---
kind: "section"
citation: "12 U.S.C. § 1750g"
title: "12"
title_heading: "Banks and Banking"
number: "1750g"
heading: "Insurance of additional mortgages"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1750g"
units:
  - "Chapter 13 — National Housing"
  - "Subchapter X — National Defense Housing Insurance"
---

# §1750g. Insurance of additional mortgages

- (a) **Authorization—** In addition to [mortgages](/usc/12/1707.md?p=a) insured under [section 1750b of this title](/usc/12/1750b.md), the [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to insure [mortgages](/usc/12/1707.md?p=a) as defined in [section 1750 of this title](/usc/12/1750.md) (including advances on such [mortgages](/usc/12/1707.md?p=a) during construction) which are eligible for insurance as hereinafter provided.
- (b) **Eligibility requirements; release of part of property—** To be eligible for insurance under this section a [mortgage](/usc/12/1707.md?p=a) shall meet the following conditions:
  - (1) The mortgaged property shall be held by a [mortgagor](/usc/12/1707.md?p=b) approved by the [Secretary](/usc/12/1715z–22a.md?p=4). The [Secretary](/usc/12/1715z–22a.md?p=4) may, in his discretion, require such [mortgagor](/usc/12/1707.md?p=b) to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation. The [Secretary](/usc/12/1715z–22a.md?p=4) may make such contracts with, and acquire for not to exceed $100 stock or interest in any such [mortgagor](/usc/12/1707.md?p=b), as the [Secretary](/usc/12/1715z–22a.md?p=4) may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the General Insurance Fund, and shall be redeemed by the [mortgagor](/usc/12/1707.md?p=b) at par upon the termination of all obligations of the [Secretary](/usc/12/1715z–22a.md?p=4) under the insurance.
  - (2) The [mortgage](/usc/12/1707.md?p=a) shall involve a principal obligation in an amount—
    - (A) not to exceed $5,000,000; and
    - (B) not to exceed 90 per centum of the amount which the [Secretary](/usc/12/1715z–22a.md?p=4) estimates will be the value of the property or project when the proposed improvements are completed: Provided, That such [mortgage](/usc/12/1707.md?p=a) shall not in any event exceed the amount which the [Secretary](/usc/12/1715z–22a.md?p=4) estimates will be the cost of the completed physical improvements on the property or project exclusive of off-site public utilities and streets and organization and legal expenses; and
    - (C) not to exceed $8,100 per family unit (or $7,200 per family unit if the number of rooms in such property or project does not equal or exceed four per family unit) for such part of such property or project as may be attributable to dwelling use: Provided, That the [Secretary](/usc/12/1715z–22a.md?p=4) may by regulation increase such dollar amount limitations by not exceeding $900 in any geographical area where he finds that cost levels so require.
  - (3) The [mortgagor](/usc/12/1707.md?p=b) shall enter into the agreement required by [section 1715r of this title](/usc/12/1715r.md).

  The [mortgage](/usc/12/1707.md?p=a) shall provide for complete amortization by periodic payments within such term as the [Secretary](/usc/12/1715z–22a.md?p=4) shall prescribe, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 4½ per centum per annum on the amount of the principal obligation outstanding at any time. The [Secretary](/usc/12/1715z–22a.md?p=4) may consent to the release of a part or parts of the mortgaged property from the lien of the [mortgage](/usc/12/1707.md?p=a) upon such terms and conditions as he may prescribe and the [mortgage](/usc/12/1707.md?p=a) may provide for such release.

- (c) **Default; debentures; cash adjustment; certificate of claim—** The [mortgagee](/usc/12/1707.md?p=b) shall be entitled to receive debentures in connection with [mortgages](/usc/12/1707.md?p=a) insured under this section in the amount and under the conditions specified in subsection (g) of [section 1713 of this title](/usc/12/1713.md), and the references in said [subsection (g)](#g) to the cash adjustment provided for in [subsection (j)](/usc/12/1713.md?p=j) of section 1713 and to the certificate of claim provided for in [subsection (h)](/usc/12/1713.md?p=h) of section 1713 shall be deemed to refer respectively to the cash adjustment provided for in subsection (c) of [section 1750c of this title](/usc/12/1750c.md) and to the certificate of claim provided for in [subsection (d)](#d) of this section.
- (d) **Certificate of claim; contents and payment—** The certificate of claim issued by the [Secretary](/usc/12/1715z–22a.md?p=4) to any [mortgagee](/usc/12/1707.md?p=b) under this section shall be for an amount determined in accordance with, and shall contain provisions and shall be paid in accordance with, the provisions of [section 1713(h) of this title](/usc/12/1713.md?p=h).
- (e) **Debentures; issuance and payment in accordance with section 1750c(c), (d) of this title—** Debentures issued under this section shall be issued in accordance with the provisions of [section 1750c(c)](/usc/12/1750c.md?p=c) and (d) of this title except that such debentures shall be dated as of the date of default as determined in [subsection (c)](#c) of this section, and shall bear interest from such date.
- (f) **Applicability of section 1713(k), (l) of this title—** The provisions of [section 1713(k)](/usc/12/1713.md?p=k) and (l) of this title shall be applicable to [mortgages](/usc/12/1707.md?p=a) insured under this section and to property acquired by the [Secretary](/usc/12/1715z–22a.md?p=4) hereunder, except that, as applied to such [mortgages](/usc/12/1707.md?p=a) and property, the reference therein to [subsection (g)](#g) shall be construed to refer to [subsection (c)](#c) of this section.
- (g) **Applications under section 1743; credit for fees upon reapplication under this section—** In any case where an application for insurance under [section 1743 of this title](/usc/12/1743.md) was received by the [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development on or before March 1, 1950, and has not been rejected or committed upon, the [mortgagee](/usc/12/1707.md?p=b) upon reapplication for insurance of a [mortgage](/usc/12/1707.md?p=a) under this section with respect to the same property shall receive [credit](/usc/12/5481.md?p=7) for any application fees paid in connection with the prior application: Provided, That this subsection shall not constitute a waiver of any requirements otherwise applicable to the insurance of [mortgages](/usc/12/1707.md?p=a) under this section.
- (h) **Preferences—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall grant preference to applications for insurance under this subchapter to [mortgages](/usc/12/1707.md?p=a) covering housing of lower rents.

## Source credit

(June 27, 1934, ch. 847, title IX, § 908, as added Sept. 1, 1951, ch. 378, title II, § 201, 65 Stat. 301; amended June 30, 1953, ch. 170, § 10(c), 67 Stat. 124; Aug. 2, 1954, ch. 649, title I, § 130, 68 Stat. 609; Pub. L. 89–117, title XI, § 1108(z), Aug. 10, 1965, 79 Stat. 507; Pub. L. 90–19, § 1(a)(2), (3), May 25, 1967, 81 Stat. 17.)

## Notes

### Editorial Notes

### References in Text

The General Insurance Fund, referred to in text, was established by section 1735c of this title.

### Amendments

1967—Pub. L. 90–19, § 1(a)(3), substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a), (b)(1), (2)(B), (C), last par. following (C), (d), (f), and (h).

Subsec. (g). Pub. L. 90–19, § 1(a)(2), substituted “Secretary of Housing and Urban Development” for “Federal Housing Commissioner”.

1965—Subsec. (b)(1). Pub. L. 89–117, § 1108(z)(1), substituted “General Insurance Fund” for “National Defense Housing Insurance Fund”.

Subsec. (d). Pub. L. 89–117, § 1108(z)(2), struck out provision that reference in section 1713(h) of this title to “the Housing Insurance Fund” shall be deemed for the purposes of this section to be a reference to the National Defense Housing Insurance Fund.

Subsec. (f). Pub. L. 89–117, § 1108(z)(3), struck out provision that references in subsections (k) and (l) of section 1713 of this title “Housing Fund” shall be construed to refer to the “National Defense Housing Insurance Fund”.

1954—Subsec. (b)(3). Act Aug. 2, 1954, substituted requirement that mortgagor shall enter into the agreement required by section 1715r of this title for former provisions relating to certification of builders’ costs, such certifications now being prescribed in said section 1715r.

1953—Subsec. (b). Act June 30, 1953, in paragraph commencing “The mortgage shall provide”, substituted “4½ per centum” for “4 per centum”.