Page:United States Statutes at Large Volume 101 Part 3.djvu/615

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1913

Secretary shall maintain not less than one office in each State to carry out the provisions of this Act.". SEC. 419. PROHIBITION OF LENDER REQUIREMENTS DISCOURAGING LOANS WITH LOWER PRINCIPAL AMOUNTS. (a) LOAN AMOUNT OF ORIGINAL LOANS.—Title V of the National

Housing Act (as amended by sections 407 and 418 of this Act) is further amended by adding at the end the following new section: "PROHIBITION OF REQUIREMENT OF MINIMUM PRINCIPAL LOAN AMOUNT

"SEC. 535. A mortgagee or lender may not require, as a condition 12 USC I735f-13. of providing a loan insured under this Act or secured by a mortgage insured under this Act, that the principal amount of the loan exceed a minimum amount established by the mortgagee or lender.". (b) LOAN AMOUNT OF REFINANCINGS.—Section 223(a)(7) of the

National Housing Act (as amended by section 408 of this Act) is 12 USC I7i5n. further amended by striking "; and (B)" and inserting the following: "; (B) a mortgagee may not require a minimum principal amount to be outstanding on the loan secured by the existing mortgage; and (C)". (c) STUDY OF OTHER LENDING PRACTICES.—During the 6-month

period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall conduct a study of the interest rates and discount points charged for mortgages and loans insured under the National Housing Act. The study shall be designed to identify any pattern or practice of charging higher interest rates or discount points for mortgages or loans with lower principal amounts than for mortgages or loans with the maximum principal amounts permitted for insurance under the National Housing Act. Not later than 3 months after the expiration of the 6- Reports. month period, the Secretary shall submit to the Congress a report setting forth the findings and recommendations of the Secretary. SEC. 420. REPEAL OF REQUIREMENT TO PUBLISH PROTOTYPE HOUSING COSTS FOR 1- TO 4-FAMILY DWELLING UNITS.

The Housing and Community Development Act of 1977 is amended by striking section 904. 42 USC 3540. SEC. 421. DOUBLE DAMAGES REMEDY FOR UNAUTHORIZED USE OF MULTIFAMILY HOUSING PROJECT ASSETS AND INCOME. (a) ACTION TO RECOVER ASSETS OR INCOME.—

12 USC

(1) The Secretary of Housing and Urban Development (re- 1715z-4a. ferred to in this section as the "Secretary") may request the Attorney General to bring an action in a United States district court to recover any assets or income used by any person in violation of (A) a regulatory agreement that applies to a multifamily project whose mortgage is insured or held by the Secretary under title II of the National Housing Act; or (B) any applicable regulation. For purposes of this section, a use of assets or income in violation of the regulatory agreement or any applicable regulation shall include any use for which the documentation in the books and accounts does not establish that the use was made for a reasonable operating expense or necessary repair of the project and has not been maintained in accordance with the requirements of the Secretary and in reasonable condition for proper audit.

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