originated or such alternative appropriate period as 
the Secretary shall establish.’’; 
(2) in subsection (b), by inserting after the pe-
riod at the end of the first sentence the following: 
‘‘The Secretary shall also identify which mortgagees 
have had a significant or rapid increase, as deter-
mined by the Secretary, in the number or percentage 
of early defaults and claims on such mortgages, with 
respect to all mortgages originated by the mortgagee 
or mortgages on housing located in any particular 
geographic area or areas.’’ 
(3) by adding at the end the following new sub-
sections: 
‘‘(d) SUFFICIENT RESOURCES.—There is authorized 
to be appropriated to the Secretary for each of fiscal years 
2012 through 2016 the amount necessary to provide addi-
tional full-time equivalent positions for the Department, 
or for entering into such contracts as are necessary, to 
conduct reviews in accordance with the requirements of 
this section and to carry out other responsibilities relating 
to ensuring the safety and soundness of the Mutual Mort-
gage Insurance Fund. 
‘‘(e) REPORTING TO CONGRESS.—Not later than 90 
days after the date of enactment of the FHA Reform Act 
of 2011 and not less often than annually thereafter, the 
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Secretary shall make available to the Committee on Finan-
cial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate any information and conclusions pursuant to 
the reviews required under subsection (a). Such report 
shall not include detailed information on the performance 
of individual mortgages.’’. 
SEC. 7. COORDINATION WITH STATE REGULATORY AGEN-
CIES. 
Section 202 of the National Housing Act (12 U.S.C. 
1708), as amended by the preceding provisions of this Act, 
is further amended by adding at the end the following new 
subsection: 
‘‘(j) INFORMATION SHARING WITH STATE REGU-
LATORY AGENCIES.— 
‘‘(1) JOINT PROTOCOL ON INFORMATION SHAR-
ING.—The Secretary shall, through consultation with 
State regulatory agencies, pursue protocols for infor-
mation sharing, including the appropriate treatment 
of confidential or otherwise restricted information, 
regarding either actions described in subsection 
(c)(3) of this section or disciplinary or enforcement 
actions by a State regulatory agency or agencies 
against a mortgagee (as such term is defined in sub-
section (c)(7)). 
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‘‘(2) COORDINATION.—To the greatest extent 
possible, the Secretary and appropriate State regu-
latory agencies shall coordinate disciplinary and en-
forcement actions involving mortgagees (as such 
term is defined in subsection (c)(7)).’’. 
SEC. 8. REPORTING OF MORTGAGEE ACTIONS TAKEN 
AGAINST OTHER MORTGAGEES. 
Section 202 of the National Housing Act (12 U.S.C. 
1708(e)), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new subsection: 
‘‘(k) NOTIFICATION OF MORTGAGEE ACTIONS.—The 
Secretary shall require each mortgagee, as a condition for 
approval by the Secretary to originate or underwrite mort-
gages on single family or multifamily housing that are in-
sured by the Secretary, if such mortgagee engages in the 
purchase of mortgages insured by the Secretary and origi-
nated by other mortgagees or in the purchase of the serv-
icing rights to such mortgages, and such mortgagee at any 
time takes action to terminate or discontinue such pur-
chases from another mortgagee based on any determina-
tion, evidence, or report of fraud or material misrepresen-
tation in connection with the origination of such mort-
gages, the mortgagee shall, not later than 15 days after 
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taking such action, shall notify the Secretary of the action 
taken and the reasons for such action.’’. 
SEC. 9. REVIEW OF DOWNPAYMENT REQUIREMENTS. 
Section 205 of the National Housing Act (12 U.S.C. 
1711) is amended by adding at the end the following new 
subsection: 
‘‘(g) REVIEW OF DOWNPAYMENT REQUIREMENTS.— 
If, at any time when the capital ratio (as such term is 
defined in subsection (f)) of the Mutual Mortgage Insur-
ance Fund does not comply with the requirement under 
subsection (f)(2), the Secretary establishes a cash invest-
ment requirement, for all mortgages or mortgagors or with 
respect to any group of mortgages or mortgagors, that ex-
ceeds the minimum percentage or amount required under 
section 203(b)(9), thereafter upon the capital ratio first 
complying with the requirement under subsection (f)(2) 
the Secretary shall review such cash investment require-
ment and, if the Secretary determines that such percent-
age or amount may be reduced while maintaining such 
compliance, the Secretary may subsequently reduce such 
requirement by such percentage or amount as the Sec-
retary considers appropriate.’’. 
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SEC. 10. AUTHORIZATION TO PARTICIPATE IN THE ORIGI-
NATION OF FHA-INSURED LOANS. 
(a) SINGLE FAMILY MORTGAGES.—Section 203(b) of 
the National Housing Act (12 U.S.C. 1709(b)) is amended 
by striking paragraph (1) and inserting the following new 
paragraph: 
‘‘(1) Have been made to a mortgagee approved 
by the Secretary or to a person or entity authorized 
by the Secretary under section 202(d)(1) to partici-
pate in the origination of the mortgage, and be held 
by a mortgagee approved by the Secretary as re-
sponsible and able to service the mortgage prop-
erly.’’. 
(b) HOME EQUITY CONVERSION MORTGAGES.—Sec-
tion 255(d) of the National Housing Act (12 U.S.C. 
1715z–20(d)) is amended by striking paragraph (1) and 
inserting the following new paragraph: 
‘‘(1) have been originated by a mortgagee ap-
proved by, or by a person or entity authorized under 
section 202(d)(1) to participate in the origination 
by, the Secretary;’’. 
SEC. 11. DEFAULT AND ORIGINATION INFORMATION BY 
LOAN SERVICER AND ORIGINATING DIRECT 
ENDORSEMENT LENDER. 
(a) COLLECTION OF INFORMATION.—Paragraph (2) 
of section 540(b) of the National Housing Act (12 U.S.C. 
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