,,ii ,cal5d> ,no4 #bge #aac? ,,congress 
#a/ ,session  ,s4 #acgf ,report ,no4    
#aac-abi ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$
 ,,/ates  ,july #be1 #bjac,mr4 ,johnson 
( ,s\? ,dakota 7= himself & ,mr4 ,crapo7
 introduc$ ! foll[+ bill2 :i* 0 read    
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs        
,decemb] #ai1 #bjac,report$ by ,mr4     
,johnson ( ,s\? ,dakota1 )              
amendments,omit ! "p /ruck ?r\gh & ins]t
 ! "p pr9t$ 9 italic  ,a ,,bill  ,to    
improve ! ,f$]al ,h\s+ ,adm9i/ration &  
to ensure ! solv5cy ( ! ,mutual         
,mortgage ,insurance ,fund1 & = o!r     
purposes4  #a4 ,%ort title2 table (     
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,,fha ,solv5cy ,act ( #bjac4
  7b7 ,table ( cont5ts ,! table (       
cont5ts = ?is ,act is z foll[s3 ,sec4   
#a4 ,%ort title2 table ( cont5ts4,sec4  
#b4 ,mortgage insurance premiums4,sec4  
#c4 ,prohibition on insur+ mortgagors ) 
#b prior =eclosures4,sec4 #cd4          
,indemnification by ,,fha               

mortgagees4,sec4 #de4 ,review (         
mortgagee p]=mance4,sec4 #f4 ,transf] ( 
mortgage s]vic+ duties4,sec4 #eg4 ,eas+ 
regulatory burd5s2 res\rce guide4,sec4  
#fh4 ,improv+ und]writ+ /&>ds4,sec4 #gi4
 ,ensur+ adequate capital levels 9 !    
,mutual ,mortgage ,insurance ,fund4,sec4
 #aj4 ,/ress te/+ ( ! ,mutual ,mortgage 
,insurance ,fund4,sec4 #aa4             
,congressional notification ( use (     
c]ta9 au?orities ) respect to !         
,,fha4,sec4 #hab4 ,e/abli%m5t ( ,deputy 
,assi/ant ,secret>y & ,*ief ,risk ,(fic]
 ( ,,fha4,sec4 #iac4 ,disclosure (      
ev5ts4,sec4 #ajad4 ,,gao /udy on        
disclosures4,sec4 #aaae4 ,/abiliz+ !    
,,hecm program4,sec4 #af4 ,pr9cipal     
limit factor = ,,hecm program4,sec4     
#abag4 ,publication ( f9al rules relat+ 
to limit+ sell] contributions t[>ds     
pur*ase relat$ exp5ses4,sec4 #ah4 ,,gao 
/udy on ,,fha loan limits4  #b4         
,mortgage insurance premiums  7a7 ,9    
g5]al ,section #bjc7;c7 ( ! ,national   
,h\s+ ,act 7#ab ,u4,s4,c4 #agji7;c77 is 

am5d$-- 7#a7 9 p>agraph 7#b77;,b7-- 7,a7
 9 ! matt] prec$+ clause 7i7-- 7i7 by   
/rik+ may & ins]t+ %all2  7ii7 by /rik+ 
n exce$+ #a4e p]c5t & ins]t+ n less ?an 
#j4ee p]c5t2 &  7iii7 by ins]t+ & n     
exce$+ #b4j p]c5t ( su* rema9+ insur$   
pr9cipal balance be=e = ! foll[+        
p]iods32 &  7,b7 9 clause 7ii71 by /rik+
 #a4ee p]c5t & ins]t+ #b4je p]c5t2 &    
7#b7 by add+ at ! end ! foll[+3  7#c7   
,evaluation ( up-front & annual premiums
  7,a7 ,annual review ,! ,secret>y %all1
 at lea/ annually1 review-- 7i7 ! am\nt 
( ! annual & up-front premiums collect$ 
"u ?is subsection2 &  7ii7 ! expect$    
losses to ! ,mutual ,mortgage ,insurance
 ,fund1 z su* losses are calculat$ 9 !  
annual indep5d5t actu>ial /udy requir$  
"u section #bjb7;a77#d74  7,b7 ,requir$ 
adju/m5ts ,^u completion ( ! review     
requir$ "u subp>agraph 7,a71 ! ,secret>y
 %all1 = all mortgages t are to become  
an obligation ( ! ,mutual ,mortgage     
,insurance ,fund aft] ! date t su*      
review is complete1 adju/ ! annual &    

up-front premiums appli$ to su*         
mortgages s t ! premiums collect$ ov] ! 
life ( su* mortgages w exce$ ! expect$  
losses ( su* mortgages to ! ,fund plus  
am\nts suffici5t to ensure ! capital    
res]ve ratio rema9s at ! level requir$  
"u section #bje7;f74  7,c7 ,rule (      
con/ruction ,no?+ 9 ?is p>agraph %all   
p]mit or be con/ru$ to p]mit ! ,secret>y
 to apply diff]5t premium rates to !    
same mortgage product dur+ ! same "t    
p]iod bas$ solely on ! *>act]i/ics ( !  
mortgagor4  4  7b7 ,effective date ,!   
am5dm5ts made by subsection 7a7 take    
effect ^u ! expiration ( ! #f-mon? p]iod
 beg9n+ on ! date ( enactm5t ( ?is ,act4
  #c4 ,prohibition on insur+ mortgagors 
) #b prior =eclosures ,section #bjc ( ! 
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agji7 is am5d$ by add+ at ! end !      
foll[+3  7y7 ,prohibition on insur+     
mortgagors ) #b prior =eclosures ,!     
,secret>y may n insure1 or ent] into a  
commitm5t to insure1 a mortgage "u ?is  
section t is execut$ by a mortgagor :o  

is ! mortgagor "u any two mortgages on  
#a- to #d-;family resid5tial prop]ties t
 h be5 previ\sly =eclos$ ^u4  4  #cd4   
,indemnification by ,,fha mortgagees    
7a7 ,9 g5]al ,section #bjb ( ! ,national
 ,h\s+ ,act 7#ab ,u4,s4,c4 #agjh7 is    
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7i7 ,indemnification by    
mortgagees  7#a7 ,9 g5]al ,if !         
,secret>y det]m9es t a mortgage execut$ 
by a mortgagee approv$ by ! ,secret>y "u
 ! direct endorsem5t program or insur$  
by a mortgagee pursuant to ! delegation 
( au?ority "u section #bef conta9s a    
mat]ial defect su* t ! mortgage %\ld n h
 be5 approv$ or endors$ = insurance1 & a
 loan becomes del9qu5t )9 #cf mon?s (   
su* approval or endorsem5t lead+ to a   
default or ! ,secret>y pays a claim )9  
#cf mon?s aft] su* approval or          
endorsem5t1 ! ,secret>y may require !   
mortgagee approv$ by ! ,secret>y "u !   
direct endorsem5t program or ! mortgagee
 delegat$ au?ority "u section #bef to   
indemnify ! ,secret>y = ! loss1         

irrespective ( :e!r ! violation caus$ ! 
mortgage default4  7#b7 ,fraud or       
misrepres5tation ,if fraud or           
misrepres5tation 0 involv$ 9 connection 
) ! orig9ation1 ! ,secret>y %all require
 ! mortgagee approv$ by ! ,secret>y "u !
 direct endorsem5t program or !         
mortgagee delegat$ au?ority "u section  
#bef to indemnify ! ,secret>y = ! loss  
reg>dless ( :5 an insurance claim is    
paid41 except if ! ,secret>y det]m9es t 
! fraud or misrepres5tation 0 ! result (
 fraud or misrepres5tation committ$ n by
 ! mortgagee b by a ?ird p>ty & t !     
mortgagee _h implem5t$ adequate quality 
control & review proc$ures to det]1     
detect1 & id5tify su* fraud or          
misrepres5tation4  7#c7 ,requirem5ts &  
proc$ures ,! ,secret>y %all issue       
regulations e/abli%+-- 7,a7 appropriate 
requirem5ts & proc$ures gov]n+ !        
indemnification ( ! ,secret>y by !      
mortgagee1 includ+ public report+ on--  
7i7 ! numb] ( loans t-- 7,i7 7 n        
orig9at$ 9 accordance ) ! requirem5ts   

e/abli%$ by ! ,secret>y2 &  7,,ii7      
involv$ fraud or misrepres5tation 9     
connection ) ! orig9ation2 &  7ii7 !    
f9ancial impact on ! ,mutual ,mortgage  
,insurance ,fund :5 indemnification is  
requir$2 &  7,b7 an appeals process1 or 
mak+ any necess>y modifications or      
revisions to an exi/+ appeals process ( 
! ,secret>y1 to appeal any det]m9ation (
 indemnification made by ! ,secret>y    
pursuant to p>agraph 7#a7 or 7#b74  7#d7
 ,applicability ,?is subsection %all    
only apply to mortgages insur$ "u ?is   
title t 7 orig9at$ on or aft] ! date (  
enactm5t ( ! ,,fha ,solv5cy ,act (      
#bjac4  7#e7 ,deposit 9 ! ,mutual       
,mortgage ,insurance ,fund ,! ,secret>y 
%all deposit any am\nts collect$        
pursuant to ?is subsection 91 & = ! use 
(1 ! ,mutual ,mortgage ,insurance ,fund4
  4  7b7 ,rule ( con/ruction ,no?+ 9    
subsection 7a71 or ! am5dm5t made by    
subsection 7a71 %all be con/ru$ to      
sup]s$e1 alt]1 or 9 any way affect !    
au?orities grant$ to ! ,secret>y ( ,h\s+

 & ,urban ,developm5t "u section #bef ( 
! ,national ,h\s+ ,act 7#ab ,u4,s4,c4   
#agaez-#ba74  #de4 ,review ( mortgagee  
p]=mance ,section #ecc ( ! ,national    
,h\s+ ,act 7#ab ,u4,s4,c4 #agce;f-#aa7  
is am5d$-- 7#a7 by am5d+ subsection 7a7 
to read z foll[s3  7a7 ,p]iodic review (
 mortgagee p]=mance ,to r$uce losses 9  
connection ) s+le family mortgage       
insurance programs "u ?is ,act1 at lea/ 
once a ye> ! ,secret>y %all review !    
mortgagees orig9at+ or und]writ+ insur$ 
s+le family mortgages4  2  7#b7 by am5d+
 subsection 7b7 to read z foll[s3  7b7  
,comp>ison ) o!r mortgagees  7#a7 ,9    
g5]al ,9 conduct+ ! review requir$ "u   
subsection 7a71 = ea* mortgagee !       
,secret>y %all comp>e t mortgagee ) o!r 
mortgagees orig9at+ or und]writ+ insur$ 
s+le family mortgages bas$ on ! rates ( 
defaults & claims = insur$ s+le family  
mortgage loans orig9at$ or und]writt5 by
 t mortgagee4 ,! ,secret>y may also     
comp>e t mortgagee ) su* o!r mortgagees 
bas$ on-- 7,a7 und]writ+ quality2  7,b7 

geographic area s]v$2 or  7,c7 any      
commonly us$ factors ! ,secret>y deems  
necess>y = comp>+ mortgage default risk1
 provid$ t su* comp>ison is ( factors t 
! ,secret>y w\ld expect to r$uce !      
default risk ( mortgages insur$ by !    
,secret>y4  7#b7 ,implem5tation ,9 c>ry+
 out ! comp>isons requir$ "u p>agraph   
7#a71 ! ,secret>y %all implem5t su*     
comp>isons by regulation1 notice1 or    
mortgagee lett]4  2 &  7#c7 9 subsection
 7c7-- 7,a7 by /rik+ p>agraph 7#a7 &    
ins]t+ ! foll[+3  7#a7 ,t]m9ation       
au?ority  7,a7 ,9 g5]al ,not)/&+ section
 #bjb7;c71 ! ,secret>y may t]m9ate !    
approval ( a mortgagee to orig9ate or   
und]write s+le family mortgages if !    
,secret>y det]m9es t ! mortgage loans   
orig9at$ or und]writt5 by ! mortgagee   
pres5t an unacceptable risk to !        
insurance funds4  7,b7 ,basis = det]m9+ 
unacceptable risk ,= purposes (         
subp>agraph 7,a71 a mortgagee may pres5t
 an unacceptable risk to ! insurance    
funds bas$ on-- 7i7 a comp>ison ( any ( 

! factors set =? 9 subsection 7b72 or   
7ii7 a det]m9ation t ! mortgagee engag$ 
9 fraud or misrepres5tation4  2  7,b7 by
 r$esignat+ p>agraph 7#b7 z p>agraph    
7#c72  7,c7 by ins]t+ aft] p>agraph 7#a7
 ! foll[+3  7#b7 ,applicability &       
en=cem5t ,! au?ority grant$ to !        
,secret>y "u p>agraph 7#a7 %all-- 7,a7  
apply = any specifi$ area or areas1 or  
on a nationwide basis2 &  7,b7 be made 9
 accordance ) any regulation1 notice1 or
 mortgagee lett] issu$ by ! ,secret>y4  
2 &  7,d7 9 p>agraph 7#c7 7z s          
r$esignat$7-- 7i7 by /rik+ 7#c7 ,!      
,secret>y %all give & ins]t+ 7#c7       
,notice & "r to in=mal conf]5ce4--,!    
,secret>y %all give2 &  7ii7 9 ! f\r?   
s5t5ce1 by /rik+ excessive default &    
claim rate & ins]t+ f9d+ ( an           
unacceptable risk to ! insurance funds4 
#f4 ,transf] ( mortgage s]vic+ duties   
7a7 ,9 g5]al ,title ,,ii ( ! ,national  
,h\s+ ,act 7#ab ,u4,s4,c4 #agjg et seq47
 is am5d$ by add+ at ! end ! foll[+ new 
section3  #bei4 ,transf] ( mortgage     

s]vic+ duties  7a7 ,transf] ( mortgage  
s]vic+ duties  7#a7 ,9 g5]al ,= any     
mortgage or pool ( mortgages insur$ "u  
?is title & 9 accordance ) rules        
promulgat$ by ! ,secret>y1 ! ,secret>y  
may require ! s]vic] ( any su* mortgage 
or pool ( mortgages to ent] into a      
subs]vic+ arrangem5t ) any indep5d5t    
specialty s]vic] approv$ by ! ,secret>y4
  7#b7 ,rules ,! rules requir$ "u       
p>agraph 7#a7 %all-- 7,a7 set =? )      
cl>ity ! p]=mance conditions ( a s]vic] 
t w\ld w>rant or necessitate ! use ( !  
au?ority grant$ to ! ,secret>y "u ?is   
section2  7,b7 require t ! p]=mance     
condition w>rant+ or necessitat+ ! use (
 su* au?ority be ( su* type or "* s z to
 mat]ially & adv]sely affect !          
,secret>y's ability to recov] any am\nts
 ow$ to ! ,secret>y2  7,c7 = purposes ( 
subp>agraph 7,b71 def9e ! t]m mat]ially 
& adv]sely affect2  7,d7 require t any  
s]vic] ^: s]vic+ duties are subject to  
?is section be provid$ a reasonable     
am\nt ( "t1 provid$ t su* "t does n     

pres5t a risk to ! ,mutual ,mortgage    
,insurance ,fund1 to rebut1 address1 or 
correct any det]m9ation ( ! ,secret>y   
reg>d+ a p]=mance condition describ$ "u 
subp>agraph 7,a72  7,e7 only p]mit !    
,secret>y to c>ry out ! au?ority grant$ 
"u ?is section ^u expiration ( !        
"t-p]iod all[$ "u subp>agraph 7,d72     
7,f7 limit ! scope ( any su* au?ority to
 mortgages t %>e simil> und]writ+1      
borr[]1 & p]=mance *>act]i/ics2  7,g7   
ensure t ! scope ( any su* au?ority is n
 appli$ broadly & )\t fur!r limitation2 
&  7,h7 not)/&+ subp>agraphs 7,b7 ?r\gh 
7,g71 provide t a s]vic] may be subject 
to m ext5sive programmatic discipl9e or 
correction measures1 z det]m9$ by !     
,secret>y1 if1 dur+ any #e-ye> p]iod--  
7i7 ! s]vic+ duties t are ! subject ( ! 
curr5t use ( ! ,secret>y's au?ority "u  
?is section m>ks ! ?ird in/ance ( ! use 
( su* au?ority ) respect to ! same      
s]vic]2 &  7ii7 ) respect to ! prior two
 sep>ate & individual in/ances ( ! use (
 su* au?ority1 ! same s]vic] fail$ to   

cure any id5tifi$ p]=mance conditions or
 implem5t corrective measures z det]m9$ 
by ! ,secret>y pursuant to subp>agraph  
7,d74  4  7b7 ,applicability ,! am5dm5t 
made by ?is section %all only apply to  
mortgages insur$ "u title ,,ii ( !      
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq47 t 7 orig9at$ on or aft] !
 date ( enactm5t ( ?is ,act4  #eg4 ,eas+
 regulatory burd5s2 res\rce guide  7a7  
,9 g5]al ,n lat] ?an #cfj days aft] !   
date ( enactm5t ( ?is ,act1 ! ,secret>y 
( ,h\s+ & ,urban ,developm5t 79 ?is     
section ref]r$ to z ! ,secret>y7 %all   
issue a s+le1 uni=m res\rce guide to    
in=m l5d]s & s]vic]s ( ! policies1      
processes1 & proc$ures applicable to    
mortgages insur$ "u title ,,ii ( !      
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq471 includ+1 b n limit$ to1 
! policies1 processes1 & proc$ures ( !  
,secret>y relat+ to any indemnification 
au?ority ( ! ,secret>y1 includ+ any     
crit]ia ! ,secret>y consid]s to be a    
mat]ial defect = purposes ( execut+ su* 

au?ority4  7b7 ,cont5t ,! res\rce guide 
requir$ "u subsection 7a7 %all aggregate
 all =ms1 policies1 & o!r relat$        
in=mation set =? 9 any h&books1         
mortgagee lett]s1 guidebooks1 notices1  
or bullet9s issu$ by ! ,secret>y4  7c7  
,updat+ ,beg9n+ on ! expiration ( ! date
 set =? "u subsection 7a71 :5ev] !      
,secret>y issues any new policy1        
process1 or proc$ure1 or revises or     
o!rwise am5ds any exi/+ policy1 process1
 or proc$ure conta9$ 9 ! res\rce guide  
requir$ "u subsection 7a71 su* addition1
 revision1 or am5dm5t %all be issu$ z an
 am5dm5t to ! res\rce guide4  7d7       
,public availability2 website access ,! 
res\rce guide requir$ "u subsection 7a7 
%all be made available to ! public &    
po/$ on ! website ( ! ,dep>tm5t ( !     
,h\s+ & ,urban ,developm5t4  7e7        
,au?orization ( appropriations ,!re are 
au?oriz$ to be appropriat$ su* sums z   
are necess>y to c>ry out ?is section4   
#fh4 ,improv+ und]writ+ /&>ds  7a7 ,9   
g5]al ,n lat] ?an #ahj days aft] ! date 

( enactm5t ( ?is ,act1 ! ,secret>y (    
,h\s+ & ,urban ,developm5t %all1 by     
mortgagee lett] or rule1 evaluate &     
revise z necess>y ! und]writ+ /&>ds =   
mortgages eligible to be insur$ "u title
 ,,ii ( ! ,national ,h\s+ ,act 7#ab     
,u4,s4,c4 #agjg et seq471 :i* %all--    
7#a7 be bas$ on empirically d]iv$1      
demon/rably & /ati/ically s\nd models2 &
  7#b7 include crit]ia1 ! evaluation (  
:i* has hi/orically result$ 9           
comp>atively l[ rates ( del9qu5cy &     
default dur+ adv]se economic conditions4
  7b7 ,crit]ia ,! und]writ+ /&>ds "u    
subsection 7a7 %all include an          
evaluation (-- 7#a7 ! curr5t or         
reasonably expect$ income & f9ancial    
res\rces ( a borr[]2  7#b7 ! employm5t  
/atus ( a borr[]1 if income us$ "u      
p>agraph 7#a7 is employm5t income2  7#c7
 ! mon?ly paym5t ( a borr[] "u ! t]ms ( 
a mortgage2  7#d7 ! mon?ly paym5t = any 
o!r loan held by ! borr[]2  7#e7 !      
mon?ly paym5t = any obligations relat$  
to ! mortgage2  7#f7 any o!r debt       

obligations ( a borr[]1 includ+ alimony 
& *ild support2  7#g7 ! mon?ly          
debt-to-income ratio or residual income 
( a borr[]2  7#h7 ! cr$it hi/ory ( a    
borr[]2 &  7#i7 any o!r risk factor or  
crit]ia1 z det]m9$ appropriate by !     
,secret>y4  #gi4 ,ensur+ adequate       
capital levels 9 ! ,mutual ,mortgage    
,insurance ,fund ,section #bje ( !      
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agaa7;f77 is am5d$-- 7#a7 9 subsection 
7f7-- 7,a7 9 p>agraph 7#b71 by /rik+    
%all ensure t ! ,fund ma9ta9s at lea/   
su* capital ratio at all times !reaft] &
 ins]t+ ma9ta9s su* ratio !reaft]1      
subject to p>agraph 7#c72 &  7,b7 by    
am5d+ p>agraph 7#c7 to read z foll[s3   
7#c7 ,! ,secret>y %all ensure t !       
,mutual ,mortgage ,insurance ,fund      
atta9s a capital ratio ( n less ?an #c4j
 p]c5t )9 #aj ye>s aft] ! date (        
enactm5t ( ! ,,fha ,solv5cy ,act (      
#bjac1 & %all ensure t ! ,fund ma9ta9s  
at lea/ su* capital ratio at all times  
!reaft]4  2 &  7#b7 by add+ at ! end !  

foll[+3  7g7 ,ensur+ adequate capital   
levels 9 ! ,mutual ,mortgage ,insurance 
,fund  7#a7 ,effective date  7,a7 ,9    
g5]al ,except z provid$ 9 subp>agraph   
7,b71 ?is subsection %all take effect on
 ! date ( enactm5t ( ! ,,fha ,solv5cy   
,act ( #bjac4  7,b7 ,exception =        
imposition ( sur*>ges  7i7 ,9 g5]al     
,p>agraphs 7#d77;,d71 7#e77;,d71 &      
7#f77;,d7 ( ?is subsection-- 7,i7 %all n
 h any =ce or effect dur+ ! #b-ye> p]iod
 beg9n+ on ! date ( enactm5t ( ! ,,fha  
,solv5cy ,act ( #bjac2 &  7,,ii7 %all   
take effect ^u ! e>li] (-- 7aa7 !       
expiration ( ! #b-ye> p]iod set =? "u   
subclause 7,i71 if 9 any annual         
indep5d5t actu>ial /udy requir$ "u      
section #bjb7;a77#d7 ! ,mutual ,mortgage
 ,insurance ,fund is designat$ z        
critically und]capitaliz$ pursuant to   
p>agraph 7#f72  7bb7 ! date ! indep5d5t 
actu>y commission$ to c>ry out ! annual 
indep5d5t actu>ial /udy requir$ "u      
section #bjb7;a77#d7 submits ! results (
 ! fiscal ye> #bjaf /udy to ! ,secret>y1

 if su* /udy f9ds t ! ,mutual ,mortgage 
,insurance ,fund has n a*iev$ ! capital 
ratio requir$ to be ma9ta9$ "u          
subsection 7f77#a72  7cc7 any date      
occurr+ aft] ! date set =? "u item 7bb71
 b prior to any date set =? "u items    
7dd7 or 7ee71 if 9 any annual indep5d5t 
actu>ial /udy requir$ "u section        
#bjb7;a77#d7 ! indep5d5t actu>y         
commission$ to c>ry out ! /udy f9ds--   
7,,aa7 t 9 comp>ison to ! indep5d5t     
actu>ial /udy submitt$ 9 ! mo/ rec5t    
prior fiscal ye>1 ! capital ratio ( !   
,fund has decreas$2 & 7,,bb7 ! m>ket %>e
 = mortgages insur$ "u ?is title has n  
be5 concurr5tly r$uc$ ?us contribut+ to 
! decrease 9 ! capital ratio describ$ "u
 subitem 7,,aa72  7dd7 ! date on :i* !  
,mutual ,mortgage ,insurance ,fund      
atta9s a capital ratio ( #c4j p]c5t2 or 
7ee7 ! date t is #aj ye>s aft] ! date ( 
enactm5t ( ! ,,fha ,solv5cy ,act (      
#bjac4  7ii7 ,rule ( con/ruction ,=     
purposes ( ?is subsection1 any f9d+ made
 "u item 7cc7 ( clause 7i77,,ii7 %all be

 deem$ to mean t ! ,mutual ,mortgage    
,insurance ,fund is und]capitaliz$      
pursuant to p>agraph 7#d7 & t not)/&+ ! 
provisions ( p>agraph 7#d77;,d77iv71 !  
,secret>y %all beg9 or cont9ue to       
collect any sur*>ge set =? "u p>agraph  
7#d77;,d71 until ! e>li] ( ! date on    
:i*-- 7,i7 ! next report ( ! ,secret>y  
on ! annual indep5d5t actu>ial /udy     
requir$ "u section #bjb7;a77#d7 f9ds t 9
 comp>ison to ! indep5d5t actu>ial /udy 
submitt$ 9 ! mo/ rec5t prior fiscal ye>1
 ! capital ratio ( ! ,fund has increas$2
  7,,ii7 ! report ( ! ,secret>y requir$ 
"u p>agraph 7#c77;,a7 f9ds t 9 comp>ison
 to ! indep5d5t actu>ial /udy submitt$ 9
 ! mo/ rec5t prior fiscal ye>1 ! capital
 ratio ( ! ,fund has increas$2 or       
7,,iii7 ! ,mutual ,mortgage ,insurance  
,fund has be5 designat$ z significantly 
und]capitaliz$ pursuant to p>agraph 7#e7
 or critically und]capitaliz$ pursuant  
to p>agraph 7#f7 & ! premium sur*>ge    
applicable to any su* designation has   
tak5 effect4  7#b7 ,duty ( ,*ief ,risk  

,(fic] ,foll[+ ! receipt by ! ,deputy   
,assi/ant ,secret>y & ,*ief ,risk ,(fic]
 ( ! f9al complet$ report = ! fiscal ye>
 ( ! indep5d5t actu>y commission$ to    
c>ry out ! annual indep5d5t actu>ial    
/udy requir$ "u section #bjb7;a77#d7    
analyz+ ! capital ratio ( ! ,mutual     
,mortgage ,insurance ,fund1 ! ,deputy   
,assi/ant ,secret>y & ,*ief ,risk ,(fic]
 %all1 z "p ( t individual's regul>ly   
assign$ duties & responsibilities1 h a  
duty to notify1 )9 #bd h\rs1 ! ,secret>y
 ( any failure to ma9ta9 ! capital ratio
 ( ! ,mutual ,mortgage ,insurance ,fund 
z requir$ "u subsection 7f74  7#c7      
,/udies & reports  7,a7 ,= :5 ,fund is  
und]capitaliz$ or significantly         
und]capitaliz$ ,if ! ,mutual ,mortgage  
,insurance ,fund is designat$ z         
und]capitaliz$ or significantly         
und]capitaliz$ pursuant to p>agraphs    
7#d7 or 7#e71 respectively1 !n n lat]   
?an #ahj days aft] date on :i* !        
,secret>y submits ! report on ! annual  
indep5d5t actu>ial /udy requir$ "u      

section #bjb7;a77#d71 & annually !reaft]
 until su* "t z ! ,mutual ,mortgage     
,insurance ,fund a*ieves ! capital ratio
 requir$ to be ma9ta9$ "u subsection    
7f71 ! ,secret>y %all provide a report  
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs ( ! ,s5ate & !          
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives updat+ ! results
 ( ! indep5d5t actu>ial /udy requir$ "u 
section #bjb7;a77#d7 to reflect ! mo/   
rec5tly available in=mation & analyz+ ! 
f9ancial position ( ! ,fund4  7,b7 ,= :5
 ,fund is critically und]capitaliz$ ,if 
! ,mutual ,mortgage ,insurance ,fund is 
designat$ z critically und]capitaliz$   
pursuant to p>agraph 7#f71 !n n lat] ?an
 ! la/ day ( ! curr5t fiscal qu>t] 9 :i*
 ! ,congress is in=m$ ( su* ev5ts       
pursuant to p>agraph 7#f77;,a71 & e     
fiscal qu>t] !reaft] until su* "t z !   
,mutual ,mortgage ,insurance ,fund      
a*ieves ! capital ratio requir$ to be   
ma9ta9$ "u subsection 7f7 or is         
designat$ z und]capitaliz$ or           

significantly und]capitaliz$ pursuant to
 p>agraphs 7#d7 or 7#e71 respectively1 !
 ,secret>y %all provide a report to !   
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives updat+ ! results ( !    
indep5d5t actu>ial /udy requir$ "u      
section #bjb7;a77#d7 to reflect ! mo/   
rec5tly available in=mation & analyz+ ! 
f9ancial position ( ! ,fund4  7,c7      
,failure to comply ) requir$ timel9es   
,if ! ,secret>y fails to comply ) any   
timel9e requir$ "u subp>agraphs 7,a7 or 
7,b71 ! ,secret>y %all appe> be=e !     
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives )9 #g days ( ! la/ day (
 t deadl9e to provide te/imony expla9+ !
 failure to comply4  7#d7 ,corrective   
actions :5 ,fund is und]capitaliz$  7,a7
 ,notice to ,congress ,n lat] ?an #g    
days aft] ! date on :i* ! ,secret>y is  
in=m$ t ! ,mutual ,mortgage ,insurance  

,fund has a capital ratio ( n less ?an  
#ej p]c5t b less ?an #ajj p]c5t ( !     
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 ! ,secret>y %all notify 
! ,*air & ,rank+ ,memb] ( ! ,committee  
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate & ! ,*air & ,rank+ ,memb] ( !    
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives ( su* %ortfall1 
& ! exact date on :i* ! ,secret>y 0     
in=m$ ( su* %ortfall4  7,b7 ,submission 
( capital re/oration plan ,n lat] ?an   
#cj days aft] ! date on :i* notice is   
provid$ "u subp>agraph 7,a71 ! ,secret>y
 %all submit to ! ,*air & ,rank+ ,memb] 
( ! ,committee on ,bank+1 ,h\s+1 &      
,urban ,affairs ( ! ,s5ate & ! ,*air &  
,rank+ ,memb] ( ! ,committee on         
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives a capital re/oration    
plan1 includ+ a timel9e = implem5tation 
( su* plan1 to a*ieve ! capital ratio   
requir$ to be ma9ta9$ "u subsection 7f74
 ,! plan requir$ "u ?is subp>agraph %all
 be revis$ annually until su* "t z !    

,mutual ,mortgage ,insurance ,fund      
a*ieves ! capital ratio requir$ to be   
ma9ta9$ "u subsection 7f74  7,c7        
,congressional te/imony ,n lat] ?an #de 
days aft] ! date on :i* notice is       
provid$ "u subp>agraph 7,a71 & annually 
!reaft] until su* "t z ! ,mutual        
,mortgage ,insurance ,fund a*ieves !    
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 ! ,secret>y %all provide
 te/imony to ! ,committee on ,bank+1    
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives on ! capital    
/atus ( ! ,fund & ! p]=mance or project$
 p]=mance ( ! plan submitt$ "u          
subp>agraph 7,b74  7,d7 ,imposition (   
premium sur*>ge  7i7 ,9 g5]al ,not)/&+  
any limitation on ! am\nt ( any premium 
paym5t set =? "u section #bjc7;c71 9    
addition to ! premiums collect$ "u      
subp>agraphs 7,a71 7,b71 & 7,c7 (       
p>agraph 7#b7 ( section #bjc7;c71 if !  
,mutual ,mortgage ,insurance ,fund is   
designat$ z und]capitaliz$ pursuant to  

?is p>agraph1 ! ,secret>y %all e/abli% &
 collect annual premium paym5ts = any   
newly insur$ mortgage = :i* ! ,secret>y 
collects an annual premium paym5t "u    
section #bjc7;c71 except = ^? mortgages 
insur$ pursuant to section #bee1 9 an   
am\nt describ$ 9 clause 7ii74  7ii7     
,am\nt ( sur*>ge ,) respect to a        
mortgage1 ! am\nt describ$ 9 ?is clause 
is #aj basis po9ts ( ! rema9+ insur$    
pr9cipal balance 7exclud+ ! portion ( ! 
rema9+ balance attributable to ! premium
 collect$ "u p>agraph 7#b77;,a7 (       
section #bjc7;c7 & )\t tak+ into acc\nt 
del9qu5t paym5ts or prepaym5ts74  7iii7 
,effective date  7,i7 ,9 g5]al ,subject 
to subclause 7,,ii71 ! requirem5t to    
collect ! annual premium paym5t set =?  
"u ?is subp>agraph %all take effect on !
 date t is #ahj days aft] ! date on :i* 
notice is provid$ to ,congress "u       
subp>agraph 7,a74  7,,ii7 ,delay ,!     
effective date ( ! requirem5t to collect
 ! annual premium paym5t set =? "u ?is  
subp>agraph may be ext5d$ = an          

additional #ahj days1 if prior to !     
expiration ( ! initial #ahj-;day "t     
p]iod describ$ "u subclause 7,i71 !     
report ( ! ,secret>y requir$ "u p>agraph
 7#c77;,a7-- 7aa7 is submitt$ to        
,congress2 &  7bb7 f9ds t ! ,mutual     
,mortgage ,insurance ,fund has a*iev$ ! 
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f74  7,,iii7 ,re9/itution ( 
sur*>ge ,not)/&+ subclauses 7,i7 &      
7,,ii71 if ! next report ( ! ,secret>y  
on ! annual indep5d5t actu>ial /udy     
requir$ "u section #bjb7;a77#d7 t is    
submitt$ aft] ! report ( ! ,secret>y    
describ$ 9 subclause 7,,ii7 f9ds t !    
,mutual ,mortgage ,insurance ,fund has n
 a*iev$ ! capital ratio requir$ to be   
ma9ta9$ "u subsection 7f71 !n !         
effective date ( ! requirem5t to collect
 ! annual premium paym5t set =? "u ?is  
subp>agraph %all be ! date t is #cj days
 aft] ! date on :i* su* report is       
submitt$ to ,congress4  7iv7 ,cessation 
( application ,! ,secret>y %all n be    
requir$ to collect ! annual premium     

paym5t set =? "u ?is subp>agraph1 if1 at
 any "t aft] ! date on :i* su*          
requirem5t has gone into effect1 ei!r-- 
7,i7 ! report ( ! ,secret>y on ! annual 
indep5d5t actu>ial /udy requir$ "u      
section #bjb7;a77#d7 f9ds t ! ,mutual   
,mortgage ,insurance ,fund has a*iev$ ! 
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f72  7,,ii7 ! report ( !    
,secret>y requir$ "u p>agraph 7#c77;,a7 
f9ds t ! ,mutual ,mortgage ,insurance   
,fund has a*iev$ ! capital ratio requir$
 to be ma9ta9$ "u subsection 7f72 or    
7,,iii7 ! ,mutual ,mortgage ,insurance  
,fund has be5 designat$ significantly   
und]capitaliz$ pursuant to p>agraph 7#e7
 or critically und]capitaliz$ pursuant  
to p>agraph 7#f7 & ! premium sur*>ge    
applicable to any su* designation has   
tak5 effect4  7#e7 ,corrective actions  
:5 ,fund is significantly und]capitaliz$
  7,a7 ,notice to ,congress ,n lat] ?an 
#g days aft] ! date on :i* ! ,secret>y  
is in=m$ t ! ,mutual ,mortgage          
,insurance ,fund has a capital ratio ( n

 less ?an #j p]c5t b less ?an #ej p]c5t 
( ! capital ratio requir$ to be ma9ta9$ 
"u subsection 7f71 ! ,secret>y %all     
notify ! ,*air & ,rank+ ,memb] ( !      
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,*air & ,rank+  
,memb] ( ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives (  
su* %ortfall1 & ! date on :i* !         
,secret>y 0 in=m$ ( su* %ortfall4  7,b7 
,submission ( revis$ capital re/oration 
plan ,n lat] ?an #cj days aft] ! date on
 :i* notice is provid$ "u subp>agraph   
7,a71 ! ,secret>y %all submit to ! ,*air
 & ,rank+ ,memb] ( ! ,committee on      
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,*air & ,rank+ ,memb] ( !    
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives a capital       
re/oration plan1 or a revis$ capital    
re/oration plan1 includ+ a timel9e =    
implem5tation ( su* plan or revis$ plan1
 to a*ieve ! capital ratio requir$ to be
 ma9ta9$ "u subsection 7f74 ,! plan     
requir$ "u ?is subp>agraph %all be      

revis$ annually until su* "t z ! ,mutual
 ,mortgage ,insurance ,fund a*ieves !   
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f74  7,c7 ,congressional    
te/imony ,n lat] ?an #de days aft] !    
date on :i* notice is provid$ "u        
subp>agraph 7,a71 & e #ahj days !reaft] 
until su* "t z ! ,mutual ,mortgage      
,insurance ,fund a*ieves ! capital ratio
 requir$ to be ma9ta9$ "u subsection    
7f71 ! ,secret>y %all provide te/imony  
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs ( ! ,s5ate & !          
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives on ! capital    
/atus ( ! ,fund & ! p]=mance or project$
 p]=mance ( ! revis$ capital re/oration 
plan submitt$ "u subp>agraph 7,b74  7,d7
 ,imposition ( premium sur*>ge  7i7 ,9  
g5]al ,not)/&+ any limitation on ! am\nt
 ( any premium paym5t set =? "u section 
#bjc7;c71 9 addition to ! premiums      
collect$ "u subp>agraphs 7,a71 7,b71 &  
7,c7 ( p>agraph 7#b7 ( section #bjc7;c71
 if ! ,mutual ,mortgage ,insurance ,fund

 is designat$ z significantly           
und]capitaliz$ pursuant to ?is p>agraph1
 ! ,secret>y %all e/abli% & collect     
annual premium paym5ts = any newly      
insur$ mortgage = :i* ! ,secret>y       
collects an annual premium paym5t "u    
section #bjc7;c71 except = ^? mortgages 
insur$ pursuant to section #bee1 9 an   
am\nt describ$ 9 clause 7ii74  7ii7     
,am\nt ( sur*>ge ,) respect to a        
mortgage1 ! am\nt describ$ 9 ?is clause 
is #bj basis po9ts ( ! rema9+ insur$    
pr9cipal balance 7exclud+ ! portion ( ! 
rema9+ balance attributable to ! premium
 collect$ "u p>agraph 7#b77;,a7 (       
section #bjc7;c7 & )\t tak+ into acc\nt 
del9qu5t paym5ts or prepaym5ts74  7iii7 
,effective date  7,i7 ,9 g5]al ,subject 
to subclause 7,,ii71 ! requirem5t to    
collect ! annual premium paym5t set =?  
"u ?is subp>agraph %all take effect on !
 date t is #ahj days aft] ! date on :i* 
notice is provid$ to ,congress "u       
subp>agraph 7,a74  7,,ii7 ,delay ,!     
effective date ( ! requirem5t to collect

 ! annual premium paym5t set =? "u ?is  
subp>agraph %all be ext5d$ = an         
additional #ahj days1 if prior to !     
expiration ( ! initial #ahj-;day "t     
p]iod describ$ "u subclause 7,i71 !     
report ( ! ,secret>y requir$ "u p>agraph
 7#c77;,a7-- 7aa7 is submitt$ to        
,congress2 &  7bb7 f9ds t ! ,mutual     
,mortgage ,insurance ,fund-- 7,,aa7 has 
a*iev$ ! capital ratio requir$ to be    
ma9ta9$ "u subsection 7f72 or 7,,bb7 has
 a capital ratio ( n less ?an #ej p]c5t 
b less ?an #ajj p]c5t ( ! capital ratio 
requir$ to be ma9ta9$ "u subsection 7f71
 at :i* po9t ! provisions ( p>agraph    
7#d77;,d7 %all be applicable1 except t !
 provisions ( clause 7iii7 ( su*        
p>agraph 7#d77;,d7 %all n be applicable 
& t ! premium sur*>ge applicable to su* 
p>agraph %all take effect )9 #cj days ( 
! issuance ( su* report4  7,,iii7       
,re9/itution ( sur*>ge ,not)/&+         
subclauses 7,i7 & 7,,ii71 if ! next     
report ( ! ,secret>y on ! annual        
indep5d5t actu>ial /udy requir$ "u      

section #bjb7;a77#d7 t is submitt$ aft] 
! report ( ! ,secret>y describ$ 9       
subclause 7,,ii7 f9ds t ! ,mutual       
,mortgage ,insurance ,fund has a capital
 ratio ( n less ?an #j p]c5t b less ?an 
#ej p]c5t ( ! capital ratio requir$ to  
be ma9ta9$ "u subsection 7f71 !n !      
effective date ( ! requirem5t to collect
 ! annual premium paym5t set =? "u ?is  
subp>agraph %all be ! date t is #cj days
 aft] ! date on :i* su* report is       
submitt$ to ,congress4  7iv7 ,cessation 
( application ,! ,secret>y %all n be    
requir$ to collect ! annual premium     
paym5t set =? "u ?is subp>agraph1 if1 at
 any "t aft] ! date on :i* su*          
requirem5t has gone into effect1 ei!r-- 
7,i7 ! report ( ! ,secret>y on ! annual 
indep5d5t actu>ial /udy requir$ "u      
section #bjb7;a77#d7 f9ds t ! ,mutual   
,mortgage ,insurance ,fund-- 7aa7 has   
a*iev$ ! capital ratio requir$ to be    
ma9ta9$ "u subsection 7f72 or  7bb7 has 
a capital ratio ( n less ?an #ej p]c5t b
 less ?an #ajj p]c5t ( ! capital ratio  

requir$ to be ma9ta9$ "u subsection 7f71
 at :i* po9t ! provisions ( p>agraph    
7#d77;,d7 %all be applicable1 except t !
 provisions ( clause 7iii7 ( su*        
p>agraph 7#d77;,d7 %all n be applicable 
& t ! premium sur*>ge applicable to su* 
p>agraph %all take effect )9 #cj days ( 
! issuance ( su* report2  7,,ii7 !      
report ( ! ,secret>y requir$ "u p>agraph
 7#c77;,a7 f9ds t ! ,mutual ,mortgage   
,insurance ,fund-- 7aa7 has a*iev$ !    
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f72 or  7bb7 has a capital  
ratio ( n less ?an #ej p]c5t b less ?an 
#ajj p]c5t ( ! capital ratio requir$ to 
be ma9ta9$ "u subsection 7f71 at :i*    
po9t ! provisions ( p>agraph 7#d77;,d7  
%all be applicable1 except t !          
provisions ( clause 7iii7 ( su* p>agraph
 7#d77;,d7 %all n be applicable & t !   
premium sur*>ge applicable to su*       
p>agraph %all take effect )9 #cj days ( 
! issuance ( su* report2 or  7,,iii7 !  
,mutual ,mortgage ,insurance ,fund has  
be5 designat$ z critically              

und]capitaliz$ pursuant to p>agraph 7#f7
 & ! premium sur*>ge applicable to any  
su* designation has tak5 effect4  7,e7  
,requir$ exam9ation ( und]writ+         
requirem5ts ,if ! ,mutual ,mortgage     
,insurance ,fund is designat$ z         
significantly und]capitaliz$ pursuant to
 ?is p>agraph1 ! ,secret>y %all-- 7i7 n 
lat] ?an #cj days aft] ! date on :i*    
notice is provid$ "u subp>agraph 7,a71  
exam9e all ( its product l9es1 product  
or insurance features1 & und]writ+      
crit]ia = ways to /r5g!n & enhance su*  
products1 features1 or crit]ia to limit 
losses to ! ,mutual ,mortgage ,insurance
 ,fund2  7ii7 9 c>ry+ out ! requirem5t  
"u clause 7i71 und]take su* exam9ation  
actions z are necess>y to r$uce !       
f9ancial vuln]ability ( ! ,mutual       
,mortgage ,insurance ,fund f ^? risk    
*>act]i/ics or product l9es t mo/       
contribute to ! default ( mortgages     
insur$ "u section #bjb1 includ+ by      
review+ ! und]writ+ & s]vic+ /&>ds =    
mortgages to be insur$ by ! ,secret>y1  

includ+1 b n limit$ to1 a review (--    
7,i7 ! am\nt ( ca% or its equival5t     
requir$ to be paid on acc\nt ( ! prop]ty
 subject to a mortgage t is an          
obligation ( ! ,fund2  7,,ii7 s]vic]    
compliance ) any loan s]vic+ or loss    
mitigation guidel9es ( ! ,secret>y2 &   
7,,iii7 economic conditions pres5t 9 !  
h\s+ m>ket1 provid$ !re is a demon/rat$ 
likelihood t ! policies ( ! ,secret>y   
w\ld impact ^? economic conditions2 &   
7iii7 submit to ! ,committee on ,bank+1 
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives any analysis1   
f9d+s1 or recomm5dations us$ or made by 
! ,secret>y to c>ry out ! requirem5ts ( 
?is subp>agraph4  7#f7 ,corrective      
actions :5 ,fund is critically          
und]capitaliz$  7,a7 ,notice to         
,congress ,n lat] ?an #g days aft] !    
date on :i* ! ,secret>y is in=m$ t !    
,mutual ,mortgage ,insurance ,fund has a
 capital ratio ( less ?an #j p]c5t ( !  
capital ratio requir$ to be ma9ta9$ "u  

subsection 7f71 ! ,secret>y %all notify 
! ,*air & ,rank+ ,memb] ( ! ,committee  
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate & ! ,*air & ,rank+ ,memb] ( !    
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives ( su* %ortfall1 
& ! date on :i* ! ,secret>y 0 in=m$ (   
su* %ortfall4  7,b7 ,submission ( fur!r 
revis$ capital re/oration plan ,n lat]  
?an #cj days aft] ! date on :i* notice  
is provid$ "u subp>agraph 7,a71 !       
,secret>y %all jo9tly submit ) !        
,secret>y ( ! ,treasury to ! ,*air &    
,rank+ ,memb] ( ! ,committee on ,bank+1 
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,*air & ,rank+ ,memb] ( ! ,committee on 
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives a capital re/oration    
plan1 or a revis$ capital re/oration    
plan1 includ+ a timel9e = implem5tation 
( su* plan1 to a*ieve ! capital ratio   
requir$ to be ma9ta9$ "u subsection 7f74
 ,! plan requir$ "u ?is subp>agraph %all
 be revis$ & submitt$ annually ) !      
,secret>y ( ! ,treasury1 until su* "t z 

! ,mutual ,mortgage ,insurance ,fund    
a*ieves ! capital ratio requir$ to be   
ma9ta9$ "u subsection 7f74  7,c7        
,congressional te/imony ,n lat] ?an #de 
days aft] ! date on :i* notice is       
provid$ "u subp>agraph 7,a71 & e #ahj   
days !reaft] until su* "t z ! ,mutual   
,mortgage ,insurance ,fund a*ieves !    
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 ! ,secret>y & !         
,secret>y ( ! ,treasury %all ea* provide
 te/imony to ! ,committee on ,bank+1    
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives on ! capital    
/atus ( ! ,fund & ! success or failure (
 ! fur!r revis$ capital re/oration plan 
submitt$ "u subp>agraph 7,b74  7,d7     
,imposition ( premium sur*>ge  7i7 ,9   
g5]al ,not)/&+ any limitation on ! am\nt
 ( any premium paym5t set =? "u section 
#bjc7;c71 9 addition to ! premiums      
collect$ "u subp>agraphs 7,a71 7,b71 &  
7,c7 ( p>agraph 7#b7 ( section #bjc7;c71
 if ! ,mutual ,mortgage ,insurance ,fund

 is designat$ z critically              
und]capitaliz$ pursuant to ?is p>agraph1
 ! ,secret>y %all e/abli% & collect     
annual premium paym5ts = any newly      
insur$ mortgage = :i* ! ,secret>y       
collects an annual premium paym5t "u    
section #bjc7;c71 except = ^? mortgages 
insur$ pursuant to section #bee1 9 an   
am\nt describ$ 9 clause 7ii74  7ii7     
,am\nt ( sur*>ge ,) respect to a        
mortgage1 ! am\nt describ$ 9 ?is clause 
is #cj basis po9ts ( ! rema9+ insur$    
pr9cipal balance 7exclud+ ! portion ( ! 
rema9+ balance attributable to ! premium
 collect$ "u p>agraph 7#b77;,a7 (       
section #bjc7;c7 & )\t tak+ into acc\nt 
del9qu5t paym5ts or prepaym5ts74  7iii7 
,effective date  7,i7 ,9 g5]al ,subject 
to subclause 7,,ii71 ! requirem5t to    
collect ! annual premium paym5t set =?  
"u ?is subp>agraph %all take effect on !
 date t is #ahj days aft] ! date on :i* 
notice is provid$ to ,congress "u       
subp>agraph 7,a74  7,,ii7 ,delay ,!     
effective date ( ! requirem5t to collect

 ! annual premium paym5t set =? "u ?is  
subp>agraph %all be ext5d$ = an         
additional #ahj days1 if prior to !     
expiration ( ! initial #ahj-;day "t     
p]iod describ$ "u subclause 7,i71 !     
report ( ! ,secret>y requir$ "u p>agraph
 7#c77;,b7-- 7aa7 is submitt$ to        
,congress2 &  7bb7 f9ds t ! ,mutual     
,mortgage ,insurance ,fund-- 7,,aa7 has 
a*iev$ ! capital ratio requir$ to be    
ma9ta9$ "u subsection 7f72 7,,bb7 has a 
capital ratio ( n less ?an #ej p]c5t b  
less ?an #ajj p]c5t ( ! capital ratio   
requir$ to be ma9ta9$ "u subsection 7f71
 at :i* po9t ! provisions ( p>agraph    
7#d77;,d7 %all be applicable1 except t !
 provisions ( clause 7iii7 ( su*        
p>agraph 7#d77;,d7 %all n be applicable 
& t ! premium sur*>ge applicable to su* 
p>agraph %all take effect )9 #cj days ( 
! issuance ( su* report2 or 7,,cc7 has a
 capital ratio ( n less ?an #j p]c5t b  
less ?an #ej p]c5t ( ! capital ratio    
requir$ to be ma9ta9$ "u subsection 7f71
 at :i* po9t ! provisions ( p>agraph    

7#e77;,d7 %all be applicable1 except t !
 provisions ( clause 7iii7 ( su*        
p>agraph 7#e77;,d7 %all n be applicable 
& t ! premium sur*>ge applicable to su* 
p>agraph %all take effect )9 #cj days ( 
! issuance ( su* report4  7,,iii7       
,re9/itution ( sur*>ge ,not)/&+         
subclauses 7,i7 & 7,,ii71 if )9 #a      
cal5d> ye> any report ( ! ,secret>y     
requir$ "u p>agraph 7#c77;,b7 f9ds t !  
,mutual ,mortgage ,insurance ,fund has a
 capital ratio ( less ?an #j p]c5t ( !  
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 !n ! effective date ( ! 
requirem5t to collect ! annual premium  
paym5t set =? "u ?is subp>agraph %all be
 ! date t is #cj days aft] ! date on :i*
 su* report is submitt$ to ,congress4   
7iv7 ,cessation ( application ,!        
,secret>y %all n be requir$ to collect !
 annual premium paym5t set =? "u ?is    
subp>agraph1 if1 at any "t aft] ! date  
on :i* su* requirem5t has gone into     
effect1 ei!r-- 7,i7 ! report ( !        
,secret>y on ! annual indep5d5t actu>ial

 /udy requir$ "u section #bjb7;a77#d7   
f9ds t ! ,mutual ,mortgage ,insurance   
,fund-- 7aa7 has a*iev$ ! capital ratio 
requir$ to be ma9ta9$ "u subsection 7f72
  7bb7 has a capital ratio ( n less ?an 
#ej p]c5t b less ?an #ajj p]c5t ( !     
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 at :i* po9t ! provisions
 ( p>agraph 7#d77;,d7 %all be           
applicable1 except t ! provisions (     
clause 7iii7 ( su* p>agraph 7#d77;,d7   
%all n be applicable & t ! premium      
sur*>ge applicable to su* p>agraph %all 
take effect )9 #cj days ( ! issuance (  
su* report2 or  7cc7 has a capital ratio
 ( n less ?an #j p]c5t b less ?an #ej   
p]c5t ( ! capital ratio requir$ to be   
ma9ta9$ "u subsection 7f71 at :i* po9t !
 provisions ( p>agraph 7#e77;,d7 %all be
 applicable1 except t ! provisions (    
clause 7iii7 ( su* p>agraph 7#e77;,d7   
%all n be applicable & t ! premium      
sur*>ge applicable to su* p>agraph %all 
take effect )9 #cj days ( ! issuance (  
su* report2 or  7,,ii7 ! report ( !     

,secret>y requir$ "u p>agraph 7#c77;,b7 
f9ds t ! ,mutual ,mortgage ,insurance   
,fund-- 7aa7 has a*iev$ ! capital ratio 
requir$ to be ma9ta9$ "u subsection 7f72
  7bb7 has a capital ratio ( n less ?an 
#ej p]c5t b less ?an #ajj p]c5t ( !     
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 at :i* po9t ! provisions
 ( p>agraph 7#d77;,d7 %all be           
applicable1 except t ! provisions (     
clause 7iii7 ( su* p>agraph 7#d77;,d7   
%all n be applicable & t ! premium      
sur*>ge applicable to su* p>agraph %all 
take effect )9 #cj days ( ! issuance (  
su* report2 or  7cc7 has a capital ratio
 ( n less ?an #j p]c5t b less ?an #ej   
p]c5t ( ! capital ratio requir$ to be   
ma9ta9$ "u subsection 7f71 at :i* po9t !
 provisions ( p>agraph 7#e77;,d7 %all be
 applicable1 except t ! provisions (    
clause 7iii7 ( su* p>agraph 7#e77;,d7   
%all n be applicable & t ! premium      
sur*>ge applicable to su* p>agraph %all 
take effect )9 #cj days ( ! issuance (  
su* report4  7,e7 ,requir$ enhancem5ts  

to und]writ+ requirem5ts ,if ! ,mutual  
,mortgage ,insurance ,fund is designat$ 
z critically und]capitaliz$ pursuant to 
?is p>agraph1 ! ,secret>y %all-- 7i7 n  
lat] ?an #cj days aft] ! date on :i*    
notice is provid$ "u subp>agraph 7,a71  
take su* actions z necess>y to revise   
its product l9es1 product or insurances 
features1 or und]writ+ crit]ia 9 ord] to
 /r5g!n & enhance su* products1         
features1 or crit]ia to limit losses to 
! ,mutual ,mortgage ,insurance ,fund2   
7ii7 9 c>ry+ out ! requirem5t "u clause 
7i71 und]take su* actions z are necess>y
 to r$uce ! f9ancial vuln]ability ( !   
,mutual ,mortgage ,insurance ,fund f ^? 
risk *>act]i/ics or product l9es t mo/  
contribute to ! default ( mortgages     
insur$ "u section #bjb1 su* actions--   
7,i7 may include1 b are n limit$ to1 a  
revision ( !-- 7aa7 am\nt ( ca% or its  
equival5t requir$ to be paid on acc\nt (
 ! prop]ty subject to a mortgage t is an
 obligation ( ! ,fund2  7bb7 s]vic]     
/&>ds = compliance ) any loan s]vic+ or 

loss mitigation guidel9es ( ! ,secret>y2
 &  7cc7 treatm5t ( loan modification   
reque/s made by borr[]s hav+ insurance  
provid$ "u ?is title seek+ assi/ance "u 
a modification program ( ! ,secret>y2 & 
7,,ii7 %all take into consid]ation      
economic conditions pres5t 9 ! h\s+     
m>ket1 provid$ !re is a demon/rat$      
likelihood t ! policies ( ! ,secret>y   
w\ld impact ^? economic conditions2 &   
7iii7 submit to ! ,committee on ,bank+1 
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives any relevant    
f9al analysis us$ by ! ,secret>y to c>ry
 out ! requirem5ts ( ?is subp>agraph4   
7#g7 ,m&atory reevaluation ,^u ! ,mutual
 ,mortgage ,insurance ,fund a*iev+ !    
capital ratio requir$ to be ma9ta9$ "u  
subsection 7f71 ! ,secret>y-- 7,a7 %all 
review any actions tak5 pursuant to ?is 
subsection2  7,b7 %all exam9e & det]m9e 
:e!r-- 7i7 ! ne$ to ma9ta9 su* action is
 necess>y2 &  7ii7 ! repeal1 revision1  
or am5dm5t ( any su* action c be c>ri$  

out )\t hav+ any adv]se effect on !     
ability ( ! ,fund to ma9ta9 ! capital   
ratio requir$ "u subsection 7f72 &  7,c7
 may1 pursuant to any det]m9ation "u    
subp>agraph 7,b7 t no su* adv]se effects
 exi/1 repeal1 revise1 or am5d any su*  
action z ! ,secret>y det]m9es           
appropriate4  4  #aj4 ,/ress te/+ ( !   
,mutual ,mortgage ,insurance ,fund      
,section #bjb7;a77#d7 ( ! ,national     
,h\s+ ,act 7#ab ,u4,s4,c4 #agjh7;a77#d77
 is am5d$ by ins]t+ aft] ! la/ s5t5ce ! 
foll[+3 ,! report %all also include an  
alt]native /ress te/ sc5>io ( ! ,fund   
bas$ on relevant assumptions us$ 9 !    
annual ,compreh5sive ,capital ,analysis 
& ,review /ress te/s p]=m$ by ! ,bo>d ( 
,gov]nors ( ! ,f$]al ,res]ve ,sy/em4 ,! 
alt]native /ress te/ sc5>io ( ! ,fund   
%all be develop$ by ! ,secret>y1 9      
consultation ) ! ,bo>d ( ,gov]nors ( !  
,f$]al ,res]ve ,sy/em1 & appropriately  
tailor$ = purposes ( assess+ ! f9ancial 
/atus ( ! ,fund4 ,a summ>y ( ! results (
 ! alt]native /ress te/ sc5>io ( !      

,fund1 z well z any o!r /ress te/ sc5>io
 ( ! ,fund t may be utiliz$1 %all be    
includ$ 9 ! report44  #aa4              
,congressional notification ( use (     
c]ta9 au?orities ) respect to ! ,,fha   
7a7 ,notice by ,treasury ,! ,secret>y ( 
! ,treasury %all provide writt5 notice  
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs ( ! ,s5ate & !          
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives )9 #dh h\rs ( ! 
ex]cise ( any au?ority grant$ "u section
 #ejd7;f7 ( ! ,f$]al ,cr$it ,re=m ,act (
 #aiij 7#b ,u4,s4,c4 #ffa;c7f77 to c>ry 
out any transaction to fund any acc\nt  
e/abli%$ = ! b5efit ( ! ,dep>tm5t (     
,h\s+ & ,developm5t1 ! ,f$]al ,h\s+     
,adm9i/ration1 or ! ,mutual ,mortgage   
,insurance ,fund e/abli%$ "u section    
#bjb ( ! ,national ,h\s+ ,act 7#ab      
,u4,s4,c4 #agjh74  7b7 ,notice by ,,hud 
,! ,secret>y ( ,h\s+ & ,urban           
,developm5t %all provide writt5 notice  
to ! ,committee on ,bank+1 ,h\s+1 &     
,urban ,affairs ( ! ,s5ate & !          

,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives )9 #dh h\rs ( ! 
receipt ( any am\nts describ$ "u        
subsection 7a74  7c7 ,inclusion 9       
requir$ reports ,! ,secret>y ( ,h\s+ &  
,urban ,developm5t %all include1 9 any  
report requir$ by law to be submitt$ to 
,congress1 includ+ any annual1 qu>t]ly1 
actu>ial1 or o!r report requir$ to be   
submitt$ to ! ,committee on ,bank+1     
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tative1 ! doll> am\nt ( 
any am\nts ow$ by ! ,secret>y ( ,h\s+ & 
,urban ,developm5t to ! ,treasury z a   
result ( ! ex]cise ( any au?ority grant$
 "u section #ejd7;f7 ( ! ,f$]al ,cr$it  
,re=m ,act ( #aiij 7#b ,u4,s4,c4        
#ffa;c7f774  7d7 ,public availability   
7#a7 ,treasury ,z soon z is practicable1
 ! notice requir$ by subsection 7a7 %all
 be made available to ! public & po/$ on
 ! website ( ! ,dep>tm5t ( ! ,treasury4 
7#b7 ,,hud ,z soon z is practicable1 !  
notice requir$ by subsection 7b7 %all be

 made available to ! public & po/$ on ! 
website ( ! ,dep>tm5t ( ,h\s+ & ,urban  
,developm5t4  #hab4 ,e/abli%m5t (       
,deputy ,assi/ant ,secret>y & ,*ief     
,risk ,(fic] ( ,,fha  7a7 ,9 g5]al      
,subsection 7b7 ( section #d ( !        
,dep>tm5t ( ,h\s+ & ,urban ,developm5t  
,act 7#db ,u4,s4,c4 #cecc7;b77 is       
am5d$-- 7#a7 by /rik+ ,!re %all be &    
ins]t+ ! foll[+3  7#a7 ,e/abli%m5t (    
,commission] ,!re %all be  2 &  7#b7 by 
add+ at ! end ! foll[+3  7#b7           
,e/abli%m5t ( ,deputy ,assi/ant         
,secret>y & ,*ief ,risk ,(fic]  7,a7    
,appo9tm5t ,!re %all be 9 ! ,dep>tm5t1  
)9 ! ,f$]al ,h\s+ ,adm9i/ration1 a      
,deputy ,assi/ant ,secret>y & ,*ief     
,risk ,(fic]1 :o %all be appo9t$ by !   
,secret>y & %all be responsible to !    
,f$]al ,h\s+ ,commission] = all matt]s  
relat+ to manag+ & mitigat+ risk to !   
mortgage insurance funds ( ! ,dep>tm5t &
 ensur+ ! p]=mance ( mortgages insur$ by
 ! ,dep>tm5t to protect borr[]s &       
taxpay]s4  7,b7 ,responsibilities ,!    

,deputy ,assi/ant ,secret>y & ,*ief     
,risk ,(fic] e/abli%$ "u subp>agraph    
7,a7 %all h-- 7i7 compreh5sive risk     
managem5t & regulatory k 9 key risks1   
includ+ cr$it1 int]e/ rate1 & op]ational
 risk2  7ii7 a s\nd und]/&+ ( ! tools & 
me?odologies us$ to measure & quantify  
risk1 includ+ ! use ( /ati/ical models2 
&  7iii7 a broad und]/&+ & k ( mortgage 
indu/ry be/ practices = risk managem5t4 
7,c7 ,und]writ+ report  7i7 ,9 g5]al ,n 
lat] ?an #a ye> aft] ! date ( enactm5t (
 ! ,,fha ,solv5cy ,act ( #bjac1 &       
annually !reaft]1 ! ,deputy ,assi/ant   
,secret>y & ,*ief ,risk ,(fic] 7or1 if n
 yet appo9t$1 ! ,commission] ( ! ,f$]al 
,h\s+ ,adm9i/ration7 %all prep>e a      
report on ! und]writ+ /&>ds = mortgages 
insur$ "u title ,,ii ( ! ,national ,h\s+
 ,act 7#ab ,u4,s4,c4 #agjg et seq471 :i*
 %all be submitt$ by ! ,secret>y to--   
7,i7 ! ,committee on ,bank+1 ,h\s+1 &   
,urban ,affairs ( ! ,s5ate2 &  7,,ii7 ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives4  7ii7 ,cont5ts 

,! report requir$ "u clause 7i7 %all    
include-- 7,i7 = all mortgages insur$ "u
 title ,,ii ( ! ,national ,h\s+ ,act t 7
 made n less ?an #f mon?s & n m ?an #cf 
mon?s be=e ! date ( ! report1 an        
id5tification ( ! default risk          
*>act]i/ics z su* *>act]i/ics exi/$ at !
 "t ( orig9ation ( ! mortgage bas$ on   
risk factors t are commonly us$ 9       
evaluat+ mortgage default risk1         
includ+-- 7aa7 ! curr5t or reasonably   
expect$ income & f9ancial res\rces ( a  
borr[]2  7bb7 ! employm5t /atus ( a     
borr[]1 if income us$ "u item 7aa7 is   
employm5t income2  7cc7 ! mon?ly        
mortgage paym5t ( a borr[] "u ! t]ms ( a
 mortgage2  7dd7 ! mon?ly paym5t = any  
o!r loan held by ! borr[]2  7ee7 !      
mon?ly paym5t = any obligations relat$  
to ! mortgage2  7ff7 any o!r debt       
obligations ( a borr[]1 includ+ alimony 
& *ild support2  7gg7 ! mon?ly          
debt-to-income ratio or residual income 
( a borr[]2  7hh7 ! cr$it hi/ory ( a    
borr[]2 &  7ii7 any o!r risk factor1 z  

det]m9$ appropriate by ! ,secret>y2     
7,,ii7 9 tabul> =mat1 ! numb] (         
mortgages insur$ "u title ,,ii ( !      
,national ,h\s+ ,act t are 9 default & !
 rate ( default =-- 7aa7 ea* = !        
*>act]i/ics describ$ 9 subclause 7,i72  
7bb7 any multi-way comb9ation ( !       
*>act]i/ics 9 subclause 7,i7 z det]m9$  
appropriate by ! ,secret>y2 &  7cc7 any 
additional multi-way comb9ation ( !     
*>act]i/ics 9 subclause 7,i7 z may be   
reque/$ by ! ,*air or ,rank+ ,memb] ( ! 
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate or ! ,*air or ,rank+
 ,memb] ( ! ,committee on ,f9ancial     
,s]vices ( ! ,h\se ( ,repres5tatives1   
provid$ t ! ,deputy ,assi/ant ,secret>y 
& ,*ief ,risk ,(fic] 7or1 if n yet      
appo9t$1 ! ,commission] ( ! ,f$]al ,h\s+
 ,adm9i/ration7 %all be provid$ an      
additional #cj days f ! date ( receipt (
 su* reque/ to satisfy su* reque/2      
7,,iii7 an analysis ( mortgages insur$  
"u title ,,ii ( ! ,national ,h\s+ ,act t
 7 made n less ?an #f mon?s & n m ?an   

#cf mon?s be=e ! date ( ! report & are 9
 ! l[e/ qu>tile & decile ( loan         
p]=mance1 :i* %all include-- 7aa7 a     
description ( ! *>act]i/ics describ$ 9  
subclause 7,i7 = mortgages 9 ! l[e/     
qu>tile & decile ( loan p]=mance2 &     
7bb7 a comp>ison ( ! *>act]i/ics        
describ$ 9 subclause 7,i7 betwe5        
mortgages 9 ! l[e/ qu>tile & decile (   
loan p]=mance & all o!r mortgages insur$
 "u title ,,ii ( ! ,national ,h\s+ ,act2
  7,,iv7 recomm5dations by ! ,deputy    
,assi/ant ,secret>y & ,*ief ,risk ,(fic]
 = revisions to ! und]writ+ /&>ds ( !   
,secret>y = mortgages eligible to be    
insur$ "u title ,,ii ( ! ,national ,h\s+
 ,act bas$ on ! f9d+s ( ! report1 & a   
response to ^? recomm5dations f !       
,secret>y2 &  7,v7 a quantitative       
analysis ( ! effects ( any revisions to 
! und]writ+ /&>ds made by ! ,secret>y 9 
response to ! f9d+s ( a prior report1 & 
any recomm5dations ( ! ,deputy ,assi/ant
 ,secret>y & ,*ief ,risk ,(fic] 9       
response to ^? revisions4  4  7b7       

,con=m+ am5dm5t ,section #bjb7;a77#d7 ( 
! ,national ,h\s+ ,act 7#ab ,u4,s4,c4   
#agjh7;a77#d77 is am5d$ by ins]t+ aft] !
 fir/ s5t5ce ! foll[+3 ,! indep5d5t     
actu>y commission$ to c>ry out ! annual 
indep5d5t actu>ial /udy requir$ "u ?is  
p>agraph %all submit su* /udy to !      
,deputy ,assi/ant ,secret>y & ,*ief     
,risk ,(fic]44  #iac4 ,disclosure (     
ev5ts ,section #bjb7;a77#d7 ( !         
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjh7;a77#d77 is am5d$-- 7#a7 by /rik+ 
,! ,secret>y %all & ins]t+ ! foll[+3    
7#a7 ,9 g5]al ,! ,secret>y %all  2 &    
7#b7 by add+ at ! end ! foll[+3  7#b7   
,disclosure ( un=ese5 ev5ts  7,a7 ,9    
g5]al ,prior to ! submission ( any      
report ( ! ,secret>y "u p>agraph 7#a71 !
 ,secret>y %all require t ! indep5d5t   
actu>y commission$ to p]=m ! /udy       
requir$ "u p>agraph 7#a7 disclose to !  
,secret>y any ev5ts or circum/ances t   
occur aft] ! /udy is complet$ b be=e !  
report is submitt$ to ,congress & t w\ld
 h result$ 9 *anges to ! inputs or      

assumptions ! actu>y us$ to make =eca/s 
ab\t ! f9ancial position ( ! ,fund1 if  
su* *anges are suffici5tly significant t
 a reasonable p]son w\ld expect !m to   
sub/antially alt] ! actu>y's =eca/s ( ! 
economic value ( ! ,fund or ! actu>y's  
projections relat+ to ! capital res]ve  
ratio ( ! ,fund4  7,b7 ,in=m+ ,congress 
,! ,secret>y %all in=m ,congress ( any  
disclosures requir$ "u subp>agraph 7,a7 
ei!r by-- 7i7 ! submission ( an add5dum 
to ! report ( ! ,secret>y requir$ "u    
p>agraph 7#a72 or  7ii7 a lett] f !     
,secret>y address$ to ! ,committee on   
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives4  4
  #ajad4 ,,gao /udy on disclosures  7a7 
,9 g5]al ,n lat] ?an #ahj days aft] !   
date ( enactm5t ( ?is ,act1 !           
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all conduct a "o-"t /udy ( ! relevant  
in=mation disclos$ by ! ,secret>y (     
,h\s+ & ,urban ,developm5t 9 conjunction
 ) ! release ( ! annual actu>ial report 

( ! ,secret>y requir$ "u section        
#bjb7;a77#d7 ( ! ,national ,h\s+ ,act   
7#ab ,u4,s4,c4 #agjh7;a77#d774  7b7     
,requir$ consultation ,9 conduct+ ! /udy
 requir$ "u subsection 7a71 !           
,comptroll] ,g5]al %all consult1 z      
appropriate1 ) prom95t ,unit$ ,/ates    
academics ) national recognition &      
significant dep? ( exp]i5ce 9 ! h\s+    
m>ket & ! p]=mance ( high loan-to-value 
l5d+4  7c7 ,requir$ review ,9 c>ry+ out 
! /udy requir$ "u subsection 7a71 !     
,comptroll] ,g5]al %all review & make   
recomm5dations reg>d+-- 7#a7 if a       
reasonable am\nt ( relevant data &      
analyses are be+ disclos$ by ! ,secret>y
 ( ,h\s+ & ,urban ,developm5t to !      
public1 = rese>*1 9 conjunction ) !     
release ( ! annual actu>ial report ( !  
,secret>y requir$ "u section            
#bjb7;a77#d7 ( ! ,national ,h\s+ ,act   
7#ab ,u4,s4,c4 #agjh7;a77#d772 &  7#b7 !
 disclosure by ! ,secret>y ( additional 
relevant data & analyses to ! public1 = 
rese>* purposes4  7d7 ,foll[ up ,n lat] 

?an #ab mon?s aft] ! release ( ! /udy   
requir$ "u subsection 7a71 ! ,comptroll]
 ,g5]al %all conduct an additional      
report reg>d+ ! actions ( ! ,secret>y ( 
,h\s+ & ,urban ,developm5t 9 c>ry+ out  
any recomm5dations ( ! ,comptroll]      
,g5]al made pursuant to subsection      
7c77#b74  #aaae4 ,/abiliz+ ! ,,hecm     
program  7a7 ,9 g5]al ,section #bee ( ! 
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agaez-#bj7 is am5d$-- 7#a7 9 subsection
 7d77#h7-- 7,a7 by ins]t+ prop]ty       
ma9t5ance1 be=e insurance2 &  7,b7 by   
ins]t+ 1 includ+ matt]s t set =? t]ms & 
provisions = e/abli%+ escr[ acc\nts1    
p]=m+ f9ancial assessm5ts1 or limit+ !  
am\nt ( any paym5t made available "u !  
mortgage be=e ! semicolon2 &  7,b7 by   
ins]t+ ! e/abli%m5t ( escr[ acc\nts or  
set-asides1 ! limit+ ( am\nts ( any     
paym5t made available "u ! mortgage1    
aft] paym5t ( taxes2  7,c7 by /rik+ may 
& ins]t+ %all2 &  7,d7 by ins]t+ 1      
includ+ matt]s t set =? ! t]ms &        
provisions = p]=m+ f9ancial assessm5ts  

be=e ! semicolon2  7#b7 9 subsection    
7h7-- 7,a7 9 p>agraph 7#a71 by /rik+ 2 &
 & ins]t+ a semicolon2  7,b7 9 p>agraph 
7#b71 by /rik+ ! p]iod & ins]t+ 2 &2 &  
7,c7 by add+ at ! end ! foll[+ new      
p>agraph3  7#c7 by notice or mortgagee  
lett]1 e/abli% any additional or        
alt]native requirem5ts t ! ,secret>y1 9 
8 or h] discretion1 det]m9es necess>y to
 m effectively c>ry out ! purposes ( !  
program au?oriz$ "u ?is section1 & any  
su* notice or mortgagee lett] %all take 
effect ^u issuance & expire n lat] ?an  
#bd mon?s aft] ! date ( issuance ( !    
notice or mortgagee lett]4  4  7#b7 9   
subsection 7h77#c71 z add$ by ! ,rev]se 
,mortgage ,/abilization ,act ( #bjac    
7,public ,law #aac-bi71 by /rik+ any    
additional or alt]native requirem5ts &  
ins]t+ requirem5ts p]ta9+ to escr[      
acc\nts or set-asides1 f9ancial         
assessm5ts1 or limit+ ! am\nt ( any     
paym5t made available "u ! mortgage1 z  
au?oriz$ "u subsection 7d77#h712 &  7#c7
 by add+ at ! end ! foll[+3  7s7 ,escr[ 

acc\nts or set-asides ,9 c>ry+ out !    
program au?oriz$ "u ?is section1 !      
,secret>y %all require ! e/abli%m5t ( an
 escr[ acc\nt or set-aside 9 any in/ance
 :]e ! ,secret>y det]m9es1 aft] a       
f9ancial assessm5t ( ! mortgagor has be5
 complet$1 t su* an acc\nt or set-aside 
w\ld mitigate ! risk ( loss to !        
mortgagee1 ! mortgagor1 ! program1 or ! 
,mutual ,mortgage ,insurance ,fund4  4  
7b7 ,limitation on au?ority ,! au?ority 
( ! ,secret>y ( ,h\s+ & ,urban          
,developm5t to issue any notice or      
mortgagee lett] pursuant to section     
#bee7;h77#c7 ( ! ,national ,h\s+ ,act1 z
 add$ by ! ,rev]se ,mortgage            
,/abilization ,act ( #bjac 7,public ,law
 #aac-bi7 %all expire n lat] ?an #bd    
mon?s aft] ! date ( enactm5t ( ?is ,act4
  7bc7 ,rulemak+  7#a7 ,9 g5]al ,9 c>ry+
 out ! au?ority provid$ to ! ,secret>y (
 ,h\s+ & ,urban ,developm5t "u section  
#bee7;h77#c7 ( ! ,national ,h\s+ ,act1 z
 add$ by subsection 7a7z add$ by !      
,rev]se ,mortgage ,/abilization ,act (  

#bjac 7,public ,law #aac-bi71 !         
,secret>y %all-- 7,a7 n lat] ?an #ij    
days aft] ! issuance ( ! notice or      
mortgagee lett] pursuant to su* section1
 issue a notice ( propos$ rulemak+      
address+ ! same additional or alt]native
 requirem5ts t are ! subject ( ! notice 
or mortgagee lett]2 &  7,b7 n lat] ?an  
#bd mon?s aft] ! issuance ( ! notice (  
propos$ rulemak+ requir$ "u subp>agraph 
7,a7-- 7i7 issue a f9al rule address+ ! 
same additional or alt]native           
requirem5ts t are ! subject ( ! notice  
or mortgagee lett]2 or  7ii7 )draw !    
notice or mortgagee lett]4  7#b7        
,failure to comply ,if ! ,secret>y (    
,h\s+ & ,urban ,developm5t fails to     
issue a f9al rule by ! end ( ! p]iod    
describ$ "u p>agraph 7#a77;,b7-- 7,a7 ! 
provisions ( ! notice or mortgagee lett]
 at issue %all become null & void2  7,b7
 ! ,secret>y-- 7i7 %all n h au?ority to 
reissue su* notice or mortgagee lett]2 &
  7ii7 may only address ! requirem5ts t 
are ! subject ( ! notice or mortgagee   

lett] at issue ?r\gh ! promulgation ( a 
regulation pursuant to ! rulemak+       
requirem5ts ( title #e1 ,unit$ ,/ates   
,code2 &  7,c7 ! ,secret>y & ! ,director
 ( ! ,(fice ( ,managem5t & ,budget %all 
appe> be=e ! ,committee on ,bank+1      
,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives to provide      
te/imony expla9+ ! failure to comply ) !
 requirem5ts ( ?is subsection4  7d7     
,additional rulemak+ relat+ to fix$-rate
 full draw products ,n lat] ?an #a ye>  
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y ( ,h\s+ & ,urban ,developm5t  
%all issue a notice ( propos$ rulemak+  
t-- 7#a7 elim9ates ! use1 issuance1 or  
e/abli%m5t ( any /&>d fix$-rate full    
draw product (f]$ "u ! home equity      
conv]sion mortgage program au?oriz$ by  
section #bee ( ! ,national ,h\s+ ,act   
7#ab ,u4,s4,c4 #agaez-#bj72 &  7#b7     
requires any o!r fix$-rate full draw    
product (f]$ "u ! home equity conv]sion 
mortgage program au?oriz$ by section    

#bee ( ! ,national ,h\s+ ,act n subject 
to elim9ation "u p>agraph 7#a7 to be    
bas$ on a f9ancial assessm5t ( !        
mortgagor4  7e7 ,report  7#a7 ,9 g5]al  
,! ,secret>y ( ,h\s+ & ,urban           
,developm5t1 on a qu>t]ly basis1 %all   
report to ! ,committee on ,bank+1 ,h\s+1
 & ,urban ,affairs ( ! ,s5ate & !       
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives on ! /atus &    
f9ancial condition ( ea* di/9ct product 
(f]$ "u ! home equity conv]sion mortgage
 program au?oriz$ by section #bee ( !   
,national ,h\s+ ,act1 includ+ ! ,,hecm  
,/&>d ,adju/able1 ,,hecm ,sav] ,fix$1 & 
,,hecm ,sav] ,adju/able products4  7#b7 
,cont5ts ( report ,! report requir$ "u  
p>agraph 7#a7 %all set =?1 = ea* product
 !-- 7,a7 default rates "u ! product2   
7,b7 rate ( =eclosure on loans insur$   
pursuant to ea* product2 &  7,c7 sev]ity
 & ext5t ( losses incurr$ on loans      
insur$ pursuant to ea* product4  7#c7   
,fur!r /udy ,^u review ( ! in=mation    
collect$ pursuant to ?is subsection1 if 

! ,secret>y ( ,h\s+ & ,urban ,developm5t
 det]m9es t any individual product has a
 default rate measurably high] ?an !    
default rates occurr+ 9 any o!r product 
or is exp]i5c+ losses measurably high]  
?an losses incurr$ 9 any o!r product1 ! 
,secret>y %all fur!r /udy ! product &   
include 9 ! next qu>t]ly report due "u  
p>agraph 7#a7-- 7,a7 in=mation id5tify+ 
& enum]at+ ! causes ( su* high] default 
rates & sev]ity ( losses2 &  7,b7 a     
detail$ description ( ! actions to be   
tak5 by ! ,secret>y to correct su*      
ineffici5cies4  #af4 ,pr9cipal limit    
factor = ,,hecm program ,section        
#bee7m77#b7 ( ! ,national ,h\s+ ,act    
7#ab ,u4,s4,c4 #agaez-#bj7m77#b77 is    
am5d$-- 7#a7 by /rik+ p>agraph 7#a7 %all
 & ins]t+ p>agraph 7#a7--  7,a7 %all  2 
7#b7 9 subp>agraph 7,a71 z s designat$1 
by /rik+ ! p]iod at ! end & ins]t+ 2 &2 
&  7#c7 by add+ at ! end ! foll[+3  7,b7
 9 ! case ( a fix$ rate mortgage1 may n 
involve a pr9cipal limit 7z def9$ 9     
section #bjf4c ( title #bd1 ,code (     

,f$]al ,regulations7 ) a pr9cipal limit 
factor 9 excess ( 4#fa4  4  #abag4      
,publication ( f9al rules relat+ to     
limit+ sell] contributions t[>ds pur*ase
 relat$ exp5ses  7a7 ,requir$ completion
 ( rule ,n lat] ?an #ij days aft] ! date
 ( enactm5t ( ?is ,act1 ! ,secret>y (   
,h\s+ & ,urban ,developm5t %all-- 7#a7  
issue & publi% its f9al rule to implem5t
 ! propos$ rule entitl$ ,f$]al ,h\s+    
,adm9i/ration 7,,fha7 ,risk ,managem5t  
,initiatives3 ,revis$ ,sell]            
,concessions 7#gg ,f$4 ,reg4 #ajfie     
7,febru>y #bc1 #bjab772 &  7#b7 ensure t
 ! f9al rule requir$ "u p>agraph 7#a7-- 
7,a7 limits ! am\nt a sell] or int]e/$  
?ird p>ty1 or bo?1 may contribute t[>ds 
! pur*ase-relat$ exp5ses ( a borr[] )\t 
r$uc+ ! maximum insur$ am\nt ( a        
mortgage insur$ "u title ,,ii ( !       
,national ,h\s+ ,act 7#ab ,u4,s4,c4     
#agjg et seq472 &  7,b7 def9es !        
acceptable types ( exp5ses t a sell] or 
int]e/$ ?ird p>ty1 or bo?1 may          
contribute "u subp>agraph 7,a71 su* z   

clos+ co/s1 prepaid exp5ses1 disc\nt    
po9ts1 up-front mortgage insurance      
premiums1 & int]e/ rate buyd[ns4  7b7   
,failure ,to comply ,if ! ,secret>y (   
,h\s+ & ,urban ,developm5t fails to     
issue a f9al rule by ! end ( ! p]iod    
describ$ "u subsection 7a71 ! ,secret>y 
& ! ,director ( ,(fice ( ,managem5t &   
,budget %all appe> be=e ! ,committee on 
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate & ! ,committee on ,f9ancial      
,s]vices ( ! ,h\se ( ,repres5tatives to 
provide te/imony expla9+ ! failure to   
comply ) ! requirem5ts ( ?is section4   
#ah4 ,,gao ,/udy on ,,fha loan limits   
7a7 ,9 g5]al ,! ,comptroll] ,g5]al ( !  
,unit$ ,/ates %all conduct a "o-"t /udy 
to det]m9e ! appropriate doll> am\nt    
limitation on ! maximum orig9al pr9cipal
 obligation ( a mortgage t may be insur$
 "u title ,,ii ( ! ,national ,h\s+ ,act 
7#ab ,u4,s4,c4 #agja et seq474  7b7     
,requir$ review ,9 c>ry+ out ! /udy     
requir$ "u subsection 7a71 ! ,comptroll]
 ,g5]al %all review & make              

recomm5dations reg>d+ ! appropriate     
me?odology = fur!r adju/m5ts to ! doll> 
am\nt limitation1 includ+ adju/m5ts =   
inflation1 v>y+ home prices across      
diff]5t regions ( ! ,unit$ ,/ates1 & !  
effects ( economic d[nturns4  7c7       
,report ,n lat] ?an #a ye> aft] ! date (
 enactm5t ( ?is ,act1 ! ,comptroll]     
,g5]al %all submit a report to !        
,committee on ,bank+1 ,h\s+1 & ,urban   
,affairs ( ! ,s5ate & ! ,committee on   
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives on ! results ( ! /udy   
conduct$ pursuant to subsection 7a71    
includ+ its reasons ju/ify+ its         
det]m9ation4  ,decemb] #ai1             
#bjac,report$ ) am5dm5ts