Page:United States Statutes at Large Volume 104 Part 2.djvu/425

 PUBLIC LAW 101-508 —NOV. 5, 1990 104 STAT. 1388-17 (2) in subsection (a), as designated by paragraph (1)— (A) by striking "this section" each time it appears and inserting "this subsection", and (B) by striking "The Corporation may employ such funds" and inserting "The Corporation may employ any funds obtained under this section"; and (3) by adding after subsection (a), as amended by paragraph (2), the following new subsection: "(b) BORROWING FROM FEDERAL FINANCING BANK. —The Corporation is authorized to issue and sell the Corporation's obligations, on behalf of the Bank Insurance Fund or Savings Association Insurance Fund, to the Federal Financing Bank established by the Federal Financing Bank Act of 1973. The Federal Financing Bank is authorized to purchase and sell the Corporation's obligations on terms and conditions determined by the Federal Financing Bank. Any such borrowings shall be obligations subject to the obligation limitation of section 15(c) of this Act. This subsection does not affect the eligibility of any other entity to borrow from the Federal Financing Bank.' '. Subtitle B—FHA Mortgage Insurance SEC. 2101. INCREASE IN MORTGAGE LIMIT. Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended by striking "150 percent (185 percent until October 31, 1990) of the dollar amount specified" and inserting the following: "185 percent of the dollar amount specified". SEC. 2102. MORTGAGOR EQUITY. Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended by adding at the end the following new undesignated paragraph: "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 226, or a similar amount determined by the Secretary if section 226 does not apply.". SEC. 2103. MORTGAGE INSURANCE PREMIUMS. (a) PREMIUMS. — Section 203(c) of the National Housing Act (12 U.S.C. 1709(c)) is amended— (1) by inserting "(1)" after "(c)"; (2) by striking the last sentence; and (3) by adding at the end the following new paragraph: "(2) Notwithstanding any other provision of this section, each mortgage secured by a 1- to 4-family dwelling and executed on or after October 1, 1994, 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 equal to

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