PUBLIC LAW 100-628—NOV. 7, 1988	102 STAT. 3275
"(2) effective date.—The amendment made by paragraph (1)
shall apply to each mortgage originated pursuant to an applica-
tion for commitment for insurance signed by the applicant on or
after December 1,1986.".
SEC. 1064. PAYMENT OF CLAIMS ON LOSSES FROM PREFORECLOSURE
SALES.
(a)	in general.—The second sentence of section 204(a) of the
National Housing Act (12 U.S.C. 1710(a)) is amended—
 (1)	by inserting "(A)" after "(1)"; and
 (2)	by striking ", and (2)" and inserting the following: ", or (B)
upon the sale of the insured property by the mortgagor after
default, if (i) the sale has been approved by the Secretary,.(ii)
the mortgagee receives an amount at least equal to the fair
market value of the property (with appropriate adjustments), as
determined by the Secretary, and (iii) the mortgagor has re-
ceived appropriate homeownership counseling, as determined
by the Secretary; and (2)".
(b)	conforming amendments.—
(1)	applicability.—Section 204(a) of the National Housing
Act (12 U.S.C. 1710(a)) is amended in the third sentence by
striking "the effective date of this sentence" and inserting the
following: "November 30, 1983 (on or after the date of the
enactment of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988, with respect to the payment of bene-
fits under clause (1)(B) of the preceding sentence),".
(2)	cross-references.—
 (A)	Section 204(a) of the National Housing Act (12 U.S.C.
1710(a)) is amended immediately before the first proviso in
the fifth sentence by striking "foreclosure".
 (B)	Section 204(j) of the National Housing Act (12 U.S.C.
1710(j)) is amended by inserting "clause (1XA) of before
"the second sentence".
(c)	regulations.—In developing regulations to carry put the    12 USC1710
amendments made by this section, the Secretary of Housing and   ^note
Urban Development may delegate to mortgagees the authority to
make determinations on behalf of the Secretary, and the Secretary
shall rely on certifications and post audit reviews to the greatest
extent possible.
SEC. 1065. MORTGAGE INSURANCE ON HAWAIIAN HOME LANDS.
Section 247 of the National Housing Act (12 U.S.C. 1715z-12), as
similarly amended first by the Department of Housing and Urban
Development-Independent Agencies Act, 1988 (101 Stat. 1329-191)
and later by subsections (a) and (b) of section 413 of the Housing and
Community Development Act of 1987 (101 Stat. 1906), is amended to
read as if the later amendment had not been enacted.
SEC. 1066. HOME  EQUITY  CONVERSION  MORTGAGE  INSURANCE  DEM-
ONSTRATION.
 (a)	definitions.—Section 255(b)(3) of the National Housing Act (12
U.S.C. 1715z-20(b)(3)) is amended by inserting "Depository" before
"Institutions".
 (b)	eligibility requirements.—Section 255(d)(3) of the National
Housing Act (12 U.S.C. 1715z-20(dX3)) is amended by striking "and
that" and all that follows through "residence".