Page:United States Statutes at Large Volume 106 Part 5.djvu/149

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3787 (B) APPROVAL.—The mortgagor's base loan application shall be approved if the mortgagor's income and credit record is found to he satisfactory. (C) COST OF DVIPROVEMENTS. —The cost of cost-effective energy efficiency improvements shall not exceed the greater of— (i) 5 percent of the property value (not to exceed $8,000); or (ii) $4,000. (3) AUTHORITY FOR MORTGAGEES. —In granting mortgages under the pilot program established pursuant to this subsection, the Secretary shall grant mortgagees the authority— (A) to permit the final loan amount to exceed the loan limits established under title II of the National Housing Act by an amount not to exceed 100 percent of the cost of the cost-effective energy efficiency improvements, if the mortgagor's request to add the cost of such improvements is received by the mortgagee prior to funding of the base loan; (B) to hold in escrow all funds provided to the mortgagor to undertake the energy efficiencv improvements until the efficiency improvements are actually installed; and (C) to transfer or sell the energy efficient mortgage to the appropriate secondary market agency, aff;er the mortgage is issued, but before the energy efficiency improvements are actually installed. (4) PROMOTION OF PILOT PROGRAM.— The Secretary shall encourage participation in the energy efficient mortgage pilot program by— (A) making available information to lending agencies and other appropriate authorities regarding the availability and benefits of energy efficient mortgages; (B) requiring mortgagees and designated lending authorities to provide written notice of the availability and benefits of the pilot program to mortgagors applying for financing in those States designated by the Secretary as participating under the pilot program; and (C) requiring each applicant for a mortgage insured under title II of the National Housing Act in those States participating under the pilot program to sign a statement that such applicant has been informed of the program requirements and understands the benefits of energy efficient mortgages. (5) TRAINING PROGRAM.— Not later than 9 months after Establishment. the date of enactment of this Act, the Secretary, in consultation with the Secretary of Energy, shall establish and implement a program for training personnel at relevant lending agencies, real estate companies, and other appropriate organizations regarding the benefits of energy efficient mortgages and the operation of the pilot program under this subsection. (6) REPORT.—Not later than 18 months aft«r the date of enactment of this Act, the Secretary shall prepare and submit a report to the Congress describing the effectiveness and implementation of the energy efficient mortgage pilot program as described under this subsection, and assessing the potential for expanding the pilot program nationwide.

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