82 STAT. ]
PUBLIC LAW 90-448-AUG. 1, 1968
services to mortgagors whose mortgages are insured under section 235(i) or 235(j)(4) of the National Housing Act as he determines to be necessary to assist such mortgagors in meeting the responsibilities of homeownership. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this subsection.
SEC. 102. (a) Title II of the National Housing Act is amended by 12 USC 1707adding after section 236 (as added by section 201 of this Act) the fol- ^^^^^ lowing new section: "SPECIAL MORTGAGE INSURANCE ASSISTANCE
"SEC. 237. (a) The purpose of this section is to help provide adequate housing for families of low and moderate income, including those who, for reasons of credit history, irregular income patterns caused by seasonal employment, or other factors, are unable to meet the credit requirements of the Secretary for the purchase of a single-family home financed by a mortgage insured under section 203, 220, 221, 234, or 235(j)(4), but who, through the incentive of homeownership and 12 USC 17^09, counseling assistance, appear to be able to achieve homeownership. msy- Ante,'p. "(b) The Secretary is authorized upon application by the mort- ^77. gagee to insure under this section any mortgage meeting the requirements of this section. "(c) To be eligible for insurance under this section, a mortgage shall— "(1) meet the requirements of section 203 (except subsection (m)), 220(d)(3)(A),.221(d)(2), 221(h)(5), 221 (i), 234(c), or 235(j)(4), except as such requirements are modified by this section; "(2) involve a principal obligation (including such initial service charges, and such appraisal, inspection, and other fees, as the Secretary shall approve) in an amount not to exceed $15,000: Provided, That the Secretary may increase the amount to not exceed $17,500 in any geographical area where he finds that cost levels so require: Provided further, That no mortgage meeting the requirements of section 203(h) or 203(i) shall be eligible for insurance under this section if its principal obligation is in excess of the maximum limits prescribed in such section; "(3) be executed by a mortgagor who the Secretary has determined, after a full and complete study of the case, would not be an acceptable credit risk for mortgage insurance purposes under sections 203, 220, 221, 234, or 235(j)(4), because of his credit standing, debt obligations, total annual income, or income characteristics, but who the Secretary is satisfied would be a reasonably satisfactory credit risk, consistent with the objectives stated in subsection (a), if he were to receive budget, debt management, and related counseling: Provided, That, in determining whether the mortgagor is a reasonably satisfactory credit risk, the Secretary shall review the credit history of the applicant giving special consideration to those delinquent accounts which were ultimately paid by the applicant and to extenuating factors which may have caused credit accounts of the applicant to become delinquent; and the Secretary shall also give special consideration to income characteristics of applicants whose total income over the two years prior to their applications has remained at levels of eligibility (as required under paragraph (4) of this subsection), but who,