118 STAT. 3616 PUBLIC LAW 108–454—DEC. 10, 2004 section 2011(d) of this title) in connection with the construction, alteration, or repair of such project.’’. (b) AUTHORIZATION FOR COMMERCIALLY-LEASED SPACE.—Sec- tion 2052(c)(1) is amended by striking ‘‘services’’ and inserting ‘‘serv- ices, other commercial activities,’’. SEC. 403. INCREASE IN MAXIMUM AMOUNT OF HOME LOAN GUARANTY FOR CONSTRUCTION AND PURCHASE OF HOMES AND ANNUAL INDEXING OF AMOUNT. (a) MAXIMUM LOAN GUARANTY BASED ON 100 PERCENT OF FREDDIE MAC CONFORMING LOAN RATE.—Section 3703(a)(1) is amended by striking ‘‘$60,000’’ each place it appears in subpara- graphs (A)(i)(IV) and (B) and inserting ‘‘the maximum guaranty amount (as defined in subparagraph (C))’’. (b) DEFINITION.—Such section is further amended by adding at the end the following new subparagraph: ‘‘(C) In this paragraph, the term ‘maximum guaranty amount’ means the dollar amount that is equal to 25 percent of the Freddie Mac conforming loan limit limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the year involved.’’. SEC. 404. EXTENSION OF AUTHORITY FOR GUARANTEE OF ADJUST- ABLE RATE MORTGAGES. Section 3707(a) is amended by striking ‘‘during fiscal years 1993, 1994, and 1995’’ and inserting ‘‘during fiscal years 1993 through 2008’’. SEC. 405. EXTENSION AND IMPROVEMENT OF AUTHORITY FOR GUAR- ANTEE OF HYBRID ADJUSTABLE RATE MORTGAGES. (a) EXTENSION OF AUTHORITY.—Subsection (a) of section 3707A is amended by striking ‘‘during fiscal years 2004 and 2005’’ and inserting ‘‘during fiscal years 2004 through 2008’’. (b) MODIFICATION OF INTEREST RATE ADJUSTMENT REQUIRE- MENTS.—Subsection (c) of such section is amended— (1) by redesignating paragraph (4) as paragraph (5); (2) by striking paragraph (3) and inserting the following new paragraphs: ‘‘(3) in the case of the initial contract interest rate adjustment— ‘‘(A) if the initial contract interest rate remained fixed for less than 5 years, be limited to a maximum increase or decrease of 1 percentage point; or ‘‘(B) if the initial contract interest rate remained fixed for 5 years or more, be limited to a maximum increase or decrease of such percentage point or points as the Sec- retary may prescribe; ‘‘(4) in the case of any single annual interest rate adjust- ment after the initial contract interest rate adjustment, be limited to a maximum increase or decrease of 1 percentage point; and’’; and (3) in paragraph (5), as so redesignated, by striking ‘‘5 percentage points’’ and all that follows and inserting ‘‘such number of percentage points as the Secretary shall prescribe for purposes of this section.’’. (c) NO EFFECT ON GUARANTEE OF LOANS UNDER HYBRID ADJUSTABLE RATE MORTGAGE GUARANTEE DEMONSTRATION 38 USC 3707A note. VerDate 11-MAY-2000 13:54 Nov 10, 2005 Jkt 029194 PO 00000 Frm 00150 Fmt 6580 Sfmt 6581 C:\STATUTES\2004\29194PT4.001 APPS10 PsN: 29194PT4
�
