Page:United States Statutes at Large Volume 102 Part 4.djvu/305

 PUBLIC LAW 100-628—NOV. 7, 1988

102 STAT. 3275

"(2) EFFECTIVE DATE.—The amendment made by paragraph (1) shall apply to each mortgage originated pursuant to an application for commitment for insurance signed by the applicant on or after December 1, 1986.". SEC. 1064. PAYMENT OF CLAIMS ON LOSSES FROM PREFORECLOSURE SALES.

(a) IN GENERAL.—The second sentence of section 204(a) of the National Housing Act (12 U.S.C. 1710(a)) is amended— (1) by inserting "(A)" after "(D"; and (2) by striking ", and (2)" and inserting the following: ", or (B) upon the sale of the insured property by the mortgagor after default, if (i) the sale has been approved by the Secretary,,(ii) the mortgagee receives an amount at least equal to the fair market value of the property (with appropriate adjustments), as determined by the Secretary, and (iii) the mortgagor has received appropriate homeownership counseling, as determined by the Secretary; and (2)". (b) CONFORMING AMENDMENTS.—

(1) APPLICABILTTY.—Section 204(a) of the National Housing Act (12 U.S.C. i710(a)) is amended in the third sentence by striking "the effective date of this sentence" and inserting the following: "November 30, 1983 (on or after the date of the enactment of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988, with respect to the payment of benefits under clause (I)(B) of the preceding sentence),'. (2) CROSS-REFERENCES —

(A) Section 204(a) of the National Housing Act (12 U.S.C. 1710(a)) is amended immediately before the first proviso in the fifth sentence by striking "foreclosure". (B) Section 2040) of the National Housing Act (12 U.S.C. 1710(j)) is amended by inserting "clause (I)(A) o f before "the second sentence". (c) REGULATIONS.—In developing regulations to carry out the 12 USC 1710 amendments made by this section, the Secretary of Housing and ^o*®Urban Development may delegate to mortgagees the authority to make determinations on behalf of the Secretary, and the Secretary shall rely on certifications and post audit reviews to the greatest extent possible. SEC. 1065. MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS.

Section 247 of the National Housing Act (12 U.S.C. 1715z-12), as similarly amended first by the Department of Housing and Urban Development-Independent Agencies Act, 1988 (101 Stat. 1329-191) and later by subsections (a) and (b) of section 413 of the Housing and Community Development Act of 1987 (101 Stat. 1906), is amended to read as if the later amendment had not been enacted. SEC. 1066. HOME EQUITY CONVERSION MORTGAGE INSURANCE DEMONSTRATION.

(a) DEFINITIONS.—Section 255(b)(3) of the National Housing Act (12 U.S.C. 1715z-20(b)(3)) is amended by inserting "Depository" before "Institutions". (b) ELIGIBILITY REQUIREMENTS.—Section 255(d)(3) of the National

Housing Act (12 U.S.C. 1715z-20(d)(3)) is amended by striking "and that" and all that follows through "residence".

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