IIB 

112TH CONGRESS 

2D SESSION H. R. 4264 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 12, 2012 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

To help ensure the fiscal solvency of the FHA mortgage 

insurance programs of the Secretary of Housing and 

Urban Development, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘FHA Emergency Fiscal Solvency Act of 2012’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. FHA annual mortgage insurance premiums. 

Sec. 3. Indemnification by FHA mortgagees. 

Sec. 4. Early period delinquencies. 

Sec. 5. Semiannual actuarial studies of MMIF during periods of capital depletion. 

Sec. 6. Delegation of FHA insuring authority. 

Sec. 7. Authority to terminate FHA mortgagee origination and underwriting 

approval. 

Sec. 8. Authorization to participate in the origination of FHA-insured loans. 

Sec. 9. Reporting of mortgagee actions taken against other mortgagees. 

Sec. 10. Default and origination information by loan servicer and originating 

direct endorsement lender. 

Sec. 11. Deputy Assistant Secretary of FHA for Risk Management and Regulatory Affairs. 

Sec. 12. Establishment of Chief Risk Officer for GNMA. 

Sec. 13. Report on mortgage servicers. 

Sec. 14. FHA emergency capital plan. 

Sec. 15. FHA safety and soundness review. 

Sec. 16. FHA disclosure standards. 

Sec. 17. Report on streamlining FHA programs. 

Sec. 18. Budget compliance. 

6 SEC. 2. FHA ANNUAL MORTGAGE INSURANCE PREMIUMS. 

7 (a) IN GENERAL.—Subparagraph (B) of section 

8 203(c)(2) of the National Housing Act (12 U.S.C. 

9 1709(c)(2)(B)) is amended— 

10 (1) in the matter preceding clause (i)— 

11 (A) by striking ‘‘may’’ and inserting 

12 ‘‘shall’’; 

13 (B) by striking ‘‘not exceeding 1.5 per14 cent’’ and inserting ‘‘not less than 0.55 per15 cent’’; and 


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1 (C) by inserting ‘‘and not exceeding 2.0 

2 percent of such remaining insured principal bal3 ance’’ before ‘‘for the following periods:’’; and 

4 (2) in clause (ii), by striking ‘‘1.55 percent’’ 

5 and inserting ‘‘2.05 percent’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 subsection (a) take effect upon the expiration of the 6- 

8 month period beginning on the date of the enactment of 

9 this Act. 

10 SEC. 3. INDEMNIFICATION BY FHA MORTGAGEES. 

11 Section 202 of the National Housing Act (12 U.S.C. 

12 1708) is amended by adding at the end the following new 

13 subsection: 

14 ‘‘(i) INDEMNIFICATION BY MORTGAGEES.— 

15 ‘‘(1) IN GENERAL.—If the Secretary determines 

16 that the mortgagee knew, or should have known, of 

17 a serious or material violation of the requirements 

18 established by the Secretary with respect to a mort19 gage executed by a mortgagee approved by the Sec20 retary under the direct endorsement program or in21 sured by a mortgagee pursuant to the delegation of 

22 authority under section 256 such that the mortgage 

23 loan should not have been approved and endorsed 

24 for insurance, and the Secretary pays an insurance 

25 claim with respect to the mortgage within a reasonVerDate Mar 15 2010 03:19 Sep 13, 2012 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4264.RFS H4264

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1 able period specified by the Secretary, the Secretary 

2 may require the mortgagee approved by the Sec3 retary under the direct endorsement program or the 

4 mortgagee delegated authority under section 256 to 

5 indemnify the Secretary for the loss, irrespective of 

6 whether the violation caused the mortgage default. 

7 ‘‘(2) FRAUD OR MISREPRESENTATION.—If 

8 fraud or misrepresentation was involved in connec9 tion with the origination or underwriting and the 

10 Secretary determines that the mortgagee knew or 

11 should have known of the fraud or misrepresenta12 tion, the Secretary shall require the mortgagee ap13 proved by the Secretary under the direct endorse14 ment program or the mortgagee delegated authority 

15 under section 256 to indemnify the Secretary for the 

16 loss regardless of when an insurance claim is paid. 

17 ‘‘(3) APPEALS PROCESS.—The Secretary shall, 

18 by regulation, establish an appeals process for mort19 gagees to appeal indemnification determinations 

20 made pursuant to paragraph (1) or (2). 

21 ‘‘(4) REQUIREMENTS AND PROCEDURES.—The 

22 Secretary shall issue regulations establishing appro23 priate requirements and procedures governing the 

24 indemnification of the Secretary by the mortgagee, 

25 including public reporting on— 


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1 ‘‘(A) the number of loans that— 

2 ‘‘(i) were not originated or under3 written in accordance with the require4 ments established by the Secretary; and 

5 ‘‘(ii) involved fraud or misrepresenta6 tion in connection with the origination or 

7 underwriting; and 

8 ‘‘(B) the financial impact on the Mutual 

9 Mortgage Insurance Fund when indemnification 

10 is required.’’. 

11 SEC. 4. EARLY PERIOD DELINQUENCIES. 

12 Subsection (a) of section 202 of the National Hous13 ing Act (12 U.S.C. 1708(a)) is amended by adding at the 

14 end the following new paragraphs: 

15 ‘‘(8) PROGRAMMATIC REVIEW OF EARLY PE16 RIOD DELINQUENCIES.—The Secretary shall estab17 lish and maintain a program— 

18 ‘‘(A) to review the cause of each early pe19 riod delinquency on a mortgage that is an obli20 gation of the Mutual Mortgage Insurance Fund; 

21 ‘‘(B) to require indemnification of the Sec22 retary for a loss associated with any such early 

23 period delinquency that is the result of a mate24 rial violation, as determined by the Secretary, 

25 of any provision, regulation, or other guideline 


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1 established or promulgated pursuant to this 

2 title; and 

3 ‘‘(C) to publicly report— 

4 ‘‘(i) a summary of the results of all 

5 early period delinquencies reviewed under 

6 subparagraph (A); 

7 ‘‘(ii) any indemnifications required 

8 under subparagraph (B); and 

9 ‘‘(iii) the financial impact on the Mu10 tual Mortgage Insurance Fund of any such 

11 indemnifications. 

12 ‘‘(9) DEFINITION OF EARLY PERIOD DELIN13 QUENCY.—For purposes of this section, the term 

14 ‘early period delinquency’ means, with respect to a 

15 mortgage, that the mortgage becomes 90 or more 

16 days delinquent within 24 months of the origination 

17 of such mortgage.’’. 

18 SEC. 5. SEMIANNUAL ACTUARIAL STUDIES OF MMIF DUR19 ING PERIODS OF CAPITAL DEPLETION. 

20 (a) IN GENERAL.—Paragraph (4) of section 202(a) 

21 of the National Housing Act (12 U.S.C. 1708(a)(4)) is 

22 amended— 

23 (1) in the first sentence, by inserting ‘‘except as 

24 provided in subparagraph (B),’’ after ‘‘to be con25 ducted annually,’’; 


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1 (2) in the second sentence, by inserting ‘‘, ex2 cept as provided in subparagraph (B),’’ after ‘‘annu3 ally’’; 

4 (3) by striking the paragraph designation and 

5 heading and all that follows through ‘‘The Secretary 

6 shall provide’’ and inserting the following: 

7 ‘‘(4) INDEPENDENT ACTUARIAL STUDY.— 

8 ‘‘(A) ANNUAL STUDY.—The Secretary 

9 shall provide’’; and 

10 (4) by adding at the end the following new sub11 paragraph: 

12 ‘‘(B) SEMIANNUAL STUDIES DURING PERI13 ODS OF CAPITAL DEPLETION.—During any pe14 riod that the Fund fails to maintain sufficient 

15 capital to comply with the capital ratio require16 ment under section 205(f)(2)— 

17 ‘‘(i) the independent study required by 

18 subparagraph (A) shall be conducted semi19 annually and shall analyze the financial po20 sition of the Fund as of September 30 and 

21 March 31 of each fiscal year during such 

22 period; and 

23 ‘‘(ii) the Secretary shall submit a re24 port meeting the requirements of subparaVerDate Mar 15 2010 03:19 Sep 13, 2012 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4264.RFS H4264

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1 graph (A) for each such semiannual 

2 study.’’. 

3 (b) ANALYSIS OF QUARTERLY ACTUARIAL STUD4 IES.—The Secretary of Housing and Urban Development 

5 shall conduct an analysis of the cost and feasibility of pro6 viding for an independent actuarial study of the Mutual 

7 Mortgage Insurance Fund on a calendar quarterly basis, 

8 which shall compare the cost and feasibility of conducting 

9 such a study on a quarterly basis as compared to a semi10 annual basis and shall determine whether such an actu11 arial study can be conducted on a quarterly basis without 

12 substantial additional costs to the taxpayers. Not later 

13 than the expiration of the 90-day period beginning on the 

14 date of the enactment of this Act, the Secretary shall sub15 mit a report to the Congress setting forth the findings and 

16 conclusion of the analysis conducted pursuant to this sub17 section. 

18 SEC. 6. DELEGATION OF FHA INSURING AUTHORITY. 

19 Section 256 of the National Housing Act (12 U.S.C. 

20 1715z–21) is amended— 

21 (1) by striking subsection (c); 

22 (2) in subsection (e), by striking ‘‘, including’’ 

23 and all that follows through ‘‘by the mortgagee’’; 

24 and 


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1 (3) by redesignating subsections (d) and (e) as 

2 subsections (c) and (d), respectively. 

3 SEC. 7. AUTHORITY TO TERMINATE FHA MORTGAGEE 

4 ORIGINATION AND UNDERWRITING AP5 PROVAL. 

6 Section 533 of the National Housing Act (12 U.S.C. 

7 1735f–11) is amended— 

8 (1) in the first sentence of subsection (b), by in9 serting ‘‘or areas or on a nationwide basis’’ after 

10 ‘‘area’’ each place such term appears; and 

11 (2) in subsection (c), by striking ‘‘(c)’’ and all 

12 that follows through ‘‘The Secretary’’ in the first 

13 sentence of paragraph (2) and inserting the fol14 lowing: 

15 ‘‘(c) TERMINATION OF MORTGAGEE ORIGINATION

16 AND UNDERWRITING APPROVAL.— 

17 ‘‘(1) TERMINATION AUTHORITY.—If the Sec18 retary determines, under the comparison provided in 

19 subsection (b), that a mortgagee has a rate of early 

20 defaults and claims that is excessive, the Secretary 

21 may terminate the approval of the mortgagee to 

22 originate or underwrite single family mortgages for 

23 any area, or areas, or on a nationwide basis, not24 withstanding section 202(c) of this Act. 

25 ‘‘(2) PROCEDURE.—The Secretary’’. 


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1 SEC. 8. AUTHORIZATION TO PARTICIPATE IN THE ORIGINA2 TION OF FHA-INSURED LOANS. 

3 (a) SINGLE FAMILY MORTGAGES.—Section 203(b) of 

4 the National Housing Act (12 U.S.C. 1709(b)) is amended 

5 by striking paragraph (1) and inserting the following new 

6 paragraph: 

7 ‘‘(1) Have been made to a mortgagee approved 

8 by the Secretary or to a person or entity authorized 

9 by the Secretary under section 202(d)(1) to partici10 pate in the origination of the mortgage, and be held 

11 by a mortgagee approved by the Secretary as re12 sponsible and able to service the mortgage prop13 erly.’’. 

14 (b) HOME EQUITY CONVERSION MORTGAGES.—Sec15 tion 255(d) of the National Housing Act (12 U.S.C. 

16 1715z–20(d)) is amended by striking paragraph (1) and 

17 inserting the following new paragraph: 

18 ‘‘(1) have been originated by a mortgagee ap19 proved by, or by a person or entity authorized under 

20 section 202(d)(1) to participate in the origination 

21 by, the Secretary;’’. 

22 SEC. 9. REPORTING OF MORTGAGEE ACTIONS TAKEN 

23 AGAINST OTHER MORTGAGEES. 

24 Section 202 of the National Housing Act (12 U.S.C. 

25 1708), as amended by the preceding provisions of this Act, 


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1 is further amended by adding at the end the following new 

2 subsection: 

3 ‘‘(j) NOTIFICATION OF MORTGAGEE ACTIONS.—The 

4 Secretary shall require each mortgagee, as a condition for 

5 approval by the Secretary to originate or underwrite mort6 gages on single family or multifamily housing that are in7 sured by the Secretary, if such mortgagee engages in the 

8 purchase of mortgages insured by the Secretary and origi9 nated by other mortgagees or in the purchase of the serv10 icing rights to such mortgages, and such mortgagee at any 

11 time takes action to terminate or discontinue such pur12 chases from another mortgagee based on any determina13 tion or evidence of fraud or material misrepresentation in 

14 connection with the origination of such mortgages, to no15 tify the Secretary of the action taken and the reasons for 

16 such action not later than 15 days after taking such ac17 tion.’’. 

18 SEC. 10. DEFAULT AND ORIGINATION INFORMATION BY 

19 LOAN SERVICER AND ORIGINATING DIRECT 

20 ENDORSEMENT LENDER. 

21 (a) COLLECTION OF INFORMATION.—Paragraph (2) 

22 of section 540(b) of the National Housing Act (12 U.S.C. 

23 1712 U.S.C. 1735f–18(b)(2)) is amended by adding at the 

24 end the following new subparagraph: 


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1 ‘‘(C) For each entity that services insured 

2 mortgages, data on the number of claims paid 

3 to each servicing mortgagee during each cal4 endar quarter occurring during the applicable 

5 collection period.’’. 

6 (b) APPLICABILITY.—Information described in sub7 paragraph (C) of section 540(b)(2) of the National Hous8 ing Act, as added by subsection (a) of this section, shall 

9 first be made available under such section 540 for the ap10 plicable collection period (as such term is defined in such 

11 section) relating to the first calendar quarter ending after 

12 the expiration of the 12-month period that begins on the 

13 date of the enactment of this Act. 

14 SEC. 11. DEPUTY ASSISTANT SECRETARY OF FHA FOR RISK 

15 MANAGEMENT AND REGULATORY AFFAIRS. 

16 (a) ESTABLISHMENT OF POSITION.—Subsection (b) 

17 of section 4 of the Department of Housing and Urban De18 velopment Act (42 U.S.C. 3533(b)) is amended— 

19 (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 

20 (2) by adding at the end the following new 

21 paragraph: 

22 ‘‘(2) There shall be in the Department, within the 

23 Federal Housing Administration, a Deputy Assistant Sec24 retary for Risk Management and Regulatory Affairs, who 

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1 sible to the Federal Housing Commissioner for all matters 

2 relating to managing and mitigating risk to the mortgage 

3 insurance funds of the Department and ensuring the per4 formance of mortgages insured by the Department.’’. 

5 (b) TERMINATION.—Upon the appointment of the 

6 initial Deputy Assistant Secretary for Risk Management 

7 and Regulatory Affairs pursuant to section 4(b)(2) of the 

8 Department of Housing and Urban Development Act, as 

9 amended by subsection (a) of this section, the position of 

10 chief risk officer within the Federal Housing Administra11 tion, filled by appointment by the Federal Housing Com12 missioner, is abolished. 

13 SEC. 12. ESTABLISHMENT OF CHIEF RISK OFFICER FOR 

14 GNMA. 

15 Section 4 of the Department of Housing and Urban 

16 Development Act (42 U.S.C. 3533) is amended by adding 

17 after subsection (g), as added by section 1442 of the 

18 Dodd-Frank Wall Street Reform and Consumer Protec19 tion Act (Public Law 111–203; 124 Stat. 2163), the fol20 lowing new subsection: 

21 ‘‘(h) There shall be in the Department a Chief Risk 

22 Officer for the Government National Mortgage Associa23 tion, who shall— 

24 ‘‘(1) be designated by the Secretary; 


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1 ‘‘(2) be responsible to the President of the As2 sociation for all matters related to evaluating, man3 aging, and mitigating risk to the programs of the 

4 Association; 

5 ‘‘(3) be in the competitive service or the senior 

6 executive service; 

7 ‘‘(4) be a career appointee; 

8 ‘‘(5) be designated from among individuals who 

9 possess demonstrated ability in general management 

10 of, and knowledge of and extensive practical experi11 ence in risk evaluation practices in large govern12 mental or business entities; and 

13 ‘‘(6) shall not be required to obtain the prior 

14 approval, comment, or review of any officer or agen15 cy of the United States before submitting to the 

16 Congress, or any committee or subcommittee there17 of, any reports, recommendations, testimony, or 

18 comments if such submission include a statement in19 dicating that the views expressed therein are those 

20 of the Chief Risk Officer of the Association and do 

21 not necessarily represent the views of the Sec22 retary.’’. 

23 SEC. 13. REPORT ON MORTGAGE SERVICERS. 

24 (a) EXAMINATION.—The Secretary of Housing and 

25 Urban Development shall conduct an examination into 


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1 mortgage servicer compliance with the loan servicing, loss 

2 mitigation, and insurance claim submission guidelines of 

3 the FHA mortgage insurance programs under the Na4 tional Housing Act (12 U.S.C. 1701 et seq.), and an esti5 mate of the annual costs to the Mutual Mortgage Insur6 ance Fund, since 2008, resulting from any failures by 

7 mortgage servicers to comply with such guidelines. 

8 (b) REPORT.—Not later than the expiration of the 

9 120-day period that begins upon the date of the enactment 

10 of this Act, the Secretary shall submit a report to the Con11 gress on the results of the examination conducted pursu12 ant to subsection (a), including recommendations for any 

13 administrative and legislative actions to improve mortgage 

14 servicer compliance with the guidelines referred to in sub15 section (a). 

16 SEC. 14. FHA EMERGENCY CAPITAL PLAN. 

17 (a) ESTABLISHMENT.—Not later than the expiration 

18 of the 30-day period beginning on the date of the enact19 ment of this Act, the Secretary of Housing and Urban 

20 Development shall develop, submit to the Congress, and 

21 commence implementation of an emergency capital plan 

22 for the restoration of the fiscal solvency of the Mutual 

23 Mortgage Insurance Fund (in this section referred to as 

24 the ‘‘Fund’’). 


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1 (b) CONTENTS.—The emergency capital plan devel2 oped pursuant to this section shall— 

3 (1) provide a detailed explanation of the proc4 esses and controls by which amounts of capital that 

5 are assets of the Fund are monitored and tracked; 

6 (2) establish a plan to ensure the financial safe7 ty and soundness of the Fund that avoids the need 

8 for borrowing amounts from the Treasury of the 

9 United States to meet obligations of the Fund; and 

10 (3) describe the procedure by which, if nec11 essary, any amounts from the Treasury needed to 

12 meet obligations of the Fund will be obtained from 

13 the Treasury. 

14 (c) MONTHLY REPORTS.— 

15 (1) REPORTS.—Subject to paragraph (3), upon 

16 the conclusion of each calendar month ending after 

17 the 14-day period that begins on the date of the en18 actment of this Act, the Secretary of Housing and 

19 Urban Development shall submit to the Congress a 

20 report assessing the financial status of the Fund at 

21 the conclusion of such month and setting forth the 

22 information described in paragraph (2). 

23 (2) CONTENTS.—Each report required under 

24 paragraph (1) for a month shall contain the folVerDate Mar 15 2010 03:19 Sep 13, 2012 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H4264.RFS H4264

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1 lowing information regarding the Fund as of the 

2 conclusion of such month: 

3 (A) The number of mortgages that are ob4 ligations of the Fund that are 60 or more days 

5 delinquent, the expected losses to the Fund as6 sociated with such delinquent mortgages, and 

7 the methodology used to make such calculation. 

8 (B) The number of mortgages that are ob9 ligations of the Fund that have a loan-to-value 

10 ratio at the time of origination that is less than 

11 80 percent and the percentage of all mortgages 

12 that are obligations of the Fund having such a 

13 ratio. 

14 (C) The number of mortgages that are ob15 ligations of the Fund that had an original prin16 cipal obligation exceeding 125 percent of the 

17 median house price, for a home of the size of 

18 the residence subject to the mortgage, for the 

19 area in which such residence is located, and the 

20 percentage of all mortgages that are obligations 

21 of the Fund having such an original principal 

22 obligation. 

23 (D) The number of mortgages that are ob24 ligations of the Fund for which the mortgagor’s 

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1 gage is greater than the median income for the 

2 area in which the residence subject to the mort3 gage is located, and the percentage of all mort4 gages that are obligations of the Fund for 

5 which the mortgagor has such an income. 

6 (E) The balances for the financing and 

7 capital reserve accounts of the Fund. 

8 (F) Any actions taken during such month 

9 to help ensure the financial soundness of the 

10 Fund and compliance with section 205(f) of the 

11 National Housing Act (12 U.S.C. 1711(f); re12 lating to a capital ratio requirement). 

13 (3) TERMINATION OF REPORTING REQUIRE14 MENT.—The requirement to submit reports under 

15 paragraph (1) shall terminate on the first date after 

16 the date of the enactment of this Act that the Fund 

17 attains a capital ratio (as such term is defined in 

18 section 205(f)(3) of the National Housing Act) of 

19 2.0 percent. 

20 SEC. 15. FHA SAFETY AND SOUNDNESS REVIEW. 

21 (a) REVIEW.—The Comptroller General of the United 

22 States shall provide for an independent third party to— 

23 (1) conduct a one-time review of the mortgage 

24 insurance programs and funds of the Secretary of 


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1 Housing and Urban Development that shall deter2 mine, as of the time of such review— 

3 (A) the financial safety and soundness of 

4 such programs and funds; and 

5 (B) the extent of loan loss reserves and 

6 capital adequacy of such programs and funds; 

7 and 

8 (2) to submit a report under subsection (b). 

9 Such review shall be conducted in accordance with gen10 erally accepted accounting principles applicable to the pri11 vate sector and Federal entities. 

12 (b) REPORT.—The report under this subsection shall 

13 describe the methodology and standards used to conduct 

14 the review under subsection (a)(1), set forth the results 

15 and findings of the review, including the extent of loan 

16 loss reserves and capital adequacy of the mortgage insur17 ance programs and funds of the Secretary of Housing and 

18 Urban Development, and include recommendations re19 garding restoring such reserves and capital to maintain 

20 such programs and funds in a safe and sound condition. 

21 (c) TIMING.—The review required under subsection 

22 (a) shall be completed, and the report required under sub23 section (b) shall be submitted, not later than the expira24 tion of the 60-day period beginning on the date of the en25 actment of this Act. 


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1 (d) RULE OF CONSTRUCTION.—Nothing in this sec2 tion may be construed to alter or affect, or exempt the 

3 Secretary of Housing and Urban Development from com4 plying with, any laws, regulations, or guidance relating to 

5 preparation or submission of budgets or audits or financial 

6 or management statements or reports. 

7 SEC. 16. FHA DISCLOSURE STANDARDS. 

8 Not later than the expiration of the 90-day period 

9 beginning on the date of the enactment of this Act, the 

10 Secretary of Housing and Urban Development shall review 

11 and revise all standards and requirements relating to dis12 closure of information regarding the mortgage insurance 

13 programs and funds, including actuarial studies conducted 

14 under section 202(a)(4) of the National Housing Act (12 

15 U.S.C. 1708(a)(4)), quarterly reports under section 

16 202(a)(5) of such Act, and annual audited financial state17 ments under section 538 of such Act (12 U.S.C. 1735f– 

18 16), to ensure that, after the date of the enactment of 

19 this Act, such disclosures— 

20 (1) provide meaningful financial and other in21 formation that is timely, comprehensive, and accu22 rate; 

23 (2) do not contain any material misstatements 

24 or misrepresentations; 

25 (3) make available all relevant information; and 


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1 (4) prohibit material omissions that make the 

2 contents of the disclosure misleading. 

3 SEC. 17. REPORT ON STREAMLINING FHA PROGRAMS. 

4 (a) EXAMINATION.—The Secretary of Housing and 

5 Urban Development shall conduct an examination of the 

6 mortgage insurance and any other programs of the Fed7 eral Housing Administration to identify— 

8 (1) the level of use and need for such programs; 

9 (2) any such programs that are unused or 

10 underused; and 

11 (3) methods for streamlining, consolidating, 

12 simplifying, increasing the efficiency of, and reduc13 ing the number of such programs. 

14 (b) REPORT.—Not later than the expiration of the 

15 12-month period that begins upon the date of the enact16 ment of this Act, the Secretary shall submit a report to 

17 the Congress on the results of the examination conducted 

18 pursuant to subsection (a), including recommendations for 

19 any administrative and legislative actions to streamline, 

20 consolidate, simplify, increase the efficiency of, and reduce 

21 the number of such programs. 

22 SEC. 18. BUDGET COMPLIANCE. 

23 The Secretary of Housing and Urban Development 

24 shall allocate $2,500,000 from the account for Adminis25 trative Contract Expenses each fiscal year through 


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1 September 30, 2017, which amounts shall be available 

2 only for the purposes of this Act and the amendments 

3 made by this Act, including such additional actuarial re4 views as may be required by section 5 of this Act and the 

5 amendments made by such section. 

Passed the House of Representatives September 11, 

2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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