106 STAT. 3796 PUBLIC LAW 102-550—OCT. 28, 1992

into risk-sharing agreements with qualified housing finance
agencies.

(B) MORTGAGE INSURANCE.—Agreements under
subparagraph (A) shall provide for full mortgage insurance
through the Federal Housing Administration of the loans
for affordable multifamily housing originated by or through
qualified housing finance agencies and for reimbursement
to the Secretary by such agencies for either all or a portion
of the losses incurred on the loans insured.

(C) RISK APPORTIONMENT.—Agreements entered into
under this subsection between the Secretary and a qualified
housing finance agency shall specify the percentage of loss
that each of the parties to the agreement will assume
in the event of default of the insured multifamily mortgage.
Such agreements shall specify that the qualified housing
finance agency and the Secretary shall share equally the
full amount of any loss on the insured mortgage.

(D) REIMBURSEMENT CAPACITY.—Agreements entered
into under this subsection between the Secretary and a
qualified housing finance agency shall provide evidence
of the capacity of such agency to fulfill any reimbursement
obligations made pursuant to this subsection. Evidence of
such capacity may include—

(i) a pledge of the full faith and credit of a qualified
State or local agency to fulfill any obligations entered
into by the qualified housing finance agency;

(ii) reserves pledged or otherwise restricted by the
qualified housing finance agency in an amount equal
to an agreed upon percentage of the loss assumed
by the housing finance agency under subparagraph
(C);

(iii) funds pledged through a State or local guaran-
tee fund; or

(iv) any other form of evidence mutually agreed
upon by the Secretary and the qualified housing
finance agency.

(E) UNDERWRITING STANDARDS.—The Secretary shall
allow any qualified housing finance agency to use its own
underwriting standards and loan terms and conditions for
purposes of underwriting loans to be insured under this
subsection without further review by the Secretary, except
that the Secretary may impose additional underwriting
criteria and loan terms and conditions for contractual
agreements where the Secretary retains more than 50 per-
cent of the risk of loss.

(3) MORTGAGE INSURANCE PREMIUMS.—The Secretary shall
establish a schedule of insurance premium payments for mort-
gages insured under this subsection based on the percentage
of loss the Secretary may assume. Such schedule shall reflect
lower or nominal premiums for qualified housing finance agen-
cies that assume a greater share of the risk apportioned accord-
ing to paragraph (2XC).

(4) LIMITATION ON INSURANCE AUTHORITY.—Using any
authority provided by appropriations Acts to insure mortgages
under the National Housing Act, the Secretary may enter into
commitments under this subsection with respect to mortgages
on not to exceed 30,000 units over fiscal years 1993, 1994,