An amendment numbered 3 printed in House Report 112-138 to make it a violation for a lender, whose only interest in the property is the amount of the outstanding mortgage indebtedness, to require a homeowner to purchase more than the legally required amount of flood insurance--an amount equal to the outstanding principal balance of the loan.

1. Inserts new text on page 11, line 22

   InsertsPrinted page

   Inserted: (d) Penalties for Requiring Purchase of Coverage Exceeding Minimum Mandatory Purchase Requirement.--Paragraph (2) of section 102(f) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(2)) is amended--

   Inserted: (1) in subparagraph (A)(iii), by striking "or" at the end;

   Inserted: (2) in subparagraph (B), by striking the period at the end and inserting "; or"; and

   Inserted: (3) by adding at the end the following new subparagraph:

   Inserted: "(C) in connection with the making, increasing, extending, servicing, or renewing of any loan, requiring the purchase of flood insurance coverage under the National Flood Insurance Act of 1968, or purchasing such coverage pursuant to subsection (e)(2), in an amount in excess of the minimum amount required under subsections (a) and (b) of this section.".

   Original wording

   Page 11, after line 22, insert the following new subsection:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed