Page:United States Statutes at Large Volume 101 Part 3.djvu/609

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1907

(2) by redesignating subsections (f), (g), and (h) as subsections (g), (h), and (i), respectively; and (3) by inserting after subsection (e) the following new subsection: "(f) Notwithstanding any other provision of this Act, the insurance of a mortgage using the authority contained in this section shall be the obligation of the General Insurance Fund established in section 519. The mortgagee shall be eligible to receive the benefits of insurance as provided in section 204 with respect to mortgages insured pursuant to this section, except that (1) all references in section 204 to the Mutual Mortgage Insurance Fund or the Fund shall be construed to refer to the General Insurance Fund; and (2) all references in section 204 to section 203 shall be construed to refer to the section under which the mortgage is insured.".

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SEC. 414. CO-INSURANCE PROGRAM.

(a) REPEALER.—Section 244 of the National Housing Act is amended by striking subsection (c). (b) CO-INSURANCE AMENDMENTS.—Section 244 of the

12 USC i7i5z-9.

National

Housing Act is amended— (1) in subsection (h), by striking "coinsurance" each place it appears and inserting "co-insurance"; and (2) by adding at the end the following new subsection: "(i) Any mortgagee which enters into a contract of co-insurance Contracts. under this section shall have the authority to assign its interest in any note or mortgage subject to a contract of co-insurance to a warehouse bank or other financial institution which provides interim funding for a loan co-insured under this section, and to retain the co-insurance risk of such note or mortgage, upon such terms and conditions as the Secretary shall prescribe.". SEC. 415. INCREASE IN AUTHORITY TO INSURE ADJUSTABLE RATE SINGLE FAMILY MORTGAGES.

(a) IN GENERAL.—Section 251(c) of the National Housing Act is I2 USC i7i5z-16. amended to read as follows: "(c) The aggregate number of mortgages and loans insured under Loans. this section in any fiscal year may not exceed 30 percent of the aggregate number of mortgages and loans insured by the Secretary under this title during the preceding fiscal year.". (h) CONFORMING AMENDMENTS.—

(1) Section 245(c) of the National Housing Act is amended in 12 USC I7l5z-10. the last sentence by striking ", section 251,". (2) Section 252(g) of the National Housing Act is amended— l2 USC l7l5z-l7. (A) by striking the first comma and inserting "and"; and (B) by striking ", and section 251". SEC. 416. PENALTIES FOR EQUITY SKIMMING. (a) PURCHASE OF DWELUNG SUBJECT TO LOAN IN DEFAULT.—Sec-

tion 912 of the Housing and Urban Development Act of 1970 is 12 USC 1709-2. amended— (1) in paragraph (1), by inserting "(including condominiums and cooperatives)" after dwellings; (2) in paragraph (2), by inserting after "due" the following: ", regardless of whether the purchaser is obligated on the loan'; and (3) in the matter following paragraph (3)— (A) by striking "$5,000" and inserting "$250,000"; and

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