§ 1715z-22. — Multifamily mortgage credit programs.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715z-22]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715z-22. Multifamily mortgage credit programs
(a) In general
The Secretary of Housing and Urban Development (hereinafter referred
to as the ``Secretary'') shall carry out programs through the Federal
Housing Administration to provide new forms of Federal credit
enhancement for multifamily loans. In carrying out the programs, the
Secretary shall include an evaluation of the effectiveness of entering
into partnerships or other contractual arrangements including
reinsurance and risk-sharing agreements with State or local housing
finance agencies, the Federal Housing Finance Board, the Federal
National Mortgage Association, the Federal Home Loan Mortgage
Corporation, qualified financial institutions, and other State or local
mortgage insurance companies or bank lending consortia.
(b) Risk-sharing program
(1) In general
The Secretary shall carry out a program in conjunction with
qualified participating entities to provide Federal credit
enhancement for loans for affordable multifamily housing through a
system of risk-sharing agreements with such entities.
(2) Program requirements
(A) In general
In carrying out the program under this subsection, the
Secretary shall enter into risk-sharing agreements with
qualified participating entities.
(B) Mortgage insurance and reinsurance
Agreements under subparagraph (A) may provide for (i)
mortgage insurance through the Federal Housing Administration of
loans for affordable multifamily housing originated by or
through, or purchased by, qualified participating entities, and
(ii) reinsurance, including reinsurance of pools of loans, on
affordable multifamily housing. In entering into risk-sharing
agreements under this subsection covering mortgages, the
Secretary may give preference to mortgages that are not already
in the portfolios of qualified participating entities.
(C) Risk apportionment
Agreements entered into under this subsection between the
Secretary and a qualified participating entity shall specify the
percentage of loss that each of the parties to the agreement
will assume in the event of default of the insured or reinsured
multifamily mortgage. Such agreements shall specify that the
qualified participating entity and the Secretary shall share any
loss in accordance with the risk-sharing agreement.
(D) Reimbursement capacity
Agreements entered into under this subsection between the
Secretary and a qualified participating entity shall provide
evidence acceptable to the Secretary of the capacity of such
entity to fulfill any reimbursement obligations made pursuant to
this subsection. Evidence of such capacity which may be
considered by the Secretary may include--
(i) a pledge of the full faith and credit of a qualified
participating entity to fulfill any obligations entered into
by the entity;
(ii) reserves pledged or otherwise restricted by the
qualified participating entity in an amount equal to an
agreed upon percentage of the loss assumed by the entity
under subparagraph (C);
(iii) funds pledged through a State or local guarantee
fund; or
(iv) any other form of evidence mutually agreed upon by
the Secretary and the qualified participating entity.
(E) Underwriting standards
The Secretary shall allow any qualified participating entity
to use its own underwriting standards and loan terms and
conditions for purposes of underwriting loans to be insured
under this subsection, except as provided in this section,
without further review by the Secretary, except that the
Secretary may impose additional underwriting criteria and loan
terms and conditions for contractual agreements where the
Secretary retains more than 50 percent of the risk of loss. Any
financing permitted on property insured under this subsection
other than the first mortgage shall be expressly subordinate to
the insured mortgage.
(F) Authority of Secretary
The Secretary, upon request of a qualified participating
entity, may insure or reinsure and make commitments to insure or
reinsure under this section any mortgage, advance, loan, or pool
of mortgages otherwise eligible under this section, pursuant to
a risk-sharing agreement providing that the qualified
participating entity will carry out (under a delegation or
otherwise, and with or without compensation, but subject to
audit, exception, or review requirements) such credit approval,
appraisal, inspection, issuance of commitments, approval of
insurance of advances, cost certification, servicing, property
disposition, or other functions as the Secretary shall approve
as consistent with the purpose of this section. All appraisals
of property for mortgage insurance under this section shall be
completed by a Certified General Appraiser in accordance with
the Uniform Standards of Professional Appraisal Practice.
(G) Disclosure of records
Qualified participating entities shall make available to the
Secretary or the Secretary's designee, at the Secretary's
request, such financial and other records as the Secretary deems
necessary for purposes of review and monitoring for the program
under this section.
(3) Development of alternatives
The Secretary shall develop and assess a variety of risk-sharing
alternatives, including arrangements under which the Secretary
assumes an appropriate share of the risk related to long-term
mortgage loans on newly constructed or acquired multifamily rental
housing, mortgage refinancings, bridge financing for construction,
and other forms of multifamily housing mortgage lending that the
Secretary deems appropriate to carry out the purposes of this
subsection. Such alternatives shall be designed--
(A) to ensure that other parties bear a share of the risk,
in percentage amount and in position of exposure, that is
sufficient to create strong, market-oriented incentives for
other participating parties to maintain sound underwriting and
loan management practices;
(B) to develop credit mechanisms, including sound
underwriting criteria, processing methods, and credit
enhancements, through which resources of the Federal Housing
Administration can assist in increasing multifamily housing
lending as needed to meet the expected need in the United
States;
(C) to provide a more adequate supply of mortgage credit for
sound multifamily rental housing projects in underserved urban
and rural markets;
(D) to encourage major financial institutions to expand
their participation in mortgage lending for sound multifamily
housing, through means such as mitigating uncertainties
regarding actions of the Federal Government (including the
possible failure to renew short-term subsidy contracts);
(E) to increase the efficiency, and lower the costs to the
Federal Government, of processing and servicing multifamily
housing mortgage loans insured by the Federal Housing
Administration; and
(F) to improve the quality and expertise of Federal Housing
Administration staff and other resources, as required for sound
management of reinsurance and other market-oriented forms of
credit enhancement.
(4) Eligibility standards
The Secretary shall establish and enforce standards for
eligibility under this subsection of qualified participating
entities under this subsection, as the Secretary determines to be
appropriate.
(5) Insurance authority
Using any authority provided in appropriation Acts to insure
mortgages under the National Housing Act [12 U.S.C. 1701 et seq.],
the Secretary may enter into commitments under this subsection for
risk-sharing units.
(6) Fees
The Secretary shall establish and collect premiums and fees
under this subsection as the Secretary determines appropriate to (A)
achieve the purpose of this subsection, and (B) compensate the
Federal Housing Administration for the risks assumed and related
administrative costs.
(7) Non-Federal participation
The Secretary shall carry out this subsection, to the maximum
extent practicable, with the participation of well-established
residential mortgage originators, financial institutions that invest
in multifamily housing mortgages, multifamily housing sponsors, and
such other private sector experts in multifamily housing finance as
the Secretary determines to be appropriate.
(8) Prohibition on Ginnie Mae securitization
The Government National Mortgage Association shall not
securitize any multifamily loans insured or reinsured under this
subsection.
(9) Qualification as affordable housing
Multifamily housing securing loans insured or reinsured under
this subsection shall qualify as affordable only if the housing is
occupied by families and bears rents not greater than the gross rent
for rent-restricted residential units as determined under section
42(g) of title 26.
(10) Certification of subsidy layering compliance
The requirements of section 3545(d) of title 42 may be satisfied
in connection with a commitment to insure a mortgage under this
subsection by a certification by a housing credit agency (including
an entity established by a State that provides mortgage insurance)
to the Secretary that the combination of assistance within the
jurisdiction of the Secretary and other government assistance
provided in connection with a property for which a mortgage is to be
insured shall not be any greater than is necessary to provide
affordable housing.
(11) Implementation
The Secretary shall take any administrative actions necessary to
initiate the program under this subsection.
(c) Housing finance agency program
(1) In general
The Secretary shall carry out a specific program in conjunction
with qualified housing finance agencies (including entities
established by States that provide mortgage insurance) to provide
Federal credit enhancement for loans for affordable multifamily
housing through a system of risk-sharing agreements with such
agencies.
(2) Program requirements
(A) In general
In carrying out the program authorized under this
subsection, the Secretary shall enter into risk-sharing
agreements with qualified housing finance agencies.
(B) Mortgage insurance
Agreements under subparagraph (A) shall provide for full
mortgage insurance through the Federal Housing Administration of
the loans for affordable multifamily housing originated by or
through qualified housing finance agencies and for reimbursement
to the Secretary by such agencies for either all or a portion of
the losses incurred on the loans insured.
(C) Risk apportionment
Agreements entered into under this subsection between the
Secretary and a qualified housing finance agency shall specify
the percentage of loss that each of the parties to the agreement
will assume in the event of default of the insured multifamily
mortgage. Such agreements shall specify that the qualified
housing finance agency and the Secretary shall share any loss in
accordance with the risk-sharing agreement.
(D) Reimbursement capacity
Agreements entered into under this subsection between the
Secretary and a qualified housing finance agency shall provide
evidence of the capacity of such agency to fulfill any
reimbursement obligations made pursuant to this subsection.
Evidence of such capacity may include--
(i) a pledge of the full faith and credit of a qualified
State or local agency to fulfill any obligations entered
into by the qualified housing finance agency;
(ii) reserves pledged or otherwise restricted by the
qualified housing finance agency in an amount equal to an
agreed upon percentage of the loss assumed by the housing
finance agency under subparagraph (C);
(iii) funds pledged through a State or local guarantee
fund; or
(iv) any other form of evidence mutually agreed upon by
the Secretary and the qualified housing finance agency.
(E) Underwriting standards
The Secretary shall allow any qualified housing finance
agency to use its own underwriting standards and loan terms and
conditions for purposes of underwriting loans to be insured
under this subsection without further review by the Secretary,
except that the Secretary may impose additional underwriting
criteria and loan terms and conditions for contractual
agreements where the Secretary retains more than 50 percent of
the risk of loss.
(F) Disclosure of records
Qualified housing finance agencies shall make available to
the Secretary such financial and other records as the Secretary
deems necessary for program review and monitoring purposes.
(3) Mortgage insurance premiums
The Secretary shall establish a schedule of insurance premium
payments for mortgages insured under this subsection based on the
percentage of loss the Secretary may assume. Such schedule shall
reflect lower or nominal premiums for qualified housing finance
agencies that assume a greater share of the risk apportioned
according to paragraph (2)(C).
(4) Insurance authority
Using any authority provided in appropriation Acts to insure
mortgages under the National Housing Act [12 U.S.C. 1701 et seq.],
the Secretary may enter into commitments under this subsection for
risk-sharing units.
(5) Identity of interest
Notwithstanding any other provision of law, the Secretary shall
not apply identity of interest provisions to agreements entered into
with qualified State housing finance agencies under this subsection.
(6) Prohibition on Ginnie Mae securitization
The Government National Mortgage Association shall not
securitize any multifamily loans insured under this subsection.
(7) Qualification as affordable housing
Multifamily housing securing loans insured under this subsection
shall qualify as affordable only if the housing is occupied by
families and bears rents not greater than the gross rent for rent-
restricted residential units as determined under section 42(g) of
title 26.
(8) Regulations
Not later than 90 days after October 28, 1992, the Secretary
shall issue such regulations as may be necessary to carry out this
subsection.
(9) Environmental and other reviews
(A) Environmental reviews
(i) In general
(I) In order to assure that the policies of the National
Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.]
and other provisions of law which further the purposes of
such Act (as specified in regulations issued by the
Secretary) are most effectively implemented in connection
with the insurance of mortgages under subsection (c)(2) of
this section, and to assure to the public undiminished
protection of the environment, the Secretary may, under such
regulations, in lieu of the environmental protection
procedures otherwise applicable, provide for agreements to
endorse for insurance mortgages under subsection (c)(2) of
this section upon the request of qualified housing finance
agencies under this subsection, if the State or unit of
general local government, as designated by the Secretary in
accordance with regulations, assumes all of the
responsibilities for environmental review, decisionmaking,
and action pursuant to such Act, and such other provisions
of law as the regulations of the Secretary may specify, that
would otherwise apply to the Secretary with respect to the
insurance of mortgages on particular properties.
(II) The Secretary shall issue regulations to carry out
this subparagraph only after consultation with the Council
on Environmental Quality. Such regulations shall, among
other matters, provide--
(aa) for the monitoring of the performance of
environmental reviews under this subparagraph;
(bb) subject to the discretion of the Secretary, for
the provision or facilitation of training for such
performance; and
(cc) subject to the discretion of the Secretary, for
the suspension or termination by the Secretary of the
qualified housing finance agency's responsibilities
under subclause (I).
(III) The Secretary's duty under subclause (II) shall
not be construed to limit any responsibility assumed by a
State or unit of general local government with respect to
any particular property under subclause (I).
(ii) Procedure
The Secretary shall approve a mortgage for the provision
of mortgage insurance subject to the procedures authorized
by this paragraph only if, not less than 15 days prior to
such approval, prior to any approval, commitment, or
endorsement of mortgage insurance on the property on behalf
of the Secretary, and prior to any commitment by the
qualified housing finance agency to provide financing under
the risk-sharing agreement with respect to the property, the
qualified housing finance agency submits to the Secretary a
request for such approval, accompanied by a certification of
the State or unit of general local government that meets the
requirements of clause (iii). The Secretary's approval of
any such certification shall be deemed to satisfy the
Secretary's responsibilities under the National
Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.]
and such other provisions of law as the regulations of the
Secretary specify insofar as those responsibilities relate
to the provision of mortgage insurance on the property that
is covered by such certification.
(iii) Certification
A certification under the procedures authorized by this
paragraph shall--
(I) be in a form acceptable to the Secretary;
(II) be executed by the chief executive officer or
other officer of the State or unit of general local
government who qualifies under regulations of the
Secretary;
(III) specify that the State or unit of general
local government under this section has fully carried
out its responsibilities as described under clause (i);
and
(IV) specify that the certifying officer consents to
assume the status of a responsible Federal official
under the National Environmental Policy Act of 1969 [42
U.S.C. 4321 et seq.] and under each provision of law
specified in regulations issued by the Secretary insofar
as the provisions of such Act or such other provisions
of law apply pursuant to clause (i), and is authorized
and consents on behalf of the State or unit of general
local government and himself or herself to accept the
jurisdiction of the Federal courts for the purpose of
enforcement of the responsibilities as such an official.
(iv) Approval by States
In cases in which a unit of general local government
carries out the responsibilities described in clause (i),
the Secretary may permit the State to perform those actions
of the Secretary described in clause (ii) and the
performance of such actions by the State, where permitted by
the Secretary, shall be deemed to satisfy the Secretary's
responsibilities referred to in the second sentence of
clause (ii).
(B) Lead-based paint poisoning prevention
In carrying out the requirements of section 302 of the Lead-
Based Paint Poisoning Prevention Act [42 U.S.C. 4822], the
Secretary may provide by regulation for the assumption of all or
part of the Secretary's duties under such Act [42 U.S.C. 4801 et
seq.] by qualified housing finance agencies, for purposes of
this section.
(C) Certification of subsidy layering compliance
The requirements of section 3545(d) of title 42 may be
satisfied in connection with a commitment to insure a mortgage
under this subsection by a certification by a housing credit
agency (including an entity established by a State that provides
mortgage insurance) to the Secretary that the combination of
assistance within the jurisdiction of the Secretary and other
government assistance provided in connection with a property for
which a mortgage is to be insured shall not be any greater than
is necessary to provide affordable housing.
(10) Definitions
For purposes of this subsection, the following definitions shall
apply:
(A) Mortgage
The term ``mortgage'' means a first mortgage on real estate
that is--
(i) owned in fee simple; or
(ii) subject to a leasehold interest that--
(I) has a term of not less than 99 years and is
renewable; or
(II) has a remaining term that extends beyond the
maturity of the mortgage for a period of not less than
10 years.
(B) First mortgage
The term ``first mortgage'' means a single first lien given
to secure advances on, or the unpaid purchase price of, real
estate, under the laws of the State in which the real estate is
located, together with the credit instrument, if any, secured
thereby. Any other financing permitted on property insured under
this section must be expressly subordinate to the insured
mortgage.
(C) Unit of general local government; State
The terms ``unit of general local government'' and ``State''
have the same meanings as in section 5302(a) of title 42.
(Pub. L. 102-550, title V, Sec. 542, Oct. 28, 1992, 106 Stat. 3794; Pub.
L. 103-233, title III, Sec. 307(a), (b), Apr. 11, 1994, 108 Stat. 373,
376; Pub. L. 104-120, Sec. 8, Mar. 28, 1996, 110 Stat. 836; Pub. L. 104-
134, title I, Sec. 101(e) [title II, Sec. 205], Apr. 26, 1996, 110 Stat.
1321-257, 1321-284; renumbered title I, Pub. L. 104-140, Sec. 1(a), May
2, 1996, 110 Stat. 1327; Pub. L. 105-18, title II, Sec. 10003, June 12,
1997, 111 Stat. 201; Pub. L. 105-276, title II, Sec. 211, Oct. 21, 1998,
112 Stat. 2486; Pub. L. 106-74, title II, Sec. 226, as added Pub. L.
106-113, div. A, title I, Sec. 175(d), Nov. 29, 1999, 113 Stat. 1534;
Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 235], Oct. 27, 2000, 114
Stat. 1441, 1441A-35.)
References in Text
The National Housing Act, referred to in subsecs. (b)(5) and (c)(4),
is act June 27, 1934, ch. 847, 48 Stat. 1246, as amended, which is
classified principally to this chapter (Sec. 1701 et seq.). For complete
classification of this Act to the Code, see section 1701 of this title
and Tables.
The National Environmental Policy Act of 1969, referred to in
subsec. (c)(9)(A)(i)(I), (ii), (iii)(IV), is Pub. L. 91-190, Jan. 1,
1970, 83 Stat. 852, as amended, which is classified generally to chapter
55 (Sec. 4321 et seq.) of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see Short Title note
set out under section 4321 of Title 42 and Tables.
The Lead-Based Paint Poisoning Prevention Act, referred to in
subsec. (c)(9)(B), is Pub. L. 91-695, Jan. 13, 1971, 84 Stat. 2078, as
amended, which is classified generally to chapter 63 (Sec. 4801 et seq.)
of Title 42, The Public Health and Welfare. For complete classification
of this Act to the Code, see Short Title note set out under section 4801
of Title 42 and Tables.
Codification
Section was formerly set out as a note under section 1707 of this
title.
Section was enacted as part of the Multifamily Housing Finance
Improvement Act and also as part of the Housing and Community
Development Act of 1992, and not as part of the National Housing Act
which comprises this chapter.
Amendments
2000--Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 235(6)],
substituted ``programs'' for ``demonstrations'' in section catchline.
Subsec. (a). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 235(1)],
substituted ``provide'' for ``demonstrate the effectiveness of
providing'' in first sentence and ``the programs'' for ``demonstration
programs'' in second sentence.
Subsec. (b). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 235(5)],
struck out ``pilot'' after ``Risk-sharing'' in heading.
Subsec. (b)(1). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(2)(A)], substituted ``provide'' for ``determine the
effectiveness of''.
Subsec. (b)(2)(A). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(5)], struck out ``pilot'' before ``program''.
Subsec. (b)(5). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(2)(B)], added par. (5) and struck out heading and text of
former par. (5). Text read as follows: ``Using any authority provided in
appropriation Acts to insure loans under the National Housing Act, the
Secretary may enter into commitments under this subsection for risk
sharing with respect to mortgages on not more than 7,500 units during
fiscal year 1996. The demonstration authorized under this subsection
shall not be expanded until the reports required under subsection (d)
are submitted to Congress, and not more than an additional 25,000 units
in each of the fiscal years 1999 and 2000.''
Subsec. (c). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 235(5)],
struck out ``pilot'' after ``finance agency'' in heading.
Subsec. (c)(1). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(3)(A), (5)], struck out ``pilot'' before ``program'' and
substituted ``provide Federal credit enhancement'' for ``test the
effectiveness of Federal credit enhancement''.
Subsec. (c)(2). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(5)], struck out ``pilot'' after ``Program requirements'' in
heading.
Subsec. (c)(2)(A). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(5)], struck out ``pilot'' before ``program''.
Subsec. (c)(4). Pub. L. 106-377, Sec. 1(a)(1) [title II,
Sec. 235(3)(B)], added par. (4) and struck out heading and text of
former par. (4). Text read as follows: ``Using any authority provided by
appropriations Acts to insure mortgages under the National Housing Act,
the Secretary may enter into commitments under this subsection with
respect to mortgages on not more than 12,000 units during fiscal year
1996, not more than an additional 7,500 units during fiscal year 1997
and not more than an additional 25,000 units in each of fiscal years
1999 and 2000. The demonstration authorized under this subsection shall
not be expanded until the reports required under subsection (d) of this
section are submitted to the Congress.''
Subsec (d). Pub. L. 106-377, Sec. 1(a)(1) [title II, Sec. 235(4)],
struck out heading and text of subsec. (d) which related to independent
studies and reports.
1999--Subsec. (b)(5). Pub. L. 106-74, Sec. 226(1), as added by 106-
113, Sec. 175(d), substituted ``in each of the fiscal years 1999 and
2000'' for ``during fiscal year 1999''.
Subsec. (c)(4). Pub. L. 106-74, Sec. 226(2), as added by Pub. L.
106-113, Sec. 175(d), substituted ``in each of fiscal years 1999 and
2000'' for ``during fiscal year 1999''.
1998--Subsec. (b)(5). Pub. L. 105-276, Sec. 211(1), inserted before
period at end ``, and not more than an additional 25,000 units during
fiscal year 1999''.
Subsec. (c)(4). Pub. L. 105-276, Sec. 211(2), substituted ``1996,''
for ``1996 and'' and inserted ``and not more than an additional 25,000
units during fiscal year 1999'' after ``fiscal year 1997''.
1997--Subsec. (c)(4). Pub. L. 105-18 substituted ``on not more than
12,000 units during fiscal year 1996 and not more than an additional
7,500 units during fiscal year 1997'' for ``on not more than 12,000
units during fiscal year 1996''.
1996--Subsec. (b)(5). Pub. L. 104-120, Sec. 8(a), and Pub. L. 104-
134, Sec. 101(e) [title II, Sec. 205(a)], amended par. (5) identically,
substituting ``on not more than 7,500 units during fiscal year 1996''
for ``on not more than 15,000 units over fiscal years 1993 and 1994''.
Subsec. (c)(4). Pub. L. 104-120, Sec. 8(b), and Pub. L. 104-134,
Sec. 101(e) [title II, Sec. 205(b)], amended par. (4) identically,
substituting ``on not more than 12,000 units during fiscal year 1996''
for ``on not to exceed 30,000 units over fiscal years 1993, 1994, and
1995''.
1994--Subsec. (b)(1), (2). Pub. L. 103-233, Sec. 307(a)(1), added
pars. (1) and (2) and struck out headings and text of former pars. (1)
and (2) relating to authority of Secretary for carrying out risk-sharing
pilot program and authority of Secretary for reinsurance agreements,
respectively.
Subsec. (b)(4). Pub. L. 103-233, Sec. 307(a)(2), substituted
``eligibility under this subsection of qualified participating
entities'' for ``financial institutions and entities to be eligible to
enter into reinsurance agreements''.
Subsec. (b)(8). Pub. L. 103-233, Sec. 307(a)(3), (4), added par. (8)
and struck out heading and text of former par. (8). Text read as
follows: ``The Secretary shall take any administrative actions necessary
to initiate the pilot program under this subsection not later than the
expiration of the 8-month period beginning on October 28, 1992.''
Subsec. (b)(9), (10). Pub. L. 103-233, Sec. 307(a)(4), added pars.
(9) and (10).
Subsec. (b)(11). Pub. L. 103-233, Sec. 307(a)(3), added par. (11).
Subsec. (c)(1). Pub. L. 103-233, Sec. 307(b)(1), inserted
``(including entities established by States that provide mortgage
insurance)'' after ``qualified housing finance agencies''.
Subsec. (c)(2)(C). Pub. L. 103-233, Sec. 307(b)(2)(A), substituted
``Such agreements shall specify that the qualified housing finance
agency and the Secretary shall share any loss in accordance with the
risk-sharing agreement.'' for ``Such agreements shall specify that the
qualified housing finance agency and the Secretary shall share equally
the full amount of any loss on the insured mortgage.''
Subsec. (c)(2)(F). Pub. L. 103-233, Sec. 307(b)(2)(B), added subpar.
(F).
Subsec. (c)(7). Pub. L. 103-233, Sec. 307(b)(3), struck out ``very
low-income'' before ``families'' and ``(2)'' after ``section 42(g)''.
Subsec. (c)(9), (10). Pub. L. 103-233, Sec. 307(b)(4), added pars.
(9) and (10).
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-120 to be construed to have become
effective Oct. 1, 1995, see section 13(a) of Pub. L. 104-120, set out as
a note under section 1437d of Title 42, The Public Health and Welfare.
Section Referred to in Other Sections
This section is referred to in sections 1715z-4a, 1715z-19, 1715z-
22a of this title.
