LIMITATION ON USE OF SINGLE FAMILY MORTGAGE INSURANCE BY INVESTORS.

SEC. 1062. LIMITATION ON USE OF SINGLE FAMILY MORTGAGE INSURANCE BY INVESTORS. (a) Exemption From Occupancy Requirement.— Section 203(g)(3) of the National Housing Act (12 U.S.C. 1709(g)(3)) is amended— (1) by striking “or” at the end of subparagraph (D); (2) by striking the period at the end of subparagraph (E) and inserting “; or”; and (3) by adding at the end the following new subparagraph: “(F) a mortgagor that, pursuant to section 223(a)(7), is refinancing an existing mortgage insured under this Act for not more than the outstanding balance of the existing mortgage, if the amount of the monthly payment due under the refinancing mortgage is less than the amount due under the existing mortgage for the month in which the refinancing mortgage is executed.”. (b) Correction of Conforming Amendment.— Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) is amended to read as if the amendment made by section 406(b)(1)(B) of the Housing and Community Development Act of 1987 (101 Stat. 1900) had deleted instead the following: “to be occupied as the principal residence of the owner”.