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Section 257 of the National Housing Act (12 U.S.C. 1715z-23) is amended

1. 
   

   in subsection (e)

   
   
   
   
   1. 
      

      in paragraph (1)(B), by inserting before a ratio the following: , or thereafter is likely to have, due to the terms of the mortgage being reset,;

      
      
   
   
   2. 
      

      in paragraph (2)(B), by inserting before the period at the end (or such higher per centage as the Board determines, in the discretion of the Board);

      
      
   
   
   3. 
      

      in paragraph (4)(A)

      
      
      
      
      1. 
         

         in the first sentence, by inserting after insured loan the following: and any payments made under this paragraph,; and

         
         
      
      
      2. 
         

         by adding at the end the following: Such actions may include making payments, which shall be accepted as payment in full of all indebtedness under the eligible mortgage, to any holder of an existing subordinate mortgage, in lieu of any future appreciation payments authorized under subparagraph (B).; and

         
         
      
      
      
      
   
   
   
   


2. 
   

   in subsection (w), by inserting after administrative costs the following: and payments pursuant to subsection (e)(4)(A).