---
kind: "section"
citation: "12 U.S.C. § 3704"
title: "12"
title_heading: "Banks and Banking"
number: "3704"
heading: "Foreclosure commissioner; designation, duties, etc."
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3704"
units:
  - "Chapter 38 — Multifamily Mortgage Foreclosure"
---

# §3704. Foreclosure commissioner; designation, duties, etc.


A foreclosure commissioner or commissioners designated pursuant to this chapter shall have a nonjudicial power of sale as provided in this chapter. Where the [Secretary](/usc/12/3702.md?p=10) is the holder of a [multifamily mortgage](/usc/12/3702.md?p=2), the [Secretary](/usc/12/3702.md?p=10) may designate a foreclosure commissioner and, with or without cause, may designate a substitute foreclosure commissioner to replace a previously designated foreclosure commissioner, by executing a duly acknowledged, written designation stating the name and business or residential address of the commissioner or substitute commissioner. The designation shall be effective upon execution. Except as provided in [section 3707(b) of this title](/usc/12/3707.md?p=b), a copy of the designation shall be mailed with each copy of the notice of default and foreclosure sale served by mail in accordance with [section 3708(1) of this title](/usc/12/3708.md?p=1). The foreclosure commissioner, if a natural [person](/usc/12/3702.md?p=5), shall be a resident of the [State](/usc/12/3702.md?p=8) in which the [security property](/usc/12/3702.md?p=7) is located and, if not a natural [person](/usc/12/3702.md?p=5), the foreclosure commissioner must be duly authorized to transact business under the laws of the [State](/usc/12/3702.md?p=8) in which the [security property](/usc/12/3702.md?p=7) is located. The foreclosure commissioner shall be a [person](/usc/12/3702.md?p=5) who is responsible, financially sound and competent to conduct the foreclosure. More than one foreclosure commissioner may be designated. If a natural [person](/usc/12/3702.md?p=5) is designated as foreclosure commissioner or substitute foreclosure commissioner, such [person](/usc/12/3702.md?p=5) shall be designated by name, except that where such [person](/usc/12/3702.md?p=5) is designated in his or her capacity as an official or employee of the government of the [State](/usc/12/3702.md?p=8) or subdivision thereof in which the [security property](/usc/12/3702.md?p=7) is located, such [person](/usc/12/3702.md?p=5) may be designated by his or her unique title or position instead of by name. The [Secretary](/usc/12/3702.md?p=10) shall be a guarantor of payment of any judgment against the foreclosure commissioner for damages based upon the commissioner’s failure properly to perform the commissioner’s duties. As between the [Secretary](/usc/12/3702.md?p=10) and the [mortgagor](/usc/12/3702.md?p=4), the [Secretary](/usc/12/3702.md?p=10) shall bear the risk of any financial default by the foreclosure commissioner. In the event that the [Secretary](/usc/12/3702.md?p=10) makes any payment pursuant to the preceding two sentences, the [Secretary](/usc/12/3702.md?p=10) shall be fully subrogated to the rights satisfied by such payment.


## Source credit

(Pub. L. 97–35, title III, § 365, Aug. 13, 1981, 95 Stat. 423.)