CREDIT REVIEWS OF PERSONS ACQUIRING MORTGAGED PROPERTIES UNDER SINGLE FAMILY PROGRAM FOR LIFE OF MORTGAGE.

SEC 132. CREDIT REVIEWS OF PERSONS ACQUIRING MORTGAGED PROPERTIES UNDER SINGLE FAMILY PROGRAM FOR LIFE OF MORTGAGE. (a) In General.— Section 203(r) of the National Housing Act is amended— (1) by amending the first sentence to read as follows: “The Secretary shall take appropriate actions to reduce losses under the single-family mortgage insurance programs carried out under this title.”; and (2) by amending paragraphs (2) and (3) to read as follows: “(2) requiring that at least one person acquiring ownership of a one- to four-family residential property encumbered by a mortgage insured under this title be determined to be credit-worthy under standards prescribed by the Secretary, whether or not such person assumes personal liability under the mortgage (except that acquisitions by devise or descent shall not be subject to this requirement); and 103 STAT. 2027 “(3) in any case where personal liability under a mortgage is assumed, requiring that the original mortgagor be advised of the procedures by which he or she may be released from liability (b) Applicability.— The amendments made by subsection (a) shall apply only with respect to— (1) mortgages insured— (A) pursuant to a conditional commitment issued on or after the date of the enactment of this Act; or (B) in accordance with the direct endorsement program (24 C.F.R. 200.163), if the approved underwriter of the mortgage signs the appraisal report for the property on or after the date of the enactment of this Act; and (2) the approval of substitute mortgagors, if the original mortgagor was subject to such amendments. (c) Transition Provisions.—Any mortgage insurance provided under title II of the National Housing Act as it existed immediately before the date of the enactment of this Act, shall continue to be governed (to the extent applicable) by the provisions of section 203(r) of the National Housing Act, as such section existed immediately before such date.