Sec. 4. Review of mortgagee performance

386 words·~2 min read·/bill/113/s/1376/is/section-4

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 533 of the National Housing Act ( 12 U.S.C. 1735f–11 ) is amended— by amending subsection

(a)to read as follows: To reduce losses in connection with single family mortgage insurance programs under this Act, at least once a year the Secretary shall review the mortgagees originating or underwriting insured single family mortgages. ; by amending subsection

(b)to read as follows: In conducting the review required under subsection (a), for each mortgagee the Secretary shall compare that mortgagee with other mortgagees originating or underwriting insured single family mortgages based on the rates of defaults and claims for insured single family mortgage loans originated or underwritten by that mortgagee. The Secretary may also compare that mortgagee with such other mortgagees based on— underwriting quality; geographic area served; or any commonly used factors the Secretary deems necessary for comparing mortgage default risk, provided that such comparison is of factors that the Secretary would expect to reduce the default risk of mortgages insured by the Secretary. In carrying out the comparisons required under paragraph (1), the Secretary shall implement such comparisons by regulation, notice, or mortgagee letter. ; and in subsection (c)— by striking paragraph

(1)and inserting the following: Notwithstanding section 202(c), the Secretary may terminate the approval of a mortgagee to originate or underwrite single family mortgages if the Secretary determines that the mortgage loans originated or underwritten by the mortgagee present an unacceptable risk to the insurance funds. For purposes of subparagraph (A), a mortgagee may present an unacceptable risk to the insurance funds based on— a comparison of any of the factors set forth in subsection (b); or a determination that the mortgagee engaged in fraud or misrepresentation. ; by redesignating paragraph

(2)as paragraph (3); by inserting after paragraph

(1)the following: The authority granted to the Secretary under paragraph

(1)shall— apply for any specified area or areas, or on a nationwide basis; and be made in accordance with any regulation, notice, or mortgagee letter issued by the Secretary. ; and in paragraph

(3)(as so redesignated)— by striking The Secretary shall give and inserting

(3); and Notice and right to informal conference .—The Secretary shall give in the fourth sentence, by striking excessive default and claim rate and inserting finding of an unacceptable risk to the insurance funds .

Connections1 off-index

1 reference not yet in our index

12 USC 1735f–11

Citation graph

cites case law

Sec. 4

Review of mortgagee performance

Cite12 USC 1735f–11

Cites 1Cited by 0 across 0 sources