Page:United States Statutes at Large Volume 105 Part 2.djvu/838

 105 STAT. 1790 PUBLIC LAW 102-233—DEC. 12, 1991 (II) any other documentation from the mortgage lender that the appropriate Federal banking agency may consider appropriate to provide assurance of the buyer's intent to purchase the property (including written commitments and letters of intent); (iii) under which the borrower requires the buyer of the residence to make a nonrefundable deposit to the borrower in an amount (as determined by the appropriate Federal banking agency) of not less than 1 percent of the principal amount of mortgage loan obtained by the borrower for purchase of the residence, for use in defraying costs relating to any cancellation of the purchase contract of the buyer; and (iv) that meets any other underwriting characteristics that the appropriate Federal banking agency may establish, consistent with the purposes of the minimum acceptable capital requirements to maintain the safety and soundness of financial institutions. (2) 100 PERCENT RISK-WEIGHTED CLASSIFICATION.— Not later than the expiration of the 120-day period beginning on the date of this Act each Federal banking agency shall amend the regulations and guidelines of the agency establishing minimum acceptable capital levels to provide that— (A) any single family residence construction loan for a residence for which the purchase contract is canceled shall be considered as a loan within the 100 percent riskweighted category; and (B) the lender of any single family residence construction loan shall promptly notify the appropriate Federal banking agency of any such cancellation. (b) MULTIFAMILY HOUSING LOANS. — • (1) 50 PERCENT RISK-WEIGHTED CLASSIFICATION. — (A) IN GENERAL. —To provide consistent regulatory treatment of loans made for the purchase of multifamily rental and homeowner properties, not later than the expiration of the 120-day period beginning on the date of this Act each Federal banking agency shall amend the regulations and guidelines of the agency establishing minimum acceptable capital levels to provide that any multifamily housing loan described under subparagraph (B) and any security collateralized by such a loan sheill be considered as a loan or security within the 50 percent risk-weighted category, (B) REQUIREMENTS. —Subparagraph (A) shall apply to any loan— (i) secured by a first lien on a residence consisting of more than 4 dwelling units; (ii) under which— (I) the rate of interest does not change over the term of the loan, (b) the principal obligation does not exceed 80 percent of the appraised value of the property, and (c) the ratio of annual net operating income generated by the property (before payment of any debt service on the loan) to annual debt service on the loan is not less than 120 percent; or (II) the rate of interest changes over the term of the loan, (b) the principal obligation does not

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