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(3) by transferring subsection (s) of section 203 
(as amended by paragraph (2) of this section) to sec-
tion 202, inserting such subsection after subsection 
(d) of section 202, and redesignating such subsection 
as subsection (e). 
SEC. 2117. INSURANCE OF CONDOMINIUMS. 
(a) IN GENERAL.—Section 234 of the National Hous-
ing Act (12 U.S.C. 1715y) is amended— 
(1) in subsection (c), in the first sentence— 
(A) by striking ‘‘and’’ before ‘‘(2)’’; and 
(B) by inserting before the period at the end 
the following: ‘‘, and (3) the project has a blanket 
mortgage insured by the Secretary under sub-
section (d)’’; and 
(2) in subsection (g), by striking ‘‘, except that’’ 
and all that follows and inserting a period. 
(b) DEFINITION OF MORTGAGE.—Section 201(a) of the 
National Housing Act (12 U.S.C. 1707(a)) is amended— 
(1) before ‘‘a first mortgage’’ insert ‘‘(A)’’; 
(2) by striking ‘‘or on a leasehold (1)’’ and in-
serting ‘‘(B) a first mortgage on a leasehold on real 
estate (i)’’; 
(3) by striking ‘‘or (2)’’ and inserting ‘‘, or (ii)’’; 
and
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(4) by inserting before the semicolon the fol-
lowing: ‘‘, or (C) a first mortgage given to secure the 
unpaid purchase price of a fee interest in, or long- 
term leasehold interest in, real estate consisting of a 
one-family unit in a multifamily project, including a 
project in which the dwelling units are attached, or 
are manufactured housing units, semi-detached, or de-
tached, and an undivided interest in the common 
areas and facilities which serve the project’’. 
(c) DEFINITION OF REAL ESTATE.—Section 201 of the 
National Housing Act (12 U.S.C. 1707) is amended by add-
ing at the end the following new subsection: 
‘‘(g) The term ‘real estate’ means land and all natural 
resources and structures permanently affixed to the land, 
including residential buildings and stationary manufac-
tured housing. The Secretary may not require, for treatment 
of any land or other property as real estate for purposes 
of this title, that such land or property be treated as real 
estate for purposes of State taxation.’’. 
SEC. 2118. MUTUAL MORTGAGE INSURANCE FUND. 
(a) IN GENERAL.—Subsection (a) of section 202 of the 
National Housing Act (12 U.S.C. 1708(a)) is amended to 
read as follows: 
‘‘(a) MUTUAL MORTGAGE INSURANCE FUND.—
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‘‘(1) ESTABLISHMENT.—Subject to the provisions 
of the Federal Credit Reform Act of 1990, there is 
hereby created a Mutual Mortgage Insurance Fund 
(in this title referred to as the ‘Fund’), which shall be 
used by the Secretary to carry out the provisions of 
this title with respect to mortgages insured under sec-
tion 203. The Secretary may enter into commitments 
to guarantee, and may guarantee, such insured mort-
gages. 
‘‘(2) LIMIT ON LOAN GUARANTEES.—The author-
ity of the Secretary to enter into commitments to 
guarantee such insured mortgages shall be effective for 
any fiscal year only to the extent that the aggregate 
original principal loan amount under such mort-
gages, any part of which is guaranteed, does not ex-
ceed the amount specified in appropriations Acts for 
such fiscal year. 
‘‘(3) FIDUCIARY
RESPONSIBILITY.—The Sec-
retary has a responsibility to ensure that the Mutual 
Mortgage Insurance Fund remains financially sound. 
‘‘(4) 
ANNUAL
INDEPENDENT
ACTUARIAL 
STUDY.—The Secretary shall provide for an inde-
pendent actuarial study of the Fund to be conducted 
annually, which shall analyze the financial position 
of the Fund. The Secretary shall submit a report an-
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nually to the Congress describing the results of such 
study and assessing the financial status of the Fund. 
The report shall recommend adjustments to under-
writing standards, program participation, or pre-
miums, if necessary, to ensure that the Fund remains 
financially sound. The report shall also include an 
evaluation of the quality control procedures and accu-
racy of information utilized in the process of under-
writing loans guaranteed by the Fund. Such evalua-
tion shall include a review of the risk characteristics 
of loans based not only on borrower information and 
performance, but on risks associated with loans origi-
nated or funded by various entities or financial insti-
tutions. 
‘‘(5) QUARTERLY REPORTS.—During each fiscal 
year, the Secretary shall submit a report to the Con-
gress for each calendar quarter, which shall specify 
for mortgages that are obligations of the Fund— 
‘‘(A) the cumulative volume of loan guar-
antee commitments that have been made during 
such fiscal year through the end of the quarter 
for which the report is submitted; 
‘‘(B) the types of loans insured, categorized 
by risk;
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‘‘(C) any significant changes between actual 
and projected claim and prepayment activity; 
‘‘(D) projected versus actual loss rates; and 
‘‘(E) updated projections of the annual sub-
sidy rates to ensure that increases in risk to the 
Fund are identified and mitigated by adjust-
ments to underwriting standards, program par-
ticipation, or premiums, and the financial 
soundness of the Fund is maintained. 
The first quarterly report under this paragraph shall 
be submitted on the last day of the first quarter of fis-
cal year 2008, or on the last day of the first full cal-
endar quarter following the enactment of the Building 
American Homeownership Act of 2008, whichever is 
later. 
‘‘(6) ADJUSTMENT OF PREMIUMS.—If, pursuant 
to the independent actuarial study of the Fund re-
quired under paragraph (4), the Secretary determines 
that the Fund is not meeting the operational goals es-
tablished under paragraph (7) or there is a substan-
tial probability that the Fund will not maintain its 
established target subsidy rate, the Secretary may ei-
ther make programmatic adjustments under this title 
as necessary to reduce the risk to the Fund, or make 
appropriate premium adjustments.