Page:United States Statutes at Large Volume 122.djvu/2857

 12 2 STA T . 2 834PUBLIC LA W 11 0– 28 9—J UL Y 30, 2008 shal l recom me nd ad ju s t ments to under w r i tin g standards ,p ro - gram participation, or premiums, i f necessar y , to ensure that the F und remains financially sound .T he report shall also include an e v aluation of the q uality control procedures and accuracy of information utili z ed in the process of underwriting loans guaranteed b y the Fund. S uch evaluation shall include a review of the ris k characteristics of loans based not only on borrower information and performance, but on risks associ- ated with loans originated or funded by various entities or financial institutions. ‘ ‘ (5)QUARTE R LY RE PO RT S . —D uring each fiscal year, the Secretary shall submit a report to the C ongress for each cal- endar quarter, which shall specify for mortgages that are obliga- tions of the Fund— ‘‘( A ) the cumulative volume of loan guarantee commit- ments that have been made during such fiscal year through the end of the quarter for which the report is submitted ‘‘( B ) the types of loans insured, categorized by risk; ‘‘(C) any significant changes between actual and pro- jected claim and prepayment activity; ‘‘(D) projected versus actual loss rates; and ‘‘( E ) updated projections of the annual subsidy rates to ensure that increases in risk to the Fund are identified and mitigated by adjustments to underwriting standards, program participation, or premiums, and the financial soundness of the Fund is maintained. The first quarterly report under this paragraph shall be sub- mitted on the last day of the first quarter of fiscal year 20 0 8, or on the last day of the first full calendar quarter following the enactment of the Building American H omeownership Act of 2008, whichever is later. ‘‘( 6 )A DJ UST M E N TO F PREM I UMS.— I f, pursuant to the inde- pendent actuarial study of the Fund required under paragraph ( 4 ), the Secretary determines that the Fund is not meeting the operational goals established under paragraph ( 7 ) or there is a substantial probability that the Fund will not maintain its established target subsidy rate, the Secretary may either make programmatic adjustments under this title as necessary to reduce the risk to the Fund, or make appropriate premium adjustments. ‘‘(7) O PERATIONAL G OALS.—The operational goals for the Fund are— ‘‘(A) to minimize the default risk to the Fund and to homeowners by among other actions instituting fraud prevention quality control screening not later than 1 8 months after the date of enactment of the Building Amer- ican Homeownership Act of 2008; and ‘‘(B) to meet the housing needs of the borrowers that the single family mortgage insurance program under this title is designed to serve. ’ ’. (b) O B LIGATIONS OF FUND.—The N ational Housing Act is amended as follows

(1) HOMEO W NERS H IP V OU C HER PROGRAM MORTGAGES.—In section 20 3 (v) (12 U .S.C. 170 9 (v))— (A) by striking ‘‘Notwithstanding section 202 of this title, the’’ and inserting ‘‘The’’; and Deadlin e . Deadline.

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