A bill to amend the National Housing Act to provide for emergency interest reduction payments and for other purposes.

[AI summary unavailable — showing source text] Amends the National Housing Act to authorize the Secretary of Housing and Urban Development, through the Government National Mortgage Association, to assist middle- and lower-income families in acquiring a home or membership in a cooperative housing association by making periodic interest reduction payments on their behalf to mortgagees and lenders. Prohibits the Secretary from entering into contracts to provide interest reduction payments during any month unless the Federal Home Loan Bank Board's home mortgage interest rate index for the most recent two-month period exceeds 12.5 percent per year. Conditions eligibility for interest reduction payments on the insurability of the first mortgage or loan secured by such property. Sets forth the qualifications for insurance, which include requirements that: (1) the loan be executed by a borrower who has an annual income of less than $30,000; (2) the loan involve a one- to four-family dwelling the construction of which was completed on or after March 6, 1982; (3) the loan be amortized over 30 years; and (4) beginning with the second year, the loan payments be increased by a specified amount which shall be applied to the principal obligat…