Sec. 211. Approval of private mortgage insurers
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/bill/113/s/1217/rs/section-211A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Corporation shall develop, adopt, and publish standards for the approval by the Corporation of private mortgage insurers to provide private mortgage insurance on eligible mortgages. The standards required under paragraph
(1)shall include— the financial history and condition of the insurer; the adequacy of the insurer's capital structure, including whether the insurer has sufficient capital to cover the first loss insurance obligations it assumes under this Act and that might be incurred in a period of economic stress, including, but not limited to, any period of economic stress that would result in a 30 percent (or greater) national home price decline; the general character and fitness of the management of the insurer, including compliance history with Federal and State laws; the risk presented by such insurer to the Mortgage Insurance Fund; the adequacy of insurance and fidelity coverage of the insurer; a requirement that the insurer submit audited financial statements to the Director; and any other standard the Corporation determines necessary or appropriate. The Corporation shall establish an application process, in such form and manner and requiring such information as the Corporation may require, for the approval of private mortgage insurers under this section. The Corporation may approve any application made pursuant to paragraph
(1)provided the private mortgage insurer meets the standards adopted under subsection (a). The Corporation shall— publish in the Federal Register a list of newly approved private mortgage insurers; and maintain an updated list of approved private mortgage insurers on the website of the Corporation. The Corporation may review the status of any approved private mortgage insurer if the Corporation is notified of or becomes aware of any violation by the insurer of this Act or the rules promulgated pursuant to this Act. If the Corporation determines, in a review pursuant to paragraph (1), that an approved private mortgage insurer no longer meets the standards for approval, the Corporation may suspend or revoke the approved status of such insurer. The suspension or revocation of an approved private mortgage insurer's approved status under this paragraph shall have no effect on the status of any covered security. The Corporation shall— publish in the Federal Register a list of any approved private mortgage insurers who lost their approved status; and maintain an updated list of such insurers on the website of the Corporation. A private mortgage insurer who submits an application under subsection (b)(1) to become an approved private mortgage insurer may appeal a decision of the Corporation denying such application. An approved private mortgage insurer may appeal a decision of the Corporation suspending or revoking the approved status of such insurer. Any insurer who files an appeal under paragraph
(1)shall file the appeal with the Corporation not later than 90 days after the date on which the person receives notice of the decision of the Corporation being appealed. The Corporation shall make a final determination with respect to an appeal under paragraph
(1)not later than 180 days after the date on which the appeal is filed under paragraph (2). With respect to any eligible mortgage collateralizing a covered security insured under this Act, an approved private mortgage insurer may not provide insurance both— in satisfaction of the credit enhancement required under section 2(11)(C); and to cover the first loss position of private market holders of such covered security.