SEC. 6. DEPUTY ASSISTANT SECRETARY OF FHA FOR RISK 
MANAGEMENT AND REGULATORY AFFAIRS. 
(a) ESTABLISHMENT OF POSITION.—Subsection (b) of 
section 4 of the Department of Housing and Urban Develop-
ment Act (42 U.S.C. 3533(b)) is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) There shall be in the Department, within the Fed-
eral Housing Administration, a Deputy Assistant Secretary 
for Risk Management and Regulatory Affairs, who shall be 
appointed by the Secretary and shall be responsible to the 
Federal Housing Commissioner for all matters relating to 
managing and mitigating risk to the mortgage insurance 
funds of the Department and ensuring the performance of 
mortgages insured by the Department.’’. 
(b) TERMINATION.—Upon the appointment and con-
firmation of the initial Deputy Assistant Secretary for Risk 
Management and Regulatory Affairs pursuant to section 
4(b)(2) of the Department of Housing and Urban Develop-
ment Act, as amended by subsection (a) of this section, the 
position of chief risk officer within the Federal Housing Ad-
ministration, filled by appointment by the Federal Housing 
Commissioner, is abolished. 
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SEC. 7. USE OF OUTSIDE CREDIT RISK ANALYSIS SOURCES. 
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) USE
OF
OUTSIDE
CREDIT
RISK
ANALYSIS 
SOURCES.—The Secretary may obtain the services of, and 
enter into contracts with, private and other entities outside 
of the Department in— 
‘‘(1) analyzing credit risk models and practices 
employed by the Department in connection with such 
mortgages; 
‘‘(2) evaluating underwriting standards applica-
ble to such mortgages insured by the Department; and 
‘‘(3) analyzing the performance of lenders in 
complying with, and the Department in enforcing, 
such underwriting standards.’’. 
SEC. 8. REVIEW OF MORTGAGEE PERFORMANCE. 
Section 533 of the National Housing Act (12 U.S.C. 
1735f–11) is amended— 
(1) in subsection (a), by inserting after the pe-
riod at the end the following: ‘‘For purposes of this 
subsection, the term ‘early default’ means a default 
that occurs within 24 months after a mortgage is 
originated or such alternative appropriate period as 
the Secretary shall establish.’’; 
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(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 ge-
ographic area or areas.’’; and 
(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 
2010 through 2014 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 Mortgage Insurance 
Fund. 
‘‘(e) REPORTING TO CONGRESS.—Not later than 90 
days after the date of enactment of the FHA Reform Act 
of 2010 and not less often than annually thereafter, the Sec-
retary shall make available to the Committee on Financial 
Services of the House of Representatives and the Committee 
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