104 STAT. 4142 PUBLIC LAW 101-625—NOV. 28, 1990 "(F) on any other basis that the Secretary considers appropriate; and "(10) provide that the mortgagor may convert the method of payment under paragraph (9) to any other method during the term of the mortgage, except that in the case of a fixed rate mortgage, the Secretary may, by regulation, limit such convertibility. ". (c) LIMITATION ON LIABILITY OF MORTGAGOR.— Section 255(d)(7) of the National Housing Act (12 U.S.C. 1715z-20(d)(7)) is amended by striking subparagraph (A) and inserting the following new subparagraph: "(A) the net ssdes proceeds from the dwelling that are subject to the mortgage (based upon the amount of the accumulated equity selected by the mortgagor to be subject to the mortgage, as agreed upon by the mortgagor and mortgagee); or". (d) DISCLOSURES BY MORTGAGEE REGARDING LIABILITY OF MORTGA- GOR.— Section 255(e) of the National Housing Act (12 U.S.C. 1715z-20(e)) is amended— (1) in paragraph (2)— (A) by inserting after "statement" the following: "informing the homeowner that the liability of the homeowner under the mortgage is limited and"; and (B) by striking "and" at the end; (2) in paragraph (3), by striking the period at the end and inserting "; and"; and (3) by adding at the end the following new paragraph: "(4) prior to loan closing, a statement of the projected total cost of the mortgage to the homeowner based on the projected total future loan balance (such cost expressed as a single average annual interest rate for at least 2 different appreciation rates for the term of the mortgage) for not less than 2 projected loan terms, as the Secretary shall determine, which shall include— "(A) the cost for a short-term mortgage; and "(B) the cost for a loan term equaling the actuarial life expectancy of the mortgagor.". SEC. 335. INFORMATION REGARDING EARLY DEFAULTS ON FHA-INSURED LOANS. (a) IN GENERAL.— The National Housing Act (12 U.S.C. 1701 et seq.) is amended by inserting after section 539 (as added by this Act) the following new section: " INFORMATION REGARDING EARLY DEFAULTS AND FORECLOSURES ON INSURED MORTGAGES 12 USC "SEC. 540. (a) IN GENERAL.— The Secretary of Housing and Urban I735f-18. Development shall collect and maintain information regarding early defaults on mortgages as provided under this section. The Secretary shall make such information available for public inspection upon request. Information shall be collected quarterly with respect to each applicable collection period (as such term is defined in subsection (c)) and shall be available for inspection not more than 30 days after the conclusion of the calendar quarter relating to each such period. Information shall first be made available under this section for the applicable collection period relating to the first calendar
�
