12 U.S.C. § 1701l-1Section
§ 1701l–1. Mortgage proceeds fraudulently misappropriated by mortgagor; recovery of deficiency after foreclosure
The Secretary of Housing and Urban Development shall take action to secure the payment of any deficiency after foreclosure on a mortgage insured or assisted under Federal law where the Secretary has reason to believe that the mortgage proceeds have been fraudulently misappropriated by the mortgagor.
(Pub. L. 93–383, title VIII, §819, Aug. 22, 1974, 88 Stat. 740.)
