<enum>I</enum><header>Single family mortgage insurance reform</header> <section id="IDc4e3a34df070406e881fb02246163cbe"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>FHA Modernization Act of 2006</short-title></quote>.</text> </section><section id="ID01a65b3b74444e76be39a8cb195364bd"><enum>102.</enum><header>Findings and purposes</header> <subsection id="ID42268e47d6dc4a21b8ec69c21d2c67dd"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="ID76533f74eb144b1c900cf03ba0c8aea4"><enum>(1)</enum><text>one of the primary missions of the Federal Housing Administration is to reach borrowers underserved or not served by the existing conventional marketplace;</text> </paragraph><paragraph id="ID2696baa343bf4df4847beb00f818c09e"><enum>(2)</enum><text>the Federal Housing Administration has a long history of innovation and has pioneered the 30-year self-amortizing mortgage and a safe-to-seniors reverse mortgage product, both of which were once thought too risky by private lenders;</text> </paragraph><paragraph id="ID307f535ff811483d9726b43212cddcb9"><enum>(3)</enum><text>the Federal Housing Administration single family mortgage insurance program has traditionally been a major provider of mortgage insurance for home purchases;</text> </paragraph><paragraph id="ID5cec6323ad66474596a12bbbe256c51f"><enum>(4)</enum><text>the Federal Housing Administration mortgage insurance premium structure, as well as the Federal Housing Administration's product offerings, should be revised to reflect the enhanced ability of the Federal Housing Administration to determine risk at the loan level and to allow Federal Housing Administration to better respond to changes in the mortgage market;</text> </paragraph><paragraph id="IDd7d7153cb57f44dab05c935f8c8697ac"><enum>(5)</enum><text>during past recessions, including the oil-patch downturns in the mid-1980s, the Federal Housing Administration remained a viable credit enhancer and was therefore instrumental in preventing a more catastrophic collapse in housing markets and a greater loss of homeowner equity; and</text> </paragraph><paragraph id="ID8932bd716f1a43148d7e76573a02ca76"><enum>(6)</enum><text>as housing price appreciation slows and interest rates rise, many homeowners and prospective homebuyers will need the less-expensive, safer financing alternative that the Federal Housing Administration mortgage insurance provides.</text> </paragraph></subsection><subsection id="ID190c827f13ae4a6d83e2f638ac00c7a9"><enum>(b)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this title are—</text> <paragraph id="ID67f6f440d5bb4357947417cb9abe0167"><enum>(1)</enum><text>to provide flexibility to the Federal Housing Administration to allow for the insurance of housing loans for low- and moderate-income homebuyers during all economic cycles in the mortgage market;</text> </paragraph><paragraph id="ID177ef2d033904f4785943fa9248cc895"><enum>(2)</enum><text>to modernize the Federal Housing Administration single family mortgage insurance program by making such program more reflective of enhancements to loan-level risk assessments and changes to the mortgage market; and</text> </paragraph><paragraph id="ID5ebcf11e757d4e709bf1f150d05f5849"><enum>(3)</enum><text>to adjust the loan limits for the single family mortgage insurance program to reflect rising house prices and the increased costs associated with new construction.</text> </paragraph></subsection></section><section id="ID47ad7b4c9bd9464c929396223969314b"><enum>103.</enum><header>Conforming loan limits and maximum principal loan obligation</header><text display-inline="no-display-inline">Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended—</text> <paragraph id="idE15FB5983B964F7793B9C7E3A0DC6B06"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>not to exceed the lesser of</quote> after <quote>in an amount</quote>;</text> </paragraph><paragraph id="id9E843B250EC0493CA5AFE9A6043B6135"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subparagraphs (A) and (B) and inserting the following—</text> <quoted-block display-inline="no-display-inline" id="id1C730A93D3EC4633B195B2BCF470B0BD" style="OLC"> <subparagraph id="ID78ca4e73db8442b487106be4ea77bfcd"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id92A75AB0FCD74246A6EACF0E03B08304"><enum>(i)</enum><text>in the case of a 1-family residence, the median 1-family house price in the area, as determined by the Secretary; and</text> </clause><clause id="id2BD4AAB7ABC247F78FC6EB5FBA78E03C" indent="up1"><enum>(ii)</enum><text>in the case of a 2-, 3-, or 4-family residence, the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation in effect under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation in effect under such section for a 1-family residence; or</text> </clause></subparagraph><subparagraph id="IDf8f5f56d613f4c9cbf9771383d4969c9"><enum>(B)</enum><text>the dollar amount limitation determined under such section 305(a)(2) for a residence of the applicable size, except that the dollar amount limitation in effect for any area under this subparagraph may not be less than the greater of—</text> <clause id="id300B3C55A87647159655CC1034720E3B"><enum>(i)</enum><text>the dollar amount limitation in effect under this section for the area on October 21, 1998; or</text> </clause><clause id="idB14A6BE6D7174EB99E3F3769205CC068"><enum>(ii)</enum><text>65 percent of the dollar limitation determined under such section 305(a)(2) for a residence of the applicable size.</text> </clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="IDd59a6d6ee1c14b0bbe449c45ec6b4dec"><enum>(3)</enum><text>in the first undesignated paragraph, by striking the second sentence (relating to average cost); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd9cc5aff99b543f4aeb7443b2c8cfdd0"><enum>(4)</enum><text>by striking the last undesignated paragraph.</text> </paragraph></section><section id="ID22041f5d5cc8452f80e0dbc442ed2478"><enum>104.</enum><header>Extension of mortgage term</header><text display-inline="no-display-inline">Section 203(b)(3) of the National Housing Act (12 U.S.C. 1709(b)(3)) is amended by striking <quote>thirty-five years (or thirty years if such mortgage is not approved for insurance prior to construction</quote> and inserting <quote>40 years</quote>.</text> </section><section id="ID2b0e434639254f3292d293ef29313a63"><enum>105.</enum><header>Cash investment requirement</header><text display-inline="no-display-inline">Section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended—</text> <paragraph id="ID12896878582d4564a1300bf4899f755e"><enum>(1)</enum><text>by striking <quote>(except with respect to</quote> and all that follows through <quote>larger amount</quote> and inserting <quote>an amount, if any,</quote>;</text> </paragraph><paragraph id="IDbb8e2500ee2444a995162588ec6276dd"><enum>(2)</enum><text>by striking the comma after <quote>determine</quote> and inserting <quote>based on factors determined by the Secretary and commensurate with the likelihood of default</quote>;</text> </paragraph><paragraph id="IDd9d5e35c9a274662b1c7aa320787296f"><enum>(3)</enum><text>by striking <quote>of the Secretary's</quote> and all that follows through <quote>insured)</quote>;</text> </paragraph><paragraph id="IDc3173f63ee5f4d36997f0cb7bbf6806e"><enum>(4)</enum><text>by striking the first colon and inserting a period;</text> </paragraph><paragraph id="ID5aec8a55df6247008c77ff9e2474ce02"><enum>(5)</enum><text>by striking the first proviso; and</text> </paragraph><paragraph id="ID4f59155f45c54f3487b23fea190a50a5"><enum>(6)</enum><text>by striking <quote><italic>Provided further</italic>, That for</quote> and inserting <quote>For</quote>.</text> </paragraph></section><section id="ID567d6d9c552e48edb3dddcf7ab502d3e"><enum>106.</enum><header>Mortgage insurance premiums</header><text display-inline="no-display-inline">Section 203(c) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id21631192739642F8B4F73084B467240B" style="OLC"> <paragraph id="ID0328d6ff07c34eca99fcefc45e023e3f"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id6D569C22941543E6AFAB75C707D4C6A3"><enum>(A)</enum><text>For mortgages insured by the Secretary under this title that are secured by 1 to 4 family dwellings and for which the loan application is received by the mortgagee on or after October 1, 2006, the Secretary may establish a mortgage insurance premium structure involving a single premium collected prior to the insurance of the mortgage or periodic payments, or both, without regard to any maximum or minimum premium amounts set forth in this subsection. The rate of premium for a mortgage may vary during the mortgage term as long as the basis for determining the variable rate is determined prior to the execution of the mortgage. The Secretary may change a premium structure established under this subparagraph if the change is not applied to any mortgage already executed.</text> </subparagraph><subparagraph id="id55A1DE84B7AC4189834B9A05806D7E1E" indent="up1"><enum>(B)</enum><text>A premium structure shall be established or changed under subparagraph (A) by providing notice to mortgagees and by providing notice to Congress at least 30 days prior to the date that the premium structure is to be established or changed.</text> </subparagraph><subparagraph id="id45868B10906746F797639586D0E210B4" indent="up1"><enum>(C)</enum><text>In establishing a premium structure under subparagraph (A) or when changing such a premium structure the Secretary shall consider the following:</text> <clause id="id2802288DAD794D1B8122A03E608C7004"><enum>(i)</enum><text>The effect on the ability of the Secretary to meet the operational goals of the Mutual Mortgage Insurance Fund as provided in section 202(a).</text> </clause><clause id="idACA14C04410F436AB3A13E9D33F82E41"><enum>(ii)</enum><text>Underwriting variables.</text> </clause><clause id="id7DED6DBE0A974A6C9D517035BE272487"><enum>(iii)</enum><text>The extent to which new pricing has potential for acceptance on the private market.</text> </clause><clause id="id1884F094205F4410833EC2E66D64CE46"><enum>(iv)</enum><text>The administrative capability of the Secretary to administer the proposed premium structure.</text> </clause><clause id="id242C48963B13400F9FE6BB0BAE1EA4B1"><enum>(v)</enum><text>The effect on the ability of the Secretary to maintain the availability of mortgage credit and provide stability to mortgage markets.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="ID6655058f617d42089108001dd35a1191"><enum>107.</enum><header>Rehabilitation loans</header><text display-inline="no-display-inline">Section 203(k) of the National Housing Act (12 U.S.C. 1709(k)) is amended—</text> <paragraph id="ID46d0d1aa36ba4966a8a6ca85c54f8605"><enum>(1)</enum><text>in paragraph (1), by striking <quote>on</quote> and all that follows through <quote>1978</quote>; and</text> </paragraph><paragraph id="ID45e5190349e04258b84e56a890c12249"><enum>(2)</enum><text>in paragraph (5)—</text> <subparagraph id="id3D60D8CC27FE4647B5A1BF922E0D522C"><enum>(A)</enum><text>by striking <quote>General Insurance Fund</quote> the first place it appears and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </subparagraph><subparagraph id="ID9c28b92c041b49adaaf740ba4cfca1c7"><enum>(B)</enum><text>in the second sentence, by striking the comma and all that follows through the period at the end, and inserting a period.</text> </subparagraph></paragraph></section><section id="IDb552d351ea50495aa32e6c6ebf81e5a5"><enum>108.</enum><header>Discretionary action</header> <subsection id="ID23d9f3678f0e42f591d302c0b8aa1669"><enum>(a)</enum><header>Transfer of notice requirements</header><text>Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by striking subsection (s);</text> </subsection><subsection id="IDae6f5d5f5bf34795bb04917adc01f1d3"><enum>(b)</enum><header>Notice provisions</header><text>Section 202 of the National Housing Act (12 U.S.C. 1708) is amended—</text> <paragraph id="ID228eb2eb9e114980aedd6f2d4c9d8aba"><enum>(1)</enum><text>by redesignating subsection (e) as subsection (f); and</text> </paragraph><paragraph id="IDdc10d42bf91f4aa69d8ee5e5e0105030"><enum>(2)</enum><text>by inserting after subsection (d) the following new subsection (e):</text> <quoted-block display-inline="no-display-inline" id="idCF09A325A318499EB7C4B392707553B9" style="OLC"> <subsection id="ID39e65fa851154be19820a570776a0779"><enum>(e)</enum><header>Notice of discretionary action</header><text>Whenever the Secretary has taken any discretionary action to suspend or revoke the approval of any mortgagee to participate in any mortgage insurance program under this subchapter, the Secretary shall provide prompt notice of the action and a statement of the reasons for the action to—</text> <paragraph id="IDaa11fc99df40473da6a52df70e5febb0"><enum>(1)</enum><text>the Secretary of Veterans Affairs;</text> </paragraph><paragraph id="ID14672820d5eb4fb689699b5717113550"><enum>(2)</enum><text>the chief executive officer of the Federal National Mortgage Association;</text> </paragraph><paragraph id="ID172ff0c6737f47c29c82a4150d9c8fa6"><enum>(3)</enum><text>the chief executive officer of the Federal Home Loan Mortgage Corporation;</text> </paragraph><paragraph id="ID43c99e2b4bd24219abdd70813c08028e"><enum>(4)</enum><text>the Administrator of the Rural Housing Service;</text> </paragraph><paragraph id="IDb7ff37be429f4384a6762fc8936e988b"><enum>(5)</enum><text>if the mortgagee is a national bank, or a subsidiary or affiliate of such a bank, the Comptroller of the Currency;</text> </paragraph><paragraph id="ID4b1ce1f7b46c4adfa511fb2f5c8e4141"><enum>(6)</enum><text>if the mortgagee is a State bank that is a member of the Federal Reserve System or a subsidiary or affiliate of such a bank, or a bank holding company or a subsidiary or affiliate of such a company, the Board of Governors of the Federal Reserve System;</text> </paragraph><paragraph id="ID2a0c4955ac594efdb615e017d460fae3"><enum>(7)</enum><text>if the mortgagee is a State bank that is not a member of the Federal Reserve System or is a subsidiary or affiliate of such a bank, the Board of Directors of the Federal Deposit Insurance Corporation; and</text> </paragraph><paragraph id="ID2dea198caabc4c87955326f7c762d4dd"><enum>(8)</enum><text>if the mortgagee is a Federal or State savings association or a subsidiary or affiliate of a savings association, the Director of the Office of Thrift Supervision.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="ID8b64d63c50d8483fba656513f332916c"><enum>109.</enum><header>Insurance of condominiums</header> <subsection id="ID4a636c9efcca4b5384fbaa7f8e2c7d44"><enum>(a)</enum><header>In general</header><text>Section 234 of the National Housing Act (12 U.S.C. 1715y) is amended—</text> <paragraph id="IDd0a7da223fa8425d90ea79837d235082"><enum>(1)</enum><text>in subsection (c)—</text> <subparagraph id="ID0c816fef482448c9a01c9de6bdcc8357"><enum>(A)</enum><text>in the first sentence, by striking the period and inserting the following <quote>, and (3) the project has a blanket mortgage insured by the Secretary under subsection (d).</quote>; and</text> </subparagraph><subparagraph id="ID90cb679380cb454881bccfd88d19f42e"><enum>(B)</enum><text>by striking <quote>thirty-five</quote> and inserting <quote>40</quote>; and</text> </subparagraph></paragraph><paragraph id="ID8cd9f9bef4084ae58048c4464cf9b814"><enum>(2)</enum><text>in subsection (g), by striking <quote>, except</quote> and all that follows through the period at the end and inserting a period.</text> </paragraph></subsection><subsection id="ID80b5781a55654aa4aa79e8ac5f6f61cf"><enum>(b)</enum><header>First mortgages</header><text>Section 201(a) of the National Housing Act (12 U.S.C. 1707(a)) is amended by striking the semicolon and inserting <quote>or (3) a first mortgage given to secure the unpaid purchase price of a fee interest in, or long-term leasehold interest in, a 1 family unit in a multifamily project, including a project in which the dwelling units are attached, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project;</quote>.</text> </subsection></section><section id="ID0fc34aa7e60e4cdabf9c7f1ad5ed2d5f"><enum>110.</enum><header>Mutual Mortgage Insurance Fund</header> <subsection id="ID5b75bdbd84474901afacf075682c16b1"><enum>(a)</enum><header>Establishment of fund</header><text>Section 202(a) of the National Housing Act (12 U.S.C. 1708) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idD584EDDCE84F49BE806324FE0B6FFBB6" style="OLC"> <subsection id="IDebefaa20b4834f13af6a5ebd79888e7a"><enum>(a)</enum><header>Mutual mortgage insurance fund</header> <paragraph id="id57DB0974A4584E9B87C1C4D85916D121"><enum>(1)</enum><header>Establishment</header><text>Subject to the provisions of the Federal Credit Reform Act of 1990, there is hereby created a Mutual Mortgage Insurance Fund (referred to in this section as the <quote>Fund</quote>), which shall be used by the Secretary to carry out the provisions of this title with respect to mortgages insured under section 203. The Secretary is authorized to use amounts in the Fund to guarantee any mortgage insured under section 203.</text> </paragraph><paragraph id="ID01d946ed76bd4d1b9f83b1f5c8c8adda"><enum>(2)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary for the cost of—</text> <subparagraph id="id24BDB2B4034C43028FC7F364905F9F6D"><enum>(A)</enum><text>loan guarantees authorized under this subsection; and</text> </subparagraph><subparagraph id="id28D1F08F2D054186B92C6C080F3618D8"><enum>(B)</enum><text>administering such loan guarantees.</text> </subparagraph></paragraph><paragraph id="IDfa7d4c3464ae4ddc99b90bba92e2fc72"><enum>(3)</enum><header>Limit on loan guarantees</header><text>Commitments to guarantee loans under the subsection may be made by the Secretary only to the extent that total loan principal, any part of which is guaranteed, does not exceed the amount specified in annual appropriations acts each year.</text> </paragraph><paragraph id="IDbb9674a75a604e269b30754d62f51fcf"><enum>(4)</enum><header>Annual independent actuarial study</header> <subparagraph id="ID4573e83c89c24220a8a65754c70db5d9"><enum>(A)</enum><header>Study and report</header><text>The Secretary shall—</text> <clause id="id0E88192B61094DA49792B8E254700E4A"><enum>(i)</enum><text>provide for an independent actuarial study of the Fund to be conducted annually; and</text> </clause><clause id="id2ADC8F4C1E1347EBA7274E9BC1F72041"><enum>(ii)</enum><text>report annually to the Congress regarding the financial status of the Fund.</text> </clause></subparagraph><subparagraph id="idFBF8F28B0F9A47DC9CD11A7E1A76BEBF"><enum>(B)</enum><header>Content of study</header><text>Each study required under subparagraph (A) shall analyze the financial position of the Fund and recommend adjustments to underwriting standards, program participation, or premiums, if necessary, to ensure that the Fund remains financially sound.</text> </subparagraph><subparagraph id="idA581788304F1414094513A27A045BD6A"><enum>(C)</enum><header>Timing of report</header><text>The Secretary shall submit a report required under subparagraph (A) to Congress each quarter, with the first report submitted on the later of—</text> <clause id="id63AF422E7727452798B840BDCB15F4AC"><enum>(i)</enum><text>the last day of the first quarter of fiscal year 2007; or</text> </clause><clause id="idB10D263A61874A7BB78482B0A5FDD86D"><enum>(ii)</enum><text>90 days after the date of enactment of this subsection.</text> </clause></subparagraph><subparagraph id="id366C1B47FD934466BA0D25472254FB94"><enum>(D)</enum><header>Additional requirements of the report</header><text>Each report required under subparagraph (A) shall detail—</text> <clause id="id2EA54078161D4B86B51C04D3FE757FF0"><enum>(i)</enum><text>the cumulative volume of loan guarantee commitments made for the fiscal year;</text> </clause><clause id="id03F9189E98C9421896851444375F80D6"><enum>(ii)</enum><text>the types of loans insured, categorized by risk;</text> </clause><clause id="id3AB3EE7653E44E5696BB34E1F08C6EC7"><enum>(iii)</enum><text>significant changes between actual and projected claim and prepayment activity;</text> </clause><clause id="idE777A2854E28424EAB664692D4CDAC95"><enum>(iv)</enum><text>projected versus actual loss rates; and</text> </clause><clause id="id3BD30F49AC0149598195178888D5C2AE"><enum>(v)</enum><text>updated projections of the annual subsidy rates to ensure that increases in risk to the Fund are identified and mitigated by adjustments to underwriting standards, program participation, or premiums, and the Fund's financial soundness is maintained.</text> </clause></subparagraph></paragraph><paragraph id="id3A0A07D999454D63BFE39B2096216F7E"><enum>(5)</enum><header>Additional responsibility</header><text>The Secretary shall ensure that the Fund remains financially sound.</text> </paragraph><paragraph id="IDe518bd3ef60645a794ce4961a4b79045"><enum>(6)</enum><header>Adjustment of premiums</header> <subparagraph id="IDb34e4067f29047f1b6df467ce5973a78"><enum>(A)</enum><header>Authority of the secretary</header><text>If, pursuant to the independent actuarial study of the Fund required under paragraph (4), the Secretary determines that the Fund is not meeting the operational goals established under subparagraph (B) or there is a substantial probability that the Fund will not maintain its established target subsidy rate, the Secretary may either make—</text> <clause id="idB8A6FA8A6E954FBEA0435B20AA5CEAAE"><enum>(i)</enum><text>programmatic adjustments under section 203 as necessary to reduce the risk to the Fund; or</text> </clause><clause id="id87DB91037F04410C8DF89BE8B7A0EB83"><enum>(ii)</enum><text>appropriate premium adjustments.</text> </clause></subparagraph><subparagraph id="ID9afbefe2faf14579816b223956d0c19f"><enum>(B)</enum><header>Operational goals</header><text>The operational goals of the Fund are—</text> <clause id="ID9ac8f5bd3f0048ecbc488524f002d8a4"><enum>(i)</enum><text>charging borrowers an appropriate premium for the risk that such borrower poses to the Fund;</text> </clause><clause id="ID67b03e1c82004cf084e20cd1f7e45ef2"><enum>(ii)</enum><text>minimizing the default risk to the Fund and to homeowners;</text> </clause><clause id="ID841ac0c7c2cb425ca3c80d99eaca8a3c"><enum>(iii)</enum><text>curtailing the impact of adverse selection on the Fund; and</text> </clause><clause id="IDfe0b08bc2dbb4369a8da7b0471acf36d"><enum>(iv)</enum><text>meeting the housing needs of the target mortgagors of the Fund.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDb34aae049193477fae7766647e4f6dba"><enum>(b)</enum><header>Amendment to Section 205</header><text>Section 205 of the National Housing Act (12 U.S.C. 1711) is amended by striking subsections (g) and (h).</text> </subsection><subsection id="ID9e0abec1202d45b685ad4678b91b51e4"><enum>(c)</enum><header>Amendment to Section 203</header><text>Section 203(v) of the National Housing Act (12 U.S.C. 1709(v)) is amended by—</text> <paragraph id="ID2e939d7a184941eabeb97c0225a309d7"><enum>(1)</enum><text>striking <quote>Notwithstanding section 202 of this title, the</quote> and inserting <quote>The</quote>; and</text> </paragraph><paragraph id="ID129a70bd895946309080899580899174"><enum>(2)</enum><text>striking <quote>General Insurance Fund</quote> and all that follows through the period at the end and inserting <quote>Mutual Mortgage Insurance Fund.</quote>.</text> </paragraph></subsection><subsection id="IDab4661fd27e24fd5a921b11b5e91ac6f"><enum>(d)</enum><header>Amendments to General Insurance Fund</header><text>Section 519(e) of the National Housing Act (12 U.S.C. 1735c(e)) is amended by—</text> <paragraph id="IDcb90018d92784d85acf615e64bda7bcb"><enum>(1)</enum><text>striking <quote>203(b)</quote> and inserting <quote>203</quote>; and</text> </paragraph><paragraph id="ID962da9904f28433687dca3005a9563da"><enum>(2)</enum><text>striking <quote>(except</quote> and all that follows through <quote>203(i)</quote> and inserting <quote>except as determined by the Secretary</quote>.</text> </paragraph></subsection><subsection id="ID5375a5c44f024da496bc6449bfc95c8a"><enum>(e)</enum><header>Home equity conversion mortgages</header><text>Section 255(i)(2)(A) of the National Housing Act (12 U.S.C. 1715z–20(i)(2)A)) is amended by striking <quote>General Insurance Fund</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>.</text> </subsection></section><section id="ID53b6e93b3c0f4591989666c0ce6bd533"><enum>111.</enum><header>Hawaiian home lands and Indian reservations</header> <subsection id="ID77c35f6feb804f278eb3ec6e9b3ddd74"><enum>(a)</enum><header>Single family mortgage insurance</header><text>Section 247(c) of the National Housing Act (12 U.S.C. 1715z–12) is amended—</text> <paragraph id="idC4AD6B11C7244D2986CF0E493BC939C9"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">General Insurance Fund</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Mutual Mortgage Insurance Fund</header-in-text></quote>;</text> </paragraph><paragraph id="ID9e3943e65b6641e899678d610629e657"><enum>(2)</enum><text>in the first sentence, by striking <quote>General Insurance Fund established in section 519</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </paragraph><paragraph id="IDa5dc12c9330746ea82b0ee85210dd36a"><enum>(3)</enum><text>in the second sentence, by striking the comma and all that follows through the period at the end and inserting <quote>, except that all references in section 204 to section 203 shall be construed to refer to the section under which the mortgage is insured.</quote>.</text> </paragraph></subsection><subsection id="IDda56a049c6ce4d4d87b2dc19653bede9"><enum>(b)</enum><header>Mortgage insurance on Indian reservations</header><text>Section 248(f) of the National Housing Act (12 U.S.C. 1715z–13) is amended—</text> <paragraph id="id7CEAD93F558647BC96454E8D7205F5AF"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">General Insurance Fund</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Mutual Mortgage Insurance Fund</header-in-text></quote>;</text> </paragraph><paragraph id="idBDC4F02C71E949579012FE33EE94587B"><enum>(2)</enum><text>in the first sentence, by striking <quote>General Insurance Fund established in section 519</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3088454749FE410995B0BA9C2996CEF3"><enum>(3)</enum><text>in the second sentence, by striking the comma and all that follows through the period at the end and inserting <quote>, except that all references in section 204 to section 203 shall be construed to refer to the section under which the mortgage is insured.</quote>.</text> </paragraph></subsection></section><section id="IDddb5af9bab544927acfd4275cda8361b"><enum>112.</enum><header>Conforming and technical amendments</header> <subsection id="ID67ade9473b874a2489cce6abe227e617"><enum>(a)</enum><header>Repeal of sections</header><text>The following sections of the National Housing Act are repealed:</text> <paragraph id="IDee285375227a427eae11457afc8fb818"><enum>(1)</enum><text>Section 203(i) (12 U.S.C. 1709(i)).</text> </paragraph><paragraph id="ID2e84857d629e4ca5b312551117b8a4ed"><enum>(2)</enum><text>Section 203(o) (12 U.S.C. 1709(o)).</text> </paragraph><paragraph id="ID7e372df775f14a7ab3bf1e3c16b9deba"><enum>(3)</enum><text display-inline="yes-display-inline">Section 203(p) (12 U.S.C. 1709(p)).</text> </paragraph><paragraph id="ID242e61b5484744b39c682d66a8d49e41"><enum>(4)</enum><text>Section 203(q) (12 U.S.C. 1709(q)).</text> </paragraph><paragraph id="IDbe6c8956b42c461fa96d1af8bb40c2c4"><enum>(5)</enum><text>Section 222 (12 U.S.C. 1715m).</text> </paragraph><paragraph id="IDa991955e5d3f485791fc46fa881bc1b6"><enum>(6)</enum><text>Section 237 (12 U.S.C. 1715z–2).</text> </paragraph><paragraph id="ID45c94ef1400f4956833e37201109e20e"><enum>(7)</enum><text>Section 245 (12 U.S.C. 1715z–10).</text> </paragraph></subsection><subsection id="IDf39f299f80494074829e1646959a545c"><enum>(b)</enum><header>Definition of area</header><text>Section 203(u)(2)(A) of the National Housing Act (12 U.S.C. 1709(u)(2)(A)) is amended by striking <quote>shall</quote> and all that follows through the semicolon at the end and inserting <quote>means a metropolitan statistical area, as established by the Office of Management and Budget;</quote>.</text> </subsection><subsection id="ID4f3d27655c394d90968c06d10a79c414"><enum>(c)</enum><header>Definition of State</header><text>Section 201(d) of the National Housing Act (12 U.S.C. 1707(d)) is amended by striking <quote>the Trust Territory of the Pacific Islands</quote> and inserting <quote>the Northern Marianas Islands</quote>.</text> </subsection></section><section id="ID6bec93230633436fa6171cb675a06cec"><enum>113.</enum><header>Home equity conversion mortgages</header><text display-inline="no-display-inline">Section 255 of the National Housing Act (12 U.S.C. 1715z–20) is amended—</text> <paragraph id="ID40caa32620824856bc2670cc2f59843d"><enum>(1)</enum><text>in subsection (g)—</text> <subparagraph id="IDb8c12d2b67284af48c45e4a643671f95"><enum>(A)</enum><text>by striking the first sentence; and</text> </subparagraph><subparagraph id="IDeb36c39735c444bda116de9832d96c22"><enum>(B)</enum><text>by striking <quote>section 203(b)(2)</quote> and inserting <quote>section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act</quote>;</text> </subparagraph></paragraph><paragraph id="ID1b484be49ff24c2487403422251de369"><enum>(2)</enum><text>in subsection (i)(1)(C), by striking <quote>limitations</quote> and inserting <quote>limitation</quote>; and</text> </paragraph><paragraph id="ID6a8a482b3b1f4479b5b1a78903a1d2ce"><enum>(3)</enum><text>by adding a new subsection as follows:</text> <quoted-block display-inline="no-display-inline" id="id8AA1C45FCF12465193C786C897DA1279" style="OLC"> <subsection id="ID166f34e7fe834ba9b236047002eed558"><enum>(n)</enum><header>Authority for home purchase</header> <paragraph id="idB7DF760D6B3142B1925F31AC6ACF11D1"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision in this section, the Secretary may insure, upon application by a mortgagee, a home equity conversion mortgage upon such terms and conditions as the Secretary may prescribe, when the primary purpose of the home equity conversion mortgage is to enable an elderly mortgagor to purchase a 1 to 4 family dwelling in which the mortgagor will occupy or occupies one of the units.</text> </paragraph><paragraph id="IDd97bc00be02945dcb593baa332d206c8"><enum>(2)</enum><header>Limitation on principal obligation</header><text>A home equity conversion mortgage insured under paragraph (1) shall involve a principal obligation that does not exceed the dollar amount limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a residence of the applicable size.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="ID4a72df9e5cbc4660b6f00d9e3bf6051b"><enum>114.</enum><header>Conforming loan limit in disaster areas</header><text display-inline="no-display-inline">Section 203(h) of the National Housing Act (12 U.S.C. 1709) is amended—</text> <paragraph id="id8BB68E444AF741DFA469570D6C254023"><enum>(1)</enum><text>by striking <quote>Notwithstanding</quote> and inserting the following:</text> <quoted-block act-name="" display-inline="no-display-inline" id="idA34E4774C56749FFA2997B8CCE6BD7C2" style="OLC"> <paragraph id="id555465311504402B8B9845FC217B9049"><enum>(1)</enum><header>In general</header><text>Notwithstanding</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="idB149E2C5773C46458E669DC36669BC39"><enum>(2)</enum><text>by inserting after <quote>value of property</quote> the following: “plus any initial service charges, appraisal, inspection, and other fees in connection with the mortgage, as approved by the Secretary”; and</text> </paragraph><paragraph id="ID9578f123d80f48e3ae9c91df080eadb8"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3AD87D98DAEB44D3B7049F7528F9991E" style="OLC"> <paragraph id="id27395A163A8044EF9BDE130E2563980B"><enum>(2)</enum><header>Temporary agreements to insure mortgages</header><text>In any case in which the single family residence to be insured under this subsection is within a jurisdiction in which the President has declared a major disaster as described in paragraph (1), the Secretary is authorized for a temporary period not to exceed 36 months from the date of such Presidential declaration, to enter into agreements to insure a mortgage which involves a principal obligation of up to 100 percent of the dollar limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a single family residence, and not in excess of 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="ID3f21ba1e9e954bdfbff340e261ac88be"><enum>115.</enum><header>Savings provision</header><text display-inline="no-display-inline">Any mortgage insured under title II of the National Housing Act before the date of enactment of this title shall continue to be governed by the laws, regulations, orders, terms, and conditions to which it was subject to on the day prior to the date of enactment of this title.</text> </section><section id="id8E775242B5EC47DDA2373AA362F0C666"><enum>116.</enum><header>Implementation</header> <subsection id="ID60954d7ffdb64823843f7ad8374541bd"><enum>(a)</enum><header>In general</header><text>The Secretary shall by notice establish any additional requirements that may be necessary to immediately carry out the provisions of this title.</text> </subsection><subsection id="id7AE14DEA8AC44EB49B832AFCD34C986A"><enum>(b)</enum><header>Effect of notice</header><text>Any notice required under subsection (a) shall take effect upon the date of issuance of such notice.</text> </subsection></section>

Short title; table of contents

(a)

Short title

This Act may be cited as the Expanding American Homeownership Act of 2006. (b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Single family mortgage insurance reform

Sec. 101. Short title.

Sec. 102. Findings and purposes.

Sec. 103. Conforming loan limits and maximum principal loan obligation.

Sec. 104. Extension of mortgage term.

Sec. 105. Cash investment requirement.

Sec. 106. Mortgage insurance premiums.

Sec. 107. Rehabilitation loans.

Sec. 108. Discretionary action.

Sec. 109. Insurance of condominiums.

Sec. 110. Mutual Mortgage Insurance Fund.

Sec. 111. Hawaiian home lands and Indian reservations.

Sec. 112. Conforming and technical amendments.

Sec. 113. Home equity conversion mortgages.

Sec. 114. Conforming loan limit in disaster areas.

Sec. 115. Savings provision.

Sec. 116. Implementation.

TITLE II—Manufactured housing mortgage insurance

Sec. 201. Short title.

Sec. 202. Findings and purposes.

Sec. 203. Exception to limitation on financial institution portfolio.

Sec. 204. Insurance benefits.

Sec. 205. Maximum loan limits.

Sec. 206. Insurance premiums.

Sec. 207. Technical corrections.

<enum>I</enum><header>Single family mortgage insurance reform</header> <section id="IDc4e3a34df070406e881fb02246163cbe"><enum>101.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>FHA Modernization Act of 2006</short-title></quote>.</text> </section><section id="ID01a65b3b74444e76be39a8cb195364bd"><enum>102.</enum><header>Findings and purposes</header> <subsection id="ID42268e47d6dc4a21b8ec69c21d2c67dd"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="ID76533f74eb144b1c900cf03ba0c8aea4"><enum>(1)</enum><text>one of the primary missions of the Federal Housing Administration is to reach borrowers underserved or not served by the existing conventional marketplace;</text> </paragraph><paragraph id="ID2696baa343bf4df4847beb00f818c09e"><enum>(2)</enum><text>the Federal Housing Administration has a long history of innovation and has pioneered the 30-year self-amortizing mortgage and a safe-to-seniors reverse mortgage product, both of which were once thought too risky by private lenders;</text> </paragraph><paragraph id="ID307f535ff811483d9726b43212cddcb9"><enum>(3)</enum><text>the Federal Housing Administration single family mortgage insurance program has traditionally been a major provider of mortgage insurance for home purchases;</text> </paragraph><paragraph id="ID5cec6323ad66474596a12bbbe256c51f"><enum>(4)</enum><text>the Federal Housing Administration mortgage insurance premium structure, as well as the Federal Housing Administration's product offerings, should be revised to reflect the enhanced ability of the Federal Housing Administration to determine risk at the loan level and to allow Federal Housing Administration to better respond to changes in the mortgage market;</text> </paragraph><paragraph id="IDd7d7153cb57f44dab05c935f8c8697ac"><enum>(5)</enum><text>during past recessions, including the oil-patch downturns in the mid-1980s, the Federal Housing Administration remained a viable credit enhancer and was therefore instrumental in preventing a more catastrophic collapse in housing markets and a greater loss of homeowner equity; and</text> </paragraph><paragraph id="ID8932bd716f1a43148d7e76573a02ca76"><enum>(6)</enum><text>as housing price appreciation slows and interest rates rise, many homeowners and prospective homebuyers will need the less-expensive, safer financing alternative that the Federal Housing Administration mortgage insurance provides.</text> </paragraph></subsection><subsection id="ID190c827f13ae4a6d83e2f638ac00c7a9"><enum>(b)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this title are—</text> <paragraph id="ID67f6f440d5bb4357947417cb9abe0167"><enum>(1)</enum><text>to provide flexibility to the Federal Housing Administration to allow for the insurance of housing loans for low- and moderate-income homebuyers during all economic cycles in the mortgage market;</text> </paragraph><paragraph id="ID177ef2d033904f4785943fa9248cc895"><enum>(2)</enum><text>to modernize the Federal Housing Administration single family mortgage insurance program by making such program more reflective of enhancements to loan-level risk assessments and changes to the mortgage market; and</text> </paragraph><paragraph id="ID5ebcf11e757d4e709bf1f150d05f5849"><enum>(3)</enum><text>to adjust the loan limits for the single family mortgage insurance program to reflect rising house prices and the increased costs associated with new construction.</text> </paragraph></subsection></section><section id="ID47ad7b4c9bd9464c929396223969314b"><enum>103.</enum><header>Conforming loan limits and maximum principal loan obligation</header><text display-inline="no-display-inline">Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended—</text> <paragraph id="idE15FB5983B964F7793B9C7E3A0DC6B06"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>not to exceed the lesser of</quote> after <quote>in an amount</quote>;</text> </paragraph><paragraph id="id9E843B250EC0493CA5AFE9A6043B6135"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subparagraphs (A) and (B) and inserting the following—</text> <quoted-block display-inline="no-display-inline" id="id1C730A93D3EC4633B195B2BCF470B0BD" style="OLC"> <subparagraph id="ID78ca4e73db8442b487106be4ea77bfcd"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="id92A75AB0FCD74246A6EACF0E03B08304"><enum>(i)</enum><text>in the case of a 1-family residence, the median 1-family house price in the area, as determined by the Secretary; and</text> </clause><clause id="id2BD4AAB7ABC247F78FC6EB5FBA78E03C" indent="up1"><enum>(ii)</enum><text>in the case of a 2-, 3-, or 4-family residence, the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation in effect under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation in effect under such section for a 1-family residence; or</text> </clause></subparagraph><subparagraph id="IDf8f5f56d613f4c9cbf9771383d4969c9"><enum>(B)</enum><text>the dollar amount limitation determined under such section 305(a)(2) for a residence of the applicable size, except that the dollar amount limitation in effect for any area under this subparagraph may not be less than the greater of—</text> <clause id="id300B3C55A87647159655CC1034720E3B"><enum>(i)</enum><text>the dollar amount limitation in effect under this section for the area on October 21, 1998; or</text> </clause><clause id="idB14A6BE6D7174EB99E3F3769205CC068"><enum>(ii)</enum><text>65 percent of the dollar limitation determined under such section 305(a)(2) for a residence of the applicable size.</text> </clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="IDd59a6d6ee1c14b0bbe449c45ec6b4dec"><enum>(3)</enum><text>in the first undesignated paragraph, by striking the second sentence (relating to average cost); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd9cc5aff99b543f4aeb7443b2c8cfdd0"><enum>(4)</enum><text>by striking the last undesignated paragraph.</text> </paragraph></section><section id="ID22041f5d5cc8452f80e0dbc442ed2478"><enum>104.</enum><header>Extension of mortgage term</header><text display-inline="no-display-inline">Section 203(b)(3) of the National Housing Act (12 U.S.C. 1709(b)(3)) is amended by striking <quote>thirty-five years (or thirty years if such mortgage is not approved for insurance prior to construction</quote> and inserting <quote>40 years</quote>.</text> </section><section id="ID2b0e434639254f3292d293ef29313a63"><enum>105.</enum><header>Cash investment requirement</header><text display-inline="no-display-inline">Section 203(b)(9) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended—</text> <paragraph id="ID12896878582d4564a1300bf4899f755e"><enum>(1)</enum><text>by striking <quote>(except with respect to</quote> and all that follows through <quote>larger amount</quote> and inserting <quote>an amount, if any,</quote>;</text> </paragraph><paragraph id="IDbb8e2500ee2444a995162588ec6276dd"><enum>(2)</enum><text>by striking the comma after <quote>determine</quote> and inserting <quote>based on factors determined by the Secretary and commensurate with the likelihood of default</quote>;</text> </paragraph><paragraph id="IDd9d5e35c9a274662b1c7aa320787296f"><enum>(3)</enum><text>by striking <quote>of the Secretary's</quote> and all that follows through <quote>insured)</quote>;</text> </paragraph><paragraph id="IDc3173f63ee5f4d36997f0cb7bbf6806e"><enum>(4)</enum><text>by striking the first colon and inserting a period;</text> </paragraph><paragraph id="ID5aec8a55df6247008c77ff9e2474ce02"><enum>(5)</enum><text>by striking the first proviso; and</text> </paragraph><paragraph id="ID4f59155f45c54f3487b23fea190a50a5"><enum>(6)</enum><text>by striking <quote><italic>Provided further</italic>, That for</quote> and inserting <quote>For</quote>.</text> </paragraph></section><section id="ID567d6d9c552e48edb3dddcf7ab502d3e"><enum>106.</enum><header>Mortgage insurance premiums</header><text display-inline="no-display-inline">Section 203(c) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id21631192739642F8B4F73084B467240B" style="OLC"> <paragraph id="ID0328d6ff07c34eca99fcefc45e023e3f"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id6D569C22941543E6AFAB75C707D4C6A3"><enum>(A)</enum><text>For mortgages insured by the Secretary under this title that are secured by 1 to 4 family dwellings and for which the loan application is received by the mortgagee on or after October 1, 2006, the Secretary may establish a mortgage insurance premium structure involving a single premium collected prior to the insurance of the mortgage or periodic payments, or both, without regard to any maximum or minimum premium amounts set forth in this subsection. The rate of premium for a mortgage may vary during the mortgage term as long as the basis for determining the variable rate is determined prior to the execution of the mortgage. The Secretary may change a premium structure established under this subparagraph if the change is not applied to any mortgage already executed.</text> </subparagraph><subparagraph id="id55A1DE84B7AC4189834B9A05806D7E1E" indent="up1"><enum>(B)</enum><text>A premium structure shall be established or changed under subparagraph (A) by providing notice to mortgagees and by providing notice to Congress at least 30 days prior to the date that the premium structure is to be established or changed.</text> </subparagraph><subparagraph id="id45868B10906746F797639586D0E210B4" indent="up1"><enum>(C)</enum><text>In establishing a premium structure under subparagraph (A) or when changing such a premium structure the Secretary shall consider the following:</text> <clause id="id2802288DAD794D1B8122A03E608C7004"><enum>(i)</enum><text>The effect on the ability of the Secretary to meet the operational goals of the Mutual Mortgage Insurance Fund as provided in section 202(a).</text> </clause><clause id="idACA14C04410F436AB3A13E9D33F82E41"><enum>(ii)</enum><text>Underwriting variables.</text> </clause><clause id="id7DED6DBE0A974A6C9D517035BE272487"><enum>(iii)</enum><text>The extent to which new pricing has potential for acceptance on the private market.</text> </clause><clause id="id1884F094205F4410833EC2E66D64CE46"><enum>(iv)</enum><text>The administrative capability of the Secretary to administer the proposed premium structure.</text> </clause><clause id="id242C48963B13400F9FE6BB0BAE1EA4B1"><enum>(v)</enum><text>The effect on the ability of the Secretary to maintain the availability of mortgage credit and provide stability to mortgage markets.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="ID6655058f617d42089108001dd35a1191"><enum>107.</enum><header>Rehabilitation loans</header><text display-inline="no-display-inline">Section 203(k) of the National Housing Act (12 U.S.C. 1709(k)) is amended—</text> <paragraph id="ID46d0d1aa36ba4966a8a6ca85c54f8605"><enum>(1)</enum><text>in paragraph (1), by striking <quote>on</quote> and all that follows through <quote>1978</quote>; and</text> </paragraph><paragraph id="ID45e5190349e04258b84e56a890c12249"><enum>(2)</enum><text>in paragraph (5)—</text> <subparagraph id="id3D60D8CC27FE4647B5A1BF922E0D522C"><enum>(A)</enum><text>by striking <quote>General Insurance Fund</quote> the first place it appears and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </subparagraph><subparagraph id="ID9c28b92c041b49adaaf740ba4cfca1c7"><enum>(B)</enum><text>in the second sentence, by striking the comma and all that follows through the period at the end, and inserting a period.</text> </subparagraph></paragraph></section><section id="IDb552d351ea50495aa32e6c6ebf81e5a5"><enum>108.</enum><header>Discretionary action</header> <subsection id="ID23d9f3678f0e42f591d302c0b8aa1669"><enum>(a)</enum><header>Transfer of notice requirements</header><text>Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by striking subsection (s);</text> </subsection><subsection id="IDae6f5d5f5bf34795bb04917adc01f1d3"><enum>(b)</enum><header>Notice provisions</header><text>Section 202 of the National Housing Act (12 U.S.C. 1708) is amended—</text> <paragraph id="ID228eb2eb9e114980aedd6f2d4c9d8aba"><enum>(1)</enum><text>by redesignating subsection (e) as subsection (f); and</text> </paragraph><paragraph id="IDdc10d42bf91f4aa69d8ee5e5e0105030"><enum>(2)</enum><text>by inserting after subsection (d) the following new subsection (e):</text> <quoted-block display-inline="no-display-inline" id="idCF09A325A318499EB7C4B392707553B9" style="OLC"> <subsection id="ID39e65fa851154be19820a570776a0779"><enum>(e)</enum><header>Notice of discretionary action</header><text>Whenever the Secretary has taken any discretionary action to suspend or revoke the approval of any mortgagee to participate in any mortgage insurance program under this subchapter, the Secretary shall provide prompt notice of the action and a statement of the reasons for the action to—</text> <paragraph id="IDaa11fc99df40473da6a52df70e5febb0"><enum>(1)</enum><text>the Secretary of Veterans Affairs;</text> </paragraph><paragraph id="ID14672820d5eb4fb689699b5717113550"><enum>(2)</enum><text>the chief executive officer of the Federal National Mortgage Association;</text> </paragraph><paragraph id="ID172ff0c6737f47c29c82a4150d9c8fa6"><enum>(3)</enum><text>the chief executive officer of the Federal Home Loan Mortgage Corporation;</text> </paragraph><paragraph id="ID43c99e2b4bd24219abdd70813c08028e"><enum>(4)</enum><text>the Administrator of the Rural Housing Service;</text> </paragraph><paragraph id="IDb7ff37be429f4384a6762fc8936e988b"><enum>(5)</enum><text>if the mortgagee is a national bank, or a subsidiary or affiliate of such a bank, the Comptroller of the Currency;</text> </paragraph><paragraph id="ID4b1ce1f7b46c4adfa511fb2f5c8e4141"><enum>(6)</enum><text>if the mortgagee is a State bank that is a member of the Federal Reserve System or a subsidiary or affiliate of such a bank, or a bank holding company or a subsidiary or affiliate of such a company, the Board of Governors of the Federal Reserve System;</text> </paragraph><paragraph id="ID2a0c4955ac594efdb615e017d460fae3"><enum>(7)</enum><text>if the mortgagee is a State bank that is not a member of the Federal Reserve System or is a subsidiary or affiliate of such a bank, the Board of Directors of the Federal Deposit Insurance Corporation; and</text> </paragraph><paragraph id="ID2dea198caabc4c87955326f7c762d4dd"><enum>(8)</enum><text>if the mortgagee is a Federal or State savings association or a subsidiary or affiliate of a savings association, the Director of the Office of Thrift Supervision.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="ID8b64d63c50d8483fba656513f332916c"><enum>109.</enum><header>Insurance of condominiums</header> <subsection id="ID4a636c9efcca4b5384fbaa7f8e2c7d44"><enum>(a)</enum><header>In general</header><text>Section 234 of the National Housing Act (12 U.S.C. 1715y) is amended—</text> <paragraph id="IDd0a7da223fa8425d90ea79837d235082"><enum>(1)</enum><text>in subsection (c)—</text> <subparagraph id="ID0c816fef482448c9a01c9de6bdcc8357"><enum>(A)</enum><text>in the first sentence, by striking the period and inserting the following <quote>, and (3) the project has a blanket mortgage insured by the Secretary under subsection (d).</quote>; and</text> </subparagraph><subparagraph id="ID90cb679380cb454881bccfd88d19f42e"><enum>(B)</enum><text>by striking <quote>thirty-five</quote> and inserting <quote>40</quote>; and</text> </subparagraph></paragraph><paragraph id="ID8cd9f9bef4084ae58048c4464cf9b814"><enum>(2)</enum><text>in subsection (g), by striking <quote>, except</quote> and all that follows through the period at the end and inserting a period.</text> </paragraph></subsection><subsection id="ID80b5781a55654aa4aa79e8ac5f6f61cf"><enum>(b)</enum><header>First mortgages</header><text>Section 201(a) of the National Housing Act (12 U.S.C. 1707(a)) is amended by striking the semicolon and inserting <quote>or (3) a first mortgage given to secure the unpaid purchase price of a fee interest in, or long-term leasehold interest in, a 1 family unit in a multifamily project, including a project in which the dwelling units are attached, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project;</quote>.</text> </subsection></section><section id="ID0fc34aa7e60e4cdabf9c7f1ad5ed2d5f"><enum>110.</enum><header>Mutual Mortgage Insurance Fund</header> <subsection id="ID5b75bdbd84474901afacf075682c16b1"><enum>(a)</enum><header>Establishment of fund</header><text>Section 202(a) of the National Housing Act (12 U.S.C. 1708) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idD584EDDCE84F49BE806324FE0B6FFBB6" style="OLC"> <subsection id="IDebefaa20b4834f13af6a5ebd79888e7a"><enum>(a)</enum><header>Mutual mortgage insurance fund</header> <paragraph id="id57DB0974A4584E9B87C1C4D85916D121"><enum>(1)</enum><header>Establishment</header><text>Subject to the provisions of the Federal Credit Reform Act of 1990, there is hereby created a Mutual Mortgage Insurance Fund (referred to in this section as the <quote>Fund</quote>), which shall be used by the Secretary to carry out the provisions of this title with respect to mortgages insured under section 203. The Secretary is authorized to use amounts in the Fund to guarantee any mortgage insured under section 203.</text> </paragraph><paragraph id="ID01d946ed76bd4d1b9f83b1f5c8c8adda"><enum>(2)</enum><header>Authorization of appropriations</header><text>There are authorized to be appropriated such sums as are necessary for the cost of—</text> <subparagraph id="id24BDB2B4034C43028FC7F364905F9F6D"><enum>(A)</enum><text>loan guarantees authorized under this subsection; and</text> </subparagraph><subparagraph id="id28D1F08F2D054186B92C6C080F3618D8"><enum>(B)</enum><text>administering such loan guarantees.</text> </subparagraph></paragraph><paragraph id="IDfa7d4c3464ae4ddc99b90bba92e2fc72"><enum>(3)</enum><header>Limit on loan guarantees</header><text>Commitments to guarantee loans under the subsection may be made by the Secretary only to the extent that total loan principal, any part of which is guaranteed, does not exceed the amount specified in annual appropriations acts each year.</text> </paragraph><paragraph id="IDbb9674a75a604e269b30754d62f51fcf"><enum>(4)</enum><header>Annual independent actuarial study</header> <subparagraph id="ID4573e83c89c24220a8a65754c70db5d9"><enum>(A)</enum><header>Study and report</header><text>The Secretary shall—</text> <clause id="id0E88192B61094DA49792B8E254700E4A"><enum>(i)</enum><text>provide for an independent actuarial study of the Fund to be conducted annually; and</text> </clause><clause id="id2ADC8F4C1E1347EBA7274E9BC1F72041"><enum>(ii)</enum><text>report annually to the Congress regarding the financial status of the Fund.</text> </clause></subparagraph><subparagraph id="idFBF8F28B0F9A47DC9CD11A7E1A76BEBF"><enum>(B)</enum><header>Content of study</header><text>Each study required under subparagraph (A) shall analyze the financial position of the Fund and recommend adjustments to underwriting standards, program participation, or premiums, if necessary, to ensure that the Fund remains financially sound.</text> </subparagraph><subparagraph id="idA581788304F1414094513A27A045BD6A"><enum>(C)</enum><header>Timing of report</header><text>The Secretary shall submit a report required under subparagraph (A) to Congress each quarter, with the first report submitted on the later of—</text> <clause id="id63AF422E7727452798B840BDCB15F4AC"><enum>(i)</enum><text>the last day of the first quarter of fiscal year 2007; or</text> </clause><clause id="idB10D263A61874A7BB78482B0A5FDD86D"><enum>(ii)</enum><text>90 days after the date of enactment of this subsection.</text> </clause></subparagraph><subparagraph id="id366C1B47FD934466BA0D25472254FB94"><enum>(D)</enum><header>Additional requirements of the report</header><text>Each report required under subparagraph (A) shall detail—</text> <clause id="id2EA54078161D4B86B51C04D3FE757FF0"><enum>(i)</enum><text>the cumulative volume of loan guarantee commitments made for the fiscal year;</text> </clause><clause id="id03F9189E98C9421896851444375F80D6"><enum>(ii)</enum><text>the types of loans insured, categorized by risk;</text> </clause><clause id="id3AB3EE7653E44E5696BB34E1F08C6EC7"><enum>(iii)</enum><text>significant changes between actual and projected claim and prepayment activity;</text> </clause><clause id="idE777A2854E28424EAB664692D4CDAC95"><enum>(iv)</enum><text>projected versus actual loss rates; and</text> </clause><clause id="id3BD30F49AC0149598195178888D5C2AE"><enum>(v)</enum><text>updated projections of the annual subsidy rates to ensure that increases in risk to the Fund are identified and mitigated by adjustments to underwriting standards, program participation, or premiums, and the Fund's financial soundness is maintained.</text> </clause></subparagraph></paragraph><paragraph id="id3A0A07D999454D63BFE39B2096216F7E"><enum>(5)</enum><header>Additional responsibility</header><text>The Secretary shall ensure that the Fund remains financially sound.</text> </paragraph><paragraph id="IDe518bd3ef60645a794ce4961a4b79045"><enum>(6)</enum><header>Adjustment of premiums</header> <subparagraph id="IDb34e4067f29047f1b6df467ce5973a78"><enum>(A)</enum><header>Authority of the secretary</header><text>If, pursuant to the independent actuarial study of the Fund required under paragraph (4), the Secretary determines that the Fund is not meeting the operational goals established under subparagraph (B) or there is a substantial probability that the Fund will not maintain its established target subsidy rate, the Secretary may either make—</text> <clause id="idB8A6FA8A6E954FBEA0435B20AA5CEAAE"><enum>(i)</enum><text>programmatic adjustments under section 203 as necessary to reduce the risk to the Fund; or</text> </clause><clause id="id87DB91037F04410C8DF89BE8B7A0EB83"><enum>(ii)</enum><text>appropriate premium adjustments.</text> </clause></subparagraph><subparagraph id="ID9afbefe2faf14579816b223956d0c19f"><enum>(B)</enum><header>Operational goals</header><text>The operational goals of the Fund are—</text> <clause id="ID9ac8f5bd3f0048ecbc488524f002d8a4"><enum>(i)</enum><text>charging borrowers an appropriate premium for the risk that such borrower poses to the Fund;</text> </clause><clause id="ID67b03e1c82004cf084e20cd1f7e45ef2"><enum>(ii)</enum><text>minimizing the default risk to the Fund and to homeowners;</text> </clause><clause id="ID841ac0c7c2cb425ca3c80d99eaca8a3c"><enum>(iii)</enum><text>curtailing the impact of adverse selection on the Fund; and</text> </clause><clause id="IDfe0b08bc2dbb4369a8da7b0471acf36d"><enum>(iv)</enum><text>meeting the housing needs of the target mortgagors of the Fund.</text> </clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDb34aae049193477fae7766647e4f6dba"><enum>(b)</enum><header>Amendment to Section 205</header><text>Section 205 of the National Housing Act (12 U.S.C. 1711) is amended by striking subsections (g) and (h).</text> </subsection><subsection id="ID9e0abec1202d45b685ad4678b91b51e4"><enum>(c)</enum><header>Amendment to Section 203</header><text>Section 203(v) of the National Housing Act (12 U.S.C. 1709(v)) is amended by—</text> <paragraph id="ID2e939d7a184941eabeb97c0225a309d7"><enum>(1)</enum><text>striking <quote>Notwithstanding section 202 of this title, the</quote> and inserting <quote>The</quote>; and</text> </paragraph><paragraph id="ID129a70bd895946309080899580899174"><enum>(2)</enum><text>striking <quote>General Insurance Fund</quote> and all that follows through the period at the end and inserting <quote>Mutual Mortgage Insurance Fund.</quote>.</text> </paragraph></subsection><subsection id="IDab4661fd27e24fd5a921b11b5e91ac6f"><enum>(d)</enum><header>Amendments to General Insurance Fund</header><text>Section 519(e) of the National Housing Act (12 U.S.C. 1735c(e)) is amended by—</text> <paragraph id="IDcb90018d92784d85acf615e64bda7bcb"><enum>(1)</enum><text>striking <quote>203(b)</quote> and inserting <quote>203</quote>; and</text> </paragraph><paragraph id="ID962da9904f28433687dca3005a9563da"><enum>(2)</enum><text>striking <quote>(except</quote> and all that follows through <quote>203(i)</quote> and inserting <quote>except as determined by the Secretary</quote>.</text> </paragraph></subsection><subsection id="ID5375a5c44f024da496bc6449bfc95c8a"><enum>(e)</enum><header>Home equity conversion mortgages</header><text>Section 255(i)(2)(A) of the National Housing Act (12 U.S.C. 1715z–20(i)(2)A)) is amended by striking <quote>General Insurance Fund</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>.</text> </subsection></section><section id="ID53b6e93b3c0f4591989666c0ce6bd533"><enum>111.</enum><header>Hawaiian home lands and Indian reservations</header> <subsection id="ID77c35f6feb804f278eb3ec6e9b3ddd74"><enum>(a)</enum><header>Single family mortgage insurance</header><text>Section 247(c) of the National Housing Act (12 U.S.C. 1715z–12) is amended—</text> <paragraph id="idC4AD6B11C7244D2986CF0E493BC939C9"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">General Insurance Fund</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Mutual Mortgage Insurance Fund</header-in-text></quote>;</text> </paragraph><paragraph id="ID9e3943e65b6641e899678d610629e657"><enum>(2)</enum><text>in the first sentence, by striking <quote>General Insurance Fund established in section 519</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </paragraph><paragraph id="IDa5dc12c9330746ea82b0ee85210dd36a"><enum>(3)</enum><text>in the second sentence, by striking the comma and all that follows through the period at the end and inserting <quote>, except that all references in section 204 to section 203 shall be construed to refer to the section under which the mortgage is insured.</quote>.</text> </paragraph></subsection><subsection id="IDda56a049c6ce4d4d87b2dc19653bede9"><enum>(b)</enum><header>Mortgage insurance on Indian reservations</header><text>Section 248(f) of the National Housing Act (12 U.S.C. 1715z–13) is amended—</text> <paragraph id="id7CEAD93F558647BC96454E8D7205F5AF"><enum>(1)</enum><text>in the heading, by striking <quote><header-in-text level="subsection" style="OLC">General Insurance Fund</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">Mutual Mortgage Insurance Fund</header-in-text></quote>;</text> </paragraph><paragraph id="idBDC4F02C71E949579012FE33EE94587B"><enum>(2)</enum><text>in the first sentence, by striking <quote>General Insurance Fund established in section 519</quote> and inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3088454749FE410995B0BA9C2996CEF3"><enum>(3)</enum><text>in the second sentence, by striking the comma and all that follows through the period at the end and inserting <quote>, except that all references in section 204 to section 203 shall be construed to refer to the section under which the mortgage is insured.</quote>.</text> </paragraph></subsection></section><section id="IDddb5af9bab544927acfd4275cda8361b"><enum>112.</enum><header>Conforming and technical amendments</header> <subsection id="ID67ade9473b874a2489cce6abe227e617"><enum>(a)</enum><header>Repeal of sections</header><text>The following sections of the National Housing Act are repealed:</text> <paragraph id="IDee285375227a427eae11457afc8fb818"><enum>(1)</enum><text>Section 203(i) (12 U.S.C. 1709(i)).</text> </paragraph><paragraph id="ID2e84857d629e4ca5b312551117b8a4ed"><enum>(2)</enum><text>Section 203(o) (12 U.S.C. 1709(o)).</text> </paragraph><paragraph id="ID7e372df775f14a7ab3bf1e3c16b9deba"><enum>(3)</enum><text display-inline="yes-display-inline">Section 203(p) (12 U.S.C. 1709(p)).</text> </paragraph><paragraph id="ID242e61b5484744b39c682d66a8d49e41"><enum>(4)</enum><text>Section 203(q) (12 U.S.C. 1709(q)).</text> </paragraph><paragraph id="IDbe6c8956b42c461fa96d1af8bb40c2c4"><enum>(5)</enum><text>Section 222 (12 U.S.C. 1715m).</text> </paragraph><paragraph id="IDa991955e5d3f485791fc46fa881bc1b6"><enum>(6)</enum><text>Section 237 (12 U.S.C. 1715z–2).</text> </paragraph><paragraph id="ID45c94ef1400f4956833e37201109e20e"><enum>(7)</enum><text>Section 245 (12 U.S.C. 1715z–10).</text> </paragraph></subsection><subsection id="IDf39f299f80494074829e1646959a545c"><enum>(b)</enum><header>Definition of area</header><text>Section 203(u)(2)(A) of the National Housing Act (12 U.S.C. 1709(u)(2)(A)) is amended by striking <quote>shall</quote> and all that follows through the semicolon at the end and inserting <quote>means a metropolitan statistical area, as established by the Office of Management and Budget;</quote>.</text> </subsection><subsection id="ID4f3d27655c394d90968c06d10a79c414"><enum>(c)</enum><header>Definition of State</header><text>Section 201(d) of the National Housing Act (12 U.S.C. 1707(d)) is amended by striking <quote>the Trust Territory of the Pacific Islands</quote> and inserting <quote>the Northern Marianas Islands</quote>.</text> </subsection></section><section id="ID6bec93230633436fa6171cb675a06cec"><enum>113.</enum><header>Home equity conversion mortgages</header><text display-inline="no-display-inline">Section 255 of the National Housing Act (12 U.S.C. 1715z–20) is amended—</text> <paragraph id="ID40caa32620824856bc2670cc2f59843d"><enum>(1)</enum><text>in subsection (g)—</text> <subparagraph id="IDb8c12d2b67284af48c45e4a643671f95"><enum>(A)</enum><text>by striking the first sentence; and</text> </subparagraph><subparagraph id="IDeb36c39735c444bda116de9832d96c22"><enum>(B)</enum><text>by striking <quote>section 203(b)(2)</quote> and inserting <quote>section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act</quote>;</text> </subparagraph></paragraph><paragraph id="ID1b484be49ff24c2487403422251de369"><enum>(2)</enum><text>in subsection (i)(1)(C), by striking <quote>limitations</quote> and inserting <quote>limitation</quote>; and</text> </paragraph><paragraph id="ID6a8a482b3b1f4479b5b1a78903a1d2ce"><enum>(3)</enum><text>by adding a new subsection as follows:</text> <quoted-block display-inline="no-display-inline" id="id8AA1C45FCF12465193C786C897DA1279" style="OLC"> <subsection id="ID166f34e7fe834ba9b236047002eed558"><enum>(n)</enum><header>Authority for home purchase</header> <paragraph id="idB7DF760D6B3142B1925F31AC6ACF11D1"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision in this section, the Secretary may insure, upon application by a mortgagee, a home equity conversion mortgage upon such terms and conditions as the Secretary may prescribe, when the primary purpose of the home equity conversion mortgage is to enable an elderly mortgagor to purchase a 1 to 4 family dwelling in which the mortgagor will occupy or occupies one of the units.</text> </paragraph><paragraph id="IDd97bc00be02945dcb593baa332d206c8"><enum>(2)</enum><header>Limitation on principal obligation</header><text>A home equity conversion mortgage insured under paragraph (1) shall involve a principal obligation that does not exceed the dollar amount limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a residence of the applicable size.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="ID4a72df9e5cbc4660b6f00d9e3bf6051b"><enum>114.</enum><header>Conforming loan limit in disaster areas</header><text display-inline="no-display-inline">Section 203(h) of the National Housing Act (12 U.S.C. 1709) is amended—</text> <paragraph id="id8BB68E444AF741DFA469570D6C254023"><enum>(1)</enum><text>by striking <quote>Notwithstanding</quote> and inserting the following:</text> <quoted-block act-name="" display-inline="no-display-inline" id="idA34E4774C56749FFA2997B8CCE6BD7C2" style="OLC"> <paragraph id="id555465311504402B8B9845FC217B9049"><enum>(1)</enum><header>In general</header><text>Notwithstanding</text> </paragraph><after-quoted-block>;</after-quoted-block></quoted-block> </paragraph><paragraph id="idB149E2C5773C46458E669DC36669BC39"><enum>(2)</enum><text>by inserting after <quote>value of property</quote> the following: “plus any initial service charges, appraisal, inspection, and other fees in connection with the mortgage, as approved by the Secretary”; and</text> </paragraph><paragraph id="ID9578f123d80f48e3ae9c91df080eadb8"><enum>(3)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id3AD87D98DAEB44D3B7049F7528F9991E" style="OLC"> <paragraph id="id27395A163A8044EF9BDE130E2563980B"><enum>(2)</enum><header>Temporary agreements to insure mortgages</header><text>In any case in which the single family residence to be insured under this subsection is within a jurisdiction in which the President has declared a major disaster as described in paragraph (1), the Secretary is authorized for a temporary period not to exceed 36 months from the date of such Presidential declaration, to enter into agreements to insure a mortgage which involves a principal obligation of up to 100 percent of the dollar limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a single family residence, and not in excess of 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="ID3f21ba1e9e954bdfbff340e261ac88be"><enum>115.</enum><header>Savings provision</header><text display-inline="no-display-inline">Any mortgage insured under title II of the National Housing Act before the date of enactment of this title shall continue to be governed by the laws, regulations, orders, terms, and conditions to which it was subject to on the day prior to the date of enactment of this title.</text> </section><section id="id8E775242B5EC47DDA2373AA362F0C666"><enum>116.</enum><header>Implementation</header> <subsection id="ID60954d7ffdb64823843f7ad8374541bd"><enum>(a)</enum><header>In general</header><text>The Secretary shall by notice establish any additional requirements that may be necessary to immediately carry out the provisions of this title.</text> </subsection><subsection id="id7AE14DEA8AC44EB49B832AFCD34C986A"><enum>(b)</enum><header>Effect of notice</header><text>Any notice required under subsection (a) shall take effect upon the date of issuance of such notice.</text> </subsection></section><enum>II</enum><header>Manufactured housing mortgage insurance</header> <section id="ID99b1535b5c424d3f927af41fa8b49c43"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Federal Housing Administration Manufactured Housing Loan Act of 2006</short-title></quote>.</text> </section><section id="IDeb02c6d4fbb74eb59f20b658bef53b33"><enum>202.</enum><header>Findings and purposes</header> <subsection id="IDc590de8d9b4d445a8a29cb8c3640a261"><enum>(a)</enum><header>Findings</header><text>Congress finds that—</text> <paragraph id="ID4bd95f2996cd4a079ad262f528d9d7e4"><enum>(1)</enum><text>manufactured housing plays a vital role in providing housing for low- and moderate-income families in the United States;</text> </paragraph><paragraph id="ID86192c8ac1574be3acb1976a1512ad27"><enum>(2)</enum><text>the Federal Housing Administration title I insurance program for manufactured home loans traditionally has been a major provider of mortgage insurance for home-only transactions;</text> </paragraph><paragraph id="IDd4e6b8aaa57949f084c31ace739e5451"><enum>(3)</enum><text>the manufactured housing market is in the midst of a prolonged downturn which has resulted in a severe contraction of traditional sources of private lending for manufactured home purchases;</text> </paragraph><paragraph id="ID87cf8e3a172044a48b2b59aa63bc60f2"><enum>(4)</enum><text>during past downturns the Federal Housing Administration title I insurance program for manufactured homes has filled the lending void by providing stability until the private markets could recover;</text> </paragraph><paragraph id="ID589b693b8f69477db3d398c01895a2a6"><enum>(5)</enum><text>in 1992, during the manufactured housing industry's last major recession, over 30,000 manufactured home loans were insured under title I;</text> </paragraph><paragraph id="IDa8dfccd2660446b39d8f681e2b7ed2cc"><enum>(6)</enum><text>in 2004, fewer than 2,000 manufactured housing loans were insured under title I;</text> </paragraph><paragraph id="ID45698e8babb645b3a03c911a69ca5c3d"><enum>(7)</enum><text>the loan limits for title I manufactured housing loans have not been adjusted for inflation since 1992; and</text> </paragraph><paragraph id="ID1abff5641beb4f348e8859f37158fb55"><enum>(8)</enum><text>such problems with the title I program have resulted in an atrophied market for manufactured housing loans, leaving American families who have the most difficulty achieving homeownership without adequate financing options for home-only manufactured home purchases.</text> </paragraph></subsection><subsection id="IDc065f0d0cb6b45f0ad61f73bc79e5ab3"><enum>(b)</enum><header>Purposes</header><text>The purposes of this title are—</text> <paragraph id="IDd161130b9e6942fc877beb93cc9ecea1"><enum>(1)</enum><text>to provide adequate funding for the Federal Housing Administration-insured manufactured housing loans for low- and moderate-income homebuyers during all economic cycles in the manufactured housing industry;</text> </paragraph><paragraph id="ID2533331cd4dd48efa2aa42290ebc972a"><enum>(2)</enum><text>to modernize the Federal Housing Administration title I insurance program for manufactured housing loans to enhance participation by Ginnie Mae and the private lending markets; and</text> </paragraph><paragraph id="ID990cc5a689494cd1baeef5b408a7baa7"><enum>(3)</enum><text>to adjust the low loan limits for title I manufactured home loan insurance to reflect the increase in costs since such limits were last increased in 1992 and to index such limits to inflation.</text> </paragraph></subsection></section><section id="IDf51da6c62efa4b62a436447eedf2b713"><enum>203.</enum><header>Exception to limitation on financial institution portfolio</header> <subsection id="IDea2d24072a6f4deca267703e1d818ce9"><enum>(a)</enum><header>Insurance of financial institutions</header><text>The second sentence of section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is amended—</text> <paragraph id="id0D1306FA40CD4D55AB1174E6D1EDBD6F"><enum>(1)</enum><text>by striking <quote>In no case</quote> and inserting <quote>Other than in connection with a manufactured home or a lot on which to place such a home (or both), in no case</quote>; and</text> </paragraph><paragraph id="id5C852A7EA15D4007AD0BEA4BA50418EB"><enum>(2)</enum><text>by striking the colon and inserting a period.</text> </paragraph></subsection><subsection id="ID402af0c94958410585add8971267915d"><enum>(b)</enum><header>Clarification</header><text>The proviso in section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is amended by striking <quote><italic>Provided,</italic> that with</quote> and inserting <quote>With</quote>.</text> </subsection></section><section id="IDe5d028f374b3461fa4c803768e12ec67"><enum>204.</enum><header>Insurance benefits</header> <subsection id="ID884de32765fd416b8710b82876c66426"><enum>(a)</enum><header>Manufactured housing loans</header><text>Section 2(b) of the National Housing Act (12 U.S.C. 1703(b)), is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id35160A21D1F5434BB7F0CA73E0398A0B" style="OLC"> <paragraph id="ID7f55758eb6954473b161161eea09b5bf"><enum>(8)</enum><header>Insurance benefits for manufactured housing loans</header><text>Any contract of insurance with respect to loans, advances of credit, or purchases in connection with a manufactured home or a lot on which to place a manufactured home (or both) for a financial institution that is executed under this title after the date of the enactment of this provision by the Secretary shall be conclusive evidence of the eligibility of such financial institution for insurance, and the validity of any contract of insurance so executed shall be incontestable in the hands of the bearer from the date of the execution of such contract, except for fraud or misrepresentation on the part of such institution.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDd6119232f13a4f90a14ec26f33d8e793"><enum>(b)</enum><header>Applicability</header><text>The provisions of this section shall only apply to loans that are registered or endorsed for insurance after the date of enactment of this section.</text> </subsection></section><section id="IDe33441a1dc934ee0859d0bc402078dab"><enum>205.</enum><header>Maximum loan limits</header> <subsection id="ID5e267edadb264f5481966a671e774671"><enum>(a)</enum><header>Dollar amounts</header><text>Section 2(b)(1) of the National Housing Act (12 U.S.C. 1703(b)(1)) is amended—</text> <paragraph id="ID942b27abca3a4130b9da470f54050f2c"><enum>(1)</enum><text>in clause (ii) of subparagraph (A), by striking <quote>$17,500</quote> and inserting <quote>$24,500</quote>;</text> </paragraph><paragraph id="ID3d4bc646140f4a1f921560732be85c99"><enum>(2)</enum><text>in subparagraph (C), by striking <quote>$48,600</quote> and inserting <quote>$68,040</quote>;</text> </paragraph><paragraph id="ID41cff6f936ce44b88dcb4c3445851559"><enum>(3)</enum><text>in subparagraph (D), by striking <quote>$64,800</quote> and inserting <quote>$90,720</quote>;</text> </paragraph><paragraph id="ID297fe293b06e418cb21676830af09b1b"><enum>(4)</enum><text>in subparagraph (E), by striking <quote>$16,200</quote> and inserting <quote>$22,680</quote>; and</text> </paragraph><paragraph id="ID49f6ab469bc2419a96f414daa80489da"><enum>(5)</enum><text>by realigning subparagraphs (C), (D), and (E) 2 ems to the left so that the left margins of such subparagraphs are aligned with the margins of subparagraphs (A) and (B).</text> </paragraph></subsection><subsection id="IDd7466e1648754b4297600e357c81e41d"><enum>(b)</enum><header>Annual indexing</header><text>Section 2(b) of the National Housing Act (12 U.S.C. 1703(b)), as amended by section 204, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id022095500D0140689FDE9D30CB821CF3" style="OLC"> <paragraph id="IDd4aca2cc30b741daa33ccf7937608f4e"><enum>(9)</enum><header>Indexing</header> <subparagraph id="idCB53D1C5858B4BCCBCCBD0DA5761DBE4"><enum>(A)</enum><header>In general</header><text>The Secretary shall develop a method of indexing in order to annually adjust the loan limits established in subparagraphs (A)(ii), (C), (D), and (E) of this subsection.</text> </subparagraph><subparagraph id="id332049EC389D4B35967508C7B52F616A"><enum>(B)</enum><header>Basis of index</header><text>The index method developed under subparagraph (A) shall be based on the manufactured housing price data collected by the United States Census Bureau.</text> </subparagraph><subparagraph id="id4F1956173EC24906AEAE61007B368040"><enum>(C)</enum><header>Timing</header><text>The Secretary shall develop the index method required under subparagraph (A) not later than 1 year after the date of enactment of this paragraph.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="IDd245df5e0e6c41d6bc5d1555c4267329"><enum>(c)</enum><header>Technical and conforming changes</header><text>Section 2(b)(1) of the National Housing Act (12 U.S.C. 1703(b)(1)) is amended—</text> <paragraph id="ID6c267830b4454c76828f4ba473f9b2b1"><enum>(1)</enum><text>by striking <quote>No</quote> and inserting <quote>Except as provided in the last sentence of this paragraph, no</quote>; and</text> </paragraph><paragraph id="ID2337c06b18fe4ad39eadfd3701aa5965"><enum>(2)</enum><text>by adding the following flush text after subparagraph (G):</text> <quoted-block display-inline="no-display-inline" id="idBA3D04BE54C84356863D6BBA3D9DFCC0" style="OLC"> <quoted-block-continuation-text quoted-block-continuation-text-level="subsection">The Secretary shall, by regulation, increase the dollar amount limitations in subparagraphs (A)(ii), (C), (D), and (E) according to the index method developed in paragraph (9).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection></section><section id="ID97dc05c256264e9bb6ebceef2175d0dd"><enum>206.</enum><header>Insurance premiums</header><text display-inline="no-display-inline">Section 2(f) of the National Housing Act (12 U.S.C. 1703(f)) is amended—</text> <paragraph id="ID1e8de5fe7ddd460d8d8b3c8986c4948b"><enum>(1)</enum><text>by striking <quote>(f) The Secretary</quote> and by inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idDC8A6A51209F4D71860294EC613552DA" style="OLC"> <subsection id="idE25EB98E15854504BCDE95E59D5E44BC"><enum>(f)</enum><header>Insurance Premiums</header> <paragraph id="id0C87F27665EE4665AFCDD91D5348A329"><enum>(1)</enum><header>In general</header><text>The Secretary</text> </paragraph></subsection><after-quoted-block>; and</after-quoted-block></quoted-block> </paragraph><paragraph id="ID01cabfaebbda4281a04007765900021e"><enum>(2)</enum><text>by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="idE740F0AA18934033BAA2A595FE1C5317" style="OLC"> <paragraph id="ID3263a299da2b4bd0af455aa52f94d8e9"><enum>(2)</enum><header>Manufactured home loans</header> <subparagraph id="idF9D84C310917402BBB5BA4064F57F6B6"><enum>(A)</enum><header>Premium structure</header><text>Notwithstanding paragraph (1), in the case of a loan, advance of credit, or purchase in connection with a manufactured home or a lot on which to place such a home (or both), the Secretary may establish a mortgage insurance premium structure involving a single premium collected prior to the insurance of the mortgage or periodic payments, or both.</text> </subparagraph><subparagraph id="id973571630A484E2888AB12379C20F4B6"><enum>(B)</enum><header>Rate</header><text>The rate of premium for a mortgage under subparagraph (A) may vary during the mortgage term as long as the basis for determining the variable rate is determined prior to the execution of the mortgage.</text> </subparagraph><subparagraph id="id5D70941AD8DB4150992B590AA154E665"><enum>(C)</enum><header>Change in premiums</header><text>The Secretary may change a premium structure established under this paragraph if the change is not applied to any mortgage already executed.</text> </subparagraph><subparagraph id="id6EEEEB0F7D424700A776D323E7A0478E"><enum>(D)</enum><header>Notice</header><text>A premium structure shall be established or changed under this paragraph by providing notice to lenders and by providing notice to Congress at least 30 days prior to the date that the premium structure is to be established or changed.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></section><section id="IDf2e6e03935ba45fa951981a77d2ef123"><enum>207.</enum><header>Technical corrections</header> <subsection id="IDcd23e817076149338b62e77273347a33"><enum>(a)</enum><header>Dates</header><text>Section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is amended—</text> <paragraph id="id447104570BC9495BBDF09115203B9332"><enum>(1)</enum><text>by striking <quote>on and after July 1, 1939,</quote>; and</text> </paragraph><paragraph id="id7D25A9E160DC4878A462E9E3A8B78723"><enum>(2)</enum><text>by striking <quote>made after August 2, 1954</quote>.</text> </paragraph></subsection><subsection id="IDc1186c1f00774e08a4a0f5c15749414e"><enum>(b)</enum><header>Authority of the Secretary</header><text>Section 2(c) of the National Housing Act (12 U.S.C. 1703(c)) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idD985D81BFA6546419CEE42ABF5C8DCFB" style="OLC"> <subsection id="ID8943e5b896934915919b25e45a668d39"><enum>(c)</enum><header>Authority of the Secretary</header> <paragraph id="id560B7B5C7E9D412287E8B849044A6974"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of law, the Secretary is authorized—</text> <subparagraph id="id32608DBA21034E0F99194BB06E469DB0"><enum>(A)</enum><text>to deal with, complete, rent, renovate, modernize, insure, or assign or sell at public or private sale, or otherwise dispose of, for cash or credit in the discretion of the Secretary, and upon such terms and conditions and for such consideration as the Secretary shall determine to be reasonable, any real or personal property conveyed to or otherwise acquired by the Secretary, in connection with the payment of insurance heretofore or hereafter granted under this title, including any evidence of debt, contract, claim, personal property, or security assigned to or held by the Secretary in connection with the payment of insurance heretofore or hereafter granted under this section; and</text> </subparagraph><subparagraph id="idE7610BED9BE8446E80728F04324369C1"><enum>(B)</enum><text>to pursue to final collection, by way of compromise or otherwise, all claims assigned to or held by the Secretary and all legal or equitable rights accruing to the Secretary in connection with the payment of such insurance, including unpaid insurance premiums owed in connection with insurance made available by this title.</text> </subparagraph></paragraph><paragraph id="id406092204A42444D9CF9F50EC5FA53C8"><enum>(2)</enum><header>Rule of construction</header><text>Section 3709 of the Revised Statutes shall not be construed to apply to any contract of hazard insurance or to any purchase or contract for services or supplies on account of such property if the amount thereof does not exceed $25,000.</text> </paragraph><paragraph id="idA481F995B3794945852E660D826190DA"><enum>(3)</enum><header>Delegation of power</header> <subparagraph id="id9A0A06D7719D4C8FAA72E5DE2652A081"><enum>(A)</enum><header>In general</header><text>The power to convey and to execute in the name of the Secretary, deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real or personal property or any interest therein heretofore or hereafter acquired by the Secretary pursuant to the provisions of this title may be exercised by an officer appointed by the Secretary without the execution of any express delegation of power or power of attorney.</text> </subparagraph><subparagraph id="id53373247E962480F9E50D5641578D3A2"><enum>(B)</enum><header>Rule of construction</header><text>Nothing in this paragraph shall be construed to prevent the Secretary from delegating such power by order or by power of attorney, in the discretion of the Secretary, to any officer or agent the Secretary may appoint.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection></section>