HR 3765 RDS
thorized for fiscal year 2011, and out of any money in 
the Treasury of the United States not otherwise appro-
priated, there are hereby appropriated such sums as may 
be necessary for such purpose. Grants and payments may 
be made pursuant to this authority through the applicable 
portion of the second quarter of fiscal year 2012 at the 
pro rata portion of the level provided for such activities 
through the second quarter of fiscal year 2011. 
TITLE IV—MORTGAGE FEES AND 
PREMIUMS 
SEC. 401. 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) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) GUARANTEE FEE.—The term ‘guarantee 
fee’— 
‘‘(A) means a fee described in subsection 
(b); and 
‘‘(B) includes— 
‘‘(i) the guaranty fee charged by the 
Federal National Mortgage Association 
VerDate Mar 15 2010 
00:07 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H3765.RDS
H3765
jbell on DSK7SPTVN1PROD with BILLS
HR 3765 RDS
with respect to mortgage-backed securities; 
and 
‘‘(ii) the management and guarantee 
fee charged by the Federal Home Loan 
Mortgage Corporation with respect to par-
ticipation certificates. 
‘‘(2) AVERAGE FEES.—The term ‘average fees’ 
means the average contractual fee rate of single- 
family guaranty arrangements by an enterprise en-
tered into during 2011, plus the recognition of any 
up-front cash payments over an estimated average 
life, expressed in terms of basis points. Such defini-
tion shall be interpreted in a manner consistent with 
the annual report on guarantee fees by the Federal 
Housing Finance Agency. 
‘‘(b) INCREASE.— 
‘‘(1) IN GENERAL.— 
‘‘(A) PHASED INCREASE REQUIRED.—Sub-
ject to subsection (c), the Director shall require 
each enterprise to charge a guarantee fee in 
connection with any guarantee of the timely 
payment of principal and interest on securities, 
notes, and other obligations based on or backed 
by mortgages on residential real properties de-
signed principally for occupancy of from 1 to 4 
VerDate Mar 15 2010 
00:07 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H3765.RDS
H3765
jbell on DSK7SPTVN1PROD with BILLS
HR 3765 RDS
families, consummated after the date of enact-
ment of this section. 
‘‘(B) AMOUNT.—The amount of the in-
crease required under this section shall be de-
termined by the Director to appropriately re-
flect the risk of loss, as well the cost of capital 
allocated to similar assets held by other fully 
private regulated financial institutions, but such 
amount shall be not less than an average in-
crease of 10 basis points for each origination 
year or book year above the average fees im-
posed in 2011 for such guarantees. The Direc-
tor shall prohibit an enterprise from offsetting 
the cost of the fee to mortgage originators, bor-
rowers, and investors by decreasing other 
charges, fees, or premiums, or in any other 
manner. 
‘‘(2) AUTHORITY TO LIMIT OFFER OF GUAR-
ANTEE.—The Director shall prohibit an enterprise 
from consummating any offer for a guarantee to a 
lender for mortgage-backed securities, if— 
‘‘(A) the guarantee is inconsistent with the 
requirements of this section; or 
‘‘(B) the risk of loss is allowed to increase, 
through lowering of the underwriting standards 
VerDate Mar 15 2010 
00:07 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H3765.RDS
H3765
jbell on DSK7SPTVN1PROD with BILLS
HR 3765 RDS
or other means, for the primary purpose of 
meeting the requirements of this section. 
‘‘(3) DEPOSIT
IN
TREASURY.—Amounts re-
ceived from fee increases imposed under this section 
shall be deposited directly into the United States 
Treasury, and shall be available only to the extent 
provided in subsequent appropriations Acts. The fees 
charged pursuant to this section shall not be consid-
ered a reimbursement to the Federal Government 
for the costs or subsidy provided to an enterprise. 
‘‘(c) PHASE-IN.— 
‘‘(1) IN GENERAL.—The Director may provide 
for compliance with subsection (b) by allowing each 
enterprise to increase the guarantee fee charged by 
the enterprise gradually over the 2-year period be-
ginning on the date of enactment of this section, in 
a manner sufficient to comply with this section. In 
determining a schedule for such increases, the Direc-
tor shall— 
‘‘(A) provide for uniform pricing among 
lenders; 
‘‘(B) provide for adjustments in pricing 
based on risk levels; and 
‘‘(C) take into consideration conditions in 
financial markets. 
VerDate Mar 15 2010 
00:07 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H3765.RDS
H3765
jbell on DSK7SPTVN1PROD with BILLS
HR 3765 RDS
‘‘(2) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be interpreted to undermine the 
minimum increase required by subsection (b). 
‘‘(d) INFORMATION
COLLECTION
AND
ANNUAL 
ANALYSIS.—The Director shall require each enterprise to 
provide to the Director, as part of its annual report sub-
mitted to Congress— 
‘‘(1) a description of— 
‘‘(A) changes made to up-front fees and 
annual fees as part of the guarantee fees nego-
tiated with lenders; 
‘‘(B) changes to the riskiness of the new 
borrowers compared to previous origination 
years or book years; and 
‘‘(C) any adjustments required to improve 
for future origination years or book years, in 
order to be in complete compliance with sub-
section (b); and 
‘‘(2) an assessment of how the changes in the 
guarantee fees described in paragraph (1) met the 
requirements of subsection (b). 
‘‘(e) ENFORCEMENT.— 
‘‘(1) REQUIRED ADJUSTMENTS.—Based on the 
information from subsection (d) and any other infor-
mation the Director deems necessary, the Director 
VerDate Mar 15 2010 
00:07 Dec 24, 2011
Jkt 019200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H3765.RDS
H3765
jbell on DSK7SPTVN1PROD with BILLS