Page:United States Statutes at Large Volume 116 Part 4.djvu/365

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PUBLIC LAW 107-326—DEC. 4, 2002 116 STAT. 2793 "(III) 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), a mortgage for a property with an appraised value in excess of $50,000 that is located in an area of the 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."; (C) by transferring and inserting the text of paragraph (10)(B) after the period at the end of the first sentence of the undesignated paragraph that immediately follows paragraph (2)(B) (relating to the definition of "area"); and (D) by striking paragraph (10); and (2) by inserting after subsection (e), the following: "(f) DISCLOSURE OF OTHER MORTGAGE PRODUCTS. — "(1) IN GENERAL.—In conjunction with any loan insured under this section, an original lender shall provide to each prospective borrower a disclosure notice that provides a 1- page analysis of mortgage products offered by that lender and for which the borrower would qualify. "(2) NOTICE. —The notice required under paragraph (1) shall include— "(A) a generic analysis comparing the note rate (and associated interest payments), insurance premiums, and other costs and fees that would be due over the life of the loan for a loan insured by the Secretary under subsection (b) with the note rates, insurance premiums (if applicable), and other costs and fees that would be expected to be due if the mortgagor obtained instead other mortgage products offered by the lender and for which the borrower would qualify with a similar loan-to-value ratio in connection with a conventional mortgage (as that term is used in section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) or section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as applicable), assuming prevailing interest rates; and "(B) a statement regarding when the requirement of the mortgagor to pay the mortgage insurance premiums for a mortgage insured under this section would terminate, or a statement that the requirement shall terminate only if the mortgage is refinanced, paid off, or otherwise terminated.". SEC. 3. CONFORMING AMENDMENTS. Section 245 of the National Housing Act (12 U.S.C. 1715z- 10) is amended— (1) in subsection (a), by striking ", or if the mortgagor" and all that follows through "case of veterans"; and (2) in subsection (b)(3), by striking ", or, if the" and all that follows through "for veterans,". SEC. 4. REPEAL OF GNMA GUARANTEE FEE INCREASE. Section 972 of the Higher Education Amendments of 1998 (Public Law 105-244; 112 Stat. 1837) is hereby repealed. 12 USC 1721 and note.