Page:United States Statutes at Large Volume 114 Part 5.djvu/942

 114 STAT. 2956 PUBLIC LAW 106-569—DEC. 27, 2000 may include amounts from State housing finsince agencies and Neighborhood Housing Services of America. Private Mortgage TITLE IV—PRIVATE MORTGAGE INSUR- ES ANCE CANCELLATION AND TERMI- Corrections and ik.T A rr\-rr^-^r Clarification Act. NA1ION 12 USC 4901 note. 12 USC 4901. 12 USC 4902. SEC. 401. SHORT TITLE. This title may be cited as the "Private Mortgage Insurance Technical Corrections and Clarification Act". SEC. 402. CHANGES IN AMORTIZATION SCHEDULE. (a) TREATMENT OF ADJUSTABLE RATE MORTGAGES.— The Homeowners Protection Act of 1998 (12 U.S.C. 4901 et seq.) is amended— (1) in section 2— (A) in paragraph (2)(B)(i), by striking "amortization schedules" and inserting "the amortization schedule then in effect"; (B) in paragraph (16)(B), by striking "amortization schedules" and inserting "the amortization schedule then in effect"; (C) by redesignating paragraphs (6) through (16) (as amended by the preceding provisions of this paragraph) as paragraphs (8) through (18), respectively; and (D) by inserting after paragraph (5) the following new paragraph: "(6) AMORTIZATION SCHEDULE THEN IN EFFECT. —The term 'amortization schedule then in effect' means, with respect to an adjustable rate mortgage, a schedule established at the time at which the residential mortgage transaction is consummated or, if such schedule has been changed or recalculated, is the most recent schedule under the terms of the note or mortgage, which shows— "(A) the amount of principal and interest that is due at regular intervals to retire the principal balance and accrued interest over the remaining amortization period of the loan; and "(B) the unpaid balance of the loan after each such scheduled payment is made."; and (2) in section 3(f)(l)(B)(ii), by striking "amortization schedules" and inserting "the amortization schedule then in effect". (b) TREATMENT OF BALLOON MORTGAGES. —Paragraph (1) of section 2 of the Homeowners Protection Act of 1998 (12 U.S.C. 4901(1)) is amended by adding at the end the following new sentence: "A residential mortgage that: (A) does not fully amortize over the term of the obligation; and (B) contains a conditional right to refinance or modify the unamortized principal at the maturity date of the term, shall be considered to be an adjustable rate mortgage for purposes of this Act.". (c) TREATMENT OF LOAN MODIFICATIONS.— (1) IN GENERAL.— Section 3 of the Homeowners Protection Act of 1998 (12 U.S.C. 4902) is amended— (A) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; and

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