Page:United States Statutes at Large Volume 101 Part 3.djvu/612

 101 STAT. 1910

Taxes.

PUBLIC LAW 100-242—FEB. 5, 1988

ness of the homeowner under the mortgage and the amount recovered by the mortgagee from— "(A) the foreclosure sale; or "(B) the insurance benefits paid pursuant to subsection (i)(l)(C);and "(8) Contain such terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserve, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Secretary may prescribe. "(e) DISCLOSURES BY MORTGAGEE.—The Secretary shall require each mortgagee of a mortgage insured under this section to make available to the homeowner— "(1) at the time of the loan application, a written list of the names and addresses of third-party information sources who are approved by the Secretary as responsible and able to provide the information required by subsection (f); "(2) at least 10 days prior to loan closing, a statement explaining the homeowner's rights, obligations, and remedies with respect to temporary absences from the home, late payments, and payment default by the lender, all conditions requiring satisfaction of the loan obligation, and any other information that the Secretary may require; and "(3) on an annual basis (but not later than January 31 of each year), a statement summarizing the total principal amount paid to the homeowner under the loan secured by the mortgage, the total,amount of deferred interest added to the principal, and the outstanding loan balance at the end of the preceding year. "(f)

Taxes.

Termination

date.

INFORMATION SERVICES FOR MORTGAGORS.—The Secretary

shall provide or cause to be provided by entities other than the lender the information required in subsection (d)(2)(B). Such information shall be discussed with the mortgagor and shall include— "(1) options other than a home equity conversion mortgage that are available to the homeowner, including other housing, social service, health, and financial options; "(2) other home equity conversion options that are or may become available to the homeowner, such as sale-leaseback financing, deferred payment loans, and property tax deferral; "(3) the financial implications of entering into a home equity conversion mortgage; "(4) a disclosure that a home equity conversion mortgage may have tax consequences, affect eligibility for assistance under Federal and State programs, and have an impact on the estate and heirs of the homeowner; and "(5) any other information that the Secretary may require. "(g) LIMITATION ON INSURANCE AUTHORITY.—No m o r t g a g e may b e

insured under this section after September 30, 1991, except pursuant to a commitment to insure issued on or before such date. The total number of mortgages insured under this section may not exceed 2,500. In no case may the benefits of insurance under this section exceed the maximum dollar amount established under section 203(b)(2) for a 1-family residence. "(h) ADMINISTRATIVE AUTHORITY.—The Secretary may— "(1) enter into such contracts and agreements with Federal, State, and local agencies, public and private entities, and such

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