CO-INSURANCE PROGRAM.

SEC. 414. CO-INSURANCE PROGRAM. (a) Repealer.— Section 244 of the National Housing Act is amended by striking subsection (c). (b) Co-insurance Amendments.— Section 244 of the National Housing Act is amended— (1) in subsection (h), by striking “coinsurance” each place it appears and inserting “co-insurance”; and (2) by adding at the end the following new subsection: “(i) Any mortgagee which enters into a contract of co-insurance under this section shall have the authority to assign its interest in any note or mortgage subject to a contract of co-insurance to a warehouse bank or other financial institution which provides interim funding for a loan co-insured under this section, and to retain the co-insurance risk of such note or mortgage, upon such terms and conditions as the Secretary shall prescribe.”.