Page:United States Statutes at Large Volume 97.djvu/1257

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1225 initial appraised value of such property at a rate not in excess of 2.5 percent per annum.". ADJUSTABLE RATE MORTGAGES FOR SINGLE FAMILY HOUSING SEC. 443. Title II of the National Housing Act is amended by adding at the end thereof the following new section: ADJUSTABLE RATE SINGLE FAMILY MORTGAGES "SEC. 251. (a) The Secretary may insure under any provision of this title a mortgage involving property upon which there is located a dwelling designed principally for occupancy by one to four fami- lies, where the mortgage provides for periodic adjustments by the mortgagee in the effective rate of interest charged. Such interest rate adjustments may be accomplished through adjustments in the monthly payment amount, the outstanding principal balance, or the mortgage term, or a combination of these factors, except that in no case may any extension of a mortgage term result in a total term in excess of 40 years. Adjustments in the effective rate of interest shall correspond to a specified national interest rate index approved in regulations by the Secretary, information on which is readily acces- sible to mortgagors from generally available published sources. Adjustments in the effective rate of interest shall (1) be made on an annual basis; (2) be limited, with respect to any single interest rate increase, to no more than 1 percent on the outstanding loan balance; and (3) be limited to a maximum increase of 5 percentage points above the initial contract interest rate over the term of the mortgage. "(b) The Secretary shall issue regulations requiring that the mortgagee make available to the mortgagor, at the time of loan application, a written explanation of the features of the adjustable rate mortgage, including a hypothetical payment schedule that displays the maximum potential increases in monthly payments to the mortgagor over the first 5 years of the mortgage term. "(c) The aggregate number of mortgages and loans insured under this section, section 245(c), and section 252 in any fiscal year may not exceed 10 percent of the aggregate number of mortgages and loans insured by the Secretary under this title during the preceding fiscal year.". 12 USC 1715Z-16. Information accessibility. Regulations. Ante, p. 1223. Infra. SHARED APPRECIATION MORTGAGES FOR SINGLE FAMILY HOUSING SEC. 444. Title II of the National Housing Act is amended by adding at the end thereof the following new section: SHARED APPRECIATION MORTGAGES FOR SINGLE FAMILY HOUSING "SEC. 252. (a) Notwithstanding any provision of this title that is inconsistent with this section, the Secretary may insure, under any provision of this title providing for insurance of mortgages on properties upon which there is located a dwelling designed princi- pally for occupancy by one to four families, a mortgage secured by a first lien on such a property or on the stock allocated to a dwelling unit in a residential cooperative housing corporation, which— "(1) provides for the mortgagee to share in a predetermined percentage of the property's or stock's net appreciated value; 12 USC 1715Z-17.

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