residential housing insurance

section 203 residential housing insurance Sec. 102. (a) (1) Section 203(b) (2) of the National Housing Act is amended by striking out all that precedes the first semicolon and inserting in lieu thereof the following: “(2) Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Commissioner shall approve) in an amount not to exceed $22,500 in the case of property upon which there is located a dwelling designed principally for a one-family residence; or $25,000 in the case of a two-family residence (whether or not such one-or two-family residence may be intended to be rented temporarily for school purposes)”. (2) Section 203(b) (2) of such Act is further amended— (A) by striking out “85 per centum” and inserting in lieu thereof “90 per centum”; and (B) by striking out “$16,000” each place it appears and inserting in lieu thereof “$18,000”. (3) Section 203(b) (2) of such Act is further amended by inserting after “unless the construction of the dwelling was completed more than one year prior to the application for mortgage insurance” the following: “or the dwelling was approved for guaranty, insurance, or direct loan under chapter 37 of title 38, United States Code, prior to the beginning of construction” (b) Section 203(b) (8) of such Act is amended by striking out the period at the end thereof and inserting in lieu thereof a colon and the following: “Provided, That such 85 per centum limitation shall not be applicable if the mortgagor and mortgagee assume responsibility in a manner satisfactory to the Commissioner for the reduction of the mortgage by an amount not less than 15 per centum of the outstanding principal amount thereof in the event the mortgaged property is not, prior to the due date of the eighteenth amortization payment of the mortgage, sold to a purchaser acceptable to the Commissioner who is the occupant of the property and who assumes and agrees to pay the mortgage indebtedness.”