Sec. 533. Review of Mortgagee Performance and Authority to Terminate

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## Sec. 533 Review of Mortgagee Performance and Authority to Terminate **[**[12 U.S.C. 1735f–11](/us/usc/t12/s1735f–11)**]** ###

(a)Periodic Review of Mortgagee Performance To reduce losses in connection with single family mortgage insurance programs under this Act, at least once a year the Secretary shall review the rate of early defaults and claims for insured single family mortgages originated or underwritten by each mortgagee. ###

(b)Comparison With Other Mortgagees For each mortgagee, the Secretary shall compare the rate of early defaults and claims for insured single family mortgage loans originated or underwritten by the mortgagee in an area with the rate of early defaults and claims for other mortgagees originating or underwriting insured single family mortgage loans in the area. For purposes of this section, the term “**area**” means each geographic area in which the mortgagee is authorized by the Secretary to originate insured single family mortgages. ###

(c)Termination of Mortgagee Origination Approval ####

(1)Notwithstanding section 202(c) of this Act, 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. The determination shall be based on the comparison required under subsection

(b)and shall be made in accordance with regulations of the Secretary. The Secretary may rely on existing regulations published before this section takes effect.127 127Section 209 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2002, Pub. L. 107–73, 115 Stat. 675, amended this section in its entirety. Such Act was approved on November 26, 2001. ####

(2)The Secretary shall give a mortgagee at least 60 days prior written notice of any termination under this subsection. The termination shall take effect at the end of the notice period, unless the Secretary withdraws the termination notice or extends the notice period. If requested in writing by the mortgagee within 30 days of the date of the notice, the mortgagee shall be entitled to an informal conference with the official authorized to issue termination notices on behalf of the Secretary (or a designee of that official). At the informal conference, the mortgagee may present for consideration specific factors that it believes were beyond its control and that caused the excessive default and claim rate.

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12 USC 1735f–11
Pub. L. 107-73
115 Stat. 675

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Sec. 533

Review of Mortgagee Performance and Authority to Terminate

Cite12 USC 1735f–11

Pub. L.Pub. L. 107-73

Stat.115 Stat. 675

Cites 3Cited by 0 across 0 sources