Sec. 2. Mortgage insurance premiums
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Section 203(c) of the National Housing Act ( 12 U.S.C. 1709(c) ) is amended— in paragraph (2)(B)— in the matter preceding clause (i)— by striking may and inserting shall ; by striking not exceeding 1.5 percent and inserting not less than 0.55 percent ; and by inserting and not exceeding 2.0 percent of such remaining insured principal balance before for the following periods: ; and in clause (ii), by striking 1.55 percent and inserting 2.05 percent ; and by adding at the end the following:
The Secretary shall, at least annually, review— the amount of the annual and up-front premiums collected under this subsection; and the expected losses to the Mutual Mortgage Insurance Fund, as such losses are calculated in the annual independent actuarial study required under section 202(a)(4). Upon completion of the review required under subparagraph (A), the Secretary shall, for all mortgages that are to become an obligation of the Mutual Mortgage Insurance Fund after the date that such review is complete, adjust the annual and up-front premiums applied to such mortgages so that the premiums collected over the life of such mortgages will exceed the expected losses of such mortgages to the Fund plus amounts sufficient to ensure the capital reserve ratio remains at the level required under section 205(f).
Nothing in this paragraph shall permit or be construed to permit the Secretary to apply different premium rates to the same mortgage product during the same time period based solely on the characteristics of the mortgagor. . The amendments made by subsection
(a)take effect upon the expiration of the 6-month period beginning on the date of enactment of this Act.
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Sec. 2
Mortgage insurance premiums
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