Federal Register - August 14, 1956
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Source: Federal Register
Tuesday, A ugust 14, 1956
FEDERAL REGISTER
CODIFICATION GUIDE Con.
Title 36
Chapter I:
Page
Part 20_________
Chapter IT:
Part 221___ __________________
6070
6070
Title 43
Chapter I:
Part 244proposed___________
6073
inclusion in the envelope containing the check to be sent to the holder. Such amounts will be credited on the Finance Office records as of the date of the U. S.
Treasury check issued to the holder.
Dated: August 8, 1956.
R . S. 161, sec. 6 3 , 50 Stat. 870, sec. 41 i>, 60 Stat. 1066, sec. 510 g , 63 Stat. 438, sec.
4 c , 64 Stat. 100, sec. 1 4 , 68 Stat. 735; 5
U. S. C. 22, 16 U. S. C. 590w 3 , 7 U. S. C.
1015 i , 42 U. S. C. 1480 g , 40 U. S. C. 442
c , 16 U. S. C. 590x3 a 7
refunds will be applied only to interest seal
K . H. H a n s e n , and principal on the note representing Administrator, the account from which the advance was Farmers Home Administration.
made.
2
Insured loan accounts. Extra F R. Doc. 56-6517; Filed, Aug. 13, 1956;
8:48 a. m .
payments and refunds on insured loan accounts will be applied first to interest accrued on the note as of the date of the U. S. Treasury check issued to the holder and the remainder will be applied Subchapter F Security Servicing and Liquidations to the principal balance on the note.
FH A Instruction 465.10
Extra payments and refunds will not P
art 372.
F arm O w n e r s h ip L oans affect the schedule status of a borrower with an insured loan or relieve him from subpart h a s s ig n m e n t op insur ed m o rt
paying the amount due the insurance gages TO THE GOVERNMENT IN TRUST
account each year.
Part 372 of Title 6, Code of Federal c Revoked.
d F i n a n c e Office handling 1 Regulations, is hereby amended to add "Direct loan accounts. The application of a new Subpart H, entitled Assignment principal and interest on direct loan ac of Insured Mortgages to the Government counts will be reflected in the record of in Trust." Section 372.129, Title 6, Code accounts maintained by the Finance O f of Federal Regulations 20 F. R. 3493
fice, as indicated on the yellow copy of is hereby superseded; the provisions Form FHA-37 returned to the County thereof are revised and incorporated in Supervisor. Amounts paid on direct Subpart H to read as follows:
loan accounts will be credited on the Sec.
Finance Office records as of the date of 372.141 General .
Form FHA-37. Collections received from 372.142 Delegations o f authority.
borrowers who have both initial and 372.143 Assigning mortgages to the Govern ment as trustee.
subsequent direct Farm Ownership loans 372.144 Assignment of notes.
bearing different rates of interest will be 372.145 Servicing actions when mortgages applied by the Finance Office in the fol are held by Government as lowing order of priority to:
trustee.
. principal on the note representing the der sec. 41 i , 60 Stat. 1066; 7 U. S. C. 1015
account from which the advance was i . Statutory provisions interpreted or ap made.
plied are cited to text in parentheses.
ii Unpaid accrued interest on the 372.141 General. This subpart pro initial loan.
vides for assigning insured Farm Own iii Unpaid accrued interest on the ership mortgages to the Government, as subsequent loans.
trustee, by the holders of the mortgages.
UnPaid principal behind schedule The mortgage will be held in trust for on the initial loan.
the benefit of the holder of the note.
Unpaid principal behind schedule W hen such an assignment has been com on the subsequent loans.
pleted, the Government will take all J , vi> Unpaid principal balances on the actions usually performed by mortgagees, t lal anc subsequent loans, prorated beincluding the execution of partial re bp, nen suoh loans on the basis of the ratio leases, subordinations, and satisfactions.
iniHfien tile annual installments on the Holders of the notes may then sell them untial and subsequent loans.
x separately by endorsement and delivery Insured loan accounts.
The without further assignment of the mort mpT1 ce, Office will distribute the paygages. Notice of such sales, neverthe and fhQbety een the insurance account less, must be given to the Government.
accnnt in accordance with Assignments of insured Farm Ownership this section.
mortgages to the Government in trust tri bu t ac c ou n t.
Amount dis may be executed by holders of such mort c re d it
msurance account will be gages when they sell the notes to buyers of thp dot0
Finance Office records as who have agreed to such assignment, ex the date of Form FHA-37.
cept when the mortgaged property is a Payment - When distributing located in Louisiana or Puerto Rico.
count th the borrowers note acAssignments of insured Farm Ownership first to Pl? ance Office will apply it mortgages to the Government in trust U S
est accrued to the date of the also may be executed by holders who and anv l Ury check issued to the holder intend to retain the notes, except when FHA-2 R9 ren?ainder to principal. Form the mortgaged property is located in Treasurv 86111 to the U. S. Alaska, Louisiana, Nevada, Puerto Rico, y Regional Disbursing Office for or South Carolina.
6055
Sec. 12 c 6 , c> 7 , f> 1 , h , i , 60 Stat. 1076, 1077; 7 U. S. C. 1005b c 6 , c 7 , f 1 , h , i
372.142 Delegations of authority.
Subject to the policies and procedures prescribed in this subpart:
a The Director, Finance Office, is authorized on behalf of the Government to execute required documents and per form other necessary actions in connec tion with insured Farm Ownership mort gages assigned or to be assigned to the Government in trust.
b The State Director and County Supervisor are authorized to take the same servicing actions for Farm Owner ship mortgages which have been assigned in trust that they are authorized in 372.2 to 372.8 to perform for direct Farm Ownership loans with respect to partial releases, subordinations, or con sents; actions by third parties affecting security; lease of farm by or on behalf of borrower; vacated farms; securing a caretaker; and death of borrower. W ith respect to such servicing actions, the State Director is authorized to perform the functions assigned to the State Field Representative.
372.143 Assigning mortgages to the Government as trustee, a The Direc tor, Finance Office, will advise any holder or buyer of an insured Farm Ownership mortgage who is interested in a trust assignment of the procedures to be fol lowed.
b W hen the Government holds sal able notes and mortgages, either for the Insurance Fund, or as Trustee of a State Rural Rehabilitation Corporation under a section 2 f agreement, the mortgages may be assigned to the Government in trust in connection with the sale of the notes.
c The assignment of mortgages to the Government shall be accom plished by the holder executing an ap proved form of assignment in trust cov ering each mortgage. The Director, Finance Office, will provide the holder with the required number of forms and with instructions for completing and ex ecuting them. The holder, after execut ing a form for each loan, will return it to the Finance Office, along with the original recorded mortgage and related documents, such as previous assign ments, partial releases, subordination agreements, and water stocks.
Any Forms FHA-359, Borrower-InsurerLender Triple Agreement," FHA-38, Letter of Certification," and FHA-206, Supplemental Purchase Agreement Insured Mortgage-Fixed Period, or FHA-207, Supplemental Purchase Agreement Insured Mortgage-Auto matic Rew new al," will be transferred or retained with the note.
d Upon receipt of the executed form of trust assignment, the Director, F i nance Office, will forward it, and any prior assignments which have not been recorded, to the appropriate County Supervisor for recording where the origi nal mortgage was recorded. The cost of recording will be paid by the Govern ment. After recordation, the original recorded trust assignment will be for warded to the holder of the note. The
