---
kind: "section"
citation: "12 U.S.C. § 3751"
title: "12"
title_heading: "Banks and Banking"
number: "3751"
heading: "Findings and purpose"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/3751"
units:
  - "Chapter 38A — Single Family Mortgage Foreclosure"
---

# §3751. Findings and purpose

- (a) **Findings—** The Congress finds that—
  - (1) the disparate [State](/usc/12/3752.md?p=11) laws under which [mortgages](/usc/12/3752.md?p=3) are foreclosed on behalf of the [Secretary](/usc/12/1715z–22a.md?p=4) covering 1- to 4-family residential properties—
    - (A) burden certain programs administered by the [Secretary](/usc/12/1715z–22a.md?p=4);
    - (B) increase the costs of collecting obligations; and
    - (C) generally are a detriment to the community in which the properties are located;
  - (2) the long periods required to complete the foreclosure of such [mortgages](/usc/12/3752.md?p=3) under certain [State](/usc/12/3752.md?p=11) laws—
    - (A) lead to deterioration in the condition of the properties involved;
    - (B) necessitate substantial Federal holding expenditures;
    - (C) increase the risk of vandalism, fire loss, depreciation, damage, and waste with respect to the properties; and
    - (D) adversely affect the neighborhoods in which the properties are located;
  - (3) these conditions seriously impair the ability of the [Secretary](/usc/12/1715z–22a.md?p=4) to protect the Federal financial interest in the affected properties and frustrate attainment of the objectives of the underlying Federal program authority;
  - (4) the availability of uniform and more expeditious procedures, with no right of redemption in the [mortgagor](/usc/12/3752.md?p=5) or others, for the foreclosure of these [mortgages](/usc/12/3752.md?p=3) by the [Secretary](/usc/12/1715z–22a.md?p=4) will tend to ameliorate these conditions; and
  - (5) providing the [Secretary](/usc/12/1715z–22a.md?p=4) with a nonjudicial foreclosure procedure will reduce unnecessary litigation by removing many foreclosures from the courts if they contribute to overcrowded calendars.
- (b) **Purpose—** The purpose of this chapter is to create a uniform Federal foreclosure remedy for [single family mortgages](/usc/12/3752.md?p=10) that—
  - (1) are held by the [Secretary](/usc/12/1715z–22a.md?p=4) pursuant to title I or title II of the National Housing Act [[12 U.S.C. 1702](/usc/12/1702.md) et seq., 1707 et seq.]; or
  - (2) secure loans obligated by the [Secretary](/usc/12/1715z–22a.md?p=4) under section 1452b[^1] of title 42.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316.)

## Notes

### Editorial Notes

### References in Text

The National Housing Act, referred to in subsec. (b)(1), is act June 27, 1934, ch. 847, 48 Stat. 1246. Titles I and II of the Act are classified generally to subchapters I (§ 1702 et seq.) and II (§ 1707 et seq.), respectively, of chapter 13 of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

Section 1452b of title 42, referred to in subsec. (b)(2), was repealed by Pub. L. 101–625, title II, § 289(b)(1), Nov. 28, 1990, 104 Stat. 4128.

### Codification

Section is based on section 802 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327.

### Statutory Notes and Related Subsidiaries

### Effective Date

Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2316, provided in part that title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which is classified to this chapter, is incorporated into Pub. L. 103–327 and deemed enacted into law upon enactment of Pub. L. 103–327, which was approved Sept. 28, 1994.

### Short Title

Section 801 of title VIII of S. 2281, One Hundred Third Congress, as reported July 13, 1994, which was enacted into law by Pub. L. 103–327, title II [title VIII, § 801], Sept. 28, 1994, 108 Stat. 2316, provided in part, that: “This title [enacting this chapter] may be cited as the ‘Single Family Mortgage Foreclosure Act of 1994’.”