Page:United States Statutes at Large Volume 106 Part 4.djvu/907

 PUBLIC LAW 102-547—OCT. 28, 1992 106 STAT. 3643 (2) the average amount of money added to the mortgage to finance energy efficiency features; (3) the types of energy efficiency features obtained with mortgages under such section; and (4) the default rates on the mortgages guaranteed under such section compared with the default rates on all other types of mortgages guaranteed by the Secretary. SEC. 10. NEGOTIATED INTEREST RATES. (a) IN GENERAL.—Section 3703(c) of title 38, United States Code, is amended— (1) in the first sentence of paragraph (1)— (A) by striking "the Secretary of Housing and Urban Development considers necessary to meet the mortgage market for" and inserting "applicable to"; and (B) by striking all that follows "(12 U.S.C. 1709(b))'' and inserting a period; and (2) by adding at the end the following: "(4)(A) In guaranteeing or insuring loans under this chapter, the Secretary may elect whether to require that such loans bear interest at a rate that is— "(i) agreed upon by the veteran and the mortgagee; or " (ii) established under paragraph (1). The Secretary may, from time to time, change the election under this subparagraph. "(B) Any veteran, under a loan described in subparagraph (A)(i), may pay reasonable discount points in connection with the loan. Discount points ma}'^ not be financed as part of the principal amount of a loan guaranteed or insured under this chapter. "(C) Not later than 10 days after an election under subparagraph (A), the Secretary shall transmit to the Committees on Veterans' Affairs of the Senate and House of Representatives a notification of the election, together with an explanation of the reasons therefor. "(D) This paragraph shall expire on December 31, 1995.". (b) REPORT. —Not later than December 31, 1993, and annually thereafter, the Secretary of Veterans Affairs shall transmit to the Committees on Veterans' Affairs of the Senate and House of Representatives a report on whether the Secretary has implemented the authority to guarantee and insure loans that bear negotiated interest rates and points under section 3703(c)(4) of title 38, United States Code (as added by subsection (a)). If the Secretary has implemented that authority, the Secretary shall include in the report— (1) a comparison of the interest rates paid by veterans for loans that bear interest rates negotiated under section 3703(c)(4) of such title with interest rates allowable under mortgages for single family housing insured by the Secretary of Housing and Urban Development pursuant to the National Housing Act and interest rates charged under conventional mortgage loan programs for single family housing; (2) a comparison of the negotiated interest rates being charged under paragraph 4 of section 3703(c) of such title with the interest rate that the Secretary would have established under paragraph (1) of such section during the same time period; Termination date. 38 USC 3703 note.

�