Page:United States Statutes at Large Volume 70.djvu/1151

 70 S T A T. ]

PUBLIC LAW 1020-AUG. 7, 1956

1095

(2) by striking out "$8,600" in paragraphs (2) and (3) and inserting in lieu thereof "$10,000"; (3) by striking out "95 per centum of the appraised value (as of the date the mortgage is accepted for insurance) of a property, upon which there is located a dwelling designed principally for a single-family residence: Provided, That the mortgagor shall be the owner and occupant of the property at the time of the insurance and shall have paid on account of the property at least 5 per centum of the Commissioner's estimate of the cost of acquisition in cash or its equivalent" in paragraph (2) and inserting in lieu thereof the following: "the appraised value (as of the date the mortgage is accepted for insurance) of a property upon which there is located a dwelling designed principally for a singlefamily residence, less such amount as may be necessary to comply with the succeeding proviso: Provided, That the mortgagor shall be the owner and occupant of the property at the time of the insurance and shall have paid on account of the property at least $200 in cash or its equivalent (which amount may include amounts to cover settlement costs and initial payments for taxes, hazard insurance, mortgage insurance premium, and other prepaid expenses)"; (4) by striking out "95 per centum of" in paragraph (3); (5) by striking out "agencies thereof" in paragraph (3) and inserting in lieu thereof "agencies thereof or the Federal Housing Commissioner"; and (6) by striking out "thirty" in paragraph (4) and inserting in lieu thereof "forty". APPROVAL OF COST CERTIFICATIONS

SEC. 109. Section 227 of the National Housing Act is amended— (1) by inserting after the first sentence the following new sentence: "Upon the Commissioner's approval of the mortgagor's certification as required hereunder, such certification shall be final and incontestable, except for fraud or material misrepresentation on the part of the mortgagor."; (2) by inserting after "legal expenses," each place it appears in paragraph (c) the following: "such allocations of general overhead items as are acceptable to the Commissioner,"; (3) by inserting after "maximum insurable mortgage amount" in paragraph (b) a semicolon and the following: "except that if the mortgage is to assist the financing of repair or rehabilitation and no part of the proceeds will be used to finance the purchase of the land or structure involved, the approved percentage shall be 100 per centum"; and by striking out "(without reduction by reason of the application of the approved percentage requirements of this section)" in clause (ii)(B) of paragraph (c); (4) by amending the proviso in paragraph (c) to read as follows: ": Provided, That such additional amount under (A) of this clause (ii) shall in no event exceed the Commissioner's estimate of the fair market value of such land and improvements prior to such repair or rehabilitation, and such additional amount under (B) of this clause (ii) shall in no event exceed the approved percentage of the Commissioner's estimate of the fair market value of such land and improvements prior to such repair or rehabilitation"; and (5) by adding at the end of paragraph (c) the following: "In the case of a mortgage insured under section 220 where the mortgagor is also the builder as defined by the Commissioner,

68 Stat. 607.

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