September 10, 2012 CONGRESSIONAL RECORD — HOUSE H5737 

last summer. During the previous year, 

Congresswoman MOORE’s study language was also included as part of longterm NFIP reauthorization efforts that 

passed the House three additional 

times as part of other bills. 

Unfortunately, Congresswoman 

MOORE’s text, which is now H.R. 6186, 

was not included in the bipartisan 

Biggert-Waters Flood Insurance Reform Act that was signed into law on 

July 6. However, the Financial Services 

Committee remains committed to enacting this provision, and I want to 

commend Congresswoman MOORE for 

all her hard work on this measure, and 

I am a cosponsor. 

With that, I would urge my colleagues to support H.R. 6186, and I reserve the balance of my time. 

Ms. MOORE. Mr. Speaker, I yield myself such time as I may consume. 

Mr. Speaker, I want to start out by 

expressing my deepest appreciation to 

the manager of this bill, Representative BIGGERT, and also a cosponsor of 

this legislation, in addition to Representative BACHUS and Representative 

WATERS, a bipartisan initiative. 

b 1640 

As Mrs. BIGGERT has indicated, this 

study was originally included in the 

flood insurance bill that passed the 

House but was later dropped for reasons of expediency. It was not controversial in negotiations with the 

Senate. I believe that a communitybased flood insurance option may eventually provide a wonderful cost-saving 

option for communities within the 

framework of the overall National 

Flood Insurance Program. 

The potential for savings and community empowerment certainly merits 

a study. H.R. 6186 would require FEMA 

to study voluntary community-based 

flood insurance options and examine 

how such options could be incorporated 

into the National Flood Insurance Program. 

The idea is to study group flood insurance policies for a National Flood 

Insurance Program-participating community or a FEMA-designated flood 

plain so that everyone in the community would pay the same rate. Now, 

this approach has merit because it 

means not only potentially lower rates 

due to increased participation, but 

there is also the option of providing 

lower-income households with access 

to vouchers to purchase flood insurance as part of the group. 

The group rating, of course, would 

spread the risk to an affordable extent 

for each individual homeowner. An 

analogy for this concept is group or 

employee health insurance coverage 

versus individual coverage. We all understand that group coverage is less expensive than individual coverage due to 

the economies of scale of streamlined 

underwriting. The difference is, in this 

case, a community, not an individual, 

would be the policy holder. 

Now, this brings me to a very important potential benefit of this approach: 

increased incentives for communities 

to take affirmative actions to mitigate 

the threat from floods in the community. Now, while an individual flood insurance holder has absolutely no incentive or means to, say, build stronger 

levees or dikes, a community policyholder would have the means and incentives to take those kinds of precautions. In theory, under this model, 

the homeowner would pay insurance 

like a utility bill on a monthly or quarterly basis. 

Finally, I want to point out that 

there is precedent for this idea. Under 

current regulations, FEMA could issue 

group flood insurance policies. The program was limited, but it was successful. This bill only adds that FEMA examine the cost and benefits of using 

this approach on an ongoing basis as an 

option for communities. 

I urge all my House colleagues to 

support this legislation, and I yield 

back the balance of my time. 

Mrs. BIGGERT. I yield back the balance of my time. 

The SPEAKER pro tempore. The 

question is on the motion offered by 

the gentlewoman from Illinois (Mrs. 

BIGGERT) that the House suspend the 

rules and pass the bill, H.R. 6186. 

The question was taken. 

The SPEAKER pro tempore. In the 

opinion of the Chair, two-thirds being 

in the affirmative, the ayes have it. 

Mrs. BIGGERT. Mr. Speaker, on that 

I demand the yeas and nays. 

The yeas and nays were ordered. 

The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed. 

f 

FHA EMERGENCY FISCAL 

SOLVENCY ACT OF 2012 

Mrs. BIGGERT. Mr. Speaker, I move 

to suspend the rules and pass the bill 

(H.R. 4264) to help ensure the fiscal solvency of the FHA mortgage insurance 

programs of the Secretary of Housing 

and Urban Development, and for other 

purposes, as amended. 

The Clerk read the title of the bill. 

The text of the bill is as follows: 

H.R. 4264 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

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

the ‘‘FHA Emergency Fiscal Solvency Act of 

2012’’. 

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

SEC. 2. FHA ANNUAL MORTGAGE INSURANCE 

PREMIUMS. 

(a) IN GENERAL.—Subparagraph (B) of section 203(c)(2) of the National Housing Act (12 

U.S.C. 1709(c)(2)(B)) is amended— 

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

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

‘‘shall’’; 

(B) by striking ‘‘not exceeding 1.5 percent’’ 

and inserting ‘‘not less than 0.55 percent’’; 

and 

(C) by inserting ‘‘and not exceeding 2.0 percent of such remaining insured principal balance’’ before ‘‘for the following periods:’’; 

and 

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

and inserting ‘‘2.05 percent’’. 

(b) EFFECTIVE DATE.—The amendments 

made by subsection (a) take effect upon the 

expiration of the 6-month period beginning 

on the date of the enactment of this Act. 

SEC. 3. INDEMNIFICATION BY FHA MORTGAGEES. 

Section 202 of the National Housing Act (12 

U.S.C. 1708) is amended by adding at the end 

the following new subsection: 

‘‘(i) INDEMNIFICATION BY MORTGAGEES.— 

‘‘(1) IN GENERAL.—If the Secretary determines that the mortgagee knew, or should 

have known, of a serious or material violation of the requirements established by the 

Secretary with respect to a mortgage executed by a mortgagee approved by the Secretary under the direct endorsement program or insured by a mortgagee pursuant to 

the delegation of authority under section 256 

such that the mortgage loan should not have 

been approved and endorsed for insurance, 

and the Secretary pays an insurance claim 

with respect to the mortgage within a reasonable period specified by the Secretary, 

the Secretary may require the mortgagee approved by the Secretary under the direct endorsement program or the mortgagee delegated authority under section 256 to indemnify the Secretary for the loss, irrespective 

of whether the violation caused the mortgage default. 

‘‘(2) FRAUD OR MISREPRESENTATION.—If 

fraud or misrepresentation was involved in 

connection with the origination or underwriting and the Secretary determines that 

the mortgagee knew or should have known of 

the fraud or misrepresentation, the Secretary shall require the mortgagee approved 

by the Secretary under the direct endorsement program or the mortgagee delegated 

authority under section 256 to indemnify the 

Secretary for the loss regardless of when an 

insurance claim is paid. 

‘‘(3) APPEALS PROCESS.—The Secretary 

shall, by regulation, establish an appeals 

process for mortgagees to appeal indemnification determinations made pursuant to 

paragraph (1) or (2). 

‘‘(4) REQUIREMENTS AND PROCEDURES.—The 

Secretary shall issue regulations establishing appropriate requirements and procedures governing the indemnification of the 


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H5738 CONGRESSIONAL RECORD — HOUSE September 10, 2012 

Secretary by the mortgagee, including public reporting on— 

‘‘(A) the number of loans that— 

‘‘(i) were not originated or underwritten in 

accordance with the requirements established by the Secretary; and 

‘‘(ii) involved fraud or misrepresentation 

in connection with the origination or underwriting; and 

‘‘(B) the financial impact on the Mutual 

Mortgage Insurance Fund when indemnification is required.’’. 

SEC. 4. EARLY PERIOD DELINQUENCIES. 

Subsection (a) of section 202 of the National Housing Act (12 U.S.C. 1708(a)) is 

amended by adding at the end the following 

new paragraphs: 

‘‘(8) PROGRAMMATIC REVIEW OF EARLY PERIOD DELINQUENCIES.—The Secretary shall establish and maintain a program— 

‘‘(A) to review the cause of each early period delinquency on a mortgage that is an 

obligation of the Mutual Mortgage Insurance 

Fund; 

‘‘(B) to require indemnification of the Secretary for a loss associated with any such 

early period delinquency that is the result of 

a material violation, as determined by the 

Secretary, of any provision, regulation, or 

other guideline established or promulgated 

pursuant to this title; and 

‘‘(C) to publicly report— 

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

period delinquencies reviewed under subparagraph (A); 

‘‘(ii) any indemnifications required under 

subparagraph (B); and 

‘‘(iii) the financial impact on the Mutual 

Mortgage Insurance Fund of any such indemnifications. 

‘‘(9) DEFINITION OF EARLY PERIOD DELINQUENCY.—For purposes of this section, the 

term ‘early period delinquency’ means, with 

respect to a mortgage, that the mortgage becomes 90 or more days delinquent within 24 

months of the origination of such mortgage.’’. 

SEC. 5. SEMIANNUAL ACTUARIAL STUDIES OF 

MMIF DURING PERIODS OF CAPITAL 

DEPLETION. 

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

202(a) of the National Housing Act (12 U.S.C. 

1708(a)(4)) is amended— 

(1) in the first sentence, by inserting ‘‘except as provided in subparagraph (B),’’ after 

‘‘to be conducted annually,’’; 

(2) in the second sentence, by inserting ‘‘, 

except as provided in subparagraph (B),’’ 

after ‘‘annually’’; 

(3) by striking the paragraph designation 

and heading and all that follows through 

‘‘The Secretary shall provide’’ and inserting 

the following: 

‘‘(4) INDEPENDENT ACTUARIAL STUDY.— 

‘‘(A) ANNUAL STUDY.—The Secretary shall 

provide’’; and 

(4) by adding at the end the following new 

subparagraph: 

‘‘(B) SEMIANNUAL STUDIES DURING PERIODS

OF CAPITAL DEPLETION.—During any period 

that the Fund fails to maintain sufficient 

capital to comply with the capital ratio requirement under section 205(f)(2)— 

‘‘(i) the independent study required by subparagraph (A) shall be conducted semiannually and shall analyze the financial position 

of the Fund as of September 30 and March 31 

of each fiscal year during such period; and 

‘‘(ii) the Secretary shall submit a report 

meeting the requirements of subparagraph 

(A) for each such semiannual study.’’. 

(b) ANALYSIS OF QUARTERLY ACTUARIAL

STUDIES.—The Secretary of Housing and 

Urban Development shall conduct an analysis of the cost and feasibility of providing 

for an independent actuarial study of the 

Mutual Mortgage Insurance Fund on a calendar quarterly basis, which shall compare 

the cost and feasibility of conducting such a 

study on a quarterly basis as compared to a 

semi-annual basis and shall determine 

whether such an actuarial study can be conducted on a quarterly basis without substantial additional costs to the taxpayers. Not 

later than the expiration of the 90-day period 

beginning on the date of the enactment of 

this Act, the Secretary shall submit a report 

to the Congress setting forth the findings 

and conclusion of the analysis conducted 

pursuant to this subsection. 

SEC. 6. DELEGATION OF FHA INSURING AUTHORITY. 

Section 256 of the National Housing Act (12 

U.S.C. 1715z–21) is amended— 

(1) by striking subsection (c); 

(2) in subsection (e), by striking ‘‘, including’’ and all that follows through ‘‘by the 

mortgagee’’; and 

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

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

SEC. 7. AUTHORITY TO TERMINATE FHA MORTGAGEE ORIGINATION AND UNDERWRITING APPROVAL. 

Section 533 of the National Housing Act (12 

U.S.C. 1735f–11) is amended— 

(1) in the first sentence of subsection (b), 

by inserting ‘‘or areas or on a nationwide 

basis’’ after ‘‘area’’ each place such term appears; and 

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

all that follows through ‘‘The Secretary’’ in 

the first sentence of paragraph (2) and inserting the following: 

‘‘(c) TERMINATION OF MORTGAGEE ORIGINATION AND UNDERWRITING APPROVAL.— 

‘‘(1) TERMINATION AUTHORITY.—If the Secretary determines, under the comparison 

provided in subsection (b), that a mortgagee 

has a rate of early defaults and claims that 

is excessive, the Secretary may terminate 

the approval of the mortgagee to originate 

or underwrite single family mortgages for 

any area, or areas, or on a nationwide basis, 

notwithstanding section 202(c) of this Act. 

‘‘(2) PROCEDURE.—The Secretary’’. 

SEC. 8. AUTHORIZATION TO PARTICIPATE IN THE 

ORIGINATION OF FHA-INSURED 

LOANS. 

(a) SINGLE FAMILY MORTGAGES.—Section 

203(b) of the National Housing Act (12 U.S.C. 

1709(b)) is amended by striking paragraph (1) 

and inserting the following new paragraph: 

‘‘(1) Have been made to a mortgagee approved by the Secretary or to a person or entity authorized by the Secretary under section 202(d)(1) to participate in the origination of the mortgage, and be held by a mortgagee approved by the Secretary as responsible and able to service the mortgage properly.’’. 

(b) HOME EQUITY CONVERSION MORTGAGES.— 

Section 255(d) of the National Housing Act 

(12 U.S.C. 1715z–20(d)) is amended by striking 

paragraph (1) and inserting the following 

new paragraph: 

‘‘(1) have been originated by a mortgagee 

approved by, or by a person or entity authorized under section 202(d)(1) to participate in 

the origination by, the Secretary;’’. 

SEC. 9. REPORTING OF MORTGAGEE ACTIONS 

TAKEN AGAINST OTHER MORTGAGEES. 

Section 202 of the National Housing Act (12 

U.S.C. 1708), as amended by the preceding 

provisions of this Act, is further amended by 

adding at the end the following new subsection: 

‘‘(j) NOTIFICATION OF MORTGAGEE ACTIONS.—The Secretary shall require each 

mortgagee, as a condition for approval by 

the Secretary to originate or underwrite 

mortgages on single family or multifamily 

housing that are insured by the Secretary, if 

such mortgagee engages in the purchase of 

mortgages insured by the Secretary and 

originated by other mortgagees or in the 

purchase of the servicing rights to such 

mortgages, and such mortgagee at any time 

takes action to terminate or discontinue 

such purchases from another mortgagee 

based on any determination or evidence of 

fraud or material misrepresentation in connection with the origination of such mortgages, to notify the Secretary of the action 

taken and the reasons for such action not 

later than 15 days after taking such action.’’. 

SEC. 10. DEFAULT AND ORIGINATION INFORMATION BY LOAN SERVICER AND ORIGINATING DIRECT ENDORSEMENT 

LENDER. 

(a) COLLECTION OF INFORMATION.—Paragraph (2) of section 540(b) of the National 

Housing Act (12 U.S.C. 1712 U.S.C. 1735f– 

18(b)(2)) is amended by adding at the end the 

following new subparagraph: 

‘‘(C) For each entity that services insured 

mortgages, data on the number of claims 

paid to each servicing mortgagee during 

each calendar quarter occurring during the 

applicable collection period.’’. 

(b) APPLICABILITY.—Information described 

in subparagraph (C) of section 540(b)(2) of the 

National Housing Act, as added by subsection (a) of this section, shall first be made 

available under such section 540 for the applicable collection period (as such term is defined in such section) relating to the first 

calendar quarter ending after the expiration 

of the 12-month period that begins on the 

date of the enactment of this Act. 

SEC. 11. DEPUTY ASSISTANT SECRETARY OF FHA 

FOR RISK MANAGEMENT AND REGULATORY AFFAIRS. 

(a) ESTABLISHMENT OF POSITION.—Subsection (b) of section 4 of the Department of 

Housing and Urban Development Act (42 

U.S.C. 3533(b)) is amended— 

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

(2) by adding at the end the following new 

paragraph: 

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

within the Federal Housing Administration, 

a Deputy Assistant Secretary for Risk Management and Regulatory Affairs, who shall 

be appointed by the Secretary and shall be 

responsible to the Federal Housing Commissioner for all matters relating to managing 

and mitigating risk to the mortgage insurance funds of the Department and ensuring 

the performance of mortgages insured by the 

Department.’’. 

(b) TERMINATION.—Upon the appointment 

of the initial Deputy Assistant Secretary for 

Risk Management and Regulatory Affairs 

pursuant to section 4(b)(2) of the Department 

of Housing and Urban Development Act, as 

amended by subsection (a) of this section, 

the position of chief risk officer within the 

Federal Housing Administration, filled by 

appointment by the Federal Housing Commissioner, is abolished. 

SEC. 12. ESTABLISHMENT OF CHIEF RISK OFFICER FOR GNMA. 

Section 4 of the Department of Housing 

and Urban Development Act (42 U.S.C. 3533) 

is amended by adding after subsection (g), as 

added by section 1442 of the Dodd-Frank Wall 

Street Reform and Consumer Protection Act 

(Public Law 111–203; 124 Stat. 2163), the following new subsection: 

‘‘(h) There shall be in the Department a 

Chief Risk Officer for the Government National Mortgage Association, who shall— 

‘‘(1) be designated by the Secretary; 

‘‘(2) be responsible to the President of the 

Association for all matters related to evaluating, managing, and mitigating risk to the 

programs of the Association; 

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

senior executive service; 

‘‘(4) be a career appointee; 

‘‘(5) be designated from among individuals 

who possess demonstrated ability in general 


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management of, and knowledge of and extensive practical experience in risk evaluation 

practices in large governmental or business 

entities; and 

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

prior approval, comment, or review of any 

officer or agency of the United States before 

submitting to the Congress, or any committee or subcommittee thereof, any reports, 

recommendations, testimony, or comments 

if such submission include a statement indicating that the views expressed therein are 

those of the Chief Risk Officer of the Association and do not necessarily represent the 

views of the Secretary.’’. 

SEC. 13. REPORT ON MORTGAGE SERVICERS. 

(a) EXAMINATION.—The Secretary of Housing and Urban Development shall conduct an 

examination into mortgage servicer compliance with the loan servicing, loss mitigation, 

and insurance claim submission guidelines of 

the FHA mortgage insurance programs under 

the National Housing Act (12 U.S.C. 1701 et 

seq.), and an estimate of the annual costs to 

the Mutual Mortgage Insurance Fund, since 

2008, resulting from any failures by mortgage 

servicers to comply with such guidelines. 

(b) REPORT.—Not later than the expiration 

of the 120-day period that begins upon the 

date of the enactment of this Act, the Secretary shall submit a report to the Congress 

on the results of the examination conducted 

pursuant to subsection (a), including recommendations for any administrative and 

legislative actions to improve mortgage 

servicer compliance with the guidelines referred to in subsection (a). 

SEC. 14. FHA EMERGENCY CAPITAL PLAN. 

(a) ESTABLISHMENT.—Not later than the expiration of the 30-day period beginning on 

the date of the enactment of this Act, the 

Secretary of Housing and Urban Development shall develop, submit to the Congress, 

and commence implementation of an emergency capital plan for the restoration of the 

fiscal solvency of the Mutual Mortgage Insurance Fund (in this section referred to as 

the ‘‘Fund’’). 

(b) CONTENTS.—The emergency capital plan 

developed pursuant to this section shall— 

(1) provide a detailed explanation of the 

processes and controls by which amounts of 

capital that are assets of the Fund are monitored and tracked; 

(2) establish a plan to ensure the financial 

safety and soundness of the Fund that avoids 

the need for borrowing amounts from the 

Treasury of the United States to meet obligations of the Fund; and 

(3) describe the procedure by which, if necessary, any amounts from the Treasury 

needed to meet obligations of the Fund will 

be obtained from the Treasury. 

(c) MONTHLY REPORTS.— 

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

upon the conclusion of each calendar month 

ending after the 14-day period that begins on 

the date of the enactment of this Act, the 

Secretary of Housing and Urban Development shall submit to the Congress a report 

assessing the financial status of the Fund at 

the conclusion of such month and setting 

forth the information described in paragraph 

(2). 

(2) CONTENTS.—Each report required under 

paragraph (1) for a month shall contain the 

following information regarding the Fund as 

of the conclusion of such month: 

(A) The number of mortgages that are obligations of the Fund that are 60 or more days 

delinquent, the expected losses to the Fund 

associated with such delinquent mortgages, 

and the methodology used to make such calculation. 

(B) The number of mortgages that are obligations of the Fund that have a loan-tovalue ratio at the time of origination that is 

less than 80 percent and the percentage of all 

mortgages that are obligations of the Fund 

having such a ratio. 

(C) The number of mortgages that are obligations of the Fund that had an original 

principal obligation exceeding 125 percent of 

the median house price, for a home of the 

size of the residence subject to the mortgage, 

for the area in which such residence is located, and the percentage of all mortgages 

that are obligations of the Fund having such 

an original principal obligation. 

(D) The number of mortgages that are obligations of the Fund for which the mortgagor’s income at the time of origination of 

the mortgage is greater than the median income for the area in which the residence subject to the mortgage is located, and the percentage of all mortgages that are obligations 

of the Fund for which the mortgagor has 

such an income. 

(E) The balances for the financing and capital reserve accounts of the Fund. 

(F) Any actions taken during such month 

to help ensure the financial soundness of the 

Fund and compliance with section 205(f) of 

the National Housing Act (12 U.S.C. 1711(f); 

relating to a capital ratio requirement). 

(3) TERMINATION OF REPORTING REQUIREMENT.—The requirement to submit reports 

under paragraph (1) shall terminate on the 

first date after the date of the enactment of 

this Act that the Fund attains a capital 

ratio (as such term is defined in section 

205(f)(3) of the National Housing Act) of 2.0 

percent. 

SEC. 15. FHA SAFETY AND SOUNDNESS REVIEW. 

(a) REVIEW.—The Comptroller General of 

the United States shall provide for an independent third party to— 

(1) conduct a one-time review of the mortgage insurance programs and funds of the 

Secretary of Housing and Urban Development that shall determine, as of the time of 

such review— 

(A) the financial safety and soundness of 

such programs and funds; and 

(B) the extent of loan loss reserves and 

capital adequacy of such programs and 

funds; and 

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

Such review shall be conducted in accordance with generally accepted accounting 

principles applicable to the private sector 

and Federal entities. 

(b) REPORT.—The report under this subsection shall describe the methodology and 

standards used to conduct the review under 

subsection (a)(1), set forth the results and 

findings of the review, including the extent 

of loan loss reserves and capital adequacy of 

the mortgage insurance programs and funds 

of the Secretary of Housing and Urban Development, and include recommendations regarding restoring such reserves and capital 

to maintain such programs and funds in a 

safe and sound condition. 

(c) TIMING.—The review required under 

subsection (a) shall be completed, and the report required under subsection (b) shall be 

submitted, not later than the expiration of 

the 60-day period beginning on the date of 

the enactment of this Act. 

(d) RULE OF CONSTRUCTION.—Nothing in 

this section may be construed to alter or affect, or exempt the Secretary of Housing and 

Urban Development from complying with, 

any laws, regulations, or guidance relating 

to preparation or submission of budgets or 

audits or financial or management statements or reports. 

SEC. 16. FHA DISCLOSURE STANDARDS. 

Not later than the expiration of the 90-day 

period beginning on the date of the enactment of this Act, the Secretary of Housing 

and Urban Development shall review and revise all standards and requirements relating 

to disclosure of information regarding the 

mortgage insurance programs and funds, including actuarial studies conducted under 

section 202(a)(4) of the National Housing Act 

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

section 202(a)(5) of such Act, and annual audited financial statements under section 538 

of such Act (12 U.S.C. 1735f–16), to ensure 

that, after the date of the enactment of this 

Act, such disclosures— 

(1) provide meaningful financial and other 

information that is timely, comprehensive, 

and accurate; 

(2) do not contain any material 

misstatements or misrepresentations; 

(3) make available all relevant information; and 

(4) prohibit material omissions that make 

the contents of the disclosure misleading. 

SEC. 17. REPORT ON STREAMLINING FHA PROGRAMS. 

(a) EXAMINATION.—The Secretary of Housing and Urban Development shall conduct an 

examination of the mortgage insurance and 

any other programs of the Federal Housing 

Administration to identify— 

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

(2) any such programs that are unused or 

underused; and 

(3) methods for streamlining, consolidating, simplifying, increasing the efficiency 

of, and reducing the number of such programs. 

(b) REPORT.—Not later than the expiration 

of the 12-month period that begins upon the 

date of the enactment of this Act, the Secretary shall submit a report to the Congress 

on the results of the examination conducted 

pursuant to subsection (a), including recommendations for any administrative and 

legislative actions to streamline, consolidate, simplify, increase the efficiency of, and 

reduce the number of such programs. 

SEC. 18. BUDGET COMPLIANCE. 

The Secretary of Housing and Urban Development shall allocate $2,500,000 from the account for Administrative Contract Expenses 

each fiscal year through September 30, 2017, 

which amounts shall be available only for 

the purposes of this Act and the amendments 

made by this Act, including such additional 

actuarial reviews as may be required by section 5 of this Act and the amendments made 

by such section. 

The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 

Illinois (Mrs. BIGGERT) and the gentlewoman from Wisconsin (Ms. MOORE) 

each will control 20 minutes. 

The Chair recognizes the gentlewoman from Illinois. 

GENERAL LEAVE

Mrs. BIGGERT. Mr. Speaker, I ask 

that all Members may have 5 legislative days in which to revise and extend 

their remarks and add extraneous material on this bill. 

The SPEAKER pro tempore. Is there 

objection to the request of the gentlewoman from Illinois? 

There was no objection. 

Mrs. BIGGERT. Mr. Speaker, I yield 

myself such time as I may consume. 

Mr. Speaker, H.R. 4264, the FHA 

Emergency Fiscal Solvency Act of 2012, 

will provide the tools necessary to ensure the financial soundness of the 

Federal Housing Administration, or 

FHA. Right now, FHA is well below its 

mandatory 2 percent capital reserve 

with only .24 percent to cover losses. 

The administration’s fiscal year 2013 

budget recently admitted that the FHA 


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may need a $688 million taxpayer bailout because of the depleted capital reserve fund. Last Friday, September 7, 

HUD issued its FHA quarterly report, 

which said that it anticipates increased 

foreclosures, claim activity, and related expenditures. 

The FHA has had an abysmal fiscal 

track record and, to top it off, recent 

data furnished by the GAO confirmed 

that the FHA represents about 75 percent of the insured mortgage market. 

FHA is a government program that has 

put taxpayers at significant risk and 

flies in the face of private capital returning to the housing financial market. 

The FHA Emergency Fiscal Solvency 

Act will provide FHA with the tools 

that it needs to shore up the program, 

lower the program’s risk, and reduce 

taxpayers’ liabilities. 

The bill would establish for the first 

time a minimum annual premium of 55 

basis points and allow FHA to charge 

up to 2.05 percent. It would strengthen 

FHA’s ability to recoup losses from 

lenders for fraudulent, misrepresented 

and early delinquent loans, and it 

would allow FHA on a nationwide basis 

to terminate bad lenders. It also codifies the position of FHA Deputy Assistant Secretary for Risk and establishes 

a chief risk officer for Ginnie Mae. 

These are commonsense targeted 

changes that would ensure accountability and financial stability within 

the FHA. On March 27, the Financial 

Services Committee unanimously 

passed this bill, and I would urge my 

colleagues to support H.R. 4264. 

I reserve the balance of my time. 

Ms. MOORE. Mr. Speaker, I believe 

that H.R. 4264 will further strengthen 

and protect the MMI fund, and I would 

urge all Members to adopt this resolution. 

I yield back the balance of my time. 

Mrs. BIGGERT. I have no further 

speakers, and I yield back the balance 

of my time. 

The SPEAKER pro tempore. The 

question is on the motion offered by 

the gentlewoman from Illinois (Mrs. 

BIGGERT) that the House suspend the 

rules and pass the bill, H.R. 4264, as 

amended. 

The question was taken. 

The SPEAKER pro tempore. In the 

opinion of the Chair, two-thirds being 

in the affirmative, the ayes have it. 

Mrs. BIGGERT. Mr. Speaker, on that 

I demand the yeas and nays. 

The yeas and nays were ordered. 

The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed. 

f 

LIONS CLUBS INTERNATIONAL 

CENTURY OF SERVICE COMMEMORATIVE COIN ACT 

Mr. DOLD. Mr. Speaker, I move to 

suspend the rules and pass the bill 

(H.R. 2139) to require the Secretary of 

the Treasury to mint coins in commemoration of the centennial of the 

establishment of Lions Clubs International, as amended. 

The Clerk read the title of the bill. 

The text of the bill is as follows: 

H.R. 2139 

Be it enacted by the Senate and House of Representatives of the United States of America in 

Congress assembled, 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Lions Clubs 

International Century of Service Commemorative Coin Act’’. 

SEC. 2. FINDINGS. 

The Congress finds as follows: 

(1) Lions Clubs International is the world’s 

largest service club organization founded in 

1917 by Chicago business leader Melvin 

Jones. Lions Clubs International empowers 

volunteers to serve their communities, meet 

humanitarian needs, encourage peace and 

promote international understanding 

through Lions clubs. 

(2) Today, Lions Clubs International has 

over 1.35 million members in more than 

45,000 clubs globally, extending its mission of 

service throughout the world every day. 

(3) In 1945, Lions Clubs International became one of the first nongovernmental organizations invited to assist in drafting the 

United Nations Charter and has enjoyed a 

special relationship with the United Nations 

ever since. 

(4) In 1968, Lions Clubs International Foundation was established to assist with global 

and large-scale local humanitarian projects 

and has since then awarded more than $700 

million to fund five unique areas of service: 

preserving sight, combating disability, promoting health, serving youth and providing 

disaster relief. 

(5) In 1990, the Lions Clubs International 

Foundation launched the SightFirst program 

to build comprehensive eye care systems to 

fight the major causes of blindness and care 

for the blind or visually impaired. Thanks to 

the generosity of Lions worldwide, over $415 

million has been raised, resulting in the prevention of serious vision loss in 30 million 

people and improved eye care for hundreds of 

millions of people. 

(6) On June 7, 2017, Lions Clubs International will celebrate 100 years of community service to men, women, and children in 

need throughout the world. 

SEC. 3. COIN SPECIFICATIONS. 

(a) $1 SILVER COINS.—The Secretary of the 

Treasury (hereafter in this Act referred to as 

the ‘‘Secretary’’) shall mint and issue not 

more than 400,000 $1 coins in commemoration 

of the centennial of the founding of the 

Lions Clubs International, each of which 

shall— 

(1) weigh 26.73 grams; 

(2) have a diameter of 1.500 inches; and 

(3) contain 90 percent silver and 10 percent 

copper. 

(b) LEGAL TENDER.—The coins minted 

under this Act shall be legal tender, as provided in section 5103 of title 31, United States 

Code. 

(c) NUMISMATIC ITEMS.—For purposes of 

sections 5134 and 5136 of title 31, United 

States Code, all coins minted under this Act 

shall be considered to be numismatic items. 

SEC. 4. DESIGN OF COINS. 

(a) DESIGN REQUIREMENTS.— 

(1) IN GENERAL.—The design of the coins 

minted under this Act shall be emblematic 

of the centennial of the Lions Clubs International. 

(2) DESIGNATION AND INSCRIPTIONS.—On 

each coin minted under this Act, there shall 

be— 

(A) a designation of the value of the coin; 

(B) an inscription of the year ‘‘2017’’; and 

(C) inscriptions of the words ‘‘Liberty’’, 

‘‘In God We Trust’’, ‘‘United States of America’’, and ‘‘E Pluribus Unum’’. 

(b) SELECTION.—The design for the coins 

minted under this Act shall be— 

(1) chosen by the Secretary after consultation with Lions Clubs International Special 

Centennial Planning Committee and the 

Commission of Fine Arts; and 

(2) reviewed by the Citizens Coinage Advisory Committee. 

SEC. 5. ISSUANCE OF COINS. 

(a) QUALITY OF COINS.—Coins minted under 

this Act shall be issued in uncirculated and 

proof qualities. 

(b) MINT FACILITY.—Only one facility of 

the United States Mint may be used to 

strike any particular quality of the coins 

minted under this Act. 

(c) PERIOD FOR ISSUANCE.—The Secretary 

may issue coins under this Act only during 

the calendar year beginning on January 1, 

2017. 

SEC. 6. SALE OF COINS. 

(a) SALE PRICE.—The coins issued under 

this Act shall be sold by the Secretary at a 

price equal to the sum of— 

(1) the face value of the coins; 

(2) the surcharge provided in section 7 with 

respect to such coins; and 

(3) the cost of designing and issuing the 

coins (including labor, materials, dies, use of 

machinery, overhead expenses, marketing, 

and shipping). 

(b) BULK SALES.—The Secretary shall 

make bulk sales of the coins issued under 

this Act at a reasonable discount. 

(c) PREPAID ORDERS.— 

(1) IN GENERAL.—The Secretary shall accept prepaid orders for the coins minted 

under this Act before the issuance of such 

coins. 

(2) DISCOUNT.—Sale prices with respect to 

prepaid orders under paragraph (1) shall be 

at a reasonable discount. 

SEC. 7. SURCHARGES. 

(a) IN GENERAL.—All sales of coins issued 

under this Act shall include a surcharge of 

$10 per coin. 

(b) DISTRIBUTION.—Subject to section 

5134(f) of title 31, United States Code, all surcharges received by the Secretary from the 

sale of coins issued under this Act shall be 

promptly paid by the Secretary to the Lions 

Clubs International Foundation for the purposes of— 

(1) furthering its programs for the blind 

and visually impaired in the United States 

and abroad; 

(2) investing in adaptive technologies for 

the disabled; and 

(3) investing in youth and those affected by 

a major disaster. 

(c) AUDITS.—The Lions Clubs International 

Foundation shall be subject to the audit requirements of section 5134(f)(2) of title 31, 

United States Code, with regard to the 

amounts received under subsection (b). 

(d) LIMITATION.—Notwithstanding subsection (a), no surcharge may be included 

with respect to the issuance under this Act 

of any coin during a calendar year if, as of 

the time of such issuance, the issuance of 

such coin would result in the number of commemorative coin programs issued during 

such year to exceed the annual 2 commemorative coin program issuance limitation 

under section 5112(m)(1) of title 31, United 

States Code. The Secretary may issue guidance to carry out this subsection. 

SEC. 8. FINANCIAL ASSURANCES. 

The Secretary shall take such actions as 

may be necessary to ensure that— 

(1) minting and issuing coins under this 

Act will not result in any net cost to the 

United States Government; and 

(2) no funds, including applicable surcharges, shall be disbursed to any recipient 


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