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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1222 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1222

 To increase the guarantee fees charged by Fannie Mae and Freddie Mac 
     with respect to mortgage-backed securities guaranteed by such 
                              enterprises.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2011

 Mr. Neugebauer (for himself, Mr. Bachus, Mr. Garrett, Mr. Pearce, and 
 Mr. Hensarling) introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
 To increase the guarantee fees charged by Fannie Mae and Freddie Mac 
     with respect to mortgage-backed securities guaranteed by such 
                              enterprises.

    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 ``GSE Subsidy Elimination Act of 
2011''.

SEC. 2. GSE GUARANTEE FEES.

    Subpart A of part 2 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 is amended by adding after section 
1326 (12 U.S.C. 4546) the following new section:

``SEC. 1327. ENTERPRISE GUARANTEE FEES.

    ``(a) Increase.--Subject to subsection (b), the Director shall 
require each enterprise to charge a guarantee fee in connection with 
any guarantee, issued by the enterprise on or after the expiration of 
the 2-year period beginning on the date of the enactment of this 
section, of the timely payment of principal and interest on securities, 
notes, and other obligations based on or backed by mortgages on 
residential real properties designed principally for occupancy of from 
one to four families, in an amount that the Director determines 
appropriately reflects risk of loss as well the cost of capital 
allocated to similar assets held by other fully private regulated 
financial institutions.
    ``(b) Phase-In.--The Director shall provide for compliance with 
subsection (a) by requiring each enterprise to increase the guarantee 
fee charged by the enterprise gradually during the period beginning on 
the date of the enactment of this section and ending upon the date 
specified in such subsection in a manner sufficient to comply with such 
subsection. In determining a schedule for such increases, the Director 
shall--
            ``(1) provide for uniform pricing among lenders;
            ``(2) provide for adjustments in pricing based on risk 
        levels; and
            ``(3) take into consideration conditions in financial 
        markets.
    ``(c) Definition of Guarantee Fee.--For purposes of this section, 
the term `guarantee fee' means a fee described in subsection (a). Such 
term includes--
            ``(1) the guaranty fee charged by the Federal National 
        Mortgage Association with respect to mortgage-backed 
        securities; and
            ``(2) the management and guarantee fee charged by the 
        Federal Home Loan Mortgage Corporation with respect to 
        participation certificates.''.
                                 <all>
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