§ 1711.
(f)
Capital ratio for Mutual Mortgage Insurance Fund
(1)
The Secretary shall ensure that the Mutual Mortgage Insurance Fund attains a capital ratio of not less than 1.25 percent within 24 months after November 5, 1990, and maintains such ratio thereafter, subject to paragraph (2).
(2)
The Secretary shall endeavor to ensure that the Mutual Mortgage Insurance Fund attains a capital ratio of not less than 2.0 percent within 10 years after November 5, 1990, and shall ensure that the Fund maintains at least such capital ratio at all times thereafter.
(3)
Upon the expiration of the 24-month period beginning on November 5, 1990, the Secretary shall submit to the Congress a report describing the actions the Secretary will take to ensure that the Mutual Mortgage Insurance Fund attains the capital ratio required under paragraph (2).
(4)
For purposes of this subsection:
(A)
The term “capital” means the economic net worth of the Mutual Mortgage Insurance Fund, as determined by the Secretary under the annual audit required under
section 1735f–16 of this title.
(B)
The term “capital ratio” means the ratio of capital to unamortized insurance-in-force.
(C)
The term “economic net worth” means the current cash available to the Fund, plus the net present value of all future cash inflows and outflows expected to result from the outstanding mortgages in the Fund.
(D)
The term “unamortized insurance-in-force” means the remaining obligation on outstanding mortgages which are obligations of the Mutual Mortgage Insurance Fund, as estimated by the Secretary.
([June 27, 1934, ch. 847], title II, § 205, [48 Stat. 1250]; [May 28, 1935, ch. 150, § 29(b)], [49 Stat. 300]; [Feb. 3, 1938, ch. 13, § 3], [52 Stat. 15]; [June 3, 1939, ch. 175, § 11], [53 Stat. 807]; [Apr. 20, 1950, ch. 94], title I, § 122, [64 Stat. 59]; [June 30, 1953, ch. 170, § 4], [67 Stat. 122]; [Aug. 2, 1954, ch. 649], title I, § 114, [68 Stat. 594]; [Pub. L. 90–19, § 1(a)(3)], May 25, 1967, [81 Stat. 17]; [Pub. L. 101–508, title II], §§ 2104, 2105, Nov. 5, 1990, [104 Stat. 1388–19]; [Pub. L. 102–550, title V, § 508(a)], Oct. 28, 1992, [106 Stat. 3782]; [Pub. L. 110–289, div. B, title I, § 2118(c)(1)], July 30, 2008, [122 Stat. 2835].)