.md?p=4) prior to the date of their execution or disbursement thereon, upon such terms and conditions as the [Secretary](/usc/12/1715z–22a.md?p=4) may prescribe.
  - (2) To be eligible for insurance under this subsection, a [mortgage](/usc/12/1707.md?p=a) shall meet the requirements of section [1715l(d)(2)](/usc/12/1715l.md) or [1715y(c)](/usc/12/1715y.md?p=c) of this title, except as such requirements are modified by this subsection: Provided, however, That in the discretion of the [Secretary](/usc/12/1715z–22a.md?p=4) 25 per centum of the authority conferred by this section and subject to all the terms thereof may be used for [mortgages](/usc/12/1707.md?p=a) on existing housing.
  - (3) A [mortgage](/usc/12/1707.md?p=a) to be insured under this section shall—
    - (i) involve a single-family dwelling which has been approved by the [Secretary](/usc/12/1715z–22a.md?p=4) prior to the beginning of construction, or a one-family unit in a condominium project (together with an undivided interest in the common areas and facilities serving the project) which is released from a multifamily project, the construction of which has been completed within two years prior to the filing of the application for assistance payments with respect to such family unit and the unit shall have had no previous occupant other than the [mortgagor](/usc/12/1707.md?p=b);
    - (ii) involve a single-family dwelling whose appraised value, as determined by the [Secretary](/usc/12/1715z–22a.md?p=4), is not in excess of $20,000 (which amount may be increased by not more than 50 per centum in any geographical area where the [Secretary](/usc/12/1715z–22a.md?p=4) authorizes an increase on the basis of a finding that the cost level so requires); and
    - (iii) be executed by a [mortgagor](/usc/12/1707.md?p=b) who shall have paid in cash or its equivalent on account of the property (A) 3 per centum of the first $15,000 of the appraised value of the property, (B) 10 per centum of such value in excess of $15,000 but not in excess of $25,000, and (C) 20 per centum of such value in excess of $25,000.

## Source credit

(June 27, 1934, ch. 847, title II, § 243, as added Pub. L. 91–351, title V, § 502, July 24, 1970, 84 Stat. 458; amended Pub. L. 98–479, title II, § 204(a)(14), (15), Oct. 17, 1984, 98 Stat. 2232.)

## Notes

### Editorial Notes

### References in Text

Section 501 of the Emergency Home Finance Act of 1970, referred to in subsec. (a), is section 501 of Pub. L. 91–351, which is set out as a note below.

### Amendments

1984—Subsec. (d)(2). Pub. L. 98–479, § 204(a)(14), redesignated subpars. (1), (2), and (3) as subpars. (A), (B), and (C), respectively.

Subsec. (j)(3)(ii). Pub. L. 98–479, § 204(a)(15), substituted “; and” for period at end.

### Statutory Notes and Related Subsidiaries

### Congressional Findings and Declaration of Purpose

Pub. L. 91–351, title V, § 501, July 24, 1970, 84 Stat. 458, provided that: “The Congress finds that— periodic episodes of monetary stringency and high interest rates make it extremely difficult for families of middle income to obtain mortgage credit at rates which they can afford to pay; periods of monetary stringency and high interest rates are directly related to the Government’s monetary and fiscal policies; a disproportionate share of the burden of sustaining these anti-inflationary policies of the Government falls on families of middle income who are buyers or prospective buyers of homes; and the Government has a responsibility to lessen the disproportionate burden which such families bear as a result of such policies.It is the purpose of this title [enacting this section, and amending sections 1715z–3 and 1719 of this title] to provide, during periods of high mortgage interest rates, a source of mortgage credit for such families which is within their financial means.”