---
kind: "section"
citation: "12 U.S.C. § 4547"
title: "12"
title_heading: "Banks and Banking"
number: "4547"
heading: "Enterprise guarantee fees"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/4547"
units:
  - "Chapter 46 — Government Sponsored Enterprises"
  - "Subchapter I — Supervision and Regulation of Enterprises"
  - "Part B — Additional Authorities of the Director"
  - "Subpart 1 — general authority"
---

# §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)](#b); and
    - (B) includes—
      - (i) the guaranty fee charged by the Federal National [Mortgage](/usc/12/1707.md?p=a) Association with respect to [mortgage](/usc/12/1707.md?p=a)-backed securities; and
      - (ii) the management and guarantee fee charged by the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) Corporation with respect to participation certificates.
  - (2) **Average fees—** The term “average fees” means the average contractual fee rate of single-family guaranty arrangements by an [enterprise](/usc/12/4502.md?p=10) entered into during 2011, plus the recognition of any up-front cash payments over an estimated average life, expressed in terms of basis points. Such definition shall be interpreted in a manner consistent with the annual report on guarantee fees by the Federal Housing Finance [Agency](/usc/12/4502.md?p=2).
- (b) **Increase—**
  - (1) **In general—**
    - (A) **Phased increase required—** Subject to [subsection (c)](#c), the [Director](/usc/12/4502.md?p=9) shall require each [enterprise](/usc/12/4502.md?p=10) to charge a guarantee fee in connection with any guarantee of the timely payment of principal and interest on securities, notes, and other obligations based on or backed by [mortgages](/usc/12/1707.md?p=a) on residential real properties designed principally for occupancy of from 1 to 4 families, consummated after December 23, 2011.
    - (B) **Amount—** The amount of the increase required under this section shall be determined by the [Director](/usc/12/4502.md?p=9) to appropriately reflect the risk of loss, as well[^1] the cost of capital allocated to similar assets held by other fully private regulated financial institutions, but such amount shall be not less than an average increase of 10 basis points for each origination year or book year above the average fees imposed in 2011 for such guarantees. The [Director](/usc/12/4502.md?p=9) shall prohibit an [enterprise](/usc/12/4502.md?p=10) from offsetting the cost of the fee to [mortgage](/usc/12/1707.md?p=a) originators, borrowers, and investors by decreasing other charges, fees, or premiums, or in any other manner.
  - (2) **Authority to limit offer of guarantee—** The [Director](/usc/12/4502.md?p=9) shall prohibit an [enterprise](/usc/12/4502.md?p=10) from consummating any offer for a guarantee to a lender for [mortgage](/usc/12/1707.md?p=a)-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—** Amounts received from fee increases imposed under this section shall be deposited directly into the United States Treasury, and shall be available only to the extent provided in subsequent appropriations Acts. The fees charged pursuant to this section shall not be considered a reimbursement to the Federal Government for the costs or subsidy provided to an [enterprise](/usc/12/4502.md?p=10).
- (c) **Phase-in—**
  - (1) **In general—** The [Director](/usc/12/4502.md?p=9) may provide for compliance with [subsection (b)](#b) by allowing each [enterprise](/usc/12/4502.md?p=10) to increase the guarantee fee charged by the [enterprise](/usc/12/4502.md?p=10) 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](/usc/12/4502.md?p=9) 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—** Nothing in this subsection shall be interpreted to undermine the minimum increase required by [subsection (b)](#b).
- (d) **Information collection and annual analysis—** The [Director](/usc/12/4502.md?p=9) shall require each [enterprise](/usc/12/4502.md?p=10) to provide to the [Director](/usc/12/4502.md?p=9), 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)](#b); and
  - (2) an assessment of how the changes in the guarantee fees described in [paragraph (1)](#d-1) met the requirements of [subsection (b)](#b).
- (e) **Enforcement—**
  - (1) **Required adjustments—** Based on the information from [subsection (d)](#d) and any other information the [Director](/usc/12/4502.md?p=9) deems necessary, the [Director](/usc/12/4502.md?p=9) shall require an [enterprise](/usc/12/4502.md?p=10) to make adjustments in its guarantee fee in order to be in compliance with [subsection (b)](#b).
  - (2) **Noncompliance penalty—** An [enterprise](/usc/12/4502.md?p=10) that has been found to be out of compliance with [subsection (b)](#b) for any 2 consecutive years shall be precluded from providing any guarantee for a period, determined by rule of the [Director](/usc/12/4502.md?p=9), but in no case less than 1 year.
  - (3) **Rule of construction—** Nothing in this subsection shall be interpreted as preventing the [Director](/usc/12/4502.md?p=9) from initiating and implementing an enforcement action against an [enterprise](/usc/12/4502.md?p=10), at a time the [Director](/usc/12/4502.md?p=9) deems necessary, under other existing enforcement authority.
- (f) **Expiration—** The provisions of this section shall expire on October 1, 2032.

## Footnotes

[^1]: So in original. Probably should be followed by “as”.

## Source credit

(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.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 4547, Pub. L. 102–550, title XIII, § 1327, Oct. 28, 1992, 106 Stat. 3956; Pub. L. 110–289, div. A, title I, § 1122(a)(1), July 30, 2008, 122 Stat. 2689, related to authority to require reports by enterprises, prior to repeal by Pub. L. 110–289, div. A , title I, § 1104(b), July 30, 2008, 122 Stat. 2667.

### Amendments

2021—Subsec. (f). Pub. L. 117–58 substituted “2032” for “2021”.