IB 

Union Calendar No. 270 

111TH CONGRESS 

2D SESSION H. R. 5072 

[Report No. 111–476] 

To improve the financial safety and soundness of the FHA mortgage 

insurance program. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2010 

Ms. WATERS (for herself, Mrs. CAPITO, Mr. FRANK of Massachusetts, and Mr. 

AL GREEN of Texas) introduced the following bill; which was referred to 

the Committee on Financial Services 

MAY 6, 2010 

Additional sponsors: Mr. LYNCH and Mr. SHERMAN

MAY 6, 2010 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on April 20, 2010] 


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A BILL 

To improve the financial safety and soundness of the FHA 

mortgage insurance program. 


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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘FHA Reform Act of 

5 2010’’. 

6 SEC. 2. MORTGAGE INSURANCE PREMIUMS. 

7 Subparagraph (B) of section 203(c)(2) of the National 

8 Housing Act (12 U.S.C. 1709(c)(2)(B)) is amended— 

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

10 (A) by striking ‘‘shall’’ and inserting 

11 ‘‘may’’; and 

12 (B) by striking ‘‘0.50 percent’’ and insert13 ing ‘‘1.5 percent’’; and 

14 (2) in clause (ii), by striking ‘‘shall be in an 

15 amount not exceeding 0.55 percent’’ and inserting 

16 ‘‘may be in an amount not exceeding 1.55 percent’’. 

17 SEC. 3. INDEMNIFICATION BY MORTGAGEES. 

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

19 1708) is amended by adding at the end the following new 

20 subsection: 

21 ‘‘(i) INDEMNIFICATION BY MORTGAGEES.— 

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

23 that a mortgage executed by a mortgagee approved by 

24 the Secretary under the direct endorsement program 

25 or insured by a mortgagee pursuant to the delegation 


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1 of authority under section 256 was not originated or 

2 underwritten in accordance with the requirements es3 tablished by the Secretary, and the Secretary pays an 

4 insurance claim with respect to the mortgage within 

5 a reasonable period specified by the Secretary, the 

6 Secretary may require the mortgagee approved by the 

7 Secretary under the direct endorsement program or 

8 the mortgagee delegated authority under section 256 

9 to indemnify the Secretary for the loss. 

10 ‘‘(2) FRAUD OR MISREPRESENTATION.—If fraud 

11 or misrepresentation was involved in connection with 

12 the origination or underwriting, the Secretary may 

13 require the mortgagee approved by the Secretary 

14 under the direct endorsement program or the mort15 gagee delegated authority under section 256 to indem16 nify the Secretary for the loss regardless of when an 

17 insurance claim is paid. 

18 ‘‘(3) REQUIREMENTS AND PROCEDURES.—The 

19 Secretary shall issue regulations establishing appro20 priate requirements and procedures governing the in21 demnification of the Secretary by the mortgagee.’’. 

22 SEC. 4. DELEGATION OF INSURING AUTHORITY. 

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

24 1715z–21) is amended— 

25 (1) by striking subsection (c); 


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

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

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

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

5 SEC. 5. AUTHORITY TO TERMINATE MORTGAGEE ORIGINA6 TION AND UNDERWRITING APPROVAL. 

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

8 1735f–11) is amended— 

9 (1) in the first sentence of subsection (b), by in10 serting ‘‘or areas or on a nationwide basis’’ after 

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

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

13 that follows through ‘‘The Secretary’’ in the first sen14 tence of paragraph (2) and inserting the following: 

15 ‘‘(c) TERMINATION OF MORTGAGEE ORIGINATION AND

16 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 origi22 nate or underwrite single family mortgages for any 

23 area, or areas, or on a nationwide basis, notwith24 standing section 202(c) of this Act. 

25 ‘‘(2) PROCEDURE.—The Secretary’’. 


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1 SEC. 6. DEPUTY ASSISTANT SECRETARY OF FHA FOR RISK 

2 MANAGEMENT AND REGULATORY AFFAIRS. 

3 (a) ESTABLISHMENT OF POSITION.—Subsection (b) of 

4 section 4 of the Department of Housing and Urban Develop5 ment Act (42 U.S.C. 3533(b)) is amended— 

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

7 (2) by adding at the end the following new para8 graph: 

9 ‘‘(2) There shall be in the Department, within the Fed10 eral Housing Administration, a Deputy Assistant Secretary 

11 for Risk Management and Regulatory Affairs, who shall be 

12 appointed by the Secretary and shall be responsible to the 

13 Federal Housing Commissioner for all matters relating to 

14 managing and mitigating risk to the mortgage insurance 

15 funds of the Department and ensuring the performance of 

16 mortgages insured by the Department.’’. 

17 (b) TERMINATION.—Upon the appointment and con18 firmation of the initial Deputy Assistant Secretary for Risk 

19 Management and Regulatory Affairs pursuant to section 

20 4(b)(2) of the Department of Housing and Urban Develop21 ment Act, as amended by subsection (a) of this section, the 

22 position of chief risk officer within the Federal Housing Ad23 ministration, filled by appointment by the Federal Housing 

24 Commissioner, is abolished. 


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1 SEC. 7. USE OF OUTSIDE CREDIT RISK ANALYSIS SOURCES. 

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

3 1708), as amended by the preceding provisions of this Act, 

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

5 subsection: 

6 ‘‘(j) USE OF OUTSIDE CREDIT RISK ANALYSIS

7 SOURCES.—The Secretary may obtain the services of, and 

8 enter into contracts with, private and other entities outside 

9 of the Department in— 

10 ‘‘(1) analyzing credit risk models and practices 

11 employed by the Department in connection with such 

12 mortgages; 

13 ‘‘(2) evaluating underwriting standards applica14 ble to such mortgages insured by the Department; and 

15 ‘‘(3) analyzing the performance of lenders in 

16 complying with, and the Department in enforcing, 

17 such underwriting standards.’’. 

18 SEC. 8. REVIEW OF MORTGAGEE PERFORMANCE. 

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

20 1735f–11) is amended— 

21 (1) in subsection (a), by inserting after the pe22 riod at the end the following: ‘‘For purposes of this 

23 subsection, the term ‘early default’ means a default 

24 that occurs within 24 months after a mortgage is 

25 originated or such alternative appropriate period as 

26 the Secretary shall establish.’’; 


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1 (2) in subsection (b), by inserting after the pe2 riod at the end of the first sentence the following: 

3 ‘‘The Secretary shall also identify which mortgagees 

4 have had a significant or rapid increase, as deter5 mined by the Secretary, in the number or percentage 

6 of early defaults and claims on such mortgages, with 

7 respect to all mortgages originated by the mortgagee 

8 or mortgages on housing located in any particular ge9 ographic area or areas.’’; and 

10 (3) by adding at the end the following new sub11 sections: 

12 ‘‘(d) SUFFICIENT RESOURCES.—There is authorized to 

13 be appropriated to the Secretary for each of fiscal years 

14 2010 through 2014 the amount necessary to provide addi15 tional full-time equivalent positions for the Department, or 

16 for entering into such contracts as are necessary, to conduct 

17 reviews in accordance with the requirements of this section 

18 and to carry out other responsibilities relating to ensuring 

19 the safety and soundness of the Mutual Mortgage Insurance 

20 Fund. 

21 ‘‘(e) REPORTING TO CONGRESS.—Not later than 90 

22 days after the date of enactment of the FHA Reform Act 

23 of 2010 and not less often than annually thereafter, the Sec24 retary shall make available to the Committee on Financial 

25 Services of the House of Representatives and the Committee 


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1 on Banking, Housing, and Urban Affairs of the Senate any 

2 information and conclusions pursuant to the reviews re3 quired under subsection (a). Such report shall not include 

4 detailed information on the performance of individual 

5 mortgages.’’. 

6 SEC. 9. USE OF NATIONWIDE MORTGAGE LICENSING SYS7 TEM AND REGISTRY. 

8 (a) USE BY MORTGAGEES, OFFICERS, AND OWNERS; 

9 USE FOR INSURED MORTGAGES.— 

10 (1) MORTGAGEES, OFFICERS, AND OWNERS.— 

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

12 1708), as amended by the preceding provisions of this 

13 Act, is further amended by adding at the end the fol14 lowing new subsections: 

15 ‘‘(k) USE OF NATIONWIDE MORTGAGE LICENSING SYS16 TEM AND REGISTRY FOR MORTGAGEES, OFFICERS, AND

17 OWNERS.—The Secretary may require, as a condition for 

18 approval of a mortgagee by the Secretary to originate or 

19 underwrite mortgages on single family that are insured by 

20 the Secretary, that the mortgagee— 

21 ‘‘(1) obtain and maintain a unique company 

22 identifier assigned by the Nationwide Mortgage Li23 censing System and Registry, as established by the 

24 Conference of State Bank Supervisors and the AmerVerDate Mar 15 2010 22:02 May 06, 2010 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H5072.RH H5072

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1 ican Association of Residential Mortgage Regulators; 

2 and 

3 ‘‘(2) obtain and maintain, as relates to any and 

4 all officers or owners of the mortgagee who are subject 

5 to the requirements of the S.A.F.E. Mortgage Licens6 ing Act of 2008, or are otherwise required to register 

7 with the Nationwide Mortgage Licensing System and 

8 Registry, the unique identifier assigned by the Na9 tionwide Mortgage Licensing System and Registry, as 

10 established by the Conference of State Bank Super11 visors and the American Association of Residential 

12 Mortgage Regulators.’’. 

13 (2) INSURED MORTGAGES.—Section 203 of the 

14 National Housing Act (12 U.S.C. 1709) is amended 

15 by adding at the end the following new subsection: 

16 ‘‘(y) USE OF NATIONWIDE MORTGAGE LICENSING SYS17 TEM AND REGISTRY FOR INSURED LOANS.—The Secretary 

18 may require each mortgage insured under this section to 

19 include the unique identifier (as such term is defined in 

20 section 1503 of the S.A.F.E. Mortgage Licensing act of 2008 

21 (12 U.S.C. 5102)) and any unique company identifier as22 signed by the Nationwide Mortgage Licensing System and 

23 Registry, as established by the Conference of State Bank Su24 pervisors and the American Association of Residential 

25 Mortgage Regulators.’’. 


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1 (b) COORDINATION WITH STATE REGULATORY AGEN2 CIES.—Section 202 of the National Housing Act (12 U.S.C. 

3 1708), as amended by the preceding provisions of this Act, 

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

5 subsection: 

6 ‘‘(l) INFORMATION SHARING WITH STATE REGU7 LATORY AGENCIES.— 

8 ‘‘(1) JOINT PROTOCOL ON INFORMATION SHAR9 ING.—The Secretary shall, through consultation with 

10 State regulatory agencies, pursue protocols for infor11 mation sharing, including the appropriate treatment 

12 of confidential or otherwise restricted information, re13 garding either actions described in subsection (c)(3) of 

14 this section or disciplinary or enforcement actions by 

15 a State regulatory agency or agencies against a mort16 gagee (as such term is defined in subsection (c)(7)). 

17 ‘‘(2) COORDINATION.—To the greatest extent pos18 sible, the Secretary and appropriate State regulatory 

19 agencies shall coordinate disciplinary and enforce20 ment actions involving mortgagees (as such term is 

21 defined in subsection (c)(7)).’’. 

22 SEC. 10. REPORTING OF MORTGAGEE ACTIONS TAKEN 

23 AGAINST OTHER MORTGAGEES. 

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

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


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1 Act, is further amended by adding at the end the following 

2 new subsection: 

3 ‘‘(m) 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 determination, 

13 evidence, or report of fraud or material misrepresentation 

14 in connection with the origination of such mortgages, the 

15 mortgagee shall, not later than 15 days after taking such 

16 action, shall notify the Secretary of the action taken and 

17 the reasons for such action.’’. 

18 SEC. 11. ANNUAL ACTUARIAL STUDY AND QUARTERLY RE19 PORTS ON MUTUAL MORTGAGE INSURANCE 

20 FUND. 

21 Subsection (a) of section 202 of the National Housing 

22 Act (12 U.S.C. 1708(a)) is amended— 

23 (1) in the second sentence of paragraph (4), by 

24 inserting before the period at the end the following: ‘‘, 

25 any changes to the current or projected safety and 


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1 soundness of the Fund since the most recent report 

2 under this paragraph or paragraph (5), and any 

3 risks to the Fund’’; and 

4 (2) in paragraph (5)— 

5 (A) in subparagraph (D), by striking ‘‘and’’ 

6 at the end; 

7 (B) in subparagraph (E), by striking the 

8 period at the end and inserting ‘‘; and’’; 

9 (C) by adding at the end the following: 

10 ‘‘(F) any other factors that are likely to 

11 have an impact on the financial status of the 

12 Fund or cause any material changes to the cur13 rent or projected safety and soundness of the 

14 Fund since the most recent report under para15 graph (4). 

16 The Secretary may include in the report under this 

17 paragraph any recommendations not made in the 

18 most recent report under paragraph (4) that may be 

19 needed to ensure that the Fund remains financially 

20 sound.’’. 

21 SEC. 12. REVIEW OF DOWNPAYMENT REQUIREMENTS. 

22 Section 205 of the National Housing Act (12 U.S.C. 

23 1711) is amended by adding at the end the following new 

24 subsection: 


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1 ‘‘(g) REVIEW OF DOWNPAYMENT REQUIREMENTS.—If, 

2 at any time when the capital ratio (as such term is defined 

3 in subsection (f)) of the Mutual Mortgage Insurance Fund 

4 does not comply with the requirement under subsection 

5 (f)(1), the Secretary establishes a cash investment require6 ment, for all mortgages or mortgagors or with respect to 

7 any group of mortgages or mortgagors, that exceeds the 

8 minimum percentage or amount required under section 

9 203(b)(9), thereafter upon the capital ratio first complying 

10 with the requirement under subsection (f)(1) the Secretary 

11 shall review such cash investment requirement and, if the 

12 Secretary determines that such percentage or amount may 

13 be reduced while maintaining such compliance, the Sec14 retary shall subsequently reduce such requirement by such 

15 percentage or amount as the Secretary considers appro16 priate.’’. 

17 SEC. 13. DEFAULT AND ORIGINATION INFORMATION BY 

18 LOAN SERVICER AND ORIGINATING DIRECT 

19 ENDORSEMENT LENDER. 

20 (a) COLLECTION OF INFORMATION.—Paragraph (2) of 

21 section 540(b) of the National Housing Act (12 U.S.C. 1712 

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

23 the following new subparagraph: 

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

25 mortgages, data on the performance of mortgages 


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1 originated during each calendar quarter occur2 ring during the applicable collection period, 

3 disaggregated by the direct endorsement mort4 gagee from whom such entity acquired such serv5 icing.’’. 

6 (b) APPLICABILITY.—Information described in sub7 paragraph (C) of section 540(b)(2) of the National Housing 

8 Act, as added by subsection (a) of this section, shall first 

9 be made available under such section 540 for the applicable 

10 collection period (as such term is defined in such section) 

11 relating to the first calendar quarter ending after the expi12 ration of the 12-month period that begins on the date of 

13 the enactment of this Act. 

14 SEC. 14. THIRD PARTY SERVICER OUTREACH. 

15 (a) AUTHORITY.—The Secretary of Housing and 

16 Urban Development may, to the extent any amounts for fis17 cal year 2010 or 2011 are made available in advance in 

18 appropriation Acts for reimbursements under this section, 

19 provide reimbursement to servicers of covered mortgages (as 

20 such term is defined in subsection (e)) for costs of obtaining 

21 the services of independent third parties meeting the re22 quirements under subsection (b) of this section to make in23 person contact with mortgagors under covered mortgages 

24 whose payments under such mortgages are 60 or more days 


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1 past due, solely for the purposes of providing information 

2 to such mortgagors regarding— 

3 (1) available counseling by housing counseling 

4 agencies approved by the Secretary ; and 

5 (2) available mortgage loan modification, refi6 nance, and assistance programs. 

7 (b) QUALIFIED INDEPENDENT THIRD PARTIES.—An 

8 independent third party meets the requirements of this sub9 section if the third party— 

10 (1) is an entity, including a housing counseling 

11 agency approved by the Secretary, that meets stand12 ards, qualifications, and requirements (including re13 garding foreclosure prevention training, quality mon14 itoring, safeguarding of non-public information) es15 tablished by the Secretary for purposes of this section 

16 for in-person contact about available mortgage loan 

17 modification, refinance, and assistance programs; and 

18 (2) does not charge any fees or require other pay19 ments, directly or indirectly, from any mortgagor for 

20 making in-person contact and providing information 

21 and documents under this section. 

22 (c) TREATMENT OF PERSONAL, NON-PUBLIC, AND CON23 FIDENTIAL INFORMATION.—An independent third party 

24 whose services are obtained using amounts made available 

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1 ing such services shall not use, disclose, or distribute any 

2 personal, non-public, or confidential information about a 

3 mortgagor obtained during an in-person contact with the 

4 mortgagor, except for purposes of engaging in the process 

5 of modification or refinance of the covered mortgage. 

6 (d) DATE OF CONTACT AND DISCLOSURES.—Each 

7 independent third party whose services are obtained by a 

8 mortgage servicer using amounts made available for use 

9 under this section shall— 

10 (1) initiate in-person contact with a mortgagor 

11 not later than 10 days after the date upon which pay12 ments under the covered mortgage of the mortgagor 

13 become 60 days past due; and 

14 (2) upon making in-person contact with a mort15 gagor, provide the mortgagor with a written docu16 ment that discloses— 

17 (A) the name of, and contact information 

18 for, the independent third party and the mort19 gage servicer; 

20 (B) that the independent third party has 

21 contracted with the mortgage servicer to provide 

22 the in-person contact at no charge to the mort23 gagor; 

24 (C) that the independent third party is an 

25 agent of the mortgage servicer; 


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1 (D) that the in-person contact with the 

2 mortgagor consists of providing information 

3 about available counseling by a housing coun4 seling agency approved by the Secretary and 

5 available mortgage loan modification, refinance, 

6 and assistance programs; 

7 (E) that the independent third party and 

8 the mortgage servicer are prohibited from the 

9 use, disclosure, or distribution of personal, non10 public, and confidential information about the 

11 mortgagor, obtained during the in-person con12 tact, except for purposes of engaging in the proc13 ess of modification or refinance of the covered 

14 mortgage; 

15 (F) any other information that the Sec16 retary determines should be disclosed. 

17 (e) DEFINITION OF COVERED MORTGAGE.—For pur18 poses of this section, the term ‘‘covered mortgage’’ means 

19 a mortgage on a 1- to 4-family residence insured under the 

20 provisions of subsection (b) or (k) of section 203, section 

21 234(c), or 251 of the National Housing Act (12 U.S.C. 

22 1709, 1715y, 1715z–16). 

23 SEC. 15. GAO REPORTS ON FHA AND GINNIE MAE. 

24 Not later than the expiration of the 12-month period 

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


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1 Comptroller General of the United States shall submit to 

2 the Congress the following reports: 

3 (1) FHA REPORT.—A report on the single fam4 ily mortgage insurance programs of the Secretary of 

5 Housing and Urban Development and the Mutual 

6 Mortgage Insurance Fund established under section 

7 202(a) of the National Housing Act (12 U.S.C. 

8 1708(a)) that— 

9 (A) analyzes such Fund, the economic net 

10 worth, capital ratio, and unamortized insurance11 in-force (as such terms are defined in section 

12 205(f)(4) of such Act (12 U.S.C. 1711(f)(4))) of 

13 such Fund, the risks to the Fund, how the cap14 ital ratio of the Fund affects the mortgage insur15 ance programs under the Fund and the broader 

16 housing market, the extent to which the housing 

17 markets are more dependent on mortgage insur18 ance provided through the Fund since the finan19 cial crisis began in 2008, and the exposure of the 

20 taxpayers for obligations of the Fund; 

21 (B) analyzes the methodology of the capital 

22 ratio for the Fund under section 205(f) of such 

23 Act and examines other alternative methodologies 

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1 propriate to meet the operational goals of the 

2 Fund under section 202(a)(7); 

3 (C) analyzes the effects of the increases in 

4 the limits on the maximum principal obligation 

5 of mortgages made by the FHA Modernization 

6 Act of 2008 (title I of division B of Public Law 

7 110–289), section 202 of the Economic Stimulus 

8 Act of 2008 (Public Law 110–185; 122 Stat. 

9 620), section 1202 of division A of the American 

10 Recovery and Reinvestment Act of 2009 (Public 

11 Law 111–5; 123 Stat. 225), and section 166 of 

12 the Continuing Appropriations Resolution, 2010 

13 (as added by section 104 of division B of Public 

14 Law 111–88; 123 Stat. 29723) on— 

15 (i) the risks to and safety and sound16 ness of the Fund; 

17 (ii) the impact on the affordability and 

18 availability of mortgage credit for borrowers 

19 for loans authorized under such higher loan 

20 limits; 

21 (iii) the private market for residential 

22 mortgage loans that are not insured by the 

23 Secretary of Housing and Urban Develop24 ment; and 


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1 (iv) the Federal National Mortgage As2 sociation and the Federal Home Loan Mort3 gage Corporation; and 

4 (D) analyzes the impact on affordability to 

5 FHA borrowers, and the impact to the Fund, of 

6 seller concessions or contributions to a borrower 

7 purchasing a residence using a mortgage that is 

8 insured by the Secretary. 

9 (2) GINNIE MAE.—A report on the Government 

10 National Mortgage Association that identifies— 

11 (A) the volume and share of the residential 

12 mortgage market that consists of mortgages that 

13 back securities for which the payment for prin14 cipal and interest is guaranteed by such Associa15 tion and how the Association has been affected 

16 by the economic recession, credit crisis, and 

17 downturn in the housing markets occurring dur18 ing 2008, 2009, and 2010; 

19 (B) the capacity of the Association to man20 age the volume of business it conducts and secu21 rities it guarantees, particularly with regard to 

22 the recent dramatic increase in such volume, in23 cluding the ability of the Association to conduct 

24 appropriate oversight of contractors and issuers 

25 of securities for which the payment of principal 


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1 and interest is guaranteed by the Association 

2 and to determine whether the characteristics of 

3 various mortgage products constitute appro4 priate collateral for the federally guaranteed se5 curities for which payment of principal and in6 terest is guaranteed by such Association; 

7 (C) the impacts, if any, resulting from such 

8 increased volume of business conducted by the 

9 Association and securities it guarantees and the 

10 challenges such increased volume poses to the in11 ternal controls of the Association; and 

12 (D) the existing capital net worth require13 ments for aggregators of mortgages that issue se14 curities that are based on or backed by such 

15 mortgages and payment of principal and inter16 est on which is guaranteed by such Association 

17 and recommends an appropriate required level of 

18 net worth for such aggregators and issuers to 

19 protect the financial interests of the Federal Gov20 ernment and the taxpayers. 


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Union Calendar No. 270 

111TH CONGRESS 

2D SESSION H. R. 5072 

[Report No. 111–476] 

A BILL 

To improve the financial safety and soundness of 

the FHA mortgage insurance program. 

MAY 6, 2010 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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