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Code · BILL · 113th Congress · H.R. 3550 (Introduced in House) — To stabilize the housing and banking sectors by eliminating policies that distort markets and facilitate risky lendin... · Sec. 112

Sec. 112. Loan-to-value limitation on enterprise mortgage purchases

230 words·~1 min read·/bill/113/hr/3550/ih/section-112

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Section 302(b) of the Federal National Mortgage Association Charter Act ( 12 U.S.C. 1717(b) ) is amended by adding at the end the following new paragraph: Notwithstanding any other provision of law, the corporation may not purchase, or make commitments to purchase, any mortgage on a 1- to 4-family residence if the outstanding principal balance of the mortgage at the time of purchase exceeds 95.0 percent of the value of the property securing the mortgage, except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the New Fair Deal Banking and Housing Stability Act of 2013 , by reducing such percentage by 1.5 percentage points. .
Section 3052(a) of the Federal Home Loan Mortgage Corporation Act ( 12 U.S.C. 1454(a) ) is amended by adding at the end the following new paragraph: Notwithstanding any other provision of law, the Corporation may not purchase, or make commitments to purchase, any mortgage on a 1- to 4-family residence if the outstanding principal balance of the mortgage at the time of purchase exceeds 95.0 percent of the value of the property securing the mortgage, except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the New Fair Deal Banking and Housing Stability Act of 2013 , by reducing such percentage by 1.5 percentage points. .
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