12 2 STA T . 2 84 1 PUBLIC LA W 11 0– 28 9—J UL Y3 0 , 2008 partic ipa n t s int he pri v ate resi d entia l(bo th sin g le f a m il y and m u lti - family ) mortgage lending business and the secondary mar k et for such mortgages on ho w best to update and upgrade processes and technologies for the mortgage insurance programs under title I I of the N ational H ousing A ct so that the procedures for originating , insuring, and servicing of such mortgages conform with those cus- tomarily used by secondary market purchasers of residential mort- gage loans . Not later than the e x piration of the 12 -month period beginning on the date of the enactment of this title, the S ecretary shall submit a report to the C ongress describing the progress made and to be made toward updating and upgrading such processes and technology, and providing appropriate staffing for such mort- gage insurance programs. SEC.21 2 7 . PO S T- P UR C HA SE HOUS ING COUNSE L ING ELIGI B ILIT Y I M PRO V EMENTS. Section 1 06 (c)( 4 ) of the Housing and U rban D evelopment Act of1 9 6 8 (12 U.S.C. 1 7 01x(c)(4)) is amended
(1) in subparagraph (C) — (A) in clause (i), by striking ‘ ‘
or ’ ’ and inserting a semicolon; ( B ) in clause (ii), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: ‘‘(iii) a significant reduction in the income of the household due to divorce or death; or ‘‘(iv) a significant increase in basic expenses of the homeowner or an immediate family member of the homeowner (including the spouse, child, or parent for whom the homeowner provides substantial care or financial assistance) due to— ‘‘(I) an unexpected or significant increase in medical expenses; ‘‘(II) a divorce; ‘‘(III) unexpected and significant damage to the property, the repair of which will not be cov- ered by private or public insurance; or ‘‘(I V ) a large property-tax increase; or’’; (2) by striking the matter that follows subparagraph (C); and ( 3 ) by adding at the end the following: ‘‘(D) the Secretary of Housing and Urban Development determines that the annual income of the homeowner is no greater than the annual income established by the Sec- retary as being of low- or moderate-income.’’. SEC. 212 8 . PRE-PURCHASE HOMEO W NERSHIP COUNSELING D EM- ONSTRATION. (a) ESTABLI S HMEN T OFPR O G RAM.— F or the period beginning on the date of enactment of this title and ending on the date that is 3 years after such date of enactment, the Secretary of Housing and Urban Development shall establish and conduct a demonstration program to test the effectiveness of alternative forms of pre-purchase homeownership counseling for eligible homebuyers. (b) FORMS OF CO U NSELING.— T he Secretary of Housing and Urban Development shall provide to eligible homebuyers pre-pur- chase homeownership counseling under this section in the form of— 12USC 1 70 1 xnote.D e adli ne. R e p o r t s .
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