SEC. 2. TEMPORARY AUTHORITY FOR MORTGAGE BROKERS 
AND LENDERS TO PARTICIPATE IN FHA SIN-
GLE FAMILY MORTGAGE INSURANCE PRO-
GRAM 
THROUGH 
DIRECT 
ENDORSEMENT 
LENDERS. 
Section 202 of the Economic Stimulus Act of 2008 
(Public Law 110–185; 122 Stat. 620) is amended by add-
ing at the end the following new subsection: 
‘‘(d) TEMPORARY MORTGAGE BROKER AND LENDER 
PARTICIPATION THROUGH DIRECT ENDORSEMENT LEND-
ERS.— 
‘‘(1) AUTHORITY.—The Secretary of Housing 
and Urban Development shall provide for mortgage 
brokers who close mortgages in their own names or 
in the names of other lenders, but who do not under-
write or service the mortgage, and other lenders not 
otherwise authorized to participate as mortgagees 
under title II of the National Housing Act (12 
U.S.C. 1707 et seq.), to participate as mortgagees in 
the single family housing mortgage insurance pro-
grams under such title II, but only to the extent 
that— 
‘‘(A) the insurance of a mortgage under 
such title II made by any such broker or lender 
is performed by a lender— 
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‘‘(i) who is authorized by the Sec-
retary of Housing and Urban Development 
to process mortgages as a direct endorse-
ment mortgagee; and 
‘‘(ii) who has a compare ratio, as such 
term is defined for purposes of the Neigh-
borhood Watch system for monitoring 
lender and appraiser performance under 
programs of the Department of Housing 
and Urban Development, that is less than 
or equal to the national average; and 
‘‘(B) the mortgage broker or lender— 
‘‘(i)(I) is licensed, under the laws of 
the State in which the property that is 
subject to the mortgage is located, to act 
as a mortgage broker or lender in such 
State; or 
‘‘(II) is an insured depository institu-
tion, as such term defined in section 3 of 
the Federal Deposit Insurance Act (12 
U.S.C. 1813),
or an insured credit union, 
as such term is defined in section 101 of 
the Federal Credit Union Act (12 U.S.C. 
1752); and 
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‘‘(ii) certifies to the direct endorse-
ment mortgagee insuring mortgages for 
such broker or lender that the broker or 
lender has submitted an application for 
participation as a mortgagee in such single 
family housing insurance programs, except 
that the broker or lender shall not be re-
quired to have complied with the require-
ments for such applications regarding sub-
mission of an audited financial statement. 
‘‘(2) SUNSET.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), this subsection shall not 
apply to any mortgage for which credit approval 
for the borrower is issued after December 31, 
2008. 
‘‘(B) 
EXTENSION.—The 
Secretary 
of 
Housing and Urban Development may extend 
the authority under this subsection for a period 
not longer than 6 months by causing notice of 
such extension to be published in the Federal 
Register before December 31, 2008.’’. 
Æ 
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