PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4287 take effect not later than 30 days after the date on which the regulations are issued, (3) APPLICABILITY. — The amendments made by this section shall not apply to guaranteed loans under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.) made before the date on which the final regulations issued by the Secretary under paragraph (2) take effect. (4) CONSULTATION. — In developing and promulgating the regulations under paragraphs (1) and (2), the Secretary of Agriculture shall consult with the chairperson of the Federal Agricultural Mortgage Corporation and shall solicit the views of borrowers, lenders, realtors, and homebuilders experienced and knowledgeable regarding housing in rural areas to provide that the regulations promulgated ensure that guaranteed loans pursuant to the amendments made by this section— (A) are made in a manner that is cost-effective; and (B) are made in a manner that reduces, to the extent practicable, the burden of administration and paperwork for borrowers and lenders. SEC. 707. FORECLOSURE PROCEDURES. (a) IN GENERAL.— Section 505 of the Housing Act of 1949 (42 U.S.C. 1475) is amended— (1) by inserting "(a) MORATORIUM.— " after the section designation; and (2) by adding at the end the following new subsection: "(b) FORECLOSURE PROCEDURE.—In foreclosing on any mortgage held by the Secretary under this title, the Secretary shall follow the foreclosure procedures of the State in which the property involved is located to the extent such procedures are more favorable to the borrower than the foreclosure procedures that would otherwise be followed by the Secretary. This subsection shall be subject to the availability of amounts approved in appropriations Acts, to the extent additional budget authority is necessary to carry out this subsection.". (b) CONFORMING AMENDMENT.— The section heading for section 505 of the Housing Act of 1949 (42 U.S.C. 1475) is amended to read as follows: "LOAN PAYMENT MORATORIUM AND FORECLOSURE PROCEDURES". SEC. 708. DISPOSITION OF INTERESTS ON INDIAN TRUST LAND. Section 509 of the Housing Act of 1949 (42 U.S.C. 1479) is amended— (1) by redesignating subsection (d) as subsection (e); and (2) by inserting after subsection (c) the following new subsection: "(d) In the event of default involving a security interest in tribal allotted or trust land, the Secretary shall only pursue liquidation after offering to transfer the account to an eligible tribal member, the tribe, or the Indian housing authority serving the tribe or tribes. If the Secretary subsequently proceeds to liquidate the account, the Secretary shall not sell, transfer, or otherwise dispose of or alienate the property except to one of the entities described in the preceding sentence.".
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