12 2 STA T . 2 805PUBLIC LA W 110 – 28 9—J UL Y3 0 , 2008 ‘ ‘ (2)EXCLUSIONF O RV IOL AT IONS .—TheBoards ha l l p roh ib i t the S e c retar yf ro m payi ng ins u rance benefits to a mortgagee w ho v iolates the representations and warranties , as established under paragraph ( 1 ), or in any case in which a mortgagor fails to ma k e the first payment on a refinanced eligible mort - gage. ‘‘( 3 ) O T HE R AUTHORIT Y .—The Board may establish such other standards or policies as necessary to protect against adverse selection, including re q uiring loans identified by the Secretary as higher risk loans to demonstrate payment perform- ance for a reasonable period of time prior to being insured under the program. ‘‘(i) P RE M IUMS.— F or each refinanced eligible mortgage insured under this section, the Secretary shall establish and collect— ‘‘(1) at the time of insurance, a single premium payment in an amount equal to 3 percent of the amount of the original insured principal obligation of the refinanced eligible mortgage, which shall be paid from the proceeds of the mortgage being insured under this section, through the reduction of the amount of indebtedness that e x isted on the eligible mortgage prior to refinancing
and ‘‘(2) in addition to the premium required under paragraph (1), an annual premium in an amount equal to 1. 5 percent of the amount of the remaining insured principal balance of the mortgage. ‘‘( j ) ORI G INATION FEES AN DI NTEREST R ATE.—The Board shall establish— ‘‘(1) a reasonable limitation on origination fees for refinanced eligible mortgages insured under this section; and ‘‘(2) procedures to ensure that interest rates on such mort- gages shall be commensurate with market rate interest rates on such types of loans. ‘‘(k) E Q UITY AND AP PRECIATION.— ‘‘(1) FIVE-YEAR PHASE-IN FOR EQUITY AS A RESULT OF SALE OR REFINANCING.—For each eligible mortgage insured under this section, the Secretary and the mortgagor of such mortgage shall, upon any sale or disposition of the property to which such mortgage relates, or upon the subsequent refinancing of such mortgage, be entitled to the following with respect to any equity created as a direct result of such sale or refi- nancing
‘‘(A) If such sale or refinancing occurs during the period that begins on the date that such mortgage is insured and ends 1 year after such date of insurance, the Secretary shall be entitled to 1 0 0 percent of such equity. ‘‘(B) If such sale or refinancing occurs during the period that begins 1 year after such date of insurance and ends 2 years after such date of insurance, the Secretary shall be entitled to 9 0 percent of such equity and the mortgagor shall be entitled to 10 percent of such equity. ‘‘( C ) If such sale or refinancing occurs during the period that begins 2 years after such date of insurance and ends 3 years after such date of insurance, the Secretary shall be entitled to 8 0 percent of such equity and the mortgagor shall be entitled to 20 percent of such equity. ‘‘( D ) If such sale or refinancing occurs during the period that begins 3 years after such date of insurance and ends Ef f ectiv e da te s.
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