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Section 257 of the National
Housing Act (12 U.S.C. 1715z-23) is amended--
(A) by striking paragraph (1);
(B) in paragraph (2)(B), by
striking `90 percent' and inserting `93 percent';
(C) by striking paragraph (7);
(D) in paragraph (9), by
striking `by procuring' and all that follows through `by any
other method'; and
(E) by redesignating
paragraphs (2), (3), (4), (5), (6), (8), (9), (10), and (11)
as paragraphs (1), (2), (3), (4), (5), (6), (7), (8), and
(9), respectively;
(2) in subsection (h)(2), by
striking `, or in any case in which a mortgagor fails to make
the first payment on a refinanced eligible mortgage';
(3) by striking subsection (i) and
inserting the following new subsection:
`(i) Annual Premiums-
`(1) IN GENERAL- For each
refinanced eligible mortgage insured under this section, the
Secretary shall establish and collect an annual premium in an
amount equal to not less than 0.55 percent of the amount of the
remaining insured principal balance of the mortgage and not more
than 0.75 percent of such remaining insured principal balance,
as determined according to a schedule established by the Board
that assigns such annual premiums based upon the credit risk of
the mortgage.
`(2) REDUCTION OR TERMINATION
DURING MORTGAGE TERM- Notwithstanding paragraph (1), the
Secretary may provide that the annual premiums charged for
refinanced eligible mortgages insured under this section are
reduced over the term of the mortgage or that the collection of
such premiums is discontinued at some time during the term of
the mortgage, in a manner that is consistent with policies for
such reduction or discontinuation of annual premiums charged for
mortgages in accordance with section 203(c).';
(A) by striking the subsection
heading and inserting `Exit Fee';
(B) in paragraph (1), in the
matter preceding subparagraph (A), by striking `such sale or
refinancing' and inserting `the mortgage being insured under
this section'; and
(C) by striking paragraph (2);
(5) in subsection (s)(3)(A)(ii),
by striking `subsection (e)(1)(B) and such other' and inserting
`such';
(6) in subsection (v), by
inserting after the period at the end the following: `The Board
shall conform documents, forms, and procedures for mortgages
insured under this section to those in place for mortgages
insured under section 203(b) to the maximum extent possible
consistent with the requirements of this section.';
(7) in subsection (w)(1)(C), by
striking `(e)(4)(A)' and inserting `(e)(3)(A)'; and
(8) by adding at the end the
following new subsection:
`(x) Payment to Existing Loan Servicer-
The Board may establish a payment to the servicer of the existing
senior mortgage for every loan insured under the HOPE for Homeowners
Program.'. |
