USE OF PRIVATE MORTGAGE INSURANCE.

SEC. 202. USE OF PRIVATE MORTGAGE INSURANCE. (a) In General.— Section 1.10(a)(1)) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)) is amended by adding at the end the following: “(D) Private mortgage insurance.— A loan on which private mortgage insurance is obtained may exceed 85 percent of the appraised value of the real estate security to the extent that the loan amount in excess of such 85 percent is covered by the insurance.”. (b) Conforming Amendment.— Section 1.10(a)(1)(A) of the Farm Credit Act of 1971 (12 U.S.C. 2018(a)(1)(A)) is amended by striking “paragraphs (2) and (3)” and inserting “subparagraphs (C) and (D)”.