The Association is a Government corporation in the Department of Housing and Urban Development. The origin of the Association is in the creation on February 10, 1938, under title III of the National Housing Act, of the National Mortgage Association of Washington. On April 11, 1938, its name was changed to Federal National Mortgage Association. Effective November 1, 1954, it was rechartered by the Congress as a mixedownership corporation. Effective September 1, 1968, it was partitioned by the Congress into two corporations, one of which is the Association. The operations of the Association are conducted under

its statutory charter contained in title III of the National Housing Act, 12 U.S.C. 1716 et seq.

§ 1600.7

Area of operations.

The Association is authorized to conduct its business in any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.

The Association directs its operations from its office located at 451 Seventh Street SW., Washington, D.C. 20414. It has made provisions for the carrying on of such operations through the Federal National Mortgage Association (FNMA). The regional offices of FNMA are listed below:

Atlanta, Ga. 30303, 34 Peachtree Street NE.: Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee.

Chicago, Ill. 60603, 1112 CommonwealthEdison Building, 72 West Adams Street: Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin.

Dallas, Tex. 75201, 411 North Akard Street: Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, Texas.

Los Angeles, Calif. 90005, 3540 Wilshire Boulevard: Alaska, Arizona, California, Guam, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, Wyoming.

Philadelphia, Pa. 19107, 211 South Broad Street: Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Puerto Rico, Rhode Island, Vermont, Virgin Islands, Virginia, West Virginia.

(a) The Association does hereby make, constitute, and appoint each of the persons named in paragraph (c) of this section its true and lawful attorney-infact, for the Association and in its name and stead:

(1) To purchase or contract to purchase any note, bond, or other evidence of indebtedness and any accompanying real estate mortgage, deed to trust, security deed, chattel mortgage, or collateral or security of whatsoever kind or nature, to modify or consent to the modification of any such contract, and to act or authorize action to enforce any such contract;

(2) To endorse, assign, sell, exchange, amend, modify, extend, release, cancel, or renew any note, bond, check, or other evidence of indebtedness now or hereafter held by the Association, and to release from liability any maker, obligor, or guarantor on any such note, bond, check, or other evidence of indebtedness;

(3) To satisfy, discharge, release, amend, assign, modify, extend, renew, subordinate, foreclose, or liquidate in any legal manner, in whole or in part, any chattel mortgage, real estate mortgage, deed of trust, security deed, or collateral or security of whatsoever kind or nature, securing any note, bond, check, or other evidence of indebtedness now or hereafter held by the Association, and to exercise any right or authority which the Association has or may have pursuant to the terms of any such security instrument or evidence of indebtedness, including any power of appointment contained therein;

(4) To assign, convey, sell, lease, or sublease and to contract for the assignment, conveyance, sale, lease, or sublease of any real estate, chattel, security, or property of any sort or nature, or any interest therein, now held or hereafter acquired by the Association;

(5) To discharge, satisfy, release, waive, enforce, compromise, subordinate, or assign, in whole or in part, any judgment now or hereafter entered in favor of, or assigned to, the Association;

(6) To assign, surrender, release, or modify, or consent to the assignment, surrender, release, or modification of, any policy of insurance, or any right arising therefrom, of which the Association now is or hereafter shall become the assignee, beneficiary, or the insured, or in which the Association now has or hereafter may have any interest of any kind or nature; and to execute proof of loss, proof of death, statement of claimant, and any other instrument in connection with any such policy of insurance and any right arising therefrom;

(7) To execute, acknowledge, deliver, file for record, and record any such instrument, and to perform such other act or acts as may be necessary and proper to effectuate the foregoing; and

(8) To designate and appoint in behalf of the Association such other attorneys-in-fact for the Association as he may deem appropriate for the purpose of releasing or satisfying of record any specific mortgage, deed of trust, security

does

further

deed, or other security instrument now or hereafter held by the Association. (b) The Association grant unto each of such attorneys-infact, and any other attorney-in-fact designated and appointed pursuant to this section, full power and authority to do and perform all and every act and thing requisite, necessary, and proper to carry into effect the power or powers granted by or under this section as fully, to all intents and purposes, as the Association might or could do, and hereby does ratify and confirm all that each of such attorneys-in-fact, and any other attorney-in-fact designated and appointed pursuant to this section, shall lawfully do or cause to be done by virtue of the power or powers granted by or under this section.

(c) The persons appointed attorneysin-fact by paragraph (a) of this section

are:

(1) The Federal National Mortgage Association, a U.S. corporation.

(2) Allan E. Arneson, of Los Angeles, Calif.

(3) Harry F. Bickford, of Philadelphia, Pa.

(4) Howard S. Carnes, of Atlanta, Ga. (5) W. D. Cornwell, of Atlanta, Ga. (6) J. L. Dacus, of Atlanta, Ga. (7) Lawrence V. Daniels, of Los Angeles, Calif.

(8) K. A. Duncan, of Atlanta, Ga. (9) Joseph J. Dunne, of Chicago, Ill. (10) B. B. Fincher, of Dallas, Tex. (11) Ralph J. Grutsch, of Chicago, Ill. (12) Helmer G. Hanson, of Chicago, Ill.

(13) Charles W. Harvey, Jr., of Los Angeles, Calif.

(14) E. V. Hopkins, of Washington, D.C.

(15) William F. W. Jones, of Philadelphia, Pa.

(16) Kevin E. Keegan, of Philadelphia, Pa.

(17) Hughes A. King, of Dallas, Tex. (18) Philip J. Lynch, of Philadelphia, Pa.

(19) Hugh J. McConville, of Dallas, Tex.

(20) Albert D. Oltman, of Los Angeles, Calif.

(21) Frank W. Pence, of Washington, D.C.

§ 1600.13 Exceptions.

In the conduct of its affairs, in individual cases or classes of cases, the Association reserves the right, consistent with law, without prior notice and at any time, to alter or waive any

Sec. 1625.1 1625.3

1625.5 1625.7

of the requirements contained in this chapter or elsewhere or to impose other and additional requirements; it further reserves the right, without prior notice and at any time, to amend or rescind any or all of the material set forth herein.

PART 1625-DESCRIPTION

Authority.

Mortgages eligible for purchase.
Fees or charges.

Below-market interest rate mort-
gages.

1625.9 Financing of special assistance

The Special Assistance Functions of the Association are authorized by section 305 of the National Housing Act, to provide financing for selected types of mortgages that qualify under special housing programs. The Association also provides assistance, from time to time, through the purchase of home mortgages generally as a means of retarding or stopping a decline in mortgage lending and home building activities which threatens materially the stability of a high level National economy.

§ 1625.3 Mortgages eligible for purchase.

Operations under the Special Assistance Functions are confined, so far as is practicable, to mortgages which are deemed by the Association to be of such quality as to meet, substantially and generally, the purchase standards imposed by private institutional mortgage investors, but which, at the time the mortgages are offered for purchase, are not necessarily readily acceptable to such investors. When and as authorized by the President of the United States, or by the Congress, the Association announces the inauguration of Special Assistance Programs, specifying the types of mortgages that will be purchased, the prices to be paid therefor,

and any special acceptability requirements relating to such Programs. § 1625.5 Fees or charges.

Fees or charges for the Association's services under the Special Assistance Functions are established with the objective that all related costs and expenses will be within the income of the Association derived from the operations and that such operations will be fully self-supporting. In connection with all purchases of mortgages, unless otherwise specified as to a particular Special Assistance Program, the Seller is required to pay a Purchase and Marketing fee. For the issuance of commitments to purchase mortgages in the future, a Commitment fee is also charged. § 1625.7

Below-market interest rate

mortgages.

The Association is expressly authorized to purchase below-market interest rate mortgages insured under sections 221 (d) (3) and 221 (h) of the National Housing Act. As to these mortgages, the Association's operations are not required to be self-supporting.

§ 1625.9 Financing of special assistance functions.

Funds required for operations of the Special Assistance Functions are obtained primarily by borrowings from the Secretary of the Treasury. Additional sources of funds are portfolio liquidations, sales of certificates of beneficial interests or participations in mortgages, and net earnings. All of the benefits and burdens incident to the administration of the Special Assistance Functions inure solely to the Secretary of the Treasury.