Page:United States Statutes at Large Volume 97.djvu/1249

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1217 gage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (3) Section 221(d)(2)(A) of such Act is amended by striking out the following: ": Provided further, That the foregoing maximum mort- gage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (4) Clause (A) of the third sentence of section 234(c) of such Act is amended by striking out the following: ": Provided, That the forego- ing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (5) Section 235(i) of such Act is amended— (A) by striking out in paragraph (3)(B) the following: ": Pro- vided, That the foregoing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured"; (B) by striking out in paragraph (3)(C) the following: ": Pro- vided, That the foregoing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured"; and (C) by striking out in paragraph (3)(D) the following: ": Pro- vided, That the foregoing maximum mortgage amounts may be increased by the amount of the mortgage insurance premium paid at the time the mortgage is insured". (c) The amendments made by this section shall take effect only if the Secretary of Housing and Urban Development determines that the program of advance payment of insurance premiums, with specific regard to the effect of the provisions authorized by the amendments made by such sections, is actuarially sound. 12 USC 1715/. 12 USC 1715y. 12 USC 1715z. Effective date. 12 USC 1709 note. CHANGE IN MAXIMUM LOAN-TO-VALUE RATIO FOR MODESTLY PRICED SINGLE FAMILY HOMES SEC. 424. (a) Section 203(b)(2) of the National Housing Act is amended— (1) by striking out "(except as provided in the next to the last sentence of this paragraph)" in the first sentence and inserting in lieu thereof the following: "(except as otherwise provided in this paragraph)"; and (2) by inserting after the first sentence the following new sentence: "If the mortgage to be insured under this section covers property on which there is located a one- to four-family residence to be occupied as the principal residence of the owner, and the appraised value of the property, as of the date the mortgage is accepted for insurance, does not exceed $50,000, the principal obligation may be in an amount not to exceed 97 percent of such appraised value.". (b) The amendment made by subsection (a) shall take effect only if the Secretary finds and reports to the Congress that such amend- ment, taking into account the higher loan-to-value ratio resulting from the advance payment of mortgage insurance premiums, will not adversely affect the actuarial soundness of the Federal Housing Administration mortgage insurance program. 12 USC 1709. Effective date. Report to Congress. 12 USC 1709 note. 11-194 O - 85 — 40 QL3

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