; and (iv) by adding at the end the following: (B) Direct guarantee process (i) Authorization The Secretary may authorize qualifying lenders to participate in a direct guarantee process for approving loans under this section. (ii) Indemnification (I) In general If the Secretary determines that a mortgage guaranteed through a direct guarantee process under this subparagraph was not originated in accordance with the requirements established by the Secretary, the Secretary may require the lender approved under this subparagraph to indemnify the Secretary for the loss, irrespective of whether the violation caused the mortgage default. (II) Fraud or misrepresentation If fraud or misrepresentation is involved in a direct guarantee process under this subparagraph, the Secretary shall require the original lender approved under this subparagraph to indemnify the Secretary for the loss regardless of when an insurance claim is paid. (C) Review of mortgagees (i) In general The Secretary may periodically review the mortgagees originating, underwriting, or servicing single family mortgage loans under this section. (ii) Requirements In conducting a review under clause (i), the Secretary— (I) shall compare the mortgagee with other mortgagees originating or underwriting loan guarantees for Indian housing based on the rates of defaults and claims for guaranteed mortgage loans originated, underwritten, or serviced by that mortgagee; (II) may compare the mortgagee with such other mortgagees based on underwriting quality, geographic area served, or any commonly used factors the Secretary determines necessary for comparing mortgage default risk, provided that the comparison is of factors that the Secretary would expect to affect the default risk of mortgage loans guaranteed by the Secretary; (iii) shall implement such comparisons by regulation, notice, or mortgagee letter