Page:United States Statutes at Large Volume 123.djvu/1661

 123STA T . 1 64 1 PUBLIC LA W 111 – 22 —M A Y 2 0, 200 9insura n ce un d er th is secti o n , the m ort g agor sha l lha v e had, or therea f ter is li k el y to have, due to the terms of the mortgage b eing reset, a ratio of mortgage debt to income, taking into consideration all e x isting mortgages of that mortgagor at such time, greater than 31p ercent ( or such higher amount as the S ecretary determines appro - priate ).’ ’ ( B ) in paragraph ( 4 ) — (i) in subparagraph ( A ), by striking ‘ ‘, sub j ect to standards established by the Board under subpara- graph (B),’’; and (ii) in subparagraph (B)(i), by striking ‘‘shall’’ and inserting ‘‘may’’; and ( C ) in paragraph ( 7 ), by striking ‘‘; and provided that’’ and all that follo w s through ‘‘new second lien’’; ( D ) in paragraph ( 9 )— (i) by striking ‘‘by procuring (A) an income tax return transcript of the income tax return of the mort- gagor, or (B)’’ and inserting ‘‘in accordance with proce- dures and standards that the Secretary shall establish (provided that such procedures and standards are con- sistent with section 20 3(b) to the maximum extent possible) which may include re q uiring the mortgagee to procure’’; and (ii) by striking ‘‘and by any other method, in accordance with procedures and standards that the Board shall establish’’; ( E ) in paragraph (10)— (i) by striking ‘‘ T he mortgagor shall not’’ and inserting the following ‘‘(A) PROHIB I T IO N .—The mortgagor shall not’’; and (ii) by adding at the end the following: ‘‘(B) D U T Y O FM ORT GA G E E.—The duty of the mortgagee to ensure that the mortgagor is in compliance with the prohibition under subparagraph (A) shall be satisfied if the mortgagee makes a good faith effort to determine that the mortgagor has not been convicted under F ederal or State law for fraud during the period described in subpara- graph (A).’’; (F) in paragraph (11), by inserting before the period at the end the following: ‘‘, except that the Secretary may provide exceptions to such latter requirement (relating to present ownership interest) for any mortgagor who has inherited a property’’; and ( G ) by adding at the end: ‘‘(12) BAN ON MI L LIONAIRE S .—The mortgagor shall not have a net worth, as of the date the mortgagor first applies for a mortgage to be insured under the Program under this section, that exceeds $ 1,000,000.’’; (4) in subsection (h)(2), by striking ‘‘The Board shall pro- hibit the Secretary from paying’’ and inserting ‘‘The Secretary shall not pay’’; and ( 5 ) in subsection (i)— (A) by redesignating paragraphs (1) and (2) as subpara- graphs (A) and (B), respectively, and adjusting the margins accordingly;