of excess proceeds to effect final settlement on certificates of claim; and to execute and receipt or cause to be executed and receipted under his direction applications and receipts for any payments received representing refunds of taxes or other payments made by the Secretary in connection with property acquired by the Secretary under the provisions of the National Housing Act.

(1) To keep, or cause to be kept under his direction, a seal of the Department of Housing and Urban Development; to certify as to delegations of authority by any Assistant Secretary and as to the truth or accuracy of copies of original papers or documents in the possession of the FHA; to prepare and execute, or cause to be prepared and executed, certified and notarized affidavits for the use of U.S. attorneys in presenting the fiscal status of Secretary-held mortgages at foreclosure trials, and to maintain the Archives files of FHA.

(m) To recommend the terms and conditions under which FHA offers to sell purchase money mortgages and assigned mortgage notes to approved mortgagees; upon approval of the recommendation make offers for the sale of such mortgages and assigned notes; and execute in the name of the Secretary acceptance of such offers.

(n) To endorse or cause to be endorsed under his direction, mortgage notes for insurance; to take, or cause to be taken under his direction, any action necessary to consummate the sale of Secretary-held mortgages to purchasers of such mortgages; and to execute, or cause to be executed, satisfactions of Secretary-held mortgages when the mortgage indebtedness has been paid in full.

(0) To endorse, or cause to be endorsed under his direction, checks and other negotiable instruments for deposit or collection; to endorse, or cause to be endorsed under his direction, loss drafts relating to insurance coverage on Secretary-held home and project mortgages; to endorse, or cause to be endorsed under his direction, checks and other negotiable instruments in order to perfect negotiability for other parties at interest where the Secretary is not entitled to the proceeds of such

instruments, relating to applications for insurance benefits; and to execute assignments and other instruments pertaining to the sale or other disposition of stock or other securities received as a result of agreements between mortgagors or other depositors and FHA.

(p) To approve or cause to be approved under his direction all expenditures and to receipt or cause to be receipted under his direction all vouchers necessary to carry out the provision of the National Housing Act.

(q) To certify or cause to be certified under his direction that all required documents, information, and approvals respecting each transaction are present; verify or cause to be verified under his direction the accuracy of the computations, the consistency of the information included in the various documents and determined or cause to be determined under his direction that the transactions are in strict accordance with all applicable regulations, decisions, and laws.

(r) To approve or disapprove, or cause to be approved or disapproved under his direction, amounts claimed by mortgagees in their applications for insurance benefits, including amounts for operating, protecting, and preserving properties prior to conveyance to the Secretary; to execute, or cause to be executed under his direction, certificates of claim; to certify, or cause to be certified under his direction, the requisitions to the Treasury Department for the issuance of debentures; to certify, or cause to be certified under his direction, vouchers for cash settlement of applications for insurance benefits; and to approve or disapprove, or cause to be approved or disapproved under his direction, the purchase of debentures submitted by mortgagees in connection with the payment of mortgage insurance premiums and adjusted premium charges.

(s) To extend or cause to be extended under his direction the period of time for submission of fiscal data or title evidence supporting a mortgagee's application for insurance benefits.

(t) To maintain or cause to be maintained under his direction liaison with the General Accounting Office, Treasury Department, and other agencies of

the Government on accounting, insurance fiscal servicing and fiscal matters, and to collaborate with such departments and agencies in the formation of accounting and fiscal programs.

(u) To issue, or cause to be issued, duplicate or corrective mortgage insurance certificates; to cancel, or cause to be canceled under his direction, insurance endorsement or the mortgage insurance certificate on insured mortgages where a joint request for termination is made by the mortgagor and mortgagee, or when the insurance endorsement or the mortgage insurance certificate is otherwise to be canceled; and to exercise the authority of the Assistant Secretary in any instance which is subject to the approval of the Assistant Secretary in connection with the prepayment or voluntary termination of insured mortgages.

(v) To take any action authorized to be taken by any division or office within his jurisdiction.

(w) To exercise, or cause to be exercised, the authority of the Assistant Secretary to endorse any preferred stock certificate held by him in any corporation for the purpose of retirement and cancellation.

(x) To approve the sale and terms of sale of mortgages taken as security in connection with the sale of property acquired in connection with Federal Housing claims.

Administration insurance

(y) With respect to the Appalachian Housing Fund, pursuant to the Appalachian Regional Development Act of 1965:

(1) To reserve or, as appropriate, record, or cause to be reserved or recorded, all approved reservations of funds and to record and control, or cause to be recorded and controlled, all obligations of funds for loans under this fund.

(2) To disburse, or cause to be disbursed, moneys in the fund for making loans to sponsors for development of applications for commitments for project mortgages for projects under section 207 of the Appalachian Regional Development Act of 1965 approved pursuant to section 223 of such Act and for general expenses of administration of section 207 of such Act; and

(3) To collect, or cause to be collected, the loan repayments and interest thereon, and to execute, or cause to be executed, the satisfaction of loan and trust agreement when the loan indebtedness has been paid in full or canceled.

(z) With respect to section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966: To perform, or cause to be performed, all fiscal duties and functions necessary to comply with the requirements of the agreement entered into between the Department of Defense and the Department of Housing and Urban Development.

(aa) With respect to the Low and Moderate Income Sponsor Fund, pursuant to section 106 of the Housing and Urban Development Act of 1968:

(1) To reserve or, as appropriate, record, or cause to be reserved or recorded, all approved reservations of funds and to record and control, or cause to be recorded and controlled, all obligations of funds for loans or grants made under the fund.

(2) To disburse, or cause to be disbursed, moneys in the fund for making grants to public bodies, nonprofit or cooperative organizations, and loans, without interest, to nonprofit sponsors of housing for low- and moderateincome families; and

(3) To collect, or cause to be collected, the loan repayments, and to execute, or cause to be executed, the satisfaction of loan and trust agreements when the loan indebtedness has been paid in full or canceled.

(bb) To reserve or, as appropriate, record, or cause to be reserved or recorded, all approved reservations of contract authority and to record and control, or cause to be recorded and controlled, all contractual obligations of contract authority pertaining to assistance payment contracts under section 235; interest reduction contracts under section 236; contracts for debt management or counseling services under section 237; and contracts for rent supplement payments, pursuant to section 101 of the Housing and Urban Development Act of 1965, and amendments thereto.

(cc) To establish and maintain or cause to be established and main

tained under his direction an account for the deposit of fees collected under the Interstate Land Sales Full Disclosure Act; and to make disbursements from appropriated funds and receipts, for general expenses of administration of the land sales registration under such Act and make refunds of overpayments of land sales registration fees.

(dd) To reendorse, or cause to be reendorsed, for insurance under section 222 eligible mortgages on singlefamily dwellings insured under other home mortgage sections of the Act, where the mortgages have been assumed by eligible servicemen.

(ee) To approve or disapprove, or cause to be approved or disapproved under his direction, the settlement of mortgagees' applications for insurance benefits without deduction from the insurance benefits for losses оссаsioned by fire damage to home properties or by fire and other hazards to multifamily properties, in accordance with the provisions of §§ 203.379(b) and 207.260(d), respectively, of the FHA regulations.

(ff) To extend, or cause to be extended under his direction, the period of time for assignment to the Secretary of a mortgage on which the assistance payment contract has been terminated because of nonoccupancy by the original mortgagor or qualified purchaser.

(gg) To approve or disapprove, or cause to be approved or disapproved, certificates of interest rate changes submitted by mortgagees with respect to mortgages with flexible interest rates insured under section 236.

(hh) To establish and maintain, or cause to be established and maintained under his direction, an account for the deposit of excess rental income collected under section 236 of the National Housing Act.

(ii) To prepare and execute, or cause to be prepared and executed, certified statements of account on Secretaryheld home properties for the General Counsel as requested by the Department of Justice.

(jj) To execute, or cause to be executed, agreements with mortgagors that provide for the deposit of the mortgagors' reserve for replacement

funds in federally insured depositories when the Secretary is the holder of a multifamily mortgage; to open, or cause to be opened, for this purpose appropriate accounts with federally insured depositories and to deposit and withdraw, or cause to be deposited and withdrawn, funds in these accounts.

§ 3.10 Director Accounting Division and Deputy.

To the position of Director, Accounting Division, and under his general supervision to the position of Deputy Director, Accounting Division, there is delegated the following basic authority and functions:

(a) To direct the activities of the Accounting Division.

(b) To devise and establish accounting procedures and policies and to maintain official accounting records for all activities of the Administration.

(c) To devise and establish procedures and policies and to maintain official records for all home properties and mortgages held by the Secretary.

(d) To provide technical advice and guidance to all organizational elements of the Administration in the fields of accounting, including property and mortgage servicing accounting.

(e) To maintain liaison with the General Accounting Office, Treasury Department and other agencies of the Government on accounting matters and to collaborate with such departments and agencies in the formation of accounting programs.

(f) To maintain liaison with the Government National Mortgage Association and other Government agencies on matters pertaining to the sale and insurance of Secretary-held mortgages.

(g) To endorse mortgage notes for insurance; to take any action necessary to consummate the sale of Secretary-held mortgages to purchasers of such mortgages, and to execute the satisfaction of Secretary-held mortgages when the mortgage indebtedness has been paid in full.

(h) To develop and maintain a program for the fiscal servicing of Secretary-held home mortgages including the execution of vouchers for expendi

tures from mortgagors' escrow ac

counts.

(i) To execute vouchers for payment of taxes on home properties where title is vested in the Secretary and for payment of excess proceeds to effect final settlement with mortgagees on certificates of claim under provisions of the National Housing Act.

(j) To act with the Comptroller and under his direction in the determination of basic policies on accounting and the fiscal servicing of home property and mortgage note accounts.

(k) With respect to the Appalachian Housing Fund, pursuant to the Appalachian Regional Development Act of 1965.

(1) To reserve or, as appropriate, record all approved reservations of funds and to record and control all obligations of funds for loans under this fund.

(2) To disburse moneys in the fund for making loans to sponsors for development of applications for commitments for project mortgages for projects under section 207 of such Act, approved pursuant to section 223 of such Act, and for general expenses of administration of section 207 of such Act; and

(3) To collect the loan repayments and interest thereon, and to execute the satisfaction of the loan and trust agreements when the loan indebtedness has been paid in full or canceled.

(1) With respect to section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966: To perform all fiscal duties and functions necessary to comply with the requirements of the agreement entered into between the Department of Defense and the Department of Housing and Urban Development.

(m) With respect to the Low and Moderate Income Sponsor Fund, pursuant to section 106 of the Housing and Urban Development Act of 1968:

(1) To reserve or, as appropriate, record all approved reservations of funds and to record and control all obligations of funds for loans made under the fund;

(2) To disburse moneys in the fund for making loans, without interest, to nonprofit sponsors of housing for lowand moderate-income families; and

(3) To collect the loan repayments and to execute the satisfaction of loan and trust agreements when the loan indebtedness has been paid in full or canceled.

(n) To reserve or, as appropriate, record all approved reservations of contract authority and to record and control all contractual obligations of contract authority pertaining to assistance payment contracts under section 235; interest reduction contracts under section 236; contracts for debt management or counseling services under section 237; and contracts for rent supplement payments, pursuant to section 101 of the Housing and Urban Development Act of 1965, and amendments thereto; and

(0) To establish and maintain an account for the deposit of fees collected under the Interstate Land Sales Full Disclosure Act.

(p) To prepare and execute certified and notarized affidavits for the use of U.S. attorneys in presenting the fiscal status of Secretary-held mortgages at foreclosure trials.

(q) To establish and maintain an account for the deposit of excess rental income collected under section 236 of the National Housing Act.

(r) To issue duplicate or corrective mortgage Insurance certificates in connection with mortgages insured under the Government National Mortgage Association and/or Federal National Mortgage Association direct sales program.

(s) To prepare and execute certified statements of account on Secretaryheld home properties for the General Counsel as requested by the Department of Justice.

fication and termination of such insurance for home and project mortgages and to register title I loans reported for insurance.

(c) To provide fiscal and technical advice and guidance with respect to mortgage modifications prior to administrative approval.

(d) To cancel the insurance endorsement or the mortgage insurance certificate on insured mortgages when a joint request for termination is made by the mortgagor and mortgagee, or when the insurance endorsement or the mortgage insurance certificate is otherwise to be canceled.

(e) To ascertain sufficiency of renewal and adjusted premium collections with respect to termination of insurance; authorize refund of unearned premiums collected or institute billing for the collection of premiums due.

(f) To authorize payment of earned distributive shares in the participation reserve account of the Mutual Mortgage Insurance Fund to the rightful recipients thereof.

(g) To devise and maintain procedures relating to the fiscal servicing of Secretary-held project mortgages and to execute vouchers for payment of all expenditures from mortgagor escrow accounts relating thereto.

(h) To develop and maintain fiscal procedures for the operation of Secretary-owned project properties by agents of the Secretary under contract for the management of such properties; to provide advice and guidance to those agents with respect to such fiscal procedures, and to execute vouchers for payment of real estate taxes, special assessments, hazard insurance, and repairs relating to such properties.

(i) To certify vouchers in payment of title I claims representing the insurable loss sustained and to refund to the remitter of record any collections obtained in excess of the established indebtedness.

(j) To act with the Comptroller and under his direction in the determination of basic insurance fiscal servicing policy.

(k) To direct and supervise periodic portfolio examinations of institutions insured under the provisions of section

2 of title I of the National Housing Act.

(1) To execute satisfactions and releases of Secretary-held mortgages when the mortgage indebtedness has been paid in full..

(m) To issue duplicate or corrective mortgage insurance certificates.

(n) To exercise the authority of the Assistant Secretary-Commissioner to endorse any preferred stock certificate held by him in any corporation for the purpose of retirement and cancellation.

(0) To reendorse for insurance under section 222 eligible mortgages on single-family dwellings insured under other home mortgage sections of the Act, where the mortgages have been assumed by eligible servicemen; and

(p) To approve or disapprove certificates of interest rate changes submitted by mortgagees with respect to mortgages with flexible interest rates insured under section 236.

(q) To execute agreements with mortgagors that provide for the deposit of the mortgagors' reserve for replacement funds in federally insured depositories when the Secretary is the holder of a multifamily mortgage; to open for this purpose appropriate accounts with federally insured depositories and to deposit and withdraw funds in these accounts.

§3.12 Director Fiscal Division and Deputy.

To the position of Director, Fiscal Division, and under his general supervision to the position of Deputy Director, Fiscal Division, there is delegated the following basic authority and functions:

(a) To direct the activities of the Fiscal Division.

(b) To devise and establish fiscal procedures and to administer the fiscal policies and activities of the Administration.

(c) To approve all operating and property expenditures and receipt vouchers necessary to carry out the provisions of the National Housing Act upon his determination that they are in accordance with applicable regulations, decisions, and laws.