12 USC 4547 - Enterprise guarantee fees

U.S Code last checked for updates: Nov 22, 2024

§ 4547.

Enterprise guarantee fees

(a)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Guarantee fee

The term “guarantee fee”—

(A)

means a fee described in subsection (b); and

(B)

includes—

(i)

the guaranty fee charged by the Federal National Mortgage Association with respect to mortgage-backed securities; and

(ii)

the management and guarantee fee charged by the Federal Home Loan Mortgage Corporation with respect to participation certificates.

(2)

Average fees

(b)

Increase

(1)

In general

(A)

Phased increase required

(B)

Amount

(2)

Authority to limit offer of guarantee

The Director shall prohibit an enterprise from consummating any offer for a guarantee to a lender for mortgage-backed securities, if—

(A)

the guarantee is inconsistent with the requirements of this section; or

(B)

the risk of loss is allowed to increase, through lowering of the underwriting standards or other means, for the primary purpose of meeting the requirements of this section.

(3)

Deposit in Treasury

(c)

Phase-in

(1)

In general

The Director may provide for compliance with subsection (b) by allowing each enterprise to increase the guarantee fee charged by the enterprise gradually over the 2-year period beginning on December 23, 2011, in a manner sufficient to comply with this section. In determining a schedule for such increases, the Director shall—

(A)

provide for uniform pricing among lenders;

(B)

provide for adjustments in pricing based on risk levels; and

(C)

take into consideration conditions in financial markets.

(2)

Rule of construction

(d)

Information collection and annual analysis

The Director shall require each enterprise to provide to the Director, as part of its annual report submitted to Congress—

(1)

a description of—

(A)

changes made to up-front fees and annual fees as part of the guarantee fees negotiated with lenders;

(B)

changes to the riskiness of the new borrowers compared to previous origination years or book years; and

(C)

any adjustments required to improve for future origination years or book years, in order to be in complete compliance with subsection (b); and

(2)

an assessment of how the changes in the guarantee fees described in paragraph (1) met the requirements of subsection (b).

(e)

Enforcement

(1)

Required adjustments

(2)

Noncompliance penalty

(3)

Rule of construction

(f)

Expiration

(Pub. L. 102–550, title XIII, § 1327, as added Pub. L. 112–78, title IV, § 401, Dec. 23, 2011, 125 Stat. 1287; Pub. L. 117–58, div. I, § 90005, Nov. 15, 2021, 135 Stat. 1346.)

cite as: 12 USC 4547