Federal Housing Administration Act

Federal Housing Administration Act - Expresses the purposes of this Act. Establishes, under the National Housing Act, a government corporation, called the Federal Housing Administration (FHA) in the executive branch to carry on mortgage insurance programs. Gives the FHA permanent existence, and provides for its powers to continue without interruption until the corporation is formally dissolved by Congress.

Provides that the FHA is to be governed by a 6 member Board of Directors, and a Commissioner who is also Chairman of the Board. Sets forth the responsibilities of the Board of Directors of the FHA, including to exercise general supervision over the functioning of the FHA. Requires the Board to approve actions taken by the Commissioner in setting maximum mortgage amounts, fees and premiums, and mortgage market interest rates.

Establishes the Commissioner of the FHA as the administrative and executive head of the Corporation, to be appointed by the President for a six year term. Directs the Commissioner to advise the Board and the President on housing matters under the scope of the Act and to provide information and technical assistance on the subject of housing to State and local governments. Makes the Commissioner responsible for maintaining liaison with Congress for the FHA, and with making a yearly report on the FHA's activities. Provides for Assistant Commissioners and a General Counsel.

Transfers to the FHA all of the functions, powers and duties now committed to the Department of Housing and Urban Development under specified sections of Title I and Title II of the National Housing Act. Empowers the Commissioner to insure loans made for the purpose of financing the renovation and repair of existing structures and the building of new structures including the financing of the purchase of a mobile home to be used as a principle residence. Authorizes the Commissioner to set standards for the type of improvements and repairs which can be insured, and minimum standards for mobile homes and the sites on which they are to be located. Enumerates the powers of the Commissioner, including to transfer insurance when the loan is sold by one financial institution to another and to set premium charges for the insurance. Authorizes the Commissioner to insure eligible mortgages and to make commitments for the insuring of such mortgages. Sets forth the criteria which must be met for a mortgage to be eligible for insurance. Directs the Commissioner to determine credit standards to be met by mortgages, interest rates and other terms and conditions of the mortgage to be insured, and the minimum amount of cash which must be paid by the mortgagor as a down payment. Provides that any contract of insurance issued by the Commissioner is to be conclusive evidence of the eligibility of the loan or mortgage for insurance.

Provides for the insurance of mortgage loans made to reconstruct single-family homes destroyed by flood, fire, hurricane, earthquake, storm, riot, or other catastrophe, under the Disaster Relief Act of 1970. Empowers the Commissioner to insure mortgages in outlying areas or small communities where he finds that it is not practical to obtain conformity with the requirements for mortgages on housing in built-up urban areas. Provides for the Commissioner to insure mortgages on vacation or seasonal homes subject to specified standards.

Provides for the payment of insurance by the Commissioner, and attendant proceedings including foreclosure, conveyance of title, issuance of debentures and certificates of claim in lieu of cash. Authorizes the Commissioner to consent to the release of the mortgagor or the property from the lien of the mortgage. Gives the Commissioner the power to deal with, in all respects, and in his discretion, any property conveyed to him in exchange for debentures and certificates of claim.

Provides that the Commissioner is authorized to include in the amount of insurance, amounts reasonably incurred by the mortgage in the course of foreclosure for protecting and operating the property, and conveying the property to the Commissioner.

Provides for the maintenance of a General Surplus Account and a Participating Reserve Account within the Mutual Mortgage Insurance Fund. Provides for the allocation of aggregate net income or loss sustained by the Mutual Mortgage Insurance Fund between the General Surplus Account and the Participating Reserve Account by the Commissioner. Provides that, after a mortgagor has paid his mortgage in full, and the insurance has been terminated, the Commissioner is to distribute to such mortgagor his share of the Participating Reserve Account.

Authorizes the Commissioner to insure mortgages on rental housing designed to provide housing for families at moderate rentals. Sets forth maximum mortgage amounts and loan to value ratios for projects insured along with the Commissioner's authority to change such amounts with the approval of the Board. Provides for the issuance by the Commissioner of certificates of claim as part of the payment of insurance, together with debentures and cash. Provides for the acquisition of title to property by the Commissioner by means of voluntary conveyance or foreclosure.

Gives the Commissioner authority to deal with property acquired by him, and to pursue and settle all claims assigned to him. Sets forth the rights of the parties in the case of default or payment of the mortgage. Provides for reissuance of insurance issued prior to the enactment of the National Housing Act amendments of 1938.

Provides for application of the prevailing area wage rate standards of the Davis-Bacon Act to construction upon which there is a mortgage insured under this Act.

Provides for insurance of mortgages on cooperative housing projects owned and operated by a nonprofit cooperative ownership housing corporation or trust, a nonprofit corporation or nonprofit trust organized for the purpose of construction of homes for members of the corporation or beneficiaries of the trust, or a mortgagor which will sell the property or project to a nonprofit cooperative housing corporation or trust.

Authorizes the Commissioner to process applications and issue commitments for insurance of mortgages even through the permanent mortgaging financing may not be insured under this Act. Gives the Commissioner the authority to isure mortgages where the mortgagor is not the occupant of the property by reason of military service where he intends to occupy the property upon discharge from military service.

Requires that the purchaser of property approved for mortgage insurance under this Act be provided by the seller or builder with a written appraisal of the property prior to the sale of the property.

Provides that no mortgage covering new or rehabilitated multifamily housing is to be insured unless the mortgagor has provided the Commissioner with a cost certification showing that the approved percentage of actual cost equalled or exceeded the proceeds of the mortgage loan, or that any excess is to be paid forthwith to the mortgagee for application to reduction of the principal obligation of the mortgage.

Authorizes the Commissioner to terminate insurance under this Act upon request of the borrower or mortgagor, and the financial institution or mortgagee, and payment of a termination charge.

Gives the Commissioner the right to acquire the mortgage, upon payment of insurance benefits to the mortgagee, for the purpose of avoiding foreclosure by the mortgagee. Provides for mortgage insurance for condominiums.

Transfers the personnel, assets, contracts, property, unexpended appropriations, used in the programs of the National Housing Act, to the new FHA.

Provides for the establishment of mortgage fees, interest rates, and premium charges sufficient to meet the expenditures of the FHA and provide adequate reserve funds. Enumerates additional powers and duties of the Commissioner.

Authorizes the FHA to borrow from the Treasury such funds as the Board deems necessary for insurance purposes. Provides for investment of money of the FHA not otherwise employed in obligations of the United States or obligations guaranteed as to principal and interest by the United States.

Provides that debentures and other obligations of the FHA shall be exempt from all State and Federal taxation, and the FHA, including its franchise, capital, reserves, surplus, and income shall be exempt from all State and Federal taxation, except that the FHA's real property may be taxed as other real property is taxed.

Authorizes other Federal instrumentalities currently authorized to purchase mortgages insured under the National Housing Act to purchase mortgages insured by the FHA. Provides for non-abatement of actions by or against agencies whose functions are being transferred by this Act. Provides for the auditing of the affairs of the FHA annually by the General Accounting Office, and the rendering of a report of the results of that audit.

Provides for severance of any part of the Act which might at a future time be declared unconstitutional, and for the continued validity of the remainder of the Act. Repeals specified portions of the National Housing Act.