•HR 1106 EH1S 
under this section derived from misrepresenta-
tions made by the mortgagor in the certifi-
cations and documentation required under this 
paragraph, subject to the discretion of the Sec-
retary.’’; 
(B) in paragraph (4)(A), by striking ‘‘; 
subject to standards established by the Board 
under subparagraph (B),’’; 
(C) in paragraph (7), by striking ‘‘and pro-
vided that’’ and all that follows through ‘‘new 
second lien’’ and inserting ‘‘and except that the 
Secretary may, under such terms and condi-
tions as the Secretary may establish, permit the 
establishment of a second lien on a property 
under an eligible mortgage to be insured, for 
the purpose of facilitating payment of closing or 
refinancing costs by a State or locality using 
funds provided under the HOME Investment 
Partnerships program under title II of the 
Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12721 et seq.) or the com-
munity development block grants program 
under title I of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5301 et
•HR 1106 EH1S 
seq.) or by a State or local housing finance 
agency’’; 
(D) in paragraph (9)— 
(i) by striking ‘‘by procuring (A) an 
income tax return transcript of the income 
tax return of the mortgagor, or (B)’’ and 
inserting ‘‘in accordance with procedures 
and standards that the Secretary shall es-
tablish, which may include requiring the 
mortgagee to procure’’; and 
(ii) by striking ‘‘and by any other 
method, in accordance with procedures and 
standards that the Board shall establish’’; 
(E) by striking subparagraph (10); 
(F) in paragraph (11), by inserting before 
the period at the end the following: ‘‘, except 
that the Secretary may provide exceptions to 
such latter requirement (relating to present 
ownership interest) for any mortgagor who has 
inherited a property or for any mortgagor who 
has relocated to a new jurisdiction, and is in 
the process of trying to sell such property or 
has been unable to sell such property due to ad-
verse market conditions’’;
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(G) by redesignating paragraph (11) as 
paragraph (10); and 
(H) by adding at the end: 
‘‘(11) BAN ON MILLIONAIRES.—The mortgagor 
shall not have a net worth, as of the date the mort-
gagor first applies for a mortgage to be insured 
under the Program under this section, that exceeds 
$1,000,000.’’; 
(4) in subsection (h)(2)— 
(A) by striking ‘‘The Board shall prohibit 
the Secretary from paying’’ and inserting ‘‘The 
Secretary shall not pay’’; and 
(B) by inserting after the period at the end 
the following: ‘‘In implementing this provision 
with respect to a failure by a mortgagor to 
make a first payment, the Secretary shall estab-
lish policies and timing of endorsements as con-
sistent as is possible with endorsement policies 
established with respect to mortgages insured 
under section 203(b)’’; 
(5) in subsection (i)— 
(A) by inserting ‘‘, after weighing maxi-
mization of participation with consideration of 
collection 
of 
premiums,’’ 
after 
‘‘Secretary 
shall’’;
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(B) in paragraph (1), by striking ‘‘equal to 
3 percent’’ and inserting ‘‘not more than 2 per-
cent’’; and 
(C) in paragraph (2), by striking ‘‘equal to 
1.5 percent’’ and inserting ‘‘not more than 1 
percent’’; 
(6) in subsection (k)— 
(A) by striking the subsection heading and 
inserting ‘‘EXIT FEE’’; 
(B) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘such sale 
or refinancing’’ and inserting ‘‘the mortgage 
being insured under this section’’; and 
(C) in paragraph (2), by striking ‘‘and the 
mortgagor’’ and all that follows through the 
end and inserting ‘‘may, upon any sale or dis-
position of the property to which the mortgage 
relates, be entitled to up to 50 percent of ap-
preciation, up to the appraised value of the 
home at the time when the mortgage being refi-
nanced under this section was originally made. 
The Secretary may share any amounts received 
under this paragraph with the holder of the eli-
gible mortgage refinanced under this section.’’;