Subsection (h) would authorize the appropriation of such sums as needed to cover losses sustained by the General Insurance Fund or the

Special Risk Insurance Fund.

Section 202 - Insurance Premiums & Charges

Subsection (a) would authorize the Secretary to establish insurance premiums. The Secretary could require payment of the insurance premium either on an advanced or deferred payment basis, except that payment in advance annually would be required with respect to premiums for a project mortgage or loan or home improvement or mobile home loan.

Subsection (b) would authorize the Secretary, in his discretion, to collect an adjusted premium charge in the event a home or project mortgage were prepaid, but not to exceed the amount of premium that would have been paid if the mortgage were held to maturity.

Subsection (c) would authorize the Secretary to terminate any insurance contract upon request of the mortgagor and the mortgagee, and to require the payment of a termination charge computed in the same manner as an adjusted premium charge.

Subsection (d) would permit payment of premiums and charges under this section to be either in cash or in debentures of the insurance fund to which the premium is to be credited.

Subsection (e) would require the Secretary of Defense or the Secretary of Transportation (in the case of a member of the Coast Guard) to pay the mortgage insurance premiums in the case of a mortgage on a single family

dwelling or a one-family unit in a condominium, insured under section 401, during such time as the mortgagor was a serviceman. These payments would continue for a maximum of two years on behalf of a widow of a serviceman who died while on active duty.

Section 203 - Processing Fees and Service Charges

Subsection (a) would authorize the Secretary to charge the mortgagee processing, appraisal, inspection and other appropriate charges for the services rendered. Such charges would be payable in cash.

Subsection (b) would authorize the Secretary in the case of mortgages held by him or made payable to him to collect a service charge from the mortgagor in an amount not exceeding the applicable mortgage insurance premium.

Subsection (a) would authorize the Secretary to insure financial institutions against losses in making, advancing credit in connection with, or purchasing property improvement and mobile home loans.

Subsection (b) would make eligible for insurance home improvement loans for the purpose of repairing or improving existing structures or the building of new structures (including the repair or replacement of improvements damaged or destroyed by natural disaster) by the owner or a lessee under a lease expiring not less than six months, after the maturity of the loan.

Subsection (c) would make eligible for insurance loans made

for the purpose of financing the purchase of a mobile home to be used by

Subsection (a) would require that a home improvement loan (1) involve an amount not in excess of $6,500, except that where the structure to be repaired includes two or more dwelling units the loan could not exceed $15,000 or an average amount of $3,500 per unit, and (2) have a maturity not exceeding seven years and thirty-two days, except where the loan involves the construction of a new structure for use in whole or in part for agricultural purposes.

Subsection (b) would limit a mobile home loan to an amount not in excess of $10,000 (or $15,000 in the case of a mobile home composed of two or more modules) and require that it have a maturity not in excess of twelve years and thirty-two days (or fifteen years and thirty-two days in the case of a mobile home composed of two or more modules).

Section 303 - Refinancing

This section would authorize the Secretary to refinance and extend the maturity of any loan insured under the title, provided that the additional amount or term of the loan did not exceed the limitations prescribed in section 302.

Section 304- Prohibitions

This section would require the Secretary to prevent (1) the use of multiple loans which would result in outstanding loans, with respect to the

same property, in an amount in excess of the dollar limits prescribed in section 302 for an individual loan, and (2) the insuring of home improvement loans involving new residential structures which have not been

completed and occupied for at least six months. The Secretary would be authorized to waive the prohibitions in (2) above.

Section 305 - Property Standards

Subsection (a) would authorize the Secretary to declare products or repairs which do not improve the basic livability or utility of properties or are especially subject to selling abuses ineligible for financing under

this title.

Subsection (b) would direct the Secretary to (1) prescribe minimum property standards for mobile homes and the sites on which they are to be located, and (2) obtain assurances from the borrower that the mobile

home will be placed on a site meeting standards prescribed by the Secretary and any local zoning or other local requirements.

Subsection (a) would provide that the insurance obligation of the Secretary with respect to any lender not exceed either (1) 10 percent of the total amount of loans made by the lender (under this title and under section 2 of the National Housing Act after July 1, 1939), or (2) 90 percent of the loss on any individual loan.

Subsection (b) would make any payment for loss incontestable after

two years in the absence of fraud or misrepresentation by the lender unless a demand for repurchase of the obligation on behalf of the United States has been made prior to the end of the two-year period.

This section would authorize the Secretary to waive compliance with any regulation issued pursuant to this title if the lender has acted in good faith and enforcement would impose an injustice on him, but the

waiver could not involve an increase in the amount of the Secretary's obligation.

Section 308 Transfer of Insurance

This section would authorize the Secretary to transfer the insurance of any loan to any approved lender which purchases such loan.

Subsection (a) would authorize the Secretary to insure unsubsidized home mortgages (including open-end advances under the mortgage) covering a one- to four-family residence or a one-family unit in a condominium.

Subsection (b) would provide certain eligibility requirements for mortgages insured under this section:

(1) The principal obligation of the mortgage could not exceed an amount equal to the sum of 100 percent of $20,000 of the appraised value of the property, 90 percent of such value in excess of $20,000, and 80 percent in excess of $30,000; but in the case of property to be rehabilitated the above percentages could, in the discretion of the Secretary, be applied to the sum of the value of the property before rehabilitation plus the estimated cost of the rehabilitation.