PUBLIC LAW 101-508—NOV. 5, 1990
104 STAT. 1388-19
(i) less than 90 percent of the appraised value of the
property (as of the date the mortgage is accepted for
insurance), for the first 5 years of the mortgage term;
(ii) greater than or equal to 90 percent of such value
but equal to or less than 95 percent of such value, for
the first 8 years of the mortgage term; and
(iii) greater than 95 percent of such value, for the
first 10 years of the mortgage term.
(2) 1993 AND 1994. — For mortgages executed during fiscal
years 1993 and 1994, the Secretary shall establish and collect
the following premiums:
(A) UP-FRONT. —At the time of insurance, a single premium payment in an amount equal to 3.00 percent of the
. amount of the original insured principal obligation of the
mortgage.
(B) ANNUAL.— In addition to the premium under subparagraph (A), annual premium payments in an amount equal
to 0.50 percent of the remaining insured principal balance
(excluding the portion of the remaining balance attributable to the premium collected under subparagraph (A)
and without taking into account delinquent payments or
prepayments), for any mortgage involving an original principal obligation (excluding any premium collected under
subparagraph (A)) that is—
(i) less than 90 percent of the appraised value of the
property (as of the date the mortgage is accepted for
insurance), for the first 7 years of the mortgage term;
(ii) greater than or equal to 90 percent of such value
but equal to or less than 95 percent of such value, for
the first 12 years of the mortgage term; and
(iii) greater than 95 percent of such value, for the
first 30 years of the mortgage term.
(3) REFUNDS. —With respect to any mortgage subject to premiums under this subsection, the Secretary shall refund all of
the unearned premium charges paid on a mortgage pursuant to
paragraph (1)(A) or (2)(A) upon payment in full of the principal
obligation of the mortgage prior to the maturity date.
(c) REGULATIONS.—The Secretary shall issue regulations to carry 12 USC 1709
out this section and the amendments made by this section not later "o*«-
than the expiration of the 90-day period beginning on the date of the
enactment of this Act.
SEC. 2104. MUTUAL MORTGAGE INSURANCE FUND DISTRIBUTIONS.
Section 205 of the National Housing Act (12 U.S.C. 1711) is
amended by adding at the end the following new subsection:
"(e) In determining whether there is a surplus for distribution to
mortgagors under this section, the Secretary shall take into account
the actuarial status of the entire Fund.".
SEC. 2105. ACTUARIAL SOUNDNESS OF MUTUAL MORTGAGE INSURANCE
FUND.
Section 205 of the National Housing Act (12 U.S.C. 1711), as
amended by the preceding provisions of this Act, is further amended
by adding at the end the following new subsections:
"(f)(1) The Secretary shall ensure that the Mutual Mortgage
Insurance Fund attains a capital ratio of not less than 1.25 percent

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