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CITE

    12 USC Sec. 1709                                            01/05/2009

EXPCITE

    TITLE 12 - BANKS AND BANKING
    CHAPTER 13 - NATIONAL HOUSING
    SUBCHAPTER II - MORTGAGE INSURANCE

HEAD

    Sec. 1709. Insurance of mortgages

STATUTE

    (a) Authorization
      The Secretary is authorized, upon application by the mortgagee,
    to insure as hereinafter provided any mortgage offered to him which
    is eligible for insurance as hereinafter provided, and, upon such
    terms as the Secretary may prescribe, to make commitments for the
    insuring of such mortgages prior to the date of their execution or
    disbursement thereon.
    (b) Eligibility for insurance; mortgage limits
      To be eligible for insurance under this section a mortgage shall
    comply with the following:
        (1) Have been made to, and be held by, a mortgagee approved by
      the Secretary as responsible and able to service the mortgage
      properly.
        (2) Involve a principal obligation (including such initial
      service charges, appraisal, inspection, and other fees as the
      Secretary shall approve) in an amount -
          (A) not to exceed the lesser of -
            (i) in the case of a 1-family residence, 115 percent of the
          median 1-family house price in the area, as determined by the
          Secretary; and in the case of a 2-, 3-, or 4-family
          residence, the percentage of such median price that bears the
          same ratio to such median price as the dollar amount
          limitation determined under the sixth sentence of section
          1454(a)(2) of this title for a 2-, 3-, or 4-family residence,
          respectively, bears to the dollar amount limitation
          determined under such section for a 1-family residence; or
            (ii) 150 percent of the dollar amount limitation determined
          under the sixth sentence of such section 1454(a)(2) for a
          residence of applicable size;
        except that the dollar amount limitation in effect under this
        subparagraph for any size residence for any area may not be
        less than the greater of: (I) the dollar amount limitation in
        effect under this section for the area on October 21, 1998; or
        (II) 65 percent of the dollar amount limitation determined
        under the sixth sentence of such section 1454(a)(2) for a
        residence of the applicable size; and
          (B) not to exceed 100 percent of the appraised value of the
        property.
      For purposes of the preceding sentence, the term "area" means a
      metropolitan statistical area as established by the Office of
      Management and Budget; and the median 1-family house price for an
      area shall be equal to the median 1-family house price of the
      county within the area that has the highest such median price.
      Notwithstanding any other provision of this paragraph, the amount
      which may be insured under this section may be increased by up to
      20 percent if such increase is necessary to account for the
      increased cost of the residence due to the installation of a
      solar energy system (as defined in subparagraph (3) of the last
      paragraph of section 1703(a) of this title) therein.
        Notwithstanding any other provision of this paragraph, the
      Secretary may not insure, or enter into a commitment to insure, a
      mortgage under this section that is executed by a first-time
      homebuyer and that involves a principal obligation (including
      such initial service charges, appraisal, inspection, and other
      fees as the Secretary shall approve) in excess of 97 percent of
      the appraised value of the property unless the mortgagor has
      completed a program of counseling with respect to the
      responsibilities and financial management involved in
      homeownership that is approved by the Secretary; except that the
      Secretary may, in the discretion of the Secretary, waive the
      applicability of this requirement.
        (3) Have a maturity satisfactory to the Secretary, but not to
      exceed, in any event, thirty-five years (or thirty years if such
      mortgage is not approved for insurance prior to construction)
      from the date of the beginning of amortization of the mortgage.
        (4) Contain complete amortization provisions satisfactory to
      the Secretary requiring periodic payments by the mortgagor not in
      excess of his reasonable ability to pay as determined by the
      Secretary.
        (5) Bear interest at such rate as may be agreed upon by the
      mortgagor and the mortgagee.
        (6) Provide, in a manner satisfactory to the Secretary, for the
      application of the mortgagor's periodic payments (exclusive of
      the amount allocated to interest and to the premium charge which
      is required for mortgage insurance as hereinafter provided) to
      amortization of the principal of the mortgage.
        (7) Contain such terms and provisions with respect to
      insurance, repairs, alterations, payment of taxes, default,
      reserves, delinquency charges, foreclosure proceedings,
      anticipation of maturity, additional and secondary liens, and
      other matters as the Secretary may in his discretion prescribe.
        (8) Repealed. Pub. L. 100-242, title IV, Sec. 406(b)(2), Feb.
      5, 1988, 101 Stat. 1900.
        (9) Cash investment requirement. -
          (A) In general. - A mortgage insured under this section shall
        be executed by a mortgagor who shall have paid, in cash or its
        equivalent, on account of the property an amount equal to not
        less than 3.5 percent of the appraised value of the property or
        such larger amount as the Secretary may determine.
          (B) Family members. - For purposes of this paragraph, the
        Secretary shall consider as cash or its equivalent any amounts
        borrowed from a family member (as such term is defined in
        section 1707 of this title), subject only to the requirements
        that, in any case in which the repayment of such borrowed
        amounts is secured by a lien against the property, that -
            (i) such lien shall be subordinate to the mortgage; and
            (ii) the sum of the principal obligation of the mortgage
          and the obligation secured by such lien may not exceed 100
          percent of the appraised value of the property plus any
          initial service charges, appraisal, inspection, and other
          fees in connection with the mortgage.
          (C) Prohibited sources. - In no case shall the funds required
        by subparagraph (A) consist, in whole or in part, of funds
        provided by any of the following parties before, during, or
        after closing of the property sale:
            (i) The seller or any other person or entity that
          financially benefits from the transaction.
            (ii) Any third party or entity that is reimbursed, directly
          or indirectly, by any of the parties described in clause (i).
        This subparagraph shall apply only to mortgages for which the
        mortgagee has issued credit approval for the borrower on or
        after October 1, 2008.
    (c) Premium charges
      (1) The Secretary is authorized to fix premium charges for the
    insurance of mortgages under the separate sections of this
    subchapter but in the case of any mortgage such charge shall be not
    less than an amount equivalent to one-fourth of 1 per centum per
    annum nor more than an amount equivalent to 1 per centum per annum
    of the amount of the principal obligation of the mortgage
    outstanding at any time, without taking into account delinquent
    payments or prepayments: Provided, That premium charges fixed for
    insurance (1) under section 1715z-10,(!1) 1715z-12, 1715z-16, 1715z-
    17, or 1715z-18 of this title, or any other financing mechanism
    providing alternative methods for repayment of a mortgage that is
    determined by the Secretary to involve additional risk, or (2)
    under subsection (n) of this section are not required to be the
    same as the premium charges for mortgages insured under the other
    provisions of this section, but in no case shall premium charges
    under subsection (n) of this section exceed 1 per centum per annum:
    Provided, That any reduced premium charge so fixed and computed
    may, in the discretion of the Secretary, also be made applicable in
    such manner as the Secretary shall prescribe to each insured
    mortgage outstanding under the section or sections involved at the
    time the reduced premium charge is fixed. Such premium charges
    shall be payable by the mortgagee, either in cash, or in debentures
    issued by the Secretary under this subchapter at par plus accrued
    interest, in such manner as may be prescribed by the Secretary:
    Provided, That debentures presented in payment of premium charges
    shall represent obligations of the particular insurance fund or
    account to which such premium charges are to be credited: Provided
    further, That the Secretary may require the payment of one or more
    such premium charges at the time the mortgage is insured, at such
    discount rate as he may prescribe not in excess of the interest
    rate specified in the mortgage. If the Secretary finds upon the
    presentation of a mortgage for insurance and the tender of the
    initial premium charge or charges so required that the mortgage
    complies with the provisions of this section, such mortgage may be
    accepted for insurance by endorsement or otherwise as the Secretary
    may prescribe; but no mortgage shall be accepted for insurance
    under this section unless the Secretary finds that the project with
    respect to which the mortgage is executed is economically sound. In
    the event that the principal obligation of any mortgage accepted
    for insurance is paid in full prior to the maturity date, the
    Secretary is further authorized in his discretion to require the
    payment by the mortgagee of an adjusted premium charge in such
    amount as the Secretary determines to be equitable, but not in
    excess of the aggregate amount of the premium charges that the
    mortgagee would otherwise have been required to pay if the mortgage
    had continued to be insured under this section until such maturity
    date; and in the event that the principal obligation is paid in
    full as herein set forth the Secretary is authorized to refund to
    the mortgagee for the account of the mortgagor all, or such portion
    as he shall determine to be equitable, of the current unearned
    premium charges theretofore paid: Provided, That with respect to
    mortgages (1) for which the Secretary requires, at the time the
    mortgage is insured, the payment of a single premium charge to
    cover the total premium obligation for the insurance of the
    mortgage, and (2) on which the principal obligation is paid before
    the number of years on which the premium with respect to a
    particular mortgage was based, or the property is sold subject to
    the mortgage or is sold and the mortgage is assumed prior to such
    time, the Secretary shall provide for refunds, where appropriate,
    of a portion of the premium paid and shall provide for appropriate
    allocation of the premium cost among the mortgagors over the term
    of the mortgage, in accordance with procedures established by the
    Secretary which take into account sound financial and actuarial
    considerations.
      (2) Notwithstanding any other provision of this section, each
    mortgage secured by a 1- to 4-family dwelling that is an obligation
    of the Mutual Mortgage Insurance Fund shall be subject to the
    following requirements:
        (A) The Secretary shall establish and collect, at the time of
      insurance, a single premium payment in an amount not exceeding 3
      percent of the amount of the original insured principal
      obligation of the mortgage. In the case of a mortgage for which
      the mortgagor is a first-time homebuyer who completes a program
      of counseling with respect to the responsibilities and financial
      management involved in homeownership that is approved by the
      Secretary, the premium payment under this subparagraph shall not
      exceed 2.75 percent of the amount of the original insured
      principal obligation of the mortgage. Upon payment in full of the
      principal obligation of a mortgage prior to the maturity date of
      the mortgage, the Secretary shall refund all of the unearned
      premium charges paid on the mortgage pursuant to this
      subparagraph, provided that the mortgagor refinances the unpaid
      principal obligation under this subchapter.
        (B) In addition to the premium under subparagraph (A), the
      Secretary shall establish and collect annual premium payments in
      an amount not exceeding 0.50 percent of the remaining insured
      principal balance (excluding the portion of the remaining balance
      attributable to the premium collected under subparagraph (A) and
      without taking into account delinquent payments or prepayments)
      for the following periods:
          (i) For any mortgage involving an original principal
        obligation (excluding any premium collected under subparagraph
        (A)) that is less than 90 percent of the appraised value of the
        property (as of the date the mortgage is accepted for
        insurance), for the first 11 years of the mortgage term.
          (ii) For any mortgage involving an original principal
        obligation (excluding any premium collected under subparagraph
        (A)) that is greater than or equal to 90 percent of such value,
        for the first 30 years of the mortgage term; except that
        notwithstanding the matter preceding clause (i), for any
        mortgage involving an original principal obligation (excluding
        any premium collected under subparagraph (A)) that is greater
        than 95 percent of such value, the annual premium collected
        during the 30-year period under this clause shall be in an
        amount not exceeding 0.55 percent of the remaining insured
        principal balance (excluding the portion of the remaining
        balance attributable to the premium collected under
        subparagraph (A) and without taking into account delinquent
        payments or prepayments).
    (d) Increase in maximum amount of mortgage
      (1) Except as provided in paragraph (2) of this subsection,
    notwithstanding (!2) provision of this subchapter governing maximum
    mortgage amounts for insuring a mortgage secured by a one- to four-
    family dwelling, the maximum amount of the mortgage determined
    under any such provision may be increased by the amount of the
    mortgage insurance premium paid at the time the mortgage is
    insured.
      (2) The maximum amount of a mortgage determined under subsection
    (b)(2)(B) of this section may not be increased as provided in
    paragraph (1).
    (e) Contract of insurance as evidence of eligibility
      Any contract of insurance heretofore or hereafter executed by the
    Secretary under this subchapter shall be conclusive evidence of the
    eligibility of the loan or mortgage for insurance, and the validity
    of any contract of insurance so executed shall be incontestable in
    the hands of an approved financial institution or approved
    mortgagee from the date of the execution of such contract, except
    for fraud or misrepresentation on the part of such approved
    financial institution or approved mortgagee.
    (f) Disclosure of other mortgage products
      (1) In general
        In conjunction with any loan insured under this section, an
      original lender shall provide to each prospective borrower a
      disclosure notice that provides a 1-page analysis of mortgage
      products offered by that lender and for which the borrower would
      qualify.
      (2) Notice
        The notice required under paragraph (1) shall include -
          (A) a generic analysis comparing the note rate (and
        associated interest payments), insurance premiums, and other
        costs and fees that would be due over the life of the loan for
        a loan insured by the Secretary under subsection (b) of this
        section with the note rates, insurance premiums (if
        applicable), and other costs and fees that would be expected to
        be due if the mortgagor obtained instead other mortgage
        products offered by the lender and for which the borrower would
        qualify with a similar loan-to-value ratio in connection with a
        conventional mortgage (as that term is used in section
        1454(a)(2) of this title or section 1717(b)(2) of this title,
        as applicable), assuming prevailing interest rates; and
          (B) a statement regarding when the requirement of the
        mortgagor to pay the mortgage insurance premiums for a mortgage
        insured under this section would terminate, or a statement that
        the requirement shall terminate only if the mortgage is
        refinanced, paid off, or otherwise terminated.
    (g) Limitation on use of single family mortgage insurance by
      investors
      (1) The Secretary may insure a mortgage under this subchapter
    that is secured by a 1- to 4-family dwelling, or approve a
    substitute mortgagor with respect to any such mortgage, only if the
    mortgagor is to occupy the dwelling as his or her principal
    residence or as a secondary residence, as determined by the
    Secretary. In making this determination with respect to the
    occupancy of secondary residences, the Secretary may not insure
    mortgages with respect to such residences unless the Secretary
    determines that it is necessary to avoid undue hardship to the
    mortgagor. In no event may a secondary residence under this
    subsection include a vacation home, as determined by the Secretary.
      (2) The occupancy requirement established in paragraph (1) shall
    not apply to any mortgagor (or co-mortgagor, as appropriate) that
    is -
        (A) a public entity, as provided in section 1715d or 1715z-12
      of this title, or any other State or local government or an
      agency thereof;
        (B) a private nonprofit or public entity, as provided in
      section 1715l(h) or 1715z(j) of this title, or other private
      nonprofit organization that is exempt from taxation under section
      501(c)(3) of title 26 and intends to sell or lease the mortgaged
      property to low or moderate-income persons, as determined by the
      Secretary;
        (C) an Indian tribe, as provided in section 1715z-13 of this
      title;
        (D) a serviceperson who is unable to meet such requirement
      because of his or her duty assignment, as provided in section
      1715g of this title or subsection (b)(4) or (f) of section 1715m
      (!1) of this title;
        (E) a mortgagor or co-mortgagor under subsection (k) of this
      section; or
        (F) a mortgagor that, pursuant to section 1715n(a)(7) of this
      title, is refinancing an existing mortgage insured under this
      chapter for not more than the outstanding balance of the existing
      mortgage, if the amount of the monthly payment due under the
      refinancing mortgage is less than the amount due under the
      existing mortgage for the month in which the refinancing mortgage
      is executed.
      (3) For purposes of this subsection, the term "substitute
    mortgagor" means a person who, upon the release by a mortgagee of a
    previous mortgagor from personal liability on the mortgage note,
    assumes such liability and agrees to pay the mortgage debt.
    (h) Disaster housing
      Notwithstanding any other provision of this section, the
    Secretary is authorized to insure any mortgage which involves a
    principal obligation not in excess of the applicable maximum dollar
    limit under subsection (b) of this section and not in excess of 100
    per centum of the appraised value of a property upon which there is
    located a dwelling designed principally for a single-family
    residence, where the mortgagor establishes (to the satisfaction of
    the Secretary) that his home which he occupied as an owner or as a
    tenant was destroyed or damaged to such an extent that
    reconstruction is required as a result of a flood, fire, hurricane,
    earthquake, storm, or other catastrophe which the President,
    pursuant to sections 5122(2) and 5170 of title 42, has determined
    to be a major disaster.
    (i) Repealed. Pub. L. 110-289, div. B, title I, Sec. 2120(a)(1),
      July 30, 2008, 122 Stat. 2835
    (j) Real estate loans by national banks
      Loans secured by mortgages insured under this section shall not
    be taken into account in determining the amount of real estate
    loans which a national bank may make in relation to its capital and
    surplus or its time and savings deposits.
    (k) Rehabilitation of one- to four-family structures; definitions;
      eligibility; refinancing and extension; General Insurance Fund
      (1) The Secretary may, in order to assist in the rehabilitation
    of one- to four-family structures used primarily for residential
    purposes, insure and make commitments to insure rehabilitation
    loans (including advances made during rehabilitation) made by
    financial institutions. Such commitments to insure and such
    insurance shall be made upon such terms and conditions which the
    Secretary may prescribe and which are consistent with the
    provisions of subsections (b), (c), (e), (i),(!1) and (j) of this
    section, except as modified by the provisions of this subsection.
      (2) For the purpose of this subsection -
        (A) the term "rehabilitation loan" means a loan, advance of
      credit, or purchase of an obligation representing a loan or
      advance of credit, made for the purpose of financing -
          (i) the rehabilitation of an existing one- to four-unit
        structure which will be used primarily for residential
        purposes;
          (ii) the rehabilitation of such a structure and the
        refinancing of the outstanding indebtedness on such structure
        and the real property on which the structure is located; or
          (iii) the rehabilitation of such a structure and the purchase
        of the structure and the real property on which it is located;
        and
        (B) the term "rehabilitation" means the improvement (including
      improvements designed to meet cost-effective energy conservation
      standards prescribed by the Secretary) or repair of a structure,
      or facilities in connection with a structure, and may include the
      provision of such sanitary or other facilities as are required by
      applicable codes, a community development plan, or a statewide
      property insurance plan to be provided by the owner or tenant of
      the project. The term "rehabilitation" may also include measures
      to evaluate and reduce lead-based paint hazards, as such terms
      are defined in section 4851b of title 42.
      (3) To be eligible for insurance under this subsection, a
    rehabilitation loan shall -
        (A) involve a principal obligation (including such initial
      service charges, appraisal, inspection, and other fees as the
      Secretary shall approve) in an amount which does not exceed, when
      added to any outstanding indebtedness of the borrower which is
      secured by the structure and the property on which it is located,
      the amount specified in subsection (b)(2) of this section; except
      that, in determining the amount of the principal obligation for
      purposes of this subsection, the Secretary shall establish as the
      appraised value of the property an amount not to exceed the sum
      of the estimated cost of rehabilitation and the Secretary's
      estimate of the value of the property before rehabilitation;
        (B) bear interest at such rate as may be agreed upon by the
      borrower and the financial institution;
        (C) be an acceptable risk, as determined by the Secretary; and
        (D) comply with such other terms, conditions, and restrictions
      as the Secretary may prescribe.
      (4) Any rehabilitation loan insured under this subsection may be
    refinanced and extended in accordance with such terms and
    conditions as the Secretary may prescribe, but in no event for an
    additional amount or term which exceeds the maximum provided for in
    this subsection.
      (5) All funds received and all disbursements made pursuant to the
    authority established by this subsection shall be credited or
    charged, as appropriate, to the Mutual Mortgage Insurance Fund, and
    insurance benefits shall be paid in cash out of such Fund or in
    debentures executed in the name of such Fund. Insurance benefits
    paid with respect to loans secured by a first mortgage and insured
    under this subsection shall be paid in accordance with section 1710
    of this title. Insurance benefits paid with respect to loans
    secured by a mortgage other than a first mortgage and insured under
    this subsection shall be paid in accordance with paragraphs (6) and
    (7) of section 1715k(h) of this title, except that reference to
    "this subsection" in such paragraphs shall be construed as
    referring to this subsection.
    (l) Repealed. Pub. L. 90-448, title I, Sec. 103(b), Aug. 1, 1968,
      82 Stat. 486
    (m) Repealed. Pub. L. 100-242, title IV, Sec. 406(c), Feb. 5, 1988,
      101 Stat. 1902
    (n) Cooperative housing projects; definitions
      (1) The Secretary is authorized to insure under this section any
    mortgage meeting the requirements of subsection (b) of this
    section, except as modified by this subsection. To be eligible, the
    mortgage shall involve a dwelling unit in a cooperative housing
    project which is covered by a blanket mortgage insured under this
    chapter or the construction of which was completed more than a year
    prior to the application for the mortgage insurance. The mortgage
    amount as determined under the other provisions of subsection (b)
    of this section shall be reduced by an amount equal to the portion
    of the unpaid balance of the blanket mortgage covering the project
    which is attributable (as of the date the mortgage is accepted for
    insurance) to such unit.
      (2) For the purposes of this subsection -
        (A) The terms "home mortgage" and "mortgage" include a first or
      subordinate mortgage or lien given (in accordance with the laws
      of the State where the property is located and accompanied by
      such security and other undertakings as may be required under
      regulations of the Secretary) to secure a loan made to finance
      the purchase of stock or membership in a cooperative ownership
      housing corporation the permanent occupancy of the dwelling units
      of which is restricted to members of such corporation, where the
      purchase of such stock or membership will entitle the purchaser
      to the permanent occupancy of one of such units.
        (B) The terms "appraised value of the property", "value of the
      property", and "value" include the appraised value of a dwelling
      unit in a cooperative housing project of the type described in
      subparagraph (A) where the purchase of the stock or membership
      involved will entitle the purchaser to the permanent occupancy of
      that unit; and the term "property" includes a dwelling unit in
      such a cooperative project.
        (C) The term "mortgagor" includes a person or persons giving a
      first or subordinate mortgage or lien (of the type described in
      subparagraph (A)) to secure a loan to finance the purchase of
      stock or membership in a cooperative housing corporation.
    (o) Repealed. Pub. L. 110-289, div. B, title I, Sec. 2120(a)(2),
      July 30, 2008, 122 Stat. 2835
    (p) Repealed. Pub. L. 110-289, div. B, title I, Sec. 2120(a)(3),
      July 30, 2008, 122 Stat. 2835
    (q) Repealed. Pub. L. 110-289, div. B, title I, Sec. 2120(a)(4),
      July 30, 2008, 122 Stat. 2835
    (r) Actions to reduce losses under single family mortgage insurance
      program
      The Secretary shall take appropriate actions to reduce losses
    under the single-family mortgage insurance programs carried out
    under this subchapter. Such actions shall include -
        (1) an annual review by the Secretary of the rate of early
      serious defaults and claims, in accordance with section 1735f-11
      of this title;
        (2) requiring that at least one person acquiring ownership of a
      one- to four-family residential property encumbered by a mortgage
      insured under this subchapter be determined to be creditworthy
      under standards prescribed by the Secretary, whether or not such
      person assumes personal liability under the mortgage (except that
      acquisitions by devise or descent shall not be subject to this
      requirement);
        (3) in any case where personal liability under a mortgage is
      assumed, requiring that the original mortgagor be advised of the
      procedures by which he or she may be released from liability; and
        (4) providing counseling, either directly or through third
      parties, to delinquent mortgagors whose mortgages are insured
      under this section, using the Fund to pay for such counseling.
    In any case where the homeowner does not request a release from
    liability, the purchaser and the homeowner shall have joint and
    several liability for any default for a period of 5 years following
    the date of the assumption. After the close of such 5-year period,
    only the purchaser shall be liable for any default on the mortgage
    unless the mortgage is in default at the time of the expiration of
    the 5-year period.
    (s) Transferred
    (t) Disclosure regarding interest due upon mortgage prepayment
      (1) Each mortgagee (or servicer) with respect to a mortgage under
    this section shall provide each mortgagor of such mortgagee (or
    servicer) written notice, not less than annually, containing a
    statement of the amount outstanding for prepayment of the principal
    amount of the mortgage and describing any requirements the
    mortgagor must fulfill to prevent the accrual of any interest on
    such principal amount after the date of any prepayment. This
    paragraph shall apply to any insured mortgage outstanding on or
    after the expiration of the 90-day period beginning on the date of
    effectiveness of final regulations implementing this paragraph.
      (2) Each mortgagee (or servicer) with respect to a mortgage under
    this section shall, at or before closing with respect to any such
    mortgage, provide the mortgagor with written notice (in such form
    as the Secretary shall prescribe, by regulation, before the
    expiration of the 90-day period beginning upon November 28, 1990)
    describing any requirements the mortgagor must fulfill upon
    prepayment of the principal amount of the mortgage to prevent the
    accrual of any interest on the principal amount after the date of
    such prepayment. This paragraph shall apply to any mortgage
    executed after the expiration of the period under paragraph (1).
    (u) Accountability of mortgage lenders
      (1) No mortgagee may make or hold mortgages insured under this
    section if the customary lending practices of the mortgagee, as
    determined by the Secretary pursuant to section 1735f-17 of this
    title, provide for a variation in mortgage charge rates that
    exceeds 2 percent for insured mortgages made by the mortgagee on
    dwellings located within an area. The Secretary shall ensure that
    any permissible variations in the mortgage charge rates of any
    mortgagee are based only on actual variations in fees or costs to
    the mortgagee to make the loan.
      (2) For purposes of this subsection -
        (A) the term "area" means a metropolitan statistical area as
      established by the Office of Management and Budget;
        (B) the term "mortgage charges" includes the interest rate,
      discount points, loan origination fee, and any other amount
      charged to a mortgagor with respect to an insured mortgage; and
        (C) the term "mortgage charge rate" means the amount of
      mortgage charges for an insured mortgage expressed as a
      percentage of the initial principal amount of the mortgage.
    (v) Use of FHA insurance with assistance under 42 U.S.C. 1437f
      The insurance of a mortgage under this section in connection with
    the assistance provided under section 1437f(y) of title 42 shall be
    the obligation of the Mutual Mortgage Insurance Fund.
    (w) Annual report
      The Secretary of Housing and Urban Development shall submit to
    the Congress an annual report on the single family mortgage
    insurance program under this section. Each report shall set forth -
        (1) an analysis of the income groups served by the single
      family insurance program, including -
          (A) the percentage of borrowers whose incomes do not exceed
        100 percent of the median income for the area;
          (B) the percentage of borrowers whose incomes do not exceed
        80 percent of the median income for the area; and
          (C) the percentage of borrowers whose incomes do not exceed
        60 percent of the median income for the area;
        (2) an analysis of the percentage of minority borrowers
      annually assisted by the program; the percentage of central city
      borrowers assisted and the percentage of rural borrowers assisted
      by the program;
        (3) the extent to which the Secretary in carrying out the
      program has employed methods to ensure that needs of low and
      moderate income families, underserved areas, and historically
      disadvantaged groups are served by the program; and
        (4) the current impediments to having the program serve low and
      moderate income borrowers; borrowers from central city areas;
      borrowers from rural areas; and minority borrowers.
    The report required under this subsection shall include the report
    required under section 1735f-18(c) of this title and the report
    required under section 1711(g) (!1) of this title.
    (x) Management deficiencies report
      (1) In general
        Not later than 60 days after October 21, 1998, and annually
      thereafter, the Secretary shall submit to Congress a report on
      the plan of the Secretary to address each material weakness,
      reportable condition, and noncompliance with an applicable law or
      regulation (as defined by the Director of the Office of
      Management and Budget) identified in the most recent audited
      financial statement of the Federal Housing Administration
      submitted under section 3515 of title 31.
      (2) Contents of annual report
        Each report submitted under paragraph (1) shall include -
          (A) an estimate of the resources, including staff,
        information systems, and contract assistance, required to
        address each material weakness, reportable condition, and
        noncompliance with an applicable law or regulation described in
        paragraph (1), and the costs associated with those resources;
          (B) an estimated timetable for addressing each material
        weakness, reportable condition, and noncompliance with an
        applicable law or regulation described in paragraph (1); and
          (C) the progress of the Secretary in implementing the plan of
        the Secretary included in the report submitted under paragraph
        (1) for the preceding year, except that this subparagraph does
        not apply to the initial report submitted under paragraph (1).

SOURCE

    (June 27, 1934, ch. 847, title II, Sec. 203, 48 Stat. 1248; May 28,
    1935, ch. 150, Sec. 29(a), 49 Stat. 299; Aug. 23, 1935, ch. 614,
    title III, Sec. 344(c), 49 Stat. 722; Feb. 3, 1938, ch. 13, Sec. 3,
    52 Stat. 10; June 3, 1939, ch. 175, Secs. 6-8, 53 Stat. 805, 806;
    June 28, 1941, ch. 261, Sec. 8, 55 Stat. 365; Oct. 15, 1943, ch.
    259, Sec. 2, 57 Stat. 571; July 1, 1946, ch. 531, 60 Stat. 408;
    Aug. 10, 1948, ch. 832, title I, Sec. 101(g)-(k), 62 Stat. 1272;
    July 15, 1949, ch. 338, title II, Sec. 201(2), 63 Stat. 421; Aug.
    30, 1949, ch. 524, 63 Stat. 681; Oct. 25, 1949, ch. 729, Sec. 1(2),
    63 Stat. 905; Apr. 20, 1950, ch. 94, title I, Secs. 103, 104(a),
    122, 64 Stat. 51, 59; June 30, 1953, ch. 170, Sec. 3, 67 Stat. 121;
    Aug. 2, 1954, ch. 649, title I, Secs. 104-110, 68 Stat. 591, 592;
    Aug. 7, 1956, ch. 1029, title I, Secs. 102, 104(a), 70 Stat. 1091,
    1092; Pub. L. 85-104, title I, Secs. 101, 106, July 12, 1957, 71
    Stat. 294, 297; Pub. L. 85-364, Sec. 1(a), Apr. 1, 1958, 72 Stat.
    73; Pub. L. 86-372, title I, Secs. 102, 103, title VIII, Sec. 809,
    Sept. 23, 1959, 73 Stat. 654, 688; Pub. L. 87-70, title I, Sec.
    102(b), title VI, Secs. 604(b), 605, 606, 612(a), June 30, 1961, 75
    Stat. 157, 177, 178, 180; Pub. L. 88-560, title I, Secs. 102, 103,
    105(c)(1), Sept. 2, 1964, 78 Stat. 769, 772; Pub. L. 89-117, title
    II, Secs. 203-206, title XI, Sec. 1108(c), Aug. 10, 1965, 79 Stat.
    466, 504; Pub. L. 89-754, title III, Secs. 301, 302, Nov. 3, 1966,
    80 Stat. 1266; Pub. L. 90-19, Sec. 1(a)(3), (4), May 25, 1967, 81
    Stat. 17; Pub. L. 90-448, title I, Sec. 103(b), title III, Secs.
    317, 318, title XI, Sec. 1106(d), Aug. 1, 1968, 82 Stat. 486, 512,
    567; Pub. L. 91-152, title I, Secs. 102(a), 113(a), Dec. 24, 1969,
    83 Stat. 379, 383; Pub. L. 91-606, title III, Sec. 301(c), Dec. 31,
    1970, 84 Stat. 1758; Pub. L. 93-288, title VII, Sec. 702(c),
    formerly title VI, Sec. 602(c), May 22, 1974, 88 Stat. 163,
    renumbered title VII, Sec. 702(c), Pub. L. 103-337, div. C, title
    XXXIV, Sec. 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; Pub. L.
    93-383, title III, Secs. 302(a), 310(a), Aug. 22, 1974, 88 Stat.
    676, 682; Pub. L. 93-449, Sec. 4(b), Oct. 18, 1974, 88 Stat. 1367;
    Pub. L. 95-128, title III, Secs. 303(a), (g), 304(a), 305, 307,
    Oct. 12, 1977, 91 Stat. 1132, 1133, 1134; Pub. L. 95-557, title I,
    Sec. 101(c)(1), (2), Oct. 31, 1978, 92 Stat. 2082, 2083; Pub. L. 95-
    619, title II, Sec. 248(a), Nov. 9, 1978, 92 Stat. 3235; Pub. L.
    96-153, title III, Secs. 310, 312(a), 318, Dec. 21, 1979, 93 Stat.
    1114, 1116, 1119; Pub. L. 96-399, title III, Secs. 321, 328,
    333(a), 336(a), Oct. 8, 1980, 94 Stat. 1646, 1651, 1653, 1654; Pub.
    L. 97-253, title II, Sec. 201(a), (b), Sept. 8, 1982, 96 Stat. 789;
    Pub. L. 98-63, title I, Sec. 101, July 30, 1983, 97 Stat. 321; Pub.
    L. 98-181, title IV, Secs. 404(b)(2), (3), 419, 423(a), (b)(1),
    424(a), 425, 447, Nov. 30, 1983, 97 Stat. 1209, 1212, 1216-1218,
    1228; Pub. L. 98-479, title II, Sec. 204(a)(2), Oct. 17, 1984, 98
    Stat. 2232; Pub. L. 99-601, Nov. 5, 1986, 100 Stat. 3357; Pub. L.
    100-242, title IV, Secs. 403-405(1), 406(a)-(b)(6), (c), 407(a)(1),
    422(b), 423, 429(c), Feb. 5, 1988, 101 Stat. 1899-1902, 1914, 1918;
    Pub. L. 100-628, title X, Secs. 1061-1063(a), Nov. 7, 1988, 102
    Stat. 3274; Pub. L. 100-707, title I, Sec. 109(e)(2), Nov. 23,
    1988, 102 Stat. 4708; Pub. L. 101-144, title II, Nov. 9, 1989, 103
    Stat. 852; Pub. L. 101-235, title I, Secs. 132(a), 135, 143(a),
    (b), Dec. 15, 1989, 103 Stat. 2026, 2028, 2036; Pub. L. 101-402,
    Sec. 3, Oct. 1, 1990, 104 Stat. 866; Pub. L. 101-507, title II,
    Nov. 5, 1990, 104 Stat. 1369; Pub. L. 101-508, title II, Secs. 2101-
    2103(a), Nov. 5, 1990, 104 Stat. 1388-17; Pub. L. 101-625, title
    III, Secs. 326(a), 327, 329, 330(a), title IV, Sec. 429, Nov. 28,
    1990, 104 Stat. 4137, 4138, 4171; Pub. L. 102-40, title IV, Sec.
    402(d)(2), May 7, 1991, 105 Stat. 239; Pub. L. 102-389, title II,
    Oct. 6, 1992, 106 Stat. 1591, 1593; Pub. L. 102-550, title I, Sec.
    185(c)(1), title V, Secs. 503(a), 504-506(a), 507(a), title X, Sec.
    1012(k)(2), Oct. 28, 1992, 106 Stat. 3747, 3779-3782, 3907; Pub. L.
    103-211, title I, Feb. 12, 1994, 108 Stat. 12; Pub. L. 103-327,
    title II, Sept. 28, 1994, 108 Stat. 2314; Pub. L. 104-204, title
    IV, Secs. 424, 425(a), 426, Sept. 26, 1996, 110 Stat. 2927, 2928;
    Pub. L. 105-65, title II, Sec. 211, Oct. 27, 1997, 111 Stat. 1366;
    Pub. L. 105-276, title II, Secs. 212, 224, 225(a), 228, Oct. 21,
    1998, 112 Stat. 2486, 2489-2491; Pub. L. 106-74, title II, Sec.
    207, Oct. 20, 1999, 113 Stat. 1072; Pub. L. 106-281, Sec. 2, Oct.
    6, 2000, 114 Stat. 865; Pub. L. 106-377, Sec. 1(a)(1) [title II,
    Secs. 209(a), 225], Oct. 27, 2000, 114 Stat. 1441, 1441A-25, 1441A-
    30; Pub. L. 106-569, title XI, Sec. 1103(f), Dec. 27, 2000, 114
    Stat. 3031; Pub. L. 107-73, title II, Sec. 207(a), Nov. 26, 2001,
    115 Stat. 674; Pub. L. 107-326, Sec. 2, Dec. 4, 2002, 116 Stat.
    2792; Pub. L. 108-386, Sec. 8(b), Oct. 30, 2004, 118 Stat. 2231;
    Pub. L. 108-447, div. I, title II, Secs. 222, 223, Dec. 8, 2004,
    118 Stat. 3321; Pub. L. 109-13, div. A, title VI, Sec. 6073, May
    11, 2005, 119 Stat. 300; Pub. L. 110-289, div. B, title I, Secs.
    2112(a), (b), 2113-2115, 2116(2), (3), 2118(b)(1), 2120(a)(1)-(4),
    (b), 2121, July 30, 2008, 122 Stat. 2830-2832, 2834, 2835.)

REFERENCES IN TEXT

      Section 1715z-10 of this title, referred to in subsec. (c)(1),
    was repealed by Pub. L. 110-289, div. B, title I, Sec. 2120(a)(7),
    July 30, 2008, 122 Stat. 2835.
      Section 1715m of this title, referred to in subsec. (g)(2)(D),
    was repealed by Pub. L. 110-289, div. B, title I, Sec. 2120(a)(5),
    July 30, 2008, 122 Stat. 2835.
      Subsection (i) of this section, referred to in subsec. (l), was
    repealed by Pub. L. 110-289, div. B, title I, Sec. 2120(a)(1), July
    30, 2008, 122 Stat. 2835.
      Section 1711(g) of this title, referred to in subsec. (w), was
    repealed by Pub. L. 110-289, div. B, title I, Sec. 2118(c)(1), July
    30, 2008, 122 Stat. 2835.

AMENDMENTS

      2008 - Subsec. (b)(2). Pub. L. 110-289, Sec. 2112(a)(2), which
    directed striking out second sentence in matter following subpar.
    (B) and all that followed through "section 3103A(d) of title 38",
    was executed in first undesignated par. after subpar. (B) by
    striking out "For purposes of this paragraph, the term 'average
    closing cost' means, with respect to a State, the average, for
    mortgages executed for properties that are located within the
    State, of the total amounts (as determined by the Secretary) of
    initial service charges, appraisal, inspection, and other fees (as
    the Secretary shall approve) that are paid in connection with such
    mortgages. Notwithstanding any other provision of this section, in
    any case where the dwelling is not approved for mortgage insurance
    prior to the beginning of construction, such mortgage shall not
    exceed 90 per centum of the entire appraised value of the property
    as of the date the mortgage is accepted for insurance, unless (i)
    the dwelling was completed more than one year prior to the
    application for mortgage insurance, or (ii) the dwelling was
    approved for guaranty, insurance, or a direct loan under chapter 37
    of title 38 prior to the beginning of construction, or (iii) the
    dwelling is covered by a consumer protection or warranty plan
    acceptable to the Secretary and satisfies all requirements which
    would have been applicable if such dwelling had been approved for
    mortgage insurance prior to the beginning of construction. As used
    herein, the term 'veteran' means any person who served on active
    duty in the armed forces of the United States for a period of not
    less than ninety days (or is certified by the Secretary of Defense
    as having performed extra-hazardous service), and who was
    discharged or released therefrom under conditions other than
    dishonorable, except that persons enlisting in the armed forces
    after September 7, 1980, or entering active duty after October 16,
    1981, shall have their eligibility determined in accordance with
    section 5303A(d) of title 38.", to reflect the probable intent of
    Congress and amendment by Pub. L. 102-40. See 1991 Amendment note
    below.
      Subsec. (b)(2)(A), (B). Pub. L. 110-289, Sec. 2112(a)(1), added
    subpars. (A) and (B) and struck out former subpars. (A) and (B)
    which related to maximum limits for principal loan obligation.
      Subsec. (b)(9). Pub. L. 110-289, Sec. 2113, amended par. (9)
    generally. Prior to amendment, par. (9) related to requirement that
    mortgagors other than veterans pay on account of the property at
    least 3 per centum, or such larger amount as the Secretary may
    determine, of the Secretary's estimate of the cost of acquisition,
    excluding the mortgage insurance premium paid at the time the
    mortgage is insured, in cash or its equivalent.
      Subsec. (c)(2). Pub. L. 110-289, Sec. 2114(1), in introductory
    provisions, struck out "or of the General Insurance Fund pursuant
    to subsection (v) of this section and each mortgage that is insured
    under subsection (k) of this section or section 1715y(c) of this
    title,," after "Mutual Mortgage Insurance Fund".
      Subsec. (c)(2)(A). Pub. L. 110-289, Sec. 2114(2), substituted "3
    percent" for "2.25 percent" and "2.75 percent" for "2.0 percent".
      Subsec. (d). Pub. L. 110-289, Sec. 2112(b), substituted "Except
    as provided in paragraph (2) of this subsection, notwithstanding"
    for "Notwithstanding any", designated existing provisions as par.
    (1), and added par. (2).
      Subsec. (i). Pub. L. 110-289, Sec. 2120(a)(1), struck out subsec.
    (i) which related to Secretary's authority to insure mortgages for
    single-family residences in suburban and outlying areas or small
    communities and certain farm homes.
      Subsec. (k)(1). Pub. L. 110-289, Sec. 2115(1), struck out "on and
    after 180 days following October 31, 1978" after "financial
    institutions".
      Subsec. (k)(5). Pub. L. 110-289, Sec. 2115(2), substituted
    "Mutual Mortgage Insurance Fund" for "General Insurance Fund" and
    struck out ", except that all references in section 1710 of this
    title to the Mutual Mortgage Insurance Fund shall be construed as
    referring to the General Insurance Fund" after "section 1710 of
    this title".
      Subsec. (n)(2)(A), (C). Pub. L. 110-289, Sec. 2121, inserted "or
    subordinate mortgage or" before "lien".
      Subsec. (o). Pub. L. 110-289, Sec. 2120(a)(2), struck out subsec.
    (o) which related to insurance of mortgages on owner occupied homes
    in communities subject to adverse economic conditions resulting
    from Indian claims to ownership of land and obligation of Special
    Risk Insurance Fund.
      Subsec. (p). Pub. L. 110-289, Sec. 2120(a)(3), struck out subsec.
    (p) which related to insurance of mortgages in communities subject
    to temporary adverse economic conditions as a result of claims to
    ownership of land in the community by an American Indian Tribe,
    band, or nation.
      Subsec. (q). Pub. L. 110-289, Sec. 2120(a)(4), struck out subsec.
    (q) which related to insurance of mortgages secured by property on
    certain lands leased by Seneca Nation of New York Indians.
      Subsec. (s). Pub. L. 110-289, Sec. 2116(3), redesignated and
    transferred subsec. (s) of this section to subsec. (e) of section
    1708 of this title.
      Subsec. (s)(4). Pub. L. 110-289, Sec. 2116(2), added par. (4) and
    struck out former par. (4) which read as follows: "the
    Administrator of the Farmers Home Administration;".
      Subsec. (u)(2)(A). Pub. L. 110-289, Sec. 2120(b), substituted
    "means a metropolitan statistical area as established by the Office
    of Management and Budget;" for "shall have the meaning given the
    term under subsection (b)(2) of this section;".
      Subsec. (v). Pub. L. 110-289, Sec. 2118(b)(1), substituted "The"
    for "Notwithstanding section 1708 of this title, the" and "Mutual
    Mortgage Insurance Fund." for "General Insurance Fund created
    pursuant to section 1735c of this title. The provisions of
    subsections (a) through (h), (j), and (k) of section 1710 of this
    title shall apply to such mortgages, except that (1) all references
    in section 1710 of this title to the Mutual Mortgage Insurance Fund
    or the Fund shall be construed to refer to the General Insurance
    Fund, and (2) any excess amounts described in section 1710(f)(1) of
    this title shall be retained by the Secretary and credited to the
    General Insurance Fund."
      2005 - Subsec. (c)(1). Pub. L. 109-13, Sec. 6073(b)(2), struck
    out "or (k)" after "(2) under subsection (n)" and "charges under
    subsection (n)".
      Pub. L. 109-13, Sec. 6073(b)(1), substituted "(2) under
    subsection (n)" for "(2) under subsections (n)".
      Pub. L. 109-13, Sec. 6073(a), repealed Pub. L. 108-447, Sec. 222.
    See note below.
      2004-Subsec. (c)(1). Pub. L. 108-447, Sec. 222, which directed
    the substitution of "subsection (n)" for "subsections (n) and (k)"
    and the striking out of "or (k)", was repealed by Pub. L. 109-13,
    Sec. 6073(a).
      Subsec. (c)(2)(A). Pub. L. 108-447, Sec. 223, inserted ",
    provided that the mortgagor refinances the unpaid principal
    obligation under this subchapter" before period at end.
      Subsec. (s)(5). Pub. L. 108-386 struck out "or District bank"
    after "national bank".
      2002 - Subsec. (b). Pub. L. 107-326, Sec. 2(1)(A), substituted
    "shall comply with the following:" for "shall - " in introductory
    provisions.
      Subsec. (b)(2). Pub. L. 107-326, Sec. 2(1)(C), transferred text
    of subsec. (b)(10)(B) so as to appear as second sentence of
    concluding provisions in par. (2).
      Pub. L. 107-326, Sec. 2(1)(B)(ii)(III), in concluding provisions,
    struck out the eleventh sentence through the end which read as
    follows: "In conjunction with any loan insured under this section,
    an original lender shall provide to each prospective borrower a
    disclosure notice that provides a one page analysis of mortgage
    products offered by that lender and for which the borrower would
    qualify. This notice shall include: (i) a generic analysis
    comparing the note rate (and associated interest payments),
    insurance premiums, and other costs and fees that would be due over
    the life of the loan for a loan insured by the Secretary under this
    subsection with the note rates, insurance premiums (if applicable),
    and other costs and fees that would be expected to be due if the
    mortgagor obtained instead other mortgage products offered by the
    lender and for which the borrower would qualify with a similar loan-
    to-value ratio in connection with a conventional mortgage (as that
    term is used in section 1454(a)(2) of this title or section
    1717(b)(2) of this title, as applicable), assuming prevailing
    interest rates; and (ii) a statement regarding when the mortgagor's
    requirement to pay the mortgage insurance premiums for a mortgage
    insured under this section would terminate or a statement that the
    requirement will terminate only if the mortgage is refinanced, paid
    off, or otherwise terminated."
      Pub. L. 107-326, Sec. 2(1)(B)(ii)(II), in concluding provisions,
    struck out seventh through ninth sentences which read as follows:
    "Except with respect to mortgages executed by mortgagors who are
    veterans, a mortgage may not involve a principal obligation
    (including such initial service charges, appraisal, inspection, and
    other fees as the Secretary shall approve) in excess of 98.75
    percent of the appraised value of the property (97.75 percent, in
    the case of a mortgage with an appraised value in excess of
    $50,000), plus the amount of the mortgage insurance premium paid at
    the time the mortgage is insured. For purposes of the preceding
    sentence, the term 'appraised value' means the amount set forth in
    the written statement required under section 1715q of this title,
    or a similar amount determined by the Secretary if section 1715q of
    this title does not apply. Notwithstanding the authority of the
    Secretary to establish the terms of insurance under this section
    and approve the initial service charges, appraisal, inspection, and
    other fees (and subject to any other limitations under this section
    on the amount of a principal obligation), the Secretary may not (by
    regulation or otherwise) limit the percentage or amount of any such
    approved charges and fees that may be included in the principal
    obligation of a mortgage."
      Pub. L. 107-326, Sec. 2(1)(B)(ii)(I), in concluding provisions,
    struck out second and third sentences which read as follows: "If
    the mortgage to be insured under this section covers property on
    which there is located a one- to four-family residence, and the
    appraised value of the property, as of the date the mortgage is
    accepted for insurance, does not exceed $50,000, the principal
    obligation may be in an amount not to exceed 97 percent of such
    appraised value. If the mortgagor is a veteran, and the mortgage to
    be insured under this section covers property upon which there is
    located a dwelling designed principally for a one-family residence,
    the principal obligation may be in an amount equal to the sum of
    (i) 100 per centum of $25,000 of the appraised value of the
    property as of the date the mortgage is accepted for insurance, and
    (ii) 95 per centum of such value in excess of $25,000."
      Subsec. (b)(2)(A). Pub. L. 107-326, Sec. 2(1)(B)(i), realigned
    margins of matter that precedes cl. (ii).
      Subsec. (b)(2)(B). Pub. L. 107-326, Sec. 2(1)(B)(iii), added
    subpar. (B) and struck out former subpar. (B) which read as
    follows: "except as otherwise provided in this paragraph (2), not
    to exceed an amount equal to the sum of -
        "(i) 97 percent of $25,000 of the appraised value of the
      property, as of the date the mortgage is accepted for insurance;
        "(ii) 95 percent of such value in excess of $25,000 but not in
      excess of $125,000; and
        "(iii) 90 percent of such value in excess of $125,000."
      Subsec. (b)(10). Pub. L. 107-326, Sec. 2(1)(C), (D), transferred
    text of subpar. (B) so as to appear as second sentence of
    concluding provisions in subsec. (b)(2) and struck out headings and
    text of remainder of par. (10) which related to calculation of
    downpayment.
      Subsec. (f). Pub. L. 107-326, Sec. 2(2), added subsec. (f).
      2001 - Subsec. (c)(1). Pub. L. 107-73, Sec. 207(a)(1),
    substituted "subsections (n) or (k) of this section" for
    "subsections (n) and (k) of this section" in cl. (2) of first
    proviso.
      Subsec. (c)(2). Pub. L. 107-73, Sec. 207(a)(2), in introductory
    provisions, struck out "and executed on or after October 1, 1994,"
    after "1- to 4-family dwelling" and inserted "and each mortgage
    that is insured under subsection (k) of this section or section
    1715y(c) of this title," after "subsection (v) of this section".
      2000 - Subsec. (b)(10)(A). Pub. L. 106-377, Sec. 1(a)(1) [title
    II, Sec. 225], substituted "mortgage closed on or before December
    31, 2002, involving" for "mortgage closed on or before October 30,
    2000 involving" in introductory provisions.
      Pub. L. 106-281 substituted "closed on or before October 30,
    2000" for "executed for insurance in fiscal years 1998, 1999, and
    2000" in introductory provisions.
      Subsec. (s). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    209(a)(2)], redesignated subsec. (s), relating to disclosure
    regarding interest due upon mortgage prepayment, as (t).
      Subsec. (t). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    209(a)(2)], redesignated subsec. (s), relating to disclosure
    regarding interest due upon mortgage prepayment, as (t).
      Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 209(a)(1)],
    redesignated subsec. (t) as (u).
      Subsec. (u). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    209(a)(1)], redesignated subsec. (t) as (u).
      Subsec. (v). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec.
    209(a)(3)], redesignated subsec. (v), relating to annual report, as
    (w).
      Subsec. (w). Pub. L. 106-569, which directed the amendment of
    subsec. (v) relating to annual report by inserting concluding
    provisions, was executed by making the insertion in subsec. (w) to
    reflect the probable intent of Congress and the intervening
    redesignation of that subsec. (v) as (w) by Pub. L. 106-377, Sec.
    1(a)(1) [title II, Sec. 209(a)(3)]. See below.
      Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 209(a)(3)],
    redesignated subsec. (v), relating to annual report, as (w).
      1999 - Subsec. (b)(2)(A)(ii). Pub. L. 106-74 inserted "the
    greater of the dollar amount limitation in effect under this
    section for the area on October 21, 1998, or" before "48 percent".
      1998 - Subsec. (b)(2). Pub. L. 105-276, Sec. 225(a), inserted at
    end undesignated par. relating to disclosure notice furnished by
    original lender.
      Subsec. (b)(2)(A). Pub. L. 105-276, Sec. 228(a), added cl. (ii)
    and struck out former cl. (ii) and concluding provisions which read
    as follows:
        "(ii) 75 percent of the dollar amount limitation determined
      under section 1454(a)(2) of this title for a residence of the
      applicable size;
    except that the applicable dollar amount limitation in effect for
    any area under this subparagraph may not be less than the greater
    of the dollar amount limitation in effect under this section for
    the area on September 28, 1994, or 38 percent of the dollar amount
    limitation determined under section 1454(a)(2) of this title for a
    residence of the applicable size; and".
      Subsec. (b)(2)(B). Pub. L. 105-276, Sec. 228(b), amended first
    sentence of concluding provisions generally. Prior to amendment,
    sentence read as follows: "For purposes of the preceding sentence,
    the term 'area' means a county, or a metropolitan statistical area
    as established by the Office of Management and Budget, whichever
    results in the higher dollar amount."
      Subsec. (b)(10). Pub. L. 105-276, Sec. 212(1), substituted
    "Calculation of Downpayment" for "Alaska and hawaii" in heading.
      Subsec. (b)(10)(A). Pub. L. 105-276, Sec. 212(2), substituted
    "executed for insurance in fiscal years 1998, 1999, and 2000" for
    "originated in the State of Alaska or the State of Hawaii and
    endorsed for insurance in fiscal years 1997 and 1998,".
      Subsec. (x). Pub. L. 105-276, Sec. 224, added subsec. (x).
      1997 - Subsec. (b)(10)(A). Pub. L. 105-65 substituted "fiscal
    years 1997 and 1998" for "fiscal year 1997".
      1996 - Subsec. (b)(9). Pub. L. 104-204, Sec. 425(a), inserted
    before period at end ": Provided further, That for purposes of this
    paragraph, the Secretary shall consider as cash or its equivalent
    any amounts borrowed from a family member (as such term is defined
    in section 1707 of this title), subject only to the requirements
    that, in any case in which the repayment of such borrowed amounts
    is secured by a lien against the property, such lien shall be
    subordinate to the mortgage and the sum of the principal obligation
    of the mortgage and the obligation secured by such lien may not
    exceed 100 percent of the appraised value of the property plus any
    initial service charges, appraisal, inspection, and other fees in
    connection with the mortgage".
      Subsec. (b)(10). Pub. L. 104-204, Sec. 426, added par. (10).
      Subsec. (c)(2)(A). Pub. L. 104-204, Sec. 424, inserted after
    first sentence "In the case of a mortgage for which the mortgagor
    is a first-time homebuyer who completes a program of counseling
    with respect to the responsibilities and financial management
    involved in homeownership that is approved by the Secretary, the
    premium payment under this subparagraph shall not exceed 2.0
    percent of the amount of the original insured principal obligation
    of the mortgage."
      1994 - Subsec. (b)(2)(A). Pub. L. 103-327 substituted cl. (ii)
    and concluding provisions for former cl. (ii) and concluding
    provisions which read as follows:
        "(ii) 75 percent of the dollar amount limitation determined
      under section 1454(a)(2) of this title (as in effect on September
      30, 1992) for a residence of the applicable size;
    except that the applicable dollar amount limitation in effect for
    any area under this subparagraph (A) may not be less than the
    dollar amount limitation in effect under this section for the area
    on May 12, 1992;".
      Subsec. (h). Pub. L. 103-211, effective for 18-month period
    following Feb. 12, 1994, for eligible persons, substituted "Robert
    T. Stafford Disaster Relief and Emergency Assistance Act" for
    "section 5122(2) and 5170 of title 42" and inserted at end "In any
    case in which the single family residence to be insured under this
    subsection is within a jurisdiction in which the President has
    declared a major disaster to have occurred, the Secretary is
    authorized, for a temporary period not to exceed 18 months from the
    date of such Presidential declaration, to enter into agreements to
    insure a mortgage which involves a principal obligation of up to
    100 percent of the dollar limitation determined under section
    1454(a)(2) of this title for single family residence, and not in
    excess of 100 percent of the appraised value." See Applicability of
    1994 Amendment note below.
      Subsec. (k)(6). Pub. L. 103-211, effective for 18-month period
    following Feb. 12, 1994, for eligible persons, added par. (6) which
    read as follows: "The Secretary is authorized, for a temporary
    period not to exceed 18 months from the date on which the President
    has declared a major disaster to have occurred, to enter into
    agreements to insure a rehabilitation loan under this subsection
    which involves a principal obligation of up to 100 percent of the
    dollar limitation determined under section 1454(a)(2) of this title
    for a residence of the applicable size, if such loan is secured by
    a structure and property that are within a jurisdiction in which
    the President has declared such disaster, pursuant to the Robert T.
    Stafford Disaster Relief and Emergency Assistance Act [42 U.S.C.
    5121 et seq.], and if such loan otherwise conforms to the loan-to-
    value ratio and other requirements of this subsection." See
    Applicability of 1994 Amendment note below.
      1992 - Subsec. (b)(2). Pub. L. 102-550, Sec. 506(a), added
    undesignated par. prohibiting Secretary from insuring mortgage
    executed by first-time homebuyer involving principal obligation in
    excess of 97 percent of value of property, unless mortgagor
    completes approved counseling program or Secretary waives
    requirement.
      Pub. L. 102-550, Sec. 505(a), substituted "Except with respect to
    mortgages executed by mortgagors who are veterans" for
    "Notwithstanding any other provision of this paragraph" in second
    undesignated par.
      Pub. L. 102-550, Sec. 503(a), amended first sentence generally.
    Prior to amendment, first sentence read as follows: "Involve a
    principal obligation (including such initial service charges,
    appraisal, inspection, and other fees as the Secretary shall
    approve) in an amount -
        "(A) not to exceed the lesser of -
          "(i) in the case of the 1-family residence, 95 percent of the
        median 1-family house price in the area (as determined by the
        Secretary); in the case of a 2-family residence, 107 percent of
        such median price; in the case of a 3-family residence, 130
        percent of such median price; or in the case of a 4-family
        residence, 150 percent of such median price; or
          "(ii) 75 percent of the dollar amount limitation determined
        under section 1454(a)(2) of this title (as adjusted annually
        under such section) for a residence of the applicable size;
      except that the applicable dollar amount limitation in effect for
      any area under this subparagraph (A) may not be less than the
      dollar amount limitation in effect under this section for the
      area on May 12, 1992; and
        "(B) except as otherwise provided in this paragraph (2), not to
      exceed an amount equal to the sum of -
          "(i) 97 percent of $25,000 of the appraised value of the
        property, as of the date the mortgage is accepted for
        insurance;
          "(ii) 95 percent of such value in excess of $25,000 but not
        in excess of $125,000; and
          "(iii) 90 percent of such value in excess of $125,000."
      Pub. L. 102-389 amended first sentence generally. Prior to
    amendment, first sentence read as follows: "Involve a principal
    obligation (including such initial service charges, appraisal,
    inspection, and other fees as the Secretary shall approve) in an
    amount not to exceed $67,500 in the case of property upon which
    there is located a dwelling designed principally for a one-family
    residence; or $76,000 in the case of a two-family residence; or
    $92,000 in the case of a three-family residence, or $107,000 in the
    case of a four-family residence; except that the Secretary may
    increase the preceding maximum dollar amounts on an area-by-area
    basis to the extent the Secretary deems necessary, after taking
    into consideration the extent to which moderate and middle income
    persons have limited housing opportunities in the area due to high
    prevailing housing sales prices, but in no case may such limits, as
    so increased, exceed the lesser of (A) 185 percent of the dollar
    amount specified, or (B) in the case of a one-family residence, 95
    per centum of the median one-family house price in the area, as
    determined by the Secretary; in the case of a two-family residence,
    107 per centum of such median price; in the case of a three-family
    residence, 130 per centum of such median price; or in the case of a
    four-family residence, 150 per centum of such median price; and
    (except as otherwise provided in this paragraph) not to exceed an
    amount equal to the sum of (i) 97 per centum of $25,000 of the
    appraised value of the property, as of the date the mortgage is
    accepted for insurance, and (ii) 95 per centum of such value in
    excess of $25,000."
      Pub. L. 102-389 inserted at end of second undesignated par.
    "Notwithstanding the authority of the Secretary to establish the
    terms of insurance under this section and approve the initial
    service charges, appraisal, inspection, and other fees (and subject
    to any other limitations under this section on the amount of a
    principal obligation), the Secretary may not (by regulation or
    otherwise) limit the percentage or amount of any such approved
    charges and fees that may be included in the principal obligation
    of a mortgage."
      Subsec. (b)(9). Pub. L. 102-550, Sec. 505(b), substituted
    "(except with respect to a mortgage executed by a mortgagor who is
    a veteran)" for "(except in a case to which the next to the last
    sentence of paragraph (2) applies)".
      Subsec. (c)(2). Pub. L. 102-550, Sec. 185(c)(1)(A), inserted "or
    of the General Insurance Fund pursuant to subsection (v) of this
    section" after "Fund" in introductory provisions.
      Subsec. (c)(2)(A), (B). Pub. L. 102-550, Sec. 507(a)(1), (2)(A),
    substituted "not exceeding" for "equal to".
      Subsec. (c)(2)(B)(ii). Pub. L. 102-550, Sec. 507(a)(2)(B),
    substituted "not exceeding 0.55 percent" for "equal to 0.55
    percent".
      Subsec. (k)(2)(B). Pub. L. 102-550, Sec. 1012(k)(2), inserted at
    end "The term 'rehabilitation' may also include measures to
    evaluate and reduce lead-based paint hazards, as such terms are
    defined in section 4851b of title 42."
      Subsec. (v). Pub. L. 102-550, Sec. 504, added subsec. (v)
    relating to annual reports.
      Pub. L. 102-550, Sec. 185(c)(1)(B), added subsec. (v) relating to
    use of FHA insurance with assistance under 42 U.S.C. 1437f.
      1991 - Subsec. (b)(2). Pub. L. 102-40 substituted "section
    5303A(d) of title 38" for "section 3103A(d) of title 38".
      1990 - Subsec. (b)(2). Pub. L. 101-508, Sec. 2102, inserted at
    end "Notwithstanding any other provision of this paragraph, a
    mortgage may not involve a principal obligation (including such
    initial service charges, appraisal, inspection, and other fees as
    the Secretary shall approve) in excess of 98.75 percent of the
    appraised value of the property (97.75 percent, in the case of a
    mortgage with an appraised value in excess of $50,000), plus the
    amount of the mortgage insurance premium paid at the time the
    mortgage is insured. For purposes of the preceding sentence, the
    term 'appraised value' means the amount set forth in the written
    statement required under section 1715q of this title, or a similar
    amount determined by the Secretary if section 1715q of this title
    does not apply."
      Pub. L. 101-508, Sec. 2101, substituted "185 percent of the
    dollar amount specified" for "150 percent (185 percent until
    October 31, 1990) of the dollar amount specified" after "exceed the
    lesser of (A)".
      Pub. L. 101-507 which directed the substitution of "(185 percent
    during fiscal year 1991)" for "(185 percent during fiscal year
    1990)" could not be executed because "during fiscal year 1990" did
    not appear in text after amendment by Pub. L. 101-402. See below.
      Pub. L. 101-402 substituted "until October 31, 1990" for "during
    fiscal year 1990".
      Subsec. (b)(9). Pub. L. 101-625, Sec. 429, inserted "or with
    respect to a mortgage covering a housing unit in connection with a
    homeownership program under the Homeownership and Opportunity
    Through HOPE Act," before "the mortgagor's payment".
      Subsec. (c). Pub. L. 101-508, Sec. 2103(a), designated existing
    provisions as par. (1), added par. (2), and struck out at end of
    par. (1) "In the case of any mortgage secured by a 1- to 4-family
    dwelling, the total premium charge shall not exceed an amount equal
    to 3.8 percent of the original principal obligation of the mortgage
    if the Secretary requires (1) a single premium charge to cover the
    total premium obligation of the insurance of the mortgage; or (2) a
    periodic premium charge over less than the term of the mortgage."
      Subsec. (g)(1). Pub. L. 101-625, Sec. 326(a), inserted at end "In
    making this determination with respect to the occupancy of
    secondary residences, the Secretary may not insure mortgages with
    respect to such residences unless the Secretary determines that it
    is necessary to avoid undue hardship to the mortgagor. In no event
    may a secondary residence under this subsection include a vacation
    home, as determined by the Secretary."
      Subsec. (r)(4). Pub. L. 101-625, Sec. 327, added par. (4).
      Subsec. (s). Pub. L. 101-625, Sec. 329, added subsec. (s)
    relating to disclosure regarding interest due upon mortgage
    prepayment.
      Subsec. (t). Pub. L. 101-625, Sec. 330, added subsec. (t).
      1989 - Subsec. (b)(2). Pub. L. 101-144 inserted "(185 percent
    during fiscal year 1990)" after "(A) 150 percent".
      Subsec. (g)(2). Pub. L. 101-235, Sec. 143(b), redesignated par.
    (3) as (2) and struck out former par. (2) which read as follows:
    "The occupancy requirement established in paragraph (1) shall apply
    only if the mortgage involves a principal obligation that exceeds,
    as appropriate, 75 percent of -
        "(A) the appraised value of the dwelling;
        "(B) the estimate of the Secretary of the replacement cost of
      the property;
        "(C) the sum of the estimates of the Secretary of the cost of
      repair and rehabilitation and the value of the property before
      repair and rehabilitation; or
        "(D) the sum of the estimates of the Secretary of the cost of
      repair and rehabilitation and the amount (as determined by the
      Secretary) required to refinance existing indebtedness secured by
      the property, and, in the case of a property refinanced under
      section 1715k(d)(3)(A) of this title, any existing indebtedness
      incurred in connection with improving, repairing, or
      rehabilitating the property."
      Subsec. (g)(2)(A). Pub. L. 101-235, Sec. 143(a)(1), inserted ",
    or any other State or local government or an agency thereof" before
    semicolon at end.
      Subsec. (g)(2)(B). Pub. L. 101-235, Sec. 143(a)(2), inserted ",
    or other private nonprofit organization that is exempt from
    taxation under section 501(c)(3) of title 26 and intends to sell or
    lease the mortgaged property to low or moderate-income persons, as
    determined by the Secretary" before semicolon at end.
      Subsec. (g)(3), (4). Pub. L. 101-235, Sec. 143(b)(2),
    redesignated par. (4) as (3). Former par. (3) redesignated (2).
      Subsec. (r). Pub. L. 101-235, Sec. 132(a)(1), amended first
    sentence generally, substituting "the single-family mortgage
    insurance programs carried out under this subchapter" for "the
    mortgage insurance program carried out under this section".
      Subsec. (r)(2), (3). Pub. L. 101-235, Sec. 132(a)(2), amended
    pars. (2) and (3) generally. Prior to amendment, pars. (2) and (3)
    read as follows:
      "(2) requiring reviews of the credit standing of each person
    seeking to assume a mortgage insured under this section (A) during
    the 12-month period following the date on which the mortgage is
    executed, or (B) during the 24-month period following the date on
    which the mortgage is executed in the case of an investor
    originated mortgage; and
      "(3) in any case where a mortgage is assumed after the period
    specified in paragraph (2), requiring that the original mortgagor
    be advised of the procedures by which he or she may be released
    from liability."
      Subsec. (s). Pub. L. 101-235, Sec. 135, added subsec. (s).
      1988 - Subsec. (b)(2). Pub. L. 100-628, Secs. 1061, 1062(b),
    clarified amendments by Pub. L. 100-242, Secs. 405(1),
    406(b)(1)(B).
      Pub. L. 100-242, Sec. 406(b)(1)(A), struck out "(whether or not
    such one- or two-family residence may be intended to be rented
    temporarily for school purposes)" after "in the case of a two-
    family residence" in first sentence.
      Pub. L. 100-242, Sec. 404, substituted "150 percent" for "133 1/3
     per centum" in cl. (A) of first sentence.
      Pub. L. 100-242, Sec. 423, inserted definition of "area".
      Pub. L. 100-242, Sec. 406(b)(1)(B), struck out "to be occupied as
    the principal residence of the owner" after "residence".
      Pub. L. 100-242, Sec. 405(1), which directed insertion of ",
    except that persons enlisting in the armed forces after September
    7, 1980, or entering active duty after October 16, 1981, shall have
    their eligibility determined in accordance with section 3103A(d) of
    title 38" before period at end of first undesignated paragraph, was
    executed by making the insertion after "other than dishonorable" at
    end of sentence defining "veteran", to reflect the probable intent
    of Congress.
      Subsec. (b)(8). Pub. L. 100-242, Sec. 406(b)(2), struck out par.
    (8) which related to eligibility for insurance of a mortgage in the
    case of a mortgagor who is not occupant of the property.
      Subsec. (c). Pub. L. 100-242, Sec. 403, inserted provisions at
    end relating to total premium charge to be fixed by Secretary in
    case of any mortgage secured by 1- to 4-family dwelling.
      Subsec. (g). Pub. L. 100-242, Sec. 406(a), added subsec. (g).
      Subsec. (g)(3)(F). Pub. L. 100-628, Sec. 1062(a), added subpar.
    (F).
      Subsec. (h). Pub. L. 100-707, Sec. 109(e)(2), struck out "riot or
    civil disorder" after "hurricane, earthquake, storm," and
    substituted "5170" for "5141".
      Pub. L. 100-242, Sec. 406(b)(3), struck out "is the owner and
    occupant and" after "where the mortgagor".
      Subsec. (i). Pub. L. 100-242, Sec. 406(b)(4), struck out
    "Provided, That if the mortgagor is not the occupant of the
    property at the time of insurance, the principal obligation of the
    mortgage shall not exceed 85 per centum of the appraised value of
    the property:" after "for a single-family residence:" and
    substituted "Provided, That the Secretary" for "Provided further,
    That the Secretary".
      Subsec. (k)(3)(B). Pub. L. 100-242, Sec. 429(c), substituted
    "borrower and the financial institution" for "mortgagor and the
    mortgagee".
      Subsec. (m). Pub. L. 100-242, Sec. 406(c), struck out subsec. (m)
    which related to insurance of mortgages on dwellings that need not
    be designed for year-round occupancy.
      Subsec. (o)(2). Pub. L. 100-242, Sec. 406(b)(5), substituted
    "owner" for "owner occupant" in first sentence.
      Subsec. (p)(2). Pub. L. 100-242, Sec. 406(b)(6), substituted
    "owner" for "owner-occupant" in first sentence.
      Subsec. (q)(1). Pub. L. 100-242, Sec. 422(b), substituted
    "Secretary shall" for "Secretary may".
      Subsec. (r). Pub. L. 100-242, Sec. 407(a)(1), added subsec. (r).
      Subsec. (r)(2)(A), (B). Pub. L. 100-628, Sec. 1063(a),
    substituted "date on which the mortgage is executed" for "date on
    which the mortgage is endorsed for insurance".
      1986 - Subsec. (q). Pub. L. 99-601 added subsec. (q).
      1984 - Subsec. (n)(2)(A). Pub. L. 98-479 substituted "a" for "an"
    before "cooperative ownership".
      1983 - Subsec. (b)(2). Pub. L. 98-181, Sec. 424(a), struck out
    "(except as provided in the next to the last sentence of this
    paragraph)" and inserted "(except as otherwise provided in this
    paragraph)" and inserted after first sentence "If the mortgage to
    be insured under this section covers property on which there is
    located a one- to four-family residence to be occupied as the
    principal residence of the owner, and the appraised value of the
    property, as of the date the mortgage is accepted for insurance,
    does not exceed $50,000, the principal obligation may be in an
    amount not to exceed 97 percent of such appraised value."
      Pub. L. 98-181, Sec. 423(b)(1), struck out ": Provided, That the
    foregoing maximum mortgage amounts may be increased by the amount
    of the mortgage insurance premium paid at the time the mortgage is
    insured" after "150 per centum of such median price".
      Subsec. (b)(5). Pub. L. 98-181, Sec. 404(b)(2), substituted
    provision that the interest rate be at such rate as agreed upon by
    the mortgagor and the mortgagee for provision that the interest
    rate, exclusive of premium charges for insurance and service
    charges if any, not exceed 5 per centum per annum on the amount of
    the principal obligation outstanding at any time, or not exceed
    such per centum per annum not in excess of 6 per centum as the
    Secretary finds necessary to meet the mortgage market.
      Subsec. (b)(8). Pub. L. 98-181, Sec. 425, substituted "the lesser
    of (A) the otherwise applicable maximum dollar amount prescribed
    under paragraph (2), or (B) 85 percent of the appraised value of
    the property as of the date the mortgage is accepted for insurance"
    for "85 per centum of the amount computed under the provisions of
    paragraph (2) of this subsection".
      Subsec. (c). Pub. L. 98-181, Sec. 447, inserted "(1) under
    section 1715z-10, 1715z-12, 1715z-16, 1715z-17, or 1715z-18 of this
    title, or any other financing mechanism providing alternative
    methods for repayment of a mortgage that is determined by the
    Secretary to involve additional risk, or (2)" after "fixed for
    insurance".
      Subsec. (d). Pub. L. 98-181, Sec. 423(a), added subsec. (d).
      Subsec. (h). Pub. L. 98-63 substituted "the applicable maximum
    dollar limit under subsection (b) of this section" for "$14,400".
      Subsec. (k)(3)(B). Pub. L. 98-181, Sec. 404(b)(3), substituted
    provision that interest be at such a rate as agreed upon by the
    mortgagor and mortgagee for provision that interest be at a rate
    permitted by the Secretary for mortgages insured under this
    section, except that the Secretary could permit a higher rate with
    respect to the period beginning with the making of the loan and
    ending with the completion of the rehabilitation or such earlier
    time as determined by the Secretary.
      Subsec. (n)(1). Pub. L. 98-181, Sec. 419(1), inserted "or the
    construction of which was completed more than a year prior to the
    application for the mortgage insurance" after "under this chapter".
      Subsec. (n)(2)(A). Pub. L. 98-181, Sec. 419(2), struck out
    "nonprofit" before "cooperative".
      1982 - Subsec. (b)(2). Pub. L. 97-253, Sec. 201(a)(1), inserted
    provision that the foregoing maximum mortgage amounts may be
    increased by the amount of the mortgage insurance premium paid at
    the time the mortgage is insured.
      Subsec. (b)(9). Pub. L. 97-253, Sec. 201(a)(2), inserted
    "(excluding the mortgage insurance premium paid at the time the
    mortgage is insured)" after "cost of acquisition".
      Subsec. (c). Pub. L. 97-253, Sec. 201(b), inserted provision that
    with respect to mortgages for which the Secretary requires, at the
    time the mortgage is insured, the payment of a single premium
    charge to cover the total premium obligation for the insurance of
    the mortgage, and on which the principal obligation is paid before
    the number of years on which the premium with respect to a
    particular mortgage was based, or the property is sold subject to
    the mortgage or is sold and the mortgage is assumed prior to such
    time, the Secretary shall provide for refunds, where appropriate,
    of a portion of the premium paid and shall provide for appropriate
    allocation of the premium cost among the mortgagors over the term
    of the mortgage, in accordance with procedures established by the
    Secretary which take into account sound financial and actuarial
    considerations.
      1980 - Subsec. (b)(2). Pub. L. 96-399, Sec. 336(a), inserted
    provisions authorizing the Secretary to increase maximum dollar
    amounts with respect to four-family residences.
      Subsec. (b)(3). Pub. L. 96-399, Sec. 333(a), struck out
    provisions relating to applicability to criteria of three-quarters
    of the Secretary's estimate of the remaining economic life of the
    building improvements.
      Subsec. (k)(5). Pub. L. 96-399, Sec. 321, substituted provisions
    relating to insurance benefits paid with respect to loans secured
    by a first mortgage, and insured under this subsection, and those
    secured by a mortgage other than a first mortgage, and insured
    under this subsection, for provisions relating to insurance
    benefits paid with respect to loans insured under this subsection.
      Subsec. (p). Pub. L. 96-399, Sec. 328, added subsec. (p).
      1979 - Subsec. (b)(2). Pub. L. 96-153, Secs. 310, 312(a),
    excepted dwellings covered by a consumer protection or warranty
    plan acceptable to the Secretary and satisfying all requirements
    which would have been applicable if such dwellings had been
    approved for mortgage insurance prior to the beginning of
    construction from the limit on the maximum amount of mortgage on
    dwellings not approved for mortgage insurance prior to the
    beginning of construction, and substituted "$67,500" for "$60,000",
    "$76,000" for "$65,000" where it first appeared, "$92,000" for
    "$65,000" where it appeared the second time, and "$107,000" for
    "$75,000".
      Subsec. (i). Pub. L. 96-153, Sec. 318, substituted "two and one-
    half or more acres in size adjacent to an all-weather public road"
    for "five or more acres in size adjacent to a public highway" in
    last proviso.
      1978 - Subsec. (b)(2). Pub. L. 95-619 inserted provision that the
    amount insurable under this section could be increased by up to 20
    per centum if such increase were necessary to account for the
    increased cost of a residence due to the installation of a solar
    energy system.
      Subsec. (c). Pub. L. 95-557, Sec. 101(c)(2), substituted
    "subsections (n) and (k) of this section are not required" for
    "subsection (n) of this section is not required" and "subsection
    (n) or (k) of this section exceed 1 per centum" for "subsection (n)
    of this section exceed 1 per centum".
      Subsec. (k). Pub. L. 95-557, Sec. 101(c)(1), generally revised
    subsec. (k) to meet the credit needs of owners of from one-to-four
    family properties who can afford market rate borrowing by insuring
    one hundred percent of the loan amount and covering the cost of
    rehabilitation, rehabilitation and refinancing existing debt, or
    the purchase and rehabilitation of properties.
      1977 - Subsec. (b)(2). Pub. L. 95-128, Secs. 303(a), 304(a),
    substituted "$60,000" for "$45,000", "$65,000" for "$48,750"
    wherever appearing, and "$75,000" for "$56,000" in provisions
    preceding cl. (i); struck out in cl. (i) following "97 per centum"
    parenthetical text "(but, in any case where the dwelling is not
    approved for mortgage insurance prior to the beginning of
    construction, unless the construction of the dwelling was completed
    more than one year prior to the application for mortgage insurance,
    or the dwelling was approved for guaranty, insurance, or direct
    loan under chapter 37 of title 38 prior to the beginning of
    construction, 90 per centum)"; substituted in first sentence "and
    (ii) 95 per centum of such value in excess of $25,000" for "(ii) 90
    per centum of such value in excess of $25,000 but not in excess of
    $35,000, and (iii) 80 per centum of such value in excess of
    $35,000" and in second sentence "and (ii) 95 per centum of such
    value in excess of $25,000" for "(ii) 90 per centum of such value
    in excess of $25,000 but not in excess of $35,000, and (iii) 85 per
    centum of such value in excess of $35,000"; and inserted following
    the second sentence provision limiting the mortgage to 90 per
    centum of the entire appraised value of the property as of the date
    the mortgage is accepted for insurance where the dwelling is not
    approved for mortgage insurance prior to the beginning of
    construction.
      Subsec. (c). Pub. L. 95-128, Sec. 305, inserted proviso
    respecting premium charges for insurance under subsec. (n) of this
    section.
      Subsec. (i). Pub. L. 95-128, Sec. 303(g), substituted provision
    which authorizes the Secretary to insure a mortgage hereunder which
    involves a principal obligation not in excess of 75 per centum of
    the limit on the principal obligation applicable to a one-family
    residence under subsec. (b) of this section for prior limitation of
    such insurance on a mortgage which involved a principal obligation
    not in excess of $16,200.
      Subsec. (o). Pub. L. 95-128, Sec. 307, added subsec. (o).
      1974 - Subsec. (b)(2). Pub. L. 93-383, Sec. 302(a), substituted
    "$45,000" for "$33,000", "$48,750" for "$35,750" wherever appearing
    therein, and "$56,000" for "$41,250" in provisions preceding cl.
    (i).
      Subsec. (b)(2)(i). Pub. L. 93-383, Sec. 310(a)(1), substituted
    "$25,000" for "$15,000" in first and second sentences.
      Subsec. (b)(2)(ii). Pub. L. 93-383, Sec. 310(a)(2), substituted
    "$25,000" for "$15,000" and "$35,000" for "$25,000" in first and
    second sentences.
      Subsec. (b)(2)(iii). Pub. L. 93-383, Sec. 310(a)(3), substituted
    "$35,000" for "$25,000" in first and second sentences.
      Subsec. (h). Pub. L. 93-288 substituted "sections 5122(2) and
    5141 of title 42" for "section 4402(1) of title 42".
      Subsec. (n). Pub. L. 93-449 added subsec. (n).
      1970 - Subsec. (h). Pub. L. 91-606 substituted reference to
    section "4402(1)" for "1855a(a)" of title 42.
      1969 - Subsec. (b)(2). Pub. L. 91-152, Secs. 102(a), 113(a)(1),
    substituted "$25,000" for "$20,000" wherever appearing, "$33,000"
    for "$30,000", "$35,750" for "$32,500" wherever appearing, and
    "$41,250" for "$37,500".
      Subsec. (h). Pub. L. 91-152, Sec. 113(a)(2), substituted
    "$14,400" for "$12,000".
      Subsec. (i). Pub. L. 91-152, Sec. 113(a)(3), substituted
    "$16,200" for "$13,500".
      Subsec. (m). Pub. L. 91-152, Sec. 113(a)(4), substituted
    "$18,000" for "$15,000".
      1968 - Subsec. (h). Pub. L. 90-448, Sec. 1106(d), authorized
    insurance of mortgages for reconstruction of homes destroyed or
    damaged as a result of riot or civil disorder.
      Subsec. (i). Pub. L. 90-448, Sec. 317, substituted "$13,500" for
    "$12,500".
      Subsec. (l). Pub. L. 90-448, Sec. 103(b), repealed subsec. (l)
    which authorized insurance of mortgages in areas affected by civil
    disorders. See section 1715n(e) of this title.
      Subsec. (m). Pub. L. 90-448, Sec. 318, added subsec. (m).
      1967 - Pub. L. 90 - 19, Sec. 1(a)(3), substituted "Secretary" for
    "Commissioner" wherever appearing in subsecs. (a), (b)(1) to (9),
    (c), (e), (h), (i), and (k).
      Subsec. (b)(3), (9). Pub. L. 90 - 19, Sec. 1(a)(4), substituted
    "Secretary's" for "Commissioner's".
      1966 - Subsec. (b)(2). Pub. L. 89-754, Sec. 301, substituted "If
    the mortgagor is a veteran," for "If the mortgagor is a veteran who
    has not received any direct, guaranteed, or insured loan under laws
    administered by the Veterans' Administration for the purchase,
    construction, or repair of a dwelling (including a farm dwelling)
    which was to be owned and occupied by him as his home,".
      Subsec. (l). Pub. L. 89-754, Sec. 302, added subsec. (l).
      1965 - Subsec. (b)(2). Pub. L. 89-117, Secs. 203, 206(a),
    substituted "and (except as provided in the next to the last
    sentence of this paragraph) not to exceed" for "and not to exceed",
    and "80 per centum" for "75 per centum", and inserted provisions
    prescribing the amount of the principal obligation for veterans and
    defining "veteran".
      Subsec. (b)(9). Pub. L. 89-117, Secs. 204, 206(b), inserted
    "(except in a case to which the next to the last sentence of
    paragraph (2) applies)" and "or with respect to a mortgage covering
    a single-family home being purchased under the low-income housing
    demonstration project assisted pursuant to section 1436 of title
    42".
      Subsec. (i). Pub. L. 89-117, Sec. 205, substituted "$12,500" for
    "$11,000".
      Subsec. (k). Pub. L. 89-117, Sec. 1108(c), substituted "the
    General Insurance Fund" for "a separate section 203 Home
    Improvement Account to be maintained as hereinafter provided under
    the Mutual Mortgage Insurance Fund" in cl. (3) of the first
    sentence and "the General Insurance Fund or in debentures executed
    in the name of such Fund" for "the section 203 Home Improvement
    Account or in debentures executed in the name of such Account" in
    cl. (4), and removed references to section 220 Housing Insurance
    Fund and section 203 Home Improvement Account elsewhere in the
    subsec., including provisions for the funding of a special
    revolving fund for carrying out the provisions of the subsec.
      1964 - Subsec. (b)(2). Pub. L. 88-560, Sec. 102(a), increased
    maximum amount of the principal obligation for one-family
    residences from $25,000 to $30,000, for two-family residences from
    $27,500 to $32,500, for three-family residences from $27,500 to
    $32,500, and for four-family residences from $35,000 to $37,500.
      Subsec. (i). Pub. L. 88-560, Sec. 102(b), increased maximum
    amount of the principal obligation from $9,000 to $11,000.
      Subsec. (k). Pub. L. 88-560, Secs. 103, 105(c)(1), substituted in
    cl. (2) "an acceptable risk" for "economically sound", in cl. (4)
    provision for payment of insurance benefits "in cash out of the
    Section 203 Home Improvement Account or in debentures executed in
    the name of such Account" for provision for such payment "in
    debentures executed in the name of the Section 203 Home Improvement
    Account", and in the third sentence "Insurance benefits paid with
    respect to loans insured under this subsection shall be paid" for
    "Debentures issued with respect to loans insured under this
    subsection shall be issued"; and inserted the provision that "If
    the insurance payment is made in cash, there shall be added to such
    payment an amount equivalent to the interest which the debentures
    would have earned, computed to a date to be established pursuant to
    regulations issued by the Commissioner.", respectively.
      1961 - Subsec. (a). Pub. L. 87-70, Sec. 604(b), struck out
    proviso which limited the aggregate amount of principal obligations
    of all mortgages insured under this chapter to not more than
    $7,750,000,000, and which permitted additional increases in such
    sum by not more than $1,250,000,000 in the aggregate.
      Subsec. (b)(2). Pub. L. 87-70, Sec. 605(a), (b), increased
    maximum amount of the principal obligation for one-family
    residences from $22,500 to $25,000, and for two-family residences
    from $25,000 to $27,500, and substituted "$15,000" for "$13,500" in
    two places, "$20,000" for "$18,000" in two places, and "75 per
    centum" for "70 per centum".
      Subsec. (b)(3). Pub. L. 87-70, Secs. 605(c), 612(a)(1),
    substituted "thirty-five years (or thirty years if such mortgage is
    not approved for insurance prior to construction) from the date of
    the beginning of amortization of the mortgage" for "thirty years
    from the date of the insurance of the mortgage".
      Subsec. (c). Pub. L. 87-70, Secs. 606, 612(a)(2), reduced minimum
    premium charge from an amount equivalent to one-half of 1 per
    centum per annum to an amount equivalent to one-fourth of 1 per
    centum per annum, permitted the Commissioner to make the reduced
    premium charge applicable to each insured mortgage outstanding
    under the section or sections involved at the time the reduced
    charge is fixed, struck out provisos which related to premium
    charges for mortgages insured prior to Feb. 3, 1938, and for
    mortgages described in section 203(b)(2)(B) of the National Housing
    Act accepted for insurance prior to July 1, 1939, and substituted
    "particular insurance fund or account" for "particular insurance
    fund" in the first proviso of the second sentence.
      Subsec. (e). Pub. L. 87-70, Sec. 102(b)(1), (2), substituted
    "eligibility of the loan or mortgage" for "eligibility of the
    mortgage", and "approved financial institution or approved
    mortgagee" for "approved mortgagee" in two places.
      Subsec. (k). Pub. L. 87-70 Sec. 102(b)(3), added subsec. (k).
      1959 - Subsec. (b)(2). Pub. L. 86-372, Sec. 102(a), increased
    maximum amount of the principal obligation for one-family
    residences from $20,000 to $22,500, and for two-family residences
    from $20,000 to $25,000, increased the maximum amount of loans over
    $13,500 from 85 per centum of the value in excess of $13,500 but
    not in excess of $16,000 to 90 per centum of the value in excess of
    $13,500 but not in excess of $18,000, and inserted provisions
    relating to dwellings approved for guaranty, insurance, or direct
    loan under chapter 37 of title 38 prior to the beginning of
    construction.
      Subsec. (b)(8). Pub. L. 86-372, Sec. 102(b), inserted proviso
    making the 85 per centum limitation inapplicable if the mortgagor
    and mortgagee assume responsibility for the reduction of the
    mortgage by an amount not less than 15 per centum of the
    outstanding principal amount thereof in the event the mortgaged
    property is not, prior to the due date of the 18th amortization
    payment of the mortgage, sold to a purchaser acceptable to the
    Commissioner who is the occupant of the property and who assumes
    and agrees to pay the mortgage indebtedness.
      Subsec. (i). Pub. L. 86-372, Sec. 103, increased maximum amount
    of the principal obligation from $8,000 to $9,000, inserted
    parenthetical clause, and struck out provisions that limited the
    total amount of insurance outstanding at any one time for farm
    homes to not more than $100,000,000.
      Subsec. (j). Pub. L. 86-372, Sec. 809, added subsec. (j).
      1958 - Subsec. (b)(2). Pub. L. 85-364 substituted "$13,500" for
    "$10,000" in two places.
      1957 - Subsec. (b)(2). Pub. L. 85-104, Sec. 101(a), increased
    maximum amount of loan from 95 per centum of the first $9,000 plus
    75 per centum of excess above $9,000, to 97 per centum of the first
    $10,000 plus 85 per centum of the next $6,000 and 70 per centum of
    the remainder, and struck out provisions authorizing President to
    increase former $9,000 figure to $10,000, eliminated provision that
    principal of mortgage shall not exceed 85 per centum if mortgagor
    is not occupant of property, and eliminated provision that
    mortgagor shall have paid at least 5 per centum cash payment. See
    subsec. (b)(8), (9).
      Subsec. (b)(8), (9). Pub. L. 85-104, Sec. 101(b), added pars. (8)
    and (9).
      Subsec. (d). Pub. L. 85-104, Sec. 106, repealed provisions which
    related to insurance of mortgages on farm properties.
      Subsec. (i). Pub. L. 85-104, Sec. 101(c), amended provisions
    generally, and, among other changes, increased maximum loan from
    $6,650 to $8,000, and from 95 per centum to 97 per centum of value,
    and substituted provisions that mortgage obligation shall not
    exceed 85 per centum of value if mortgagor is not occupant, for
    provisions that (1) mortgagor be the owner and occupant and had
    paid at least 5 per centum cash, or (2) mortgagor be owner and
    occupant with whom a person or corporation having satisfactory
    credit standing had contracted to pay on his behalf all or part of
    downpayment, taking as security a note at not more than 4 per
    centum interest, and to guarantee payment of insured mortgage, or
    (3) to be the builder constructing the dwelling in which case
    principal should not exceed 85 per centum of value or $5,950.
      1956 - Subsec. (b)(2). Act Aug. 7, 1956, Secs. 102(a), 104(a),
    inserted "unless the construction of the dwelling was completed
    more than one year prior to the application for mortgage insurance"
    before "90 per centum" in parenthetical clause, and inserted
    provision that in cases where mortgagor is a person 60 years of age
    or older, the downpayment required could be paid by a person other
    than the mortgagor under conditions prescribed by the Commissioner.
      Subsec. (h). Act Aug. 7, 1956, Sec. 102(b), substituted "$12,000"
    for "$7,000".
      1954 - Subsec. (b)(2). Act Aug. 2, 1954, Sec. 104, generally
    amended provisions to provide, among others, for an increase in,
    and equalization of, maximum mortgage amounts, with respect to new
    housing, substitution of a loan to value ratio of 95 per centum of
    the $9,000 of value plus 75 per centum of the balance in excess of
    $9,000, with Presidential authority to increase the $9,000 figure
    to $10,000 under certain conditions, and with respect to existing
    housing, substitution of a loan to value ratio of 90 per centum of
    the first $9,000 of value plus 75 per centum of the balance in
    excess of $9,000, with Presidential authority to increase the
    $9,000 figure to $10,000, and inserted a provision limiting the
    maximum loan to value ratio where the builder becomes the
    mortgagor, not to exceed 85 per centum of the mortgage loan which
    an owner-occupant could obtain.
      Subsec. (b)(3). Act Aug. 2, 1954, Sec. 105, substituted a
    provision for a maximum maturity of 30 years or three-quarters of
    the Commissioner's estimate of the remaining economic life of the
    building improvements, whichever is the lesser, for former
    provision carrying varying limits ranging from twenty to thirty
    years.
      Subsec. (b)(5). Act Aug. 2, 1954, Sec. 106, fixed maximum
    statutory interest rate on mortgages at 5 per centum with authority
    in the Commissioner to increase the rate to not to exceed 6 per
    centum as he finds it necessary to meet the mortgage market; and
    permitted the allowance of service charges.
      Subsec. (c). Act Aug. 2, 1954, Sec. 107, provided that debentures
    presented in payment of premium charges shall represent obligations
    of the particular insurance fund to which such premium charges are
    to be credited.
      Subsec. (d). Act Aug. 2, 1954, Sec. 108, prohibited insurance of
    mortgages pursuant to this subsection after Aug. 2, 1954, except
    pursuant to commitments to insure issued on or before such date.
      Subsecs. (f), (g). Act Aug. 2, 1954, Sec. 109, repealed subsec.
    (f) which related to refinance mortgages and subsec. (g) which
    related to higher loan to value ratio and longer maturity for
    single-family residences. See subsecs. (b)(2) and (b)(3) of this
    section.
      Subsecs. (h), (i). Act Aug. 2, 1954, Sec. 110, added subsecs. (h)
    and (i).
      1953 - Subsec. (g). Act June 30, 1953, added subsec. (g).
      1950 - Act Apr. 20, 1950, Sec. 122, substituted "Commissioner"
    for "Administrator" wherever appearing.
      Subsec. (a). Act Apr. 20, 1950, Sec. 103, increased statutory
    amount of insurance authority from $6,750,000,000 to $7,500,000,000
    and provided that an additional $1,250,000,000 in insurance
    authority could be made available with the authority of the
    President.
      Subsec. (b)(2). Act Apr. 20, 1950, Sec. 104(a), inserted proviso
    to clause (A) to allow the Commissioner to increase the dollar
    limitation by not exceeding $4,500 for each additional family
    dwelling unit, in excess of two located on such property, repealed
    clause (B), changed "$9,500" to read "$9,450", "90" to "95" in
    clause (C), and changed clause (D) to provide that an insured
    mortgage could not exceed $6,650 in amount and not exceed 95 per
    centum of the appraised value, except that the Commissioner is
    given discretionary authority to increase such dollar amount
    limitation by not exceeding $950 for each additional bedroom in
    excess of two, and also to give Commissioner authority to increase
    the insurance limitation in any geographical area where he finds
    that cost levels so require.
      1949 - Subsec. (a). Joint Res. Oct. 25, 1949, substituted
    "$6,000,000,000" for "$5,500,000,000", and "$6,750,000,000" for
    "$6,000,000,000".
      Act Aug. 30, 1949 substituted "$5,500,000,000" for
    "$5,300,000,000" and "$6,000,000,000" for "$5,500,000,000".
      Act July 15, 1949, substituted "$5,300,000,000" for
    "$4,000,000,000" and "$5,500,000,000" for "$5,000,000,000".
      1948 - Subsec. (b)(2). Act Aug. 10, 1948, Sec. 101(g), (h)(1)-
    (3), (j)(1), substituted "$6,300" for "$5,400" in subpar. (B),
    substituted "$9,500" for "$8,600", "$7,000" for "$6,000", and
    "$11,000" for "$10,000" in subpar. (C), and added subpar. (D).
      Subsec. (b)(3). Act Aug. 10, 1948, Sec. 101(i), (j)(2),
    substituted "on property approved for insurance prior to the
    beginning of construction" for "of the character described in
    paragraph (2)(B) of this subsection" and inserted "or not to exceed
    thirty years in the case of a mortgage insured under paragraph
    (2)(D) of this subsection", at the end thereof.
      Subsec. (b)(5). Act Aug. 10, 1948, Sec. 101(j)(3), inserted "or
    not to exceed 4 per centum per annum in the case of a mortgage
    insured under paragraph (2)(D) of this subsection, or not to exceed
    such percentum per annum, not in excess of 5 per centum, as the
    Administrator finds necessary to meet the mortgage market" at the
    end thereof.
      Subsec. (c). Act Aug. 10, 1948, Sec. 101(k)(1), (2), struck out
    of last sentence "under this section or section 1715a of this
    title" after "accepted for insurance" and "and a mortgage on the
    same property is accepted for insurance at the time of such
    payment" after "herein set forth".
      1946 - Subsec. (a). Act July 1, 1946, struck out second and third
    provisos providing for a limitation on the aggregate amount of
    mortgages outstanding, and limiting insuring of mortgages after
    July 1, 1946, respectively.
      1943 - Subsec. (a). Act Oct. 15, 1943, substituted "1946" for
    "1944" in third proviso.
      1941 - Subsec. (a). Act June 28, 1941, substituted
    "$4,000,000,000" for "$3,000,000,000", "$5,000,000,000" for
    "$4,000,000,000"; and affected second and third provisos.
      1939 - Subsec. (a). Act June 3, 1939, Sec. 6, substituted
    "$3,000,000" for "$2,000,000", "$4,000,000" for "$3,000,000",
    generally revised second proviso and inserted third proviso.
      Subsec. (b)(3). Act June 3, 1939, Sec. 7, struck out "until July
    1, 1939".
      Subsecs. (e), (f). Act June 3, 1939, Sec. 8, added subsecs. (e)
    and (f).
      1938 - Subsecs. (a) to (d). Act Feb. 3, 1938, amended provisions
    generally.
      1935 - Subsec. (a)(1). Act Aug. 23, 1935, inserted "property and"
    before "project".
      Subsec. (c). Act May 28, 1935, inserted part of last sentence
    before the semicolon.
                     EFFECTIVE DATE OF 2008 AMENDMENT
      Pub. L. 110-289, div. B, title I, Sec. 2112(c), July 30, 2008,
    122 Stat. 2831, provided that: "The amendments made by subsection
    (a) [amending this section] shall take effect upon the expiration
    of the date described in section 202(a) of the Economic Stimulus
    Act of 2008 (Public Law 110-185; 122 Stat. 620) [Dec. 31, 2008]."
                     EFFECTIVE DATE OF 2004 AMENDMENTS
      Pub. L. 108-447, div. I, title II, Sec. 223, Dec. 8, 2004, 118
    Stat. 3321, provided in part that: "This provision [amending this
    section] shall apply to loans that become insured on or after date
    of enactment of this Act [Dec. 8, 2004]."
      Amendment by Pub. L. 108-386 effective Oct. 30, 2004, and, except
    as otherwise provided, applicable with respect to fiscal year 2005
    and each succeeding fiscal year, see sections 8(i) and 9 of Pub. L.
    108-386, set out as notes under section 321 of this title.
                     EFFECTIVE DATE OF 2001 AMENDMENT
      Pub. L. 107-73, title II, Sec. 207(b), Nov. 26, 2001, 115 Stat.
    675, provided that: "The amendments made by subsection (a)
    [amending this section] shall -
        "(1) apply only to mortgages that are executed on or after the
      date of enactment of this Act [Nov. 26, 2001]; and
        "(2) be implemented in advance of any necessary conforming
      changes to regulations."
                      APPLICABILITY OF 1994 AMENDMENT
      Title I of Pub. L. 103-211, Feb. 12, 1994, 108 Stat. 12, provided
    in part that: "For higher mortgage limits and improved access to
    mortgage insurance for victims of the January 1994 earthquake in
    Southern California, title II of the National Housing Act, as
    amended [12 U.S.C. 1707 et seq.], is further amended, as follows:
        "(1) [Amended this section.]
        "(2) [Amended this section.]
        "(3) [Amended section 1715y of this title.]
      "Eligibility for loans made under the authority granted by the
    preceding paragraph [amending this section and section 1715y of
    this title] shall be limited to persons whose principal residence
    was damaged or destroyed as a result of the January 1994 earthquake
    in Southern California: Provided, That the provisions under this
    heading [amending this section and section 1715y of this title]
    shall be effective only for the 18-month period following the date
    of enactment of this Act [Feb. 12, 1994]."
                     EFFECTIVE DATE OF 1992 AMENDMENT
      Section 503(b) of Pub. L. 102-550 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply only to
    mortgages executed on or after January 1, 1993."
      Section 506(b) of Pub. L. 102-550 provided that: "The amendment
    made by subsection (a) [amending this section] shall apply to
    mortgages for which commitments for insurance are issued after the
    expiration of the 12-month period beginning on the date of the
    enactment of this Act [Oct. 28, 1992]."
                     EFFECTIVE DATE OF 1990 AMENDMENTS
      Section 326(b) of Pub. L. 101-625 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply only
    with respect to -
        "(1) mortgages insured -
          "(A) pursuant to a conditional commitment issued after the
        expiration of the 60-day period beginning on the date of the
        enactment of this Act [Nov. 28, 1990]; or
          "(B) in accordance with the direct endorsement program, if
        the approved underwriter of the mortgages signs the appraisal
        report for the property after the expiration of the 60-day
        period beginning on the date of the enactment of this Act; and
        "(2) the approval of substitute mortgagors, if the original
      mortgagor was subject to such amendments."
      Amendment by Pub. L. 101-402 deemed to have taken effect as if
    enacted September 29, 1990, see section 1(a) of Pub. L. 101-494,
    set out as an Effective Date of Temporary Extension of Emergency
    Low Income Housing Preservation Act of 1987 and Correction of Any
    Repeal note under section 1715l of this title.
                     EFFECTIVE DATE OF 1989 AMENDMENT
      Section 132(b) of Pub. L. 101-235 provided that: "The amendments
    made by subsection (a) [amending this section] shall apply only
    with respect to -
        "(1) mortgages insured -
          "(A) pursuant to a conditional commitment issued on or after
        the date of the enactment of this Act [Dec. 15, 1989]; or
          "(B) in accordance with the direct endorsement program (24
        C.F.R. 200.163), if the approved underwriter of the mortgage
        signs the appraisal report for the property on or after the
        date of the enactment of this Act; and
        "(2) the approval of substitute mortgagors, if the original
      mortgagor was subject to such amendments."
      Section 143(c) of Pub. L. 101-235 provided that: "The amendments
    made by this section [amending this section] shall apply only with
    respect to -
        "(1) mortgages insured -
          "(A) pursuant to a conditional commitment issued on or after
        the date of the enactment of this Act [Dec. 15, 1989]; or
          "(B) in accordance with the direct endorsement program, if
        the approved underwriter of the mortgagee signs the appraisal
        report for the property on or after the date of the enactment
        of this Act; and
        "(2) the approval of substitute mortgagors, if the original
      mortgagor was subject to such amendments."
                     EFFECTIVE DATE OF 1988 AMENDMENT
      Section 406(d) of Pub. L. 100-242 provided that: "The amendments
    made by this section [amending this section and sections 1715d,
    1715g, 1715k, 1715l, 1715m, 1715n, 1715y, and 1715z of this title]
    shall apply only with respect to -
        "(1) mortgages insured -
          "(A) pursuant to a conditional commitment issued on or after
        the date of the enactment of this Act [Feb. 5, 1988]; or
          "(B) in accordance with the direct endorsement program (24
        CFR 200.163), if the approved underwriter of the mortgagee
        signs the appraisal report for the property on or after the
        date of the enactment of this Act; and
        "(2) the approval of substitute mortgagors, referred to in the
      amendment made by subsection (a) [amending this section], if the
      original mortgagor was subject to such amendment."
      Section 407(a)(2) of Pub. L. 100-242, as amended by Pub. L. 100-
    628, title X, Sec. 1063(b), Nov. 7, 1988, 102 Stat. 3274, provided
    that: "The amendment made by paragraph (1) [amending this section]
    shall apply to each mortgage originated pursuant to an application
    for commitment for insurance signed by the applicant on or after
    December 1, 1986."
                     EFFECTIVE DATE OF 1983 AMENDMENT
      Section 424(b) of Pub. L. 98-181 provided that: "The amendment
    made by subsection (a) [amending this section] shall take effect
    only if the Secretary finds and reports to the Congress that such
    amendment, taking into account the higher loan-to-value ratio
    resulting from the advance payment of mortgage insurance premiums,
    will not adversely affect the actuarial soundness of the Federal
    Housing Administration mortgage insurance program." [For finding
    and report by Secretary and rule implementing the amendments
    effective June 24, 1985, see 49 F.R. 39686 and 50 F.R. 19924.]
      Section 423(c) of Pub. L. 98-181 provided that: "The amendments
    made by this section [amending this section and sections 1715e,
    1715l, 1715y, and 1715z of this title] shall take effect only if
    the Secretary of Housing and Urban Development determines that the
    program of advance payment of insurance premiums, with specific
    regard to the effect of the provisions authorized by the amendments
    made by such sections, is actuarially sound." [For determination by
    Secretary and rule implementing the amendments effective May 10,
    1984, see 49 F.R. 12693.]
                     EFFECTIVE DATE OF 1978 AMENDMENT
      Section 104 of Pub. L. 95-557 provided that: "The amendments made
    by this title [enacting section 5319 of Title 42, The Public Health
    and Welfare, and amending this section, sections 1706e and 1717 of
    this title, and sections 1452b, 5304, 5305, 5307, and 5318 of Title
    42] shall become effective October 1, 1978."
                     EFFECTIVE DATE OF 1974 AMENDMENT
      Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section
    605 of Pub. L. 93-288, formerly set out as an Effective Date note
    under section 5121 of Title 42, The Public Health and Welfare.
                     EFFECTIVE DATE OF 1970 AMENDMENT
      Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section
    304 of Pub. L. 91-606, set out as a note under section 165 of Title
    26, Internal Revenue Code.
                     EFFECTIVE DATE OF 1949 AMENDMENT
      Amendment by act July 15, 1949, effective June 30, 1949, see
    section 202 of that act, set out as a note under section 1703 of
    this title.
                                REGULATIONS
      Pub. L. 105-276, title II, Sec. 225(b), Oct. 21, 1998, 112 Stat.
    2490, provided that: "The Secretary of Housing and Urban
    Development shall develop the disclosure notice under subsection
    (a) [amending this section] within 150 days of the enactment [Oct.
    21, 1998] through notice and comment rulemaking."
                 TEMPORARY EXTENSION OF FHA MORTGAGE LIMIT
      Pub. L. 101-494, Sec. 4, Oct. 31, 1990, 104 Stat. 1185, provided
    that:
      "(a) Extension. - If upon enactment of this Act [see Effective
    Date of 1990 Amendments note above], section 203(b)(2) of the
    National Housing Act (12 U.S.C. 1709(b)(2)) provides for an
    increase in the maximum dollar amount limitations on the principal
    obligations of mortgages insured under such section until October
    31, 1990, then notwithstanding such section, such maximum dollar
    amount limitations may be increased (to the percent specified in
    such section) until November 30, 1990.
      "(b) Limitations. - If upon enactment of this Act such section
    203(b)(2) [12 U.S.C. 1709(b)(2)] provides for an increase in the
    maximum dollar amount limitations (referred to in subsection (a))
    until a date other than October 31, 1990, this section shall not
    apply. This section shall not apply with respect to any amendment
    to section 203(b)(2) of the National Housing Act made after the
    date of the enactment of this Act [Oct. 31, 1990]."
                 TRANSITION PROVISIONS OF 1990 AMENDMENTS
      Section 326(c) of Pub. L. 101-625 provided that: "Any mortgage
    insurance provided under title II of the National Housing Act [this
    subchapter] before the expiration of the 60-day period beginning on
    the date of the enactment of this Act [Nov. 28, 1990], shall
    continue to be governed (to the extent applicable) by the
    provisions of section 203(g)(1) of the National Housing Act [12
    U.S.C. 1709(g)(1)], as such provisions existed before the date of
    the enactment of this Act."
      Section 2103(b), (c) of Pub. L. 101-508, as amended by Pub. L.
    102-550, title I, Sec. 185(c)(3), title V, Sec. 507(b), Oct. 28,
    1992, 106 Stat. 3748, 3782, provided that:
      "(b) Transition Provisions. - Notwithstanding section 203(c) of
    the National Housing Act [12 U.S.C. 1709(c)] (as amended by
    subsection (a)), mortgage insurance premiums on mortgages executed
    during fiscal years 1991 through 1994 and that are obligations of
    the Mutual Mortgage Insurance Fund or of the General Insurance Fund
    pursuant to section 203(v) of the National Housing Act shall be
    subject to the following requirements:
        "(1) 1991 and 1992. - For mortgages executed during fiscal
      years 1991 and 1992 (but after the date of the effectiveness of
      regulations issued under subsection (c)), the Secretary shall
      establish and collect the following premiums:
          "(A) Up-front. - At the time of insurance, a single premium
        payment in an amount not exceeding 3.80 percent of the amount
        of the original insured principal obligation of the mortgage.
          "(B) Annual. - In addition to the premium under subparagraph
        (A), annual premium payments in an amount not exceeding 0.50
        percent of the remaining insured principal balance (excluding
        the portion of the remaining balance attributable to the
        premium collected under subparagraph (A) and without taking
        into account delinquent payments or prepayments), for any
        mortgage involving an original principal obligation (excluding
        any premium collected under subparagraph (A)) that is -
            "(i) less than 90 percent of the appraised value of the
          property (as of the date the mortgage is accepted for
          insurance), for the first 5 years of the mortgage term;
            "(ii) greater than or equal to 90 percent of such value but
          equal to or less than 95 percent of such value, for the first
          8 years of the mortgage term; and
            "(iii) greater than 95 percent of such value, for the first
          10 years of the mortgage term.
        "(2) 1993 and 1994. - For mortgages executed during fiscal
      years 1993 and 1994, the Secretary shall establish and collect
      the following premiums:
          "(A) Up-front. - At the time of insurance, a single premium
        payment in an amount not exceeding 3.00 percent of the amount
        of the original insured principal obligation of the mortgage.
          "(B) Annual. - In addition to the premium under subparagraph
        (A), annual premium payments in an amount not exceeding 0.50
        percent of the remaining insured principal balance (excluding
        the portion of the remaining balance attributable to the
        premium collected under subparagraph (A) and without taking
        into account delinquent payments or prepayments), for any
        mortgage involving an original principal obligation (excluding
        any premium collected under subparagraph (A)) that is -
            "(i) less than 90 percent of the appraised value of the
          property (as of the date the mortgage is accepted for
          insurance), for the first 7 years of the mortgage term;
            "(ii) greater than or equal to 90 percent of such value but
          equal to or less than 95 percent of such value, for the first
          12 years of the mortgage term; and
            "(iii) greater than 95 percent of such value, for the first
          30 years of the mortgage term.
        "(3) Refunds. - With respect to any mortgage subject to
      premiums under this subsection, the Secretary shall refund all of
      the unearned premium charges paid on a mortgage pursuant to
      paragraph (1)(A) or (2)(A) upon payment in full of the principal
      obligation of the mortgage prior to the maturity date.
      "(c) Regulations. - The Secretary shall issue regulations to
    carry out this section and the amendments made by this section
    [amending this section] not later than the expiration of the 90-day
    period beginning on the date of the enactment of this Act [Nov. 5,
    1990]."
                  TRANSITION PROVISIONS OF 1989 AMENDMENT
      Section 132(c) of Pub. L. 101-235 provided that: "Any mortgage
    insurance provided under title II of the National Housing Act [this
    subchapter] as it existed immediately before the date of the
    enactment of this Act [Dec. 15, 1989], shall continue to be
    governed (to the extent applicable) by the provisions of section
    203(r) of the National Housing Act [12 U.S.C. 1709(r)], as such
    section existed immediately before such date."
      Section 143(d) of Pub. L. 101-235 provided that: "Any mortgage
    insurance provided under title II of the National Housing Act [this
    subchapter], as it existed immediately before the date of the
    enactment of this Act [Dec. 15, 1989], shall continue to be
    governed (to the extent applicable) by the provisions amended by
    subsections (a) and (b) [amending this section] as such provisions
    existed immediately before such date."
                  TRANSITION PROVISIONS OF 1988 AMENDMENT
      Section 406(e) of Pub. L. 100-242 provided that: "Any mortgage
    insurance provided under title II of the National Housing Act [this
    subchapter], as it existed immediately before the date of the
    enactment of this Act [Feb. 5, 1988], shall continue to be governed
    (to the extent applicable) by the provisions specified in
    subsections (a) through (c) [this section and sections 1715d,
    1715g, 1715k, 1715l, 1715m, 1715n, 1715y, 1715z of this title], as
    such provisions existed immediately before such date."
                     IMPLEMENTATION OF 1982 AMENDMENT
      Section 201(g) of Pub. L. 97-253 provided that: "The amendments
    made by this section [amending this section and sections 1715e,
    1715l, 1715y, and 1715z of this title], other than by subsection
    (b) [amending subsec. (c) of this section], may be implemented only
    if the Secretary determines that the program of advance payment of
    insurance premiums, with specific regard to the effect of the
    provisions authorized by the amendments made by this section, is
    actuarially sound."
           EFFECT OF REPEAL OF SUBSEC. (B)(2)(B) OF THIS SECTION
      Section 104(b) of act Apr. 20, 1950, provided that: "The repeal
    of section 203(b)(2)(B) of said Act [former subsection (b)(2)(B) of
    this section], as provided by subsection (a) of this section, shall
    not affect the right of the Commissioner to insure under said
    section any mortgage (1) for the insurance of which application has
    been filed prior to the effective date of this Act [Apr. 20, 1950],
    or (2) with respect to a property covered by a mortgage insured
    under any section of the National Housing Act, as amended [this
    chapter]."
            LIMITATION ON MORTGAGE INSURANCE PREMIUM INCREASES
      Pub. L. 110-289, div. B, title I, Sec. 2130, July 30, 2008, 122
    Stat. 2842, provided that:
      "(a) In General. - Notwithstanding any other provision of law,
    including any provision of this title [see Short Title of 2008
    Amendment note set out under section 1701 of this title] and any
    amendment made by this title -
        "(1) for the period beginning on the date of the enactment of
      this title [July 30, 2008] and ending on October 1, 2009, the
      premiums charged for mortgage insurance under multifamily housing
      programs under the National Housing Act [12 U.S.C. 1701 et seq.]
      may not be increased above the premium amounts in effect under
      such program on October 1, 2006, unless the Secretary of Housing
      and Urban Development determines that, absent such increase,
      insurance of additional mortgages under such program would, under
      the Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.],
      require the appropriation of new budget authority to cover the
      costs (as such term is defined in section 502 of the Federal
      Credit Reform Act of 1990 (2 U.S.C. 661a)[)] of such insurance;
      and
        "(2) a premium increase pursuant to paragraph (1) may be made
      only if not less than 30 days prior to such increase taking
      effect, the Secretary of Housing and Urban Development -
          "(A) notifies the Committee on Banking, Housing, and Urban
        Affairs of the Senate and the Committee on Financial Services
        of the House of Representatives of such increase; and
          "(B) publishes notice of such increase in the Federal
        Register.
      "(b) Waiver. - The Secretary of Housing and Urban Development may
    waive the 30-day notice requirement under subsection (a)(2), if the
    Secretary determines that waiting 30-days before increasing
    premiums would cause substantial damage to the solvency of
    multifamily housing programs under the National Housing Act [12
    U.S.C. 1701 et seq.]."
                  MUTUAL MORTGAGE INSURANCE FUND PREMIUMS
      Pub. L. 103-66, title III, Sec. 3005, Aug. 10, 1993, 107 Stat.
    340, provided that: "To improve the actuarial soundness of the
    Mutual Mortgage Insurance Fund under the National Housing Act [12
    U.S.C. 1701 et seq.], the Secretary of Housing and Urban
    Development shall increase the rate at which the Secretary earns
    the single premium payment collected at the time of insurance of a
    mortgage that is an obligation of such Fund (with respect to the
    rate in effect on the date of the enactment of this Act [Aug. 10,
    1993]). In establishing such increased rate, the Secretary shall
    consider any current audit findings and reserve analyses and
    information regarding the expected average duration of mortgages
    that are obligations of such Fund and may consider any other
    information that the Secretary determines to be appropriate."
        REPORT ON HOME EQUITY CONVERSION MORTGAGES FOR THE ELDERLY
      Section 448 of Pub. L. 98-181 directed Secretary of Housing and
    Urban Development to evaluate existing use of home equity
    conversion mortgages for the elderly and, not later than the
    expiration of the 1-year period following Nov. 30, 1983, submit to
    Congress a report setting forth the results of such evaluation.
    Such report to include an evaluation of whether use of such
    mortgages improves financial situation, or otherwise meets special
    needs, of elderly homeowners; an evaluation of any risks incurred
    by mortgagors as a result of use of such mortgages, and any
    recommendations of Secretary for appropriate safeguards to be
    included in such mortgages to minimize such risks; an evaluation of
    the potential for acceptance of such mortgages in the private
    market; and any recommendations of Secretary for establishment of a
    Federal program of insuring such mortgages.
        STUDIES OF MORTGAGE INSURANCE PREMIUMS AND ALTERNATIVES TO
                        STATUTORY MORTGAGE AMOUNTS
      Section 309 of Pub. L. 96-153 directed Secretary of Housing and
    Urban Development to (a) conduct a study of the relative risks of
    loss for various classes of mortgages which may be insured under
    sections 1709(b) and 213 of this title, for the purpose of making
    recommendations on the advisability of reducing mortgage insurance
    premiums, and transmit the recommendations to Congress within 18
    months from Dec. 21, 1979, and (b) conduct a study of alternatives
    to the present system of fixed statutory maximum amounts for
    mortgages insured under subchapters I and II of this chapter and
    report to Congress on the results of the study together with
    recommendations for legislative, by Mar. 1, 1980.
    INSURANCE PROGRAM OR HOMEOWNERS TO MEET MORTGAGE PAYMENTS IN TIMES
                      OF PERSONAL ECONOMIC ADVERSITY
      Pub. L. 90-448, Sec. 109, authorized Secretary of Housing and
    Urban Development to develop a plan of insurance to help homeowners
    meet mortgage payments in times of personal economic adversity,
    i.e., death, disability, illness, and unemployment; required the
    program to be actuarially sound through the use of premiums, fees,
    extended or increased payment schedules, or other similar methods
    in conjunction with federal participation as necessary; directed
    the Secretary to report to Congress within 6 months of Aug. 1, 1968
    and to recommend legislation, authorizing him to contract with
    companies, corporations, or joint enterprises formed to provide
    home mortgage insurance protection for the purpose of reinsuring
    insurance reserve funds, subsidizing premium payments for lower
    income mortgagors, or otherwise making possible insurance
    protection of homeowners; and authorized the Secretary, in
    preparing his recommendations, to consult with other agencies or
    instrumentalities of the United States which insure or guarantee
    home mortgages in order that any recommended legislation afford
    equal benefits to mortgagors participating in their programs.

FOOTNOTE

    (!1) See References in Text note below.
    (!2) So in original.
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