Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	136,720	n/a	n/a
Engrossed in House	176,114	192	26%
Placed on Calendar Senate	175,304	12	0%
Engrossed Amendment Senate	27,763	1,868	98%
Engrossed Amendment House	109,464	1,759	96%
Enrolled Bill	117,312	4,300 Show Changes Hide Changes	82%

Display Version Introduced in House Engrossed in House Placed on Calendar Senate Engrossed Amendment Senate Engrossed Amendment House Enrolled Bill

HR 3221 EAH

In the House of Representatives, U. S.,May 8, 2008.Resolved, That the House agree to the amendment of the Senate to the title of the bill (H.R.3221CommentsClose CommentsPermalink

) entitled `An Act moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production, and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation' and be it furtherResolved, That the House agree to the amendment of the Senate to the text of the aforesaid bill, with the followingHOUSE AMENDMENTS TO SENATE AMENDMENTS:( 1 ) In the matter proposed to be inserted by the amendment of the Senate to the text of the bill, strike section 1 and all that follows through the end of title V and insert the following:SECTION One Hundred Tenth Congress CommentsClose CommentsPermalink

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SECTION. 1. SHORT TITLE AND; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the `American Housing Rescue and Foreclosure Prevention Act of 2008'‘Housing and Economic Recovery Act of 2008’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title and; table of contents.CommentsClose CommentsPermalink

TITLE I--FHA HOUSING STABILIZATION AND HOMEOWNERSHIP RETENTIONSec. 101. Short title.Subtitle A--Homeownership RetentionSec. 111. Purposes.Sec. 112. Insurance of homeownership retention mortgages.Sec. 113. Study of Auction or Bulk Refinance Program.Sec. 114. Temporary increase in maximum loan guaranty amount for certain housing loans guaranteed by Secretary of Veterans Affairs.Sec. 115. Study of possible accounting revisions relating to property at risk of foreclosure and the availability of credit for refinancing home mortgages at risk of foreclosure.Sec. 116. GAO study of the effect of tightening credit markets in communities affected by the subprime mortgage foreclosure crises and predatory lending on prospective first-time homebuyers seeking mortgages.Subtitle B--Office of Housing CounselingSec. 131. Short title.Sec. 132. Establishment of Office of Housing Counseling.Sec. 133. Counseling procedures.Sec. 134. Grants for housing counseling assistance.Sec. 135. Requirements to use HUD-certified counselors under HUD programs.Sec. 136. Study of defaults and foreclosures.Sec. 137. Definitions for counseling-related programs.Sec. 138. Updating and simplification of mortgage information booklet.Subtitle C--Combating Mortgage FraudSec. 151. Authorization of appropriations to combat mortgage fraud.TITLE II--FHA REFORM AND MANUFACTURED HOUSING LOAN INSURANCE MODERNIZATIONSubtitle A--FHA ReformSec. 201. Short title.Sec. 202. Findings and purposes.Sec. 203. Maximum principal loan obligation.Sec. 204. Extension of mortgage term.Sec. 205. Downpayment simplification.Sec. 206. Mortgage insurance premiums for qualified homeownership assistance entities and higher-risk borrowers.Sec. 207. Risk-based mortgage insurance premiums.Sec. 208. Payment incentives for higher-risk borrowers.Sec. 209. Protections for higher-risk borrowers.Sec. 210. Refinancing mortgages.Sec. 211. Annual reports on new programs and loss mitigation.Sec. 212. Insurance for single family homes with licensed child care facilities.Sec. 213. Rehabilitation loans.Sec. 214. Discretionary action.Sec. 215. Insurance of condominiums and manufactured housing.Sec. 216. Mutual Mortgage Insurance Fund.Sec. 217. Hawaiian home lands and Indian reservations.Sec. 218. Conforming and technical amendments.Sec. 219. Home equity conversion mortgages.Sec. 220. Study on participation of mortgage brokers and correspondent lenders.Sec. 221. Conforming loan limit in disaster areas.Sec. 222. Failure to pay amounts from escrow accounts for single family mortgages.Sec. 223. Acceptable identification for FHA mortgagors.Sec. 224. Pilot program for automated process for borrowers without sufficient credit history.Sec. 225. Sense of Congress regarding technology for financial systems.Sec. 226. Clarification of disposition of certain properties.Sec. 227. Valuation of multifamily properties in noncompetitive sales by HUD to states and localities.Sec. 228. Limitation on mortgage insurance premium increases.Sec. 229. Civil money penalties for improperly influencing appraisals.Sec. 230. Mortgage insurance premium refunds.Sec. 231. Savings provision.Sec. 232. Implementation.Subtitle B--FHA Manufactured Housing Loan Insurance ModernizationSec. 25 DIVISION A--HOUSING FINANCE REFORM

Sec. 1001. Short title.CommentsClose CommentsPermalink





Sec. 252. Findings and purposes.Sec. 253. Exception to limitation on financial institution portfolio.Sec. 254. Insurance benefits.Sec. 255. Maximum loan limits.Sec. 256. Insurance premiums.Sec. 257. Technical corrections.Sec. 258. Revision of underwriting criteria.Sec. 259. Requirement of social security account number for assistance.Sec. 260. GAO study of mitigation of tornado risks to manufactured home1002. Definitions.CommentsClose CommentsPermalink

TITLE III--REFORM OF GOVERNMENT-SPONSORED ENTITIES FOR HOUSING FINANCESec. 301. Short title.Sec. 302. Definitions.Subtitle A--Reform of Regulation of Enterprises and Federal Home Loan BanksChapter 1--Improvement of Safety and SoundnessSec. 31REGULATION OF ENTERPRISES

Sec. 1101. Establishment of the Federal Housing Finance Agency.CommentsClose CommentsPermalink





Sec. 311102. Duties and authorities of Director.Sec. 313. Federal Housing Enterprise Board.Sec. 314. Authority to require reports by regulated entities.Sec. 315. Disclosure of income and charitable contributions by enterprisesthe Director.CommentsClose CommentsPermalink





Sec. 316. Assessments1103. Federal Housing Finance Oversight Board.CommentsClose CommentsPermalink





Sec. 317. Examiners and accountant1104. Authority to require reports by regulated entities.CommentsClose CommentsPermalink





Sec. 318. Prohibition and withholding of executive compensatio1105. Examiners and accountants; authority to contract for reviews of regulated entities; ombudsman.CommentsClose CommentsPermalink





Sec. 319. Reviews of regulated entities.Sec. 320. Inclusion of minorities and women; diversity in Agency workforce1106. Assessments.CommentsClose CommentsPermalink





Sec. 3211107. Regulations and orders.CommentsClose CommentsPermalink





Sec. 322. Non-waiver of privilege1108. Prudential management and operations standards.CommentsClose CommentsPermalink





Sec. 3231109. Review of and authority over enterprise assets and liabilities.CommentsClose CommentsPermalink





Sec. 1110. Risk-based capital requirements.CommentsClose CommentsPermalink





Sec. 324. Minimum and critical1111. Minimum capital levels.CommentsClose CommentsPermalink





Sec. 325. Review of and authority over enterprise assets and liabilitie1112. Registration under the securities laws.CommentsClose CommentsPermalink





Sec. 326. Corporate governance of enterprises.Sec. 327. Required registration under Securities Exchange Act of 19341113. Prohibition and withholding of executive compensation.CommentsClose CommentsPermalink





Sec. 328. Liaison with Financial Institutions Examination Council1114. Limit on golden parachutes.CommentsClose CommentsPermalink





Sec. 329. Guarantee fee study1115. Reporting of fraudulent loans.CommentsClose CommentsPermalink





Sec. 330. Conforming amendments.Chapter 21116. Inclusion of minorities and women; diversity in Agency workforce.CommentsClose CommentsPermalink





Sec. 1117. Temporary authority for purchase of obligations of regulated entities by Secretary of Treasury.CommentsClose CommentsPermalink





Sec. 1118. Consultation between the Director of the Federal Housing Finance Agency and the Board of Governors of the Federal Reserve System to ensure financial market stability .CommentsClose CommentsPermalink

Subtitle B--Improvement of Mission Supervision

Sec. 331. Transfer of product1121. Transfer of program approval and housing goal oversight.CommentsClose CommentsPermalink





Sec. 3321122. Assumption by the Director of certain other HUD responsibilities.CommentsClose CommentsPermalink





Sec. 1123. Review of enterprise products.CommentsClose CommentsPermalink





Sec. 3331124. Conforming loan limits.CommentsClose CommentsPermalink





Sec. 334. Annual housing report regarding regulated entities.Sec. 335. Annual reports by regulated entities on affordable housing stock.Sec. 336. Mortgagor identification requirements for mortgages of regulated entities1125. Annual housing report.CommentsClose CommentsPermalink





Sec. 337. Revision of housing goals1126. Public use database.CommentsClose CommentsPermalink





Sec. 3381127. Reporting of mortgage data.CommentsClose CommentsPermalink





Sec. 1128. Revision of housing goals.CommentsClose CommentsPermalink





Sec. 1129. Duty to serve underserved markets.CommentsClose CommentsPermalink





Sec. 3391130. Monitoring and enforcing compliance with housing goals.CommentsClose CommentsPermalink





Sec. 340. Affordable Housing Fund.Sec. 341. Consistency with mission1131. Affordable housing programs.CommentsClose CommentsPermalink





Sec. 342. Enforcement1132. Financial education and counseling.CommentsClose CommentsPermalink





Sec. 343. Conforming amendments.Chapter 31133. Transfer and rights of certain HUD employees.CommentsClose CommentsPermalink

Subtitle C--Prompt Corrective Action

Sec. 3451141. Critical capital levels.CommentsClose CommentsPermalink





Sec. 1142. Capital classifications.CommentsClose CommentsPermalink





Sec. 3461143. Supervisory actions applicable to undercapitalized regulated entities.CommentsClose CommentsPermalink





Sec. 3471144. Supervisory actions applicable to significantly undercapitalized regulated entities.CommentsClose CommentsPermalink





Sec. 3481145. Authority over critically undercapitalized regulated entities.CommentsClose CommentsPermalink

Subtitle D--Enforcement Actions

Sec. 351. Cease-and-1151. Cease and desist proceedings.CommentsClose CommentsPermalink





Sec. 31152. Temporary cease-and- and desist proceedings.CommentsClose CommentsPermalink





Sec. 353. Prejudgment attachment1153. Removal and prohibition authority.CommentsClose CommentsPermalink





Sec. 31154. Enforcement and jurisdiction.CommentsClose CommentsPermalink





Sec. 31155. Civil money penalties.CommentsClose CommentsPermalink





Sec. 356. Removal and prohibition authority.Sec. 3571156. Criminal penalty.CommentsClose CommentsPermalink





Sec. 358. Subpoena authority1157. Notice after separation from service.CommentsClose CommentsPermalink





Sec. 359. Conforming amendments.Chapter 51158. Subpoena authority.CommentsClose CommentsPermalink

Subtitle E--General Provisions

Sec. 361. Boards of enterprises.Sec. 362. Report on portfolio operations, safety and soundness, and mission of enterprises.Sec. 3631161. Conforming and technical amendments.CommentsClose CommentsPermalink





Sec. 364. Study of alternative secondary market systems.Sec. 365. Effective date.Subtitle B--Federal Home Loan BanksSec. 371. Definition1162. Presidentially-appointed directors of enterprises.CommentsClose CommentsPermalink





Sec. 1163. Effective date.CommentsClose CommentsPermalink

Sec. 1201. Recognition of distinctions between the enterprises and the Federal Home Loan Banks.CommentsClose CommentsPermalink





Sec. 371202. Directors.CommentsClose CommentsPermalink





Sec. 373. Federal Housing Finance1203. Definitions.CommentsClose CommentsPermalink





Sec. 1204. Agency oversight of Federal Home Loan Banks.CommentsClose CommentsPermalink





Sec. 374. Joint activities of Bank1205. Housing goals.CommentsClose CommentsPermalink





Sec. 3751206. Community development financial institutions.CommentsClose CommentsPermalink





Sec. 1207. Sharing of information between Federal Home Loan Bankamong Federal Home Loan Banks.CommentsClose CommentsPermalink





Sec. 1208. Exclusion from certain requirements.CommentsClose CommentsPermalink





Sec. 376. Reorganization of Banks and voluntary merger1209. Voluntary mergers.CommentsClose CommentsPermalink





Sec. 377. Securities and Exchange Commission disclosure1210. Authority to reduce districts.CommentsClose CommentsPermalink





Sec. 3781211. Community financial institution members.CommentsClose CommentsPermalink





Sec. 3791212. Public use database; reports to Congress.CommentsClose CommentsPermalink





Sec. 1213. Semiannual reports.CommentsClose CommentsPermalink





Sec. 1214. Liquidation or reorganization of a Federal Home Loan Bank.CommentsClose CommentsPermalink





Sec. 1215. Study and report to Congress on securitization of acquired member assets.CommentsClose CommentsPermalink





Sec. 1216. Technical and conforming amendments.CommentsClose CommentsPermalink





Sec. 380. Study of affordable housing program use for long-term care faciliti1217. Study on Federal Home Loan Bank advances.CommentsClose CommentsPermalink





Sec. 381. Effective date.Subtitle C--Transfer of Functions, Personnel, and Property of Office of Federal Housing Enterprise Oversight, Federal Housing Finance Board, and Department of Housing and Urban DevelopmentChapter 1--Office of Federal Housing Enterprise OversightSec. 3851218. Federal Home Loan Bank refinancing authority for certain residential mortgage loans.CommentsClose CommentsPermalink

Sec. 1301. Abolishment of OFHEO.CommentsClose CommentsPermalink





Sec. 3861302. Continuation and coordination of certain regulaactions.CommentsClose CommentsPermalink





Sec. 3871303. Transfer and rights of employees of OFHEO.CommentsClose CommentsPermalink





Sec. 3881304. Transfer of property and facilities.CommentsClose CommentsPermalink

Chapter 2Subtitle B--Federal Housing Finance Board

Sec. 391311. Abolishment of the Federal Housing Finance Board.CommentsClose CommentsPermalink





Sec. 391312. Continuation and coordination of certain regulaactions.CommentsClose CommentsPermalink





Sec. 391313. Transfer and rights of employees of the Federal Housing Finance Board.CommentsClose CommentsPermalink





Sec. 391314. Transfer of property and facilities.CommentsClose CommentsPermalink

TITLE IV--EMERGENCY MORTGAGE LOAN MODIFICATIONSec. HOPE FOR HOMEOWNERS

Sec. 1401. Short title.CommentsClose CommentsPermalink





Sec. 402. Safe harbor for qualified loan modifications or workout plans for certain1402. Establishment of HOPE for Homeowners Program.CommentsClose CommentsPermalink





Sec. 1403. Fiduciary duty of servicers of pooled residential mortgage loans.CommentsClose CommentsPermalink





Sec. 1404. Revised standards for FHA appraisers.CommentsClose CommentsPermalink

TITLE V--OTHER HOUSING PROVISIONSSec. 501. Depository Institution Community Development Investments EnhancementS.A.F.E. MORTGAGE LICENSING ACT

Sec. 1501. Short title.CommentsClose CommentsPermalink





Sec. 502. Preservation of certain affordable housing dwelling units1502. Purposes and methods for establishing a mortgage licensing system and registry.CommentsClose CommentsPermalink





Sec. 503. Eligibility of certain projects for enhanced voucher assistance1503. Definitions.CommentsClose CommentsPermalink





Sec. 504. Transfer of certain rental assistance contracts1504. License or registration required.CommentsClose CommentsPermalink





Sec. 505. Protection against discriminatory treatment.

TITLE I--FHA HOUSING STABILIZATION AND HOMEOWNERSHIP RETENTIONSEC. 101. SHORT TITLE.This title may be cited as the `FHA Housing Stabilization and Homeownership Retention Act of 2008'.Subtitle A--Homeownership RetentionSEC. 111. PURPOSES.The purposes of this subtitle are--(1) to create an FHA program, which is voluntary on the part of borrowers and existing mortgage loan holders, including both existing senior mortgage loan holders and existing subordinate mortgage loan holders, to insure refinance loans for substantial numbers of borrowers at risk of foreclosure, at levels which are reasonably likely to be sustainable through enhanced affordability of debt service;(2) to provide flexible underwriting for FHA-insured loans under such a program to provide refinancing opportunities under fiscally responsible terms, including higher fees commensurate with higher risk levels, a seasoning requirement for higher debt to income loans, and additional program controls to limit and control risk;(3) to bar speculators and second home owners from participation in such program;(4) to require existing mortgage loan holders to take substantial loan writedowns in exchange for having the Federal Government and the borrower assume the ongoing risk of the refinanced loan;(5) to set a loan-to-value limit on such loans that provides the FHA with an equity buffer against potential loan losses, provides protections against the risk of future home price declines, and creates incentives for borrowers to maintain payments on the loan;(6) to protect the FHA against losses which may exceed normal FHA loss levels by establishing higher fee levels, including an exit fee and profit sharing during the first five years of the loan, with such higher fee levels effectively being funded through the required lender writedown;(7) to provide a fair level of incentives for junior lien holders to provide the necessary releases of their lien interests, in order to meet program requirements that all outstanding liens must be extinguished, and thereby permit the refinancing to be completed;(8) to enhance the administrative capacity of the FHA to carry out its expanded role under the program through establishment of an Oversight Board which adds expertise from the Federal Reserve and the Department of the Treasury, through additional funding to contract out for the provision of any needed expertise in designing program requirements and oversight, and through additional funding to increase FHA personnel resources as needed to handle the increased loan volume resulting from the program;(9) to sunset the program when it is no longer needed; and(10) to study the need for and efficacy of an auction or bulk refinancing mechanism to facilitate more expeditious refinancing of larger volumes of existing mortgages that are at risk for foreclosure into FHA-insured mortgages.SEC. 112. INSURANCE OF HOMEOWNERSHIP RETENTION MORTGAGES.(a) Mortgage Insurance Program- Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by adding at the end the following new section:

`SEC. 257. INSURANCE OF HOMEOWNERSHIP RETENTION MORTGAGES.`(a) Oversight Board-`(1) ESTABLISHMENT- There is hereby established the Refinance Program Oversight Board (in this section referred to as the `Oversight Board').`(2) MEMBERSHIP- The Oversight Board shall consist of the following members or their designees:`(A) The Secretary of the Treasury.`(B) The Secretary of Housing and Urban Development.`(C) The Chairman of the Board of Governors of the Federal Reserve System.`(3) NO ADDITIONAL COMPENSATION- Members of the Oversight Board shall receive no additional pay by reason of service on the Oversight Board.`(4) RESPONSIBILITIES- The Oversight Board shall be responsible for establishing program and oversight requirements for the program under this section, which shall include--`(A) detailed program requirements under subsection (c);`(B) flexible underwriting criteria under subsection (d);`(C) a mortgage premium structure under subsection (e);`(D) a reasonable fee and rate limitation under subsection (f);`(E) enhancement of FHA capacity under subsection (i), including oversight of such activities and personnel as may be contracted for as provided therein;`(F) monitoring of underwriting risk under subsection (j); and`(G) such additional requirements as may be necessary and appropriate to oversee and implement the program.`(5) USE OF RESOURCES- In carrying out its functions under this section, the Oversight Board may utilize, with their consent and to the extent practical, the personnel, services, and facilities of the Department of the Treasury, the Department of Housing and Urban Development, the Board of Governors of the Federal Reserve System, the Federal Reserve Banks, and other Federal agencies, with or without reimbursement therefore.`(b) Authority-`(1) IN GENERAL- The Secretary shall, subject only to the absence of qualified requests for insurance under this section and to the limitations under subsection (h) of this section and section 531(a), make commitments to insure and insure any mortgage covering a 1- to 4-family residence that is made for the purpose of paying or prepaying outstanding obligations under an existing mortgage or mortgages on the residence if the mortgage being insured under this section meets the requirements of this section, as established by the Oversight Board, and of section 203, except as modified by this section.`(2) ESTABLISHMENT AND IMPLEMENTATION OF PROGRAM REQUIREMENTS- The Oversight Board shall establish program requirements and standards under this section and the Secretary shall implement such requirements and standards. The Oversight Board and the Secretary may establish and implement any requirements or standards through interim guidance and mortgagee letters.`(c) Requirements- To be eligible for insurance under this section, a mortgage shall comply with all of the following requirements:`(1) OWNER-OCCUPIED PRINCIPAL RESIDENCE REQUIREMENT- The residence securing the mortgage insured under this section shall be occupied by the mortgagor as the principal residence of the mortgagor and the mortgagor shall provide a certification to the originator of the mortgage that such residence securing the mortgage insured under this section is the only residence in which the mortgagor has any present ownership interest. With regard to such certification, the Oversight Board may create exceptions for mortgagors who have only a partial ownership interest in a residence other than the residence securing the mortgage insured under this section.`(2) LACK OF CAPACITY TO PAY EXISTING MORTGAGE OR MORTGAGES-`(A) BORROWER CERTIFICATION-`(i) The mortgagor shall provide a certification to the originator of the mortgage that the mortgagor--`(I) has not intentionally defaulted on the existing mortgage or mortgages; and`(II) has not knowingly, or willfully and with actual knowledge furnished material information known to be false for the purpose of obtaining the existing mortgage or mortgages.`(ii) The mortgagor shall agree in writing that the mortgagor shall be liable to repay the FHA any direct financial benefit achieved from the reduction of indebtedness on the existing mortgage or mortgages on the residence refinanced under this section derived from misrepresentations made in the certifications and documentation required under this subparagraph, subject to the discretion of the Oversight Board.`(B) CURRENT BORROWER DEBT-TO-INCOME RATIO- As of March 1, 2008, the mortgagor shall have had a ratio of mortgage debt to income, taking into consideration all existing mortgages at such time, greater than 35 percent.`(C) LOSS MITIGATION RESPONSIBILITIES- This section may not be construed to alter or in any way affect the responsibilities of any party (including the mortgage servicer) to engage in any or all loan modification or other loss mitigation strategies to maximize value to investors as established by any applicable contract.`(3) ELIGIBILITY OF MORTGAGES BY DATE OF ORIGINATION- The existing senior mortgage shall have been originated on or before December 31, 2007.`(4) MAXIMUM LOAN-TO-VALUE RATIO FOR NEW LOANS- The mortgage being insured under this section shall involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve and including the mortgage insurance premium paid pursuant to subsection (e)(1)) in an amount not to exceed 90 percent of the current appraised value of the property. Section 203(d) shall not apply to mortgages insured under this section.`(5) REQUIRED WAIVER OF PREPAYMENT PENALTIES AND FEES- All penalties for prepayment of the existing mortgage or mortgages, and all fees and penalties related to default or delinquency on all existing mortgages or mortgages, shall be waived or forgiven.`(6) REQUIRED LOAN REDUCTION-`(A) REDUCTION OF INDEBTEDNESS UNDER EXISTING SENIOR MORTGAGE- The amount of indebtedness on the existing mortgage or mortgages on the residence shall have been substantially reduced by such percentage as the Oversight Board may require, and such reduction shall be at least sufficient to--`(i) provide for the refinancing of such existing mortgage or mortgages in an amount not greater than 90 percent of the current appraised value of the property involved;`(ii) pay the full amount of the single premium to be collected pursuant to subsection (e)(1) (which shall be an amount equal to 3.0 percent of the amount of the original insured principal obligation of the mortgage insured under this section and which shall serve as an additional reserve to cover possible loan losses); and`(iii) pay the full amount of the loan origination fee and any other closing costs, not to exceed 2.0 percent of the amount of the original insured principal obligation of the mortgage insured under this section.`(B) EXTINGUISHMENT OF DEBT BY REFINANCING-`(i) REQUIRED AGREEMENT- All existing holders of mortgage liens on the property securing the mortgage to be insured under this section shall agree to accept the proceeds of the insured loan as payment in full of all indebtedness under all existing mortgages, and all encumbrances related to such mortgages shall be removed. The Oversight Board may take such actions as the Oversight Board considers necessary or appropriate to facilitate coordination and agreement between the holders of the existing senior mortgage and any existing subordinate mortgages, taking into consideration the subordinate lien status of such subordinate mortgages, to comply with the requirement under this subparagraph.`(ii) TREATMENT OF MULTIPLE MORTGAGE LIENS- In addition to clause (i), the Oversight Board shall adopt one of the following approaches for all mortgages or such classes of mortgages as the Oversight Board may determine and may, from time to time, reconsider:`(I) FIXED PRICE- As a requirement for participating in this program, all existing lien holders will agree to not provide any payment to subordinate lien holders other than such payment in accordance with a formula established by the Oversight Board as set forth in clause (iii); except that the Oversight Board may establish a short period within which first and subordinate lien holders may negotiate to extinguish all subordinate liens for compensation that may be different from the amount determined under such formula set forth in clause (iii).`(II) SHARED EQUITY- The Oversight Board may require the mortgagor under a mortgage insured under this section to agree to share a portion of any future equity in the mortgaged property with holders of existing subordinate mortgages, in accordance with a formula for such shared equity established by the Oversight Board as set forth in clause (iii), except that payments of such shared equity may be made only after the Secretary recovers all amounts owed to the Secretary with respect to such mortgage pursuant to the program under this section (including amounts owed pursuant to paragraph (8)).`(iii) FORMULA- In determining a formula for determining any payments to subordinate lien holders pursuant to subclauses (I) and (II) of clause (ii), and in any reconsideration of such formula as the Oversight Board may from time to time undertake, the Oversight Board shall take into consideration the current market value of such liens. In no case may a formula provide for the payment of more than 1 percent of the current appraised value of the mortgaged property to a subordinate lien holder if the outstanding balance owed to more senior lien holders is equal to or exceeds such current appraised value.`(iv) VOLUNTARY PROGRAM- This section may not be construed to require any holder of any existing mortgage to participate in the program under this section generally, or with respect to any particular loan.`(v) SOURCE OF PAYMENTS FOR SUBORDINATE LOANS- Any amounts paid to holders of any existing subordinate mortgages in connection with the origination and insurance of a mortgage under this section shall derive only from--`(I) the holder of the existing senior mortgage; or`(II) in the case only of the shared equity approach under clause (ii)(II), the mortgagor under the mortgage insured under this section`(7) REQUIRED REDUCTION OF DEBT SERVICE- The debt service payments due under the mortgage insured under this section shall be in an amount that is substantially reduced from the debt service payments due under the existing mortgage or mortgages, which reduction may be achieved through a reduction of indebtedness, a reduction in the interest rate being paid, or an extension of the term of the mortgage, or any combination thereof.`(8) FINANCIAL RECOVERY TO FEDERAL GOVERNMENT THROUGH EXIT PREMIUM-`(A) SUBORDINATE LIEN- The mortgage shall provide that the Secretary shall retain a lien on the residence involved, which shall be subordinate to the mortgage insured under this section but senior to all other mortgages on the residence that may exist at any time, and which shall secure the repayment of the amount due under subparagraph (D).`(B) NO INTEREST OR PAYMENT DURING MORTGAGE- The amount secured by the lien retained by the Secretary pursuant to subparagraph (A) shall not bear interest and shall not be repayable to the Secretary except as provided in subparagraph (D) of this paragraph.`(C) NET PROCEEDS AVAILABLE FOR EXIT PREMIUM- Upon the sale, refinancing, or other disposition of the residence securing a mortgage insured under this section, any proceeds resulting from such disposition that remain after deducting the remaining insured principal balance of the mortgage insured under this section shall be available to meet the obligation under subparagraph (D). In the case of a refinance, non-arms length transaction, or such other transaction as the Oversight Board shall determine, the proceeds shall be based on the current appraised value at the time of the refinance or transaction.`(D) EXIT PREMIUM- Upon any refinancing of the mortgage insured under this section or any sale or disposition of the residence securing the mortgage, the Secretary shall, subject to the availability of sufficient net proceeds described in subparagraph (C), receive the greater of--`(i) 3 percent of the amount of the original insured principal obligation of the mortgage (or the entire amount of the net proceeds described in subparagraph (C) if such net proceeds are less than 3 percent of the amount of the original insured principal obligation of the mortgage); or`(ii) a percentage of the portion of the net proceeds available for profit-sharing, as described in subparagraph (E), which shall be--`(I) in the case of any refinancing, sale, or disposition occurring during the first year of the term of the mortgage, 100 percent of such net proceeds;`(II) in the case of any refinancing, sale, or disposition occurring during the second year of the term of the mortgage, 80 percent;`(III) in the case of any refinancing, sale, or disposition occurring during the third year of the term of the mortgage, 60 percent; and`(IV) in the case of any refinancing, sale, or disposition occurring during the fourth year of the term of the mortgage or at any time thereafter, 50 percent;except that such percentage of proceeds shall be reduced by all fees the Secretary has collected for the mortgage prior to such refinancing, sale, or disposition.`(E) NET PROCEEDS AVAILABLE FOR PROFIT-SHARING- With respect to any mortgage insured under this section, the net proceeds available for purposes of subparagraph (D)(ii) shall be any proceeds resulting from the sale, refinancing, or other disposition of the residence securing the mortgage that remain after deducting the original insured principal obligation of the mortgage. In the case of a refinance, non-arms length transaction, or such other transaction as the Oversight Board shall determine, the proceeds shall be based on the current appraised value at the time of the refinance or transaction.`(F) AUTHORITY TO PROHIBIT NEW SECOND LIENS- The Oversight Board shall prohibit borrowers from granting a new second lien on the mortgaged property during the first five years of the term of the mortgage insured under this section, except as the Oversight Board determines to be necessary to ensure the appropriate maintenance of the mortgaged property.`(9) DOCUMENTATION AND VERIFICATION OF INCOME- In complying with the FHA underwriting requirements under the program under this section, the mortgagee shall document and verify the income of the mortgagor or non-filing status by procuring (A) an income tax return transcript of the income tax returns of the mortgagor, or (B) a copy of the income tax returns for the Internal Revenue Service, for the two most recent years for which the filing deadline for such years has passed and by any other method, in accordance with procedures and standards that the Oversight Board shall establish.`(10) FIXED RATE MORTGAGE- The mortgage insured under this section shall bear interest at a single rate that is fixed for the entire term of the mortgage.`(11) MAXIMUM LOAN AMOUNT- Notwithstanding section 203(b)(2), the mortgage being insured under this section shall involve a principal obligation in an amount that does not exceed the limitation (for a property of the applicable size) on the amount of the principal obligation that would be allowable under the terms of section 202(a) of the Economic Stimulus Act of 2008 if the mortgage were insured pursuant to such section. The limitation on the amount of the principal obligation allowable under such Act shall apply for the purposes of this section until the termination under subsection (n) of the program under this section.`(12) INELIGIBILITY FOR FRAUD CONVICTION- The mortgagor shall not have been convicted under Federal or State law for mortgage fraud during the 7-year period ending upon the insurance of the mortgage under this section.`(13) LENDER REVIEW- The mortgagee under the mortgage shall conduct an electronic database search of the mortgagor's criminal history to determine if the mortgagor has had a conviction described in paragraph (12). The mortgagee may charge the mortgagor a reasonable fee for the actual cost of the search not to exceed a maximum rate established by the Oversight Board. The Oversight Board may provide clarification, if needed, to help mortgagees identify any differences among the States in how they report mortgage fraud convictions. The Oversight Board shall establish procedures sufficient to allow the mortgagor to challenge a mortgagee's determination with respect to paragraph (12) (including to correct inaccuracies resulting from theft of the mortgagor's identity or personally identifiable information).`(14) APPRAISALS- Any appraisal conducted in connection with a mortgage insured under this section shall--`(A) be based on the current value of the property;`(B) be conducted in accordance with title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3331 et seq.);`(C) be completed by an appraiser who meets the competency requirements of the Uniform Standards of Professional Appraisal Practice;`(D) be wholly consistent with the appraisal standards, practices, and procedures under section 202(e) of this Act that apply to all loans insured under this Act; and`(E) comply with the requirements of subsection (g) of this section (relating to appraisal independence).`(15) STATEMENT OF LOAN TERMS-`(A) REQUIREMENT- The mortgagor shall have been provided by the mortgagee, not later than three days before closing for the mortgage, a form described in subparagraph (B) appropriately and accurately completed by the mortgagee.`(B) FORM- The form described in this subparagraph shall be a single page, written disclosure regarding the mortgage loan to be insured under this section that, when completed by the mortgagee, sets forth, in accordance with such requirements as the Secretary shall by regulation establish a best possible estimate of--`(i) the total loan amount under the mortgage;`(ii) the loan-to-value ratio for the mortgage;`(iii) the final maturity date for the mortgage;`(iv) the amount of any prepayment fee to be charged if the mortgage is paid in full before the final maturity date for the mortgage, including the percentages of any net proceeds to be received by the Secretary pursuant to paragraph (8)(D)(ii);`(v) the amount of the exit premium under the mortgage pursuant to subsection (e)(3);`(vi) the interest rate under the mortgage expressed as an annual percentage rate, and the amount of the monthly payment due under such rate;`(vii) the fully indexed rate of interest under the mortgage expressed as an annual percentage rate and the amount of the monthly payment due under such rate;`(viii) the monthly household income of the borrower upon which the mortgage is based;`(ix) the amount of the monthly payment due under the mortgage, and the amount of such initial monthly payment plus monthly amounts due for taxes and insurance on the property for which the mortgage is made, both expressed as a percentage of the monthly household income of the borrower; and`(x) the aggregate amount of settlement charges for all settlement services provided in connection with the mortgage, the amount of such charges that are included in the principal amount and the amount of such charges the borrower must pay at closing, the aggregate amount of mortgagee's fees connection with the mortgage, and the aggregate amount of other fees or required payments in connection with the mortgage.`(d) Flexible Underwriting Criteria-`(1) IN GENERAL- The Oversight Board shall establish, and the Secretary acting on behalf of the Oversight Board shall implement, underwriting standards for mortgages insured under this section that--`(A) ensure that each mortgagor under a mortgage insured under this section has a reasonable expectation of repaying the mortgage, taking into consideration the mortgagor's income, assets, liabilities, payment history, and other applicable criteria, but which shall not result in a denial of insurance solely on the basis of the mortgagor's current FICO or other credit scores, or any delinquency or default by the mortgagor under the existing mortgage or mortgages, or any case filed under title 11, United States Code, by the mortgagor; and`(B) subject to the provisions of subparagraph (A), permit a total debt-to-income ratio of up to 43 percent.`(2) EXCEPTION-`(A) IN GENERAL- Subject to the underwriting standards established under paragraph (1)(A) and any additional requirements that the Oversight Board considers appropriate, the Oversight Board shall permit a total debt-to-income ratio of more than 43 percent, but not more than 50 percent, if the mortgagor has made, on a timely basis before the endorsement of the mortgage insured under this section, not less than six months of payments in an amount not less than the amount of the monthly payment due under the mortgage to be insured under this section. The holder of the existing senior mortgage shall exercise forbearance with respect to such mortgage during the period in which such payments are made.`(B) COMPUTATION OF DEBT-TO-INCOME RATIO- In computing the mortgagor's total debt-to-income ratio for purposes of mortgage qualification under the underwriting standards established pursuant to this section--`(i) if the mortgagor is a debtor in a case under chapter 13 of title 11, United States Code, payments on recurring debts other than housing expenses shall be based on the amounts being paid on such debts under the mortgagor's confirmed plan under such chapter; and`(ii) if the mortgagor is a debtor in a case under chapter 7 of title 11, United States Code, recurring debts that are to be discharged in that case shall not be considered.`(3) AUTHORITY- The Oversight Board may alter the ratios under this subsection for a particular class of borrowers subject to such requirements as the Board determines is necessary and appropriate to fulfill the purposes of this Act.`(4) REPRESENTATIONS AND WARRANTIES- The Oversight Board shall require the underwriter of the insured loan to provide such representations and warranties as the Oversight Board considers necessary or appropriate for the Secretary to enforce compliance with all underwriting and appraisal standards of the program.`(e) Premiums- For each mortgage insured under this section, the Oversight Board shall establish and the Secretary shall collect--`(1) at the time of insurance, a single premium payment in an amount equal to 3.0 percent of the amount of the original insured principal obligation of the mortgage, which shall be paid from the proceeds of the mortgage being insured under this section, through the reduction of the amount of indebtedness on the existing senior mortgage required under subsection (c)(6)(A);`(2) in addition to the premium under paragraph (1), annual premium payments in an amount equal to 1.50 percent of the remaining insured principal balance of the mortgage; and`(3) an exit premium in the amount determined under subsection (c)(8), but which shall not be less than 3.0 percent of the original insured principal obligation of the mortgage, subject only to the availability of sufficient net proceeds from sale, refinancing, or other disposition of the property, as determined in subsection (c)(8).`(f) Origination Fees and Mortgage Rate- The Oversight Board shall establish and the Secretary shall implement a reasonable limitation on origination fees for mortgages insured under this section and shall establish procedures to ensure that interest rates on such mortgages shall be commensurate with market rate interest rates on such types of loans.`(g) Appraisal Independence-`(1) PROHIBITIONS ON INTERESTED PARTIES IN A REAL ESTATE TRANSACTION- No mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, nor any other person with an interest in a real estate transaction involving an appraisal in connection with a mortgage insured under this section shall improperly influence, or attempt to improperly influence, through coercion, extortion, collusion, compensation, instruction, inducement, intimidation, non-payment for services rendered, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with the mortgage.`(2) EXCEPTIONS- The requirements of paragraph (1) shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person with an interest in a real estate transaction from asking an appraiser to provide 1 or more of the following services:`(A) Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal.`(B) Provide further detail, substantiation, or explanation for the appraiser's value conclusion.`(C) Correct errors in the appraisal report.`(3) CIVIL MONETARY PENALTIES- The Secretary may impose a civil money penalty for any knowing and material violation of paragraph (1) under the same terms and conditions as are authorized in section 536(a) of this Act.`(h) Limitation on Aggregate Insurance Authority- The aggregate original principal obligation of all mortgages insured under this section may not exceed $300,000,000,000.`(i) Enhancement of FHA Capacity- Under the direction of the Oversight Board, the Secretary shall take such actions as may be necessary to--`(1) contract for the establishment of underwriting criteria, automated underwriting systems, pricing standards, and other factors relating to eligibility for mortgages insured under this section;`(2) contract for independent quality reviews of underwriting, including appraisal reviews and fraud detection, of mortgages insured under this section or pools of such mortgages; and`(3) increase personnel of the Department as necessary to process or monitor the processing of mortgages insured under this section.`(j) Monitoring of Underwriting Risk-`(1) MONITORING OF DESIGNATED UNDERWRITERS- The Oversight Board and the Secretary shall monitor independent quality reviews as established pursuant to subsection (i)(2) to--`(A) determine compliance of designated underwriters with underwriting standards;`(B) determine rates of delinquency, claims rates, and loss rates of designated underwriters; and`(C) terminate eligibility of designated underwriters that do not meet minimum performance standards as the Oversight Board may establish and the Secretary implements.`(2) REPORTS BY OVERSIGHT BOARD- The Oversight Board shall submit monthly reports to the Congress identifying the progress of the program for mortgage insurance under this section, which shall contain the following information for each month:`(A) The number of new mortgages insured under this section, including the location of the properties subject to such mortgages by census tract.`(B) The aggregate principal obligation of new mortgages insured under this section.`(C) The average amount by which the indebtedness on existing mortgages is reduced in accordance with subsection (c)(6).`(D) The average amount by which the debt service payments on existing mortgages is reduced in accordance with subsection (c)(7).`(E) The amount of premiums collected for insurance of mortgages under this section.`(F) The claim and loss rates for mortgages insured under this section.`(G) The race, ethnicity, gender, and income of the mortgagors, aggregated by geographical areas at least as specific as census tracts, except where necessary to protect privacy of the borrower.`(H) Any other information that the Oversight Board considers appropriate.`(3) REPORT BY INSPECTOR GENERAL- The Inspector General of the Department of Housing and Urban Development shall conduct an annual audit of the program for mortgage insurance under this section to determine compliance with this section and program rules.`(k) GNMA Commitment Authority-`(1) GUARANTEES- The Secretary shall take such actions as may be necessary to ensure that securities based on and backed by a trust or pool composed of mortgages insured under this section are available to be guaranteed by the Government National Mortgage Association as to the timely payment of principal and interest.`(2) GUARANTEE AUTHORITY- To carry out the purposes of section 306 of the National Housing Act (12 U.S.C. 1721), the Government National Mortgage Association may enter into new commitments to issue guarantees of securities based on or backed by mortgages insured under this section, not exceeding $300,000,000,000. The amount of authority provided under the preceding sentence to enter into new commitments to issue guarantees is in addition to any amount of authority to make new commitments to issue guarantees that is provided to the Association under any other provision of law.`(l) Special Risk Insurance Fund- The insurance of each mortgage under this section shall be the obligation of the Special Risk Insurance Fund established by section 238.`(m) Definitions- For purposes of this section, the following definitions shall apply:`(1) EXISTING MORTGAGE- The term `existing mortgage' means, with respect to a mortgage insured under this section, a mortgage that is to be extinguished, and paid or prepaid, from the proceeds of the mortgage insured under this section.`(2) EXISTING SENIOR MORTGAGE- The term `existing senior mortgage' means, with respect to a mortgage insured under this section, the existing mortgage that has superior priority.`(3) EXISTING SUBORDINATE MORTGAGE- The term `existing subordinate mortgage' means, with respect to a mortgage insured under this section, an existing mortgage that has subordinate priority to the existing senior mortgage.`(n) Sunset-`(1) IN GENERAL- Except as provided in paragraph (2), the authority of the Secretary to make any new commitment to insure any mortgage under this section shall terminate upon the expiration of the 2-year period beginning on the date of the enactment of the FHA Housing Stabilization and Homeownership Retention Act of 2008.`(2) EXTENSIONS- The Oversight Board may, not more than four times, extend the authority to enter into new commitments to insure mortgages under this section beyond the date specified in paragraph (1), except that each such extension shall--`(A) be effective only if, before the program terminates pursuant to paragraph (1) or any previous extension pursuant to this paragraph, the Oversight Board--`(i) certifies the need for such extension in writing to the Congress; and`(ii) causes notice of such extension to be published in the Federal Register no later than the beginning of the 3-month period that ends upon the scheduled termination date of the program; and`(B) be for a period of not more than 6 months.`(o) Authorizations of Appropriations- There is authorized to be appropriated for each of fiscal years 2008 and 2009--`(1) $230,000,000 for providing counseling regarding loss mitigation for mortgagors with 1- to 4-family residences, including determining eligibility for the program under this section, with grants to be administered through the Neighborhood Reinvestment Corporation, except that--`(A) funds shall be targeted to States and communities based on their levels of foreclosures and delinquencies in 2007 and 2008;`(B) not less than 15 percent of the funds made available pursuant to this paragraph shall be provided to counseling organizations that target counseling services regarding loss mitigation to minority and low-income homeowners or provide such services in neighborhoods with high concentrations of minority and low-income homeowners;`(C) $35,000,000 of the funds made available pursuant to this paragraph shall be used by the Neighborhood Reinvestment Corporation (referred to in this subparagraph as the `NRC') to make grants to State and local legal organizations or attorneys that have demonstrated legal experience in home foreclosure or eviction law to provide legal assistance related to home ownership preservation, home foreclosure prevention, and tenancy associated with home foreclosure or to counseling intermediaries that have been approved by the Department of Housing and Urban Development for the purpose of making such grants or contracting for such legal assistance; of the amount provided under this subparagraph, at least 60 percent shall be allocated for legal assistance to low-income homeowners or tenants; such attorneys shall be capable of assisting homeowners in owner-occupied homes or tenants who live in homes with mortgages in default, in danger of default, or subject to or at risk of foreclosure or eviction and who have legal issues that cannot be handled by counselors employed by NRC intermediaries; in using the amount made available under this subparagraph, the NRC shall give priority consideration to State and local legal organizations and attorneys that (i) provide legal assistance in the 100 metropolitan statistical areas (as defined by the Director of the Office of Management and Budget) with the highest home foreclosure rates, and (ii) have the capacity to begin using the financial assistance within 90 days after receipt of the assistance; as a condition of the receipt of a grant under this subparagraph, the grantee shall submit to NRC information relating to the demographic characteristics of the assisted homeowners or tenants, the dollar amount and terms of the relevant mortgages and the outcome of legal proceedings related to the foreclosure or eviction proceedings, including the resolutions thereof; except that no funds under this subparagraph shall be used for class action litigation;`(D) $20,000,000 of the funds made available pursuant to this paragraph shall be used for such counseling for veterans recently returning from active duty in the Armed Forces;`(E) the NRC shall give priority consideration for funding with amounts made available pursuant to this paragraph, except for funds made available under subparagraphs (B), (C), and (D), to entities that have an effective plan in place for making contact, including personal contact, with defaulted mortgagors, and such a plan may include use of third parties (including both for-profit and not-for-profit entities) to make personal contact with defaulted mortgagors, or visits to such mortgagors, or both;`(F) except with respect to funds reserved under subparagraphs (B), (C), and (D), the NRC shall give priority consideration for funding with amounts made available pursuant to this paragraph to entities that have a written plan that has been implemented for providing in-person counseling and for making contact, including personal contact, with defaulted mortgagors, for the purpose of providing counseling or providing information about available counseling, both (i) prior to commencement of any foreclosure proceedings, and (ii) in the event effective in person or phone contact has not been made with such defaulted mortgagors prior thereto, then prior to the conclusion of the foreclosure process; and`(G) not less than 2 percent of the funds made available pursuant to this paragraph shall be used only for identifying and notifying borrowers under existing mortgages who are eligible under this section for insurance of refinancing mortgages, and in making funds reserved under this subparagraph available for such purpose, the Secretary shall give preference to assistance for programs that have a proven history of outreach within minority communities; and`(2) $150,000,000 for costs of activities under subsection (i).`(p) Audit and Report by Inspector General-`(1) AUDIT- The Inspector General of the Department of Housing and Urban Development shall conduct an audit of the program for loss mitigation counseling funded with amounts made available under subsection (o)(1) to determine compliance with such subsection.`(2) REPORTS TO CONGRESS- Not later than March 30, 2009, and every calendar quarter thereafter, the Inspector General shall submit to the appropriate committees of the Congress a report summarizing the activities of the Inspector General and the Neighborhood Reinvestment Corporation during the 120-day period ending on the date of such report. Each report shall include, for the period covered by such report, a detailed statement of all obligations, expenditures, and revenues associated with paragraphs (1) and (2) of subsection (o), including--`(A) obligations and expenditures of appropriated funds;`(B) the number of homeowners eligible in such program;`(C) the number of homeowners participating in such program;`(D) the status of homeowners within such program;`(E) the number of homeowners who have rejected assistance from the Neighborhood Reinvestment Corporation; and`(F) information on participating counseling services.'.(b) Special Risk Insurance Fund- Section 238 of the National Housing Act (12 U.S.C. 1715z-3) is amended--(1) in subsection (a)(1), by striking `or 243' each place such term appears and inserting `243, or 257'; and(2) in subsection (b), by striking `and 243' each place such term appears and inserting `243, and 257'.(c) FHA Reverse Mortgage Program- Section 255(g) of the National Housing Act (12 U.S.C. 1715z-20(g)) is amended by striking the first sentence.

SEC. 113. STUDY OF AUCTION OR BULK REFINANCE PROGRAM.(a) Study- The Board of Governors of the Federal Reserve System (in this section referred to as the `Board of Governors'), in consultation with other members of the Oversight Board established by section 257(a) of the National Housing Act (as added by the amendment made by section 112(a) of this title), shall conduct a study of the need for and efficacy of an auction or bulk refinancing mechanism to facilitate refinancing of existing residential mortgages that are at risk for foreclosure into mortgages insured under the mortgage insurance program under title II of the National Housing Act. The study shall identify and examine various options for mechanisms under which lenders and servicers of such mortgages may make bids for forward commitments for such insurance in an expedited manner.(b) Content-(1) ANALYSIS- The study required under subsection (a) shall analyze--(A) the feasibility of establishing a mechanism that would facilitate the more rapid refinancing of borrowers at risk of foreclosure into performing mortgages insured under title II of the National Housing Act;(B) whether such a mechanism would provide an effective and efficient mechanism to reduce foreclosures on qualified existing mortgages;(C) whether the use of an auction or bulk refinance program is necessary to stabilize the housing market and reduce the impact of turmoil in that market on the economy of the United States;(D) whether there are other mechanisms or authority that would be useful to reduce foreclosure; and(E) and any other factors that the Board of Governors considers relevant.(2) DETERMINATIONS- To the extent that the Board of Governors finds that a facility of the type described in paragraph (1) is feasible and useful, the study shall--(A) determine and identify any additional authority or resources needed to establish and operate such a mechanism;(B) determine whether there is a need for additional authority with respect to the loan underwriting criteria included in the amendment made by section 112(a) of this title or with respect to eligibility of participating borrowers, lenders, or holders of liens;(C) determine whether such underwriting criteria should be established on the basis of individual loans, in the aggregate, or otherwise to facilitate the goal of refinancing borrowers at risk of foreclosure into viable loans insured under the National Housing Act.(c) Report- Not later than the expiration of the 60-day period beginning on the date of the enactment of this Act, the Board of Governors shall submit a report regarding the results of the study conducted under this section to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. The report shall include a detailed description of the analysis required under subsection (b)(1) and of the determinations made pursuant to subsection (b)(2), and shall include any other findings and recommendations of the Board of Governors pursuant to the study, including identifying various options for mechanisms described in subsection (a).SEC. 114. TEMPORARY INCREASE IN MAXIMUM LOAN GUARANTY AMOUNT FOR CERTAIN HOUSING LOANS GUARANTEED BY SECRETARY OF VETERANS AFFAIRS.Notwithstanding subparagraph (C) ofsection 3703(a)(1) of title 38, United States Code, for purposes of any loan described in subparagraph (A)(i)(IV) of such section that is originated during the period beginning on the date of the enactment of this Act and ending on December 31, 2008, the term `maximum guaranty amount' shall mean an amount equal to 25 percent of the higher of--(1) the limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for the calendar year in which the loan is originated for a single-family residence; or(2) 125 percent of the area median price for a single-family residence, but in no case to exceed 175 percent of the limitation determined under such section 305(a)(2) for the calendar year in which the loan is originated for a single-family residence.SEC. 115. STUDY OF POSSIBLE ACCOUNTING REVISIONS RELATING TO PROPERTY AT RISK OF FORECLOSURE AND THE AVAILABILITY OF CREDIT FOR REFINANCING HOME MORTGAGES AT RISK OF FORECLOSURE.(a) Study Required- The Securities and Exchange Commission, in consultation with the Board of Governors of the Federal Reserve System, shall conduct a study on fair value accounting standards applicable to financial institutions, including depository institutions, with respect to their residential mortgages that are at risk of foreclosure and mortgage-backed securities involving such mortgages, the effects of such accounting standards on a financial institution's balance sheet and capacity to provide refinancing to residential mortgagors that are at risk of foreclosure and to residential mortgagors during periods of market value declines and increased foreclosures, and the advisability and feasibility of modifications of such standards during periods of market fluctuation in order to maintain the ability of the institution to continue to carry mortgages on residential property at risk of foreclosure and assure the availability of credit to refinance at-risk residential mortgages.(b) Report Required- The Securities and Exchange Commission shall submit a report to the Congress before the end of the 90-day period beginning on the date of the enactment of this Act containing the findings and determinations of the Commission with respect to the study conducted under subsection (a) and such administrative and legislative recommendations as the Commission may determine to be appropriate.SEC. 116. GAO STUDY OF THE EFFECT OF TIGHTENING CREDIT MARKETS IN COMMUNITIES AFFECTED BY THE SUBPRIME MORTGAGE FORECLOSURE CRISES AND PREDATORY LENDING ON PROSPECTIVE FIRST-TIME HOMEBUYERS SEEKING MORTGAGES.The Comptroller General of the United States shall conduct a study to analyze the effects of tightening credit markets on prospective first-time home buyers who reside in selected communities that have been most detrimentally affected by both the current subprime mortgage foreclosure crisis and predatory mortgage lending. Such study shall also analyze the adequacy of financial literacy outreach efforts by agencies of the Federal Government tasked with implementing financial literacy education in such communities and shall assess whether the current funding levels for such efforts are at sufficient levels to reduce the levels of subprime mortgage delinquencies and foreclosures and to increase the level of financial literacy in the selected communities so as to minimize the incidences of predatory mortgage lending. Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress setting forth the results of the study and including recommendations regarding such funding levels.Subtitle B--Office of Housing CounselingSEC. 131. SHORT TITLE.This subtitle may be cited as the `Expand and Preserve Home Ownership Through Counseling Act'.SEC. 132. ESTABLISHMENT OF OFFICE OF HOUSING COUNSELING.Section 4 of the Department of Housing and Urban Development Act (42 U.S.C. 3533) is amended by adding at the end the following new subsection:`(g) Office of Housing Counseling-`(1) ESTABLISHMENT- There is established, in the Office of the Secretary, the Office of Housing Counseling.`(2) DIRECTOR- There is established the position of Director of Housing Counseling. The Director shall be the head of the Office of Housing Counseling and shall be appointed by the Secretary. Such position shall be a career-reserved position in the Senior Executive Service.`(3) FUNCTIONS-`(A) IN GENERAL- The Director shall have ultimate responsibility within the Department, except for the Secretary, for all activities1505. State license and registration application and matters relating to homeownership counseling and rental housing counseling, including--`(i) research, grant administration, public outreach, and policy development relating to such counseling; and`(ii) establishment, coordination, and administration of all regulations, requirements, standards, and performance measures under programs and laws administered by the Department that relate to housing counseling, homeownership counseling (including maintenance of homes), mortgage-related counseling (including home equity conversion mortgages and credit protection options to avoid foreclosure), and rental housing counseling, including the requirements, standards, and performance measures relating to housing counseling.`(B) SPECIFIC FUNCTIONS- The Director shall carry out the functions assigned to the Director and the Office under this section and any other provisions of law. Such functions shall include establishing rules necessary for--`(i) the counseling procedures under section 106(g)(1) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(h)(1));`(ii) carrying out all other functions of the Secretary under section 106(g) of the Housing and Urban Development Act of 1968, including the establishment, operation, and publication of the availability of the toll-free telephone number under paragraph (2) of such section;`(iii) carrying out section 5 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604) for home buying information booklets prepared pursuant to such section;`(iv) carrying out the certification program under section 106(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e));`(v) carrying out the assistance program under section 106(a)(4) of the Housing and Urban Development Act of 1968, including criteria for selection of applications to receive assistance;`(vi) carrying out any functions regarding abusive, deceptive, or unscrupulous lending practices relating to residential mortgage loans that the Secretary considers appropriate, which shall include conducting the study under section 136 of the Expand and Preserve Home Ownership Through Counseling Act;`(vii) providing for operation of the advisory committee established under paragraph (4) of this subsection;`(viii) collaborating with community-based organizations with expertise in the field of housing counseling; and`(ix) providing for the building of capacity to provide housing counseling services in areas that lack sufficient services.`(4) ADVISORY COMMITTEE-`(A) IN GENERAL- The Secretary shall appoint an advisory committee to provide advice regarding the carrying out of the functions of the Director.`(B) MEMBERS- Such advisory committee shall consist of not more than 12 individuals, and the membership of the committee shall equally represent all aspects of the mortgage and real estate industry, including consumers.`(C) TERMS- Except as provided in subparagraph (D), each member of the advisory committee shall be appointed for a term of 3 years. Members may be reappointed at the discretion of the Secretary.`(D) TERMS OF INITIAL APPOINTEES- As designated by the Secretary at the time of appointment, of the members first appointed to the advisory committee, 4 shall be appointed for a term of 1 year and 4 shall be appointed for a term of 2 years.`(E) PROHIBITION OF PAY; TRAVEL EXPENSES- Members of the advisory committee shall serve without pay, but shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code.`(F) ADVISORY ROLE ONLY- The advisory committee shall have no role in reviewing or awarding housing counseling grants.`(5) SCOPE OF HOMEOWNERSHIP COUNSELING- In carrying out the responsibilities of the Director, the Director shall ensure that homeownership counseling provided by, in connection with, or pursuant to any function, activity, or program of the Department addresses the entire process of homeownership, including the decision to purchase a home, the selection and purchase ofissuance.CommentsClose CommentsPermalink




Sec. 1506. Standards for State license renewal.CommentsClose CommentsPermalink





Sec. 1507. System of registration administration by Federal agencies.CommentsClose CommentsPermalink





Sec. 1508. Secretary of Housing and Urban Development backup authority to establish a loan originator licensing system.CommentsClose CommentsPermalink





Sec. 1509. Backup authority to establish a home, issues arising during or affecting the period of ownership of a home (including refinancing, default and foreclosure, and other financial decisions), and the sale or other disposition of a home.'.SEC. 133. COUNSELING PROCEDURES.(a) In General- Section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x) is amended by adding at the end the following new subsection:`(g) Procedures and Activities-`(1) COUNSELING PROCEDURES-`(A) IN GENERAL- The Secretary shall establish, coordinate, and monitor the administration by the Department of Housing and Urban Development of the counseling procedures for homeownership counseling and rental housing counseling provided in connection with any program of the Department, including all requirements, standards, and performance measures that relate to homeownership and rental housing counseling.`(B) HOMEOWNERSHIP COUNSELING- For purposes of this subsection and as used in the provisions referred to in this subparagraph, the term `homeownership counseling' means counseling related to homeownership and residential mortgage loans. Such term includes counseling related to homeownership and residential mortgage loans that is provided pursuant to--`(i) section 105(a)(20) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(20));`(ii) in the United States Housing Act of 1937--`(I) section 9(e) (42 U.S.C. 1437g(e));`(II) section 8(y)(1)(D) (42 U.S.C. 1437f(y)(1)(D));`(III) section 18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));`(IV) section 23(c)(4) (42 U.S.C. 1437u(c)(4));`(V) section 32(e)(4) (42 U.S.C. 1437z-4(e)(4));`(VI) section 33(d)(2)(B) (42 U.S.C. 1437z-5(d)(2)(B));`(VII) sections 302(b)(6) and 303(b)(7) (42 U.S.C. 1437aaa-1(b)(6), 1437aaa-2(b)(7)); and`(VIII) section 304(c)(4) (42 U.S.C. 1437aaa-3(c)(4));`(iii) section 302(a)(4) of the American Homeownership and Economic Opportunity Act of 2000 (42 U.S.C. 1437f note);`(iv) sections 233(b)(2) and 258(b) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12773(b)(2), 12808(b));`(v) this section and section 101(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x, 1701w(e));`(vi) section 220(d)(2)(G) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4110(d)(2)(G));`(vii) sections 422(b)(6), 423(b)(7), 424(c)(4), 442(b)(6), and 443(b)(6) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12872(b)(6), 12873(b)(7), 12874(c)(4), 12892(b)(6), and 12893(b)(6));`(viii) section 491(b)(1)(F)(iii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));`(ix) sections 202(3) and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3), 4229(b)(2)(A));`(x) in the National Housing Act--`(I) in section 203 (12 U.S.C. 1709), the penultimate undesignated paragraph of paragraph (2) of subsection (b), subsection (c)(2)(A), and subsection (r)(4);`(II) subsections (a) and (c)(3) of section 237 (12 U.S.C. 1715z-2); and`(III) subsections (d)(2)(B) and (m)(1) of section 255 (12 U.S.C. 1715z-20);`(xi) section 502(h)(4)(B) of the Housing Act of 1949 (42 U.S.C. 1472(h)(4)(B)); and`(xii) section 508 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-7).`(C) RENTAL HOUSING COUNSELING- For purposes of this subsection, the term `rental housing counseling' means counseling related to rental of residential property, which may include counseling regarding future homeownership opportunities and providing referrals for renters and prospective renters to entities providing counseling and shall include counseling related to such topics that is provided pursuant to--`(i) section 105(a)(20) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)(20));`(ii) in the United States Housing Act of 1937--`(I) section 9(e) (42 U.S.C. 1437g(e));`(II) section 18(a)(4)(D) (42 U.S.C. 1437p(a)(4)(D));`(III) section 23(c)(4) (42 U.S.C. 1437u(c)(4));`(IV) section 32(e)(4) (42 U.S.C. 1437z-4(e)(4));`(V) section 33(d)(2)(B) (42 U.S.C. 1437z-5(d)(2)(B)); and`(VI) section 302(b)(6) (42 U.S.C. 1437aaa-1(b)(6));`(iii) section 233(b)(2) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12773(b)(2));`(iv) section 106 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x);`(v) section 422(b)(6) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12872(b)(6));`(vi) section 491(b)(1)(F)(iii) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408(b)(1)(F)(iii));`(vii) sections 202(3) and 810(b)(2)(A) of the Native American Housing and Self-Determination Act of 1996 (25 U.S.C. 4132(3), 4229(b)(2)(A)); and`(viii) the rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).`(2) STANDARDS FOR MATERIALS- The Secretary, in conjunction with the advisory committee established under subsection (g)(4) of the Department of Housing and Urban Development Act, shall establish standards for materials and forms to be used, as appropriate, by organizations providing homeownership counseling services, including any recipients of assistance pursuant to subsection (a)(4).`(3) MORTGAGE SOFTWARE SYSTEMS-`(A) CERTIFICATION- The Secretary shall provide for the certification of various computer software programs for consumers to use in evaluating different residential mortgage loan proposals. The Secretary shall require, for such certification, that the mortgage software systems take into account--`(i) the consumer's financial situation and the cost of maintaining a home, including insurance, taxes, and utilities;`(ii) the amount of time the consumer expects to remain in the home or expected time to maturity of the loan;`(iii) such other factors as the Secretary considers appropriate to assist the consumer in evaluating whether to pay points, to lock in an interest rate, to select an adjustable or fixed rate loan, to select a conventional or government-insured or guaranteed loan and to make other choices during the loan application process.If the Secretary determines that available existing software is inadequate to assist consumers during the residential mortgage loan application process, the Secretary shall arrange for the development by private sector software companies of new mortgage software systems that meet the Secretary's specifications.`(B) USE AND INITIAL AVAILABILITY- Such certified computer software programs shall be used to supplement, not replace, housing counseling. The Secretary shall provide that such programs are initially used only in connection with the assistance of housing counselors certified pursuant to subsection (e).`(C) AVAILABILITY- After a period of initial availability under subparagraph (B) as the Secretary considers appropriate, the Secretary shall take reasonable steps to make mortgage software systems certified pursuant to this paragraph widely available through the Internet and at public locations, including public libraries, senior-citizen centers, public housing sites, offices of public housing agencies that administer rental housing assistance vouchers, and housing counseling centers.`(4) NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGNS TO PROMOTE HOUSING COUNSELING-`(A) IN GENERAL- The Director of Housing Counseling shall develop, implement, and conduct national public service multimedia campaigns designed to make persons facing mortgage foreclosure, persons considering a subprime mortgage loan to purchase a home, elderly persons, persons who face language barriers, low-income persons, and other potentially vulnerable consumers aware that it is advisable, before seeking or maintaining a residential mortgage loan, to obtain homeownership counseling from an unbiased and reliable sources and that such homeownership counseling is available, including through programs sponsored by the Secretary of Housing and Urban Development.`(B) CONTACT INFORMATION- Each segment of the multimedia campaign under subparagraph (A) shall publicize the toll-free telephone number and web site of the Department of Housing and Urban Development through which persons seeking housing counseling can locate a housing counseling agency in their State that is certified by the Secretary of Housing and Urban Developmentnationwide mortgage licensing and can provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages.`(C) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Secretary, not to exceed $3,000,000 for fiscal years 2008, 2009, and 2010, for the develop, implement, and conduct of national public service multimedia campaigns under this paragraph.`(5) EDUCATION PROGRAMS- The Secretary shall provide advice and technical assistance to States, units of general local government, and nonprofit organizations regarding the establishment and operation of, including assistance with the development of content and materials for, educational programs to inform and educate consumers, particularly those most vulnerable with respect to residential mortgage loans (such as elderly persons, persons facing language barriers, low-income persons, and other potentially vulnerable consumers), regarding home mortgages, mortgage refinancing, home equity loans, and home repair loans.'.(b) Conforming Amendments to Grant Program for Homeownership Counseling Organizations- Section 106(c)(5)(A)(ii) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(c)(5)(A)(ii)) is amended--(1) in subclause (III), by striking `and' at the end;(2) in subclause (IV) by striking the period at the end and inserting `; and'; and(3) by inserting after subclause (IV) the following new subclause:

`(V) notify the housing or mortgage applicant of the availability of mortgage software systems provided pursuant to subsection (g)(3).'.

SEC. 134. GRANTS FOR HOUSING COUNSELING ASSISTANCE.Section 106(a) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(a)(3)) is amended by adding at the end the following new paragraph:

`(4) Homeownership and Rental Counseling Assistance-`(A) IN GENERAL- The Secretary shall make financial assistance available under this paragraph to States, units of general local governments, and nonprofit organizations providing homeownership or rental counseling (as such terms are defined in subsection (g)(1)).`(B) QUALIFIED ENTITIES- The Secretary shall establish standards and guidelines for eligibility of organizations (including governmental and nonprofit organizations) to receive assistance under this paragraph.`(C) DISTRIBUTION- Assistance made available under this paragraph shall be distributed in a manner that encourages efficient and successful counseling programs.`(D) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated $45,000,000 for each of fiscal years 2008 through 2011 for--`(i) the operations of the Office of Housing Counseling of the Department of Housing and Urban Development;`(ii) the responsibilities of the Secretary under paragraphs (2) through (5) of subsection (g); and`(iii) assistance pursuant to this paragraph for entities providing homeownership and rental counseling.'.

SEC. 135. REQUIREMENTS TO USE HUD-CERTIFIED COUNSELORS UNDER HUD PROGRAMS.Section 106(e) of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)) is amended--(1) by striking paragraph (1) and inserting the following new paragraph:

`(1) REQUIREMENT FOR ASSISTANCE- An organization may not receive assistance for counseling activities under subsection (a)(1)(iii), (a)(2), (a)(4), (c), or (d) of this section, or under section 101(e), unless the organization, or the individuals through which the organization provides such counseling, has been certified by the Secretary under this subsection as competent to provide such counseling.';

(2) in paragraph (2)--(A) by inserting `and for certifying organizations' before the period at the end of the first sentence; and(B) in the second sentence by striking `for certification' and inserting `, for certification of an organization, that each individual through which the organization provides counseling shall demonstrate, and, for certification of an individual,';(3) in paragraph (3), by inserting `organizations and' before `individuals';(4) by redesignating paragraph (3) as paragraph (5); and(5) by inserting after paragraph (2) the following new paragraphs:`(3) REQUIREMENT UNDERregistry system.CommentsClose CommentsPermalink




Sec. 1510. Fees.CommentsClose CommentsPermalink





Sec. 1511. Background checks of loan originators.CommentsClose CommentsPermalink





Sec. 1512. Confidentiality of information.CommentsClose CommentsPermalink





Sec. 1513. Liability provisions.CommentsClose CommentsPermalink





Sec. 1514. Enforcement under HUD PROGRAMS- Any homeownership counseling or rental housing counseling (as such terms are defined in subsection (g)(1)) required under, or provided in connection with, any program administered by the Department of Housing and Urban Development shall be provided only by organizations or counselors certified by the Secretary under this subsection as competent to provide such counseling.`(4) OUTREACH- The Secretary shall take such actions as the Secretary considers appropriate to ensure that individuals and organizations providing homeownership or rental housing counseling are aware of the certification requirements and standards of this subsection and of the training and certification programs under subsection (f).'.SEC. 136. STUDY OF DEFAULTS AND FORECLOSURES.The Secretary of Housing and Urban Development shall conduct an extensive study of the root causes of default and foreclosure of home loans, using as much empirical data as are available. The study shall also examine the role of escrow accounts in helping prime and nonprime borrowers to avoidbackup licensing system.CommentsClose CommentsPermalink





Sec. 1515. State examination authority.CommentsClose CommentsPermalink





Sec. 1516. Reports and recommendations to Congress.CommentsClose CommentsPermalink





Sec. 1517. Study and reports on defaults and foreclosures.CommentsClose CommentsPermalink

TITLE II--FHA REFORM AND MANUFACTURED HOUSING LOAN INSURANCE MODERNIZATIONSubtitle AVI--MISCELLANEOUS

TITLE I--FHA ReformSEC. 201. SHORT TITLE.This subtitle may be cited as the `ExpanMODERNIZATION ACT OF 2008

Subtitle A--Building American Homeownership

Act of 2008'.SEC. 202. FINDINGS AND PURPOSES.(a) Findings- The Congress finds that--(1) one of the primary missions of the Federal Housing Administration (FHA) single family mortgage insurance program is to reach borrowers who are underserved, or not served, by the existing conventional mortgage marketplace;(2) the FHA program has a long history of innovation, which includes pioneering the 30-year self-amortizing mortgage and a safe-to-seniors reverse mortgage product, both of which were once thought too risky to private lenders;(3) the FHA single family mortgage insurance program traditionally has been a major provider of mortgage insurance for home purchases;(4) the FHA mortgage insurance premium structure, as well as FHA's product offerings, should be revised to reflect FHA's enhanced ability to determine risk at the loan level and to allow FHA to better respond to changes in the mortgage market;(5) during past recessions, including the oil-patch downturns in the mid-1980s, FHA remained a viable credit enhancer and was therefore instrumental in preventing a more catastrophic collapse in housing markets and a greater loss of homeowner equity; and(6) as housing price appreciation slows and interest rates rise, many homeowners and prospective homebuyers will need the less-expensive, safer financing alternative that FHA mortgage insurance provides.(b) Purposes- The purposes of this subtitle are--(1) to provide flexibility to FHA to allow for the insurance of housing loans for low- and moderate-income homebuyers during all economic cycles in the mortgage market;(2) to modernize the FHA single family mortgage insurance program by making it more reflective of enhancements to loan-level risk assessments and changes to the mortgage market; and(3) to adjust the loan limits for the single family mortgage insurance program to reflect rising house prices and the increased costs associated with new construction.SEC. 203. MAXIMUM PRINCIPAL LOAN OBLIGATION.(a) In General- Section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)(A)) is amended by striking subparagraph (A) and inserting the following new subparagraph:

`(A) not to exceed the lesser of--`(i) in the case of a 1-family residence, 125 percent of the median 1-family house price in the area, as determined by the Secretary; and in the case of a 2-, 3-, or 4-family residence, the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation determined under such section for a 1-family residence; or`(ii) 175 percent of the dollar amount limitation determined under such section 305(a)(2)(A) for a residence of the applicable size (without regard to any authority to increase such limitations with respect to properties located in Alaska, Guam, Hawaii, or the Virgin Islands and without regard to the high-cost area limitation under such section 305(a)(2)(B));except that the dollar amount limitation in effect under this subparagraph for any size residence for any area may not be less than the greater of: (I) the dollar amount limitation in effect under this section for the area on October 21, 1998; or (II) 65 percent of the dollar amount limitation determined under such section 305(a)(2) for a residence of the applicable size; and except that, if the Secretary determines that market conditions warrant such an increase, the Secretary may, for such period as the Secretary considers appropriate, increase the maximum dollar amount limitation determined pursuant to the preceding provisions of this subparagraph with respect to any particular size or sizes of residences, or with respect to residences located in any particular area or areas, to an amount that does not exceed the maximum dollar amount then otherwise in effect pursuant to the preceding provisions of this subparagraph for such size residence, or for such area (if applicable), by not more than $100,000; and'.

(b) Treatment of Temporary Loan Limit Increase- Subsection (a) and the amendment made by such subsection may not be construed to in any way affect the effectiveness of section 202 of the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 620).SEC. 204. EXTENSION OF MORTGAGE TERM.Paragraph (3) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(3)) is amended--(1) by striking `thirty-five years' and inserting `forty years'; and(2) by striking `(or thirty years if such mortgage is not approved for insurance prior to construction)'.SEC. 205. DOWNPAYMENT SIMPLIFICATION.Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is amended--(1) in paragraph (2)--(A) by striking subparagraph (B) and inserting the following new subparagraph:

`(B) not to exceed an amount equal to the sum of--`(i) the amount of the mortgage premium paid at the time the mortgage is insured; and`(ii) 97.75 percent of the appraised value of the property.';

(B) in the matter after and below subparagraph (B), by striking the second sentence (relating to a definition of `average closing cost') and all that follows through `title 38, United States Code.'; and(C) by striking the last undesignated paragraph (relating to counseling with respect to the responsibilities and financial management involved in homeownership); and(2) in paragraph (9)--(A) by striking the paragraph designation and all that follows through `Provided further, That for' and inserting the following:

`(9) Be executed by a mortgagor who shall have paid on account of the property, in cash or its equivalent, at least 3 percent of the Secretary's estimate of the cost of acquisition (excluding the mortgage insurance premium paid at the time the mortgage is insured). For'; and

(B) by inserting after the period at the end the following: `For purposes of this paragraph, the Secretary shall consider as cash or its equivalent any amounts gifted by a family member (as such term is defined in section 201), the mortgagor's employer or labor union, or a qualified homeownership assistance entity, but only if there is no obligation on the part of the mortgagor to repay the gift: For purposes of the preceding sentence, the term `qualified homeownership assistance entity' means any governmental agency or charity that has a program to provide homeownership assistance to low- and moderate-income families or first-time home buyers, or any private nonprofit organization that has such a program and evidences sufficient fiscal soundness to protect the fiscal integrity of the Sec. 2111. Short title. CommentsClose CommentsPermalink




Sec. 2112. Maximum principal loan obligation.CommentsClose CommentsPermalink





Sec. 2113. Cash investment requirement and prohibition of seller-funded down payment assistance.CommentsClose CommentsPermalink





Sec. 2114. Mortgage insurance premiums.CommentsClose CommentsPermalink





Sec. 2115. Rehabilitation loans.CommentsClose CommentsPermalink





Sec. 2116. Discretionary action.CommentsClose CommentsPermalink





Sec. 2117. Insurance of condominiums.CommentsClose CommentsPermalink





Sec. 2118. Mutual Mortgage Insurance Fund by maintaining a minimum net worth of $4,000,000 of acceptable assets.'.SEC. 206. MORTGAGE INSURANCE PREMIUMS FOR QUALIFIED HOMEOWNERSHIP ASSISTANCE ENTITIES AND HIGHER-RISK BORROWERS.Paragraph (2) of section 203(c) of the National Housing Act (12 U.S.C. 1709(c)(2)) is amended--(1) in subparagraph (A), in the matter preceding subparagraph (A), by striking the first comma after `section 234(c)';(2) in subparagraph (A), by inserting after the period at the end of the second sentence the following: `In the case of a mortgage for which any amounts gifted by a qualified homeownership assistance entity (as such term is defined in paragraph (9) of subsection (b)) that is a private nonprofit organization are treated as cash or its equivalent for purposes of meeting the 3 percent requirement under such paragraph, the premium payment under this subparagraph shall not exceed 3.0 percent of the amount of the original insured principal obligation of the mortgage.'; and(3) by adding at the end the following new subparagraph:

`(C) HIGHER-RISK BORROWERS- The Secretary shall establish underwriting standards that provide for insurance under this section of mortgages described in the matter in this paragraph preceding subparagraph (A) for which the mortgagor has a credit score equivalent to a FICO score of less than 560, and may insure, and make commitments to insure, such mortgages. Such underwriting standards shall include establishing and collecting premium payments that comply with the requirements of this paragraph, except that notwithstanding subparagraph (A), the single premium payment collected at the time of insurance may be established in an amount that does not exceed 3.0 percent of the amount of the original insured principal obligation of the mortgage.'.

SEC. 207. RISK-BASED MORTGAGE INSURANCE PREMIUMS.Section 203(c) of the National Housing Act (12 U.S.C. 1709(c)), as amended by the preceding provisions of this subtitle, is further amended by adding at the end the following new paragraphs:`(4) Flexible Risk-Based Premiums- In the case of a mortgage referred to in paragraph (2)(C) or a mortgage described in the third sentence of subparagraph (A) of paragraph (2) (relating to mortgages for which amounts are gifted by a nonprofit qualified homeownership assistance entity), for which the loan application is received by the mortgagee on or after the date of the enactment of the Expanding American Homeownership Act of 2008:`(A) IN GENERAL- The Secretary may establish a mortgage insurance premium structure involving a single premium payment collected prior to the insurance of the mortgage or annual payments (which may be collected on a periodic basis), or both, subject to the requirements of subparagraph (B) and paragraph (5). Under such structure, the rate of premiums for such a mortgage may vary according to the credit risk associated with the mortgage and the rate of any annual premium for such a mortgage may vary during the mortgage term as long as the basis for determining the variable rate is established before the execution of the mortgage. The Secretary may change a premium structure established under this subclause but only to the extent that such change is not applied to any mortgage already executed.`(B) ESTABLISHMENT AND ALTERATION OF PREMIUM STRUCTURE- A premium structure shall be established or changed under subparagraph (A) only by providing notice to mortgagees and to the Congress, at least 30 days before the .CommentsClose CommentsPermalink




Sec. 2119. Hawaiian home lands and Indian reservations.CommentsClose CommentsPermalink





Sec. 2120. Conforming and technical amendments.CommentsClose CommentsPermalink





Sec. 2121. Insurance of mortgages.CommentsClose CommentsPermalink





Sec. 2122. Home equity conversion mortgages.CommentsClose CommentsPermalink





Sec. 2123. Energy efficient mortgages program.CommentsClose CommentsPermalink





Sec. 2124. Pilot program for automated process for borrowers without sufficient credit history.CommentsClose CommentsPermalink





Sec. 2125. Homeownership preservation.CommentsClose CommentsPermalink





Sec. 2126. Use of FHA savings for improvements in FHA technologies, procedures, processes, program performance, staffing, and salaries.CommentsClose CommentsPermalink





Sec. 2127. Post-purchase housing counseling eligibility improvements.CommentsClose CommentsPermalink





Sec. 2128. Pre-purchase homeownership counseling demonstration.CommentsClose CommentsPermalink





Sec. 2129. Fraud prevention.CommentsClose CommentsPermalink





Sec. 2130. Limitation on mortgage insurance premium structure is established or changed.`(C) ANNUAL REPORT REGARDING PREMIUMS- The Secretary shall submit a report to the Congress annually setting forth the rate structures and rates established and altered pursuant to this paragraph during the preceding 12-month period and describing how such rates were determined.`(5) Considerations for Premium Structure- When establishing premiums for mortgages referred to in paragraph (2)(C), establishing premiums pursuant to paragraph (3), establishing a premium structure under paragraph (4), and when changing such a premium structure, the Secretary shall consider the following:`(A) The effect of the proposed premiums or structure on the Secretary's ability to meet the operational goals of the Mutual Mortgage Insurance Fund as provided in section 202(a).`(B) Underwriting variables.`(C) The extent to which new pricing under the proposed premiums or structure has potential for acceptance in the private market.`(D) The administrative capability of the Secretary to administer the proposed premiums or structure.`(E) The effect of the proposed premiums or structure on the Secretary's ability to maintain the availability of mortgage credit and provide stability to mortgage markets.`(6) Authority to Base Premium Prices on Product Risk-`(A) AUTHORITY- In establishing premium rates under paragraphs (2), (3), and (4), the Secretary may provide for variations in such rates according to the credit risk associated with the type of mortgage product that is being insured under this title, which may include providing that premium rates differ between fixed-rate mortgages and adjustable-rate mortgages insured pursuant to section 251, between mortgages insured pursuant to section 203(b) and mortgages for condominiums insured pursuant to section 234, and between such other products as the Secretary considers appropriate.`(B) LIMITATION- Subparagraph (A) may not be construed to authorize the Secretary to establish, for any mortgage product, any mortgage insurance premium rate that does not comply with the requirements and limitations under paragraphs (2) through (5).'.SEC. 208. PAYMENT INCENTIVES FOR HIGHER-RISK BORROWERS.Section 203(c) of the National Housing Act (12 U.S.C. 1709(c)), as amended by the preceding provisions of this subtitle, is further amended by adding at the end the following new paragraph:

`(7) Payment Incentives-`(A) AUTHORITY- With respect to mortgages referred to in paragraph (2)(C):`(i) DISCRETIONARY 3-YEAR PAYMENT INCENTIVE- The Secretary may provide, in the discretion of the Secretary, that the payment incentive under subparagraph (B) shall apply upon the expiration of the 3-year period beginning upon the time of insurance of such a mortgage.`(ii) MANDATORY 5-YEAR PAYMENT INCENTIVE- The Secretary shall provide that the payment incentive under subparagraph (B) applies upon the expiration of the 5-year period beginning upon the time of insurance of such a mortgage.`(B) PAYMENT INCENTIVE- In the case of any mortgage to which the payment incentive under this subparagraph applies, if, during the period referred to in clause (i) or (ii) of subparagraph (A), as applicable, all mortgage insurance premiums for such mortgage have been paid on a timely basis, upon the expiration of such period the Secretary shall--`(i) reduce the amount of the annual premium payments otherwise due thereafter under such mortgage to an amount that does not exceed the amount of the annual premium payable at the time of insurance of the mortgage on a mortgage of the same product type having the same terms, but for which the mortgagor has a credit score equivalent to a FICO score of 560 or more; and`(ii) refund to the mortgagor, upon payment in full of the obligation of the mortgage, any amount by which the single premium payment for such mortgage collected at the time of insurance exceeded the amount of the single premium payment chargeable under paragraph (2)(A) at the time of insurance for a mortgage of the same product type having the same terms, but for which the mortgagor has a credit score equivalent to a FICO score of 560 or more.'.

SEC. 209. PROTECTIONS FOR HIGHER-RISK BORROWERS.Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) is amended by adding at the end the following new paragraph:

`(10) PROTECTIONS FOR HIGHER-RISK BORROWERS- Except as otherwise specifically provided in this paragraph, in the case of any mortgage referred to in paragraph (2)(C) of subsection (c), the following requirements shall apply:`(A) DISCLOSURES-`(i) REQUIRED DISCLOSURES- In addition to any disclosures that are otherwise required by law or by the Secretary for single family mortgages, the mortgagee shall disclose to the mortgagor the following information:`(I) AT APPLICATION- At the time of application for the loan involved in the mortgage, a list of counseling agencies, approved by the Secretary, in the area of the applicant.`(II) AT EXECUTION- At the time of entering into the mortgage--

`(aa) the terms of the mandatory 5-year payment incentive required under subsection (c)(7)(A)(ii); and`(bb) a statement that the mortgagor has a right under contract to loss mitigation.`(III) OTHER INFORMATION- Any other additional information that the Secretary determines is appropriate to ensure that the mortgagor has received timely and accurate information about the program under paragraph (2)(C) of subsection (c).`(ii) PENALTIES FOR FAILURE TO PROVIDE REQUIRED DISCLOSURES- The Secretary may establish and impose appropriate penalties for failure of a mortgagee to provide any disclosure required under clause (i).`(iii) NO PRIVATE RIGHT OF ACTION- This subparagraph shall not create any private right of action on behalf of the mortgagor.`(B) COUNSELING-`(i) REQUIREMENT- The Secretary shall require that the mortgagor shall have received counseling that complies with the requirements of this subparagraph.`(ii) TERMS OF COUNSELING- Counseling under this subparagraph shall be provided--`(I) prior to closing for the loan involved in the mortgage;`(II) by a third party (other than the mortgagee) who is approved by the Secretary, with respect to the responsibilities and financial management involved in homeownership;`(III) on an individual basis to the mortgagor by a representative of the approved third-party counseling entity; and`(IV) in person, to the maximum extent possible.`(iii) 2- AND 3-FAMILY RESIDENCES- In the case of a mortgage involving a 2- or 3-family residence, counseling under this subparagraph shall include (in addition to the information required under clause (iii)) information regarding real estate property management.`(C) NOTICE OF FORECLOSURE PREVENTION COUNSELING AVAILABILITY-`(i) WRITTEN AGREEMENT- To be eligible for insurance under this subsection, the mortgagee shall provide the mortgagor, at the time of the execution of the mortgage, a written agreement which shall be signed by the mortgagor and under which the mortgagee shall provide notice described in clause (ii) to a housing counseling entity that has agreed to provide the notice and counseling required under clause (iii) and is approved by the Secretary.`(ii) NOTICE TO COUNSELING AGENCY- The notice described in this clause, with respect to a mortgage, is notice, provided at the earliest time practicable after the mortgagor becomes 60 days delinquent with respect to any payment due under the mortgage, that the mortgagor is so delinquent and of how to contact the mortgagor. Such notice may only be provided once with respect to each delinquency period for a mortgage.`(iii) NOTICE TO MORTGAGOR- Upon notice from a mortgagee that a mortgagor is 60 days delinquent with respect to payments due under the mortgage, the housing counseling entity shall at the earliest time practicable notify the mortgagor of such delinquency, that the entity makes available foreclosure prevention counseling that may assist the mortgagor in resolving the delinquency, and of how to contact the entity to arrange for such counseling.`(iv) ABILITY TO CURE- Failure to provide the written agreement required under clause (i) may be corrected by sending such agreement to the mortgagor not later than the earliest time practicable after the mortgagor first becomes 60 days delinquent with respect to payments due under the mortgage. Insurance provided under this subsection may not be terminated and penalties for such failure may not be prospectively or retroactively imposed if such failure is corrected in accordance with this clause.`(v) PENALTIES FOR FAILURE TO PROVIDE AGREEMENT- The Secretary may establish and impose appropriate penalties for failure of a mortgagee to provide the written agreement required under clause (i).`(vi) LIMITATION ON LIABILITY OF MORTGAGEE- A mortgagee shall not incur any liability or penalties for any failure of a housing counseling entity to provide notice under clause (iii).`(vii) NO PRIVATE RIGHT OF ACTION- This subparagraph shall not create any private right of action on behalf of the mortgagor.`(viii) DELINQUENCY PERIOD- For purposes of this subparagraph, the term `delinquency period' means, with respect to a mortgage, a period that begins upon the mortgagor becoming delinquent with respect to payments due under the mortgage and ends upon the first subsequent occurrence of such payments under the mortgage becoming current or the property subject to the mortgage being foreclosed or otherwise disposed of.'.

SEC. 210. REFINANCING MORTGAGES.Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by inserting after subsection (k) the following new subsection:

`(l) Refinancing Mortgages-`(1) ESTABLISHMENT OF UNDERWRITING STANDARDS- The Secretary shall establish underwriting standards that provide for insurance under this title of mortgage loans, and take actions to facilitate the availability of mortgage loans insured under this title, for qualified borrowers that are made for the purpose of paying or prepaying outstanding obligations under existing mortgages for borrowers that--`(A) have existing mortgages with adverse terms or rates, or`(B) do not have access to mortgages at reasonable rates and terms for such refinancings due to adverse market conditions.`(2) INSURANCE OF MORTGAGES TO BORROWERS IN DEFAULT OR AT RISK OF DEFAULT- In facilitating insurance for such mortgages, the Secretary may insure mortgages to borrowers who are, currently in default or at imminent risk of being in default, but only if such loans meet reasonable underwriting standards established by the Secretary.'.

SEC. 211. ANNUAL REPORTS ON NEW PROGRAMS AND LOSS MITIGATION.Section 540(b)(2) of the National Housing Act (12 U.S.C. 1735f-18(b)(2)) is amended, by adding at the end the following new subparagraphs:

`(C) The rates of default and foreclosure for the applicable collection period for mortgages insured pursuant to the program for mortgage insurance under paragraph (2)(C) of section 203(c).`(D) Actions taken by the Secretary during the applicable collection period with respect to loss mitigation on mortgages insured pursuant to section 203.'.

SEC. 212. INSURANCE FOR SINGLE FAMILY HOMES WITH LICENSED CHILD CARE FACILITIES.(a) Definition of Child Care Facility- Section 201 of the National Housing Act (12 U.S.C. 1707) is amended by adding at the end the following new subsection:

`(g) The term `child care facility' means a facility that--`(A) has as its purpose the care of children who are less than 12 years of age; and`(B) is licensed or regulated by the State in which it is located (or, if there is no State law providing for such licensing and regulation by the State, by the municipality or other political subdivision in which the facility is located).

Such term does not include facilities for school-age children primarily for use during normal school hours.'.(b) Increase in Maximum Mortgage Amount Limitation- Paragraph (2) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(2)), as amended by the preceding provisions of this subtitle, is further amended by adding at end the following new undesignated paragraph:

`Notwithstanding any other provision of this paragraph, the amount that may be insured under this section may be increased by up to 25 percent if such increase is necessary to account for the increased cost of the residence due to an increased need of space in the residence for locating and operating a child care facility (as such term is defined in section 201) within the residence, but only if a valid license or certificate of compliance with regulations described in section 201(g)(2) has been issued for such facility as of the date of the execution of the mortgage, and only if such increase in the amount insured is proportional to the amount of space of such residence that will be used for such facility.'.

SEC. 213. REHABILITATION LOANS.Subsection (k) of section 203 of the National Housing Act (12 U.S.C. 1709(k)) is amended--(1) in paragraph (1), by striking `on' and all that follows through `1978'; and(2) in paragraph (5)--(A) by striking `General Insurance Fund' the first place it appears and inserting `Mutual Mortgage Insurance Fund'; and(B) in the second sentence, by striking the comma and all that follows through `General Insurance Fund'.SEC. 214. DISCRETIONARY ACTION.The National Housing Act is amended--(1) in subsection (e) of section 202 (12 U.S.C. 1708(e))--(A) in paragraph (3)(B), by striking `section 202(e) of the National Housing Act' and inserting `this subsection'; and(B) by redesignating such subsection as subsection (f);(2) by striking paragraph (4) of section 203(s) (12 U.S.C. 1709(s)(4)) and inserting the following new paragraph:

`(4) the Secretary of Agriculture;'; and

(3) by transferring subsection (s) of section 203 (as amended by paragraph (2) of this section) to section 202, inserting such subsection after subsection (d) of section 202, and redesignating such subsection as subsection (e).SEC. 215. INSURANCE OF CONDOMINIUMS AND MANUFACTURED HOUSING.(a) In General- Section 234 of the National Housing Act (12 U.S.C. 1715y) is amended--(1) in subsection (c)--(A) in the first sentence--(i) by striking `and' before `(2)'; and(ii) by inserting before the period at the end the following: `, and (3) the project has a blanket mortgage insured by the Secretary under subsection (d)'; and(B) in clause (B) of the third sentence, by striking `thirty-five years' and inserting `forty years'; and(2) in subsection (g), by striking `, except that' and all that follows and inserting a period.(b) Definition of Mortgage- Section 201(a) of the National Housing Act (12 U.S.C. 1707(a)) is amended--(1) before ` a first mortgage' insert `(A)';(2) by striking `or on a leasehold (1)' and inserting `(B) a first mortgage on a leasehold on real estate (i)';(3) by striking `or (2)' and inserting `, or (ii)'; and(4) by inserting before the semicolon the following: `, or (C) a first mortgage given to secure the unpaid purchase price of a fee interest in, or long-term leasehold interest in, real estate consisting of a one-family unit in a multifamily project, including a project in which the dwelling units are attached, or are manufactured housing units, semi-detached, or detached, and an undivided interest in the common areas and facilities which serve the project'.(c) Definition of Real Estate- Section 201 of the National Housing Act (12 U.S.C. 1707), as amended by the preceding provisions of this subtitle, is further amended by adding at the end the following new subsection:

`(h) The term `real estate' means land and all natural resources and structures permanently affixed to the land, including residential buildings and stationary manufactured housing. The Secretary may not require, for treatment of any land or other property as real estate for purposes of this title, that such land or property be treated as real estate for purposes of State taxation.'.

SEC. 216. MUTUAL MORTGAGE INSURANCE FUND.(a) In General- Subsection (a) of section 202 of the National Housing Act (12 U.S.C. 1708(a)) is amended to read as follows:`(a) Mutual Mortgage Insurance Fund-`(1) ESTABLISHMENT- Subject to the provisions of the Federal Credit Reform Act of 1990, there is hereby created a Mutual Mortgage Insurance Fund (in this title referred to as the `Fund'), which shall be used by the Secretary to carry out the provisions of this title with respect to mortgages insured under section 203. The Secretary may enter into commitments to guarantee, and may guarantee, such insured mortgages.`(2) LIMIT ON LOAN GUARANTEES- The authority of the Secretary to enter into commitments to guarantee such insured mortgages shall be effective for any fiscal year only to the extent that the aggregate original principal loan amount under such mortgages, any part of which is guaranteed, does not exceed the amount specified in appropriations Acts for such fiscal year.`(3) FIDUCIARY RESPONSIBILITY- The Secretary has a responsibility to ensure that the Mutual Mortgage Insurance Fund remains financially sound.`(4) ANNUAL INDEPENDENT ACTUARIAL STUDY- The Secretary shall provide for an independent actuarial study of the Fund to be conducted annually, which shall analyze the financial position of the Fund. The Secretary shall submit a report annually to the Congress describing the results of such study and assessing the financial status of the Fund. The report shall recommend adjustments to underwriting standards, program participation, or premiums, if necessary, to ensure that the Fund remains financially sound.`(5) QUARTERLY REPORTS- During each fiscal year, the Secretary shall submit a report to the Congress for each quarter, which shall specify for mortgages that are obligations of the Fund--`(A) the cumulative volume of loan guarantee commitments 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 projected 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 toincreases.CommentsClose CommentsPermalink




Sec. 2131. Savings provision.CommentsClose CommentsPermalink





Sec. 2132. Implementation.CommentsClose CommentsPermalink





Sec. 2133. Moratorium on implementation of risk-based premiums.CommentsClose CommentsPermalink

Sec. 2141. Short title.CommentsClose CommentsPermalink





Sec. 2142. Purposes.CommentsClose CommentsPermalink





Sec. 2143. Exception to limitation on financial institution portfolio.CommentsClose CommentsPermalink





Sec. 2144. Insurance benefits.CommentsClose CommentsPermalink





Sec. 2145. Maximum loan limits.CommentsClose CommentsPermalink





Sec. 2146. Insurance premiums.CommentsClose CommentsPermalink





Sec. 2147. Technical corrections.CommentsClose CommentsPermalink





Sec. 2148. Revision of underwriting standards, program participation, or premiums, and the financial soundness of the Fund is maintained.The first quarterly report under this paragraph shall be submitted on the last day of the first quarter of fiscal year 2008, or upon the expiration of the 90-day period beginning on the date of the enactment of the Expanding American Homeownership Act of 2008, whichever is later.`(6) ADJUSTMENT OF PREMIUMS- If, pursuant to the independent actuarial study of the Fund required under paragraph (5), the Secretary determines that the Fund is not meeting the operational goals established under paragraph (8) 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 section 203 as necessary to reduce the risk to the Fund, or make appropriate premium adjustments.`(7) OPERATIONAL GOALS- The operational goals for the Fund are--`(A) to charge borrowers under loans that are obligations of the Fund an appropriate premium for the risk that such loans pose to the Fund;`(B) to minimize the default risk to the Fund and to homeowners;`(C) to curtail the impact of adverse selection on the Fund; and`(D) to meet the housing needs of the borrowers that the single family mortgage insurance program under this title is designed to serve.'.(b) Obligations of Fund- The National Housing Act is amended as follows:(1) HOMEOWNERSHIP VOUCHER PROGRAM MORTGAGES- In section 203(v) (12 U.S.C. 1709(v))--(A) by striking `Notwithstanding section 202 of this title, the' and inserting `The'; and(B) by striking `General Insurance Fund' the first place such term appears and all that follows and inserting `Mutual Mortgage Insurance Fund.'.(2) HOME EQUITY CONVERSION MORTGAGES- Section 255(i)(2)(A) of the National Housing Act (12 U.S.C. 1715z-20(i)(2)(A)) is amended by striking `General Insurance Fund' and inserting `Mutual Mortgage Insurance Fund'.(c) Conforming Amendments- The National Housing Act is amended--(1) in section 205 (12 U.S.C. 1711), by striking subsections (g) and (h); and(2) in section 519(e) (12 U.S.C. 1735c(e)), by striking `203(b)' and all that follows through `203(i)' and inserting `203, except as determined by the Secretary'.SEC. 217. HAWAIIAN HOME LANDS AND INDIAN RESERVATIONS.(a) Hawaiian Home Lands- Section 247(c) of the National Housing Act (12 U.S.C. 1715z-12) is amended--(1) by striking `General Insurance Fund established in section 519' and inserting `Mutual Mortgage Insurance Fund'; and(2) in the second sentence, by striking `(1) all references' and all that follows through `and (2)'.(b) Indian Reservations- Section 248(f) of the National Housing Act (12 U.S.C. 1715z-13) is amended--(1) by striking `General Insurance Fund' the first place it appears and all that follows through `519' and inserting `Mutual Mortgage Insurance Fund'; and(2) in the second sentence, by striking `(1) all references' and all that follows through `and (2)'.SEC. 218. CONFORMING AND TECHNICAL AMENDMENTS.(a) Repeals- The following provisions of the National Housing Act are repealed:(1) Subsection (i) of section 203 (12 U.S.C. 1709(i)).(2) Subsection (o) of section 203 (12 U.S.C. 1709(o)).(3) Subsection (p) of section 203 (12 U.S.C. 1709(p)).(4) Subsection (q) of section 203 (12 U.S.C. 1709(q)).(5) Section 222 (12 U.S.C. 1715m).(6) Section 237 (12 U.S.C. 1715z-2).(7) Section 245 (12 U.S.C. 1715z-10).(b) Definition of Area- Section 203(u)(2)(A) of the National Housing Act (12 U.S.C. 1709(u)(2)(A)) is amended by striking `shall' and all that follows and inserting `means a metropolitan statistical area as established by the Office of Management and Budget;'.(c) Definition of State- Section 201(d) of the National Housing Act (12 U.S.C. 1707(d)) is amended by striking `the Trust Territory of the Pacific Islands' and inserting `the Commonwealth of the Northern Mariana Islands'.SEC. 219. HOME EQUITY CONVERSION MORTGAGES.(a) In General- Section 255 of the National Housing Act (12 U.S.C. 1715z-20) is amended--(1) in subsection (b)(2), insert `real estate,' after `mortgagor',';(2) in subsection (b)(4), by striking subparagraph (B) and inserting the following new subparagraph:

`(B) under a lease that has a term that ends no earlier than the minimum number of years, as specified by the Secretary, beyond the actuarial life expectancy of the mortgagor or comortgagor, whichever is the later date.'.

(3) in the second sentence of subsection (g), by striking `the maximum dollar amount established under section 203(b)(2)' and all that follows through `located' and inserting `132 percent of the dollar amount limitation determined under section 305(a)(2)(A) of the Federal Home Loan Mortgage Corporation Act for a 1-family residence (without regard to any authority to increase such limitations with respect to properties located in Alaska, Guam, Hawaii, or the Virgin Islands and without regard to the high-cost area limitation under such section 305(a)(2)(B))';(4) in subsection (i)(1)(C), by striking `limitations' and inserting `limitation'; and(5) by adding at the end the following new subsection:

`(o) Authority to Insure Home Purchase Mortgages-`(1) IN GENERAL- Notwithstanding any other provision in this section, the Secretary may insure, upon application by a mortgagee, a home equity conversion mortgage upon such terms and conditions as the Secretary may prescribe, when the primary purpose of the home equity conversion mortgage is to enable an elderly mortgagor to purchase a 1- to 4-family dwelling in which the mortgagor will occupy or occupies one of the units.`(2) LIMITATION ON PRINCIPAL OBLIGATION- A home equity conversion mortgage insured pursuant to paragraph (1) shall involve a principal obligation that does not exceed the limitation under subsection (g) of this section on the maximum amount of the benefits of insurance under this section.'.

(b) Mortgages for Cooperatives- Subsection (b) of section 255 of the National Housing Act (12 U.S.C. 1715z-20(b)) is amended--(1) in paragraph (4)--(A) by inserting `a first or subordinate mortgage or lien' before `on all stock';(B) by inserting `unit' after `dwelling'; and(C) by inserting `a first mortgage or first lien' before `on a leasehold'; and(2) in paragraph (5), by inserting `a first or subordinate lien on' before `all stock'.(c) Prohibition on Required Purchase of an Annuity- Section 255 of the National Housing Act of 1937 (12 U.S.C. 1715z-20) is amended--(1) by striking subparagraph (B) of subsection (d)(2) and inserting the following new subparagraph:

`(B) has received adequate counseling by a third party (other than a reverse mortgage lender, servicer or investor, or an entity engaged in the sale of annuities, investments, long-term care insurance, or any other type of financial or insurance product) as provided in subsection (f);';

(2) by striking the first sentence of subsection (f) and inserting the following new sentence: `The Secretary shall provide or cause to be provided and paid for by entities other than a reverse mortgage lender, servicer or investor, or an entity engaged in the sale of annuities, investments, long-term care insurance, or any other type of financial or insurance product the information required in subsection (d)(2)(B).'; and(3) by striking subsections (l) and (m) and inserting the following new subsection:

`(l) Regulations to Protect Elderly Homeowners-`(1) IN GENERAL- Not later than 6 months after the date of the enactment of the Expanding American Homeownership Act of 2008, the Secretary shall, in consultation with other relevant Federal departments and agencies, prescribe regulations to help protect elderly homeowners from the marketing of financial and insurance products not in the interest of such homeowners, including the marketing or sale of an annuity as a condition of obtaining any home equity conversion mortgage.`(2) CONSULTATION- In developing the regulations required under paragraph (1), the Secretary shall consult with consumer advocates (including recognized experts in consumer protection), industry representatives, representatives of counseling organizations, and other interested parties.'.

(d) Limitation on Origination Fees- Section 255 of the National Housing Act (12 U.S.C. 1715z-20), as amended by the preceding provisions of this section, is further amended--(1) by redesignating subsections (k), (l), and (m) as subsections (l), (m), and (n), respectively; and(2) by inserting after subsection (j) the following new subsection:

`(k) Limitation on Origination Fees- The Secretary shall establish limits on the origination fee that may be charged to a mortgagor under a mortgage insured under this section, which limitations shall--`(1) be equal to 2.0 percent of the maximum claim amount of the mortgage up to a maximum claim amount of $200,000 plus 1 percent of any portion of the maximum claim amount that is greater than $200,000, unless adjusted thereafter on the basis of an analysis of (A) costs to mortgagors, and (B) the impact on the reverse mortgage market;`(2) be subject to a minimum allowable amount;`(3) provide that the origination fee may be fully financed with the mortgage;`(4) include any fees paid to correspondent mortgagees approved by the Secretary or to mortgage brokers;`(5) apply beginning upon the date that the maximum dollar amount limitation on the benefits of insurance under this section is first increased pursuant to the amendments made by section 219(a)(3) of the Expanding American Homeownership Act of 2008; and`(6) be subject to a maximum origination fee of $6,000, except that such maximum limit shall be adjusted in accordance with the annual percentage increase in the Consumer Price Index of the Bureau of Labor Statistics of the Department of Labor in increments of $500 only when the percentage increase in such index, when applied to the maximum origination fee, produce dollar increases that exceed $500.'.

(e) Study Regarding Mortgage Insurance Premiums- The Secretary of Housing and Urban Development shall conduct a study regarding mortgage insurance premiums charged under the program under section 255 of the National Housing Act (12 U.S.C. 1715z-20) for insurance of home equity conversion mortgages to analyze and determine the effects of reducing the amounts of such premiums from the amounts charged as of the date of the enactment of this Act on: (1) costs to mortgagors; and (2) the financial soundness of the program. Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary shall submit a report to the Congress setting forth the results and conclusions of the study.(f) Purchase Authority of Fannie Mae and Freddie Mac-(1) FANNIE MAE- Section 302(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the following:

`(7) The corporation is authorized to purchase, service, sell, lend on the security of, and otherwise deal in any mortgage insured under section 255 of the National Housing Act (12 U.S.C. 1715z-20), notwithstanding the limitations under paragraph (2) on the maximum original principal obligations of mortgages.'.

(2) FREDDIE MAC- Section 305(a) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the following:

`(6) The Corporation is authorized to purchase, service, sell, lend on the security of, and otherwise deal in any mortgage insured under section 255 of the National Housing Act (12 U.S.C. 1715z-20), notwithstanding the limitations under paragraph (2) on the maximum original principal obligations of mortgages.'.

SEC. 220. STUDY ON PARTICIPATION OF criteria.CommentsClose CommentsPermalink




Sec. 2149. Prohibition against kickbacks and unearned fees.CommentsClose CommentsPermalink





Sec. 2150. Leasehold requirements.CommentsClose CommentsPermalink

TITLE II--MORTGAGE BROKERS AND CORRESPONDENT LENDERS.(a) Study- The Comptroller General of the United States shall conduct a study, which shall be completed not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, which shall analyze and determine--(1) the extent to which the financial audit and net worth requirements impede participation by mortgage brokers and correspondent lenders in the mortgage insurance programs under the National Housing Act, as measured by the number and value of such insured mortgages, disaggregated by the States in which the properties subject to such mortgages are located;(2) the extent and effectiveness of the financial audit and net worth requirements in protecting the Mutual Mortgage Insurance Fund;(3) the extent and effectiveness of the supervision and quality control enforcement, by the Secretary, of mortgagees in the FHA program, separate from the financial audit and net worth requirements for participation, in protecting the Mutual Mortgage Insurance Fund;(4) the extent to which allowing a mortgage broker to secure a surety bond in lieu of the financial audit and net worth requirements would increase participation by mortgage brokers and correspondent lenders in the mortgage insurance programs under the National Housing Act;(5) the extent to which allowing a mortgage broker to secure a surety bond in lieu of the financial audit and net worth requirements would protect the Mutual Mortgage Insurance Fund; and(6) the potential impact of such changes on the costs incurred by the Secretary of Housing and Urban Development in administering the mortgage insurance programs under such Act.(b) GAO Report- Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress and the Secretary of Housing and Urban Development setting forth the results and conclusions of the study conducted pursuant to subsection (a).(c) HUD Report- Not later than the expiration of the 18-month period beginning upon the date of the enactment of this Act, the Secretary of Housing and Urban Development may submit a report to the Congress making recommendations regarding any changes in requirements for participation of mortgage brokers and correspondent lenders in the mortgage insurance programs under the National Housing Act arising from a review of the study conducted pursuant to subsection (a).SEC. 221. CONFORMING LOAN LIMIT IN DISASTER AREAS.Section 203(h) of the National Housing Act (12 U.S.C. 1709) is amended--(1) by inserting after `property' the following: `plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary,';(2) by striking the second sentence (as added by chapter 7 of the Emergency Supplemental Appropriations Act of 1994 (Public Law 103-211; 108 Stat. 12)); and(3) by adding at the end the following new sentence: `In any case in which the single family residence to be insured under this subsection is within a jurisdiction in which the President has declared a major disaster to have occurred, the Secretary is authorized, for a temporary period not to exceed 36 months from the date of such Presidential declaration, to enter into agreements to insure a mortgage which involves a principal obligation of up to 100 percent of the dollar limitation determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act for a single family residence, and not in excess of 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection and other fees in connection with the mortgage as approved by the Secretary.'.SEC. 222. FAILURE TO PAY AMOUNTS FROM ESCROW ACCOUNTS FOR SINGLE FAMILY MORTGAGES.(a) Penalties- Section 536 of the National Housing Act (12 U.S.C. 1735f-14) is amended--(1) in subsection (a)(1), by inserting `servicers (including escrow account servicers),' after `appraisers,';(2) in subsection (b)(1)--(A) in the matter preceding subparagraph (A), by inserting `or other participant referred to in subsection (a),' after `lender,'; and(B) by inserting at the end the following new subparagraphs:`(K) In the case of a mortgage for a 1- to 4-family residence insured under title II that requires the mortgagor to make payments to the mortgagee or other servicer of the mortgage for deposit into an escrow account for the purposeFORECLOSURE PROTECTIONS FOR SERVICEMEMBERS

Sec. 2201. Temporary increase in maximum loan guaranty amount for certain housing loans guaranteed by the Secretary of assuring payment of taxes, insurance premiums, and other charges with respect to the property, failure on the part of the servicer to make any such payment from the escrow account by the deadline to avoid a penalty with respect to such payment provided for in the mortgage, unless the servicer was not provided notice of such deadline.`(L) In the case of any failure to make any payment as described in subparagraph (K), submitting any information to a consumer reporting agency (as such term is defined in section 603(f)Veterans Affairs.CommentsClose CommentsPermalink





Sec. 2202. Counseling on mortgage foreclosures for members of the Fair Credit Reporting Act (15 U.S.C. 1681a(f))) regarding such failure that is adverse to the credit rating or interest of the mortgagor.'; and(3) in subsection (c)(3), by adding at the end the following: `In the case of any failure to make a payment described in subsection (b)(1)(K) for which the servicer fails to reimburse the mortgagor (A) before the expiration ofArmed Forces returning from service abroad.CommentsClose CommentsPermalink





Sec. 2203. Enhancement of protections for servicemembers relating to mortgages and mortgage foreclosures.CommentsClose CommentsPermalink

Sec. 2301. Emergency assistance for the 60-day period beginning on the deadline to avoid a penalty with respect to such payment, in the sum of the amount not paid from the escrow account by such deadline and the amount of any penalties accruing to the mortgagor that are attributable to such failure, or (B) in the amount of any attorneys fees incurred by the mortgagor and attributable to such failure, the Secretary shall increase the amount of the penalty under subsection (a) for any such failure to reimburse, unless the Secretary determines there are mitigating circumstances.'.(b) Prohibition on Submission of Information by HUD- Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by adding at the end the following new section:

`SEC. 257. PROHIBITION REGARDING FAILURE ON PART OF SERVICER TO MAKE ESCROW PAYMENTS.`In the case of any failure to make any payment as described in section 536(b)(1)(K), the Secretary may not submit any information to a consumer reporting agency (as such term is defined in section 603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f))) regarding such failure that is adverse to the credit rating or interest of the mortgagor.'.

SEC. 223. ACCEPTABLE IDENTIFICATION FOR FHA MORTGAGORS.(a) In General- Title II of the National Housing Act is amended by inserting after section 209 (12 U.S.C. 1715) the following new section:

`SEC. 210. FORMS OF ACCEPTABLE IDENTIFICATION.`The Secretary may not insure a mortgage under any provision of this title unless the mortgagor under the mortgage provides personal identification in one of the following forms:`(1) A valid social security number verified in accordance with paragraph 3-1 C of chapter 3 of HUD Handbook 4155.1 REV-5.`(2) A driver's license or identification card issued by a State in the case of a State that is in compliance with title II of the REAL ID Act of 2005 (title II of division B ofPublic Law 109-13; 49 U.S.C. 30301 note).`(3) A passport issued by the United States or a foreign government.`(4) A photo identification card issued by the Secretary of Homeland Security (acting through the Director of the United States Citizenship and Immigration Services).'.(b) Effective Date- The requirements of section 210 of the National Housing Act (as added by subsection (a) of this section) shall take effect 6 months after the date of the enactment of this Act.

SEC. 224. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS WITHOUT SUFFICIENT CREDIT HISTORY.(a) Establishment- Title II of the National Housing Act (12 U.S.C. 1707 et seq.), as amended by the preceding provisions of this subtitle, is further amended by adding at the end the following new section:

`SEC. 258. PILOT PROGRAM FOR AUTOMATED PROCESS FOR BORROWERS WITHOUT SUFFICIENT CREDIT HISTORY.`(a) Establishment- The Secretary shall carry out a pilot program to establish, and make available to mortgagees, an automated process for providing alternative credit rating information for mortgagors and prospective mortgagors under mortgages on 1- to 4-family residences to be insured under this title who have insufficient credit histories for determining their creditworthiness. Such alternative credit rating information may include rent, utilities, and insurance payment histories, and such other information as the Secretary considers appropriate.`(b) Scope- The Secretary may carry out the pilot program under this section on a limited basis or scope, and may consider limiting the program--`(1) to first-time homebuyers; or`(2) metropolitan statistical areas significantly impacted by subprime lending.`(c) Limitation- In any fiscal year, the aggregate number of mortgages insured pursuant to the automated process established under this section may not exceed 5 percent of the aggregate number of mortgages for 1- to 4-family residences insured by the Secretary under this title during the preceding fiscal year.`(d) Sunset- After the expiration of the 5-year period beginning on the date of the enactment of the Expanding American Homeownership Act of 2008, the Secretary may not enter into any new commitment to insure any mortgage, or newly insure any mortgage, pursuant to the automated process established under this section.'.(b) GAO Report- Not later than the expiration of the 4-year period beginning on the date that the Secretary of Housing and Urban Development first insures any mortgage pursuant to the automated process established under pilot program under section 258 of the National Housing Act (as added by the amendment made by subsection (a) of this section), the Comptroller General of the United States shall submit to the Congress a report identifying the number of additional mortgagors served using such automated process and the impact of such process and the insurance of mortgages pursuant to such process on the safety and soundness of the insurance funds under the National Housing Act of which such mortgages are obligations.

SEC. 225. SENSE OF CONGRESS REGARDING TECHNOLOGY FOR FINANCIAL SYSTEMS.(a) Congressional Findings- The Congress finds the following:(1) The Government Accountability Office has cited the FHA single family housing mortgage insurance program as a `high-risk' program, with a primary reason being non-integrated and out-dated financial management systems.(2) The `Audit of the Federal Housing Administration's Financial Statements for Fiscal Years 2004 and 2003', conducted by the Inspector General of the Department of Housing and Urban Development reported as a material weakness that `HUD/FHA's automated data processing [ADP] system environment must be enhanced to more effectively support FHA's business and budget processes'.(3) Existing technology systems for the FHA program have not been updated to meet the latest standards of the Mortgage Industry Standards Maintenance Organization and have numerous deficiencies that lenders have outlined.(4) Improvements to technology used in the FHA program will--(A) allow the FHA program to improve the management of the FHA portfolio, garner greater efficiencies in its operations, and lower costs across the program;(B) result in efficiencies and lower costs for lenders participating in the program, allowing them to better use the FHA products in extending homeownership opportunities to higher credit risk or lower-income families, in a sound manner.(5) The Mutual Mortgage Insurance Fund operates without cost to the taxpayers and generates revenues for the Federal Government.(b) Sense of Congress- It is the sense of the Congress that--(1) the Secretary of Housing and Urban Development should use a portion of the funds received from premiums paid for FHA single family housing mortgage insurance that are in excess of the amounts paid out in claims to substantially increase the funding for technology used in such FHA program;(2) the goal of this investment should be to bring the technology used in such FHA program to the level and sophistication of the technology used in the conventional mortgage lending market, or to exceed such level; and(3) the Secretary of Housing and Urban Development should report to the Congress not later than 180 days after the date of the enactment of this Act regarding the progress the Department is making toward such goal and if progress is not sufficient, the resources needed to make greater progress.SEC. 226. CLARIFICATION OF DISPOSITION OF CERTAIN PROPERTIES.Notwithstanding any other provision of law, subtitle A of title II of the Deficit Reduction Act of 2005 (12 U.S.C. 1701z-11 note) and the amendments made by such title shall not apply to any transaction regarding a multifamily real property for which--(1) the Secretary of Housing and Urban Development has received, before the date of the enactment of such Act, written expressions of interest in purchasing the property from both a city government and the housing commission of such city;(2) after such receipt, the Secretary acquires title to the property at a foreclosure sale; and(3) such city government and housing commission have resolved a previous disagreement with respect to the disposition of the property.SEC. 227. VALUATION OF MULTIFAMILY PROPERTIES IN NONCOMPETITIVE SALES BY HUD TO STATES AND LOCALITIES.Subtitle A of title II of the Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 7) is amended by adding at the end the following new section:

`SEC. 2004. VALUATION OF MULTIFAMILY PROPERTIES IN NONCOMPETITIVE SALES BY HUD TO STATES AND LOCALITIES.`Notwithstanding any other provision of law, in determining the market value of any multifamily real property or multifamily loan for any noncompetitive sale to a State or local government entity occurring during fiscal year 2008, the Secretary shall consider, but not be limited to, industry standard appraisal practices, including the cost of repairs needed to bring the property at least to minimum State and local code standards and of maintaining the existing affordability restrictions imposed by the Secretary on the multifamily real property or multifamily loan.'.'.

SEC. 228. LIMITATION ON redevelopment of abandoned and foreclosed homes.CommentsClose CommentsPermalink




Sec. 2302. Nationwide distribution of resources.CommentsClose CommentsPermalink





Sec. 2303. Limitation on use of funds with respect to eminent domain.CommentsClose CommentsPermalink





Sec. 2304. Limitation on distribution of funds.CommentsClose CommentsPermalink





Sec. 2305. Counseling intermediaries.CommentsClose CommentsPermalink

TITLE V--MORTGAGE INSURANCE PREMIUM INCREASES.Notwithstanding any other provision of law, including any provision of this subtitle and any amendment made by this subtitle--(1) the premiums charged for mortgage insurance under any program under the National Housing Act may not be increased above the premium amounts in effect under such programDISCLOSURE IMPROVEMENT ACT

Sec. 2601. Home improvements and structural alterations for totally disabled members of the Armed Forces before discharge or release from the Armed Forces.CommentsClose CommentsPermalink





Sec. 2602. Eligibility for specially adapted housing benefits and assistance for members of the Armed Forces with service-connected disabilities and individuals residing outside the United States.CommentsClose CommentsPermalink





Sec. 2603. Specially adapted housing assistance for individuals with severe burn injuries.CommentsClose CommentsPermalink





Sec. 2604. Extension of assistance for individuals residing temporarily in housing owned by a family member.CommentsClose CommentsPermalink





Sec. 2605. Increase in specially adapted housing benefits for disabled veterans.CommentsClose CommentsPermalink





Sec. 2606. Report on specially adapted housing for disabled individuals.CommentsClose CommentsPermalink





Sec. 2607. Report on specially adapted housing assistance for individuals who reside in housing owned by a family member on October 1, 2006, unless the Secretary of Housing and Urban Development determines that, absent such increase, insurance of additional mortgages under such program would, under the Federal Credit Reform Act of 1990, require the appropriation of new budget authority to cover the costs (as such term is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of such insurance; and(2) a premium increase pursuant to paragraph (1) may be made only by rule making in accordance with the procedures undersection 553 of title 5, United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section).SEC. 229. CIVIL MONEY PENALTIES FOR IMPROPERLY INFLUENCING APPRAISALS.Paragraph (2) of section 536(b) of the National Housing Act (12 U.S.C. 1735f-14(b)(2)) is amended--(1) in subparagraph (B), by striking `or' at the end;(2) in subparagraph (C), by striking the period at the end and inserting `; or'; and(3) by adding at the end the following new subparagraph:

`(D) in the case of an insured mortgage under title II for a 1- to 4-family residence, compensating, instructing, inducing, coercing, or intimidating any person who conducts an appraisal of the property in connection with such mortgage, or attempting to compensate, instruct, induce, coerce, or intimidate such a person, for the purpose of causing the appraised value assigned to the property under the appraisal to be based on any other factor other than the independent judgment of such person exercised in accordance with applicable professional standards.'.

SEC. 230. MORTGAGE INSURANCE PREMIUM REFUNDS.(a) Authority- The Secretary of Housing and Urban Development shall, to the extent that amounts are made available pursuant to subsection (c), provide refunds of unearned premium charges paid, at the time of insurance, for mortgage insurance under title II of the National Housing Act (12 U.S.C. 1707 et seq.) to or on behalf of mortgagors under mortgages described in subsection (b).(b) Eligible Mortgages- A mortgage described in this section is a mortgage on a one- to four-family dwelling that--(1) was insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.);(2) is otherwise eligible, under the last sentence of subparagraph (A) of section 203(c)(2) of such Act (12 U.S.C. 1709(c)(2)(A)), for a refund of all unearned premium charges paid on the mortgage pursuant to such subparagraph, except that the mortgage--(A) was closed before December 8, 2004; and(B) was endorsed on or after such date.(c) Authorization of Appropriations- There is authorized to be appropriated for each fiscal year such sums as may be necessary to provide refunds of unearned mortgage insurance premiums pursuant to this section.SEC. 231. SAVINGS PROVISION.Any mortgage insured under title II of the National Housing Act before the date of enactment of this Act shall continue to be governed by the laws, regulations, orders, and terms and conditions to which it was subject on the day before the date of the enactment of this Act.SEC. 232. IMPLEMENTATION.Except as provided in section 223(b), the Secretarypermanent basis.CommentsClose CommentsPermalink




Sec. 2608. Definition of annual income for purposes of section 8 and other public housing programs.CommentsClose CommentsPermalink





Sec. 2609. Payment of transportation of baggage and household effects for members of the Armed Forces who relocate due to foreclosure of leased housing.CommentsClose CommentsPermalink

Sec. 2831. Short title.CommentsClose CommentsPermalink





Sec. 2832. Approvals by Department of Housing and Urban Development shall by notice establish any additional requirements that may be necessary to immediately carry out the provisions of this subtitle. The notice shall take effect upon issuance.CommentsClose CommentsPermalink





Sec. 2833. Project approvals by rural housing service.CommentsClose CommentsPermalink





Sec. 2834. Use of FHA loans with housing tax credits.CommentsClose CommentsPermalink





Sec. 2835. Other HUD programs.CommentsClose CommentsPermalink

Sec. 3009. Hold harmless for reductions in area median gross income.CommentsClose CommentsPermalink





Sec. 3010. Exception to annual current income determination requirement where determination not relevant.CommentsClose CommentsPermalink

Subtitle B--FHA Manufactured Housing Loan Insurance ModernizationSECTION 251. SHORT TITLE.This subtitle may be cited as the `FHA Manufactured Housing Loan Modernization Act of 2008'.SEC. 252. FINDINGS AND PURPOSES.(a) Findings- The Congress finds that--(1) manufactured housing plays a vital role in providing housing for low- and moderate-income families in the United States;(2) the FHA title I insurance program for manufactured home loans traditionally has been a major provider of mortgage insurance for home-only transactions;(3) the manufactured housing market is in the midst of a prolonged downturn which has resulted in a severe contraction of traditional sources of private lending for manufactured home purchases;(4) during past downturns the FHA title I insurance program for manufactured homes has filled the lending void by providing stability until the private markets could recover;(5) in 1992, during the manufactured housing industry's last major recession, over 30,000 manufactured home loans were insured under title I;(6) in 2006, fewer than 1,500 manufactured housing loans were insured under title I;(7) the loan limits for title I manufactured housing loans have not been adjusted for inflation since 1992; and(8) these problems with the title I program have resulted in an atrophied market for manufactured housing loans, leaving American families who have the most difficulty achieving homeownership without adequate financing options for home-only manufactured home purchases.(b) Purposes- The purposes of this subtitle are--(1) to provide adequate funding for FHA-insured manufactured housing loans for low- and moderate-income homebuyers during all economic cycles in the manufactured housing industry;(2) to modernize the FHA title I insurance program for manufactured housing loans to enhance participation by Ginnie Mae and the private lending markets; and(3) to adjust the low loan limits for title I manufactured home loan insurance to reflect the increase in costs since such limits were last increased in 1992 and to index the limits to inflation.SEC. 253. EXCEPTION TO LIMITATION ON FINANCIAL INSTITUTION PORTFOLIO.The second sentence of section 2(a) of the National Housing Act (12 U.S.C. 1703(a)) is amended--(1) by striking `In no case' and inserting `Other than in connection with a manufactured home or a lot on which to place such a home (or both), in no case'; and(2) by striking `:Provided, That with' and inserting `. With'.SEC. 254. INSURANCE BENEFITS.(a) In General- Subsection (b) of section 2 of the National Housing Act (12 U.S.C. 1703(b)), is amended by adding at the end the following new paragraph:

`(8) INSURANCE BENEFITS FOR MANUFACTURED HOUSING LOANS- Any contract of insurance with respect to loans, advances of credit, or purchases in connection with a manufactured home or a lot on which to place a manufactured home (or both) for a financial institution that is executed under this title after the date of the enactment of the by the Secretary shall be conclusive evidence of the eligibility of such financial institution for insurance, and the validity of any contract of insurance so executed shall be incontestable in the hands of the bearer from the date of the execution of such contract, except for fraud or misrepresentation on the part of such institution.'.

(b) Applicability- The amendment made by subsection (a) shall only apply to loans that are registered or endorsed for insurance after the date of the enactment of this Act.SEC. 255. MAXIMUM LOAN LIMITS.(a) Dollar Amounts- Paragraph (1) of section 2(b) of the National Housing Act (12 U.S.C. 1703(b)(1)) is amended--(1) in clause (ii) of subparagraph (A), by striking `$17,500' and inserting `$25,090';(2) in subparagraph (C) by striking `$48,600' and inserting `$69,678';(3) in subparagraph (D) by striking `$64,800' and inserting `$92,904';(4) in subparagraph (E) by striking `$16,200' and inserting `$23,226'; and(5) by realigning subparagraphs (C), (D), and (E) 2 ems to the left so that the left margins of such subparagraphs are aligned with the margins of subparagraphs (A) and (B).(b) Annual Indexing- Subsection (b) of section 2 of the National Housing Act (12 U.S.C. 1703(b)), as amended by the preceding provisions of this subtitle, is further amended by adding at the end the following new paragraph:

`(9) ANNUAL INDEXING OF MANUFACTURED HOUSING LOANS- The Secretary shall develop a method of indexing in order to annually adjust the loan limits established in subparagraphs (A)(ii), (C), (D), and (E) of this subsection. Such index shall be based on the manufactured housing price data collected by the United States Census Bureau. The Secretary shall establish such index no later than one year after the date of the enactment of the FHA Manufactured Housing Loan Modernization Act of 2008.'.

(c) Technical and Conforming Changes- Paragraph (1) of section 2(b) of the National Housing Act (12 U.S.C. 1703(b)(1)) is amended--(1) by striking `No' and inserting `Except as provided in the last sentence of this paragraph, no'; and(2) by adding after and below subparagraph (G) the following:

`The Secretary shall, by regulation, annually increase the dollar amount limitations in subparagraphs (A)(ii), (C), (D), and (E) (as such limitations may have been previously adjusted under this sentence) in accordance with the index established pursuant to paragraph (9).'.

SEC. 256. INSURANCE PREMIUMS.Subsection (f) of section 2 of the National Housing Act (12 U.S.C. 1703(f)) is amended--(1) by inserting `(1) Premium Charges- ' after `(f)'; and(2) by adding at the end the following new paragraph:

`(2) Manufactured Home Loans- Notwithstanding paragraph (1), in the case of a loan, advance of credit, or purchase in connection with a manufactured home or a lot on which to place such a home (or both), the premium charge for the insurance granted under this section shall be paid by the borrower under the loan or advance of credit, as follows:`(A) At the time of the making of the loan, advance of credit, or purchase, a single premium payment in an amount not to exceed 2.25 percent of the amount of the original insured principal obligation.`(B) In addition to the premium under subparagraph (A), annual premium payments during the term of the loan, advance, or obligation purchased in an amount not exceeding 1.0 percent of the remaining insured principal balance (excluding the portion of the remaining balance attributable to the premium collected under subparagraph (A) and without taking into account delinquent payments or prepayments).`(C) Premium charges under this paragraph shall be established in amounts that are sufficient, but do not exceed the minimum amounts necessary, to maintain a negative credit subsidy for the program under this section for insurance of loans, advances of credit, or purchases in connection with a manufactured home or a lot on which to place such a home (or both), as determined based upon risk to the Federal Government under existing underwriting requirements.`(D) The Secretary may increase the limitations on premium payments to percentages above those set forth in subparagraphs (A) and (B), but only if necessary, and not in excess of the minimum increase necessary, to maintain a negative credit subsidy as described in subparagraph (C).'.

SEC. 257. TECHNICAL CORRECTIONS.(a) Dates- Subsection (a) of section 2 of the National Housing Act (12 U.S.C. 1703(a)) is amended--(1) by striking `on and after July 1, 1939,' each place such term appears; and(2) by striking `made after the effective date of the Housing Act of 1954'.(b) Authority of Secretary- Subsection (c) of section 2 of the National Housing Act (12 U.S.C. 1703(c)) is amended to read as follows:

`(c) Handling and Disposal of Property-`(1) AUTHORITY OF SECRETARY- Notwithstanding any other provision of law, the Secretary may--`(A) deal with, complete, rent, renovate, modernize, insure, or assign or sell at public or private sale, or otherwise dispose of, for cash or credit in the Secretary's discretion, and upon such terms and conditions and for such consideration as the Secretary shall determine to be reasonable, any real or personal property conveyed to or otherwise acquired by the Secretary, in connection with the payment of insurance heretofore or hereafter granted under this title, including any evidence of debt, contract, claim, personal property, or security assigned to or held by him in connection with the payment of insurance heretofore or hereafter granted under this section; and`(B) pursue to final collection, by way of compromise or otherwise, all claims assigned to or held by the Secretary and all legal or equitable rights accruing to the Secretary in connection with the payment of such insurance, including unpaid insurance premiums owed in connection with insurance made available by this title.`(2) ADVERTISEMENTS FOR PROPOSALS- Section 3709 of the Revised Statutes shall not be construed to apply to any contract of hazard insurance or to any purchase or contract for services or supplies on account of such property if the amount thereof does not exceed $25,000.`(3) DELEGATION OF AUTHORITY- The power to convey and to execute in the name of the Secretary, deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instrument relating to real or personal property or any interest therein heretofore or hereafter acquired by the Secretary pursuant to the provisions of this title may be exercised by an officer appointed by the Secretary without the execution of any express delegation of power or power of attorney. Nothing in this subsection shall be construed to prevent the Secretary from delegating such power by order or by power of attorney, in the Secretary's discretion, to any officer or agent the Secretary may appoint.'.

SEC. 258. REVISION OF UNDERWRITING CRITERIA.(a) In General- Subsection (b) of section 2 of the National Housing Act (12 U.S.C. 1703(b)), as amended by the preceding provisions of this subtitle, is further amended by adding at the end the following new paragraph:`(10) FINANCIAL SOUNDNESS OF MANUFACTURED HOUSING PROGRAM- The Secretary shall establish such underwriting criteria for loans and advances of credit in connection with a manufactured home or a lot on which to place a manufactured home (or both), including such loans and advances represented by obligations purchased by financial institutions, as may be necessary to ensure that the program under this title for insurance for financial institutions against losses from such loans, advances ofSingle Family Housing

Sec. 3021. Temporary liberalization of tax-exempt housing bond rules.CommentsClose CommentsPermalink





Sec. 3022. Repeal of alternative minimum tax limitations on tax-exempt housing bonds, low-income housing tax credit, and purchases is financially sound.'.(b) Timing- Not later than the expirationrehabilitation credit.CommentsClose CommentsPermalink





Sec. 3023. Bonds guaranteed by Federal home loan banks eligible for treatment as tax-exempt bonds.CommentsClose CommentsPermalink





Sec. 3024. Modification of rules pertaining to FIRPTA nonforeign affidavits.CommentsClose CommentsPermalink





Sec. 3025. Modification of definition of tax-exempt use property for purposes of the 6-month period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development shall revise the existing underwriting criteria for the program referred to in paragraph (10) of section 2(b) of the National Housing Act (as added by subsection (a) of this section) in accordance with the requirements of such paragraph.SEC. 259. REQUIREMENT OF SOCIAL SECURITY ACCOUNT NUMBER FOR ASSISTANCE.Section 2 of the National Housing Act (12 U.S.C. 1703) is amended by adding at the end the following new subsection:

`(j) Requirement of Social Security Account Number for Financing- No insurance shall be granted under this section with respect to any obligation representing any loan, advance of credit, or purchase by a financial institution unless the borrower to which the loan or advance of credit was made has a valid social security number.'.

SEC. 260. GAO STUDY OF MITIGATION OF TORNADO RISKS TO MANUFACTURED HOMES.The Comptroller General of the United States shall assess how the Secretary of Housing and Urban Development utilizes the FHA manufactured housing loan insurance program under title I of the National Housing Act, the community development block grant program under title I of the Housing and Community Development Act of 1974, and other programs and resources available to the Secretary to mitigate the risks to manufactured housing residents and communities resulting from tornados. The Comptroller General shall submit to the Congress a report on the conclusions and recommendations of the assessment conducted pursuant to this section not later than the expiration of the 12-month period beginning on the date of the enactment of this Actrehabilitation credit.CommentsClose CommentsPermalink




Sec. 3026. Extension of special rule for mortgage revenue bonds for residences located in disaster areas.CommentsClose CommentsPermalink





Sec. 3027. Transfer of funds appropriated to carry out 2008 recovery rebates for individuals.CommentsClose CommentsPermalink

Sec. 3071. Effective dates.CommentsClose CommentsPermalink

TITLE III--REFORM OF GOVERNMENT-SPONSORED ENTITIES FOR HOUSING FINANCESEC. 3VENUE PROVISIONS

SEC. 1001. SHORT TITLE.

This title may be cited as the `Federal Housing Finance Reform Act of 2008'division may be cited as the ‘Federal Housing Finance Regulatory Reform Act of 2008’.CommentsClose CommentsPermalink

SEC. 31002. DEFINITIONS.

Section 1303 of the Housing and Community Development Act of 1992 (a) Federal Safety and Soundness Act Definitions- Section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502) is amended--CommentsClose CommentsPermalink





(1) in paragraph (7), by striking `an enterprise' and inserting `a regulated entity';(2) by striking `the enterprise' each place such term appears (except in paragraphs (4) and (18)) and inserting `the regulated entity';(3) in paragraph (5), by striking `Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development' and inserting `Federal Housing Finance Agency';(4) in each of paragraphs each of paragraphs (8), (9), (10), and (19), by striking `Secretary'‘Secretary’ each place that term appears and inserting `Director';(5) in paragraph (13), by inserting `, with respect to an enterprise,' after `means';(6‘Director’;CommentsClose CommentsPermalink





(2) by redesignating paragraphs (16) through (19) as paragraphs (20) through (23), respectively;(71) through (24), respectively;CommentsClose CommentsPermalink





(3) by striking paragraphs (14) and (15) and inserting the following new paragraphs:`(183) through (15) and inserting the following:CommentsClose CommentsPermalink





‘(19) OFFICE OF FINANCE- The term ‘Office of Finance’ means the Office of Finance of the Federal Home Loan Bank System (or any successor thereto).CommentsClose CommentsPermalink





‘(20) REGULATED ENTITY- The term `regulated entity' means--`(A) the Federal National ‘regulated entity’ means--CommentsClose CommentsPermalink





‘(A) the Federal National Mortgage Association and any affiliate thereof;CommentsClose CommentsPermalink





`‘(B) the Federal Home Loan Mortgage Corporation and any affiliate thereof; andCommentsClose CommentsPermalink





`(C) each Federal home loan bank.`(19) REGULATED ‘(C) any Federal Home Loan Bank.’; CommentsClose CommentsPermalink





(4) by redesignating paragraphs (11) and (12) as paragraphs (17) and (18), respectively;CommentsClose CommentsPermalink





(5) by redesignating paragraph (7) as paragraph (12);CommentsClose CommentsPermalink





(6) by redesignating paragraphs (8) through (10) as paragraphs (14) through (16), respectively;CommentsClose CommentsPermalink





(7) in paragraph (5)--CommentsClose CommentsPermalink





(A) by striking ‘(5)’ and inserting ‘(9)’; andCommentsClose CommentsPermalink





(B) by striking ‘Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development’ and inserting ‘Federal Housing Finance Agency’;CommentsClose CommentsPermalink





(8) by redesignating paragraph (6) as paragraph (10);CommentsClose CommentsPermalink





(9) by redesignating paragraphs (2) through (4) as paragraphs (5) through (7), respectively;CommentsClose CommentsPermalink





(10) by inserting after paragraph (7), as redesignated, the following:CommentsClose CommentsPermalink





‘(8) DEFAULT; IN DANGER OF DEFAULT-CommentsClose CommentsPermalink





‘(A) DEFAULT- The term ‘default’ means, with respect to a regulated entity, any adjudication or other official determination by any court of competent jurisdiction, or the Agency, pursuant to which a conservator, receiver, limited-life regulated entity, or legal custodian is appointed for a regulated entity.CommentsClose CommentsPermalink





‘(B) IN DANGER OF DEFAULT- The term ‘in danger of default’ means a regulated entity with respect to which, in the opinion of the Agency--CommentsClose CommentsPermalink





‘(i) the regulated entity is not likely to be able to pay the obligations of the regulated entity in the normal course of business; orCommentsClose CommentsPermalink





‘(ii) the regulated entity--CommentsClose CommentsPermalink





‘(I) has incurred or is likely to incur losses that will deplete all or substantially all of its capital; andCommentsClose CommentsPermalink





‘(II) there is no reasonable prospect that the capital of the regulated entity will be replenished.’;CommentsClose CommentsPermalink





(11) by inserting after paragraph (1) the following:CommentsClose CommentsPermalink





‘(2) AGENCY- The term ‘Agency’ means the Federal Housing Finance Agency established under section 1311.CommentsClose CommentsPermalink





‘(3) AUTHORIZING STATUTES- The term ‘authorizing statutes’ means--CommentsClose CommentsPermalink





‘(A) the Federal National Mortgage Association Charter Act;CommentsClose CommentsPermalink





‘(B) the Federal Home Loan Mortgage Corporation Act; andCommentsClose CommentsPermalink





‘(C) the Federal Home Loan Bank Act.CommentsClose CommentsPermalink





‘(4) BOARD- The term ‘Board’ means the Federal Housing Finance Oversight Board established under section 1313A.’;CommentsClose CommentsPermalink





(12) by inserting after paragraph (10), as redesignated by this section, the following:CommentsClose CommentsPermalink





‘(11) ENTITY-AFFILIATED PARTY- The term `regulated entity-affiliated party' means--`‘entity-affiliated party’ means--CommentsClose CommentsPermalink





‘(A) any director, officer, employee, or agent for, a regulated entity, or controlling shareholder of an enterprise;`tockholder of, or agent for, a regulated entity;CommentsClose CommentsPermalink





‘(B) any shareholder, affiliate, consultant, or joint venture partner of a regulated entity, and any other person, as determined by the Director (by regulation or on a case-by-case basis) that participates in the conduct of the affairs of a regulated entity, except that a shareholder of a regulated entity shall not be considerprovided that a member of a Federal Home Loan Bank shall not be deemed to have participated in the affairs of that regulated entityBank solely by reasonvirtue of being a member or customer of the regulated entity;`shareholder of, and obtaining advances from, that Bank;CommentsClose CommentsPermalink





‘(C) any independent contractor for a regulated entity (including any attorney, appraiser, or accountant), if--CommentsClose CommentsPermalink





`‘(i) the independent contractor knowingly or recklessly participates in--CommentsClose CommentsPermalink





`(I) any violation of any law or regulation;` ‘(I) any violation of any law or regulation; CommentsClose CommentsPermalink





‘(II) any breach of fiduciary duty; orCommentsClose CommentsPermalink





`‘(III) any unsafe or unsound practice; andCommentsClose CommentsPermalink





`‘(ii) such violation, breach, or practice caused, or is likely to cause, more than a minimal financial loss to, or a significant adverse effect on, the regulated entity;CommentsClose CommentsPermalink





and`‘(D) any not-for-profit corporation that receives its principal funding, on an ongoing basis, from any regulated entity.'.(8) by redesignating paragraphs (8) through (13) as paragraphs (12) through (17), respectively; and(9) by inserting after paragraph (7) the following new paragraph:

`(11) FEDERAL HOME LOAN BANK- The term `Federal home loan bank' means a bank established under the authority of the Federal Home Loan Bank Act.';

(10) by redesignating paragraphs (2) through (7) as paragraphs (5) through (10), respectively; and(11) by inserting after paragraph (1) the following new paragraphs:

`(2) AGENCY- The term `Agency' means the Federal Housing Finance Agency.`(3) AUTHORIZING STATUTES- The term `authorizing statutes' means--`(A) the Federal National Mortgage Association Charter Act;`(B) the Federal Home Loan Mortgage Corporation Act; and`(C) the Federal Home Loan Bank Act.`(4) BOARD- The term `Board' means the Federal Housing Enterprise Board established under section 1313B.'.

Subtitle A--Reform of Regulation of Enterprises and Federal Home Loan BanksCHAPTER 1--IMPROVEMENT OF SAFETY AND SOUNDNESSSEC. 31; andCommentsClose CommentsPermalink




‘(E) the Office of Finance.’;CommentsClose CommentsPermalink





(13) by inserting after paragraph (12), as redesignated by this section, the following:CommentsClose CommentsPermalink





‘(13) LIMITED-LIFE REGULATED ENTITY- The term ‘limited-life regulated entity’ means an entity established by the Agency under section 1367(i) with respect to a Federal Home Loan Bank in default or in danger of default or with respect to an enterprise in default or in danger of default.’; andCommentsClose CommentsPermalink





(14) by adding at the end the following:CommentsClose CommentsPermalink





‘(25) VIOLATION- The term ‘violation’ includes any action (alone or in combination with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.’.CommentsClose CommentsPermalink





(b) References in This Act- As used in this Act, unless otherwise specified--CommentsClose CommentsPermalink





(1) the term ‘Agency’ means the Federal Housing Finance Agency;CommentsClose CommentsPermalink





(2) the term ‘Director’ means the Director of the Agency; andCommentsClose CommentsPermalink





(3) the terms ‘enterprise’, ‘regulated entity’, and ‘authorizing statutes’ have the same meanings as in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by this Act.CommentsClose CommentsPermalink

SEC. 1101. ESTABLISHMENT OF THE FEDERAL HOUSING FINANCE AGENCY.

(a) In General- The Housing and Community DevelopmentThe Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by striking sections 1311 and 1312 and inserting the following:CommentsClose CommentsPermalink

`‘SEC. 1311. ESTABLISHMENT OF THE FEDERAL HOUSING FINANCE AGENCY.

`‘(a) Establishment- There is established the Federal Housing Finance Agency, which shall be an independent agency of the Federal Government.CommentsClose CommentsPermalink





`‘(b) General Supervisory and Regulatory Authority-CommentsClose CommentsPermalink





`‘(1) IN GENERAL- Each regulated entity shall, to the extent provided in this title, be subject to the supervision and regulation of the Agency.CommentsClose CommentsPermalink





`‘(2) AUTHORITY OVER FANNIE MAE, FREDDIE MAC, AND FEDERAL HOME LOAN BANKS- The Director of the Federal Housing Finance AgencyTHE FEDERAL HOME LOAN BANKS, AND THE OFFICE OF FINANCE- The Director shall have general supervisory and regulatory authority over each regulated entity and the Office of Finance, and shall exercise such general regulatory and supervisory authority, including such duties and authorities set forth under section 1313 of this Act, to ensure that the purposes of this Act, the , to ensure that the purposes of this Act, the authorizing statutes, and any other applicable law are carried out.CommentsClose CommentsPermalink





The Director shall have the same supervisory and regulatory authority over any joint office of the Federal home loan banks, including the Office of Finance of the Federal Home Loan Banks, as the Director has over the individual Federal home loan banks.`‘(c) Savings Provision- The authority of the Director to take actions under subtitles B and C shall not in any way limit the general supervisory and regulatory authority granted to the Director.` under subsection (b).CommentsClose CommentsPermalink

‘SEC. 1312. DIRECTOR.

`‘(a) Establishment of Position- There is established the position of the Director of the Federal Housing Finance Agency, who shall be the head of the Agency.`Agency, who shall be the head of the Agency.CommentsClose CommentsPermalink





‘(b) Appointment; Term-CommentsClose CommentsPermalink





`‘(1) APPOINTMENT- The Director shall be appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight, and have a demonstrated understanding of capital markets, including the mortgage securities markets and housing finance.CommentsClose CommentsPermalink





`(2) TERM AND REMOVAL- The Director shall be appointed for a term of 5 years and may be removed by the President only for cause.` ‘(2) TERM- The Director shall be appointed for a term of 5 years, unless removed before the end of such term for cause by the President. CommentsClose CommentsPermalink





‘(3) VACANCY- A vacancy in the position of Director that occurs before the expiration of the term for which a Director was appointed shall be filled in the manner established under paragraph (1), and the Director appointed to fill such vacancy shall be appointed only for the remainder of such term.CommentsClose CommentsPermalink





`‘(4) SERVICE AFTER END OF TERM- An individual may serve as the Director after the expiration of the term for which appointed until a successor has been appointed.CommentsClose CommentsPermalink





`‘(5) TRANSITIONAL PROVISION- Notwithstanding paragraphs (1) and (2), during the period beginning on the effective date of the Federal Housing Finance Regulatory Reform Act of 2008, and ending on the date on which the Director is appointed and (2), the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development shall serve as the Director until a successor has been appointed under paragraph (1).`(c)confirmed, the person serving as the Director of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development on that effective date shall act for all purposes as, and with the full powers of, the Director.CommentsClose CommentsPermalink





‘(c) Deputy Director of the Division of Enterprise Regulation-CommentsClose CommentsPermalink





`‘(1) IN GENERAL- The Agency shall have a Deputy Director of the Division of Enterprise Regulation, who shall be appoindesignated by the Director from among individuals who are citizens of the United States, and have a demonstrated understanding of financial management or oversight and, and have a demonstrated understanding of mortgage securities markets and housing finance.CommentsClose CommentsPermalink





`‘(2) FUNCTIONS- The Deputy Director of the Division of Enterprise Regulation shall have such functions, powers, and duties with respect to the oversight of the enterprises as the Director shall prescribe.CommentsClose CommentsPermalink





`(d) Deputy Director of the Division of Federal Home Loan Bank Regulation-` ‘(d) Deputy Director Of The Division Of Federal Home Loan Bank Regulation- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Agency shall have a Deputy Director of the Division of Federal Home Loan Bank Regulation, who shall be appoindesignated by the Director from among individuals who are citizens of the United States, have a demonstrated understanding of financial management or oversight and of the Federal Home Loan Bank System and housing finance.`, and have a demonstrated understanding of the Federal Home Loan Bank System and housing finance.CommentsClose CommentsPermalink





‘(2) FUNCTIONS- The Deputy Director of the Division of Federal Home Loan Bank Regulation shall have such functions, powers, and duties with respect to the oversight of the Federal home loan banks as the Director shall prescribe.`Home Loan Banks as the Director shall prescribe.CommentsClose CommentsPermalink





‘(e) Deputy Director for Housing-`(1) IN GENERAL- The Agency shall have a Deputy Director for Housing, who shall be appoin Mission and Goals-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Agency shall have a Deputy Director for Housing Mission and Goals, who shall be designated by the Director from among individuals who are citizens of the United States, and have a demonstrated understanding of the housing markets and housing finance and of community and economic development.`.CommentsClose CommentsPermalink





‘(2) FUNCTIONS- The Deputy Director for Housing Mission and Goals shall have such functions, powers, and duties with respect to the oversight of the housing mission and goals of the enterprises, and with respect to oversight of the housing finance and community and economic development mission of the Federal home loan banks, as the Director shall prescribe.`(f) Home Loan Banks, as the Director shall prescribe.CommentsClose CommentsPermalink





‘(3) CONSIDERATIONS- In exercising such functions, powers, and duties, the Deputy Director for Housing Mission and Goals shall consider the differences between the enterprises and the Federal Home Loan Banks, including those described in section 1313(d).CommentsClose CommentsPermalink





‘(f) Acting Director- In the event of the death, resignation, sickness, or absence of the Director, the President shall designate either the Deputy Director of the Division of Enterprise Regulation, the Deputy Director of the Division of Federal Home Loan Bank Regulation, or the Deputy Director for Housing Mission and Goals, to serve as acting Director until the return of the Director, or the appointment of a successor pursuant to subsection (b).CommentsClose CommentsPermalink





‘(g) Limitations- The Director and each of the Deputy Directors may not--CommentsClose CommentsPermalink





`‘(1) have any direct or indirect financial interest in any regulated entity or regulated entity-affiliated party;CommentsClose CommentsPermalink





`‘(2) hold any office, position, or employment in any regulated entity or regulated entity-affiliated party; or`entity-affiliated party; orCommentsClose CommentsPermalink





‘(3) have served as an executive officer or director of any regulated entity, or regulated entity-affiliated party, at any time during the 3-year period ending on the date of appointment of such individual as Director or Deputy Director.`(g) Ombudsman- The Director shall establish the position of the Ombudsman in the Agency. The Director shall provide that the Ombudsman will consider complaints and appeals from any regulated entity and any person that has a business relationship with a regulated entity and shall specify the duties and authority of the Ombudsman.'.(b) Appointment of Director- Notwithstanding any other provision of law or of this title, the President may, any time after the date of the enactment of this Act, appoint an individual to serve as the Director of the Federal Housing Finance Agency, as such office is established by the amendment made by subsection (a). This subsection shall take effect on the date of the enactment of this Act or entity-affiliated party at any time during the 3-year period preceding the date of appointment or designation of such individual as Director or Deputy Director, as applicable.’.CommentsClose CommentsPermalink

SEC. 311102. DUTIES AND AUTHORITIES OF THE DIRECTOR.

(a) In General- The Housing and Community DevelopmentSection 1313 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4513) is amended by striking section 1313 and inserting the following new sections:`to read as follows:CommentsClose CommentsPermalink

‘SEC. 1313. DUTIES AND AUTHORITIES OF DIRECTOR.

`(a) Duties-` ‘(a) Duties- CommentsClose CommentsPermalink





‘(1) PRINCIPAL DUTIES- The principal duties of the Director shall be--CommentsClose CommentsPermalink





`‘(A) to oversee the prudential operations of each regulated entity and any joint office of the Federal Home Loan Banks; and`(B) to ensure that--`; andCommentsClose CommentsPermalink





‘(B) to ensure that--CommentsClose CommentsPermalink





‘(i) each regulated entity operates in a safe and sound manner, including maintenance of adequate capital and internal controls;CommentsClose CommentsPermalink





`‘(ii) the operations and activities of each regulated entity foster liquid, efficient, competitive, and resilient national housing finance markets that minimize the cost of housing finance (including activities relating to mortgages on housing for low- and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities);CommentsClose CommentsPermalink





`(iii) each regulated entity‘(iii) each regulated entity complies with this title and the rules, regulations, guidelines, and orders issued under this title and the authorizing statutes;CommentsClose CommentsPermalink





and`(iv) each regulated entity‘(iv) each regulated entity carries out its statutory mission only through activities that are authorized under and consistent with this title and the authorizing statutes.`; andCommentsClose CommentsPermalink





‘(v) the activities of each regulated entity and the manner in which such regulated entity is operated are consistent with the public interest.CommentsClose CommentsPermalink





‘(2) SCOPE OF AUTHORITY- The authority of the Director shall include the authority--CommentsClose CommentsPermalink





`‘(A) to review and, if warranted based on the principal duties described in paragraph (1), reject any acquisition or transfer of a controlling interest in an enterprise; and` regulated entity; andCommentsClose CommentsPermalink





‘(B) to exercise such incidental powers as may be necessary or appropriate to fulfill the duties and responsibilities of the Director in the supervision and regulation of each regulated entity.CommentsClose CommentsPermalink





`(b) Delegation of Authority- The Director may‘(b) Delegation of Authority- The Director may delegate to officers or employees of the Agency, including each of the Deputy Directors,and employees of the Agency any of the functions, powers, or duties of the Director, as the Director considers appropriate.CommentsClose CommentsPermalink





`(c) Litigation Authority-` ‘(c) Litigation Authority- CommentsClose CommentsPermalink





‘(1) IN GENERAL- In enforcing any provision of this title, any regulation or order prescribed under this title, or any other provision of law, rule, regulation, or order, or in any other action, suit, or proceeding to which the Director is a party or in which the Director is interested, and in the administration of conservatorships and receiverships, the Director may act in the Director'’s own name and through the Director'’s own attorneys, or request that the Attorney General of the United States act on behalf of the Director.`(2) CONSULTATION WITH ATTORNEY GENERAL- The Director shall provide notice to, and consult with, the Attorney General of the United States before taking an action under paragraph (1) of this subsection or under section 1344(a), 1345(d), 1348(c), 1372(e), 1375(a), 1376(d), or 1379D(c), except that, if the Director determines that any delay caused by such prior notice and consultation may adversely affect the safety and soundness responsibilities of the Director under this title, the Director shall notify the Attorney General as soon as reasonably possible after taking such action.`(3.CommentsClose CommentsPermalink





‘(2) SUBJECT TO SUIT- Except as otherwise provided by law, the Director shall be subject to suit (other than suits on claims for money damages) by a regulated entity or director or officer thereof with respect to any matter under this title or any other applicable provision of law, rule, order, or regulation under this title, in the United States district court for the judicial district in which the regulated entity has its principal place of business, or in the United States District Court for the District of Columbia, and the Director may be served with process in the manner prescribed by the Federal Rules of Civil Procedure.`SEC. 1313A. PRUDENTIAL MANAGEMENT AND OPERATIONS STANDARDS.`(a) Standards- The Director shall establish standards, by regulation, guideline, or order, for each regulated entity relating to--`(1) adequacy of internal controls and information systems, including information security and privacy policies and practices, taking into account the nature and scale of business operations;`(2) independence and adequacy of internal audit systems;`(3) management of credit and counterparty risk, including systems to identify concentrations of credit risk and prudential limits to restrict exposure of the regulated entity to a single counterparty or groups of related counterparties;`(4) management of interest rate risk exposure;`(5) management of market risk, including standards that provide for systems that accurately measure, monitor, and control market risks and, as warranted, that establish limitations on market risk;`(6) adequacy and maintenance of liquidity and reserves;`(7) management of any asset and investment portfolio;`(8) investments and acquisitions by a regulated entity, to ensure that they are consistent with the purposes of this Act and the authorizing statutes;`(9) maintenance of adequate records, in accordance with consistent accounting policies and practices that enable the Director to evaluate the financial condition of the regulated entity;`(10) issuance of subordinated debt by that particular regulated entity, as the Director considers necessary;`(11) overall risk management processes, including adequacy of oversight by senior management and the board of directors and of processes and policies to identify, measure, monitor, and control material risks, including reputational risks, and for adequate, well-tested business resumption plans for all major systems with remote site facilities to protect against disruptive events; and`(12) such other operational and management standards as the Director determines to be appropriate.`(b) Failure To Meet Standards-`(1) PLAN REQUIREMENT-`(A) IN GENERAL- If the Director determines that a regulated entity fails to meet any standard established under subsection (a)--`(i) if such standard is established by regulation, the Director shall require the regulated entity to submit an acceptable plan to the Director within the time allowed under subparagraph (C); and`(ii) if such standard is established by guideline, the Director may require the regulated entity to submit a plan described in clause (i).`(B) CONTENTS- Any plan required under subparagraph (A) shall specify the actions that the regulated entity will take to correct the deficiency. If the regulated entity is undercapitalized, the plan may be a part of the capital restoration plan for the regulated entity under section 1369C.`(C) DEADLINES FOR SUBMISSION AND REVIEW- The Director shall by regulation establish deadlines that--`(i) provide the regulated entities with reasonable time to submit plans required under subparagraph (A), and generally require a regulated entity to submit a plan not later than 30 days after the Director determines that the entity fails to meet any standard established under subsection (a); and`(ii) require the Director to act on plans expeditiously, and generally not later than 30 days after the plan is submitted.`(2) REQUIRED ORDER UPON FAILURE TO SUBMIT OR IMPLEMENT PLAN- If a regulated entity fails to submit an acceptable plan within the time allowed under paragraph (1)(C), or fails in any material respect to implement a plan accepted by the Director, the following shall apply:`(A) REQUIRED CORRECTION OF DEFICIENCY- The Director shall, by order, require the regulated entity to correct the deficiency.`(B) OTHER AUTHORITY- The Director may, by order, take one or more of the following actions until the deficiency is corrected:`(i) Prohibit the regulated entity from permitting its average total assets (as such term is defined in section 1316(b)) during any calendar quarter to exceed its average total assets during the preceding calendar quarter, or restrict the rate at which the average total assets of the entity may increase from one calendar quarter to another.`(ii) Require the regulated entity--`(I) in the case of an enterprise, to increase its ratio of core capital to assets.`(II) in the case of a Federal home loan bank, to increase its ratio of total capital (as such term is defined in section 6(a)(5) of the Federal Home Loan Bank Act (12 U.S.C. 1426(a)(5)) to assets.`(iii) Require the regulated entity to take any other action that the Director determines will better carry out the purposes of this section than any of the actions described in this subparagraph.`(3) MANDATORY RESTRICTIONS- In complying with paragraph (2), the Director shall take one or more of the actions described in clauses (i) through (iii) of paragraph (2)(B) if--`(A) the Director determines that the regulated entity fails to meet any standard prescribed under subsection (a);`(B) the regulated entity has not corrected the deficiency; and`(C) during the 18-month period before the date on which the regulated entity first failed to meet the standard, the entity underwent extraordinary growth, as defined by the Director.`(c) Other Enforcement Authority Not Affected- The authority of the Director under this section is in addition to any other authority of the Director.'’.CommentsClose CommentsPermalink





(b) Independence in Congressional Testimony and Recommendations- Section 111 of Public Law 93-495 (12 U.S.C. 250) is amended by striking `the Federal Housing Finance Board' and inserting `the Director of the Federal Housing Finance Agency'‘the Federal Housing Finance Board’ and inserting ‘the Director of the Federal Housing Finance Agency’.CommentsClose CommentsPermalink

SEC. 313. FEDERAL HOUSING ENTERPRISE1103. FEDERAL HOUSING FINANCE OVERSIGHT BOARD.

(a) In General- Title XIII of the Housing and Community Developmenthe Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by inserting after section 1313A, as added by the preceding provisions of this title, the following new section:`SEC. 1313B. FEDERAL HOUSING ENTERPRISE BOARD.` the following:CommentsClose CommentsPermalink

‘SEC. 1313A. FEDERAL HOUSING FINANCE OVERSIGHT BOARD.

‘(a) In General- There is established the Federal Housing EnterpriseFinance Oversight Board, which shall advise the Director with respect to overall strategies and policies in carrying out the duties of the Director under this title.CommentsClose CommentsPermalink





`‘(b) Limitations- The Board may not exercise any executive authority, and the Director may not delegate to the Board any of the functions, powers, or duties of the Director.CommentsClose CommentsPermalink





`‘(c) Composition- The Board shall be comprised of 34 members, of whom--CommentsClose CommentsPermalink





`(1) one member shall be the Secretary of the Treasury;`(2) one member shall be the Secretary of Housing and Urban Development; and`(3) one member shall be the Director, who shall serve as the Chairperson of the Board.`(d) Meetings-` ‘(1) 1 member shall be the Secretary of the Treasury; CommentsClose CommentsPermalink





‘(2) 1 member shall be the Secretary of Housing and Urban Development;CommentsClose CommentsPermalink





‘(3) 1 member shall be the Chairman of the Securities and Exchange Commission; andCommentsClose CommentsPermalink





‘(4) 1 member shall be the Director, who shall serve as the Chairperson of the Board.CommentsClose CommentsPermalink





‘(d) Meetings-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Board shall meet upon notice by the Director, but in no event shall the Board meet less frequently than once every 3 months.CommentsClose CommentsPermalink





`‘(2) SPECIAL MEETINGS- Either the Secretary of the Treasury or the Secretary of Housing and Urban Development, the Secretary of Housing and Urban Development, or the Chairman of the Securities and Exchange Commission may, upon giving written notice to the Director, require a special meeting of the Board.CommentsClose CommentsPermalink





`‘(e) Testimony- On an annual basis, the Board shall testify before Congress regarding--CommentsClose CommentsPermalink





`‘(1) the safety and soundness of the regulated entities;CommentsClose CommentsPermalink





`‘(2) any material deficiencies in the conduct of the operations of the regulated entities;CommentsClose CommentsPermalink





`‘(3) the overall operational status of the regulated entities;CommentsClose CommentsPermalink





`‘(4) an evaluation of the performance of the regulated entities in carrying out their respective missions;CommentsClose CommentsPermalink





`‘(5) operations, resources, and performance of the Agency; andCommentsClose CommentsPermalink





`‘(6) such other matters relating to the Agency and its fulfillment of its mission, as the Board determines appropriate.'’.CommentsClose CommentsPermalink





(b) Annual Report of the Director- Section 1319B(a) of the Housing and Community DevelopmentFederal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4521 (a)) is amended--(1) in paragraph (3), by striking `and' at the end; and(2) by striking paragraph (4) and inserting the following new paragraphs:`(4) an(a)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘enterprise’ each place that term appears and inserting ‘regulated entity’;CommentsClose CommentsPermalink





(2) by striking ‘enterprises’ each place that term appears and inserting ‘regulated entities’;CommentsClose CommentsPermalink





(3) in paragraph (3), by striking ‘; and’ and inserting a semicolon;CommentsClose CommentsPermalink





(4) in paragraph (4), by striking ‘1994.’ and inserting ‘1994; and’; andCommentsClose CommentsPermalink





(5) by adding at the end the following:CommentsClose CommentsPermalink





‘(5) the assessment of the Board or any of its members with respect to--CommentsClose CommentsPermalink





`‘(A) the safety and soundness of the regulated entities;CommentsClose CommentsPermalink





`‘(B) any material deficiencies in the conduct of the operations of the regulated entities;CommentsClose CommentsPermalink





`‘(C) the overall operational status of the regulated entities; andCommentsClose CommentsPermalink





`‘(D) an evaluation of the performance of the regulated entities in carrying out their missions;`(5respective missions;CommentsClose CommentsPermalink





‘(6) operations, resources, and performance of the Agency;`(6) a description of the demographic makeup of the workforce of the Agency and the actions taken pursuant to section 1319A(b) to provide for diversity in the workforce; and` andCommentsClose CommentsPermalink





‘(7) such other matters relating to the Agency and itsthe fulfillment of its mission.'’.CommentsClose CommentsPermalink

SEC. 311104. AUTHORITY TO REQUIRE REPORTS BY REGULATED ENTITIES.

Section 1314 of the Housing and Community Development Act of 1992 (a) In General- Section 1314 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4514) is amended--CommentsClose CommentsPermalink





(1) in the section heading, by striking `enterprises' and inserting `regulated entities';(2‘enterprises’ and inserting ‘regulated entities’;CommentsClose CommentsPermalink





(2) by striking ‘an enterprise’ each place that term appears and inserting ‘a regulated entity’;CommentsClose CommentsPermalink





(3) by striking ‘the enterprise’ and inserting ‘the regulated entity’;CommentsClose CommentsPermalink





(4) in subsection (a)--CommentsClose CommentsPermalink





(A) in the subsection heading, by striking `Special Reports and Reports of Financial Condition' and inserting `by striking the subsection heading and all that follows through ‘and operations’ in paragraph (1) and inserting the following:CommentsClose CommentsPermalink





‘(a) Regular and Special Reports';(B) in paragraph (1)--(i) in the paragraph heading, by striking `FINANCIAL CONDITION' and inserting `-CommentsClose CommentsPermalink





‘(1) REGULAR REPORTS'; and(ii) by striking `reports of financial condition and operations' and inserting `regular reports on the condition (including financial- The Director may require, by general or specific orders, a regulated entity to submit regular reports, including financial statements determined on a fair value basis, on the condition (including financial condition), management, activities, or operations of the regulated entity, as the Director considers appropriate'; and(C) in paragraph (2), after `submit special reports' insert `’; andCommentsClose CommentsPermalink





(B) in paragraph (2)--CommentsClose CommentsPermalink





(i) by inserting ‘, by general or specific orders,’ after ‘may also require’; andCommentsClose CommentsPermalink





(ii) by striking ‘whenever’ and inserting ‘on any of the topics specified in paragraph (1) or such other topics'; and(3) by adding at the end the following new subsection:`(c) Reports of Fraudulent Financial Transactions-`(1) REQUIREMENT TO REPORT- The Director shall require a regulated entity to submit to the Director a timely report upon discovery by the regulated entity that it has purchased or sold a fraudulent loan or financial instrument or suspects a possible fraud relating to a purchase or sale of any loan or financial instrument. The Director shall require the regulated entities to establish and maintainany other relevant topics, if’; andCommentsClose CommentsPermalink





(5) by adding at the end the following:CommentsClose CommentsPermalink





‘(c) Penalties for Failure To Make Reports-CommentsClose CommentsPermalink





‘(1) VIOLATIONS- It shall be a violation of this section for any regulated entity--CommentsClose CommentsPermalink





‘(A) to fail to make, transmit, or publish any report or obtain any information required by the Director under this section, section 309(k) of the Federal National Mortgage Association Charter Act, section 307(c) of the Federal Home Loan Mortgage Corporation Act, or section 20 of the Federal Home Loan Bank Act, within the period of time specified in such provision of law or otherwise by the Director; orCommentsClose CommentsPermalink





‘(B) to submit or publish any false or misleading report or information under this section.CommentsClose CommentsPermalink





‘(2) PENALTIES-CommentsClose CommentsPermalink





‘(A) FIRST TIER-CommentsClose CommentsPermalink





‘(i) IN GENERAL- A violation described in paragraph (1) shall be subject to a penalty of not more than $2,000 for each day during which such violation continues, in any case in which--CommentsClose CommentsPermalink





‘(I) the subject regulated entity maintains procedures designed to discover any such transactions.`(2) PROTECTION FROM LIABILITY FOR REPORTS-`(A) IN GENERAL- If areasonably adapted to avoid any inadvertent error and the violation was unintentional and a result of such an error; orCommentsClose CommentsPermalink





‘(II) the violation was an inadvertent transmittal or publication of any report which was minimally late.CommentsClose CommentsPermalink





‘(ii) BURDEN OF PROOF- For purposes of this subparagraph, the regulated entity shall have the burden of proving that the error was inadvertent or that a report was inadvertently transmitted or published late.CommentsClose CommentsPermalink





‘(B) SECOND TIER- A violation described in paragraph (1) shall be subject to a penalty of not more than $20,000 for each day during which such violation continues or such false or misleading information is not corrected, in any case that is not addressed in subparagraph (A) or (C).CommentsClose CommentsPermalink





‘(C) THIRD TIER- A violation described in paragraph (1) shall be subject to a penalty of not more than $1,000,000 per day for each day during which such violation continues or such false or misleading information is not corrected, in any case in which the subject regulated entity makes a report pursuant to paragraph (1), or a regulated entity-affiliated party makes, or requires another to make, such a report, and such report is made in a good faith effort to comply with the requirements of paragraph (1), such regulated entity or regulated entity-affiliated party shall not be liable to any person under any law or regulation of the United States, any constitution, law, or regulation of any State or political subdivision of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement), for such report or for any failure to provide notice of such report to the person who is the subject of such report or any other person identified in the report.`(B) RULE OF CONSTRUCTION- Subparagraph (A) shall not be construed as creating--`(i) any inference that the term `person', as used in such subparagraph, may be construed more broadly than its ordinary usage so as to include any government or agency of government; or`(ii) any immunity against, or otherwise affecting, any civil or criminal action brought by any government or agency of government to enforce any constitution, law, or regulation of such government or agency.'committed such violation knowingly or with reckless disregard for the accuracy of any such information or report.CommentsClose CommentsPermalink





‘(3) ASSESSMENTS- Any penalty imposed under this subsection shall be in lieu of a penalty under section 1376, but shall be assessed and collected by the Director in the manner provided in section 1376 for penalties imposed under that section, and any such assessment (including the determination of the amount of the penalty) shall be otherwise subject to the provisions of section 1376.CommentsClose CommentsPermalink





‘(4) HEARING- A regulated entity against which a penalty is assessed under this section shall be afforded an agency hearing if the regulated entity submits a request for a hearing not later than 20 days after the date of the issuance of the notice of assessment. Section 1374 shall apply to any such proceedings.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended by striking sections 1327 and 1328.CommentsClose CommentsPermalink

SEC. 315. DISCLOSURE OF INCOME AND CHARITABLE CONTRIBUTIONS BY ENTERPRISES.Section 1314 of the Housing and Community Development Act of 1992 1105. EXAMINERS AND ACCOUNTANTS; AUTHORITY TO CONTRACT FOR REVIEWS OF REGULATED ENTITIES; OMBUDSMAN.

(a) In General- Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4514), as amended by the preceding provisions of this title, is further amended by adding at the end the following new subsections:`(d) Disclosure of Charitable Contributions by Enterprises-`(1) REQUIRED DISCLOSURE- The Director shall, by regulation, require each enterprise to submit a report annually, in a format designated by the Director, containing the following information:`(A) TOTAL VALUE- The total value of contributions made by the enterprise to nonprofit organizations during its previous fiscal year.`(B) SUBSTANTIAL CONTRIBUTIONS- If the value of contributions made by the enterprise to any nonprofit organization during its previous fiscal year exceeds the designated amount, the name of that organization and the value of contributions.`(C) SUBSTANTIAL CONTRIBUTIONS TO INSIDER-AFFILIATED CHARITIES- Identification of each contribution whose value exceeds the designated amount that were made by the enterprise during the enterprise's previous fiscal year to any nonprofit organization of which a director, officer, or controlling person of the enterprise, or a spouse thereof, was a director or trustee, the name of such nonprofit organization, and the value7) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by striking ‘enterprise’ each place that term appears and inserting ‘regulated entity’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) by inserting ‘of a regulated entity’ after ‘under this section’; andCommentsClose CommentsPermalink





(B) by striking ‘to determine the condition of an enterprise for the purpose of ensuring its financial safety and soundness’ and inserting ‘or appropriate’;CommentsClose CommentsPermalink





(3) in subsection (c), in the second sentence, by inserting before the period ‘to conduct examinations under this section’;CommentsClose CommentsPermalink





(4) by redesignating subsections (d) through (f) as subsections (e) through (g), respectively; andCommentsClose CommentsPermalink





(5) by inserting after subsection (c) the following:CommentsClose CommentsPermalink





‘(d) Inspector General- There shall be within the Agency an Inspector General, who shall be appointed in accordance with section 3(a) of the contribution.`(2) DEFINITIONS- For purposes of this subsection--`(A) the term `designated amount' means such amount as may be designated by the Director by regulation, consistent with the public interest and the protection of investors for purposes of this subsection; and`(B) the Director may, by such regulations as the Director deems necessary or appropriate in the public interest, define the terms officer and controlling person.`(3) PUBLIC AVAILABILITY- The Director shall make the information submitted pursuant to this subsection publicly available.`(e) Disclosure of Income- Each enterprise shall include, in each annual report filed under section 13 of the Securities Exchange Act of 1934 (15Inspector General Act of 1978.’.CommentsClose CommentsPermalink





(b) Direct Hire Authority To Hire Accountants, Economists, and Examiners- Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 78m), the income reported by the issuer to the Internal Revenue Service for the most recent taxable year. Such income shall--`(1) be presented in a prominent location in each such report and in a manner that permits a ready comparison of such income to income otherwise required to be included in such reports under regulations issued under such section; and`(2) be submitted to the Securities and Exchange Commission in a form and manner suitable for entry into the EDGAR system of such Commission for public availability under such system.'4517 ) is amended by adding at the end the following: CommentsClose CommentsPermalink





‘(h) Appointment of Accountants, Economists, and Examiners-CommentsClose CommentsPermalink





‘(1) APPLICABILITY- This section shall apply with respect to any position of examiner, accountant, economist, and specialist in financial markets and in technology at the Agency, with respect to supervision and regulation of the regulated entities, that is in the competitive service.CommentsClose CommentsPermalink





‘(2) APPOINTMENT AUTHORITY- The Director may appoint candidates to any position described in paragraph (1)--CommentsClose CommentsPermalink





‘(A) in accordance with the statutes, rules, and regulations governing appointments in the excepted service; andCommentsClose CommentsPermalink





‘(B) notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.’.CommentsClose CommentsPermalink





(c) Amendments to Inspector General Act- Section 11 of the Inspector General Act of 1978 (5 U.S.C. App.) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by inserting ‘; the Director of the Federal Housing Finance Agency’ after ‘Social Security Administration’; andCommentsClose CommentsPermalink





(2) in paragraph (2), by inserting ‘, the Federal Housing Finance Agency’ after ‘Social Security Administration’.CommentsClose CommentsPermalink





(d) Authority To Contract for Reviews of Regulated Entities- Section 1319 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4519) is amended--CommentsClose CommentsPermalink





(1) in the section heading, by striking ‘enterprises by rating organization’ and inserting ‘regulated entities’; andCommentsClose CommentsPermalink





(2) by striking ‘enterprises’ and inserting ‘regulated entities’.CommentsClose CommentsPermalink





(e) Office of the Ombudsman- Section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(i) Ombudsman- The Director shall establish, by regulation, an Office of the Ombudsman within the Agency, which shall be responsible for considering complaints and appeals, from any regulated entity and any person that has a business relationship with a regulated entity, regarding any matter relating to the regulation and supervision of such regulated entity by the Agency. The regulation issued by the Director under this subsection shall specify the authority and duties of the Office of the Ombudsman.’.CommentsClose CommentsPermalink

SEC. 311106. ASSESSMENTS.

Section 1316 of the Housing and Community Development Act of 1992 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4516) is amended--CommentsClose CommentsPermalink





(1) by striking subsection (a) and inserting the following new subsection:`:CommentsClose CommentsPermalink





‘(a) Annual Assessments- The Director shall establish and collect from the regulated entities annual assessments in an amount not exceeding the amount sufficient to provide for reasonable costs (including administrative costs) and expenses of the Agency, including--CommentsClose CommentsPermalink





`‘(1) the expenses of any examinations under section 1317 of this Act and under section 20 of the Federal Home Loan Bank Act;CommentsClose CommentsPermalink





`‘(2) the expenses of obtaining any reviews and credit assessments under section 1319;CommentsClose CommentsPermalink





`‘(3) such amounts in excess of actual expenses for any given year as deemed necessary by the Director to maintain a working capital fund in accordance with subsection (e); andCommentsClose CommentsPermalink





`(4) the wind up of the affairs of the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board under subtitle C of the Federal Housing Finance Reform Act of 2008.'‘(4) the windup of the affairs of the Office of Federal Housing Enterprise Oversight and the Federal Housing Finance Board under title III of the Federal Housing Finance Regulatory Reform Act of 2008.’;CommentsClose CommentsPermalink





(2) in subsection (b)--CommentsClose CommentsPermalink





(A) in the subsection heading, by striking `Enterprises' and inserting `Regulated Entities';(B) by realigningby realigning the margins of paragraph (2) two ems from the left margin, so as to align the left margin of such paragraph with the left margins of paragraph (1);CommentsClose CommentsPermalink





(C) in paragraph (1)--(i) by striking `Each enterprise' and inserting `Each regulated entity';(ii) by striking `each enterprise' and inserting `each regulated entity'; and(iii) by striking `both enterprises' and inserting `all of the regulated entities'; and(D) in paragraph (3)--(i) in subparagraph (B), by striking `subparagraph (A)' and inserting `clause (i)';(ii) by redesignating subparagraphs (A), (B), and (C) as clauses (i), (iiB) by redesignating paragraphs (2) and (3) as paragraphs (3) and (ii), respectively, and realigning such clauses, as so redesignated, so as to be indented 6 ems from the left margin;(iii) by striking the matter that precedes clause (i), as so redesignated, and inserting the following:`(3) DEFINITION OF TOTAL ASSETS- For purposes of this section, the term `total assets' means as follows:`(A) ENTERPRISES- With respect to an enterprise, the sum of--'; and(iv) by adding at the end the following new subparagraph:`(B) FEDERAL HOME LOAN BANKS- With respect to a Federal home loan bank, the total assets of4), respectively; andCommentsClose CommentsPermalink





(C) by inserting after paragraph (1) the Bank, as determined by the Director in accordance with generally accepted accounting principles.';(3) by striking subsection (c) and inserting the following new subsection:`following:CommentsClose CommentsPermalink





‘(2) SEPARATE TREATMENT OF FEDERAL HOME LOAN BANK AND ENTERPRISE ASSESSMENTS- Assessments collected from the enterprises shall not exceed the amounts sufficient to provide for the costs and expenses described in subsection (a) relating to the enterprises. Assessments collected from the Federal Home Loan Banks shall not exceed the amounts sufficient to provide for the costs and expenses described in subsection (a) relating to the Federal Home Loan Banks.’;CommentsClose CommentsPermalink





(3) by striking subsection (c) and inserting the following:CommentsClose CommentsPermalink





‘(c) Increased Costs of Regulation-CommentsClose CommentsPermalink





`‘(1) INCREASE FOR INADEQUATE CAPITALIZATION- The semiannual payments made pursuant to subsection (b) by any regulated entity that is not classified (for purposes of subtitle B) as adequately capitalized may be increased, as necessary, in the discretion of the Director to pay additional estimated costs of regulation of the regulated entity.CommentsClose CommentsPermalink





`‘(2) ADJUSTMENT FOR ENFORCEMENT ACTIVITIES- The Director may adjust the amounts of any semiannual payments for an assessment under subsection (a) that are to be paid pursuant to subsection (b) by a regulated entity, as necessary in the discretion of the Director, to ensure that the costs of enforcement activities under this Act for a regulated entity are borne only by such regulated entity.CommentsClose CommentsPermalink





`‘(3) ADDITIONAL ASSESSMENT FOR DEFICIENCIES- If at any time, as a result of increased costs of regulation of a regulated entity that is not classified (for purposes of subtitle B) as adequately capitalized or as the result of supervisory or enforcement activities under this Act for a regulated entity, the amount available from any semiannual payment made by such regulated entity pursuant to subsection (b) is insufficient to cover the costs of the Agency with respect to such entity, the Director may make and collect from such regulated entity an immediate assessment to cover the amount of such deficiency for the semiannual period. If, at the end of any semiannual period during which such an assessment is made, any amount remains from such assessment, such remaining amount shall be deducted from the assessment for such regulated entity for the following semiannual period.';(4) in subsection (d), by striking `If' and inserting `’;CommentsClose CommentsPermalink





(4) in subsection (d), by striking ‘If’ and inserting ‘Except with respect to amounts collected pursuant to subsection (a)(3), if'’; andCommentsClose CommentsPermalink





(5) by striking subsections (e) through (g) and inserting the following new subsections:`:CommentsClose CommentsPermalink





‘(e) Working Capital Fund- At the end of each year for which an assessment under this section is made, the Director shall remit to each regulated entity any amount of assessment collected from such regulated entity that is attributable to subsection (a)(3) and is in excess of the amount the Director deems necessary to maintain a working capital fund.CommentsClose CommentsPermalink





`‘(f) Treatment of Assessments-CommentsClose CommentsPermalink





`‘(1) DEPOSIT- Amounts received by the Director from assessments under this section may be deposited by the Director in the manner provided in section 5234 of the Revised Statutes of the United States (12 U.S.C. 192) for monies deposited by the Comptroller of the Currency.CommentsClose CommentsPermalink





`‘(2) NOT GOVERNMENT FUNDS- The amounts received by the Director from any assessment under this section shall not be construed to be Government or public funds or appropriated money.CommentsClose CommentsPermalink





`‘(3) NO APPORTIONMENT OF FUNDS- Notwithstanding any other provision of law, the amounts received by the Director from any assessment under this section shall not be subject to apportionment for the purpose of chapter 15 of title 31, United States Code, or under any otherauthority.` authority.CommentsClose CommentsPermalink





‘(4) USE OF FUNDS- The Director may use any amounts received by the Director from assessments under this section for compensation of the Director and other employees of the Agency and for all other expenses of the Director and the Agency.CommentsClose CommentsPermalink





`‘(5) AVAILABILITY OF OVERSIGHT FUND AMOUNTS- Notwithstanding any other provision of law, any amounts remaining in the Federal Housing Enterprises Oversight Fund established under this section (as in effect before the effective date under section 365 of the Federal Housing Finance Reform Act of 2008)gulatory Reform Act of 2008, and any amounts remaining from assessments on the Federal Home Loan bBanks pursuant to section 18(b) of the Federal Home Loan Bank Act (12 U.S.C. 1438(b)), shall, upon such effective date, be treated for purposes of this subsection as amounts received from assessments under this section.CommentsClose CommentsPermalink





`‘(6) TREASURY INVESTMENTS-CommentsClose CommentsPermalink





`‘(A) AUTHORITY- The Director may request the Secretary of the Treasury to invest such portions of amount received by the Director from assessments paid under this section that, in the Director's received by the Director from assessments paid under this section that, in the Director’s discretion, are not required to meet the current working needs of the Agency.CommentsClose CommentsPermalink





`‘(B) GOVERNMENT OBLIGATIONS- Pursuant to a request under subparagraph (A), the Secretary of the Treasury shall invest such amounts in gGovernment obligations guaranteed as to principal and interest by the United States with maturities suitable to the needs of the Agency and bearing interest at a rate determined by the Secretary of the Treasury taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturity.CommentsClose CommentsPermalink





`(g) Budget and Financial Management-` ‘(g) Budget and Financial Management- CommentsClose CommentsPermalink





‘(1) FINANCIAL OPERATING PLANS AND FORECASTS- The Director shall provide to the Director of the Office of Management and Budget copies of the Director'’s financial operating plans and forecasts, as prepared by the Director in the ordinary course of the Agency'’s operations, and copies of the quarterly reports of the Agency'’s financial condition and results of operations, as prepared by the Director in the ordinary course of the Agency's operations.`’s operations.CommentsClose CommentsPermalink





‘(2) FINANCIAL STATEMENTS- The Agency shall prepare annually a statement of--CommentsClose CommentsPermalink





‘(A) assets and liabilities and surplus or deficit;CommentsClose CommentsPermalink





a statement of income and expenses; and a statement of sources and application of funds.` ‘(B) income and expenses; and CommentsClose CommentsPermalink





‘(C) sources and application of funds.CommentsClose CommentsPermalink





‘(3) FINANCIAL MANAGEMENT SYSTEMS- The Agency shall implement and maintain financial management systems that--CommentsClose CommentsPermalink





‘(A) comply substantially with Federal financial management systems requirements, and applicable Federal accounting standards, and that uses; andCommentsClose CommentsPermalink





‘(B) use a general ledger system that accounts for activity at the transaction level.CommentsClose CommentsPermalink





`‘(4) ASSERTION OF INTERNAL CONTROLS- The Director shall provide to the Comptroller General of the United States an assertion as to the effectiveness of the internal controls that apply to financial reporting by the Agency, using the standards established insection 3512(c) of title 31, United States Code.` section 3512(c) of title 31, United States Code.CommentsClose CommentsPermalink





‘(5) RULE OF CONSTRUCTION- This subsection may not be construed as implying any obligation on the part of the Director to consult with or obtain the consent or approval of the Director of the Office of Management and Budget with respect to any reports, plans, forecasts, plan, forecast, or other information referred to in paragraph (1) or any jurisdiction or oversight over the affairs or operations of the Agency.CommentsClose CommentsPermalink





`(h) Audit of Agency-` ‘(h) Audit of Agency- CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Comptroller General shall annually audit the financial transactions of the Agency in accordance with the U.S.nited States generally accepted government auditing standards as may be prescribed by the Comptroller General of the United States. The audit shall be conducted at the place or places where accounts of the Agency are normally kept. The representatives of the Government Accountability Office shall have access to the personnel and to all books, accounts, documents, papers, records (including electronic records), reports, files, and all other papers, automated data, things, or property belonging to or under the control of or used or employed by the Agency pertaining to its financial transactions and necessary to facilitate the audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. All such books, accounts, documents, records, reports, files, papers, and property of the Agency shall remain in possession and custody of the Agency. The Comptroller General may obtain and duplicate any such books, accounts, documents, records, working papers, automated data and files, or other information relevant to such audit without cost to the Comptroller General and the Comptroller General'’s right of access to such information shall be enforceable pursuant tosection 716(c) of title 31, United States Code.` section 716(c) of title 31, United States Code.CommentsClose CommentsPermalink





‘(2) REPORT- The Comptroller General shall submit to the Congress a report of each annual audit conducted under this subsection. The report to the Congress shall set forth the scope of the audit and shall include the statement of assets and liabilities and surplus or deficit, the statement of income and expenses, the statement of sources and application of funds, and such comments and information as may be deemed necessary to inform Congress of the financial operations and condition of the Agency, together with such recommendations with respect thereto as the Comptroller General may deem advisable. A copy of each report shall be furnished to the President and to the Agency at the time submitted to the Congress.CommentsClose CommentsPermalink





`‘(3) ASSISTANCE AND COSTS- For the purpose of conducting an audit under this subsection, the Comptroller General may, in the discretion of the Comptroller General, employ by contract, without regard tosection 5 of title 41, United States Code section 3709 of the Revised Statutes of the United States (41 U.S.C. 5), professional services of firms and organizations of certified public accountants for temporary periods or for special purposes. Upon the request of the Comptroller General, the Director of the Agency shall transfer to the Government Accountability Office from funds available, the amount requested by the Comptroller General to cover the full costs of any audit and report conducted by the Comptroller General. The Comptroller General shall credit funds transferred to the account established for salaries and expenses of the Government Accountability Office, and such amount shall be available upon receipt and without fiscal year limitation to cover the full costs of the audit and report.'’.CommentsClose CommentsPermalink

SEC. 317. EXAMINERS AND ACCOUNTANTS.(a) Examinations- Section 1317 of the Housing and Community Development Act of 1992 1107. REGULATIONS AND ORDERS.

Section 1319G of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517) is amended--(1) in subsection (a), by adding after the period at the end the following: `Each examination under this subsection of a regulated entity shall include a review of the procedures required to be established and maintained by the regulated entity pursuant to section 1314(c) (relating to fraudulent financial transactions) and the report regarding each such examination shall describe any problems with such procedures maintained by the regulated entity.';(2) in subsection (b)--(A) by inserting `of a regulated entity' after `under this section'; and(B) by striking `to determine the condition of an enterprise for the purpose of ensuring its financial safety and soundness' and inserting `or appropriate'; and(3) in subsection (c)--(A) in the second sentence, by inserting `to conduct examinations under this section' before the period; and(B) in the third sentence, by striking `from amounts available in the Federal Housing Enterprises Oversight Fund'.(b) Enhanced Authority To Hire Examiners and Accountants- Section 1317 of the Housing and Community Development Act of 1992 26) is amended--CommentsClose CommentsPermalink





(1) by striking subsection (a) and inserting the following:CommentsClose CommentsPermalink





‘(a) Authority- The Director shall issue any regulations, guidelines, or orders necessary to carry out the duties of the Director under this title or the authorizing statutes, and to ensure that the purposes of this title and the authorizing statutes are accomplished.’; andCommentsClose CommentsPermalink





(2) by striking subsection (c).CommentsClose CommentsPermalink

(a) In General- Subtitle B of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4517) is amended611 et seq.) is amended--CommentsClose CommentsPermalink





(1) by striking the subtitle designation and heading and inserting the following:CommentsClose CommentsPermalink

andCommentsClose CommentsPermalink





(2) by adding at the end the following new subsection:

`(g) Appointment of Accountants, Economists, Specialists, and Examiners-`(1) APPLICABILITY- This section applies with respect to any position of examiner, accountant, specialist in financial markets, specialist in information technology, and economist at the Agency, with respect to supervision and regulation of the regulated entities, that is in the competitive service.`(2) APPOINTMENT AUTHORITY- The Director may appoint candidates to any position described in paragraph (1)--`(A) in accordance with the statutes, rules, and regulations governing appointments in the excepted service; and`(B) notwithstanding any statutes, rules, and regulations governing appointments in the competitive service.`(3) RULE OF CONSTRUCTION- The appointment of a candidate to a position under the authority of this subsection shall not be considered to cause such position to be converted from the competitive service to the excepted service.'.

(c) Repeal- Section 20ection:CommentsClose CommentsPermalink

Section 1362 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4612) is amended--CommentsClose CommentsPermalink





(1) in subsection (a), by striking ‘In General’ and inserting ‘Enterprises’; andCommentsClose CommentsPermalink





(2) by striking subsection (b) and inserting the following:CommentsClose CommentsPermalink





‘(b) Federal Home Loan Banks- For purposes of this subtitle, the minimum capital level for each Federal Home Loan Bank shall be the minimum capital required to be maintained to comply with the leverage requirement for the bank established under section 6(a)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1440) is amended--(1) by striking the section heading and inserting the following: `EXAMINATIONS AND GAO AUDITS';(2) in the third sentence, by striking `the Board and' each place such term appears; and(3) by striking the first two sentences and inserting the following: `The Federal home loan banks shall be subject to examinations by the Director to the extent provided in26(a)(2)).CommentsClose CommentsPermalink





‘(c) Establishment of Revised Minimum Capital Levels- Notwithstanding subsections (a) and (b) and notwithstanding the capital classifications of the regulated entities, the Director may, by regulations issued under section 1317 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (129G, establish a minimum capital level for the enterprises, for the Federal Home Loan Banks, or for both the enterprises and the banks, that is higher than the level specified in subsection (a) for the enterprises or the level specified in subsection (b) for the Federal Home Loan Banks, to the extent needed to ensure that the regulated entities operate in a safe and sound manner.CommentsClose CommentsPermalink





‘(d) Authority To Require Temporary Increase-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Notwithstanding subsections (a) and (b) and any minimum capital level established pursuant to subsection (c), the Director may, by order, increase the minimum capital level for a regulated entity on a temporary basis, when the Director determines that such an increase is necessary and consistent with the prudential regulation and the safe and sound operations of a regulated entity.CommentsClose CommentsPermalink





‘(2) RESCISSION- The Director shall rescind any temporary minimum capital level established under paragraph (1) when the Director determines that the circumstances or facts no longer justify the temporary minimum capital level.CommentsClose CommentsPermalink





‘(3) REGULATIONS REQUIRED- The Director shall issue regulations establishing--CommentsClose CommentsPermalink





‘(A) standards for the imposition of a temporary increase in minimum capital under paragraph (1);CommentsClose CommentsPermalink





‘(B) the standards and procedures that the Director will use to make the determination referred to in paragraph (2); andCommentsClose CommentsPermalink





‘(C) a reasonable time frame for periodic review of any temporary increase in minimum capital for the purpose of making the determination referred to in paragraph (2).CommentsClose CommentsPermalink





‘(e) Authority To Establish Additional Capital and Reserve Requirements for Particular Purposes- The Director may, at any time by order or regulation, establish such capital or reserve requirements with respect to any product or activity of a regulated entity, as the Director considers appropriate to ensure that the regulated entity operates in a safe and sound manner, with sufficient capital and reserves to support the risks that arise in the operations and management of the regulated entity.CommentsClose CommentsPermalink





‘(f) Periodic Review- The Director shall periodically review the amount of core capital maintained by the enterprises, the amount of capital retained by the Federal Home Loan Banks, and the minimum capital levels established for such regulated entities pursuant to this section.’.CommentsClose CommentsPermalink

The Securities Exchange Act of 1934 ( 15 U.S.C. 4517).'78a et seq.) is amended by adding at the end the following: CommentsClose CommentsPermalink

‘SEC. 38. FEDERAL NATIONAL MORTGAGE ASSOCIATION, FEDERAL HOME LOAN MORTGAGE CORPORATION, FEDERAL HOME LOAN BANKS.

‘(a) Federal National Mortgage Association and Federal Home Loan Mortgage Corporation- No class of equity securities of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation shall be treated as an exempted security for purposes of section 12, 13, 14, or 16.CommentsClose CommentsPermalink





‘(b) Federal Home Loan Banks-CommentsClose CommentsPermalink





‘(1) REGISTRATION- Each Federal Home Loan Bank shall register a class of its common stock under section 12(g), not later than 120 days after the date of enactment of the Federal Housing Finance Regulatory Reform Act of 2008, and shall thereafter maintain such registration and be treated for purposes of this title as an ‘issuer’, the securities of which are required to be registered under section 12, regardless of the number of members holding such stock at any given time.CommentsClose CommentsPermalink





‘(2) STANDARDS RELATING TO AUDIT COMMITTEES- Each Federal Home Loan Bank shall comply with the rules issued by the Commission under section 10A(m).CommentsClose CommentsPermalink





‘(c) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





‘(1) FEDERAL HOME LOAN BANK; MEMBER- The terms ‘Federal Home Loan Bank’ and ‘member’, have the same meanings as in section 2 of the Federal Home Loan Bank Act.CommentsClose CommentsPermalink





‘(2) FEDERAL NATIONAL MORTGAGE ASSOCIATION- The term ‘Federal National Mortgage Association’ means the corporation created by the Federal National Mortgage Association Charter Act.CommentsClose CommentsPermalink





‘(3) FEDERAL HOME LOAN MORTGAGE CORPORATION- The term ‘Federal Home Loan Mortgage Corporation’ means the corporation created by the Federal Home Loan Mortgage Corporation Act.’.CommentsClose CommentsPermalink

SEC. 3181113. PROHIBITION AND WITHHOLDING OF EXECUTIVE COMPENSATION.

(a) In General- Section 1318 of the Housing and Community Development Act of 1992 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518) is amended--CommentsClose CommentsPermalink





(1) in the section heading, by striking `of excessive' and inserting `and withholding of executive';(2‘of excessive’ and inserting ‘and withholding of executive’;CommentsClose CommentsPermalink





(2) in subsection (a)--CommentsClose CommentsPermalink





(A) by striking ‘enterprise’ and inserting ‘regulated entity’; andCommentsClose CommentsPermalink





(B) by striking ‘enterprises’ and inserting ‘regulated entities’;CommentsClose CommentsPermalink





(3) by redesignating subsection (b) as subsection (d); andCommentsClose CommentsPermalink





(34) by inserting after subsection (a) the following new subsections:`:CommentsClose CommentsPermalink





‘(b) Factors- In making any determination under subsection (a), the Director may take into consideration any factors the Director considers relevant, including any wrongdoing on the part of the executive officer, and such wrongdoing shall include any fraudulent act or omission, breach of trust or fiduciary duty, violation of law, rule, regulation, order, or written agreement, and insider abuse with respect to the regulated entity. The approval of an agreement or contract pursuant to section 309(d)(3)(B) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)(3)(B)) or section 303(h)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)(2)) shall not preclude the Director from making any subsequent determination under subsection (a).CommentsClose CommentsPermalink





`‘(c) Withholding of Compensation- In carrying out subsection (a), the Director may require a regulated entity to withhold any payment, transfer, or disbursement of compensation to an executive officer, or to place such compensation in an escrow account, during the review of the reasonableness and comparability of compensation.'’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(1) FANNIE MAE- Section 309(d) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(d)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`‘(4) Notwithstanding any other provision of this section, the corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).'’.CommentsClose CommentsPermalink





(2) FREDDIE MAC- Section 303(h) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452(h)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(4) Notwithstanding any other provision of this section, the Corporation shall not‘(4) Notwithstanding any other provision of this section, the Corporation shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).'’.CommentsClose CommentsPermalink





(3) FEDERAL HOME LOAN BANKS- Section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





`‘(l) Withholding of Compensation- Notwithstanding any other provision of this section, a Federal home loan bHome Loan Bank shall not transfer, disburse, or pay compensation to any executive officer, or enter into an agreement with such executive officer, without the approval of the Director, for matters being reviewed under section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518).'’.CommentsClose CommentsPermalink

SEC. 319. REVIEWS OF REGULATED ENTITI1114. LIMIT ON GOLDEN PARACHUTES.

Section 1319 of the Housing and Community Development Act of 1992 8 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4519) is amended--(1) by striking the section designation and heading and inserting the following:

`SEC. 1319. REVIEWS OF REGULATED ENTITIES.';

and(2) by striking `is a nationally recognized' and all that follows through `1934' and inserting the following: `the Director considers appropriate, including an entity that is registered under section 15 of the Securities Exchange Act of 1934 (158) is amended by adding at the end the following:CommentsClose CommentsPermalink




‘(e) Authority To Regulate or Prohibit Certain Forms of Benefits to Affiliated Parties-CommentsClose CommentsPermalink





‘(1) GOLDEN PARACHUTES AND INDEMNIFICATION PAYMENTS- The Director may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment.CommentsClose CommentsPermalink





‘(2) FACTORS TO BE TAKEN INTO ACCOUNT- The Director shall prescribe, by regulation, the factors to be considered by the Director in taking any action pursuant to paragraph (1), which may include such factors as--CommentsClose CommentsPermalink





‘(A) whether there is a reasonable basis to believe that the affiliated party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the regulated entity that has had a material effect on the financial condition of the regulated entity;CommentsClose CommentsPermalink





‘(B) whether there is a reasonable basis to believe that the affiliated party is substantially responsible for the insolvency of the regulated entity, the appointment of a conservator or receiver for the regulated entity, or the troubled condition of the regulated entity (as defined in regulations prescribed by the Director);CommentsClose CommentsPermalink





‘(C) whether there is a reasonable basis to believe that the affiliated party has materially violated any applicable provision of Federal or State law or regulation that has had a material effect on the financial condition of the regulated entity;CommentsClose CommentsPermalink





‘(D) whether the affiliated party was in a position of managerial or fiduciary responsibility; andCommentsClose CommentsPermalink





‘(E) the length of time that the party was affiliated with the regulated entity, and the degree to which--CommentsClose CommentsPermalink





‘(i) the payment reasonably reflects compensation earned over the period of employment; andCommentsClose CommentsPermalink





‘(ii) the compensation involved represents a reasonable payment for services rendered.CommentsClose CommentsPermalink





‘(3) CERTAIN PAYMENTS PROHIBITED- No regulated entity may prepay the salary or any liability or legal expense of any affiliated party if such payment is made--CommentsClose CommentsPermalink





‘(A) in contemplation of the insolvency of such regulated entity, or after the commission of an act of insolvency; andCommentsClose CommentsPermalink





‘(B) with a view to, or having the result of--CommentsClose CommentsPermalink





‘(i) preventing the proper application of the assets of the regulated entity to creditors; orCommentsClose CommentsPermalink





‘(ii) preferring one creditor over another.CommentsClose CommentsPermalink





‘(4) GOLDEN PARACHUTE PAYMENT DEFINED-CommentsClose CommentsPermalink





‘(A) IN GENERAL- For purposes of this subsection, the term ‘golden parachute payment’ means any payment (or any agreement to make any payment) in the nature of compensation by any regulated entity for the benefit of any affiliated party pursuant to an obligation of such regulated entity that--CommentsClose CommentsPermalink





‘(i) is contingent on the termination of such party’s affiliation with the regulated entity; andCommentsClose CommentsPermalink





‘(ii) is received on or after the date on which--CommentsClose CommentsPermalink





‘(I) the regulated entity became insolvent;CommentsClose CommentsPermalink





‘(II) any conservator or receiver is appointed for such regulated entity; orCommentsClose CommentsPermalink





‘(III) the Director determines that the regulated entity is in a troubled condition (as defined in the regulations of the Director).CommentsClose CommentsPermalink





‘(B) CERTAIN PAYMENTS IN CONTEMPLATION OF AN EVENT- Any payment which would be a golden parachute payment but for the fact that such payment was made before the date referred to in subparagraph (A)(ii) shall be treated as a golden parachute payment if the payment was made in contemplation of the occurrence of an event described in any subclause of such subparagraph.CommentsClose CommentsPermalink





‘(C) CERTAIN PAYMENTS NOT INCLUDED- For purposes of this subsection, the term ‘golden parachute payment’ shall not include--CommentsClose CommentsPermalink





‘(i) any payment made pursuant to a retirement plan which is qualified (or is intended to be qualified) under section 401 of the Internal Revenue Code of 1986, or other nondiscriminatory benefit plan;CommentsClose CommentsPermalink





‘(ii) any payment made pursuant to a bona fide deferred compensation plan or arrangement which the Director determines, by regulation or order, to be permissible; orCommentsClose CommentsPermalink





‘(iii) any payment made by reason of the death or disability of an affiliated party.CommentsClose CommentsPermalink





‘(5) OTHER DEFINITIONS- For purposes of this subsection, the following definitions shall apply:CommentsClose CommentsPermalink





‘(A) INDEMNIFICATION PAYMENT- Subject to paragraph (6), the term ‘indemnification payment’ means any payment (or any agreement to make any payment) by any regulated entity for the benefit of any person who is or was an affiliated party, to pay or reimburse such person for any liability or legal expense with regard to any administrative proceeding or civil action instituted by the Agency which results in a final order under which such person--CommentsClose CommentsPermalink





‘(i) is assessed a civil money penalty;CommentsClose CommentsPermalink





‘(ii) is removed or prohibited from participating in conduct of the affairs of the regulated entity; orCommentsClose CommentsPermalink





‘(iii) is required to take any affirmative action to correct certain conditions resulting from violations or practices, by order of the Director.CommentsClose CommentsPermalink





‘(B) LIABILITY OR LEGAL EXPENSE- The term ‘liability or legal expense’ means--CommentsClose CommentsPermalink





‘(i) any legal or other professional expense incurred in connection with any claim, proceeding, or action;CommentsClose CommentsPermalink





‘(ii) the amount of, and any cost incurred in connection with, any settlement of any claim, proceeding, or action; andCommentsClose CommentsPermalink





‘(iii) the amount of, and any cost incurred in connection with, any judgment or penalty imposed with respect to any claim, proceeding, or action.CommentsClose CommentsPermalink





‘(C) PAYMENT- The term ‘payment’ includes--CommentsClose CommentsPermalink





‘(i) any direct or indirect transfer of any funds or any asset; andCommentsClose CommentsPermalink





‘(ii) any segregation of any funds or assets for the purpose of making, or pursuant to an agreement to make, any payment after the date on which such funds or assets are segregated, without regard to whether the obligation to make such payment is contingent on--CommentsClose CommentsPermalink





‘(I) the determination, after such date, of the liability for the payment of such amount; orCommentsClose CommentsPermalink





‘(II) the liquidation, after such date, of the amount of such payment.CommentsClose CommentsPermalink





‘(6) CERTAIN COMMERCIAL INSURANCE COVERAGE NOT TREATED AS COVERED BENEFIT PAYMENT- No provision of this subsection shall be construed as prohibiting any regulated entity from purchasing any commercial insurance policy or fidelity bond, except that, subject to any requirement described in paragraph (5)(A)(iii), such insurance policy or bond shall not cover any legal or liability expense of the regulated entity which is described in paragraph (5)(A).’.CommentsClose CommentsPermalink

Part 1 of subtitle C of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 78a) as a nationally registered statistical rating organization'4631 et seq.), as amended by this Act, is amended by adding at the end the following: CommentsClose CommentsPermalink

‘SEC. 1379E. REPORTING OF FRAUDULENT LOANS.

‘(a) Requirement to Report- The Director shall require a regulated entity to submit to the Director a timely report upon discovery by the regulated entity that it has purchased or sold a fraudulent loan or financial instrument, or suspects a possible fraud relating to the purchase or sale of any loan or financial instrument. The Director shall require each regulated entity to establish and maintain procedures designed to discover any such transactions.CommentsClose CommentsPermalink





‘(b) Protection From Liability for Reports- Any regulated entity that, in good faith, makes a report pursuant to subsection (a), and any entity-affiliated party, that, in good faith, makes or requires another to make any such report, shall not be liable to any person under any provision of law or regulation, any constitution, law, or regulation of any State or political subdivision of any State, or under any contract or other legally enforceable agreement (including any arbitration agreement) for such report or for any failure to provide notice of such report to the person who is the subject of such report or any other persons identified in the report.’.CommentsClose CommentsPermalink

SEC. 3201116. INCLUSION OF MINORITIES AND WOMEN; DIVERSITY IN AGENCY WORKFORCE.

Section 1319A of the Housing and Community Development Act of 1992 (12 U.S.C. 4520) is amended--CommentsClose CommentsPermalink





(1) in the section heading, by striking `‘equal opportunity in solicitation of contracts' and inserting `’ and inserting ‘minority and women inclusion; diversity requirements';(2) in subsection (a), by striking `(a) In General- Each enterprise' and inserting `(e) ’;CommentsClose CommentsPermalink





(2) in subsection (a), by striking ‘(a) In General- Each enterprise’ and inserting ‘(e) Outreach- Each regulatedentity' entity’; andCommentsClose CommentsPermalink





(3) by striking subsection (b);CommentsClose CommentsPermalink





(4) by inserting before subsection (e), as so redesignated by paragraph (2) of this section, the following new subsections:CommentsClose CommentsPermalink





`(a) Office of ‘(a) Office of Minority and Women Inclusion- Each regulated entity shall establish an Office of Minority and Women Inclusion, or designate an office of the entity, that shall be responsible for carrying out this section and all matters of the entity relating to diversity in management, employment, and business activities in accordance with such standards and requirements as the Director shall establish.CommentsClose CommentsPermalink





`(b) ‘(b) Inclusion in All Levels of Business Activities- Each regulated entity shall develop and implement standards and procedures to ensure, to the maximum extent possible, the inclusion and utilization of minorities (as such term is defined in section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and women, and minority- and women-owned businesses (as such terms are defined in section 21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including financial institutions, investment banking firms, mortgage banking firms, asset management firms, broker-dealers, financial services firms, underwriters, accountants, brokers, investment consultants, and providers of legal services) in all business and activities of the regulated entity at all levels, including in procurement, insurance, and all types of contracts (including contracts for the issuance or guarantee of any debt, equity, or mortgage-related securities, the management of its mortgage and securities portfolios, the making of its equity investments, the purchase, sale and servicing of single- and multi-family mortgage loans, and the implementation of its affordable housing program and initiatives). The processes established by each regulated entity for review and evaluation for contract proposals and to hire service providers shall include a component that gives consideration to the diversity of the applicant.CommentsClose CommentsPermalink





`‘(c) Applicability- This section shall apply to all contracts of a regulated entity for services of any kind, including services that require the services of investment banking, asset management entities, broker-dealers, financial services entities, underwriters, accountants, investment consultants, and providers of legal services.CommentsClose CommentsPermalink





`‘(d) Inclusion in Annual Reports- Each regulated entity shall include, in the annual report submitted by the entity to the Director pursuant to section 309(k) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1723a(k)), section 307(c) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1456(c)), and section 20 of the Federal Home Loan Bank Act (12 U.S.C. 1440), as applicable, detailed information describing the actions taken by the entity pursuant to this section, which shall include a statement of the total amounts paid by the entity to third party contractors since the last such report and the percentage of such amounts paid to businesses described in subsection (b) of this section.'’; andCommentsClose CommentsPermalink





(5) by adding at the end the following new subsection:CommentsClose CommentsPermalink





`(f)‘(f) Diversity in Agency Workforce- The Agency shall take affirmative steps to seek diversity in its workforce at all levels of the agency consistent with the demographic diversity of the United States, which shall include--CommentsClose CommentsPermalink





`‘(1) heavily recruiting at historically Black colleges and universities, Hispanic-serving institutions, women'’s colleges, and colleges that typically serve majority minority populations;CommentsClose CommentsPermalink





`‘(2) sponsoring and recruiting at job fairs in urban communities, and placing employment advertisements in newspapers and magazines oriented toward women and people of color;CommentsClose CommentsPermalink





`‘(3) partnering with organizations that are focused on developing opportunities for minorities and women to place talented young minorities and women in industry internships, summer employment, and full-time positions; andCommentsClose CommentsPermalink





`‘(4) where feasible, partnering with inner-city high schools, girls'’ high schools, and high schools with majority minority populations to establish or enhance financial literacy programs and provide mentoring.'’.CommentsClose CommentsPermalink

SEC. 321. REGULATIONS AND ORDERS.Section 1319G of the Housing and Community Development Act of 1992 (12 U.S.C. 4526) is amended--(1) by striking subsection (a) and inserting the following new subsection:`1117. TEMPORARY AUTHORITY FOR PURCHASE OF OBLIGATIONS OF REGULATED ENTITIES BY SECRETARY OF TREASURY.

(a) Authority- The Director shall issue any regulations, guidelines, and orders necessary to carry out the duties of the Director under this title and each of the authorizing statutes to ensure that the purposes of this title and such statutes are accomplished.';(2) in subsection (b), by inserting `, this title, or any of the authorizing statutes' after `under this section'; and(3) by striking subsection (c).SEC. 322. NON-WAIVER OF PRIVILEGES.Part 1 of subtitle A of title XIII of the Housing and Community Development Act of 1992Fannie Mae- Section 304 of the Federal National Mortgage Association Charter Act (12 U.S.C. 45111719) is amended by adding at the end the following new section:

`SEC. 1319H. PRIVILEGES NOT AFFECTED BY DISCLOSURE.`(a) In General- The submission by any person of any information to the Agency for any purpose in the course of any supervisory or regulatory process of the Agency shall not be construed as waiving, destroying, or otherwise affecting any privilege such person may claim with respect to such information under Federal or State law as to any person or entity other than the Agency.`(b) Rule of Construction- No provision of subsection (a) may be construed as implying or establishing that--`(1) any person waives any privilege applicable to information that is submitted or transferred under any circumstance to which subsection (a) does not apply; or`(2) any person would waive any privilege applicable to any information by submitting the information to the Agency, but for this subsection.'.

SEC. 323. RISK-BASED CAPITAL REQUIREMENTS.(a) In General- Section 1361 of the Housing and Community Development Act of 1992 (12 U.S.C. 4611) is amended to read as follows:`SEC. 1361. RISK-BASED CAPITAL LEVELS FOR REGULATED ENTITIES.`(a) In General-`(1) ENTERPRISES- The Director shall, by regulation, establish risk-based capital requirements for the enterprises to ensure that the enterprises operate in a safe and sound manner, maintaining sufficient capital and reserves to support the risks that arise in the operations and management of the enterprises.`(2) FEDERAL HOME LOAN BANKS- The Director shall establish risk-based capital standards under section 6 of the Federal Home Loan Bank Act for the Federal home loan banks.`(b) Confidentiality of Information- Any person that receives any book, record, or information from the Director or a regulated entity to enable the risk-based capital requirements established under this section to be applied shall--`(1)ubsection:CommentsClose CommentsPermalink




‘(g) Temporary Authority of Treasury to Purchase Obligations and Securities; Conditions-CommentsClose CommentsPermalink





‘(1) AUTHORITY TO PURCHASE-CommentsClose CommentsPermalink





‘(A) GENERAL AUTHORITY- In addition to the authority under subsection (c) of this section, the Secretary of the Treasury is authorized to purchase any obligations and other securities issued by the corporation under any section of this Act, on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine. Nothing in this subsection requires the corporation to issue obligations or securities to the Secretary without mutual agreement between the Secretary and the corporation. Nothing in this subsection permits or authorizes the Secretary, without the agreement of the corporation, to engage in open market purchases of the common securities of the corporation.CommentsClose CommentsPermalink





‘(B) EMERGENCY DETERMINATION REQUIRED- In connection with any use of this authority, the Secretary must determine that such actions are necessary to--CommentsClose CommentsPermalink





‘(i) provide stability to the financial markets;CommentsClose CommentsPermalink





‘(ii) prevent disruptions in the availability of mortgage finance; andCommentsClose CommentsPermalink





‘(iii) protect the taxpayer.CommentsClose CommentsPermalink





‘(C) CONSIDERATIONS- To protect the taxpayers, the Secretary of the Treasury shall take into consideration the following in connection with exercising the authority contained in this paragraph:CommentsClose CommentsPermalink





‘(i) The need for preferences or priorities regarding payments to the Government.CommentsClose CommentsPermalink





‘(ii) Limits on maturity or disposition of obligations or securities to be purchased.CommentsClose CommentsPermalink





‘(iii) The corporation’s plan for the orderly resumption of private market funding or capital market access.CommentsClose CommentsPermalink





‘(iv) The probability of the corporation fulfilling the terms of any such obligation or other security, including repayment.CommentsClose CommentsPermalink





‘(v) The need to maintain the confidentiality of the book, record, or information in a manner that is generally consistent with the level of confidentiality established for the material by the Director or the regulated entity; and`(2) be exempt fromsection 552 of title 5, United States Code, with respect to the book, record, or information.`(c) No Limitation- Nothing in this section shall limit the authority of the Director to require other reports or undertakings, or take other action, in furtherance of the responsibilities of the Director under this Act.'.(b) Federal Home Loan Banks Risk-Based Capital- Section 6(a)(3) of the Federal Home Loan Bank Act (12 U.S.C. 1426(a)(3)) is amended--(1) by striking subparagraph (A) and inserting the following new subparagraph:`(A) RISK-BASED CAPITAL STANDARDS- The Director shall, by regulation, establish risk-based capital standards for the Federal home loan banks to ensure that the Federal home loan banks operate in a safe and sound manner, with sufficient permanent capital and reserves to support the risks that arise in the operations and management of the Federal home loans banks.'; and(2) in subparagraph (B), by striking `(A)(ii)' and inserting `(A)'.SEC. 324. MINIMUM AND CRITICAL CAPITAL LEVELS.(a) Minimum Capital Level- Section 1362 of the Housing and Community Development Act of 1992 (12 U.S.C. 4612) is amended--(1) in subsection (a), by striking `In General' and inserting `Enterprises'; and(2) by striking subsection (b) and inserting the following new subsections:`(b) Federal Home Loan Banks- For purposes of this subtitle, the minimum capital level for each Federal home loan bank shall be the minimum capital required to be maintained to comply with the leverage requirement for the bank established under section 6(a)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1426(a)(2)).`(c) Establishment of Revised Minimum Capital Levels- Notwithstanding subsections (a) and (b) and notwithstanding the capital classifications of the regulated entities, the Director may, by regulations issued under section 1319G, establish a minimum capital level for the enterprises, for the Federal home loan banks, or for both the enterprises and the banks, that is higher than the level specified in subsection (a) for the enterprises or the level specified in subsection (b) for the Federal home loan banks, to the extent needed to ensure that the regulated entities operate in a safe and sound manner.`(d) Authority To Require Temporary Increase- Notwithstanding subsections (a) and (b) and any minimum capital level established pursuant to subsection (c), the Director may, by order, increase the minimum capital level for a regulated entity on a temporary basis for such period as the Director may provide if the Director--`(1) makes any determination specified in subparagraphs (A) through (C) of section 1364(c)(1);`(2) determines that the regulated entity has violated any of the prudential standards established pursuant to section 1313A and, as a result of such violation, determines that an unsafe and unsound condition exists; or`(3) determines that an unsafe and unsound condition exists, except that a temporary increase in minimum capital imposed on a regulated entity pursuant to this paragraph shall not remain in place for a period of more than 6 months unless the Director makes a renewed determination of the existence of an unsafe and unsound condition.`(e) Authority To Establish Additional Capital and Reserve Requirements for Particular Programs- The Director may, at any time by order or regulation, establish such capital or reserve requirements with respect to any program or activity of a regulated entity as the Director considers appropriate to ensure that the regulated entity operates in a safe and sound manner, with sufficient capital and reserves to support the risks that arise in the operations and management of the regulated entity.`(f) Periodic Review- The Director shall periodically review the amount of core capital maintained by the enterprises, the amount of capital retained by the Federal home loan banks, and the minimum capital levels established for such regulated entities pursuant to this section. The Director shall rescind any temporary minimum capital level increase if the Director determines that the circumstances or facts justifying the temporary increase are no longer present.'rporation’s status as a private shareholder-owned company.CommentsClose CommentsPermalink





‘(vi) Restrictions on the use of corporation resources, including limitations on the payment of dividends and executive compensation and any such other terms and conditions as appropriate for those purposes.CommentsClose CommentsPermalink





‘(D) REPORTS TO CONGRESS- Upon exercise of this authority, the Secretary shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate as to the necessity for the purchase and the determinations made by the Secretary under subparagraph (B) and with respect to the considerations required under subparagraph (C), and the size, terms, and probability of repayment or fulfillment of other terms of such purchase.CommentsClose CommentsPermalink





‘(2) RIGHTS; SALE OF OBLIGATIONS AND SECURITIES-CommentsClose CommentsPermalink





‘(A) EXERCISE OF RIGHTS- The Secretary of the Treasury may, at any time, exercise any rights received in connection with such purchases.CommentsClose CommentsPermalink





‘(B) SALE OF OBLIGATION AND SECURITIES- The Secretary of the Treasury may, at any time, subject to the terms of the security or otherwise upon terms and conditions and at prices determined by the Secretary, sell any obligation or security acquired by the Secretary under this subsection.CommentsClose CommentsPermalink





‘(C) APPLICATION OF SUNSET TO PURCHASED OBLIGATIONS OR SECURITIES- The authority of the Secretary of the Treasury to hold, exercise any rights received in connection with, or sell, any obligations or securities purchased is not subject to the provisions of paragraph (4).CommentsClose CommentsPermalink





‘(3) FUNDING- For the purpose of the authorities granted in this subsection, the Secretary of the Treasury may use the proceeds of the sale of any securities issued under chapter 31 of Title 31, and the purposes for which securities may be issued under chapter 31 of Title 31 are extended to include such purchases and the exercise of any rights in connection with such purchases. Any funds expended for the purchase of, or modifications to, obligations and securities, or the exercise of any rights received in connection with such purchases under this subsection shall be deemed appropriated at the time of such purchase, modification, or exercise.CommentsClose CommentsPermalink





‘(4) TERMINATION OF AUTHORITY- The authority under this subsection (g), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009.CommentsClose CommentsPermalink





‘(5) AUTHORITY OF THE DIRECTOR WITH RESPECT TO EXECUTIVE COMPENSATION- The Director shall have the power to approve, disapprove, or modify the executive compensation of the corporation, as defined under Regulation S-K, 17 C.F.R. 229.’.CommentsClose CommentsPermalink





(b) Critical Capital Levels-(1) IN GENERAL- Section 1363 of the Housing and Community Development Act of 1992 Freddie Mac- Section 306 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 4613) is amended--(A) by striking `For' and inserting `(a) Enterprises- For'; and(B) by adding at the end the following new subsection:`(b) Federal Home Loan Banks-`(1) IN GENERAL- For purposes of this subtitle, the critical capital level for each Federal home loan bank shall be such amount of capital as the Director shall, by regulation require.`(2) CONSIDERATION OF OTHER CRITICAL CAPITAL LEVELS- In establishing the critical capital level under paragraph (1) for the Federal home loan banks, the Director shall take due consideration of the critical capital level established under subsection (a) for the enterprises, with such modifications as the Director determines to be appropriate1455) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(l) Temporary Authority of Treasury to reflect the difference in operations between the banks and the enterprises.'.(2) REGULATIONS- Not later than the expirationPurchase Obligations and Securities; Conditions-CommentsClose CommentsPermalink





‘(1) AUTHORITY TO PURCHASE-CommentsClose CommentsPermalink





‘(A) GENERAL AUTHORITY- In addition to the authority under subsection (c) of this section, the Secretary of the Treasury is authorized to purchase any obligations and other securities issued by the Corporation under any section of this Act, on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine. Nothing in this subsection requires the Corporation to issue obligations or securities to the Secretary without mutual agreement between the Secretary and the Corporation. Nothing in this subsection permits or authorizes the Secretary, without the agreement of the 180-day period beginning on the effective date under section 365, the Director of the Federal Housing Finance Agency shall issue regulations pursuant to section 1363(b) of the Housing and Community Development Act of 1992 (as added by paragraph (1) of this subsection) establishing the critical capital level under such section.SEC. 325. REVIEW OF AND AUTHORITY OVER ENTERPRISE ASSETS AND LIABILITIES.(a) In General- Subtitle B of title XIII of the Housing and Community Development Act of 1992 (12 U.S.C. 4611 et seq.) is amended--(1) by striking the subtitle designation and heading and inserting the following:

`Subtitle B--Required Capital Levels for Regulated Entities, Special Enforcement Powers, and Reviews of Assets and Liabilities';

and(2) by adding at the end the following new section:`SEC. 1369E. REVIEWS OF ENTERPRISE ASSETS AND LIABILITIES.`(a) In General- The Director shall, by regulation, establish standards by which the portfolio holdings, or rate of growth of the portfolio holdings, of the enterprises will be deemed to be consistent with the mission and the safe and sound operations of the enterprises. In developing such standards, the Director shall consider--`(1) the size or growth of the mortgage market;`(2) the need for the portfolio in maintaining liquidity or stability of the secondary mortgage market (including the market for the mortgage-backed securities the enterprises issue);`(3) the need for an inventory of mortgages in connection with securitizations;`(4) the need for the portfolio to directly support the affordable housing mission of the enterprises;`(5) the liquidity needs of the enterprises;`(6) any potential risks posed to the enterprises by the nature of the portfolio holdings; and`(7) any additional factors that the Director determines to be necessary to carry out the purpose under the first sentence of this subsection to establish standards for assessing whether the portfolio holdings are consistent with the mission and safe and sound operations of the enterprises.`(b) Temporary Adjustments- The Director may, by order, make temporary adjustments to the established standards for an enterprise or both enterprises, such as during times of economic distress or market disruption.`(c) Authority To Require Disposition or Acquisition- The Director shall monitor the portfolio of each enterprise. Pursuant to subsection (a) and notwithstanding the capital classifications of the enterprises, the Director may, by order, require an enterprise, under such terms and conditions as the Director determines to be appropriate, to dispose of or acquire any asset, if the Director determines that such action is consistent with the purposes of this Act or any of the authorizing statutes.'.(b) Regulations- Not later than the expirationCorporation, to engage in open market purchases of the common securities of the Corporation.CommentsClose CommentsPermalink




‘(B) EMERGENCY DETERMINATION REQUIRED- In connection with any use of this authority, the Secretary must determine that such actions are necessary to--CommentsClose CommentsPermalink





‘(i) provide stability to the financial markets;CommentsClose CommentsPermalink





‘(ii) prevent disruptions in the availability of mortgage finance; andCommentsClose CommentsPermalink





‘(iii) protect the taxpayer.CommentsClose CommentsPermalink





‘(C) CONSIDERATIONS- To protect the taxpayers, the Secretary of the Treasury shall take into consideration the following in connection with exercising the authority contained in this paragraph:CommentsClose CommentsPermalink





‘(i) The need for preferences or priorities regarding payments to the Government.CommentsClose CommentsPermalink





‘(ii) Limits on maturity or disposition of obligations or securities to be purchased.CommentsClose CommentsPermalink





‘(iii) The Corporation’s plan for the orderly resumption of private market funding or capital market access.