Page:United States Statutes at Large Volume 106 Part 5.djvu/158

 106 STAT. 3796 PUBLIC LAW 102-550—OCT. 28, 1992 into risk-sharing agreements with qualified housing finance agencies. (B) MORTGAGE INSURANCE. —Agreements under subparagraph (A) shall provide for full mortgage insurance through the Federal Housing Administration of the loans for affordable multifamily housing originated by or through qualified housing finance agencies and for reimbursement to the Secretary by such agencies for either all or a portion of the losses incurred on the loans insured. (C) RISK APPORTIONMENT. —Agreements entered into under this subsection between the Secretary and a qualified housing finance agency shall specify the percentage of loss that each of the parties to the agreement will assume in the event of default of the insured multifamily mortgage. Such agreements shall specify that the qualified housing finance agenqr and the Secretary shall share equally the full amount of any loss on the insured mortgage. (D) REIMBURSEMENT CAPACITY. —Agreements entered into under this subsection between the Secretly and a qualified housing finance agency shall provide evidence of the capacity of such agency to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity may include— (i) a pledge of the full faith and credit of a qualified State or local agency to fulfill any obligations entered into by the qualified housing finance agency; (ii) reserves pledged or otherwise restricted by the qualified housing finance agency in an amount equal to an agreed upon percentage of the loss assumed by the housing finance agency under subparagraph (C); (iii) funds pledged through a State or local guarantee fond; or (iv) any other form of evidence mutually agreed upon by the Secretary and the quaUfied housing finance agency. (E) UNDERWRITING STANDARDS.— The Secretary shall allow any qualified housing finance agency to use ite own underwnting stondards and loan terms and conditions for purposes of underwriting loans to be insiu'ed under this subsection without further review by the Secretary, except that the Secretary may impose additional underwriting critoria and loan torms and conditions for contractu£U agreemento where the Secretary retoins more than 50 percent of the risk of loss. (3) MORTGAGE INSURANCE PREMIUMS.—The Secretary shall estoblish a schedule of insurance premium paymento for mortgages insured under this subsection based on the percentoge of loss the Secretary may assume. Such schedule shall reflect lower or nominal premiums for qualified housing finance agencies that assimie a greater share of the risk apportioned according to paragraph (2)(C). (4) LIMITATION ON INSURANCE AUTHORITY.— Using any authority provided Inr appropriations Acto to insure mortgages under the National Housing Act, the Secretary may enter into commitmente under this subsection with respect to mortgages on not to exceed 30,000 units over fiscal years 1993, 1994,

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