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 
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 
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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 
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 
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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. 
‘‘(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; 
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‘‘(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 
shall require an enterprise to make adjustments in 
its guarantee fee in order to be in compliance with 
subsection (b). 
‘‘(2) NONCOMPLIANCE
PENALTY.—An enter-
prise that has been found to be out of compliance 
with subsection (b) for any 2 consecutive years shall 
be precluded from providing any guarantee for a pe-
riod, determined by rule of the Director, but in no 
case less than 1 year. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection shall be interpreted as preventing the 
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Director from initiating and implementing an en-
forcement action against an enterprise, at a time the 
Director deems necessary, under other existing en-
forcement authority. 
‘‘(f) EXPIRATION.—The provisions of this section 
shall expire on October 1, 2021.’’. 
SEC. 402. FHA GUARANTEE FEES. 
(a) AMENDMENT.—Section 203(c)(2) of the National 
Housing Act (12 U.S.C. 1709(c)(2)) is amended by adding 
at the end the following: 
‘‘(C)(i) In addition to the premiums under sub-
paragraphs (A) and (B), the Secretary shall estab-
lish and collect annual premium payments for any 
mortgage for which the Secretary collects an annual 
premium payment under subparagraph (B), in an 
amount described in clause (ii). 
‘‘(ii)(I) Subject to subclause (II), with respect 
to a mortgage, the amount described in this clause 
is 10 basis points of the remaining insured principal 
balance (excluding the portion of the remaining bal-
ance attributable to the premium collected under 
subparagraph (A) and without taking into account 
delinquent payments or prepayments). 
‘‘(II) During the 2-year period beginning on the 
date of enactment of this subparagraph, the Sec-
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