Page:United States Statutes at Large Volume 112 Part 1.djvu/927

 PUBLIC LAW 105-216-JULY 29, 1998 112 STAT. 901 section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act, so as to require the imposition or continuation of a private mortgage insurance requirement beyond the terms specified in subsection (a) or (b) of section 3; or (B) as determined by the mortgagee in the case of any other mortgage, except that termination shall occur— (i) with respect to a fixed rate mortgage, on the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 77 percent of the original value of the property securing the loan; and (ii) with respect to an adjustable rate mortgage, on the date on which the principal balance of the mortgage, based solely on amortization schedules for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 77 percent of the original value of the property seeming the loan. (2) TERMINATION AT MIDPOINT.—^A private mortgage insurance requirement in connection with a residential mortgage or mortgage transaction described in paragraph (1) shall terminate in accordance with subsection (c). (3) RULE OF CONSTRUCTION.— Nothing in this subsection may be construed to require a mortgage or mortgage transaction described in paragraph (1)(A) to be purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (4) GAO REPORT.— Not later than 2 years after the date Deadline, of the enactment of this Act, the Comptroller General of the United States shall submit to the Congress a report describing the volume and characteristics of residential mortgages and residential mortgage transactions that, pursuant to paragraph (1) of this subsection, are exempt from the application of subsections (a) and (b). The report shall— (A) determine the number or volume of such mortgages and transactions compared to residential mortgages and residential mortgage transactions that are not classified as high-risk for purposes of paragraph (1); and (B) identify the characteristics of such mortgages and transactions that result in their classification (for purposes of paragraph (1)) as having high risks associated with the extension of the loan and describe such characteristics, including— (i) the income levels and races of the mortgagors involved; (ii) the amount of the downpayments involved and the downpayments expressed as percentages of the acquisition costs of the properties involved; (iii) the t3rpes and locations of the properties involved; (iv) the mortgage principal amounts; and

�