PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3793

"(7) DEFINITION OF 'MORTGAGEE'.—For purposes of this sub-
section, the term 'mortgagee' means—

"(A) a mortgagee approved under this Act;

"(B) a lender or a loan correspondent approved under
title I of this Act;

"(C) a branch office or subsidiary of the mortgagee,
lender, or loan correspondent; or

"(D) a director, officer, employee, agent, or other person
participating in the conduct of the affairs of the mortgagee,
lender, or loan correspondent.".

SEC. 520. EXEMPTION FROM SECTION 137(b) OF THE TRUTH IN LEND-
ING ACT.

Section 255(j) of the National Housing Act (12 U.S.C. 1715z-
20(j» is amended by adding at the end the following: "Section
137(b) of the Truth in Lending Act (15 U.S.C. 1647(b)) and any
implementing regulations issued by the Board of Governors of the
Federal Reserve System shall not apply to a mortgage insured
under this section.".

Subtitle B—Secondary Mortgage Market
Programs

SEC. 531. LIMITATION ON GNMA GUARANTEES OF MORTGAGE-
BACKED SECURITIES.

Section 306(gX2) of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1721(gX2)) is amended to read as follows:

"(2) Notwithstanding any other provision of law and subject
only to the absence of qualified requests for guarantees, to the
authority provided in this subsection, and to the extent of or in
such amounts as any funding limitation approved in appropriation
Acts, the Association shall enter into commitments to issue guaran-
tees under this subsection in an aggregate amount of
$88,000,000,000 during fiscal year 1993 and $91,696,000,000 during
fiscal year 1994. There is authorized to be appropriated such sums Appropriation
as may be necessary to cover the costs (as such term is defined authorization.
in section 502 of the Congressional Budget Act of 1974) of guaran-
tees issued under this Act by the Association.".

SEC. 532. AUTHORITY FOR GNMA TO MAKE HARDSHIP INTEREST PAY-
MENTS.

Section 306(gXl) of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1721(gXD) is amended by inserting after
the period at the end of the third sentence the following new
sentence: "In any case in which (I) Federal law requires the reduc-
tion of the interest rate on any mortgage backing a security guaran-
teed under this subsection, (II) the mortgagor under the mortgage
is a person in the military service, and (III) the issuer of such
security fails to receive from the mortgagor the full amount of
interest payment due, the Association may make payments of
interest on the security in amounts not exceeding the difference
between the amount payable under the interest rate on the mort-
gage and the amount of interest actually paid by the mortgagor.".