delivery fees and loan level price adjustments, com-
mensurate with the enterprises’ reduced credit risk 
resulting from any new risk-transfer transaction 
under the pilot program. 
(c) REPORT.—Not later than the conclusion of the 
fifth year of the pilot program, the Director shall submit 
a report to the Congress that assesses the extent to which 
the pilot program under this section has— 
(1) transferred credit risk from the Federal 
Government to the private sector; 
(2) resulted in reduced guarantee fees for mort-
gage originators; and 
(3) produced benefits or costs for borrowers 
under qualifying loans under the program. 
(d) EXTENSION OF PROGRAM.—Based on the assess-
ments in the report required under subsection (c), the Di-
rector may extend the program beyond its fifth year of 
operation if the Director determines that such extension 
would be in the public interest. 
(e) MITIGATING COUNTERPARTY RISK.—Nothing in 
this section shall prevent the Director from establishing 
additional requirements on participants in the pilot pro-
gram necessary to mitigate counterparty risk to the enter-
prises comparably with other credit risk-transfer struc-
tures. 
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(f) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(2) ELIGIBLE
MORTGAGE
INSURANCE
PRO-
VIDER.—The term ‘‘eligible mortgage insurance pro-
vider’’ means a company that— 
(A) is regulated as a mortgage guaranty 
insurance company by its State of domicile; 
(B) provides qualifying mortgage insur-
ance; and 
(C) satisfies— 
(i)(I) minimum requirements estab-
lished or recognized by the Director, pur-
suant to public notice and comment, with 
respect to capital, leverage, and reserve re-
quirements, or 
(II) Private Mortgage Insurer Eligi-
bility Requirements published by the enter-
prises on April 17, 2015; and 
(ii) any additional requirements added 
by subsection (e) of this section. 
(3) ENTERPRISE.—The term ‘‘enterprise’’ has 
the meaning given such term in section 1303 of the 
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Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4502). 
(4) QUALIFYING LOAN.—The term ‘‘qualifying 
loan’’ means a first mortgage loan that— 
(A) is secured by a one-to-four family resi-
dence; and 
(B) is subject to qualifying mortgage in-
surance. 
(5) QUALIFYING MORTGAGE INSURANCE.—The 
term ‘‘qualifying mortgage insurance’’ means, with 
respect to a qualifying loan, primary mortgage guar-
anty insurance for such qualifying loan that— 
(A) is placed at the time the qualifying 
loan is originated; 
(B) guarantees or insures that portion of 
the unpaid principal balance of the qualifying 
loan that is in excess of 50 percent of the value 
of the property securing the mortgage; and 
(C) is provided by an eligible mortgage in-
surance provider. 
Æ 
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