12 2 STA T . 2 837PUBLIC LA W 11 0– 28 9—J UL Y 30 , 2008 a1-to4 - f a milydwe lli ngu nit , one unit of w h i c hthemo r tgagor will occu p ya s a primary residence, and to pro v ide for any future payments to the mortgagor, b ased on available e q uity, as authori z ed under subsection ( d ) ( 9 ) .‘ ‘( 2 ) LIM I TA TI ON ON PR IN C IPA L O B LI G ATION. —A home equity conversion mortgage insured pursuant to paragraph (1) shall involve a principal obligation that does not e x ceed the dollar amount limitation determined under section 305 (a)(2) of the F ederal H ome Loan M ortgage C orporation Act for a 1-family residence. ‘‘(n) REQU IREMENT S ON MORTGAGE O RIGINATORS.— ‘‘(1) I N GENERAL.— T he mortgagee and any other party that participates in the origination of a mortgage to be insured under this section shall— ‘‘(A) not participate in, be associated with, or employ any party that participates in or is associated with any other financial or insurance activity
or ‘‘( B ) demonstrate to the S ecretary that the mortgagee or other party maintains, or will maintain, firewalls and other safeguards designed to ensure that— ‘‘(i) individuals participating in the origination of the mortgage shall have no involvement with, or incen- tive to provide the mortgagor with, any other financial or insurance product; and ‘‘(ii) the mortgagor shall not be required, directly or indirectly, as a condition of obtaining a mortgage under this section, to purchase any other financial or insurance product. ‘‘(2) APPRO V ALO F OT H ER PARTIES.—All parties that partici- pate in the origination of a mortgage to be insured under this section shall be approved by the Secretary. ‘‘(o) P ROHIBITION AGAINST REQUIREMENTS TO PURCHASE A D DI- TIONAL PRODUCTS.—The mortgagor or any other party shall not be required by the mortgagee or any other party to purchase an insurance, annuity, or other similar product as a requirement or condition of eligibility for insurance under subsection (c), except for title insurance, hazard, flood, or other peril insurance, or other such products that are customary and normal under subsection (c), as determined by the Secretary. ‘‘(p) STUD Y TO D ETERMINE CONSUMER PROTECTIONS AND U NDER- W RITING STANDARDS.—The Secretary shall conduct a study to examine and determine appropriate consumer protections and underwriting standards to ensure that the purchase of products referred to in subsection (o) is appropriate for the consumer. In conducting such study, the Secretary shall consult with consumer advocates (including recognized experts in consumer protection), industry representatives, representatives of counseling organiza- tions, and other interested parties. ’ ’. (b) MORTGAGES FOR COOPERATIVES.—Subsection (b) of section 255 of the N ational Housing Act (12 U.S.C. 1 7 15z – 20(b)) is amended— (1) in paragraph (4)— (A) by inserting ‘‘a first or subordinate mortgage or lien’’ before ‘‘on all stoc k ’’; (B) by inserting ‘‘unit’’ after ‘‘dwelling’’; and (C) by inserting ‘‘a first mortgage or first lien’’ before ‘‘on a leasehold’’; and
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