ELIMINATION OF PRIVATE INVESTOR-OWNERS FROM SINGLE FAMILY MORTGAGE INSURANCE PROGRAM.

SEC. 143. ELIMINATION OF PRIVATE INVESTOR-OWNERS FROM SINGLE FAMILY MORTGAGE INSURANCE PROGRAM. (a) Retention of Public and Nonprofit Investor Owners.—Section 203(g)(3) of the National Housing Act is amended— (1) in subparagraph (A), by striking the semicolon at the end and inserting the following: “, or any other State or local government or an agency thereof;”; and (2) in subparagraph (B), by striking the semicolon at the end and inserting the following: “, or other private nonprofit organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 and intends to sell or lease the mortgaged property to low or moderate-income persons, as determined by the Secretary;”. (b) Elimination of Private Investor-Owners.—Section 203(g) of the National Housing Act, as amended by subsection (a), is further amended— (1) by striking paragraph (2); and (2) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (c) Applicability.—The amendments made by this section 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, if the approved underwriter of the mortgagee 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. (d) 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 amended by subsections (a) and (b) as such provisions existed immediately before such date.