Full text of Federal Reserve Bank of New York Circulars : [Letter Regarding the Emergency Housing Act of 1975]

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GLAr

.

F E D E R A L R ES ER VE BANK
O F NEW YORK

D e c e m b e r 10, 1975

T o th e C h ie f E x e c u ti v e O f f i c e r o f E a c h S ta te M em b er
B a n k in th e S e c o n d F e d e r a l R e s e r v e D is tr ic t :

By l e t t e r d a t e d A u g u s t 20, 197 5, we c a l l e d you r a t t e n t i o n
to P u b l i c L a w 94-50, k n o w n as the " E m e r g e n c y H o u s i n g A c t of 197 5,"
a n d u r g e d y o u to r e v i e w the r e q u i r e m e n t s and o b j e c t i v e s of the Act,
t o g e t h e r w i t h the l o n g - t e r m p r o s p e c t s for r e p a y m e n t by d e l i n q u e n t
b o r r o w e r s b e f o r e i n s t i t u t i n g f o r e c l o s u r e action.

The lett e r n oted

the s t a t u t o r y r e q u i r e m e n t for n o t i f i c a t i o n of the F e d e r a l s u p e r v i s o r y
agencies,

the S e c r e t a r y of H o u s i n g and U r b a n D e v e l o p m e n t and the

m o r t g a g o r of an i n t e n t to f o r e c l o s e on a r e s i d e n t i a l m o r t g a g e at
l e a s t 3 0 d a y s p r i o r to the i n s t i t u t i o n of f o r e c l o s u r e a c t i o n and i n ­
d i c a t e d t h a t a d d i t i o n a l i n s t r u c t i o n s w i t h r e s p e c t to such n o t i f i c a t i o n
would be forthcoming.
A t the ti m e the l e t t e r was pre p a r e d ,

it was the i n t e n t i o n

of the v a r i o u s a g e n c i e s to d e v e l o p a c o m m o n r e p o r t i n g f o r m a t in or d e r
to a v o i d d u p l i c a t i o n of effort.

W e h a v e s ince l e a r n e d th a t the

a g e n c i e s i n t e n d to l e a v e the c o n t e n t and f o r m a t of the r e p o r t to the
d i s c r e t i o n of the r e p o r t i n g f i n a n c i a l i n s t i t u t i o n .
cient,

therefore,

It w i l l be s u f f i ­

if y o u s u p p l y the B a n k R e g u l a t i o n s D e p a r t m e n t of

t h i s B a n k a n d the S e c r e t a r y of H o u s i n g and U r b a n D e v e l o p m e n t w i t h a
c o p y of a n y f o r e c l o s u r e l e t t e r se n t to the m o r t g a g o r p u r s u a n t to the
above-stated requirement.




P aul A. V

olcker,

President.