I 
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 Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘GSE Subsidy Elimi-
nation 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 
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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 Di-
rector shall require each enterprise to charge a guarantee 
fee in connection with any guarantee, issued by the enter-
prise on or after the expiration of the 2-year period begin-
ning 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 mort-
gages 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 com-
pliance 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 speci-
fied 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; 
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‘‘(2) provide for adjustments in pricing based 
on risk levels; and 
‘‘(3) take into consideration conditions in finan-
cial markets. 
‘‘(c) DEFINITION OF GUARANTEE FEE.—For pur-
poses 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 mort-
gage-backed securities; and 
‘‘(2) the management and guarantee fee 
charged by the Federal Home Loan Mortgage Cor-
poration with respect to participation certificates.’’. 
Æ 
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