PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3787

(B) APPROVAL.—The mortgagor's base loan application
shall be approved if the mortgagor's income and credit
record is found to be satisfactory.

(C) COST OF IMPROVEMENTS.—The cost of cost-effective
energy efficiency improvements shall not exceed the greater
of—

(i) 5 percent of the property value (not to exceed
$8,000); or
(ii) $4,000.

(3) AUTHORITY FOR MORTGAGEES.—In granting mortgages
under the pilot program established pursuant to this subsection,
the Secretary shall grant mortgagees the authority—

(A) to permit the final loan amount to exceed the
loan limits established under title II of the National Hous-
ing Act by an amount not to exceed 100 percent of the
cost of the cost-effective energy efficiency improvements,
if the mortgagor's request to add the cost of such improve-
ments is received by the mortgagee prior to funding of
the base loan;

(B) to hold in escrow all funds provided to the mortga-
gor to undertake the energy efficiency improvements until
the efficiency improvements are actually installed; and

(C) to transfer or sell the energy efficient mortgage
to the appropriate secondary market agency, after the mort-
gage is issued, but before the energy efficiency improve-
ments are actually installed.

(4) PROMOTION OF PILOT PROGRAM.—The Secretary shall
encourage participation in the energy efficient mortgage pilot
program by—

(A) making available information to lending agencies
and other appropriate authorities regarding the availability
and benefits of energy efficient mortgages;

(B) requiring mortgagees and designated lending
authorities to provide written notice of the availability
and benefits of the pilot program to mortgagors applying
for financing in those States designated by the Secretary
as participating under the pilot program; and

(C) requiring each applicant for a mortgage insured
under title II of the National Housing Act in those States
participating under the pilot program to sign a statement
that such applicant has been informed of the program
requirements and understands the benefits of energy effi-
cient mortgages.

(5) TRAINING PROGRAM.—Not later than 9 months after Establishment.
the date of enactment of this Act, the Secretary, in consultation

with the Secretary of Energy, shall establish and implement
a program for training personnel at relevant lending agencies,
real estate companies, and other appropriate organizations
regarding the benefits of energy efficient mortgages and the
operation of the pilot program under this subsection.

(6) REPORT.—Not later than 18 months after the date of
enactment of this Act, the Secretary shall prepare and submit
a report to the Congress describing the effectiveness and
implementation of the energy efficient mortgage pilot program
as described under this subsection, and assessing the potential
for expanding the pilot program nationwide.