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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2188 Introduced in Senate (IS)]

105th CONGRESS
  2d Session
                                S. 2188

  To amend section 203(b) of the National Housing Act relating to the 
                      calculation of downpayments.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 18, 1998

  Mr. Murkowski (for himself, Mr. Inouye, Mr. Akaka, and Mr. Stevens) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
  To amend section 203(b) of the National Housing Act relating to the 
                      calculation of downpayments.

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

SECTION 1. CALCULATION OF DOWNPAYMENT.

    (a) In General.--Section 203(b)(2) of the National Housing Act (12 
U.S.C. 1709(b)(2)) is amended--
            (1) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) except as otherwise provided in this 
                paragraph, not to exceed the sum of--
                            ``(i) the amount of the mortgage insurance 
                        premium paid at the time the mortgage is 
                        insured; and
                            ``(ii)(I) in the case of a mortgage for a 
                        property with an appraised value less than or 
                        equal to $50,000, 98.75 percent of the 
                        appraised value of the property;
                            ``(II) in the case of a mortgage for a 
                        property with an appraised value in excess of 
                        $50,000 but not in excess of $125,000, 97.65 
                        percent of the appraised value of the property;
                            ``(III) in the case of a mortgage for a 
                        property with an appraised value in excess of 
                        $125,000, 97.15 percent of the appraised value 
                        of the property; or
                            ``(IV) notwithstanding subclauses (II) and 
                        (III), in the case of a mortgage for a property 
                        with an appraised value in excess of $50,000 
                        that is located in a State for which the 
                        average closing cost exceeds 2.10 percent of 
                        the average, for the State, of the sale price 
                        of properties located in the State for which 
                        mortgages have been executed, 97.75 percent of 
                        the appraised value of the property;'';
            (2) in the first undesignated paragraph following 
        subparagraph (B)--
                    (A) in the first sentence, by inserting before the 
                period at the end the following: ``, and the term 
                `average closing cost' means, with respect to a State, 
                the average, for mortgages executed for properties that 
                are located within the State, of the total amounts (as 
                determined by the Secretary) of initial service 
                charges, appraisal, inspection, and other fees (as the 
                Secretary shall approve) that are paid in connection 
                with such mortgages''; and
                    (B) by striking the second sentence; and
            (3) in penultimate undesignated paragraph following 
        subparagraph (B)--
                    (A) in the second sentence, by striking ``the 
                preceding sentence'' and inserting ``this subsection''; 
                and
                    (B) by striking the first sentence.
    (b) Conforming Amendment.--Section 203(b) of the National Housing 
Act (12 U.S.C. 1709(b)) is amended by striking paragraph (10).
    (c) Applicability.--The amendments made by this section shall apply 
to a mortgage that is endorsed for insurance under the National Housing 
Act on or after the date of enactment of this Act.
                                 <all>
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