INSURANCE OF GRADUATED PAYMENT MORTGAGES.

SEC. 108. INSURANCE OF GRADUATED PAYMENT MORTGAGES. (a) Authority To Insure Refinancing.— Section 223(a)(7) of the National Housing Act is amended in the first proviso by inserting after “except that” the following: “(A) the principal amount of any such refinancing mortgage may equal the outstanding balance of an existing mortgage insured pursuant to section 245, if the amount of the monthly payment due under the refinancing mortgage is less than that due under the existing mortgage for the month in which the refinancing mortgage is executed; and (B)”. (b) Termination of Authority To Insure.— Section 245(b) of the National Housing Act is amended by adding at the end the following new sentence: “No loan or mortgage may be insured under this subsection after the date of the enactment of the Housing and Community Development Act of 1987, except pursuant to a commitment to insure entered into on or before such date.”.