IIB 
112TH CONGRESS 
2D SESSION 
H. R. 4264 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 12, 2012 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To help ensure the fiscal solvency of the FHA mortgage 
insurance programs of the Secretary of Housing and 
Urban Development, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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HR 4264 RFS 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘FHA Emergency Fiscal Solvency Act of 2012’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
Sec. 2. FHA annual mortgage insurance premiums. 
Sec. 3. Indemnification by FHA mortgagees. 
Sec. 4. Early period delinquencies. 
Sec. 5. Semiannual actuarial studies of MMIF during periods of capital deple-
tion. 
Sec. 6. Delegation of FHA insuring authority. 
Sec. 7. Authority to terminate FHA mortgagee origination and underwriting 
approval. 
Sec. 8. Authorization to participate in the origination of FHA-insured loans. 
Sec. 9. Reporting of mortgagee actions taken against other mortgagees. 
Sec. 10. Default and origination information by loan servicer and originating 
direct endorsement lender. 
Sec. 11. Deputy Assistant Secretary of FHA for Risk Management and Regu-
latory Affairs. 
Sec. 12. Establishment of Chief Risk Officer for GNMA. 
Sec. 13. Report on mortgage servicers. 
Sec. 14. FHA emergency capital plan. 
Sec. 15. FHA safety and soundness review. 
Sec. 16. FHA disclosure standards. 
Sec. 17. Report on streamlining FHA programs. 
Sec. 18. Budget compliance. 
SEC. 2. FHA ANNUAL MORTGAGE INSURANCE PREMIUMS. 
(a) IN GENERAL.—Subparagraph (B) of section 
203(c)(2) of the National Housing Act (12 U.S.C. 
1709(c)(2)(B)) is amended— 
(1) in the matter preceding clause (i)— 
(A) by striking ‘‘may’’ and inserting 
‘‘shall’’; 
(B) by striking ‘‘not exceeding 1.5 per-
cent’’ and inserting ‘‘not less than 0.55 per-
cent’’; and 
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(C) by inserting ‘‘and not exceeding 2.0 
percent of such remaining insured principal bal-
ance’’ before ‘‘for the following periods:’’; and 
(2) in clause (ii), by striking ‘‘1.55 percent’’ 
and inserting ‘‘2.05 percent’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) take effect upon the expiration of the 6- 
month period beginning on the date of the enactment of 
this Act. 
SEC. 3. INDEMNIFICATION BY FHA MORTGAGEES. 
Section 202 of the National Housing Act (12 U.S.C. 
1708) is amended by adding at the end the following new 
subsection: 
‘‘(i) INDEMNIFICATION BY MORTGAGEES.— 
‘‘(1) IN GENERAL.—If the Secretary determines 
that the mortgagee knew, or should have known, of 
a serious or material violation of the requirements 
established by the Secretary with respect to a mort-
gage executed by a mortgagee approved by the Sec-
retary under the direct endorsement program or in-
sured by a mortgagee pursuant to the delegation of 
authority under section 256 such that the mortgage 
loan should not have been approved and endorsed 
for insurance, and the Secretary pays an insurance 
claim with respect to the mortgage within a reason-
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HR 4264 RFS 
able period specified by the Secretary, the Secretary 
may require the mortgagee approved by the Sec-
retary under the direct endorsement program or the 
mortgagee delegated authority under section 256 to 
indemnify the Secretary for the loss, irrespective of 
whether the violation caused the mortgage default. 
‘‘(2) 
FRAUD
OR
MISREPRESENTATION.—If 
fraud or misrepresentation was involved in connec-
tion with the origination or underwriting and the 
Secretary determines that the mortgagee knew or 
should have known of the fraud or misrepresenta-
tion, the Secretary shall require the mortgagee ap-
proved by the Secretary under the direct endorse-
ment program or the mortgagee delegated authority 
under section 256 to indemnify the Secretary for the 
loss regardless of when an insurance claim is paid. 
‘‘(3) APPEALS PROCESS.—The Secretary shall, 
by regulation, establish an appeals process for mort-
gagees to appeal indemnification determinations 
made pursuant to paragraph (1) or (2). 
‘‘(4) REQUIREMENTS AND PROCEDURES.—The 
Secretary shall issue regulations establishing appro-
priate requirements and procedures governing the 
indemnification of the Secretary by the mortgagee, 
including public reporting on— 
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‘‘(A) the number of loans that— 
‘‘(i) were not originated or under-
written in accordance with the require-
ments established by the Secretary; and 
‘‘(ii) involved fraud or misrepresenta-
tion in connection with the origination or 
underwriting; and 
‘‘(B) the financial impact on the Mutual 
Mortgage Insurance Fund when indemnification 
is required.’’. 
SEC. 4. EARLY PERIOD DELINQUENCIES. 
Subsection (a) of section 202 of the National Hous-
ing Act (12 U.S.C. 1708(a)) is amended by adding at the 
end the following new paragraphs: 
‘‘(8) PROGRAMMATIC
REVIEW
OF
EARLY
PE-
RIOD DELINQUENCIES.—The Secretary shall estab-
lish and maintain a program— 
‘‘(A) to review the cause of each early pe-
riod delinquency on a mortgage that is an obli-
gation of the Mutual Mortgage Insurance Fund; 
‘‘(B) to require indemnification of the Sec-
retary for a loss associated with any such early 
period delinquency that is the result of a mate-
rial violation, as determined by the Secretary, 
of any provision, regulation, or other guideline 
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