Page:United States Statutes at Large Volume 94 Part 2.djvu/355
PUBLIC LAW 96-399—OCT. 8, 1980
94 STAT. 1633
monthly payment of principal and interest which the owner would be obligated to pay if the loan or advance of credit were to bear an interest rate determined by the Secretary which shall not be less than 12 per centum per annum. "(6) The Secretary may include in the payment to the mortgagee or other lender such amount, in addition to the amount computed under paragraph (4) or (5), as the Secretary deems appropriate to reimburse the mortgagee or other lender for its reasonable and necessary expenses in handling the mortgage, loan, or advance of credit. (7) The Secretary shall prescribe such regulations as the Secretary Regulations, deems necessary to assure that the sales price of, or other consideration paid in connection with, the purchase by a homeowner of the property with respect to which gissistance payments are to be made is not greater than the appraised value as determined by the Secretary. "(8) Assistance payments pursuant to paragraph (5) shall not be made with respect to more than 20 per centum of the total number of units with respect to which assistance is approved under this subsection. "(9) The Secretary may, in addition to mortgages insured under Mortgage subsection (i) or (j), insure, upon application by the mortgagee, a insurance. mortgage executed by a mortgagor who meets the eligibility requirements for assistance payments prescribed by the Secretary under paragraph (2). Commitments for the insurance of such mortgages may be issued by the Secretary prior to the date of their execution or disbursement thereon, upon such terms and conditions as the Secretary may prescribe. (10) To be eligible for insurance under this subsection, a mortgage Eligibility requirements. shall— "(A) be a first lien on real estate held in fee simple, or on a leasehold under a lease which meets terms and conditions established by the Secretary; "(B) have been made to, and be held by, a mortgagee approved by the Secretary as responsible and able to service the mortgage properly; "(C) involve a one- to four-family dwelling which has been approved by the Secretary prior to the beginning of construction, or if not so approved, has been completed within one year prior to the filing of the application for insurance and which has never been sold other than to the mortgagor; "(D) involve a principal residence the sales price of which does not exceed 82 per centum of the applicable msiximum principal obligation of a mortgage which may be insured in the area pursuant to section 203(b)(2), determined without regard to the Post, p. 1654. last sentence of such section; "(E) have maturity and amortization provisions satisfactory to the Secretary; "(F) bear interest (exclusive of premium charges for insurance, and service charges if any) at not to exceed the applicable maximum rate for mortgages insured pursuant to section 203(b); "(G) be executed by a mortgagor who shall have paid in cash or its equivalent, on account of the property, at least an amount equal to 3 per centum of the Secretary's estimate of the cost of acquisition; and ' (H) contain such other terms and conditions as the Secretary may prescribe. "(11) The Secretary shall, to the extent practicable, insure mort- Land and energy gages under this subsection which are secured by properties which conservation. contribute to the conservation of land and energy resources.