102 STAT. 3274 PUBLIC LAW 100-628—NOV. 7, 1988

"(i) the attorney will provide competent and cost-
effective representation for the Farmers Home
Administration; and

"(ii) representation by the attorney will either (I)
accelerate the process by which a family or person
eligible for assistance under section 502 will be able to
purchase and occupy the housing involved; or (II) pre-
serve the quality of the housing involved; and

Reports. "(2) the Secretary shall annually submit to the Congress a

report describing activities carried out under paragraph (IXC),
including the cost of entering into contracts with such attorneys
and the savings resulting from expedited foreclosure proceed-
ings".

Subtitle D—Mortgage Insurance and Secondary
Mortgage Market Programs

SEC. 1061. CHANGE IN DEFINITION OF VETERAN.

Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is
amended to read as if the amendment made by section 405(1) of the
Housing and Community Development Act of 1987 (101 Stat 1899)
to section 203(bX3X2) of the National Housing Act had been made
instead to section 203(bX2) of the National Housing Act.

SEC. 1062. LIMITATION ON USE OF SINGLE FAMILY MORTGAGE INSUR-
ANCE BY INVESTORS.

(a) EXEMPTION FROM OCCUPANCY REQUIREMENT.—Section 203(gX3)
of the National Housing Act (12 U.S.C. 1709(gX3)) is amended—

(1) by striking "or" at the end of subparagraph (D);

(2) by striking the period at the end of subparagraph (E) and
inserting "; or*'; and

(3) by adding at the end the following new subparagraph:
"(F) a mortgagor that, pursuant to section 223(aX7), is re-
financing an existing mortgage insured under this Act for not
more than the outstanding balance of the existing mortgage, if
the amount of the monthly payment due under the refinancing
mortgage is less than the amount due under the existing mort-
gage for the month in which the refinancing mortgage is
executed.".

(b) CORRECTION OF CONFORMING AMENDMENT.—Section 203(bX2) of
the National Housing Act (12 U.S.C. 1709(bX2)) is amended to read
as if the amendment made by section 406(bXlXB) of the Housing and
Community Development Act of 1987 (101 Stat. 1900) had deleted
instead the following: "to be occupied as the principal residence of
the owner".

SEC. 1063. PROCEDURES APPLICABLE TO ASSUMPTION OF INSURED
MORTGAGES.

(a) CREDIT REVIEWS.—Section 203(rX2) of the National Housing
Act (12 U.S.C. 1709(rX2)) is amended by striking "date on which the
mortgage is endorsed for insurance each place it appears and
inserting "date on which the mortgage is executed".

(b) EFFECTIVE DATE.—Section 407(aX2) of the Housing and Commu-
12 use 1709 nity Development Act of 1987 is amended to read as follows:

note.