I 

110TH CONGRESS 

1ST SESSION H. R. 1852 

To modernize and update the National Housing Act and enable the Federal 

Housing Administration to use risk-based pricing to more effectively 

reach underserved borrowers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 29, 2007 

Ms. WATERS (for herself and Mr. FRANK of Massachusetts) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To modernize and update the National Housing Act and 

enable the Federal Housing Administration to use riskbased pricing to more effectively reach underserved borrowers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Expanding American Homeownership Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Findings and purposes. 

Sec. 3. Maximum principal loan obligation. 


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Sec. 4. Extension of mortgage term. 

Sec. 5. Downpayment simplification. 

Sec. 6. Mortgage insurance premiums for zero- and lower-downpayment borrowers. 

Sec. 7. Mortgage insurance premiums for standard and higher-risk borrowers. 

Sec. 8. Risk-based mortgage insurance premiums. 

Sec. 9. Payment incentives. 

Sec. 10. Borrower protections for higher risk mortgages. 

Sec. 11. Annual reports on new programs and loss mitigation. 

Sec. 12. Rehabilitation loans. 

Sec. 13. Discretionary action. 

Sec. 14. Insurance of condominiums. 

Sec. 15. Mutual Mortgage Insurance Fund. 

Sec. 16. Hawaiian home lands and Indian reservations. 

Sec. 17. Conforming and technical amendments. 

Sec. 18. Home equity conversion mortgages. 

Sec. 19. Conforming loan limit in disaster areas. 

Sec. 20. Sense of Congress regarding technology for financial systems. 

Sec. 21. Multifamily housing mortgage limits in high cost areas. 

Sec. 22. Valuation of multifamily properties in noncompetitive sales by HUD 

to States and localities. 

Sec. 23. Use of FHA savings for affordable housing grant fund. 

Sec. 24. Savings provision. 

Sec. 25. Implementation. 

1 SEC. 2. FINDINGS AND PURPOSES. 

2 (a) FINDINGS.—The Congress finds that— 

3 (1) one of the primary missions of the Federal 

4 Housing Administration (FHA) single family mort5 gage insurance program is to reach borrowers who 

6 are underserved, or not served, by the existing con7 ventional mortgage marketplace; 

8 (2) the FHA program has a long history of in9 novation, which includes pioneering the 30-year self10 amortizing mortgage and a safe-to-seniors reverse 

11 mortgage product, both of which were once thought 

12 too risky to private lenders; 


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1 (3) the FHA single family mortgage insurance 

2 program traditionally has been a major provider of 

3 mortgage insurance for home purchases; 

4 (4) the FHA mortgage insurance premium 

5 structure, as well as FHA’s product offerings, 

6 should be revised to reflect FHA’s enhanced ability 

7 to determine risk at the loan level and to allow FHA 

8 to better respond to changes in the mortgage mar9 ket; 

10 (5) during past recessions, including the oil11 patch downturns in the mid-1980s, FHA remained 

12 a viable credit enhancer and was therefore instru13 mental in preventing a more catastrophic collapse in 

14 housing markets and a greater loss of homeowner 

15 equity; and 

16 (6) as housing price appreciation slows and in17 terest rates rise, many homeowners and prospective 

18 homebuyers will need the less-expensive, safer fi19 nancing alternative that FHA mortgage insurance 

20 provides. 

21 (b) PURPOSES.—The purposes of this Act are— 

22 (1) to provide flexibility to FHA to allow for 

23 the insurance of housing loans for low- and mod24 erate-income homebuyers during all economic cycles 

25 in the mortgage market; 


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1 (2) to modernize the FHA single family mort2 gage insurance program by making it more reflective 

3 of enhancements to loan-level risk assessments and 

4 changes to the mortgage market; and 

5 (3) to adjust the loan limits for the single fam6 ily mortgage insurance program to reflect rising 

7 house prices and the increased costs associated with 

8 new construction. 

9 SEC. 3. MAXIMUM PRINCIPAL LOAN OBLIGATION. 

10 Section 203(b)(2) of the National Housing Act (12 

11 U.S.C. 1709(b)(2)) is amended by striking subparagraph 

12 (A) and inserting the following new subparagraph: 

13 ‘‘(A) not to exceed the lesser of— 

14 ‘‘(i) in the case of a 1-family resi15 dence, the median 1-family house price in 

16 the area, as determined by the Secretary; 

17 and in the case of a 2-, 3-, or 4-family res18 idence, the percentage of such median 

19 price that bears the same ratio to such me20 dian price as the dollar amount limitation 

21 in effect under section 305(a)(2) of the 

22 Federal Home Loan Mortgage Corporation 

23 Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 

24 4-family residence, respectively, bears to 

25 the dollar amount limitation in effect 


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1 under such section for a 1-family resi2 dence; or 

3 ‘‘(ii) the dollar amount limitation de4 termined under such section 305(a)(2) for 

5 a residence of the applicable size; 

6 except that the dollar amount limitation in ef7 fect for any area under this subparagraph may 

8 not be less than the greater of (I) the dollar 

9 amount limitation in effect under this section 

10 for the area on October 21, 1998, or (II) 65 

11 percent of the dollar limitation determined 

12 under such section 305(a)(2) for a residence of 

13 the applicable size; and’’. 

14 SEC. 4. EXTENSION OF MORTGAGE TERM. 

15 Paragraph (3) of section 203(b) of the National 

16 Housing Act (12 U.S.C. 1709(b)(3)) is amended— 

17 (1) by striking ‘‘thirty-five years’’ and inserting 

18 ‘‘forty years’’; and 

19 (2) by striking ‘‘(or thirty years if such mort20 gage is not approved for insurance prior to construc21 tion)’’. 

22 SEC. 5. DOWNPAYMENT SIMPLIFICATION. 

23 Section 203(b) of the National Housing Act (12 

24 U.S.C. 1709(b)) is amended— 

25 (1) in paragraph (2)— 


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1 (A) by striking subparagraph (B) and in2 serting the following new subparagraph: 

3 ‘‘(B) not to exceed an amount equal to the 

4 sum of— 

5 ‘‘(i) the amount of the mortgage pre6 mium paid at the time the mortgage is in7 sured; and 

8 ‘‘(ii)(I) except as provided in sub9 clause (II), 97.75 percent of the appraised 

10 value of the property; or 

11 ‘‘(II) in the case only of a mortgage 

12 described in subsection (c)(3), the ap13 praised value of the property, plus any ini14 tial service charges, appraisal, inspection, 

15 and other fees in connection with the mort16 gage as approved by the Secretary.’’; 

17 (B) in the matter after and below subpara18 graph (B), by striking the second sentence (re19 lating to a definition of ‘‘average closing cost’’) 

20 and all that follows through ‘‘title 38, United 

21 States Code.’’; and 

22 (C) by striking the last undesignated para23 graph (relating to counseling with respect to 

24 the responsibilities and financial management 

25 involved in homeownership); and 


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1 (2) in paragraph (9), by striking the paragraph 

2 designation and all that follows through ‘‘Provided 

3 further, That for’’ and inserting the following: 

4 ‘‘(9) Except in the case of a mortgage described 

5 in subsection (c)(3), be executed by a mortgagor who 

6 shall have paid on account of the property, in cash 

7 or its equivalent, at least 3 percent of the Sec8 retary’s estimate of the cost of acquisition (excluding 

9 the mortgage insurance premium paid at the time 

10 the mortgage is insured). For’’. 

11 SEC. 6. MORTGAGE INSURANCE PREMIUMS FOR ZERO- AND 

12 LOWER-DOWNPAYMENT BORROWERS. 

13 Section 203(c) of the National Housing Act (12 

14 U.S.C. 1709(c) is amended by adding at the end the fol15 lowing new paragraph: 

16 ‘‘(3) ZERO- AND LOWER-DOWNPAYMENT BOR17 ROWERS.— 

18 ‘‘(A) APPLICABILITY.—This paragraph shall 

19 apply to any mortgage that— 

20 ‘‘(i) is secured by a 1- to 4-family dwelling; 

21 ‘‘(ii)(I) is an obligation of the Mutual 

22 Mortgage Insurance Fund or of the General In23 surance Fund pursuant to subsection (v) of this 

24 section; or 


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1 ‘‘(II) is insured under subsection (k) of 

2 this section or section 234(c); and 

3 ‘‘(iii)(I) is executed by a mortgagor who is 

4 a first-time homebuyer; and 

5 ‘‘(II)(aa) involves a principal obligation 

6 that does not comply with subclause (I) of sub7 section (b)(2)(B)(ii) (relating to loan-to-value 

8 ratio); or 

9 ‘‘(bb) is executed by a mortgagor who has 

10 not paid on account of the property, in cash or 

11 its equivalent, at least 3 percent of the Sec12 retary’s estimate of the cost of acquisition (ex13 cluding the mortgage insurance premium paid 

14 at the time the mortgage is insured). 

15 ‘‘(B) UP-FRONT PREMIUMS.—Except as pro16 vided in subparagraph (D), the amount of any single 

17 premium payment collected at the time of insurance 

18 may not exceed 3.0 percent of the amount of the 

19 original insured principal obligation of the mortgage. 

20 ‘‘(C) ANNUAL PREMIUMS.—Except as provided 

21 in subparagraph (D), the amount of any annual pre22 mium payment collected may not exceed 0.75 per23 cent of the remaining insured principal obligation of 

24 the mortgage. 


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1 ‘‘(D) ANNUAL REDETERMINATION OF PREMIUM

2 RATE.—The Secretary shall redetermine the rates of 

3 premiums not less than once every 12 months and 

4 may establish such rates upon any such redeter5 mination at an amount in excess of the amounts 

6 under subparagraphs (B) and (C), but only to the 

7 extent that such increased rates are commensurate 

8 with the additional credit risk associated with such 

9 a mortgage.’’. 

10 SEC. 7. MORTGAGE INSURANCE PREMIUMS FOR STANDARD 

11 AND HIGHER-RISK BORROWERS. 

12 Paragraph (2) of section 203(c) of the National 

13 Housing Act (12 U.S.C. 1709(c)(2)) is amended— 

14 (1) by striking the matter that precedes sub15 paragraph (A) and inserting the following: 

16 ‘‘(2) STANDARD-RISK MORTGAGES.—In the case of 

17 any mortgage that is secured by a 1- to 4-family dwelling, 

18 is an obligation of the Mutual Mortgage Insurance Fund 

19 or of the General Insurance Fund pursuant to subsection 

20 (v) of this section or is insured under subsection (k) of 

21 this section or section 234(c), for which the mortgagor has 

22 paid on account of the property, in cash or its equivalent, 

23 at least 3 percent of the Secretary’s estimate of the cost 

24 of acquisition (excluding the mortgage insurance premium 

25 paid at the time the mortgage is insured), and that inVerDate Aug 31 2005 05:48 Apr 05, 2007 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1852.IH H1852

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1 volves a principal obligation that complies with subclause 

2 (I) of subsection (b)(2)(B)(ii), the following requirements 

3 shall apply:’’; and 

4 (2) by adding at the end the following new sub5 paragraph: 

6 ‘‘(C) HIGHER-RISK BORROWERS.—The Sec7 retary shall establish underwriting standards, includ8 ing premium payments that comply with the require9 ments of this paragraph, that provide for insurance 

10 under this section of mortgages described in the 

11 matter in this paragraph preceding subparagraph 

12 (A) for which the mortgagor has a credit score 

13 equivalent to a FICO score of less than 560, and 

14 may insure, and make commitments to insure, such 

15 mortgages.’’. 

16 SEC. 8. RISK-BASED MORTGAGE INSURANCE PREMIUMS. 

17 Section 203(c) of the National Housing Act (12 

18 U.S.C. 1709(c)), as amended by the preceding provisions 

19 of this Act, is further amended by adding at the end the 

20 following new paragraphs: 

21 ‘‘(4) FLEXIBLE RISK-BASED PREMIUMS.—In the 

22 case of a mortgage referred to in paragraph (2)(C) or 

23 (3)(A) for which the loan application is received by the 

24 mortgagee on or after October 1, 2007: 


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1 ‘‘(A) IN GENERAL.—The Secretary may estab2 lish a mortgage insurance premium structure involv3 ing a single premium payment collected prior to the 

4 insurance of the mortgage or annual payments 

5 (which may be collected on a periodic basis), or both, 

6 subject to the requirements of subparagraph (B) and 

7 paragraph (5). Under such structure, the rate of 

8 premiums for such a mortgage may vary according 

9 to the credit risk associated with the mortgage and 

10 the rate of any annual premium for such a mortgage 

11 may vary during the mortgage term as long as the 

12 basis for determining the variable rate is established 

13 before the execution of the mortgage. The Secretary 

14 may change a premium structure established under 

15 this subclause but only to the extent that such 

16 change is not applied to any mortgage already exe17 cuted. 

18 ‘‘(B) ESTABLISHMENT AND ALTERATION OF

19 PREMIUM STRUCTURE.—A premium structure shall 

20 be established or changed under subparagraph (A) 

21 only by providing notice to mortgagees and to the 

22 Congress, at least 30 days before the premium 

23 structure is established or changed. 

24 ‘‘(C) ANNUAL REPORT REGARDING PRE25 MIUMS.—The Secretary shall submit a report to the 


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1 Congress annually setting forth the rate structures 

2 and rates established and altered pursuant to this 

3 paragraph during the preceding 12-month period 

4 and describing how such rates were determined. 

5 ‘‘(5) CONSIDERATIONS FOR PREMIUM STRUCTURE.— 

6 When establishing premiums for mortgages referred to in 

7 paragraph (2)(C), establishing premiums pursuant to 

8 paragraph (3), establishing a premium structure under 

9 paragraph (4), and when changing such a premium struc10 ture, the Secretary shall consider the following: 

11 ‘‘(A) The effect of the proposed premiums or 

12 structure on the Secretary’s ability to meet the oper13 ational goals of the Mutual Mortgage Insurance 

14 Fund as provided in section 202(a). 

15 ‘‘(B) Underwriting variables. 

16 ‘‘(C) The extent to which new pricing under the 

17 proposed premiums or structure has potential for ac18 ceptance in the private market. 

19 ‘‘(D) The administrative capability of the Sec20 retary to administer the proposed premiums or 

21 structure. 

22 ‘‘(E) The effect of the proposed premiums or 

23 structure on the Secretary’s ability to maintain the 

24 availability of mortgage credit and provide stability 

25 to mortgage markets. 


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1 ‘‘(6) AUTHORITY TO BASE PREMIUM PRICES ON

2 PRODUCT RISK.— 

3 ‘‘(A) AUTHORITY.—In establishing premium 

4 rates under paragraphs (2), (3), and (4), the Sec5 retary may provide for variations in such rates ac6 cording to the credit risk associated with the type of 

7 mortgage product that is being insured under this 

8 title, which may include providing that premium 

9 rates differ between fixed-rate mortgages and ad10 justable-rate mortgages insured pursuant to section 

11 251, between mortgages insured pursuant to section 

12 203(b) and mortgages for condominiums insured 

13 pursuant to section 234, and between such other 

14 products as the Secretary considers appropriate. 

15 ‘‘(B) LIMITATION.—Subparagraph (A) may not 

16 be construed to authorize the Secretary to establish, 

17 for any mortgage product, any mortgage insurance 

18 premium rate that does not comply with the require19 ments and limitations under paragraphs (2) through 

20 (5).’’. 

21 SEC. 9. PAYMENT INCENTIVES. 

22 Section 203(c) of the National Housing Act (12 

23 U.S.C. 1709(c)), as amended by the preceding provisions 

24 of this Act, is further amended by adding at the end the 

25 following new paragraph: 


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1 ‘‘(7) PAYMENT INCENTIVES.— 

2 ‘‘(A) AUTHORITY.—With respect to mortgages 

3 referred to in paragraph (2)(C) or (3): 

4 ‘‘(i) DISCRETIONARY 3-YEAR PAYMENT IN5 CENTIVE.—The Secretary may provide, in the 

6 discretion of the Secretary, that the payment 

7 incentive under subparagraph (B) shall apply 

8 upon the expiration of the 3-year period begin9 ning upon the time of insurance of such a mort10 gage. 

11 ‘‘(ii) MANDATORY 5-YEAR PAYMENT INCEN12 TIVE.—The Secretary shall provide that the 

13 payment incentive under subparagraph (B) ap14 plies upon the expiration of the 5-year period 

15 beginning upon the time of insurance of such a 

16 mortgage. 

17 ‘‘(B) PAYMENT INCENTIVE.—In the case of any 

18 mortgage to which the payment incentive under this 

19 subparagraph applies, if, during the period referred 

20 to in clause (i) or (ii) of subparagraph (A), as appli21 cable, all mortgage insurance premiums for such 

22 mortgage have been paid on a timely basis, upon the 

23 expiration of such period the Secretary shall— 


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1 ‘‘(i) reduce the amount of the annual pre2 mium payments otherwise due thereafter under 

3 such mortgage— 

4 ‘‘(I) in the case of a mortgage re5 ferred to in paragraph (3), to an amount 

6 that does not exceed the amount of the 

7 maximum annual premium allowable under 

8 paragraph (2)(B); and 

9 ‘‘(II) in the case of a mortgage re10 ferred to in paragraph (2)(C), to an 

11 amount that does not exceed the amount of 

12 the annual premium payable at the time of 

13 insurance of the mortgage on a mortgage 

14 of the same product type having the same 

15 terms, but for which the mortgagor has a 

16 credit score equivalent to a FICO score of 

17 560 or more; and 

18 ‘‘(ii) in the case only of a mortgage re19 ferred to in paragraph (2)(C), refund to the 

20 mortgagor, upon payment in full of the obliga21 tion of the mortgage, any amount by which the 

22 single premium payment for such mortgage col23 lected at the time of insurance exceeded the 

24 amount of the single premium payment charge25 able under paragraph (2)(A) at the time of inVerDate Aug 31 2005 05:48 Apr 05, 2007 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H1852.IH H1852

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1 surance for a mortgage of the same product 

2 type having the same terms, but for which the 

3 mortgagor has a credit score equivalent to a 

4 FICO score of 560 or more.’’. 

5 SEC. 10. BORROWER PROTECTIONS FOR HIGHER RISK 

6 MORTGAGES. 

7 (a) IN GENERAL.—Section 203(b) of the National 

8 Housing Act (12 U.S.C. 1709(b)) is amended by adding 

9 at the end the following new paragraph: 

10 ‘‘(10) BORROWER PROTECTIONS FOR CERTAIN

11 MORTGAGES.—Except as otherwise specifically pro12 vided in this paragraph, in the case of any mortgage 

13 referred to in paragraph (2)(C) or (3) of subsection 

14 (c), the following requirements shall apply: 

15 ‘‘(A) DISCLOSURES.— 

16 ‘‘(i) REQUIRED DISCLOSURES.—In ad17 dition to any disclosures that are otherwise 

18 required by law or by the Secretary for 

19 single family mortgages, the mortgagee 

20 shall disclose to the mortgagor the fol21 lowing information: 

22 ‘‘(I) AT APPLICATION.—At the 

23 time of application for the loan in24 volved in the mortgage— 


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1 ‘‘(aa) a list of counseling 

2 agencies approved by the Sec3 retary in the area of the appli4 cant; and 

5 ‘‘(bb) if the mortgagor is not 

6 provided counseling in accord7 ance with subparagraph (B), the 

8 information required under sub9 clauses (I), (II), and (III) of sub10 paragraph (B)(iii) to be provided 

11 to the mortgagor. 

12 ‘‘(II) AT EXECUTION.—At the 

13 time of entering into the mortgage— 

14 ‘‘(aa) the terms of the man15 datory 5-year payment incentive 

16 required under subsection 

17 (c)(7)(A)(ii); and 

18 ‘‘(bb) a statement that the 

19 mortgagor has a right under con20 tract to loss mitigation. 

21 ‘‘(III) OTHER INFORMATION.— 

22 Any other additional information that 

23 the Secretary determines is appro24 priate to ensure that the mortgagor 

25 has received timely and accurate inVerDate Aug 31 2005 05:48 Apr 05, 2007 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H1852.IH H1852

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1 formation about the program under 

2 paragraph (2)(C) or (3) of subsection 

3 (c), as applicable. 

4 ‘‘(ii) PENALTIES FOR FAILURE TO

5 PROVIDE REQUIRED DISCLOSURES.—The 

6 Secretary may establish and impose appro7 priate penalties for failure of a mortgagee 

8 to provide any disclosure required under 

9 clause (i). 

10 ‘‘(iii) NO PRIVATE RIGHT OF AC11 TION.—This subparagraph shall not create 

12 any private right of action on behalf of the 

13 mortgagor. 

14 ‘‘(B) COUNSELING.— 

15 ‘‘(i) ALLOWABLE REQUIREMENT.— 

16 The Secretary may, in the discretion of the 

17 Secretary, require that the mortgagor shall 

18 have received counseling that complies with 

19 the requirements of this subparagraph. 

20 ‘‘(ii) TERMS OF COUNSELING.—Coun21 seling under this subparagraph shall be 

22 provided— 

23 ‘‘(I) prior to application for the 

24 loan involved in the mortgage; 


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1 ‘‘(II) by a third party (other than 

2 the mortgagee) who is approved by 

3 the Secretary, with respect to the re4 sponsibilities and financial manage5 ment involved in homeownership; 

6 ‘‘(III) on an individual basis to 

7 the mortgagor by a representative of 

8 the approved third-party counseling 

9 entity; and 

10 ‘‘(IV) in person, to the maximum 

11 extent possible. 

12 ‘‘(iii) TOPICS.—In the case only of a 

13 mortgage referred to in subsection (c)(3), 

14 counseling under this subparagraph shall 

15 include providing to, and discussing with, 

16 the mortgagor— 

17 ‘‘(I) information regarding home18 ownership options other than a mort19 gage that is subject to this paragraph, 

20 other zero- or low-downpayment mort21 gage options that are or may become 

22 available to the mortgagor, the finan23 cial implications of entering into a 

24 mortgage (including a mortgage sub25 ject to this paragraph), and any other 


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1 information that the Secretary may 

2 require; 

3 ‘‘(II) a written disclosure that 

4 sets forth the amount and the per5 centage by which a property with a 

6 mortgage that is subject to this para7 graph must appreciate for the mort8 gagor to recover the principal amount 

9 of the mortgage, the costs financed 

10 under the mortgage, and the esti11 mated costs involved in selling the 

12 property, if the mortgagor were to sell 

13 the property on each of the second, 

14 fifth, and tenth anniversaries of the 

15 mortgage; and 

16 ‘‘(III) a written disclosure, as the 

17 Secretary shall require, that specifies 

18 the effective cost to a mortgagor of 

19 borrowing the amount by which the 

20 maximum amount that could be bor21 rowed under a mortgage that is re22 ferred to in subsection (c)(3) exceeds 

23 the maximum amount that could be 

24 borrowed under a mortgage insured 

25 under this subsection that is not a 


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1 mortgage referred to in such sub2 section, based on average closing costs 

3 with respect to such amount, as deter4 mined by the Secretary; such cost 

5 shall be expressed as an annual inter6 est rate over the first 5 years of a 

7 mortgage; the disclosure required 

8 under this subclause may be provided 

9 in conjunction with the notice re10 quired under subsection (f). 

11 ‘‘(iv) 2- AND 3-FAMILY RESI12 DENCES.—In the case of a mortgage in13 volving a 2- or 3-family residence, coun14 seling under this subparagraph shall in15 clude (in addition to the information re16 quired under clause (iii)) information re17 garding real estate property management. 

18 ‘‘(C) OPTION FOR NOTICE OF FORE19 CLOSURE PREVENTION COUNSELING AVAIL20 ABILITY.— 

21 ‘‘(i) OPTION.—To be eligible for in22 surance under this subsection, the mort23 gagee shall provide mortgagor, at the time 

24 of the execution of the mortgage, an op25 tional written agreement which, if signed 


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1 by the mortgagor, allows, but does not re2 quire, the mortgagee to provide notice de3 scribed in clause (ii) to a housing coun4 seling entity that has agreed to provide the 

5 notice and counseling required under 

6 clause (iii) and is approved by the Sec7 retary. 

8 ‘‘(ii) NOTICE TO COUNSELING AGEN9 CY.—The notice described in this clause, 

10 with respect to a mortgage, is notice, pro11 vided at the earliest time practicable after 

12 the mortgagor becomes 60 days delinquent 

13 with respect to any payment due under the 

14 mortgage, that the mortgagor is so delin15 quent and of how to contact the mort16 gagor. Such notice may only be provided 

17 once with respect to each delinquency pe18 riod for a mortgage. 

19 ‘‘(iii) NOTICE TO MORTGAGOR.—Upon 

20 notice from a mortgagee that a mortgagor 

21 is 60 days delinquent with respect to pay22 ments due under the mortgage, the hous23 ing counseling entity shall at the earliest 

24 time practicable notify the mortgagor of 

25 such delinquency, that the entity makes 


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1 available foreclosure prevention counseling 

2 that may assist the mortgagor in resolving 

3 the delinquency, and of how to contact the 

4 entity to arrange for such counseling. 

5 ‘‘(iv) ABILITY TO CURE.—Failure to 

6 provide the optional written agreement re7 quired under clause (i) may be corrected 

8 by sending such agreement to the mort9 gagor not later than the earliest time prac10 ticable after the mortgagor first becomes 

11 60 days delinquent with respect to pay12 ments due under the mortgage. Insurance 

13 provided under this subsection may not be 

14 terminated and penalties for such failure 

15 may not be prospectively or retroactively 

16 imposed if such failure is corrected in ac17 cordance with this clause. 

18 ‘‘(v) PENALTIES FOR FAILURE TO

19 PROVIDE AGREEMENT.—The Secretary 

20 may establish and impose appropriate pen21 alties for failure of a mortgagee to provide 

22 the optional written agreement required 

23 under clause (i). 

24 ‘‘(vi) LIMITATION ON LIABILITY OF

25 MORTGAGEE.—A mortgagee shall not incur 


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1 any liability or penalties for any failure of 

2 a housing counseling entity to provide no3 tice under clause (iii). 

4 ‘‘(vii) NO PRIVATE RIGHT OF AC5 TION.—This subparagraph shall not create 

6 any private right of action on behalf of the 

7 mortgagor. 

8 ‘‘(viii) DELINQUENCY PERIOD.—For 

9 purposes of this subparagraph, the term 

10 ‘delinquency period’ means, with respect to 

11 a mortgage, a period that begins upon the 

12 mortgagor becoming delinquent with re13 spect to payments due under the mortgage 

14 and ends upon the first subsequent occur15 rence of such payments under the mort16 gage becoming current or the property 

17 subject to the mortgage being foreclosed or 

18 otherwise disposed of.’’. 

19 SEC. 11. ANNUAL REPORTS ON NEW PROGRAMS AND LOSS 

20 MITIGATION. 

21 Section 540(b)(2) of the National Housing Act (12 

22 U.S.C. 1735f–18(b)(2)) is amended, by adding at the end 

23 the following new subparagraphs: 

24 ‘‘(C) The rates of default and foreclosure 

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1 gages insured pursuant to the programs for 

2 mortgage insurance under paragraphs (2)(C) 

3 and (3) of section 203(c). 

4 ‘‘(D) Actions taken by the Secretary dur5 ing the applicable collection period with respect 

6 to loss mitigation on mortgages insured pursu7 ant to section 203.’’. 

8 SEC. 12. REHABILITATION LOANS. 

9 Subsection (k) of section 203 of the National Hous10 ing Act (12 U.S.C. 1709(k)) is amended— 

11 (1) in paragraph (1), by striking ‘‘on’’ and all 

12 that follows through ‘‘1978’’; and 

13 (2) in paragraph (5)— 

14 (A) by striking ‘‘General Insurance Fund’’ 

15 the first place it appears and inserting ‘‘Mutual 

16 Mortgage Insurance Fund’’; and 

17 (B) in the second sentence, by striking the 

18 comma and all that follows through ‘‘General 

19 Insurance Fund’’. 

20 SEC. 13. DISCRETIONARY ACTION. 

21 The National Housing Act is amended— 

22 (1) in subsection (e) of section 202 (12 U.S.C. 

23 1708(e))— 


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1 (A) in paragraph (3)(B), by striking ‘‘sec2 tion 202(e) of the National Housing Act’’ and 

3 inserting ‘‘this subsection’’; and 

4 (B) by redesignating such subsection as 

5 subsection (f); 

6 (2) by striking paragraph (4) of section 203(s) 

7 (12 U.S.C. 1709(s)(4)) and inserting the following 

8 new paragraph: 

9 ‘‘(4) the Secretary of Agriculture;’’; and 

10 (3) by transferring subsection (s) of section 203 

11 (as amended by paragraph (2) of this section) to 

12 section 202, inserting such subsection after sub13 section (d) of section 202, and redesignating such 

14 subsection as subsection (e). 

15 SEC. 14. INSURANCE OF CONDOMINIUMS. 

16 (a) IN GENERAL.—Section 234 of the National 

17 Housing Act (12 U.S.C. 1715y) is amended— 

18 (1) in subsection (c)— 

19 (A) in the first sentence— 

20 (i) by striking ‘‘and’’ before ‘‘(2)’’; 

21 and 

22 (ii) by inserting before the period at 

23 the end the following: ‘‘, and (3) the 

24 project has a blanket mortgage insured by 

25 the Secretary under subsection (d)’’; and 


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1 (B) in clause (B) of the third sentence, by 

2 striking ‘‘thirty-five years’’ and inserting ‘‘forty 

3 years’’; and 

4 (2) in subsection (g), by striking ‘‘, except 

5 that’’ and all that follows and inserting a period. 

6 (b) DEFINITION OF MORTGAGE.—Section 201(a) of 

7 the National Housing Act (12 U.S.C. 1707(a)) is amend8 ed— 

9 (1) in clause (1), by striking ‘‘or’’ and inserting 

10 a comma; and 

11 (2) by inserting before the semicolon the fol12 lowing: ‘‘, or (c) a first mortgage given to secure the 

13 unpaid purchase price of a fee interest in, or long14 term leasehold interest in, a one-family unit in a 

15 multifamily project, including a project in which the 

16 dwelling units are attached, semi-detached, or de17 tached, and an undivided interest in the common 

18 areas and facilities which serve the project’’. 

19 SEC. 15. MUTUAL MORTGAGE INSURANCE FUND. 

20 (a) IN GENERAL.—Subsection (a) of section 202 of 

21 the National Housing Act (12 U.S.C. 1708(a)) is amended 

22 to read as follows: 

23 ‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.— 

24 ‘‘(1) ESTABLISHMENT.—Subject to the provi25 sions of the Federal Credit Reform Act of 1990, 


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1 there is hereby created a Mutual Mortgage Insur2 ance Fund (in this title referred to as the ‘Fund’), 

3 which shall be used by the Secretary to carry out the 

4 provisions of this title with respect to mortgages in5 sured under section 203. The Secretary may enter 

6 into commitments to guarantee, and may guarantee, 

7 such insured mortgages. 

8 ‘‘(2) LIMIT ON LOAN GUARANTEES.—The au9 thority of the Secretary to enter into commitments 

10 to guarantee such insured mortgages shall be effec11 tive for any fiscal year only to the extent that the 

12 aggregate original principal loan amount under such 

13 mortgages, any part of which is guaranteed, does 

14 not exceed the amount specified in appropriations 

15 Acts for such fiscal year. 

16 ‘‘(3) FIDUCIARY RESPONSIBILITY.—The Sec17 retary has a responsibility to ensure that the Mutual 

18 Mortgage Insurance Fund remains financially sound. 

19 ‘‘(4) ANNUAL INDEPENDENT ACTUARIAL

20 STUDY.—The Secretary shall provide for an inde21 pendent actuarial study of the Fund to be conducted 

22 annually, which shall analyze the financial position 

23 of the Fund. The Secretary shall submit a report 

24 annually to the Congress describing the results of 

25 such study and assessing the financial status of the 


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1 Fund. The report shall recommend adjustments to 

2 underwriting standards, program participation, or 

3 premiums, if necessary, to ensure that the Fund re4 mains financially sound. 

5 ‘‘(5) QUARTERLY REPORTS.—During each fiscal 

6 year, the Secretary shall submit a report to the Con7 gress for each quarter, which shall specify for mort8 gages that are obligations of the Fund— 

9 ‘‘(A) the cumulative volume of loan guar10 antee commitments that have been made during 

11 such fiscal year through the end of the quarter 

12 for which the report is submitted; 

13 ‘‘(B) the types of loans insured, cat14 egorized by risk; 

15 ‘‘(C) any significant changes between ac16 tual and projected claim and prepayment activ17 ity; 

18 ‘‘(D) projected versus actual loss rates; 

19 and 

20 ‘‘(E) updated projections of the annual 

21 subsidy rates to ensure that increases in risk to 

22 the Fund are identified and mitigated by ad23 justments to underwriting standards, program 

24 participation, or premiums, and the financial 

25 soundness of the Fund is maintained. 


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1 The first quarterly report under this paragraph shall 

2 be submitted on the last day of the first quarter of 

3 fiscal year 2008, or upon the expiration of the 90- 

4 day period beginning on the date of the enactment 

5 of the Expanding American Homeownership Act of 

6 2007, whichever is later. 

7 ‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursu8 ant to the independent actuarial study of the Fund 

9 required under paragraph (5), the Secretary deter10 mines that the Fund is not meeting the operational 

11 goals established under paragraph (8) or there is a 

12 substantial probability that the Fund will not main13 tain its established target subsidy rate, the Secretary 

14 may either make programmatic adjustments under 

15 section 203 as necessary to reduce the risk to the 

16 Fund, or make appropriate premium adjustments. 

17 ‘‘(7) OPERATIONAL GOALS.—The operational 

18 goals for the Fund are— 

19 ‘‘(A) to charge borrowers under loans that 

20 are obligations of the Fund an appropriate pre21 mium for the risk that such loans pose to the 

22 Fund; 

23 ‘‘(B) to minimize the default risk to the 

24 Fund and to homeowners; 


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1 ‘‘(C) to curtail the impact of adverse selec2 tion on the Fund; and 

3 ‘‘(D) to meet the housing needs of the bor4 rowers that the single family mortgage insur5 ance program under this title is designed to 

6 serve.’’. 

7 (b) OBLIGATIONS OF FUND.—The National Housing 

8 Act is amended as follows: 

9 (1) HOMEOWNERSHIP VOUCHER PROGRAM

10 MORTGAGES.—In section 203(v) (12 U.S.C. 

11 1709(v))— 

12 (A) by striking ‘‘Notwithstanding section 

13 202 of this title, the’’ and inserting ‘‘The’’; and 

14 (B) by striking ‘‘General Insurance Fund’’ 

15 the first place such term appears and all that 

16 follows and inserting ‘‘Mutual Mortgage Insur17 ance Fund.’’. 

18 (2) HOME EQUITY CONVERSION MORTGAGES.— 

19 Section 255(i)(2)(A) of the National Housing Act 

20 (12 U.S.C. 1715z–20(i)(2)(A)) is amended by strik21 ing ‘‘General Insurance Fund’’ and inserting ‘‘Mu22 tual Mortgage Insurance Fund’’. 

23 (c) CONFORMING AMENDMENTS.—The National 

24 Housing Act is amended— 


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1 (1) in section 205 (12 U.S.C. 1711), by striking 

2 subsections (g) and (h); and 

3 (2) in section 519(e) (12 U.S.C. 1735c(e)), by 

4 striking ‘‘203(b)’’ and all that follows through 

5 ‘‘203(i)’’ and inserting ‘‘203, except as determined 

6 by the Secretary’’. 

7 SEC. 16. HAWAIIAN HOME LANDS AND INDIAN RESERVA8 TIONS. 

9 (a) HAWAIIAN HOME LANDS.—Section 247(c) of the 

10 National Housing Act (12 U.S.C. 1715z–12) is amend11 ed— 

12 (1) by striking ‘‘General Insurance Fund estab13 lished in section 519’’ and inserting ‘‘Mutual Mort14 gage Insurance Fund’’; and 

15 (2) in the second sentence, by striking ‘‘(1) all 

16 references’’ and all that follows through ‘‘and (2)’’. 

17 (b) INDIAN RESERVATIONS.—Section 248(f) of the 

18 National Housing Act (12 U.S.C. 1715z–13) is amend19 ed— 

20 (1) by striking ‘‘General Insurance Fund’’ the 

21 first place it appears through ‘‘519’’ and inserting 

22 ‘‘Mutual Mortgage Insurance Fund’’; and 

23 (2) in the second sentence, by striking ‘‘(1) all 

24 references’’ and all that follows through ‘‘and (2)’’. 


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1 SEC. 17. CONFORMING AND TECHNICAL AMENDMENTS. 

2 (a) REPEALS.—The following provisions of the Na3 tional Housing Act are repealed: 

4 (1) Subsection (i) of section 203 (12 U.S.C. 

5 1709(i)). 

6 (2) Subsection (o) of section 203 (12 U.S.C. 

7 1709(o)). 

8 (3) Subsection (p) of section 203 (12 U.S.C. 

9 1709(p)). 

10 (4) Subsection (q) of section 203 (12 U.S.C. 

11 1709(q)). 

12 (5) Section 222 (12 U.S.C. 1715m). 

13 (6) Section 237 (12 U.S.C. 1715z–2). 

14 (7) Section 245 (12 U.S.C. 1715z–10). 

15 (b) DEFINITION OF AREA.—Section 203(u)(2)(A) of 

16 the National Housing Act (12 U.S.C. 1709(u)(2)(A)) is 

17 amended by striking ‘‘shall’’ and all that follows and in18 serting ‘‘means a metropolitan statistical area as estab19 lished by the Office of Management and Budget;’’. 

20 (c) DEFINITION OF STATE.—Section 201(d) of the 

21 National Housing Act (12 U.S.C. 1707(d)) is amended by 

22 striking ‘‘the Trust Territory of the Pacific Islands’’ and 

23 inserting ‘‘the Commonwealth of the Northern Mariana 

24 Islands’’. 


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1 SEC. 18. HOME EQUITY CONVERSION MORTGAGES. 

2 (a) IN GENERAL.—Section 255 of the National 

3 Housing Act (12 U.S.C. 1715z–20) is amended— 

4 (1) in subsection (g)— 

5 (A) by striking the first sentence; and 

6 (B) by striking ‘‘established under section 

7 203(b)(2)’’ and all that follows through ‘‘lo8 cated’’ and inserting ‘‘limitation established 

9 under section 305(a)(2) of the Federal Home 

10 Loan Mortgage Corporation Act for a 1-family 

11 residence’’; 

12 (2) in subsection (i)(1)(C), by striking ‘‘limita13 tions’’ and inserting ‘‘limitation’’; and 

14 (3) by adding at the end the following new sub15 section: 

16 ‘‘(n) AUTHORITY TO INSURE HOME PURCHASE

17 MORTGAGE.— 

18 ‘‘(1) IN GENERAL.—Notwithstanding any other 

19 provision in this section, the Secretary may insure, 

20 upon application by a mortgagee, a home equity con21 version mortgage upon such terms and conditions as 

22 the Secretary may prescribe, when the primary pur23 pose of the home equity conversion mortgage is to 

24 enable an elderly mortgagor to purchase a 1- to 4- 

25 family dwelling in which the mortgagor will occupy 

26 or occupies one of the units. 


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1 ‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.— 

2 A home equity conversion mortgage insured pursu3 ant to paragraph (1) shall involve a principal obliga4 tion that does not exceed the dollar amount limita5 tion determined under section 305(a)(2) of the Fed6 eral Home Loan Mortgage Corporation Act for a 

7 residence of the applicable size.’’. 

8 (b) MORTGAGES FOR COOPERATIVES.—Subsection 

9 (b) of section 255 of the National Housing Act (12 U.S.C. 

10 1715z–20(b)) is amended— 

11 (1) in paragraph (4)— 

12 (A) by inserting ‘‘a first or subordinate 

13 mortgage or lien’’ before ‘‘on all stock’’; 

14 (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; 

15 and 

16 (C) by inserting ‘‘a first mortgage or first 

17 lien’’ before ‘‘on a leasehold’’; and 

18 (2) in paragraph (5), by inserting ‘‘a first or 

19 subordinate lien on’’ before ‘‘all stock’’. 

20 (c) STUDY REGARDING MORTGAGE INSURANCE PRE21 MIUMS.—The Secretary of Housing and Urban Develop22 ment shall conduct a study regarding mortgage insurance 

23 premiums charged under the program under section 255 

24 of the National Housing Act (12 U.S.C. 1715z–20) for 


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1 insurance of home equity conversion mortgages to analyze 

2 and determine— 

3 (1) the effects of reducing the amounts of such 

4 premiums from the amounts charged as of the date 

5 of the enactment of this Act on— 

6 (A) costs to mortgagors; and 

7 (B) the financial soundness of the pro8 gram; and 

9 (2) the feasibility and effectiveness of exempt10 ing, from all the requirements under the program re11 garding payment of mortgage insurance premiums 

12 (including both up-front or annual mortgage insur13 ance premiums under section 203(c)(2) of such Act), 

14 any mortgage insured under the program under 

15 which part or all of the amount of future payments 

16 made to the homeowner are used for costs of a long17 term care insurance contract covering the mortgagor 

18 or members of the household residing in the mort19 gaged property. 

20 Not later than the expiration of the 12-month period be21 ginning on the date of the enactment of this Act, the Sec22 retary shall submit a report to the Congress setting forth 

23 the results and conclusions of the study. 


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1 SEC. 19. CONFORMING LOAN LIMIT IN DISASTER AREAS. 

2 Section 203(h) of the National Housing Act (12 

3 U.S.C. 1709) is amended— 

4 (1) by inserting after ‘‘property’’ the following: 

5 ‘‘plus any initial service charges, appraisal, inspec6 tion and other fees in connection with the mortgage 

7 as approved by the Secretary,’’; 

8 (2) by striking the second sentence (as added 

9 by chapter 7 of the Emergency Supplemental Appro10 priations Act of 1994 (Public Law 103–211; 108 

11 Stat. 12)); and 

12 (3) by adding at the end the following new sen13 tence: ‘‘In any case in which the single family resi14 dence to be insured under this subsection is within 

15 a jurisdiction in which the President has declared a 

16 major disaster to have occurred, the Secretary is au17 thorized, for a temporary period not to exceed 36 

18 months from the date of such Presidential declara19 tion, to enter into agreements to insure a mortgage 

20 which involves a principal obligation of up to 100 

21 percent of the dollar limitation determined under 

22 section 305(a)(2) of the Federal Home Loan Mort23 gage Corporation Act for a single family residence, 

24 and not in excess of 100 percent of the appraised 

25 value of the property plus any initial service charges, 


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1 appraisal, inspection and other fees in connection 

2 with the mortgage as approved by the Secretary.’’. 

3 SEC. 20. SENSE OF CONGRESS REGARDING TECHNOLOGY 

4 FOR FINANCIAL SYSTEMS. 

5 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

6 the following: 

7 (1) The Government Accountability Office has 

8 cited the FHA single family housing mortgage insur9 ance program as a ‘‘high-risk’’ program, with a pri10 mary reason being non-integrated and out-dated fi11 nancial management systems. 

12 (2) The ‘‘Audit of the Federal Housing Admin13 istration’s Financial Statements for Fiscal Years 

14 2004 and 2003’’, conducted by the Inspector Gen15 eral of the Department of Housing and Urban De16 velopment reported as a material weakness that 

17 ‘‘HUD/FHA’s automated data processing [ADP] 

18 system environment must be enhanced to more effec19 tively support FHA’s business and budget proc20 esses’’. 

21 (3) Existing technology systems for the FHA 

22 program have not been updated to meet the latest 

23 standards of the Mortgage Industry Standards 

24 Maintenance Organization and have numerous defi25 ciencies that lenders have outlined. 


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1 (4) Improvements to technology used in the 

2 FHA program will— 

3 (A) allow the FHA program to improve the 

4 management of the FHA portfolio, garner 

5 greater efficiencies in its operations, and lower 

6 costs across the program; 

7 (B) result in efficiencies and lower costs 

8 for lenders participating in the program, allow9 ing them to better use the FHA products in ex10 tending homeownership opportunities to higher 

11 credit risk or lower-income families, in a sound 

12 manner. 

13 (5) The Mutual Mortgage Insurance Fund op14 erates without cost to the taxpayers and generates 

15 revenues for the Federal Government. 

16 (b) SENSE OF CONGRESS.—It is the sense of the 

17 Congress that— 

18 (1) the Secretary of Housing and Urban Devel19 opment should use a portion of the funds received 

20 from premiums paid for FHA single family housing 

21 mortgage insurance that are in excess of the 

22 amounts paid out in claims to substantially increase 

23 the funding for technology used in such FHA pro24 gram; 


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1 (2) the goal of this investment should be to 

2 bring the technology used in such FHA program to 

3 the level and sophistication of the technology used in 

4 the conventional mortgage lending market, or to ex5 ceed such level; and 

6 (3) the Secretary of Housing and Urban Devel7 opment should report to the Congress not later than 

8 180 days after the date of the enactment of this Act 

9 regarding the progress the Department is making 

10 toward such goal and if progress is not sufficient, 

11 the resources needed to make greater progress. 

12 SEC. 21. MULTIFAMILY HOUSING MORTGAGE LIMITS IN 

13 HIGH COST AREAS. 

14 The National Housing Act is amended— 

15 (1) in sections 207(c)(3), 213(b)(2)(B)(i), 

16 221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 231(c)(2)(B), 

17 and 234(e)(3)(B) (12 U.S.C. 1713(c)(3), 

18 1715e(b)(2)(B)(i), 1715l(d)(3)(ii)(II), 

19 1715l(d)(4)(ii)(II), 1715v(c)(2)(B), and 

20 1715y(e)(3)(B))— 

21 (A) by striking ‘‘140 percent’’ each place 

22 such term appears and inserting ‘‘170 percent’’; 

23 and 


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1 (B) by striking ‘‘170 percent in high cost 

2 areas’’ each time place such term appears and 

3 inserting ‘‘215 percent in high cost areas’’; and 

4 (2) in section 220(d)(3)(B)(iii)(III) (12 U.S.C. 

5 1715k(d)(3)(B)(iii)(III)) by striking ‘‘206A’’ and all 

6 that follows through ‘‘project-by-project basis’’ and 

7 inserting the following: ‘‘206A of this Act) by not to 

8 exceed 170 percent in any geographical area where 

9 the Secretary finds that cost levels so require and by 

10 not to exceed 170 percent, or 215 percent in high 

11 cost areas, where the Secretary determines it nec12 essary on a project-by-project basis’’. 

13 SEC. 22. VALUATION OF MULTIFAMILY PROPERTIES IN 

14 NONCOMPETITIVE SALES BY HUD TO STATES 

15 AND LOCALITIES. 

16 Subtitle A of title II of the Deficit Reduction Act of 

17 2005 (Public Law 109–171; 120 Stat. 7) is amended by 

18 adding at the end the following new subsection: 

19 ‘‘SEC. 2004. VALUATION OF MULTIFAMILY PROPERTIES IN 

20 NONCOMPETITIVE SALES BY HUD TO STATES 

21 AND LOCALITIES. 

22 ‘‘Notwithstanding any other provision of law and with 

23 respect to any fiscal year, in determining the market value 

24 of any multifamily real property or multifamily loan for 

25 any noncompetitive sale to a State or local government 


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1 entity, the Secretary shall consider, but not be limited to, 

2 industry standard appraisal practices, including the cost 

3 of repairs needed to bring the property at least to min4 imum State and local code standards and of maintaining 

5 the existing affordability restrictions imposed by the Sec6 retary on the multifamily real property or multifamily 

7 loan.’’. 

8 SEC. 23. USE OF FHA SAVINGS FOR AFFORDABLE HOUSING 

9 GRANT FUND. 

10 There are authorized to be appropriated for each fis11 cal year, to an affordable housing fund available for use 

12 only for grants to provide affordable rental housing and 

13 affordable homeownership opportunities for low-income 

14 families, an amount equal to the net increase for such fis15 cal year in negative credit subsidy for the mortgage insur16 ance programs under title II of the National Housing Act 

17 resulting from this Act and the amendments made by this 

18 Act. 

19 SEC. 24. SAVINGS PROVISION. 

20 Any mortgage insured under title II of the National 

21 Housing Act before the date of enactment of this title shall 

22 continue to be governed by the laws, regulations, orders, 

23 and terms and conditions to which it was subject on the 

24 day before the date of the enactment of this Act. 


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1 SEC. 25. IMPLEMENTATION. 

2 The Secretary of Housing and Urban Development 

3 shall by notice establish any additional requirements that 

4 may be necessary to immediately carry out the provisions 

5 of this Act. The notice shall take effect upon issuance. 

Æ 


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