HR 4811 – FHA Safety and Soundness and Taxpayer Protection Act of 2010 Introduced March 10, 2010 • Formalizes a Deputy Assistant Secretary for Risk Management • Ability to enter contracts with private companies to analyze credit risk • Increase annual premium up to 1.75% on the remaining insured principal balance • Implements a ‘flexible risk based premium pilot program’ for first time homebuyers. It is an UFMIP, monthly or combination not restricted by other parts of the regulation and may fluctuate during the life of the loan. Will be carried out nationwide over a three year period. Can’t exceed 5% of aggregate number of mortgages or 150k units. • Give HUD Secretary the ability to suspend mortgagees by geographic region or the entire company • 90 new employees • Indemnifications will extend to all DE lenders. • Use of the SAFE Act identifier as a tracking mechanism • Lenders must notify HUD within 15 days if they take action of any kind against an origination entity. • It changes the working to require default monitoring of servicers and DE lenders only • A study ion the impact to the fund related to seller concessions is required. The results are due in one year. So, do we have a reprieve on seller concessions dropping to 3% for a little while? • Ginnie Mae impact study This bill will get legs!