HCDA -- TITLE XIII - GOVERNMENT SPONSORED ENTERPRISES

           TITLE XIII - GOVERNMENT SPONSORED ENTERPRISES

SEC. 1301. SHORT TITLE.

  This title may be cited as the 'Federal Housing Enterprises
Financial Safety and Soundness Act of 1992'.

SEC. 1302. CONGRESSIONAL FINDINGS.

  The Congress finds that -

      (1) the Federal National Mortgage Association and the Federal
    Home Loan Mortgage Corporation (referred to in this section
    collectively as the 'enterprises'), and the Federal Home Loan
    Banks (referred to in this section as the 'Banks'), have
    important public missions that are reflected in the statutes
    and charter Acts establishing the Banks and the enterprises;

      (2) because the continued ability of the Federal National
    Mortgage Association and the Federal Home Loan Mortgage
    Corporation to accomplish their public missions is important to
    providing housing in the United States and the health of the
    Nation's economy, more effective Federal regulation is needed
    to reduce the risk of failure of the enterprises;

      (3) considering the current operating procedures of the
    Federal National Mortgage Association, the Federal Home Loan
    Mortgage Corporation, and the Federal Home Loan Banks, the
    enterprises and the Banks currently pose low financial risk of
    insolvency;

      (4) neither the enterprises nor the Banks, nor any securities
    or obligations issued by the enterprises or the Banks, are
    backed by the full faith and credit of the United States;

      (5) an entity regulating the Federal National Mortgage
    Association and the Federal Home Loan Mortgage Corporation
    should have sufficient autonomy from the enterprises and
    special interest groups;

      (6) an entity regulating such enterprises should have the
    authority to establish capital standards, require financial
    disclosure, prescribe adequate standards for books and records
    and other internal controls, conduct examinations when
    necessary, and enforce compliance with the standards and rules
    that it establishes;

      (7) the Federal National Mortgage Association and the Federal
    Home Loan Mortgage Corporation have an affirmative obligation
    to facilitate the financing of affordable housing for low- and
    moderate-income families in a manner consistent with their
    overall public purposes, while maintaining a strong financial
    condition and a reasonable economic return; and

      (8) the Federal Home Loan Bank Act should be amended to
    emphasize that providing for financial safety and soundness of
    the Federal Home Loan Banks is the primary mission of the
    Federal Housing Finance Board.

SEC. 1303. DEFINITIONS.

  For purposes of this title:

      (1) Affiliate  . - Except as provided by the Director, the
term 'affiliate' means any entity that controls, is controlled by,
or is under common control with, an enterprise.

      (2) Capital distribution  . -

          (A) In general  . - The term 'capital distribution' means
-

              (i) any dividend or other distribution in cash or in
            kind made with respect to any shares of, or other
            ownership interest in, an enterprise, except a dividend
            consisting only of shares of the enterprise;

              (ii) any payment made by an enterprise to repurchase,
            redeem, retire, or otherwise acquire any of its shares,
            including any extension of credit made to finance an
            acquisition by the enterprise of such shares; and

              (iii) any transaction that the Director determines by
            regulation to be, in substance, the distribution of
            capital.

          (B) Exception  . - Any payment made by an enterprise to
repurchase its shares for the purpose of fulfilling an obligation
of the enterprise under an employee stock ownership plan that is
qualified under section 401 of the Internal Revenue Code of 1986 or
any substantially equivalent plan, as determined by the Director,
shall not be considered a capital distribution.

      (3) Compensation. - The term 'compensation' means any payment
    of money or the provision of any other thing of current or
    potential value in connection with employment.

      (4) Core capital. - The term 'core capital' means, with
    respect to an enterprise, the sum of the following (as
    determined in accordance with generally accepted accounting
    principles):

          (A) The par or stated value of outstanding common stock.

          (B) The par or stated value of outstanding perpetual,
        noncumulative preferred stock.

          (C) Paid-in capital.

          (D) Retained earnings.

    The core capital of an enterprise shall not include any amounts
    that the enterprise could be required to pay, at the option of
    investors, to retire capital instruments.

      (5) Director. - The term 'Director' means the Director of the
    Office of Federal Housing Enterprise Oversight of the
    Department of Housing and Urban Development.

      (6) Enterprise. - The term 'enterprise' means -

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

          (B) the Federal Home Loan Mortgage Corporation and any
        affiliate thereof.

      (7) Executive officer. - The term 'executive officer' means,
    with respect to an enterprise, the chairman of the board of
    directors, chief executive officer, chief financial officer,
    president, vice chairman, any executive vice president, and any
    senior vice president in charge of a principal business unit,
    division, or function.

      (8) Low-income  . - The term 'low-income' means -

          (A) in the case of owner-occupied units, income not in
        excess of 80 percent of area median income; and

          (B) in the case of rental units, income not in excess of
        80 percent of area median income, with adjustments for
        smaller and larger families, as determined by the
        Secretary.

      (9) Median income  . - The term 'median income' means, with
respect to an area, the unadjusted median family income for the
area, as determined and published annually by the Secretary.

      (10) Moderate-income  . - The term 'moderate-income' means -

          (A) in the case of owner-occupied units, income not in
        excess of area median income; and

          (B) in the case of rental units, income not in excess of
        area median income, with adjustments for smaller and larger
        families, as determined by the Secretary.

      (11) Mortgage purchases  . - The term 'mortgage purchases'
includes mortgages purchased for portfolio or securitization.

      (12) Multifamily housing  . - The term 'multifamily housing'
means a residence consisting of more than 4 dwelling units.

      (13) New program  . - The term 'new program' means any
program for the purchasing, servicing, selling, lending on the
security of, or otherwise dealing in, conventional mortgages that -

          (A) is significantly different from programs that have
        been approved under this Act or that were approved or
        engaged in by an enterprise before the date of the
        enactment of this Act; or

          (B) represents an expansion, in terms of the dollar
        volume or number of mortgages or securities involved, of
        programs above limits expressly contained in any prior
        approval.

      (14) Office. - The term 'Office' means the Office of Federal
    Housing Enterprise Oversight of the Department of Housing and
    Urban Development.

      (15) Secretary. - The term 'Secretary' means the Secretary of
    Housing and Urban Development.

      (16) Single family housing  . - The term 'single family
housing' means a residence consisting of 1 to 4 dwelling units.

      (17) State. - The term 'State' means the States of the United
    States, the District of Columbia, the Commonwealth of Puerto
    Rico, the Commonwealth of the Northern Mariana Islands, Guam,
    the Virgin Islands, American Samoa, the Trust Territory of the
    Pacific Islands, and any other territory or possession of the
    United States.

      (18) Total capital. - The term 'total capital' means, with
    respect to an enterprise, the sum of the following:

          (A) The core capital of the enterprise;

          (B) A general allowance for foreclosure losses, which -

              (i) shall include an allowance for portfolio mortgage
            losses, an allowance for nonreimbursable foreclosure
            costs on government claims, and an allowance for
            liabilities reflected on the balance sheet for the
            enterprise for estimated foreclosure losses on
            mortgage-backed securities; and

              (ii) shall not include any reserves of the enterprise
            made or held against specific assets.

          (C) Any other amounts from sources of funds available to
        absorb losses incurred by the enterprise, that the Director
        by regulation determines are appropriate to include in
        determining total capital.

      (19) Very low-income  . - The term 'very low-income' means -

          (A) in the case of owner-occupied units, income not in
        excess of 60 percent of area median income; and

          (B) in the case of rental units, income not in excess of
        60 percent of area median income, with adjustments for
        smaller and larger families, as determined by the
        Secretary.

SEC. 1304. PROTECTION OF TAXPAYERS AGAINST LIABILITY.

  This title and the amendments made by this title may not be
construed as obligating the Federal Government, either directly or
indirectly, to provide any funds to the Federal Home Loan Mortgage
Corporation, the Federal National Mortgage Association, or the
Federal Home Loan Banks, or to honor, reimburse, or otherwise
guarantee any obligation or liability of the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, or
the Federal Home Loan Banks. This title and the amendments made by
this title may not be construed as implying that any such
enterprise or Bank, or any obligations or securities of such an
enterprise or Bank, are backed by the full faith and credit of the
United States.

       SUBTITLE A - SUPERVISION AND REGULATION OF ENTERPRISES

         PART 1 - FINANCIAL SAFETY AND SOUNDNESS REGULATOR

SEC. 1311. ESTABLISHMENT OF OFFICE OF FEDERAL HOUSING ENTERPRISE
            OVERSIGHT.

  There is hereby established an office within the Department of
Housing and Urban Development, which shall be known as the Office
of Federal Housing Enterprise Oversight.

SEC. 1312. DIRECTOR.

  (a) Appointment. - The Office shall be under the management of a
Director, who 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 mortgage security markets and housing finance.  An
individual may not be appointed as Director if the individual has
served as an executive officer or director of an enterprise at any
time during the 3-year period ending upon the nomination of such
individual for appointment as Director.

  (b) Term. - The Director shall be appointed for a term of 5
years.

  (c) Vacancy. - A vacancy in the position of Director shall be
filled in the manner in which the original appointment was made
under subsection (a).

  (d) Service After End of Term. - A Director may serve after the
expiration of the term for which the Director was appointed until a
successor Director has been appointed.

  (e) Deputy Director. -

      (1) In general  . - The Office shall have a Deputy Director
who shall be appointed by the Director 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 mortgage security markets and housing
finance.  An individual may not be appointed as Deputy Director if
the individual has served as an executive officer or director of an
enterprise at any time during the 3-year period ending upon the
appointment of such individual as Deputy Director.

      (2) Functions. - The Deputy Director shall have such
    functions, powers, and duties as the Director shall prescribe.
    In the event of the death, resignation, sickness, or absence of
    the Director, the Deputy Director shall serve as acting
    Director until the return of the Director or the appointment of
    a successor pursuant to subsection (c).

SEC. 1313. DUTY AND AUTHORITY OF DIRECTOR.

  (a) Duty  . - The duty of the Director shall be to ensure that
the enterprises are adequately capitalized and operating safely, in
accordance with this title.

  (b) Authority Exclusive of Secretary. - The Director is
authorized, without the review or approval of the Secretary, to
make such determinations, take such actions, and perform such
functions as the Director determines necessary regarding -

      (1) the issuance of regulations to carry out this part,
    subtitle B, and subtitle C (including the establishment of
    capital standards pursuant to subtitle B);

      (2) examinations of the enterprises under section 1317;

      (3) determining the capital levels of the enterprises and
    classification of the enterprises within capital
    classifications established under subtitle B;

      (4) decisions to appoint conservators for the enterprises;

      (5) administrative and enforcement actions under subtitle B,
    actions taken under subtitle C with respect to enforcement of
    subtitle B, and other matters relating to safety and soundness;

      (6) approval of payments of capital distributions by the
    enterprises under section 303(c)(2) of the Federal National
    Mortgage Association Charter Act and section 303(b)(2) of the
    Federal Home Loan Mortgage Corporation Act;

      (7) requiring the enterprises to submit reports under section
    1314 of this title, section 309(k) of the Federal National
    Mortgage Association Charter Act, and section 307(c) of the
    Federal Home Loan Mortgage Corporation Act;

      (8) prohibiting the payment of excessive compensation by the
    enterprises to any executive officer of the enterprises under
    section 1318;

      (9) the management of the Office, including the establishment
    and implementation of annual budgets, the hiring of, and
    compensation levels for, personnel of the Office, and annual
    assessments for the costs of the Office;

      (10) conducting research and financial analysis; and

      (11) the submission of reports required by the Director under
    this title.

  (c) Authority Subject to Approval of Secretary. - Any
determinations, actions, and functions of the Director not referred
to in subsection (b) shall be subject to the review and approval of
the Secretary.

  (d) Delegation of Authority. - The Director may delegate to
officers and employees of the Office any of the functions, powers,
and duties of the Director, as the Director considers appropriate.

  (e) Independence in Providing Information to Congress  . - The
Director shall not be required to obtain the prior approval,
comment, or review of any officer or agency of the United States
before submitting to the Congress, or any committee or subcommittee
thereof, any reports, recommendations, testimony, or comments if
such submissions include a statement indicating that the views
expressed therein are those of the Director and do not necessarily
represent the views of the Secretary or the President.

SEC. 1314. AUTHORITY TO REQUIRE REPORTS BY ENTERPRISES.

  (a) Special Reports and Reports of Financial Condition  . -

      (1) Financial condition  . - The Director may require an
enterprise to submit reports of financial condition and operations
(in addition to the annual and quarterly reports required under
section 309(k) of the Federal National Mortgage Association Charter
Act and section 307(c) of the Federal Home Loan Mortgage
Corporation Act).

      (2) Special reports  . - The Director may also require an
enterprise to submit special reports whenever, in the judgment of
the Director, such reports are necessary to carry out the purposes
of this title.

      (3) Limitation  . - The Director may not require the
inclusion, in any report pursuant to paragraph (1) or (2), of any
information that is not reasonably obtainable by the enterprise.

      (4) Notice and declaration  . - The Director shall notify the
enterprise, a reasonable period in advance of the date for
submission of any report under this subsection, of any specific
information to be contained in the report and the date for the
submission of the report.  Each report under this subsection shall
contain a declaration by the president, vice president, treasurer,
or any other officer designated by the board of directors of the
enterprise to make such declaration, that the report is true and
correct to the best of such officer's knowledge and belief.

  (b) Capital Distributions  . - The Director may require an
enterprise to submit a report to the Director after the declaration
of any capital distribution by the enterprise and before making the
capital distribution.  The report shall be made in such form and
under such circumstances and shall contain such information as the
Director shall require.

SEC. 1315. PERSONNEL.

  (a) Office Personnel  . - The Director may appoint and fix the
compensation of such officers and employees of the Office as the
Director considers necessary to carry out the functions of the
Director and the Office. Officers and employees may be paid without
regard to the provisions of chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, relating to
classification and General Schedule pay rates.

  (b) Comparability of Compensation With Federal Banking Agencies
. - In fixing and directing compensation under subsection (a), the
Director shall consult with, and maintain comparability with
compensation of officers and employees of the Office of the
Comptroller of the Currency, the Board of Governors of the Federal
Reserve System, the Federal Deposit Insurance Corporation, and the
Office of Thrift Supervision.

  (c) Personnel of Other Federal Agencies  . - In carrying out the
duties of the Office, the Director may use information, services,
staff, and facilities of any executive agency, independent agency,
or department on a reimbursable basis, with the consent of such
agency or department.

  (d) Reimbursement of HUD  . - The Director shall reimburse the
Department of Housing and Urban Development for reasonable costs
incurred by the Department that are directly related to the
operations of the Office.

  (e) Outside Experts and Consultants  . - Notwithstanding any
provision of law limiting pay or compensation, the Director may
appoint and compensate such outside experts and consultants as the
Director determines necessary to assist the work of the Office.

  (f) Equal Opportunity Report  . - Not later than the expiration
of the 180-day period beginning upon the appointment of the
Director under section 1312, the Director shall submit to the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate a report containing -

      (1) a complete description of the equal opportunity,
    affirmative action, and minority business enterprise
    utilization programs of the Office; and

      (2) such recommendations for administrative and legislative
    action as the Director determines appropriate to carry out such
    programs.

SEC. 1316. FUNDING.

  (a) Annual Assessments. - The Director may, to the extent
provided in appropriation Acts, establish and collect from the
enterprises annual assessments in an amount not exceeding the
amount sufficient to provide for reasonable costs and expenses of
the Office, including the expenses of any examinations under
section 1317. The initial annual assessment shall include any
startup costs of the Office and any anticipated costs and expenses
of the Office for the following fiscal year.

  (b) Allocation of Annual Assessment to Enterprises  . -

      (1) Amount of payment  . - Each enterprise shall pay to the
Director a proportion of the annual assessment made pursuant to
subsection (a) that bears the same ratio to the total annual
assessment that the total assets of each enterprise bears to the
total assets of both enterprises.

      (2) Timing of payment  . - The annual assessment shall be
payable semiannually on September 1 and March 1 of the year for
which the assessment is made.

      (3) Definition  . - For the purpose of this section, the term
'total assets' means, with respect to an enterprise, the sum of -

          (A) on-balance-sheet assets of the enterprise, as
        determined in accordance with generally accepted accounting
        principles;

          (B) the unpaid principal balance of outstanding
        mortgage-backed securities issued or guaranteed by the
        enterprise that are not included in subparagraph (A); and

          (C) other off-balance-sheet obligations as determined by
        the Director.

  (c) Deficiencies Due to Increased Costs of Regulation  . - The
semiannual payments made pursuant to subsection (b) by any
enterprise 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 enterprise.

  (d) Surplus  . - If any amount from any annual assessment
collected from an enterprise remains unobligated at the end of the
year for which the assessment was collected, such amount shall be
credited to the assessment to be collected from the enterprise for
the following year.

  (e) Initial Special Assessment  . - Not later than the expiration
of the 30-day period beginning on the date of the enactment of this
Act, the enterprises shall each pay into the Federal Housing
Enterprises Oversight Fund established under subsection (f) an
initial assessment of $1,500,000 to cover the startup costs of the
Office, including space and modifications thereof, capital
equipment, supplies, recruitment, and activities of the Office
during the period preceding the first annual assessment under
subsection (a). Any amounts collected from an enterprise under this
subsection shall be credited against the first annual assessment
collected pursuant to subsection (a), and are hereby appropriated,
and shall be available and used, without fiscal year limitation, as
provided in this section.

  (f) Fund. - There is established in the Treasury of the United
States a fund to be known as the Federal Housing Enterprises
Oversight Fund. Any assessments collected pursuant to this section
shall be deposited in the Fund. Amounts in the Fund shall be
available, to the extent provided in appropriation Acts and
subsection (e), for -

      (1) carrying out the responsibilities of the Director
    relating to the enterprises; and

      (2) necessary administrative and nonadministrative expenses
    of the Office to carry out the purposes of this title.

  (g) Budget and Financial Reports  . -

      (1) Financial operating plans and forecasts  . - Before the
beginning of each fiscal year, the Director shall submit a copy of
the financial operating plans and forecasts for the Office to the
Secretary and the Director of the Office of Management and Budget.

      (2) Reports of operations  . - As soon as practicable after
the end of each fiscal year and each quarter thereof, the Director
shall submit a copy of the report of the results of the operations
of the Office during such period to the Secretary and the Director
of the Office of Management and Budget.

      (3) Inclusion in president's budget  . - The annual plans,
forecasts, and reports required under this subsection shall be
included (A) in the Budget of the United States in the appropriate
form, and (B) in the congressional justifications of the Department
of Housing and Urban Development for each fiscal year in a form
determined by the Secretary.

SEC. 1317. EXAMINATIONS.

  (a) Annual Examination. - The Director shall annually conduct an
on-site examination under this section of each enterprise to
determine the condition of the enterprise for the purpose of
ensuring its financial safety and soundness.

  (b) Other Examinations. - In addition to annual examinations
under subsection (a), the Director may conduct an examination under
this section whenever the Director determines that an examination
is necessary to determine the condition of an enterprise for the
purpose of ensuring its financial safety and soundness.

  (c) Examiners. - The Director shall appoint examiners to conduct
examinations under this section.  The Director may contract with
the Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance Corporation,
or the Director of the Office of Thrift Supervision for the
services of examiners.  The Director shall reimburse such agencies
for any costs of providing examiners from amounts available in the
Federal Housing Enterprises Oversight Fund.

  (d) Law Applicable to Examiners. - The Director and each examiner
shall have the same authority and each examiner shall be subject to
the same disclosures, prohibitions, obligations, and penalties as
are applicable to examiners employed by the Federal Reserve banks.

  (e) Technical Experts. - The Director may obtain the services of
any technical experts the Director considers appropriate to provide
temporary technical assistance relating to examinations to the
Director, officers, and employees of the Office. The Director shall
describe, in the record of each examination, the nature and extent
of any such temporary technical assistance.

  (f) Oaths, Evidence, and Subpoena Powers. - In connection with
examinations under this section, the Director shall have the
authority provided under section 1379B.

SEC. 1318. PROHIBITION OF EXCESSIVE COMPENSATION.

  (a) In General  . - The Director shall prohibit the enterprises
from providing compensation to any executive officer of the
enterprise that is not reasonable and comparable with compensation
for employment in other similar businesses (including other
publicly held financial institutions or major financial services
companies) involving similar duties and responsibilities.

  (b) Prohibition of Setting Compensation  . - In carrying out
subsection (a), the Director may not prescribe or set a specific
level or range of compensation.

SEC. 1319. AUTHORITY TO PROVIDE FOR REVIEW OF ENTERPRISES BY RATING
                ORGANIZATION.

  The Director may, on such terms and conditions as the Director
deems appropriate, contract with any entity effectively recognized
by the Division of Market Regulation of the Securities and Exchange
Commission as a nationally recognized statistical rating
organization for the purposes of the capital rules for
broker-dealers, to conduct a review of the enterprises.

SEC. 1319A. EQUAL OPPORTUNITY IN SOLICITATION OF CONTRACTS.

  (a) In General  . - Each enterprise shall establish a minority
outreach program to ensure the inclusion (to the maximum extent
possible) in contracts entered into by the enterprises of
minorities and women and businesses owned by minorities and women,
including financial institutions, investment banking firms,
underwriters, accountants, brokers, and providers of legal
services.

  (b) Report  . - Not later than the expiration of the 180-day
period beginning on the date of the enactment of this Act, each
enterprise shall submit to the Committee on Banking, Finance and
Urban Affairs of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate a report
describing the actions taken by the enterprise pursuant to
subsection (a).

SEC. 1319B. ANNUAL REPORTS BY DIRECTOR.

  (a) General Report  . - The Director shall submit to the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, not later than June 15 of each year, a
written report, which shall include -

      (1) a description of the actions taken, and being undertaken,
    by the Director to carry out this title;

      (2) a description of the financial safety and soundness of
    each enterprise, including the results and conclusions of the
    annual examinations of the enterprises conducted under section
    1317(a); and

      (3) any recommendations for legislation to enhance the
    financial safety and soundness of the enterprises.

  (b) Report on Enforcement Actions  . - Not later than March 15 of
each year, the Director shall submit to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate a
written report describing, for the preceding calendar year, the
requests by the Director to the Attorney General for enforcement
actions under subtitle C and describing the disposition of each
request, which shall include statements of -

      (1) the total number of requests made by the Director;

      (2) the number of requests that resulted in the commencement
    of litigation by the Department of Justice;

      (3) the number of requests that did not result in the
    commencement of litigation by the Department of Justice;

      (4) with respect to requests that resulted in the
    commence-ment of litigation -

          (A) the number of days between the date of the request
        and the commencement of the litigation; and

          (B) the number of days between the date of the
        commencement and termination of the litigation; and

      (5) the number of litigation requests pending at the
    beginning of the calendar year, the number of requests made
    during the calendar year, the number of requests for which
    action was completed during the calendar year, and the number
    of requests pending at the end of the calendar year.

SEC. 1319C. PUBLIC DISCLOSURE OF FINAL ORDERS AND AGREEMENTS.

  (a) In General. - The Director shall make available to the public
-

      (1) any written agreement or other written statement for
    which a violation may be redressed by the Director or any
    modification to or termination thereof, unless the Director, in
    the Director's discretion, determines that public disclosure
    would be contrary to the public interest or determines under
    subsection (c) that public disclosure would seriously threaten
    the financial health or security of the enterprise;

      (2) any order that is issued with respect to any
    administrative enforcement proceeding initiated by the Director
    under subtitle C and that has become final; and

      (3) any modification to or termination of any final order
    made public pursuant to this subsection.

  (b) Hearings. - All hearings on the record with respect to any
action of the Director or notice of charges issued by the Director
shall be open to the public, unless the Director, in the Director's
discretion, determines that holding an open hearing would be
contrary to the public interest.

  (c) Delay of Public Disclosure Under Exceptional Circumstances. -
If the Director makes a determination in writing that the public
disclosure of any final order pursuant to subsection (a) would
seriously threaten the financial health or security of the
enterprise, the Director may delay the public disclosure of such
order for a reasonable time.

  (d) Documents Filed Under Seal in Public Enforcement Hearings. -
The Director may file any document or part thereof under seal in
any hearing under subtitle C if the Director determines in writing
that disclosure thereof would be contrary to the public interest.

  (e) Retention of Documents. - The Director shall keep and
maintain a record, for not less than 6 years, of all documents
described in subsection (a) and all enforcement agreements and
other supervisory actions and supporting documents issued with
respect to or in connection with any enforcement proceeding
initiated by the Director under subtitle C.

  (f) Disclosures to Congress. - This section may not be construed
to authorize the withholding of any information from, or to
prohibit the disclosure of any information to, the Congress or any
committee or subcommittee thereof.

SEC. 1319D. LIMITATION ON SUBSEQUENT EMPLOYMENT.

  Neither the Director nor any former officer or employee of the
Office who, while employed by the Office, was compensated at a rate
in excess of the lowest rate for a position classified higher than
GS-15 of the General Schedule under section 5107 of title 5, United
States Code, may accept compensation from an enterprise during the
2-year period beginning on the date of separation from employment
by the Office.

SEC. 1319E. AUDITS BY GAO.

  The Comptroller General shall audit the operations of the Office
in accordance with generally accepted Government auditing
standards.  All books, records, accounts, reports, files, and
property belonging to, or used by, the Office shall be made
available to the Comptroller General. Audits under this section
shall be conducted annually for the first 2 fiscal years following
the date of the enactment of this Act and as appropriate
thereafter.

SEC. 1319F. INFORMATION, RECORDS, AND MEETINGS.

  For purposes of subchapter II of chapter 5 of title 5, United
States Code -

      (1) the Office, and

      (2) the Department of Housing and Urban Development, with
    respect to activities under this title,

shall be considered agencies responsible for the regulation or
supervision of financial institutions.

SEC. 1319G. REGULATIONS AND ORDERS.

  (a) Authority  . - The Director shall issue any regulations and
orders necessary to carry out the duties of the Director and to
carry out this title before the expiration of the 18-month period
beginning on the appointment of the Director under section 1312.
Such regulations and orders shall be subject to the approval of the
Secretary only to the extent provided in subsections (b) and (c) of
section 1313.

  (b) Notice and Comment  . - Any regulations issued by the
Director under this section shall be issued after notice and
opportunity for public comment pursuant to the provisions of
section 553 of title 5, United States Code.

  (c) Congressional Review  . - The Director may not publish any
regulation for comment under subsection (b) unless, not less than
15 days before it is published for comment, the Director has
submitted a copy of the regulation, in the form it is intended to
be proposed, to the Committee on Banking, Finance and Urban Affairs
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate.

                  PART 2 - AUTHORITY OF SECRETARY

                   SUBPART A - GENERAL AUTHORITY

SEC. 1321. REGULATORY AUTHORITY.

  Except for the authority of the Director of the Office of Federal
Housing Enterprise Oversight described in section 1313(b) and all
other matters relating to the safety and soundness of the
enterprises, the Secretary of Housing and Urban Development shall
have general regulatory power over each enterprise and shall make
such rules and regulations as shall be necessary and proper to
ensure that this part and the purposes of the Federal National
Mortgage Association Charter Act and the Federal Home Loan Mortgage
Corporation Act are accomplished.

SEC. 1322. PRIOR APPROVAL AUTHORITY FOR NEW PROGRAMS.

  (a) Authority  . - The Secretary shall require each enterprise to
obtain the approval of the Secretary for any new program of the
enterprise before implementing the program.

  (b) Standard for Approval  . -

      (1) Permanent standard  . - Except as provided in paragraph
(2), the Secretary shall approve any new program of an enterprise
for purposes of subsection (a) unless -

          (A) for a new program of the Federal National Mortgage
        Association, the Secretary determines that the program is
        not authorized under paragraph (2), (3), (4), or (5) of
        section 302(b) of the Federal National Mortgage Association
        Charter Act, or under section 304 of such Act;

          (B) for a new program of the Federal Home Loan Mortgage
        Corporation, the Secretary determines that the program is
        not authorized under section 305(a) (1), (4), or (5) of the
        Federal Home Loan Mortgage Corporation Act; or

          (C) the Secretary determines that the new program is not
        in the public interest.

      (2) Transition standard  . - Before the date occurring 12
months after the date of the effectiveness of the regulations under
section 1361(e) establishing the risk-based capital test, the
Secretary shall approve any new program of an enterprise for
purposes of subsection (a) unless -

          (A) The Secretary makes a determination as described in
        paragraph (1) (A), (B), or (C); or

          (B) the Director determines that the new program would
        risk significant deterioration of the financial condition
        of the enterprise.

  (c) Procedure for Approval  . -

      (1) Submission of request  . - To obtain the approval of the
Secretary for purposes of subsection (a), an enterprise shall
submit to the Secretary a written request for approval of the new
program that describes the program.

      (2) Response  . - The Secretary shall, not later than the
expiration of the 45-day period beginning upon the submission of a
request for approval, approve the request or submit to the
Committee on Banking, Finance and Urban Affairs of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate a report explaining the reasons for not
approving the request.  The Secretary may extend such period for a
single additional 15-day period only if the Secretary requests
additional information from the enterprise.

      (3) Failure to respond  . - If the Secretary fails to approve
the request or fails to submit a report under paragraph (2) during
the period under such paragraph, the request shall be considered to
have been approved.

      (4) Review of disapproval  . -

          (A) Unauthorized new programs  . - If the Secretary
submits a report under paragraph (2) of this subsection
disapproving a request for approval on the grounds under
subparagraph (A) or (B) of subsection (b)(1), the Secretary shall
provide the enterprise submitting the request with a timely
opportunity to review and supplement the administrative record.

          (B) New programs not in public interest  . - If the
Secretary submits a report under paragraph (2) of this subsection
disapproving a request for approval on the grounds under subsection
(b)(1)(C) or (b)(2)(B), the Secretary shall provide the enterprise
submitting the request notice of, and opportunity for, a hearing on
the record regarding such disapproval.

SEC. 1323. PUBLIC ACCESS TO MORTGAGE INFORMATION.

  (a) In General  . - The Secretary shall make available to the
public, in forms useful to the public (including forms accessible
by computers), the data submitted by the enterprises in the reports
required under section 309(m) of the Federal National Mortgage
Association Charter Act or section 307(e) of the Federal Home Loan
Mortgage Corporation Act.

  (b) Access  . -

      (1) Proprietary data  . - Except as provided in paragraph
(2), the Secretary may not make available to the public data that
the Secretary determines pursuant to section 1326 are proprietary
information.

      (2) Exception  . - The Secretary shall not restrict access to
the data provided in accordance with section 309(m)(1)(A) of the
Federal National Mortgage Association Charter Act or section
307(e)(1)(A) of the Federal Home Loan Mortgage Corporation Act.

  (c) Fees  . - The Secretary may charge reasonable fees to cover
the cost of making data available under this section to the public.

SEC. 1324. ANNUAL HOUSING REPORT.

  (a) In General. - After reviewing and analyzing the reports
submitted under section 309(n) of the Federal National Mortgage
Association Charter Act and section 307(f) of the Federal Home Loan
Mortgage Corporation Act, the Secretary shall submit a report, as
part of the annual report under section 1328(a) of this title, on
the extent to which each enterprise is achieving the annual housing
goals established under subpart B of this part and the purposes of
the enterprise established by law.

  (b) Contents. - The report shall -

      (1) aggregate and analyze census tract data to assess the
    compliance of each enterprise with the central cities, rural
    areas, and other underserved areas housing goal and to
    determine levels of business in central cities, rural areas,
    underserved areas, low- and moderate-income census tracts,
    minority census tracts, and other geographical areas deemed
    appropriate by the Secretary;

      (2) aggregate and analyze data on income to assess the
    compliance of each enterprise with the low- and moderate-income
    and special affordable housing goals;

      (3) aggregate and analyze data on income, race, and gender by
    census tract and compare such data with larger demographic,
    housing, and economic trends;

      (4) examine actions that each enterprise has undertaken or
    could undertake to promote and expand the annual goals
    established under sections 1332, 1333, and 1334, and the
    purposes of the enterprise established by law;

      (5) examine the primary and secondary multifamily housing
    mortgage markets and describe -

          (A) the availability and liquidity of mortgage credit;

          (B) the status of efforts to provide standard credit
        terms and underwriting guidelines for multifamily housing
        and to securitize such mortgage products; and

          (C) any factors inhibiting such standardization and
        securitization;

      (6) examine actions each enterprise has undertaken and could
    undertake to promote and expand opportunities for first-time
    homebuyers; and

      (7) describe any actions taken under section 1325(5) with
    respect to originators found to violate fair lending
    procedures.

SEC. 1325. FAIR HOUSING.

  The Secretary shall -

      (1) by regulation, prohibit each enterprise from
    discriminating in any manner in the purchase of any mortgage
    because of race, color, religion, sex, handicap, familial
    status, age, or national origin, including any consideration of
    the age or location of the dwelling or the age of the
    neighborhood or census tract where the dwelling is located in a
    manner that has a discriminatory effect;

      (2) by regulation, require each enterprise to submit data to
    the Secretary to assist the Secretary in investigating whether
    a mortgage lender with which the enterprise does business has
    failed to comply with the Fair Housing Act;

      (3) by regulation, require each enterprise to submit data to
    the Secretary to assist in investigating whether a mortgage
    lender with which the enterprise does business has failed to
    comply with the Equal Credit Opportunity Act, and shall submit
    any such information received to the appropriate Federal
    agencies, as provided in section 704 of the Equal Credit
    Opportunity Act, for appropriate action;

      (4) obtain information from other regulatory and enforcement
    agencies of the Federal Government and State and local
    governments regarding violations by lenders of the Fair Housing
    Act and the Equal Credit Opportunity Act and make such
    information available to the enterprises;

      (5) direct the enterprises to undertake various remedial
    actions, including suspension, probation, reprimand, or
    settlement, against lenders that have been found to have
    engaged in discriminatory lending practices in violation of the
    Fair Housing Act or the Equal Credit Opportunity Act, pursuant
    to a final adjudication on the record, and after opportunity
    for an administrative hearing, in accordance with subchapter II
    of chapter 5 of title 5, United States Code; and

      (6) periodically review and comment on the underwriting and
    appraisal guidelines of each enterprise to ensure that such

    guidelines are consistent with the Fair Housing Act and this
    section.

SEC. 1326. PROHIBITION OF PUBLIC DISCLOSURE OF PROPRIETARY
            INFORMATION.

  (a) In General  . - The Secretary may, by regulation or order,
provide that certain information shall be treated as proprietary
information and not subject to disclosure under section 1323 of
this title, section 309(n)(3) of the Federal National Mortgage
Association Charter Act, or section 307(f)(3) of the Federal Home
Loan Mortgage Corporation Act.

  (b) Protection of Information on Housing Activities  . - The
Secretary shall not provide public access to, or disclose to the
public, any information required to be submitted by an enterprise
under section 309(n) of the Federal National Mortgage Association
Charter Act or section 307(f) of the Federal Home Loan Mortgage
Corporation Act that the Secretary determines is proprietary.

  (c) Nondisclosure Pending Consideration  . - This section may not
be construed to authorize the disclosure of information to, or
examination of data by, the public or a representative of any
person or agency pending the issuance of a final decision under
this section.

SEC. 1327. AUTHORITY TO REQUIRE REPORTS BY ENTERPRISES.

  The Secretary shall require each enterprise to submit reports on
its activities to the Secretary as the Secretary considers
appropriate.

SEC. 1328. REPORTS BY SECRETARY.

  (a) Annual Report  . - The Secretary shall, not later than June
30 of each year, submit a report to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate on
the activities of each enterprise.

  (b) Views on Budget and Financial Plans of Enterprises  . - On an
annual basis, the Secretary shall provide the Committees referred
to in subsection (a) with comments on the plans, forecasts, and
reports required under section 1316(g).

                     SUBPART B - HOUSING GOALS

SEC. 1331. ESTABLISHMENT.

  (a) In General  . - The Secretary shall establish, by regulation,
housing goals under this subpart for each enterprise.  The housing
goals shall include a low- and moderate-income housing goal
pursuant to section 1332, a special affordable housing goal
pursuant to section 1333, and a central cities, rural areas, and
other underserved areas housing goal pursuant to section 1334. The
Secretary shall implement this subpart in a manner consistent with
section 301(3) of the Federal National Mortgage Association Charter
Act and section 301(b)(3) of the Federal Home Loan Mortgage
Corporation Act.

  (b) Consideration of Units in Multifamily Housing  . - In
establishing any goal under this subpart, the Secretary may take
into consideration the number of housing units financed by any
mortgage on multifamily housing purchased by an enterprise.

  (c) Adjustment of Housing Goals  . - Except as otherwise provided
in this title, from year to year the Secretary may, by regulation,
adjust any housing goal established under this subpart.

SEC. 1332. LOW- AND MODERATE-INCOME HOUSING GOAL.

  (a) In General  . - The Secretary shall establish an annual goal
for the purchase by each enterprise of mortgages on housing for
low- and moderate-income families.  The Secretary may establish
separate specific subgoals within the goal under this section and
such subgoals shall not be enforceable under the provisions of
section 1336, any other provision of this title, or any provision
of the Federal National Mortgage Association Charter Act or the
Federal Home Loan Mortgage Corporation Act.

  (b) Factors To Be Applied  . - In establishing the goal under
this section, the Secretary shall consider -

      (1) national housing needs;

      (2) economic, housing, and demographic conditions;

      (3) the performance and effort of the enterprises toward
    achieving the low- and moderate-income housing goal in previous
    years;

      (4) the size of the conventional mortgage market serving low-
    and moderate-income families relative to the size of the
    overall conventional mortgage market;

      (5) the ability of the enterprises to lead the industry in
    making mortgage credit available for low- and moderate-income
    families; and

      (6) the need to maintain the sound financial condition of the
    enterprises.

  (c) Use of Borrower and Tenant Income. -

      (1) In general  . - The Secretary shall monitor the
performance of each enterprise in carrying out this section and
shall evaluate such performance (for purposes of section 1336)
based on -

          (A) in the case of an owner-occupied dwelling, the
        mortgagor's income at the time of origination of the
        mortgage; or

          (B) in the case of a rental dwelling -

              (i) the income of the prospective or actual tenants
            of the property, where such data are available; or

              (ii) the rent levels affordable to low- and
            moderate-income families, where the data referred to in
            clause (i) are not available.

      (2) Affordability. - For the purpose of paragraph (1)(B)(ii),
    a rent level shall be considered affordable if it does not
    exceed 30 percent of the maximum income level of the income
    categories referred to in this section, with appropriate
    adjustments for unit size as measured by the number of
    bedrooms.

  (d) Transition. -

      (1) Interim target  . - Notwithstanding any other provision
of this section, during the 2-year period beginning on January 1,
1993, the annual target under this section for low- and
moderate-income mortgage purchases for each enterprise shall be 30
percent of the total number of dwelling units financed by mortgage
purchases of the enterprise.

      (2) Interim goal. - During such 2-year period, the Secretary
    shall establish a separate annual goal for each enterprise, the
    achievement of which shall require -

          (A) an enterprise that is not meeting the target under
        paragraph (1) upon January 1, 1993, to improve its
        performance relative to such target annually and, to the
        maximum extent feasible, to meet such target at the
        conclusion of such 2-year period; and

          (B) an enterprise that is meeting the target under
        paragraph (1) upon January 1, 1993, to improve its
        performance relative to the target.

      (3) Implementation  . - The Secretary shall establish any
requirements necessary to implement the transition provisions under
this subsection by notice, after providing the enterprises with an
opportunity to review and comment not less than 30 days before the
issuance of such notice.  Such notice shall be issued not later
than the expiration of the 90-day period beginning upon the date of
the enactment of this Act and shall be effective upon issuance.

SEC. 1333. SPECIAL AFFORDABLE HOUSING GOAL.

  (a) Establishment. -

      (1) In general  . - The Secretary shall establish a special
annual goal designed to adjust the purchase by each enterprise of
mortgages on rental and owner-occupied housing to meet the
then-existing unaddressed needs of, and affordable to, low-income
families in low-income areas and very low-income families.  The
special affordable housing goal established under this section for
an enterprise shall not be less than 1 percent of the dollar amount
of the mortgage purchases by the enterprise for the previous year.

      (2) Standards  . - In establishing the special affordable
housing goal for an enterprise, the Secretary shall consider -

          (A) data submitted to the Secretary in connection with
        the special affordable housing goal for previous years;

          (B) the performance and efforts of the enterprise toward
        achieving the special affordable housing goal in previous
        years;

          (C) national housing needs within the categories set
        forth in this section;

          (D) the ability of the enterprise to lead the industry in
        making mortgage credit available for low-income and very
        low-income families; and

          (E) the need to maintain the sound financial condition of
        the enterprise.

  (b) Full Credit Activities  . -

      (1) In general  . - The Secretary shall give full credit
toward achievement of the special affordable housing goal under
this section (for purposes of section 1336) to the following
activities:

          (A) Federally related mortgages  . - The purchase or
securitization of federally insured or guaranteed mortgages, if -

              (i) such mortgages cannot be readily securitized
            through the Government National Mortgage Association or
            any other Federal agency;

              (ii) participation of the enterprise substantially
            enhances the affordability of the housing subject to
            such mortgages; and

              (iii) the mortgages involved are on housing that
            otherwise qualifies under such goal to be considered
            for purposes of such goal.

          (B) Portfolios  . - The purchase or refinancing of
existing, seasoned portfolios of loans, if -

              (i) the seller is engaged in a specific program to
            use the proceeds of such sales to originate additional
            loans that meet such goal; and

              (ii) such purchases or refinancings support
            additional lending for housing that otherwise qualifies
            under such goal to be considered for purposes of such
            goal.

          (C) RTC and fdic loans  . - The purchase of direct loans
made by the Resolution Trust Corporation or the Federal Deposit
Insurance Corporation, if such loans -

              (i) are not guaranteed by such agencies themselves or
            other Federal agencies;

              (ii) are made with recourse provisions similar to
            those offered through private mortgage insurance or
            other conventional sellers; and

              (iii) are made for the purchase of housing that
            otherwise qualifies under such goal to be considered
            for purposes of such goal.

      (2) Exclusion  . - No credit toward the achievement of the
special affordable housing goal may be given to the purchase or
securitization of mortgages associated with the refinancing of the
existing enterprise portfolios.

  (c) Use of Borrower and Tenant Income  . -

      (1) In general  . - The Secretary shall monitor the
performance of each enterprise in carrying out this section and
shall evaluate such performance (for purposes of section 1336)
based on -

          (A) in the case of an owner-occupied dwelling, the
        mortgagor's income at the time of origination of the
        mortgage; or

          (B) in the case of a rental dwelling -

              (i) the income of the prospective or actual tenants
            of the property, where such data are available; or

              (ii) the rent levels affordable to low-income and
            very low-income families, where the data referred to in
            clause (i) are not available.

      (2) Affordability. - For the purpose of paragraph (1)(B)(ii),
    a rent level shall be considered affordable if it does not
    exceed 30 percent of the maximum income level of the income
    categories referred to in this section, with appropriate
    adjustments for unit size as measured by the number of
    bedrooms.

  (d) Transition  . -

      (1) FNMA mortgage purchases  . - Notwithstanding any other
provision of this section, during the 2-year period beginning on
January 1, 1993, the special affordable housing goal for the
Federal National Mortgage Association shall include mortgage
purchases of not less than $2,000,000,000 (for such 2-year period),
with one-half of such purchases consisting of mortgages on single
family housing and one-half consisting of mortgages on multifamily
housing.

      (2) FHLMC mortgage purchases  . - Notwithstanding any other
provision of this section, during the 2-year period beginning on
January 1, 1993, the special affordable housing goal for the
Federal Home Loan Mortgage Corporation shall include mortgage
purchases of not less than $1,500,000,000 (for such 2-year period),
with one-half of such purchases consisting of mortgages on single
family housing and one-half consisting of mortgages on multifamily
housing.

      (3) Income characteristics for mortgage purchases.  -

          (A) Multifamily mortgages. - The special affordable
        housing goals established under paragraphs (1) and (2)
        shall provide that, of mortgages on multifamily housing
        that are purchased and contribute to the achievement of
        such goals -

              (i) 45 percent shall be mortgages on multifamily
            housing affordable to low-income families; and

              (ii) 55 percent shall be mortgages on multifamily
            housing in which -

                  (I) at least 20 percent of the units are
                affordable to families whose incomes do not exceed
                50 percent of the median income for the area; or

                  (II) at least 40 percent of the units are
                affordable to very low-income families.

          (B) Single family mortgages. - The special affordable
        housing goals established under paragraphs (1) and (2)
        shall provide that, of mortgages on single family housing
        that are purchased and contribute to the achievement of
        such goals -

              (i) 45 percent shall be mortgages of low-income
            families who live in census tracts in which the median
            income does not exceed 80 percent of the area median
            income; and

              (ii) 55 percent shall be mortgages of very low-income
            families.

          (C) Compliance with special affordable housing goals  . -
Only the portion of mortgages on multifamily housing purchased by
an enterprise that are attributable to units affordable to
low-income families shall contribute to the achievement of the
special affordable housing goals under subparagraph (A)(ii).

      (4) Implementation  . - The Secretary shall establish any
requirements necessary to implement the transition provisions under
this subsection by notice, after providing the enterprises with an
opportunity to review and comment not less than 30 days before the
issuance of such notice.  Such notice shall be issued not later
than the expiration of the 90-day period beginning upon the date of
the enactment of this Act and shall be effective upon issuance.

SEC. 1334. CENTRAL CITIES, RURAL AREAS, AND OTHER UNDERSERVED AREAS
                HOUSING GOAL.

  (a) In General. - The Secretary shall establish an annual goal
for the purchase by each enterprise of mortgages on housing located
in central cities, rural areas, and other underserved areas.  The
Secretary may establish separate subgoals within the goal under
this section and such subgoals shall not be enforceable under the
provisions of section 1336, any other provision of this title, or
any provision of the Federal National Mortgage Association Charter
Act or the Federal Home Loan Mortgage Corporation Act.

  (b) Factors To Be Applied. - In establishing the housing goal
under this section, the Secretary shall consider -

      (1) urban and rural housing needs and the housing needs of
    underserved areas;

      (2) economic, housing, and demographic conditions;

      (3) the performance and efforts of the enterprises toward
    achieving the central cities, rural areas, and other
    underserved areas housing goal in previous years;

      (4) the size of the conventional mortgage market for central
    cities, rural areas, and other underserved areas relative to
    the size of the overall conventional mortgage market;

      (5) the ability of the enterprises to lead the industry in
    making mortgage credit available throughout the United States,
    including central cities, rural areas, and other underserved
    areas; and

      (6) the need to maintain the sound financial condition of the
    enterprises.

  (c) Location of Properties  . - The Secretary shall monitor the
performance of each enterprise in carrying out this section and
shall evaluate such performance (for purposes of section 1336)
based on the location of the properties subject to mortgages
purchased by each enterprise.

  (d) Transition  . -

      (1) Interim target  . - Notwithstanding any other provision
of this section, during the 2-year period beginning on January 1,
1993, the annual target under this section for purchases by each
enterprise of mortgages on housing located in central cities shall
be 30 percent of the total number of dwelling units financed by
mortgage purchases of the enterprise.

      (2) Interim goal  . - During such 2-year period, the
Secretary shall establish a separate annual goal for each
enterprise, the achievement of which shall require -

          (A) an enterprise that is not meeting the target under
        paragraph (1) upon January 1, 1993, to improve its
        performance relative to such target annually and, to the
        maximum extent feasible, to meet such target at the
        conclusion of such 2-year period; and

          (B) an enterprise that is meeting the target under
        paragraph (1) upon January 1, 1993, to improve its
        performance relative to the target.

      (3) Definition of central city  . - For purposes of this
subsection, the term 'central city' means any political subdivision
designated as a central city by the Office of Management and
Budget.

      (4) Implementation  . - The Secretary shall establish any
requirements necessary to implement the transition provisions under
this subsection by notice, after providing the enterprises with an
opportunity to review and comment not less than 30 days before the
issuance of such notice.  Such notice shall be issued not later
than the expiration of the 90-day period beginning upon the date of
the enactment of this Act and shall be effective upon issuance.

SEC. 1335. OTHER REQUIREMENTS.

  To meet the low- and moderate-income housing goal under section
1332, the special affordable housing goal under section 1333, and
the central cities, rural areas, and other underserved areas
housing goal under section 1334, each enterprise shall -

      (1) design programs and products that facilitate the use of
    assistance provided by the Federal Government and State and
    local governments;

      (2) develop relationships with nonprofit and for-profit
    organizations that develop and finance housing and with State
    and local governments, including housing finance agencies;

      (3) take affirmative steps to -

          (A) assist primary lenders to make housing credit
        available in areas with concentrations of low-income and
        minority families, and

          (B) assist insured depository institutions to meet their
        obligations under the Community Reinvestment Act of 1977,

    which shall include developing appropriate and prudent
    underwriting standards, business practices, repurchase
    requirements, pricing, fees, and procedures; and

      (4) develop the institutional capacity to help finance low-
    and moderate-income housing, including housing for first-time
    homebuyers.

SEC. 1336. MONITORING AND ENFORCING COMPLIANCE WITH HOUSING GOALS.

  (a) In General  . -

      (1) Authority  . - The Secretary shall monitor and enforce
compliance with the housing goals established under sections 1332,
1333, and 1334, as provided in this section.

      (2) Guidelines  . - The Secretary shall establish guidelines
to measure the extent of compliance with the housing goals, which
may assign full credit, partial credit, or no credit toward
achievement of the housing goals to different categories of
mortgage purchase activities of the enterprises, based on such
criteria as the Secretary deems appropriate.

      (3) Extent of compliance  . - In determining compliance with
the housing goals established under this subpart, the Secretary -

          (A) shall consider any single mortgage purchased by an
        enterprise as contributing to the achievement of each
        housing goal for which such mortgage purchase qualifies;
        and

          (B) may take into consideration the number of housing
        units financed by any mortgage on housing purchased by an
        enterprise.

  (b) Notice and Determination of Failure To Meet Goals  . -

      (1) Notice  . - If the Secretary determines that an
enterprise has failed, or that there is a substantial probability
that an enterprise will fail, to meet any housing goal established
under section 1332, 1333, or 1334, the Secretary shall provide
written notice to the enterprise of such a determination, the
reasons for such determination, the requirement to submit a housing
plan under subsection (c) of this section, and the information on
which the Secretary based the determination or imposed such
requirement.

      (2) Response period  . -

          (A) In general  . - During the 30-day period beginning on
the date that an enterprise is provided notice under paragraph (1),
the enterprise may submit to the Secretary any written information
that the enterprise considers appropriate for consideration by the
Secretary in determining whether such failure has occurred or
whether the achievement of such goal was or is feasible.

          (B) Extended period  . - The Secretary may extend the
period under subparagraph (A) for good cause for not more than 30
additional days.

          (C) Shortened period  . - The Secretary may shorten the
period under subparagraph (A) for good cause.

          (D) Failure to respond  . - The failure of an enterprise
to provide information during the 30-day period under this
paragraph (as extended or shortened) shall waive any right of the
enterprise to comment on the proposed determination or action of
the Secretary.

      (3) Consideration of information and determination  . -

          (A) In general  . - After the expiration of the response
period under paragraph (2) or upon receipt of information provided
during such period by the enterprise, whichever occurs earlier, the
Secretary shall determine (i) whether the enterprise has failed, or
there is a substantial probability that the enterprise will fail,
to meet the housing goal, and (ii) whether (taking into
consideration market and economic conditions and the financial
condition of the enterprise) the achievement of the housing goal
was or is feasible.

          (B) Considerations  . - In making such determinations,
the Secretary shall take into consideration any relevant
information submitted by the enterprise during the response period.

          (C) Notice  . - The Secretary shall provide written
notice to the enterprise, the Committee on Banking, Finance and
Urban Affairs of the House of Representatives, and the Committee on
Banking, Housing, and Urban Affairs of the Senate, of -

              (i) each determination that an enterprise has failed,
            or that there is a substantial probability that the
            enterprise will fail, to meet a housing goal;

              (ii) each determination that the achievement of a
            housing goal was or is feasible; and

              (iii) the reasons for each such determination.

        Such notice shall respond to any information submitted
        during the response period.

  (c) Housing Plans  . -

      (1) Requirement  . - If the Secretary finds pursuant to
subsection (b), that an enterprise has failed, or that there is a
substantial probability that an enterprise will fail, to meet any
housing goal established under section 1332, 1333, or 1334, and
that the achievement of the housing goal was or is feasible, the
Secretary shall require the enterprise to submit a housing plan
under this subsection for approval by the Secretary.

      (2) Contents  . - Each housing plan shall be a feasible plan
describing the specific actions the enterprise will take -

          (A) to achieve the goal for the next calendar year; or

          (B) if the Secretary determines that there is a
        substantial probability that the enterprise will fail to
        meet a goal in the current year, to make such improvements
        as are reasonable in the remainder of such year.

    The plan shall be sufficiently specific to enable the Secretary
    to monitor compliance periodically.

      (3) Deadline for submission  . - The Secretary shall, by
regulation, establish a deadline for an enterprise to submit a
housing plan to the Secretary, which may not be more than 45 days
after the enterprise is provided notice under subsection (b)(3)
that a housing plan is required.  The regulations shall provide
that the Secretary may extend the deadline to the extent that the
Secretary determines necessary.  Any extension of the deadline
shall be in writing and for a time certain.

      (4) Approval  . - The Secretary shall review each housing
plan submitted under this subsection and, not later than 30 days
after submission of the plan, approve or disapprove the plan.  The
Secretary may extend the period for approval or disapproval for a
single additional 30-day period if the Secretary determines it
necessary.  The Secretary shall approve any plan that the Secretary
determines is likely to succeed, and conforms with the Federal
National Mortgage Association Charter Act or the Federal Home Loan
Mortgage Corporation Act (as applicable), this title, and any other
applicable laws and regulations.

      (5) Notice of approval and disapproval  . - The Secretary
shall provide written notice to any enterprise submitting a housing
plan of the approval or disapproval of the plan (which shall
include the reasons for any disapproval of the plan) and of any
extension of the period for approval or disapproval.

      (6) Resubmission  . - If the initial housing plan submitted
by an enterprise is disapproved, the enterprise shall submit an
amended plan acceptable to the Secretary within 30 days or such
longer period that the Secretary determines is in the public
interest.

SEC. 1337. REPORTS DURING TRANSITION.

  Each enterprise shall submit to the Secretary, the Committee on
Banking, Finance and Urban Affairs of the House of Representatives,
and the Committee on Banking, Housing, and Urban Affairs of the
Senate, a report for each transitional housing goal for the
enterprise under section 1332(d), 1333(d), or 1334(d), describing
the actions the enterprise plans to take to meet such goal.  Each
such report shall be submitted within 45 days after the
establishment of the goal for which the report is submitted.

SEC. 1338. EFFECTIVE DATE OF TRANSITION GOALS.

  The housing goals established under sections 1332(d), 1333(d),
and 1334(d) shall not become effective until January 1, 1993.

              SUBPART C - ENFORCEMENT OF HOUSING GOALS

SEC. 1341. CEASE-AND-DESIST PROCEEDINGS.

  (a) Grounds for Issuance  . - The Secretary may issue and serve a
notice of charges under this section upon an enterprise if, in the
determination of the Secretary -

      (1) the enterprise has failed to submit a housing plan that
    substantially complies with section 1336(c) within the
    applicable period;

      (2) the enterprise is engaging or has engaged, or the
    Secretary has reasonable cause to believe that the enterprise
    is about to engage, in any failure to make a good faith effort
    to comply with a housing plan for the enterprise submitted and
    approved under section 1336(c); or

      (3) the enterprise has failed to submit the information
    required under subsection (m) or (n) of section 309 of the
    Federal National Mortgage Association Charter Act, subsection
    (e) or (f) of section 307 of the Federal Home Loan Mortgage
    Corporation Act, or section 1337 of this title.

  (b) Procedure. -

      (1) Notice of charges. - Each notice of charges shall contain
    a statement of the facts constituting the alleged conduct and
    shall fix a time and place at which a hearing will be held to
    determine on the record whether an order to cease and desist
    from such conduct should issue.

      (2) Issuance of order. - If the Secretary finds on the record
    made at such hearing that any conduct specified in the notice
    of charges has been established (or the enterprise consents
    pursuant to section 1342(a)(4)), the Secretary may issue and
    serve upon the enterprise an order requiring the enterprise to
    (A) submit a housing plan in compliance with section 1336(c),
    (B) comply with the housing plan, or (C) provide the
    information required under subsection (m) or (n) of section 309
    of the Federal National Mortgage Association Charter Act,
    subsection (e) or (f) of section 307 of the Federal Home Loan
    Mortgage Corporation Act, or section 1337 of this title.

  (c) Effective Date. - An order under this section shall become
effective upon the expiration of the 30-day period beginning on the
service of the order upon the enterprise (except in the case of an
order issued upon consent, which shall become effective at the time
specified therein), and shall remain effective and enforceable as
provided in the order, except to the extent that the order is
stayed, modified, terminated, or set aside by action of the
Secretary or otherwise, as provided in this subpart.

  (d) Transition Period Limitation  . - The Secretary may not
impose any cease-and-desist order under this section for any
failure by an enterprise, during the 2-year period beginning on the
January 1, 1993, to comply with an approved housing plan, unless
the Secretary determines that the enterprise has intentionally
failed to make a good faith effort to comply with the approved
plan.

SEC. 1342. HEARINGS.

  (a) Requirements. -

      (1) Venue and record  . - Any hearing under section 1341 or
1345 shall be held on the record and in the District of Columbia.

      (2) Timing. - Any such hearing shall be fixed for a date not
    earlier than 30 days nor later than 60 days after service of
    the notice of charges under section 1341(b)(1) or determination
    to impose a penalty under section 1345(c)(1), unless an earlier
    or a later date is set by the hearing officer at the request of
    the enterprise served.

      (3) Procedure  . - Any such hearing shall be conducted in
accordance with chapter 5 of title 5, United States Code.

      (4) Failure to appear. - If the enterprise served fails to
    appear at the hearing through a duly authorized representative,
    such enterprise shall be deemed to have consented to the
    issuance of the cease-and-desist order or the imposition of the
    penalty for which the hearing is held.

  (b) Issuance of Order  . -

      (1) In general. - After any such hearing, and within 90 days
    after the enterprise has been notified that the case has been
    submitted to the Secretary for final decision, the Secretary
    shall render the decision (which shall include findings of fact
    upon which the decision is predicated) and shall issue and
    serve upon the enterprise an order or orders consistent with
    the provisions of this subpart.

      (2) Modification. - Judicial review of any such order shall
    be exclusively as provided in section 1343. Unless such a
    petition for review is timely filed as provided in section
    1343, and thereafter until the record in the proceeding has
    been filed as so provided, the Secretary may at any time,
    modify, terminate, or set aside any such order, upon such
    notice and in such manner as the Secretary considers proper.
    Upon such filing of the record, the Secretary may modify,
    terminate, or set aside any such order with permission of the
    court.

SEC. 1343. JUDICIAL REVIEW.

  (a) Commencement. - An enterprise that is a party to a proceeding
under section 1341 or 1345 may obtain review of any final order
issued under such section by filing in the United States Court of
Appeals for the District of Columbia Circuit, within 30 days after
the date of service of such order, a written petition praying that
the order of the Secretary be modified, terminated, or set aside.
The clerk of the court shall transmit a copy of the petition to the
Secretary.

  (b) Filing of Record. - Upon receiving a copy of a petition, the
Secretary shall file in the court the record in the proceeding, as
provided in section 2112 of title 28, United States Code.

  (c) Jurisdiction. - Upon the filing of a petition, such court
shall have jurisdiction, which upon the filing of the record by the
Secretary shall (except as provided in the last sentence of section
1342(b)(2)) be exclusive, to affirm, modify, terminate, or set
aside, in whole or in part, the order of the Secretary.

  (d) Review. - Review of such proceedings shall be governed by
chapter 7 of title 5, United States Code.

  (e) Order To Pay Penalty  . - Such court shall have the authority
in any such review to order payment of any penalty imposed by the
Secretary under this subpart.

  (f) No Automatic Stay. - The commencement of proceedings for
judicial review under this section shall not, unless specifically
ordered by the court, operate as a stay of any order issued by the
Secretary.

SEC. 1344. ENFORCEMENT AND JURISDICTION.

  (a) Enforcement. - The Secretary may request the Attorney General
of the United States to bring an action in the United States
District Court for the District of Columbia for the enforcement of
any effective notice or order issued under section 1341 or 1345.
Such court shall have jurisdiction and power to order and require
compliance herewith.

  (b) Limitation on Jurisdiction. - Except as otherwise provided in
this subpart, no court shall have jurisdiction to affect, by
injunction or otherwise, the issuance or enforcement of any notice
or order under section 1341 or 1345, or to review, modify, suspend,
terminate, or set aside any such notice or order.

SEC. 1345. CIVIL MONEY PENALTIES.

  (a) Authority  . - The Secretary may impose a civil money
penalty, in accordance with the provisions of this section, on any
enterprise that has failed -

      (1) to submit a housing plan that substantially complies with
    section 1336(c) within the applicable period;

      (2) to make a good faith effort to comply with a housing plan
    for the enterprise submitted and approved under section
    1336(c); or

      (3) to submit the information required under subsection (m)
    or (n) of section 309 of the Federal National Mortgage
    Association Charter Act, subsection (e) or (f) of section 307
    of the Federal Home Loan Mortgage Corporation Act, or section
    1337 of this title.

  (b) Amount of Penalty  . - The amount of the penalty, as
determined by the Secretary, may not exceed -

      (1) for any failure described in subsection (a)(1), $25,000
    for each day that the failure occurs; and

      (2) for any failure described in subsection (a) (2) or (3),
    $10,000 for each day that the failure occurs.

  (c) Procedures  . -

      (1) Establishment  . - The Secretary shall establish
standards and procedures governing the imposition of civil money
penalties under this section.  Such standards and procedures -

          (A) shall provide for the Secretary to notify the
        enterprise in writing of the Secretary's determination to
        impose the penalty, which shall be made on the record;

          (B) shall provide for the imposition of a penalty only
        after the enterprise has been given an opportunity for a
        hearing on the record pursuant to section 1342; and

          (C) may provide for review by the Director for any
        determination or order, or interlocutory ruling, arising
        from a hearing.

      (2) Factors in determining amount of penalty  . - In
determining the amount of a penalty under this section, the
Secretary shall give consideration to such factors as the gravity
of the offense, any history of prior offenses, ability to pay the
penalty, injury to the public, benefits received, deterrence of
future violations, and such other factors as the Secretary may
determine, by regulation, to be appropriate.

  (d) Action To Collect Penalty  . - If an enterprise fails to
comply with an order by the Secretary imposing a civil money
penalty under this section, after the order is no longer subject to
review as provided by sections 1342 and 1343, the Secretary may
request the Attorney General of the United States to bring an
action in the United States District Court for the District of
Columbia to obtain a monetary judgment against the enterprise and
such other relief as may be available.  The monetary judgment may,
in the court's discretion, include the attorneys fees and other
expenses incurred by the United States in connection with the
action.  In an action under this subsection, the validity and
appropriateness of the order imposing the penalty shall not be
subject to review.

  (e) Settlement by Secretary  . - The Secretary may compromise,
modify, or remit any civil money penalty which may be, or has been,
imposed under this section.

  (f) Transition Period Limitation  . - The Secretary may not
impose any civil money penalty under this section for any failure
by an enterprise, during the 2-year period beginning on January 1,
1993, to comply with an approved housing plan, unless the Secretary
determines that the enterprise has intentionally failed to make a
good faith effort to comply with an approved plan.

  (g) Deposit of Penalties  . - The Secretary shall deposit any
civil money penalties collected under this section into the general
fund of the Treasury.

SEC. 1346. PUBLIC DISCLOSURE OF FINAL ORDERS AND AGREEMENTS.

  (a) In General. - The Secretary shall make available to the
public -

      (1) any written agreement or other written statement for
    which a violation may be redressed by the Secretary or any
    modification to or termination thereof, unless the Secretary,
    in the Secretary's discretion, determines that public
    disclosure would be contrary to the public interest or
    determines under subsection (c) that public disclosure would
    seriously threaten the financial health or security of the
    enterprise;

      (2) any order that is issued with respect to any
    administrative enforcement proceeding initiated by the
    Secretary under this subpart and that has become final in
    accordance with sections 1342 and 1343; and

      (3) any modification to or termination of any final order
    made public pursuant to this subsection.

  (b) Hearings. - All hearings with respect to any notice of
charges issued by the Secretary shall be open to the public, unless
the Secretary, in the Secretary's discretion, determines that
holding an open hearing would be contrary to the public interest.

  (c) Delay of Public Disclosure Under Exceptional Circumstances. -
If the Secretary makes a determination in writing that the public
disclosure of any final order pursuant to subsection (a) would
seriously threaten the financial soundness of the enterprise, the
Secretary may delay the public disclosure of such order for a
reasonable time.

  (d) Documents Filed Under Seal in Public Enforcement Hearings. -
The Secretary may file any document or part thereof under seal in
any hearing under this subpart if the Secretary determines in
writing that disclosure thereof would be contrary to the public
interest.

  (e) Retention of Documents. - The Secretary shall keep and
maintain a record, for not less than 6 years, of all documents
described in subsection (a) and all enforcement agreements and
other supervisory actions and supporting documents issued with
respect to or in connection with any enforcement proceeding
initiated by the Secretary under this subpart.

  (f) Disclosures to Congress. - This section may not be construed
to authorize the withholding, or to prohibit the disclosure, of any
information to the Congress or any committee or subcommittee
thereof.

SEC. 1347. NOTICE OF SERVICE.

  Any service required or authorized to be made by the Secretary
under this subpart may be made by registered mail or in such other
manner reasonably calculated to give actual notice, as the
Secretary may by regulation or otherwise provide.

SEC. 1348. SUBPOENA AUTHORITY.

  (a) In General. - In the course of or in connection with any
administrative proceeding under this subpart, the Secretary shall
have the authority -

      (1) to administer oaths and affirmations;

      (2) to take and preserve testimony under oath;

      (3) to issue subpoenas and subpoenas duces tecum; and

      (4) to revoke, quash, or modify subpoenas and subpoenas duces
    tecum issued by the Secretary.

  (b) Witnesses and Documents. - The attendance of witnesses and
the production of documents provided for in this section may be
required from any place in any State at any designated place where
such proceeding is being conducted.

  (c) Enforcement. - The Secretary may request the Attorney General
of the United States to bring an action in the United States
district court for the judicial district in which such proceeding
is being conducted, or where the witness resides or conducts
business, or the United States District Court for the District of
Columbia, for enforcement of any subpoena or subpoena duces tecum
issued pursuant to this section.  Such courts shall have
jurisdiction and power to order and require compliance therewith.

  (d) Fees and Expenses. - Witnesses subpoenaed under this section
shall be paid the same fees and mileage that are paid witnesses in
the district courts of the United States. Any court having
jurisdiction of any proceeding instituted under this section by an
enterprise may allow to any such party such reasonable expenses and
attorneys fees as the court deems just and proper.  Such expenses
and fees shall be paid by the enterprise or from its assets.

SEC. 1349. REGULATIONS.

  The Secretary shall issue any final regulations necessary to
implement the provisions of this part (not including the provisions
of sections 1332(d), 1333(d), and 1334(d), relating to transition
housing goals) not later than the expiration of the 18-month period
beginning on the date of the enactment of this Act. Such
regulations shall be issued after notice and opportunity for public
comment pursuant to the provisions of section 553 of title 5,
United States Code.

                 PART 3 - MISCELLANEOUS PROVISIONS

SEC. 1351. AMENDMENTS TO TITLE 5, UNITED STATES CODE.

  (a) Director at Level II of Executive Schedule. - Section 5313 of
title 5, United States Code, is amended by inserting at the end the
following new item:

      'Director of the Office of Federal Housing Enterprise
    Oversight, Department of Housing and Urban Development.'.

  (b) Exclusion From Senior Executive Service. - Section
3132(a)(1)(D) of title 5, United States Code, is amended by
inserting 'the Office of Federal Housing Enterprise Oversight of
the Department of Housing and Urban Development,' after 'Farm
Credit Administration,'.

SEC. 1352. PROHIBITION OF MERGER OF OFFICE.

  Section 5 of the Department of Housing and Urban Development Act
(42 U.S.C. 3534) is amended by adding at the end the following new
subsection:

  '(d) Notwithstanding any other provision of this Act, the
Secretary may not merge or consolidate the Office of Federal
Housing Enterprise Oversight of the Department, or any of the
functions or responsibilities of such Office, with any function or
program administered by the Secretary.'.

SEC. 1353. PROTECTION OF CONFIDENTIAL INFORMATION.

  Section 1905 of title 18, United States Code, is amended by
inserting 'any person acting on behalf of the Office of Federal
Housing Enterprise Oversight,' after 'or agency thereof,'.

SEC. 1354. REVIEW OF UNDERWRITING GUIDELINES.

  (a) Study. - Each of the enterprises shall conduct a study to
review the underwriting guidelines of the enterprise.  The studies
shall examine -

      (1) the extent to which the underwriting guidelines prevent
    or inhibit the purchase or securitization of mortgages for
    housing located in mixed-use, urban center, and predominantly
    minority neighborhoods and for housing for low- and
    moderate-income families;

      (2) the standards employed by private mortgage insurers and
    the extent to which such standards inhibit the purchase and
    securitization by the enterprises of mortgages described in
    paragraph (1); and

      (3) the implications of implementing underwriting standards
    that -

          (A) establish a downpayment requirement for mortgagors of
        5 percent or less;

          (B) allow the use of cash on hand as a source for
        downpayments; and

          (C) approve borrowers who have a credit history of
        delinquencies if the borrower can demonstrate a
        satisfactory credit history for at least the 12-month
        period ending on the date of the application for the
        mortgage.

  (b) Report. - Not later than the expiration of the 1-year period
beginning on the date of the enactment of this Act, each enterprise
shall submit to the Secretary, the Committee on Banking, Finance
and Urban Affairs of the House of Representatives, and the
Committee on Banking, Housing, and Urban Affairs of the Senate a
report regarding the study conducted by the enterprise under
subsection (a). Each report shall include any recommendations of
the enterprise for better meeting the housing needs of low- and
moderate-income families.

SEC. 1355. STUDIES OF EFFECTS OF PRIVATIZATION OF FNMA AND FHLMC.

  (a) In General. - The Comptroller General of the United States,
the Secretary of Housing and Urban Development, the Secretary of
the Treasury, and the Director of the Congressional Budget Office
shall each conduct and submit to the Committee on Banking, Finance
and Urban Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate, not later
than the expiration of the 2-year period beginning on the date of
the enactment of this Act, a study regarding the desirability and
feasibility of repealing the Federal charters of the Federal
National Mortgage Association and the Federal Home Loan Mortgage
Corporation, eliminating any Federal sponsorship of the
enterprises, and allowing the enterprises to continue to operate as
fully private entities.

  (b) Requirements. - Each study shall particularly examine the
effects of such privatization on -

      (1) the requirements applicable to the Federal National
    Mortgage Association and the Federal Home Loan Mortgage
    Corporation under Federal law and the costs to the enterprises;

      (2) the cost of capital to the enterprises;

      (3) housing affordability and availability and the cost of
    homeownership;

      (4) the level of secondary mortgage market competition
    subsequently available in the private sector;

      (5) whether increased amounts of capital would be necessary
    for the enterprises to continue operation;

      (6) the secondary market for residential loans and the
    liquidity of such loans; and

      (7) any other factors that the Comptroller General, the
    Secretary of Housing and Urban Development, the Secretary of
    the Treasury, or the Director of the Congressional Budget
    Office deems appropriate to enable the Congress to evaluate the
    desirability and feasibility of privatization of the
    enterprises.

  (c) Information. - The Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation shall provide full and
prompt access to the Comptroller General, the Secretary of Housing
and Urban Development, the Secretary of the Treasury, and the
Director of the Congressional Budget Office to any books, records,
and other information requested for the purposes of conducting the
studies under this section.

  (d) Views of the FNMA and FHLMC  . -

      (1) Consideration in studies. - In conducting the studies
    under this section, the Comptroller General, the Secretary of
    Housing and Urban Development, the Secretary of the Treasury,
    and the Director of the Congressional Budget Office shall each
    consider the views of the Federal National Mortgage Association
    and the Federal Home Loan Mortgage Corporation.

      (2) Direct report  . - The Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation may each
report directly to the Committee on Banking, Finance and Urban
Affairs of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate on its own
analysis of the desirability and feasibility of repealing the
Federal charters of the enterprises, eliminating any Federal
sponsorship, and allowing the enterprises to continue to operate as
fully private entities.

SEC. 1356. TRANSITION.

  Before the expiration of the period ending 18 months after the
appointment of the Director under section 1312, any rules and
regulations promulgated before the date of the enactment of this
Act by the Secretary pursuant to the Federal National Mortgage
Association Charter Act or the Federal Home Loan Mortgage
Corporation Act shall remain in effect unless modified, terminated,
superseded, or revoked by operation of law or in accordance with
law.  Such rules and regulations shall terminate, effective upon
the expiration of such period.

  SUBTITLE B - REQUIRED CAPITAL LEVELS FOR ENTERPRISES AND SPECIAL
                         ENFORCEMENT POWERS

SEC. 1361. RISK-BASED CAPITAL LEVELS.

  (a) Risk-Based Capital Test. - The Director shall, by regulation,
establish a risk-based capital test under this section for the
enterprises.  When applied to an enterprise, the risk-based capital
test shall determine the amount of total capital for the enterprise
that is sufficient for the enterprise to maintain positive capital
during a 10-year period in which the following circumstances occur
(in this section referred to as the 'stress period'):

      (1) Credit risk. - With respect to mortgages owned or
    guaranteed by the enterprise and other obligations of the
    enterprise, losses occur throughout the United States at a rate
    of default and severity (based on any measurements of default
    reasonably related to prevailing practice for that industry in
    determining capital adequacy) reasonably related to the rate
    and severity that occurred in contiguous areas of the United
    States containing an aggregate of not less than 5 percent of
    the total population of the United States that, for a period of
    not less than 2 years, experienced the highest rates of default
    and severity of mortgage losses, in comparison with such rates
    of default and severity of mortgage losses in other such areas
    for any period of such duration.

      (2) Interest rate risk. -

          (A) In general. -  Interest rates decrease as described
in subparagraph (B) or increase as described in subparagraph (C),
whichever would require more capital for the enterprise.

          (B) Decreases. -  The 10-year constant maturity Treasury
yield decreases during the first year of the stress period and will
remain at the new level for the remainder of the stress period.
The yield decreases to the lesser of -

              (i) 600 basis points below the average yield during
            the preceding 9 months, or

              (ii) 60 percent of the average yield during the
            preceding 3 years,

        but in no case to a yield less than 50 percent of the
        average yield during the preceding 9 months.

          (C) Increases. -  The 10-year constant maturity Treasury
yield increases during the first year of the stress period and will
remain at the new level for the remainder of the stress period.
The yield increases to the greater of -

              (i) 600 basis points above the average yield during
            the preceding 9 months, or

              (ii) 160 percent of the average yield during the
            preceding 3 years,

        but in no case to a yield greater than 175 percent of the
        average yield during the preceding 9 months.

          (D) Different terms to maturity. -  Yields of Treasury
instruments with other terms to maturity will change relative to
the 10-year constant maturity Treasury yield in patterns and for
durations that are reasonably related to historical experience and
are judged reasonable by the Director.

          (E) Large increases in yields. -  If the 10-year constant
maturity Treasury yield is assumed to increase by more than 50
percent over the average yield during the preceding 9 months, the
Director shall adjust the losses in paragraphs (1) and (3) to
reflect a correspondingly higher rate of general price inflation.

      (3) New business. -

          (A) In general. -  Any contractual commitments of the
enterprise to purchase mortgages or issue securities will be
fulfilled.  The characteristics of resulting mortgage purchases,
securities issued, and other financing will be consistent with the
contractual terms of such commitments, recent experience, and the
economic characteristics of the stress period.  No other purchases
of mortgages shall be assumed, except as provided in subparagraph
(B).

          (B) Additional new business. - The Director may, after
        consideration of each of the studies required by
        subparagraph (C), assume that the enterprise conducts
        additional new business during the stress period consistent
        with the following -

              (i) Amount and product types. - The amount and types
            of mortgages purchased and their financing will be
            reasonably related to recent experience and the
            economic characteristics of the stress period.

              (ii) Losses. - Default and loss severity
            characteristics of mortgages purchased will be
            reasonably related to historical experience.

              (iii) Pricing. - Prices charged by the enterprise in
            purchasing new mortgages will be reasonably related to
            recent experience and the economic characteristics of
            the stress period.  The Director may assume that a
            reasonable period of time would lapse before the
            enterprise would recognize and react to the
            characteristics of the stress period.

              (iv) Interest rate risk. - Interest rate risk on new
            mortgages purchased will occur to an extent reasonably
            related to historical experience.

              (v) Reserves. - The enterprise must maintain reserves
            during and at the end of the stress period on new
            business conducted during the first 5 years of the
            stress period reasonably related to the expected future
            losses on such business, consistent with generally
            accepted accounting principles and industry accounting
            practice.

          (C) Studies. - Within 1 year after regulations are first
        issued under subsection (e), the Director of the
        Congressional Budget Office, and the Comptroller General of
        the United States shall each submit to the Committee on
        Banking, Housing, and Urban Affairs of the Senate and the
        Committee on Banking, Finance and Urban Affairs of the
        House of Representatives a study of the advisability and
        appropriate form of any new business assumptions under
        subparagraph (B).

          (D) Effective date. -  The provisions of subparagraph (B)
shall become effective 4 years after regulations are first issued
under subsection (e).

      (4) Other activities. -  Losses or gains on other activities,
including interest rate and foreign exchange hedging activities,
shall be determined by the Director, on the basis of available
information, to be consistent with the stress period.

  (b) Considerations. -

      (1) In general. -  In establishing the risk-based capital
test under subsection (a), the Director shall take into account
appropriate distinctions among types of mortgage products,
differences in seasoning of mortgages, and any other factors the
Director considers appropriate.

      (2) Consistency. -  Characteristics of the stress period
other than those specifically set forth in subsection (a), such as
prepayment experience and dividend policies, will be those
determined by the Director, on the basis of available information,
to be most consistent with the stress period.

  (c) Risk-Based Capital Level. - For purposes of this subtitle,
the risk-based capital level for an enterprise shall be equal to
the sum of the following amounts:

      (1) Credit and interest rate risk. - The amount of total
    capital determined by applying the risk-based capital test
    under subsection (a) to the enterprise.

      (2) Management and operations risk. - To provide for
    management and operations risk, 30 percent of the amount of
    total capital determined by applying the risk-based capital
    test under subsection (a) to the enterprise.

  (d) Definitions. - For purposes of this section:

      (1) Seasoning. - The term 'seasoning' means the change over
    time in the ratio of the unpaid principal balance of a mortgage
    to the value of the property by which such mortgage loan is
    secured, determined on an annual basis by region, in accordance
    with the Constant Quality Home Price Index published by the
    Secretary of Commerce (or any index of similar quality,
    authority, and public availability that is regularly used by
    the Federal Government).

      (2) Type of mortgage product. - The term 'type of mortgage
    product' means a classification of one or more mortgage
    products, as established by the Director, which have similar
    characteristics from each set of characteristics under the
    following subparagraphs:

          (A) The property securing the mortgage is -

              (i) a residential property consisting of 1 to 4
            dwelling units; or

              (ii) a residential property consisting of more than 4
            dwelling units.

          (B) The interest rate on the mortgage is -

              (i) fixed; or

              (ii) adjustable.

          (C) The priority of the lien securing the mortgage is -

              (i) first; or

              (ii) second or other.

          (D) The term of the mortgage is -

              (i) 1 to 15 years;

              (ii) 16 to 30 years; or

              (iii) more than 30 years.

          (E) The owner of the property is -

              (i) an owner-occupant; or

              (ii) an investor.

          (F) The unpaid principal balance of the mortgage -

              (i) will amortize completely over the term of the
            mortgage and will not increase significantly at any
            time during the term of the mortgage;

              (ii) will not amortize completely over the term of
            the mortgage and will not increase significantly at any
            time during the term of the mortgage; or

              (iii) may increase significantly at some time during
            the term of the mortgage.

          (G) Any other characteristics of the mortgage, as the
        Director may determine.

  (e) Regulations. -

      (1) Issuance  . - The Director shall issue final regulations
establishing the risk-based capital test under this section not
later than the expiration of the 18-month period beginning on the
date of the appointment of the Director. Such regulations shall be
issued after notice and opportunity for public comment pursuant to
the provisions of section 553 of title 5, United States Code, and
shall take effect upon issuance.

      (2) Contents  . - The regulations under this subsection shall
contain specific requirements, definitions, methods, variables, and
parameters used under the risk-based capital test and in
implementing the test (such as loan loss severity, float income,
loan-to-value ratios, taxes, yield curve slopes, default
experience, and prepayment rates).  The regulations shall be
sufficiently specific to permit an individual other than the
Director to apply the test in the same manner as the Director.

      (3) Confidentiality of information  . - Any person that
receives any book, record, or information from the Director or an
enterprise to enable the risk-based capital test to be applied
shall -

          (A) 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 enterprise; and

          (B) be exempt from section 552 of title 5, United States
        Code, with respect to the book, record, or information.

  (f) Availability of Model. - The Director shall provide copies of
the statistical model or models used to implement the risk-based
capital test under this section to the Secretary, the Board of
Governors of the Federal Reserve System, the Director of the Office
of Management and Budget, the Comptroller General of the United
States, and the Director of the Congressional Budget Office. The
Director shall make copies of such model or models available for
public acquisition and may charge a reasonable fee for such copies.

SEC. 1362. MINIMUM CAPITAL LEVELS.

  (a) In General. - For purposes of this subtitle, the minimum
capital level for each enterprise shall be the sum of -

      (1) 2.50 percent of the aggregate on-balance sheet assets of
    the enterprise, as determined in accordance with generally
    accepted accounting principles;

      (2) 0.45 percent of the unpaid principal balance of
    outstanding mortgage-backed securities and substantially
    equivalent instruments issued or guaranteed by the enterprise
    that are not included in paragraph (1); and

      (3) 0.45 percent of other off-balance sheet obligations of
    the enterprise not included in paragraph (2) (excluding
    commitments in excess of 50 percent of the average dollar
    amount of the commitments outstanding each quarter over the
    preceding 4 quarters), except that the Director shall adjust
    such percentage to reflect differences in the credit risk of
    such obligations in relation to the instruments included in
    paragraph (2).

  (b) Transition. - Notwithstanding subsection (a), during the
18-month period beginning upon the date of the enactment of this
Act, the minimum capital level for each enterprise shall be the sum
of -

      (1) 2.25 percent of the aggregate on-balance sheet assets of
    the enterprise, as determined in accordance with generally
    accepted accounting principles;

      (2) 0.40 percent of the unpaid principal balance of
    outstanding mortgage-backed securities and substantially
    equivalent instruments issued or guaranteed by the enterprise
    that are not included in paragraph (1); and

      (3) 0.40 percent of other off-balance sheet obligations of
    the enterprise not included in paragraph (2) (excluding
    commitments in excess of 50 percent of the average dollar
    amount of the commitments outstanding each quarter over the
    preceding 4 quarters), except that the Director shall adjust
    such percentage to reflect differences in the credit risk of
    such obligations in relation to the instruments included in
    paragraph (2).

SEC. 1363. CRITICAL CAPITAL LEVELS.

  For purposes of this subtitle, the critical capital level for
each enterprise shall be the sum of -

      (1) 1.25 percent of the aggregate on-balance sheet assets of
    the enterprise, as determined in accordance with generally
    accepted accounting principles;

      (2) 0.25 percent of the unpaid principal balance of
    outstanding mortgage-backed securities and substantially
    equivalent instruments issued or guaranteed by the enterprise
    that are not included in paragraph (1); and

      (3) 0.25 percent of other off-balance sheet obligations of
    the enterprise not included in paragraph (2) (excluding
    commitments in excess of 50 percent of the average dollar
    amount of the commitments outstanding each quarter over the
    preceding 4 quarters), except that the Director shall adjust
    such percentage to reflect differences in the credit risk of
    such obligations in relation to the instruments included in
    paragraph (2).

SEC. 1364. CAPITAL CLASSIFICATIONS.

  (a) In General. - For purposes of this subtitle, the Director
shall classify the enterprises according to the following capital
classifications:

      (1) Adequately capitalized. - An enterprise shall be
    classified as adequately capitalized if the enterprise -

          (A) maintains an amount of total capital that is equal to
        or exceeds the risk-based capital level established for the
        enterprise under section 1361; and

          (B) maintains an amount of core capital that is equal to
        or exceeds the minimum capital level established for the
        enterprise under section 1362.

      (2) Undercapitalized. - An enterprise shall be classified as
    undercapitalized if -

          (A) the enterprise -

              (i) does not maintain an amount of total capital that
            is equal to or exceeds the risk-based capital level
            established for the enterprise; and

              (ii) maintains an amount of core capital that is
            equal to or exceeds the minimum capital level
            established for the enterprise; or

          (B) the enterprise is otherwise classified as
        undercapitalized under subsection (b)(1) of this section.

      (3) Significantly undercapitalized. - An enterprise shall be
    classified as significantly undercapitalized if -

          (A) the enterprise -

              (i) does not maintain an amount of total capital that
            is equal to or exceeds the risk-based capital level
            established for the enterprise;

              (ii) does not maintain an amount of core capital that
            is equal to or exceeds the minimum capital level
            established for the enterprise; and

              (iii) maintains an amount of core capital that is
            equal to or exceeds the critical capital level
            established for the enterprise under section 1363; or

          (B) the enterprise is otherwise classified as
        significantly undercapitalized under subsection (b)(2) of
        this section or section 1365(b).

      (4) Critically undercapitalized. - An enterprise shall be
    classified as critically undercapitalized if -

          (A) the enterprise -

              (i) does not maintain an amount of total capital that
            is equal to or exceeds the risk-based capital level
            established for the enterprise; and

              (ii) does not maintain an amount of core capital that
            is equal to or exceeds the critical capital level for
            the enterprise; or

          (B) is otherwise classified as critically
        undercapitalized under subsection (b)(3) of this section or
        section 1366(b)(5).

  (b) Discretionary Classification. - If at any time the Director
determines in writing that an enterprise is engaging in conduct not
approved by the Director that could result in a rapid depletion of
core capital or that the value of the property subject to mortgages
held or securitized by the enterprise has decreased significantly,
the Director may classify the enterprise -

      (1) as undercapitalized, if the enterprise is otherwise
    classified as adequately capitalized;

      (2) as significantly undercapitalized, if the enterprise is
    otherwise classified as undercapitalized; and

      (3) as critically undercapitalized, if the enterprise is
    otherwise classified as significantly undercapitalized.

  (c) Quarterly Determination. - The Director shall determine the
capital classification of the enterprises for purposes of this
subtitle on not less than a quarterly basis (and as appropriate
under subsection (b)). The first such determination shall be made
during the 3-month period beginning on the appointment of the
Director.

  (d) Implementation  . - Notwithstanding any other provision of
this section, during the period beginning on the date of the
enactment of this Act and ending upon the effective date of section
1365 (as provided in section 1365(c)), an enterprise shall be
classified as adequately capitalized if the enterprise maintains an
amount of core capital that is equal to or exceeds the minimum
capital level for the enterprise under section 1362.

SEC. 1365. SUPERVISORY ACTIONS APPLICABLE TO UNDERCAPITAL- IZED
            ENTERPRISES.

  (a) Mandatory Actions  . -

      (1) Capital restoration plan. - An enterprise that is
    classified as undercapitalized shall, within the time period
    provided in section 1369C (b) and (d), submit to the Director a
    capital restoration plan that complies with section 1369C and
    carry out the plan after approval.

      (2) Restriction on capital distributions. - An enterprise
    that is classified as undercapitalized may not make any capital
    distribution that would result in the enterprise being
    reclassified as significantly undercapitalized or critically
    undercapitalized.

  (b) Discretionary Reclassification From Undercapitalized to
Significantly Undercapitalized. - The Director may reclassify as
significantly undercapitalized an enterprise that is classified as
undercapitalized (and the enterprise shall be subject to the
provisions of section 1366) if -

      (1) the enterprise does not submit a capital restoration plan
    that is substantially in compliance with section 1369C within
    the applicable period or the Director does not approve the
    capital restoration plan submitted by the enterprise; or

      (2) the Director determines that the enterprise has failed to
    make, in good faith, reasonable efforts necessary to comply
    with the capital restoration plan and fulfill the schedule for
    the plan approved by the Director.

  (c) Effective Date. - This section shall take effect upon the
expiration of the 1-year period beginning on the date of the
effectiveness of the regulations issued under section 1361(e)
establishing the risk-based capital test.

SEC. 1366. SUPERVISORY ACTIONS APPLICABLE TO SIGNIFICANTLY
            UNDERCAPITALIZED ENTERPRISES.

  (a) Mandatory Supervisory Actions. -

      (1) Capital restoration plan. - An enterprise that is
    classified as significantly undercapitalized shall, within the
    time period under section 1369C (b) and (d), submit to the
    Director a capital restoration plan that complies with section
    1369C and carry out the plan after approval.

      (2) Restrictions on capital distributions. -

          (A) Prior approval. - An enterprise that is classified as
        significantly undercapitalized may not make any capital
        distribution that would result in the enterprise being
        reclassified as critically undercapitalized.  An enterprise
        that is classified as significantly undercapitalized
        enterprise may not make any other capital distribution
        unless the Director approves the distribution.

          (B) Standard for approval. - The Director may approve a
        capital distribution by an enterprise classified as
        significantly undercapitalized only if the Director
        determines that the distribution (i) will enhance the
        ability of the enterprise to meet the risk-based capital
        level and the minimum capital level for the enterprise
        promptly, (ii) will contribute to the long-term financial
        safety and soundness of the enterprise, or (iii) is
        otherwise in the public interest.

  (b) Discretionary Supervisory Actions. - In addition to any other
actions taken by the Director (including actions under subsection
(a)), the Director may, at any time, take any of the following
actions with respect to an enterprise that is classified as
significantly undercapitalized:

      (1) Limitation on increase in obligations. - Limit any
    increase in, or order the reduction of, any obligations of the
    enterprise, including off-balance sheet obligations.

      (2) Limitation on growth. - Limit or prohibit the growth of
    the assets of the enterprise or require contraction of the
    assets of the enterprise.

      (3) Acquisition of new capital. - Require the enterprise to
    acquire new capital in a form and amount determined by the
    Director.

      (4) Restriction of activities. - Require the enterprise to
    terminate, reduce, or modify any activity that the Director
    determines creates excessive risk to the enterprise.

      (5) Reclassification from significantly to critically
    undercapitalized. - The Director may reclassify as critically
    undercapitalized an enterprise that is classified as
    significantly undercapitalized (and the enterprise shall be
    subject to the provisions of section 1367) if -

          (A) the enterprise does not submit a capital restoration
        plan that is substantially in compliance with section 1369C
        within the applicable period or the Director does not
        approve the capital restoration plan submitted by the
        enterprise; or

          (B) the Director determines that the enterprise has
        failed to make, in good faith, reasonable efforts necessary
        to comply with the capital restoration plan and fulfill the
        schedule for the plan approved by the Director.

      (6) Conservatorship. - Appoint a conservator for the
    enterprise in accordance with the provisions of section 1369
    (excluding subsection (a) (1) and (2)), but only if the
    Director determines -

          (A) that the amount of core capital of the enterprise is
        less than the minimum capital level established for the
        enterprise under section 1362; and

          (B) that alternative remedies available to the Director
        under this title are not satisfactory.

  (c) Effective Date. - This section shall take effect upon the
first classification of the enterprises within capital
classifications that occurs under section 1364.

SEC. 1367. APPOINTMENT OF CONSERVATORS FOR CRITICALLY
            UNDERCAPITALIZED ENTERPRISES.

  (a) Appointment. -

      (1) In general  . - Upon a determination and notice under
section 1368(d) that an enterprise is critically undercapitalized
and not later than 30 days after providing notice under section
1369(a)(3), the Director shall appoint a conservator for the
enterprise in accordance with the provisions of section 1369
(excluding subsections (a) (1) and (2)).

      (2) Exception  . - Notwithstanding paragraph (1), the
Director may determine not to appoint a conservator for an
enterprise classified as critically undercapitalized, but only
pursuant to a written finding by the Director, with the written
concurrence of the Secretary of the Treasury, that -

          (A) the appointment of a conservator would have serious
        adverse effects on economic conditions of national
        financial markets or on the financial stability of the
        housing finance market; and

          (B) the public interest would be better served by taking
        some other enforcement action authorized under this title.

  (b) Authority  . - The Director shall have the authority to take
any actions under sections 1365 and 1366 with respect to an
enterprise under conservatorship.

  (c) Approval of Activities. -

      (1) Conservator  . - The conservator of any enterprise
classified as critically undercapitalized may undertake an activity
subject to the approval of the Secretary under section 1322 of this
title only with the additional approval of the Director.

      (2) No conservator  . - If the Director determines under
subsection (a)(2) not to appoint a conservator for an enterprise
classified as critically undercapitalized, the provisions of
section 1366 shall apply with respect to the enterprise.

  (d) Effective Date. - This section shall take effect upon the
first classification of the enterprises within capital
classifications that occurs under section 1364.

SEC. 1368. NOTICE OF CLASSIFICATION AND ENFORCEMENT ACTION.

  (a) Notice. - Before taking any action referred to in subsection
(b), the Director shall provide to the enterprise written notice of
the proposed action, which states the reasons for the proposed
action and the information on which the proposed action is based.

  (b) Applicability. - The requirements of subsection (a) shall
apply to the following actions:

      (1) Classification or reclassification of an enterprise
    within a particular capital classification under section 1364.

      (2) Any discretionary supervisory action pursuant to section
    1365.

      (3) Any discretionary supervisory action pursuant to section
    1366 except a decision to appoint a conservator under section
    1366(b)(6).

Notice of classification under paragraph (1) and notice of
supervisory actions under paragraph (2) or (3) may be provided
together in a single notice under subsection (a).

  (c) Response Period  . -

      (1) In general  . - During the 30-day period beginning on the
date that an enterprise is provided notice under subsection (a) of
a proposed action, the enterprise may submit to the Director any
information relevant to the action that the enterprise considers
appropriate for consideration by the Director in determining
whether to take such action.  The Director may, at the discretion
of the Director, hold an informal administrative hearing to receive
and discuss such information and the proposed determination.

      (2) Extended period  . - The Director may extend the period
under paragraph (1) for good cause for not more than 30 additional
days.

      (3) Shortened period  . - The Director may shorten the period
under paragraph (1) if the Director determines that the condition
of the enterprise so requires or the enterprise consents.

      (4) Failure to respond  . - The failure of an enterprise to
provide information during the response period under this
subsection (as extended or shortened) shall waive any right of the
enterprise to comment on the proposed action of the Director.

  (d) Consideration of Information and Determination  . - After the
expiration of the response period under subsection (c) or upon
receipt of information provided during such period by the
enterprise, whichever occurs earlier, the Director shall determine
whether to take the action proposed, taking into consideration any
relevant information submitted by the enterprise during the
response period.  The Director shall provide written notice of a
determination to take action and the reasons for such determination
to the enterprise, the Committee on Banking, Finance and Urban
Affairs of the House of Representatives, and the Committee on
Banking, Housing, and Urban Affairs of the Senate. Such notice
shall respond to any information submitted during the response
period.

  (e) Effective Date of Actions  . - An action referred to in
subsection (b) shall take effect upon receipt by the enterprise of
notice of the determination of the Director under subsection (d),
unless otherwise provided in such notice.

SEC. 1369. APPOINTMENT OF CONSERVATORS.

  (a) Appointment  . -

      (1) Discretionary authority. - The Director may, after
    providing notice under paragraph (3), appoint a conservator for
    an enterprise upon a determination in writing -

          (A) that alternative remedies available to the Director
        under this title are not satisfactory; and

          (B) that -

              (i) the enterprise is not likely to pay its
            obligations in the normal course of business;

              (ii) the enterprise has incurred or is reasonably
            likely to incur losses that would deplete substantially
            all of its core capital and it is unlikely that the
            enterprise will replenish its core capital within a
            reasonable period;

              (iii) the enterprise has concealed or is concealing
            books, papers, records, or assets of the enterprise
            that are material to the discharge of the Director's
            responsibilities under this subtitle, or has refused or
            is refusing to submit such books, papers, records, or
            information regarding the affairs of the enterprise for
            inspection to the Director upon request; or

              (iv) the enterprise has willfully violated, or is
            willfully violating, a final cease-and-desist order
            under section 1371.

      (2) Consent of enterprise. - Notwithstanding paragraph (1),
    the Director may appoint a conservator for an enterprise if the
    enterprise, by an affirmative vote of a majority of the members
    of its board of directors or by an affirmative vote of a
    majority of its shareholders, consents to such appointment.

      (3) Notice. - Upon making a determination under paragraph (1)
    of this subsection or under section 1366 or 1367 to appoint a
    conservator for an enterprise, or upon consent of the
    enterprise under paragraph (2) to such an appointment, the
    Director shall provide written notice to the enterprise, the
    Committee on Banking, Finance and Urban Affairs of the House of
    Representatives, and the Committee on Banking, Housing, and
    Urban Affairs of the Senate -

          (A) that a conservator will be appointed for the
        enterprise;

          (B) stating the reasons for the appointment of the
        conservator; and

          (C) identifying the person or governmental agency that
        the Director intends to appoint as conservator.

      (4) Qualifications  . - The conservator shall be -

          (A) the Director or any other governmental agency; or

          (B) any person that -

              (i) has no claim against, or financial interest in,
            the enterprise or other basis for a conflict of
            interest; and

              (ii) has the financial and management expertise
            necessary to direct the operations and affairs of the
            enterprise.

  (b) Judicial Review. -

      (1) Timing and jurisdiction. - Except as provided in
    paragraph (2), an enterprise for which a conservator is
    appointed (pursuant to this section or section 1366 or 1367)
    may bring an action in the United States District Court for the
    District of Columbia for an order requiring the Director to
    terminate the appointment of the conservator.  The court, upon
    the merits, shall dismiss such action or shall direct the
    Director to terminate the appointment of the conservator.  Such
    an action may be commenced only during the 20-day period
    beginning upon the appointment of the conservator.

      (2) Consensual appointments. - Appointment of a conservator
    pursuant to consent of the enterprise under subsection (a)(2)
    shall not be subject to judicial review under this subsection.

      (3) Standard of review. - A decision of the Director to
    appoint a conservator may be set aside under this subsection
    only if the court finds that the decision was arbitrary,
    capricious, an abuse of discretion, or otherwise not in
    accordance with applicable laws.

      (4) Limitation on jurisdiction. - Except as otherwise
    provided in this subsection, no court may take any action
    regarding the removal of a conservator or otherwise restrain or
    affect the exercise of powers or functions of a conservator.

  (c) Replacement. - The Director may, without notice or hearing,
replace a conservator with another conservator.  Such replacement
shall not affect the right of the enterprise under subsection (b)
to obtain judicial review of the decision of the Director to
appoint a conservator.

  (d) Examinations. - The Director may examine and supervise any
enterprise in conservatorship during the period in which the
enterprise continues to operate as a going concern.

  (e) Termination. -

      (1) Discretionary. - At any time the Director determines that
    termination of a conservatorship pursuant to an appointment
    under subsection (a) is in the public interest and may safely
    be accomplished, the Director may terminate the conservatorship
    and permit the enterprise to resume the transaction of its
    business subject to such terms, conditions, and limitations as
    the Director may prescribe.

      (2) Mandatory. - The Director shall terminate a
    conservatorship initiated pursuant to section 1366 or 1367 upon
    a determination by the Director that the enterprise has
    maintained an amount of core capital that is equal to or
    exceeds the minimum capital level for the enterprise
    established under section 1362, and may by written order
    prescribe such terms, conditions, and limitations on the
    enterprise as the Director considers appropriate.

      (3) Terms  . - Any terms, conditions, and limitations imposed
by the Director upon termination of a conservatorship shall be
enforceable and reviewable under the provisions of sections 1374
and 1375, to the same extent as any cease-and-desist order issued
pursuant to subtitle C.

SEC. 1369A. POWERS OF CONSERVATORS.

  (a) General Powers. - A conservator shall have all the powers of
the shareholders, directors, and officers of the enterprise under
conservatorship and may operate the enterprise in the name of the
enterprise, unless the Director provides otherwise.

  (b) Additional Power  . - A conservator may avoid any security
interest taken by a creditor with the intent to hinder, delay, or
defraud the enterprise or the creditors of the enterprise.

  (c) Limitations by Director. - A conservator shall be subject to
any rules, regulations, and orders issued from time to time by the
Director and, except as otherwise specifically provided in such
rules, regulations, or orders or in section 1369B, shall have the
same rights and privileges and be subject to the same duties,
restrictions, penalties, conditions, and limitations applicable to
directors, officers, or employees of the enterprise.

  (d) Enforcement of Contracts  . -

      (1) In general. - A conservator may enforce any contract
    described in paragraph (2), notwithstanding any provision of
    the contract providing for the termination, default,
    acceleration, or other exercise of rights upon, or solely by
    reason of, the insolvency of the enterprise or the appointment
    of a conservator.

      (2) Enforceable contracts. - Any contract that is within a
    class of contracts shall be enforceable under paragraph (1) if
    the Director -

          (A) determines that the continued enforceability of such
        class of contracts is necessary to achieve the purpose of
        the conservatorship; and

          (B) specifically provides for the enforceability of such
        class of contracts in a regulation or order, issued for the
        purpose of this subsection, which describes such class.

      (3) Applicability  . - This subsection and any regulation or
order issued under this subsection shall apply only to contracts
entered into, modified, extended, or renewed after the effective
date of the regulation or order.

  (e) Stays. -

      (1) In general. - Not later than 45 days after appointment
    pursuant to section 1366, 1367, or 1369, or 45 days after
    receipt of actual notice of an action or proceeding that is
    pending at the time of appointment, a conservator may request
    that any judicial action or proceeding to which the conservator
    or the enterprise is or may become a party be stayed for a
    period not exceeding 45 days after the request.  Upon petition,
    the court shall grant such stay as to all parties.

      (2) Federal agency as conservator. - In any case in which the
    conservator appointed for an enterprise is a Federal agency or
    an officer or employee of the Federal Government, the
    conservator may make a request for a stay under paragraph (1)
    only with the prior consent of the Attorney General and subject
    to the direction and control of the Attorney General.

  (f) Payment of Creditors. - The Director may require a
conservator to set aside and make available for payment to
creditors any amounts that the Director determines may safely be
used for such purpose.  All creditors who are similarly situated
shall be treated in a similar manner.

  (g) Compensation of Conservator and Employees. - A conservator
and professional employees (other than Federal employees) appointed
to represent or assist the conservator may be compensated for
activities conducted as conservator.  Compensation may not be
provided in amounts greater than the compensation paid to employees
of the Federal Government for similar services, except that the
Director may provide for compensation at higher rates (but not in
excess of rates prevailing in the private sector), if the Director
determines that compensation at higher rates is necessary in order
to recruit and retain competent personnel.

  (h) Expenses. - All expenses of a conservatorship pursuant to
this section (including compensation pursuant to subsection (f))
shall be paid by the enterprise under conservatorship and shall be
secured by a lien on the enterprise, which shall have priority over
any other lien.

  (i) Conflicts of Interest and Financial Disclosure  . - A
conservator shall be subject to any laws and regulations relating
to conflicts of interest and financial disclosure that apply to
employees of the Office.

SEC. 1369B. LIABILITY PROTECTION FOR CONSERVATORS.

  (a) Federal Agencies and Employees. - In any case in which a
conservator appointed under this subtitle is a Federal agency or an
officer or employee of the Federal Government, the provisions of
chapters 161 and 171 of title 28, United States Code, shall apply
with respect to the liability of the conservator for acts or
omissions performed pursuant to and in the course of the duties and
responsibilities of the conservatorship.

  (b) Other Conservators. - In any case where the conservator is
not a conservator described in subsection (a), the conservator
shall not be personally liable for damages in tort or otherwise for
acts or omissions performed pursuant to and in the course of the
duties and responsibilities of the conservatorship, unless such
acts or omissions constitute gross negligence or any form of
intentional tortious conduct or criminal conduct.

  (c) Indemnification. - The Director, with the approval of the
Attorney General, may indemnify the conservator on such terms as
the Director considers appropriate.

SEC. 1369C. CAPITAL RESTORATION PLANS.

  (a) Contents. - Each capital restoration plan submitted under
this subtitle shall set forth a feasible plan for restoring the
core capital of the enterprise subject to the plan to an amount not
less than the minimum capital level for the enterprise and for
restoring the total capital of the enterprise to an amount not less
than the risk-based capital level for the enterprise.  Each capital
restoration plan shall -

      (1) specify the level of capital the enterprise will achieve
    and maintain;

      (2) describe the actions that the enterprise will take to
    become classified as adequately capitalized;

      (3) establish a schedule for completing the actions set forth
    in the plan;

      (4) specify the types and levels of activities (including
    existing and new programs) in which the enterprise will engage
    during the term of the plan; and

      (5) describe the actions that the enterprise will take to
    comply with any mandatory and discretionary requirements
    imposed under this subtitle.

  (b) Deadlines for Submission. - The Director shall, by
regulation, establish a deadline for submission of a capital
restoration plan, which may not be more than 45 days after the
enterprise is notified in writing that a plan is required.  The
regulations shall provide that the Director may extend the deadline
to the extent that the Director determines it necessary.  Any
extension of the deadline shall be in writing and for a time
certain.

  (c) Approval. - The Director shall review each capital
restoration plan submitted under this section and, not later than
30 days after submission of the plan, approve or disapprove the
plan.  The Director may extend the period for approval or
disapproval for any plan for a single additional 30-day period if
the Director determines it necessary.  The Director shall provide
written notice to any enterprise submitting a plan of the approval
or disapproval of the plan (which shall include the reasons for any
disapproval of the plan) and of any extension of the period for
approval or disapproval.

  (d) Resubmission  . - If the Director disapproves the initial
capital restoration plan submitted by the enterprise, the
enterprise shall submit an amended plan acceptable to the Director
within 30 days or such longer period that the Director determines
is in the public interest.

SEC. 1369D. JUDICIAL REVIEW OF DIRECTOR ACTION.

  (a) Jurisdiction. -

      (1) Filing of petition. - An enterprise that is not
    classified as critically undercapitalized and is the subject of
    a classification under section 1364 or a discretionary
    supervisory action taken under this subtitle by the Director
    (other than action to appoint a conservator under section 1366
    or 1367 or action under section 1369) may obtain review of the
    classification or action by filing, within 10 days after
    receiving written notice of the Director's action, a written
    petition requesting that the classification or action of the
    Director be modified, terminated, or set aside.

      (2) Place for filing. - A petition filed pursuant to this
    subsection shall be filed in the United States Court of Appeals
    for the District of Columbia Circuit.

  (b) Scope of Review. - The Court may modify, terminate, or set
aside an action taken by the Director and reviewed by the Court
pursuant to this section only if the court finds, on the record on
which the Director acted, that the action of the Director was
arbitrary, capricious, an abuse of discretion, or otherwise not in
accordance with applicable laws.

  (c) Unavailability of Stay. - The commencement of proceedings for
judicial review pursuant to this section shall not operate as a
stay of any action taken by the Director. Pending judicial review
of the action, the court shall not have jurisdiction to stay,
enjoin, or otherwise delay any supervisory action taken by the
Director with respect to an enterprise that is classified as
significantly or critically undercapitalized or any action of the
Director that results in the classification of an enterprise as
significantly or critically undercapitalized.

  (d) Limitation on Jurisdiction. - Except as provided in this
section, no court shall have jurisdiction to affect, by injunction
or otherwise, the issuance or effectiveness of any classification
or action of the Director under this subtitle (other than
appointment of a conservator under section 1366 or 1367 or action
under section 1369) or to review, modify, suspend, terminate, or
set aside such classification or action.

                SUBTITLE C - ENFORCEMENT PROVISIONS

SEC. 1371. CEASE-AND-DESIST PROCEEDINGS.

  (a) Grounds for Issuance Against Adequately Capitalized
Enterprises  . - The Director may issue and serve a notice of
charges under this section upon an enterprise that is classified
(for purposes of subtitle B) as adequately capitalized or upon any
executive officer or director of such an enterprise, if in the
determination of the Director, the enterprise, executive officer,
or director is engaging or has engaged, or the Director has
reasonable cause to believe that the enterprise, executive officer,
or director is about to engage, in -

      (1) any conduct that threatens to cause a significant
    depletion of the core capital of the enterprise;

      (2) any conduct or violation that may result in the issuance
    of an order described in subsection (d)(1); or

      (3) any conduct that violates -

          (A) any provision of this title, the Federal National
        Mortgage Association Charter Act, the Federal Home Loan
        Mortgage Corporation Act, or any order, rule, or regulation
        under any such title or Act, except that the Director may
        not enforce compliance with any housing goal established
        under subpart B of part 2 of subtitle A of this title, with
        section 1336 or 1337 of this title, or with subsection (m)
        or (n) of section 309 of the Federal National Mortgage
        Association Charter Act or subsection (e) or (f) of section
        307 of the Federal Home Loan Mortgage Corporation Act; or

          (B) any written agreement entered into by the enterprise
        with the Director.

  (b) Grounds for Issuance Against Undercapitalized, Significantly
Undercapitalized, and Critically Undercapitalized Enterprises. -
The Director may issue and serve a notice of charges under this
section upon an enterprise classified (for purposes of subtitle B)
as undercapitalized, significantly undercapitalized, or critically
undercapitalized, or any executive officer or director of any such
enterprise, if in the determination of the Director the enterprise,
executive officer, or director is engaging or has engaged, or the
Director has reasonable cause to believe that the enterprise,
executive officer, or director is about to engage, in -

      (1) any conduct likely to result in a material depletion of
    the core capital of the enterprise, or

      (2) any conduct or violation described in paragraph (2) or
    (3) of subsection (a),

except that the Director may not enforce compliance with any
housing goal established under subpart B of part 2 of subtitle A of
this title, with section 1336 or 1337 of this title, or with
subsection (m) or (n) of section 309 of the Federal National
Mortgage Association Charter Act or subsection (e) or (f) of
section 307 of the Federal Home Loan Mortgage Corporation Act.

  (c) Procedure. -

      (1) Notice of charges. - Each notice of charges under this
    section shall contain a statement of the facts constituting the
    alleged conduct or violation and shall fix a time and place at
    which a hearing will be held to determine on the record whether
    an order to cease and desist from such conduct or violation
    should issue.

      (2) Issuance of order. - If the Director finds on the record
    made at such hearing that any conduct or violation specified in
    the notice of charges has been established (or the enterprise
    consents pursuant to section 1373(a)(4)), the Director may
    issue and serve upon the enterprise, executive officer, or
    director an order requiring such party to cease and desist from
    any such conduct or violation and to take affirmative action to
    correct or remedy the conditions resulting from any such
    conduct or violation.

  (d) Affirmative Action To Correct Conditions Resulting From
Violations or Activities. - The authority under this section and
section 1372 to issue any order requiring an enterprise, executive
officer, or director to take affirmative action to correct or
remedy any condition resulting from any conduct or violation with
respect to which such order is issued includes the authority -

      (1) to require an executive officer or a director to make
    restitution to, or provide reimbursement, indemnification, or
    guarantee against loss to the enterprise to the extent that
    such person -

          (A) was unjustly enriched in connection with such conduct
        or violation; or

          (B) engaged in conduct or a violation that would subject
        such person to a civil penalty pursuant to section
        1376(b)(3);

      (2) to require an enterprise to seek restitution, or to
    obtain reimbursement, indemnification, or guarantee against
    loss;

      (3) to restrict the growth of the enterprise;

      (4) to require the enterprise to dispose of any asset
    involved;

      (5) to require the enterprise to rescind agreements or
    contracts;

      (6) to require the enterprise to employ qualified officers or
    employees (who may be subject to approval by the Director at
    the direction of the Director); and

      (7) to require the enterprise to take such other action as
    the Director determines appropriate.

  (e) Authority To Limit Activities. - The authority to issue an
order under this section or section 1372 includes the authority to
place limitations on the activities or functions of the enterprise
or any executive officer or director of the enterprise.

  (f) Effective Date. - An order under this section shall become
effective upon the expiration of the 30-day period beginning on the
service of the order upon the enterprise, executive officer, or
director concerned (except in the case of an order issued upon
consent, which shall become effective at the time specified
therein), and shall remain effective and enforceable as provided in
the order, except to the extent that the order is stayed, modified,
terminated, or set aside by action of the Director or otherwise, as
provided in this subtitle.

SEC. 1372. TEMPORARY CEASE-AND-DESIST ORDERS.

  (a) Grounds for Issuance and Scope. - Whenever the Director
determines that any conduct or violation, or threatened conduct or
violation, specified in the notice of charges served upon the
enterprise, executive officer, or director pursuant to section 1371
(a) or (b), or the continuation thereof, is likely -

      (1) to cause insolvency,

      (2) to cause a significant depletion of the core capital of
    the enterprise, or

      (3) otherwise to cause irreparable harm to the enterprise,

prior to the completion of the proceedings conducted pursuant to
section 1371(c), the Director may issue a temporary order requiring
the enterprise, executive officer, or director to cease and desist
from any such conduct or violation and to take affirmative action
to prevent or remedy such insolvency, depletion, or harm pending
completion of such proceedings.  Such order may include any
requirement authorized under section 1371(d).

  (b) Effective Date. - An order issued pursuant to subsection (a)
shall become effective upon service upon the enterprise, executive
officer, or director and, unless set aside, limited, or suspended
by a court in proceedings pursuant to subsection (d), shall remain
in effect and enforceable pending the completion of the proceedings
pursuant to such notice and shall remain effective until the
Director dismisses the charges specified in the notice or until
superseded by a cease-and-desist order issued pursuant to section
1371.

  (c) Incomplete or Inaccurate Records. -

      (1) Temporary order. - If a notice of charges served under
    section 1371 (a) or (b) specifies on the basis of particular
    facts and circumstances that the books and records of the
    enterprise served are so incomplete or inaccurate that the
    Director is unable, through the normal supervisory process, to
    determine the financial condition of the enterprise or the
    details or the purpose of any transaction or transactions that
    may have a material effect on the financial condition of that
    enterprise, the Director may issue a temporary order requiring
    -

          (A) the cessation of any activity or practice which gave
        rise, whether in whole or in part, to the incomplete or
        inaccurate state of the books or records; or

          (B) affirmative action to restore the books or records to
        a complete and accurate state.

      (2) Effective period. - Any temporary order issued under
    paragraph (1) -

          (A) shall become effective upon service; and

          (B) unless set aside, limited, or suspended by a court in
        proceedings pursuant to subsection (d), shall remain in
        effect and enforceable until the earlier of -

              (i) the completion of the proceeding initiated under
            section 1371 in connection with the notice of charges;
            or

              (ii) the date the Director determines, by examination
            or otherwise, that the books and records of the
            enterprise are accurate and reflect the financial
            condition of the enterprise.

  (d) Judicial Review. - An enterprise, executive officer, or
director that has been served with a temporary order pursuant to
this section may apply to the United States District Court for the
District of Columbia within 10 days after such service for an
injunction setting aside, limiting, or suspending the enforcement,
operation, or effectiveness of the order pending the completion of
the administrative proceedings pursuant to the notice of charges
served upon the enterprise, executive officer, or director under
section 1371 (a) or (b). Such court shall have jurisdiction to
issue such injunction.

  (e) Enforcement by Attorney General. - In the case of violation
or threatened violation of, or failure to obey, a temporary order
issued pursuant to this section, the Director may request the
Attorney General of the United States to bring an action in the
United States District Court for the District of Columbia for an
injunction to enforce such order or may, under the direction and
control of the Attorney General, bring such an action.  If the
court finds any such violation, threatened violation, or failure to
obey, the court shall issue such injunction.

SEC. 1373. HEARINGS.

  (a) Requirements. -

      (1) Venue and record  . - Any hearing under section 1371 or
1376(c) shall be held on the record and in the District of
Columbia.

      (2) Timing. - Any such hearing shall be fixed for a date not
    earlier than 30 days nor later than 60 days after service of
    the notice of charges under section 1371 or determination to
    impose a penalty under section 1376, unless an earlier or a
    later date is set by the hearing officer at the request of the
    party served.

      (3) Procedure  . - Any such hearing shall be conducted in
accordance with chapter 5 of title 5, United States Code.

      (4) Failure to appear. - If the party served fails to appear
    at the hearing through a duly authorized representative, such
    party shall be deemed to have consented to the issuance of the
    cease-and-desist order or the imposition of the penalty for
    which the hearing is held.

  (b) Issuance of Order  . -

      (1) In general. - After any such hearing, and within 90 days
    after the parties have been notified that the case has been
    submitted to the Director for final decision, the Director
    shall render the decision (which shall include findings of fact
    upon which the decision is predicated) and shall issue and
    serve upon each party to the proceeding an order or orders
    consistent with the provisions of this subtitle.

      (2) Modification. - Judicial review of any such order shall
    be exclusively as provided in section 1374. Unless such a
    petition for review is timely filed as provided in section
    1374, and thereafter until the record in the proceeding has
    been filed as so provided, the Director may at any time,
    modify, terminate, or set aside any such order, upon such
    notice and in such manner as the Director considers proper.
    Upon such filing of the record, the Director may modify,
    terminate, or set aside any such order with permission of the
    court.

SEC. 1374. JUDICIAL REVIEW.

  (a) Commencement. - Any party to a proceeding under section 1371
or 1376 may obtain review of any final order issued under such
section by filing in the United States Court of Appeals for the
District of Columbia Circuit, within 30 days after the date of
service of such order, a written petition praying that the order of
the Director be modified, terminated, or set aside.  The clerk of
the court shall transmit a copy of the petition to the Director.

  (b) Filing of Record. - Upon receiving a copy of a petition, the
Director shall file in the court the record in the proceeding, as
provided in section 2112 of title 28, United States Code.

  (c) Jurisdiction. - Upon the filing of a petition, such court
shall have jurisdiction, which upon the filing of the record by the
Director shall (except as provided in the last sentence of section
1373(b)(2)) be exclusive, to affirm, modify, terminate, or set
aside, in whole or in part, the order of the Director.

  (d) Review. - Review of such proceedings shall be governed by
chapter 7 of title 5, United States Code.

  (e) Order To Pay Penalty. - Such court shall have the authority
in any such review to order payment of any penalty imposed by the
Director under this subtitle.

  (f) No Automatic Stay. - The commencement of proceedings for
judicial review under this section shall not, unless specifically
ordered by the court, operate as a stay of any order issued by the
Director.

SEC. 1375. ENFORCEMENT AND JURISDICTION.

  (a) Enforcement. - The Director may request the Attorney General
of the United States to bring an action in the United States
District Court for the District of Columbia for the enforcement of
any effective notice or order issued under this subtitle or
subtitle B or may, under the direction and control of the Attorney
General, bring such an action.  Such court shall have jurisdiction
and power to order and require compliance herewith.

  (b) Limitation on Jurisdiction. - Except as otherwise provided in
this subtitle and sections 1369 and 1369D, no court shall have
jurisdiction to affect, by injunction or otherwise, the issuance or
enforcement of any notice or order under section 1371, 1372, or
1376, or subtitle B, or to review, modify, suspend, terminate, or
set aside any such notice or order.

SEC. 1376. CIVIL MONEY PENALTIES.

  (a) In General. - The Director may impose a civil money penalty
in accordance with this section on any enterprise, or any executive
officer or director of any enterprise, that -

      (1) violates any provision of this title, the Federal
    National Mortgage Association Charter Act, the Federal Home
    Loan Mortgage Corporation Act, or any order, rule, or
    regulation under any such title or Act, except that the
    Director may not enforce compliance with any housing goal
    established under subpart B of part 2 of subtitle A of this
    title, with section 1336 or 1337 of this title, or with
    subsection (m) or (n) of section 309 of the Federal National
    Mortgage Association Charter Act or subsection (e) or (f) of
    section 307 of the Federal Home Loan Mortgage Corporation Act;

      (2) violates any final or temporary order issued pursuant to
    section 1365, 1366, 1371, or 1372;

      (3) violates any written agreement between the enterprise and
    the Director; or

      (4) engages in any conduct that causes or is likely to cause
    a loss to the enterprise.

  (b) Amount of Penalty  . -

      (1) First tier  . - The Director may impose a penalty on an
enterprise for any violation described in paragraphs (1) through
(3) of subsection (a). The amount of a penalty under this paragraph
shall not exceed $5,000 for each day that a violation continues.

      (2) Second tier  . - The Director may impose a penalty on an
executive officer or director in an amount not to exceed $10,000,
or on an enterprise in an amount not to exceed $25,000, for each
day that a violation or conduct described in subsection (a)
continues, if the Director finds that the violation or conduct -

          (A) is part of a pattern of misconduct; or

          (B) involved recklessness and caused or would be likely
        to cause a material loss to the enterprise.

      (3) Third tier  . - The Director may impose a penalty on an
executive officer or director in an amount not to exceed $100,000,
or on an enterprise in an amount not to exceed $1,000,000, for each
day that a violation or conduct described in subsection (a)
continues, if the Director finds that the violation or conduct was
knowing and caused or would be likely to cause a substantial loss
to the enterprise.

  (c) Procedures. -

      (1) Establishment. - The Director shall establish standards
    and procedures governing the imposition of civil money
    penalties under subsections (a) and (b). Such standards and
    procedures -

          (A) shall provide for the Director to notify the
        enterprise in writing of the Director's determination to
        impose the penalty, which shall be made on the record;

          (B) shall provide for the imposition of a penalty only
        after the enterprise, executive officer, or director has
        been given an opportunity for a hearing on the record
        pursuant to section 1373; and

          (C) may provide for review by the Director of any
        determination or order, or interlocutory ruling, arising
        from a hearing.

      (2) Factors in determining amount of penalty. - In
    determining the amount of a penalty under this section, the
    Director shall give consideration to such factors as the
    gravity of the violation, any history of prior violations, the
    effect of the penalty on the safety and soundness of the
    enterprise, any injury to the public, any benefits received,
    and deterrence of future violations, and any other factors the
    Director may determine by regulation to be appropriate.

      (3) Review of imposition of penalty. - The order of the
    Director imposing a penalty under this section shall not be
    subject to review, except as provided in section 1374.

  (d) Action To Collect Penalty. - If an enterprise, executive
officer, or director fails to comply with an order of the Director
imposing a civil money penalty under this section, after the order
is no longer subject to review as provided under subsection (c)(1)
and section 1374, the Director may request the Attorney General of
the United States to bring an action in the United States District
Court for the District of Columbia to obtain a monetary judgment
against the enterprise, executive officer, or director and such
other relief as may be available, or may, under the direction and
control of the Attorney General, bring such an action.  The
monetary judgment may, in the discretion of the court, include any
attorneys fees and other expenses incurred by the United States in
connection with the action.  In an action under this subsection,
the validity and appropriateness of the order of the Director
imposing the penalty shall not be subject to review.

  (e) Settlement by Director. - The Director may compromise,
modify, or remit any civil money penalty which may be, or has been,
imposed under this section.

  (f) Availability of Other Remedies. - Any civil money penalty
under this section shall be in addition to any other available
civil remedy and may be imposed whether or not the Director imposes
other administrative sanctions.

  (g) Prohibition of Reimbursement or Indemnification. - An
enterprise may not reimburse or indemnify any individual for any
penalty imposed under subsection (b)(3).

  (h) Deposit of Penalties. - The Director shall deposit any civil
money penalties collected under this section into the general fund
of the Treasury.

  (i) Applicability. - A penalty under this section may be imposed
only for conduct or violations under subsection (a) occurring after
the date of the enactment of this Act.

SEC. 1377. NOTICE AFTER SEPARATION FROM SERVICE.

  The resignation, termination of employment or participation, or
separation of a director or executive officer of an enterprise
shall not affect the jurisdiction and authority of the Director to
issue any notice and proceed under this subtitle against any such
director or executive officer, if such notice is served before the
end of the 2-year period beginning on the date such director or
executive officer ceases to be associated with the enterprise.

SEC. 1378. PRIVATE RIGHTS OF ACTION.

  This title and the amendments made by this title shall not create
any private right of action on behalf of any person against an
enterprise, or any director or executive officer of an enterprise,
or impair any existing private right of action under other
applicable law.

SEC. 1379. PUBLIC DISCLOSURE OF FINAL ORDERS AND AGREEMENTS.

  (a) In General. - The Director shall make available to the public
-

      (1) any written agreement or other written statement for
    which a violation may be redressed by the Director or any
    modification to or termination thereof, unless the Director, in
    the Director's discretion, determines that public disclosure
    would be contrary to the public interest;

      (2) any order that is issued with respect to any
    administrative enforcement proceeding initiated by the Director
    under this subtitle and that has become final in accordance
    with sections 1373 and 1374; and

      (3) any modification to or termination of any final order
    made public pursuant to this subsection.

  (b) Hearings. - All hearings on the record with respect to any
notice of charges issued by the Director shall be open to the
public, unless the Director, in the Director's discretion,
determines that holding an open hearing would be contrary to the
public interest.

  (c) Delay of Public Disclosure Under Exceptional Circumstances. -
If the Director makes a determination in writing that the public
disclosure of any final order pursuant to subsection (a) would
seriously threaten the financial health or security of the
enterprise, the Director may delay the public disclosure of such
order for a reasonable time.

  (d) Documents Filed Under Seal in Public Enforcement Hearings. -
The Director may file any document or part thereof under seal in
any hearing commenced by the Director if the Director determines in
writing that disclosure thereof would be contrary to the public
interest.

  (e) Retention of Documents. - The Director shall keep and
maintain a record, for not less than 6 years, of all documents
described in subsection (a) and all enforcement agreements and
other supervisory actions and supporting documents issued with
respect to or in connection with any enforcement proceeding
initiated by the Director under this subtitle or any other law.

  (f) Disclosures to Congress. - This section may not be construed
to authorize the withholding, or to prohibit the disclosure, of any
information to the Congress or any committee or subcommittee
thereof.

SEC. 1379A. NOTICE OF SERVICE.

  Any service required or authorized to be made by the Director
under this subtitle may be made by registered mail, or in such
other manner reasonably calculated to give actual notice as the
Director may by regulation or otherwise provide.

SEC. 1379B. SUBPOENA AUTHORITY.

  (a) In General. - In the course of or in connection with any
administrative proceeding under this subtitle, the Director shall
have the authority -

      (1) to administer oaths and affirmations;

      (2) to take and preserve testimony under oath;

      (3) to issue subpoenas and subpoenas duces tecum; and

      (4) to revoke, quash, or modify subpoenas and subpoenas duces
    tecum issued by the Director.

  (b) Witnesses and Documents. - The attendance of witnesses and
the production of documents provided for in this section may be
required from any place in any State at any designated place where
such proceeding is being conducted.

  (c) Enforcement. - The Director may request the Attorney General
of the United States to bring an action in the United States
district court for the judicial district in which such proceeding
is being conducted, or where the witness resides or conducts
business, or the United States District Court for the District of
Columbia, for enforcement of any subpoena or subpoena duces tecum
issued pursuant to this section or may, under the direction and
control of the Attorney General, bring such an action.  Such courts
shall have jurisdiction and power to order and require compliance
therewith.

  (d) Fees and Expenses. - Witnesses subpoenaed under this section
shall be paid the same fees and mileage that are paid witnesses in
the district courts of the United States. Any court having
jurisdiction of any proceeding instituted under this section by an
enterprise may allow to any such party such reasonable expenses and
attorneys fees as the court deems just and proper.  Such expenses
and fees shall be paid by the enterprise or from its assets.

       SUBTITLE D - AMENDMENTS TO CHARTER ACTS OF ENTERPRISES

SEC. 1381. AMENDMENTS TO FEDERAL NATIONAL MORTGAGE ASSOCIATION
            CHARTER ACT.

  (a) Purposes. - Section 301 of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1716) is amended -

      (1) by striking 'home' each place it appears and inserting
    'residential';

      (2) in paragraph (3) -

          (A) by striking the parentheses and all the matter
        contained therein and inserting the following: '(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)'; and

          (B) by striking 'and' at the end;

      (3) by redesignating paragraph (4) as paragraph (5);

      (4) by inserting after paragraph (3) the following new
    paragraph:

      '(4) promote access to mortgage credit throughout the Nation
    (including central cities, rural areas, and underserved areas)
    by increasing the liquidity of mortgage investments and
    improving the distribution of investment capital available for
    residential mortgage financing; and'.

  (b) High Cost Areas  . - The last sentence of section 302(b)(2)
of the Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)) is amended by striking 'and Hawaii' and inserting
'Hawaii, and the Virgin Islands'.

  (c) Secretary's Approval Authority  . - Section 302(b) of the
Federal National Mortgage Association Charter Act (12 U.S.C.
1717(b)(2)) is amended -

      (1) in the first sentence of paragraph (2), by striking 'and
    with the approval of the Secretary of Housing and Urban
    Development,';

      (2) in the first sentence of paragraph (3), by striking ',
    with the approval of the Secretary of Housing and Urban
    Development,';

      (3) in the first sentence of paragraph (4), by striking ',
    with the approval of the Secretary of Housing and Urban
    Development,'; and

      (4) by adding at the end the following new paragraph:

  '(6) The corporation may not implement any new program (as such
term is defined in section 1303 of the Federal Housing Enterprises
Finan-cial Safety and Soundness Act of 1992) before obtaining the
approval of the Secretary under section 1322 of such Act.'.

  (d) Capitalization. - Section 303 of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1718) is amended -

      (1) in subsection (a), by inserting after the period at the
    end the following new sentence: 'The corporation may issue
    shares of common stock in return for appropriate payments into
    capital or capital and surplus.';

      (2) by striking subsections (b) and (c) and inserting the
    following new subsections:

  '(b)(1) The corporation may impose charges or fees, which may be
regarded as elements of pricing, with the objective that all costs
and expenses of the operations of the corporation should be within
its income derived from such operations and that such operations
should be fully self-supporting.

  '(2) All earnings from the operations of the corporation shall
annually be transferred to the general surplus account of the
corporation.  At any time, funds of the general surplus account
may, in the discretion of the board of directors, be transferred to
reserves.

  '(c)(1) Except as provided in paragraph (2), the corporation may
make such capital distributions (as such term is defined in section
1303 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992) as may be declared by the board of
directors.  All capital distributions shall be charged against the
general surplus account of the corporation.

  '(2) The corporation may not make any capital distribution that
would decrease the total capital of the corporation (as such term
is defined in section 1303 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992) to an amount less than
the risk-based capital level for the corporation established under
section 1361 of such Act or that would decrease the core capital of
the corporation (as such term is defined in section 1303 of such
Act) to an amount less than the minimum capital level for the
corporation established under section 1362 of such Act, without
prior written approval of the distribution by the Director of the
Office of Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development.';

      (3) in subsection (f) -

          (A) by striking 'to make payments' and all that follows
        through 'such capital contributions,'; and

          (B) by striking 'additional shares of such stock,' and
        inserting 'shares of common stock of the corporation'; and

      (4) by redesignating subsection (f) (as so amended) as
    subsection (d).

  (e) Ratio of Obligations. - Section 304 of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1719) is amended -

      (1) in subsection (b), by striking the semicolon in the first
    sentence and all that follows through the end of the second
    sentence and inserting a period; and

      (2) in subsection (e), by striking the fourth sentence.

  (f) Statement in Securities. - Section 304(d) of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1719(d)) is
amended by inserting after the period at the end the following new
sentence: 'The corporation shall insert appropriate language in all
of the securities issued under this subsection clearly indicating
that such securities, together with the interest thereon, are not
guaranteed by the United States and do not constitute a debt or
obligation of the United States or any agency or instrumentality
thereof other than the corporation.'.

  (g) Assessments for Office of Federal Housing Enterprise
Oversight. - The first sentence of section 304(f) of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1719(f)) is
amended by inserting before the first comma the following: 'of this
Act and assessments pursuant to section 1316 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992'.

  (h) Board of Directors. -

      (1) In general. - The second sentence of section 308(b) of
    the Federal National Mortgage Association Charter Act (12
    U.S.C. 1723(b)) is amended -

          (A) by striking 'and' after the second comma; and

          (B) by inserting before the period at the end the
        following: ', and at least one person from an organization
        that has represented consumer or community interests for
        not less than 2 years or one person who has demonstrated a
        career commitment to the provision of housing for
        low-income households'.

      (2) Implementation. - The amendments made by paragraph (1)
    shall apply to the first annual appointment by the President of
    members to the board of directors of the Federal National
    Mortgage Association that occurs after the date of the
    enactment of this Act.

  (i) Removal Authority of President. - The third sentence of
section 308(b) of the Federal National Mortgage Association Charter
Act (12 U.S.C. 1723(b)) is amended by inserting 'appointed' after
'any such'.

  (j) Compensation. - Section 309(d) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1723a(d)) is amended -

      (1) in the first sentence of paragraph (2) by striking 'as it
    may determine' and inserting the following: 'as the board of
    directors determines reasonable and comparable with
    compensation for employment in other similar businesses
    (including other publicly held financial institutions or major
    financial services companies) involving similar duties and
    responsibilities, except that a significant portion of
    potential compensation of all executive officers (as such term
    is defined in paragraph (3)(C)) of the corporation shall be
    based on the performance of the corporation'; and

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

  '(3)(A) Not later than June 30, 1993, and annually thereafter,
the corporation shall submit a report to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate on
(i) the comparability of the compensation policies of the
corporation with the compensation policies of other similar
businesses, (ii) in the aggregate, the percentage of total cash
compensation and payments under employee benefit plans (which shall
be defined in a manner consistent with the corporation's proxy
statement for the annual meeting of shareholders for the preceding
year) earned by executive officers of the corporation during the
preceding year that was based on the corporation's performance, and
(iii) the comparability of the corporation's financial performance
with the performance of other similar businesses.  The report shall
include a copy of the corporation's proxy statement for the annual
meeting of shareholders for the preceding year.

  '(B) Notwithstanding the first sentence of paragraph (2), after
the date of the enactment of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992, the corporation may not
enter into any agreement or contract to provide any payment of
money or other thing of current or potential value in connection
with the termination of employment of any executive officer of the
corporation, unless such agreement or contract is approved in
advance by the Director of the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban Development. The
Director may not approve any such agreement or contract unless the
Director determines that the benefits provided under the agreement
or contract are comparable to benefits under such agreements for
officers of other public and private entities involved in financial
services and housing interests who have comparable duties and
responsibilities.  For purposes of this subparagraph, any
renegotiation, amendment, or change after such date of enactment to
any such agreement or contract entered into on or before such date
of enactment shall be considered entering into an agreement or
contract.

  '(C) For purposes of this paragraph, the term 'executive officer'
has the meaning given the term in section 1303 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992.'.

  (k) General Regulatory Authority  . - Section 309 of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1723a) is
amended by striking subsections (h) and (i).

  (l) GAO Audits. - Section 309(j) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1723a(j)) is amended -

      (1) by inserting '(1)' after '(j)';

      (2) by striking the first sentence and inserting the
    following new sentence: 'The programs, activities, receipts,
    expenditures, and financial transactions of the corporation
    shall be subject to audit by the Comptroller General of the
    United States under such rules and regulations as may be
    prescribed by the Comptroller General.'; and

      (3) by adding at the end the following new paragraph:

  '(2) To carry out this subsection, the representatives of the
General Accounting Office shall have access, upon request to the
corporation or any auditor for an audit of the corporation under
subsection (l), to any books, accounts, financial records, reports,
files, or other papers, things, or property belonging to or in use
by the corporation and used in any such audit and to any papers,
records, files, and reports of the auditor used in such an audit.'.

  (m) Financial Reports to Director. - Section 309 of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1723a) is
amended by adding at the end the following new subsection:

  '(k)(1) The corporation shall submit to the Director of the
Office of Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development annual and quarterly reports of the
financial condition and operations of the corporation which shall
be in such form, contain such information, and be submitted on such
dates as the Director shall require.

  '(2) Each such annual report shall include -

      '(A) financial statements prepared in accordance with
    generally accepted accounting principles;

      '(B) any supplemental information or alternative presentation
    that the Director may require; and

      '(C) an assessment (as of the end of the corporation's most
    recent fiscal year), signed by the chief executive officer and
    chief accounting or financial officer of the corporation, of -

          '(i) the effectiveness of the internal control structure
        and procedures of the corporation; and

          '(ii) the compliance of the corporation with designated
        safety and soundness laws.

  '(3) The corporation shall also submit to the Director any other
reports required by the Director pursuant to section 1314 of the
Federal Housing Enterprises Financial Safety and Soundness Act of
1992.

  '(4) Each report of financial condition shall contain a
declaration by the president, vice president, treasurer, or any
other officer designated by the board of directors of the
corporation to make such declaration, that the report is true and
correct to the best of such officer's knowledge and belief.'.

  (n) Audits of Financial Statements  . - Section 309 of the
Federal National Mortgage Association Charter Act (12 U.S.C. 1723a)
is amended by adding after subsection (k) (as added by subsection
(m) of this section) the following new subsection:

  '(l)(1) The corporation shall have an annual independent audit
made of its financial statements by an independent public
accountant in accordance with generally accepted auditing
standards.

  '(2) In conducting an audit under this subsection, the
independent public accountant shall determine and report on whether
the financial statements of the corporation (A) are presented
fairly in accordance with generally accepted accounting principles,
and (B) to the extent determined necessary by the Director, comply
with any disclosure requirements imposed under subsection
(k)(2)(B).'.

  (o) Mortgage Data Collection and Reporting Requirements  . -
Section 309 of the Federal National Mortgage Association Charter
Act (12 U.S.C. 1723a) is amended by adding after subsection (l) (as
added by subsection (n) of this section) the following new
subsection:

  '(m)(1) The corporation shall collect, maintain, and provide to
the Secretary, in a form determined by the Secretary, data relating
to its mortgages on housing consisting of 1 to 4 dwelling units.
Such data shall include -

      '(A) the income, census tract location, race, and gender of
    mortgagors under such mortgages;

      '(B) the loan-to-value ratios of purchased mortgages at the
    time of origination;

      '(C) whether a particular mortgage purchased is newly
    originated or seasoned;

      '(D) the number of units in the housing subject to the
    mortgage and whether the units are owner-occupied; and

      '(E) any other characteristics that the Secretary considers
    appropriate, to the extent practicable.

  '(2) The corporation shall collect, maintain, and provide to the
Secretary, in a form determined by the Secretary, data relating to
its mortgages on housing consisting of more than 4 dwelling units.
Such data shall include -

      '(A) census tract location of the housing;

      '(B) income levels and characteristics of tenants of the
    housing (to the extent practicable);

      '(C) rent levels for units in the housing;

      '(D) mortgage characteristics (such as the number of units
    financed per mortgage and the amount of loans);

      '(E) mortgagor characteristics (such as nonprofit,
    for-profit, limited equity cooperatives);

      '(F) use of funds (such as new construction, rehabilitation,
    refinancing);

      '(G) type of originating institution; and

      '(H) any other information that the Secretary considers
    appropriate, to the extent practicable.

  '(3)(A) Except as provided in subparagraph (B), this subsection
shall apply only to mortgages purchased by the corporation after
December 31, 1992.

  '(B) This subsection shall apply to any mortgage purchased by the
corporation after the date determined under subparagraph (A) if the
mortgage was originated before such date, but only to the extent
that the data referred in paragraph (1) or (2), as applicable, is
available to the corporation.'.

  (p) Report on Housing Activities  . - Section 309 of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1723a) is
amended by adding after subsection (m) (as added by subsection (o)
of this section) the following new subsection:

  '(n)(1) The corporation shall submit to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives, the
Committee on Banking, Housing, and Urban Affairs of the Senate, and
the Secretary a report on its activities under subpart B of part 2
of subtitle A of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992.

  '(2) The report under this subsection shall -

      '(A) include, in aggregate form and by appropriate category,
    statements of the dollar volume and number of mortgages on
    owner-occupied and rental properties purchased which relate to
    each of the annual housing goals established under such
    subpart;

      '(B) include, in aggregate form and by appropriate category,
    statements of the number of families served by the corporation,
    the income class, race, and gender of homebuyers served, the
    income class of tenants of rental housing (to the extent such
    information is available), the characteristics of the census
    tracts, and the geographic distribution of the housing
    financed;

      '(C) include a statement of the extent to which the mortgages
    purchased by the corporation have been used in conjunction with
    public subsidy programs under Federal law;

      '(D) include statements of the proportion of mortgages on
    housing consisting of 1 to 4 dwelling units purchased by the
    corporation that have been made to first-time homebuyers, as
    soon as providing such data is practicable, and identifying any
    special programs (or revisions to conventional practices)
    facilitating homeownership opportunities for first-time
    homebuyers;

      '(E) include, in aggregate form and by appropriate category,
    the data provided to the Secretary under subsection (m)(1)(B);

      '(F) compare the level of securitization versus portfolio
    activity;

      '(G) assess underwriting standards, business practices,
    repurchase requirements, pricing, fees, and procedures, that
    affect the purchase of mortgages for low- and moderate-income
    families, or that may yield disparate results based on the race
    of the borrower, including revisions thereto to promote
    affordable housing or fair lending;

      '(H) describe trends in both the primary and secondary
    multifamily housing mortgage markets, including a description
    of the progress made, and any factors impeding progress toward
    standardization and securitization of mortgage products for
    multifamily housing;

      '(I) describe trends in the delinquency and default rates of
    mortgages secured by housing for low- and moderate-income
    families that have been purchased by the corporation, including
    a comparison of such trends with delinquency and default
    information for mortgage products serving households with
    incomes above the median level that have been purchased by the
    corporation, and evaluate the impact of such trends on the
    standards and levels of risk of mortgage products serving low-
    and moderate-income families;

      '(J) describe in the aggregate the seller and servicer
    network of the corporation, including the volume of mortgages
    purchased from minority-owned, women-owned, and
    community-oriented lenders, and any efforts to facilitate
    relationships with such lenders;

      '(K) describe the activities undertaken by the corporation
    with nonprofit and for-profit organizations and with State and
    local governments and housing finance agencies, including how
    the corporation's activities support the objectives of
    comprehensive housing affordability strategies under section
    105 of the Cranston-Gonzalez National Affordable Housing Act;
    and

      '(L) include any other information that the Secretary
    considers appropriate.

  '(3)(A) The corporation shall make each report under this
subsection available to the public at the principal and regional
offices of the corporation.

  '(B) Before making a report under this subsection available to
the public, the corporation may exclude from the report information
that the Secretary has determined is proprietary information under
section 1326 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992.'.

  (q) Housing Advisory Council  . - Section 309 of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1723a) is
amended by adding after subsection (n) (as added by subsection (p)
of this section) the following new subsection:

  '(o)(1) Not later than 4 months after the date of enactment of
the Federal Housing Enterprises Financial Safety and Soundness Act
of 1992, the corporation shall appoint an Affordable Housing
Advisory Council to advise the corporation regarding possible
methods for promoting affordable housing for low- and
moderate-income families.

  '(2) The Affordable Housing Advisory Council shall consist of 15
individuals, who shall include representatives of community-based
and other nonprofit and for-profit organizations and State and
local government agencies actively engaged in the promotion,
development, or financing of housing for low- and moderate-income
families.'.

  (r) Stock Issuances. - The second sentence of section 311 of the
Federal National Mortgage Association Charter Act (12 U.S.C. 1723c)
is amended by striking all that follows 'Commission' and inserting
a period.

  (s) Technical Amendments. -

      (1) Section 302(c) of the Federal National Mortgage
    Association Charter Act (12 U.S.C. 1717(c)) is amended -

          (A) in paragraph (2) -

              (i) in the first sentence following subparagraph (F),
            by striking 'him' and inserting 'the trustor'; and

              (ii) in the last sentence, by striking 'his' each
            place it appears and inserting 'the trustor's'; and

          (B) in paragraph (3), by striking 'he' each place it
        appears and inserting 'the trustor'.

      (2) Section 304(c) of the Federal National Mortgage
    Association Charter Act (12 U.S.C. 1719(c)) is amended -

          (A) by striking 'his' each place it appears and inserting
        'the Secretary's'; and

          (B) in the fourth sentence -

              (i) by striking 'he' and inserting 'the Secretary';
            and

              (ii) by striking 'him' and inserting 'the Secretary'.

      (3) Section 309 of the Federal National Mortgage Association
    Charter Act (12 U.S.C. 1723a) is amended -

          (A) in subsection (d)(2) -

              (i) in the third sentence, by striking 'his
            employment' each place it appears and inserting 'the
            employment of such officer or employee'; and

              (ii) in the last sentence, by striking 'his basic
            pay' and inserting 'the basic pay of such person'; and

          (B) in subsection (e), by striking 'he or it' and
        inserting 'the individual, association, partnership, or
        corporation'.

SEC. 1382. AMENDMENTS TO FEDERAL HOME LOAN MORTGAGE CORPORATION
            ACT.

  (a) Purposes  . - Section 301(b) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1451 note) is amended -

      (1) by striking 'home' each place it appears in paragraphs
    (1) and (3) and inserting 'residential';

      (2) by striking 'and' at the end of paragraph (2);

      (3) in paragraph (3) -

          (A) by striking the parentheses and all the matter
        contained therein and inserting the following: '(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)'; and

          (B) by striking the period at the end and inserting ';
        and'; and

      (4) by adding at the end the following new paragraph:

      '(4) to promote access to mortgage credit throughout the
    Nation (including central cities, rural areas, and underserved
    areas) by increasing the liquidity of mortgage investments and
    improving the distribution of investment capital available for
    residential mortgage financing.'.

  (b) Definitions. - The third sentence of section 302(h) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451(h)) is
amended by striking 'made' and all that follows through '305(a)(1)'
and inserting 'purchased from any public utility carrying out
activities in accordance with the requirements of title II of the
National Energy Conservation Policy Act if the residential mortgage
to be purchased is a loan or advance of credit the original
proceeds of which are applied for in order to finance the purchase
and installation of residential energy conservation measures (as
defined in section 210(11) of the National Energy Conservation
Policy Act) in residential real estate'.

  (c) Board of Directors. -

      (1) In general  . - The second sentence of section
303(a)(2)(A) of the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1452(a)(2)(A)) is amended -

          (A) by striking 'and' after the second comma; and

          (B) by inserting before the period at the end the
        following: ', and at least 1 person from an organization
        that has represented consumer or community interests for
        not less than 2 years or 1 person who has demonstrated a
        career commitment to the provision of housing for
        low-income households'.

      (2) Implementation. - The amendments made by paragraph (1)
    shall apply to the first annual appointment by the President of
    members to the Board of Directors of the Federal Home Loan
    Mortgage Corporation that occurs after the date of the
    enactment of this Act.

  (d) Removal Authority of President. - Section 303(a)(2)(B) of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1452(a)(2)(B)) is amended by inserting before the period at the end
the following: ', except that any appointed member may be removed
from office by the President for good cause'.

  (e) General Regulatory Authority. - Section 303(b) of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1452(b)) is amended
to read as follows:

  '(b)(1) Except as provided in paragraph (2), the Corporation may
make such capital distributions (as such term is defined in section
1303 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992) as may be declared by the Board of
Directors.

  '(2) The Corporation may not make any capital distribution that
would decrease the total capital of the Corporation (as such term
is defined in section 1303 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992) to an amount less than
the risk-based capital level for the Corporation established under
section 1361 of such Act or that would decrease the core capital of
the Corporation (as such term is defined in section 1303 of such
Act) to an amount less than the minimum capital level for the
Corporation established under section 1362 of such Act, without
prior written approval of the distribution by the Director of the
Office of Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development.'.

  (f) Compensation. - Section 303 of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1452) is amended -

      (1) in clause (9) of the first sentence of subsection (c), by
    inserting after 'agents' the following: 'as the Board of
    Directors determines reasonable and comparable with
    compensation for employment in other similar businesses
    (including publicly held financial institutions or other major
    financial services companies) involving similar duties and
    responsibilities, except that a significant portion of
    potential compensation of all executive officers (as such term
    is defined in subsection (h)(3)) of the Corporation shall be
    based on the performance of the Corporation'; and

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

  '(h)(1) Not later than June 30, 1993, and annually thereafter,
the Corporation shall submit a report to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate on
(A) the comparability of the compensation policies of the
Corporation with the compensation policies of other similar
businesses, (B) in the aggregate, the percentage of total cash
compensation and payments under employee benefit plans (which shall
be defined in a manner consistent with the Corporation's proxy
statement for the annual meeting of shareholders for the preceding
year) earned by executive officers of the Corporation during the
preceding year that was based on the Corporation's performance, and
(C) the comparability of the Corporation's financial performance
with the performance of other similar businesses.  The report shall
include a copy of the Corporation's proxy statement for the annual
meeting of shareholders for the preceding year.

  '(2) Notwithstanding the first sentence of subsection (c), after
the date of the enactment of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992, the Corporation may not
enter into any agreement or contract to provide any payment of
money or other thing of current or potential value in connection
with the termination of employment of any executive officer of the
Corporation, unless such agreement or contract is approved in
advance by the Director of the Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban Development. The
Director may not approve any such agreement or contract unless the
Director determines that the benefits provided under the agreement
or contract are comparable to benefits under such agreements for
officers of other public and private entities involved in financial
services and housing interests who have comparable duties and
responsibilities.  For purposes of this paragraph, any
renegotiation, amendment, or change after such date of enactment to
any such agreement or contract entered into on or before such date
of enactment shall be considered entering into an agreement or
contract.

  '(3) For purposes of this subsection, the term 'executive
officer' has the meaning given the term in section 1303 of the
Federal Housing Enterprises Financial Safety and Soundness Act of
1992.'.

  (g) Powers of Corporation  . - Section 303(c) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1452(c)) is amended by
striking the second sentence.

  (h) Repeal of Prohibition on Prejudgment Attachment  . - Section
303(f) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1452(f)) is amended by striking the last sentence.

  (i) Capital Stock. - Section 304 of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1453) is amended -

      (1) by striking subsections (b), (c), and (d);

      (2) in subsection (a)(1), by striking '(1) The common stock'
    and all that follows and inserting the following: 'The common
    stock of the Corporation shall consist of voting common stock,
    which shall be issued to such holders in the manner and amount,
    and subject to any limitations on concentration of ownership,
    as may be established by the Corporation.'; and

      (3) in subsection (a)(2) -

          (A) in the first sentence, by striking 'nonvoting common
        stock and the';

          (B) by striking the last sentence; and

          (C) by striking the paragraph designation and inserting
        '(b)'.

  (j) Mortgage Sellers. - Section 305(a)(1) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(1)) is amended -

      (1) in the first sentence, by striking 'from any Federal home
    loan bank' and all that follows through the end of the sentence
    and inserting a period; and

      (2) in the second sentence, by striking ', and the servicing'
    and all that follows through the end of the sentence and
    inserting a period.

  (k) High Cost Areas  . - The last sentence of section 305(a)(2)
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1454(a)(2)) is amended by striking 'and Hawaii' and inserting
'Hawaii, and the Virgin Islands'.

  (l) Repeal of Prohibition on Mortgage Limitations. - Section 305
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454)
is amended by striking subsection (c).

  (m) Prior Approval of Secretary for New Programs  . - Section 305
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454)
is amended by inserting after subsection (b) the following new
subsection:

  '(c) The Corporation may not implement any new program (as such
term is defined in section 1303 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992) before obtaining the
approval of the Secretary under section 1322 of such Act.'.

  (n) Obligations and Securities and Assessments for Office. -
Section 306 of the Federal Home Loan Mortgage Corporation (12
U.S.C. 1455) is amended -

      (1) in subsection (h) -

          (A) by inserting '(1)' after '(h)'; and

          (B) by adding at the end the following new paragraph:

  '(2) The Corporation shall insert appropriate language in all of
the obligations and securities of the Corporation issued under this
section and section 305 clearly indicating that such obligations
and securities, together with the interest thereon, are not
guaranteed by the United States and do not constitute a debt or
obligation of the United States or any agency or instrumentality
thereof other than the Corporation.'; and

      (2) in the first sentence of subsection (i), by striking
    'section 303(c) or 306(c)' and inserting the following:
    'sections 303(c) and 1316(c) of this Act and assessments
    pursuant to section 106 of the Federal Housing Enterprises
    Financial Safety and Soundness Act of 1992'.

  (o) GAO Audits. - Section 307(b) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1456(b)) is amended -

      (1) by inserting '(1)' after '(b)';

      (2) by striking the first sentence and inserting the
    following new sentence: 'The programs, activities, receipts,
    expenditures, and financial transactions of the Corporation
    shall be subject to audit by the Comptroller General of the
    United States under such rules and regulations as may be
    prescribed by the Comptroller General.'; and

      (3) by adding at the end the following new paragraph:

  '(2) To carry out this subsection, the representatives of the
General Accounting Office shall have access, upon request to the
Corporation or any auditor for an audit of the Corporation under
subsection (d), to any books, accounts, financial records, reports,
files, or other papers, things, or property belonging to or in use
by the Corporation and used in any such audit and to any papers,
records, files, and reports of the auditor used in such an audit.'.

  (p) Financial Reports to Director. - Section 307 of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is amended by
adding at the end the following new subsection:

  '(c)(1) The Corporation shall submit to the Director of the
Office of Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development annual and quarterly reports of the
financial condition and operations of the Corporation which shall
be in such form, contain such information, and be submitted on such
dates as the Director shall require.

  '(2) Each such annual report shall include -

      '(A) financial statements prepared in accordance with
    generally accepted accounting principles;

      '(B) any supplemental information or alternative presentation
    that the Director may require; and

      '(C) an assessment (as of the end of the Corporation's most
    recent fiscal year), signed by the chief executive officer and
    chief accounting or financial officer of the Corporation, of -

          '(i) the effectiveness of the internal control structure
        and procedures of the Corporation; and

          '(ii) the compliance of the Corporation with designated
        safety and soundness laws.

  '(3) The Corporation shall also submit to the Director any other
reports required by the Director pursuant to section 1314 of the
Federal Housing Enterprises Financial Safety and Soundness Act of
1992.

  '(4) Each report of financial condition shall contain a
declaration by the president, vice president, treasurer, or any
other officer designated by the Board of Directors of the
Corporation to make such declaration, that the report is true and
correct to the best of such officer's knowledge and belief.'.

  (q) Audits of Financial Statements  . - Section 307 of the
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is
amended by adding after subsection (c) (as added by subsection (p)
of this section) the following new subsection:

  '(d)(1) The Corporation shall have an annual independent audit
made of its financial statements by an independent public
accountant in accordance with generally accepted auditing
standards.

  '(2) In conducting an audit under this subsection, the
independent public accountant shall determine and report on whether
the financial statements of the Corporation (A) are presented
fairly in accordance with generally accepted accounting principles,
and (B) to the extent determined necessary by the Director, comply
with any disclosure requirements imposed under subsection
(c)(2)(B).'.

  (r) Mortgage Data Collection and Reporting Requirements  . -
Section 307 of the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1456) is amended by adding after subsection (d) (as added by
subsection (q) of this section) the following new subsection:

  '(e)(1) The Corporation shall collect, maintain, and provide to
the Secretary, in a form determined by the Secretary, data relating
to its mortgages on housing consisting of 1 to 4 dwelling units.
Such data shall include -

      '(A) the income, census tract location, race, and gender of
    mortgagors under such mortgages;

      '(B) the loan-to-value ratios of purchased mortgages at the
    time of origination;

      '(C) whether a particular mortgage purchased is newly
    originated or seasoned;

      '(D) the number of units in the housing subject to the
    mortgage and whether the units are owner-occupied; and

      '(E) any other characteristics that the Secretary considers
    appropriate, to the extent practicable.

  '(2) The Corporation shall collect, maintain, and provide to the
Secretary, in a form determined by the Secretary, data relating to
its mortgages on housing consisting of more than 4 dwelling units.
Such data shall include -

      '(A) census tract location of the housing;

      '(B) income levels and characteristics of tenants of the
    housing (to the extent practicable);

      '(C) rent levels for units in the housing;

      '(D) mortgage characteristics (such as the number of units
    financed per mortgage and the amount of loans);

      '(E) mortgagor characteristics (such as nonprofit,
    for-profit, limited equity cooperatives);

      '(F) use of funds (such as new construction, rehabilitation,
    refinancing);

      '(G) type of originating institution; and

      '(H) any other information that the Secretary considers
    appropriate, to the extent practicable.

  '(3)(A) Except as provided in subparagraph (B), this subsection
shall apply only to mortgages purchased by the Corporation after
December 31, 1992.

  '(B) This subsection shall apply to any mortgage purchased by the
Corporation after the date determined under subparagraph (A) if the
mortgage was originated before such date, but only to the extent
that the data referred in paragraph (1) or (2), as applicable, is
available to the Corporation.'.

  (s) Report on Housing Activities  . - Section 307 of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1456) is amended by
adding after subsection (e) (as added by subsection (r) of this
section) the following new subsection:

  '(f)(1) The Corporation shall submit to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives, the
Committee on Banking, Housing, and Urban Affairs of the Senate, and
the Secretary a report on its activities under subpart B of part 2
of subtitle A of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992.

  '(2) The report under this subsection shall -

      '(A) include, in aggregate form and by appropriate category,
    statements of the dollar volume and number of mortgages on
    owner-occupied and rental properties purchased which relate to
    each of the annual housing goals established under such
    subpart;

      '(B) include, in aggregate form and by appropriate category,
    statements of the number of families served by the Corporation,
    the income class, race, and gender of homebuyers served, the
    income class of tenants of rental housing (to the extent such
    information is available), the characteristics of the census
    tracts, and the geographic distribution of the housing
    financed;

      '(C) include a statement of the extent to which the mortgages
    purchased by the Corporation have been used in conjunction with
    public subsidy programs under Federal law;

      '(D) include statements of the proportion of mortgages on
    housing consisting of 1 to 4 dwelling units purchased by the
    Corporation that have been made to first-time homebuyers, as
    soon as providing such data is practicable, and identifying any
    special programs (or revisions to conventional practices)
    facilitating homeownership opportunities for first-time
    homebuyers;

      '(E) include, in aggregate form and by appropriate category,
    the data provided to the Secretary under subsection (e)(1)(B);

      '(F) compare the level of securitization versus portfolio
    activity;

      '(G) assess underwriting standards, business practices,
    repurchase requirements, pricing, fees, and procedures, that
    affect the purchase of mortgages for low- and moderate-income
    families, or that may yield disparate results based on the race
    of the borrower, including revisions thereto to promote
    affordable housing or fair lending;

      '(H) describe trends in both the primary and secondary
    multifamily housing mortgage markets, including a description
    of the progress made, and any factors impeding progress, toward
    standardization and securitization of mortgage products for
    multifamily housing;

      '(I) describe trends in the delinquency and default rates of
    mortgages secured by housing for low- and moderate-income
    families that have been purchased by the Corporation, including
    a comparison of such trends with delinquency and default
    information for mortgage products serving households with
    incomes above the median level that have been purchased by the
    Corporation, and evaluate the impact of such trends on the
    standards and levels of risk of mortgage products serving low-
    and moderate-income families;

      '(J) describe in the aggregate the seller and servicer
    network of the Corporation, including the volume of mortgages
    purchased from minority-owned, women-owned, and
    community-oriented lenders, and any efforts to facilitate
    relationships with such lenders;

      '(K) describe the activities undertaken by the Corporation
    with nonprofit and for-profit organizations and with State and
    local governments and housing finance agencies, including how
    the Corporation's activities support the objectives of
    comprehensive housing affordability strategies under section
    105 of the Cranston-Gonzalez National Affordable Housing Act;
    and

      '(L) include any other information that the Secretary
    considers appropriate.

  '(3)(A) The Corporation shall make each report under this
subsection available to the public at the principal and regional
offices of the Corporation.

  '(B) Before making a report under this subsection available to
the public, the Corporation may exclude from the report information
that the Secretary has determined is proprietary information under
section 1326 of the Federal Housing Enterprises Financial Safety
and Soundness Act of 1992.'.

  (t) Housing Advisory Council  . - Section 307 of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1456) is amended by adding
after subsection (f) (as added by subsection (s) of this section)
the following new subsection:

  '(g)(1) Not later than 4 months after the date of enactment of
the Federal Housing Enterprises Financial Safety and Soundness Act
of 1992, the Corporation shall appoint an Affordable Housing
Advisory Council to advise the Corporation regarding possible
methods for promoting affordable housing for low- and
moderate-income families.

  '(2) The Affordable Housing Advisory Council shall consist of 15
individuals, who shall include representatives of community-based
and other nonprofit and for-profit organizations and State and
local government agencies actively engaged in the promotion,
development, or financing of housing for low- and moderate-income
families.'.

SEC. 1383. IMPLEMENTATION.

  (a) In General. - The Secretary of Housing and Urban Development
and the Director, as appropriate, shall issue any final regulations
necessary to implement the amendments made by this subtitle not
later than the expiration of the 18-month period beginning on the
date of the enactment of this Act.

  (b) Notice and Comment. - The regulations under this section
shall be issued after notice and opportunity for public comment
pursuant to the provisions of section 553 of title 5, United States
Code.

      SUBTITLE E - REGULATION OF FEDERAL HOME LOAN BANK SYSTEM

SEC. 1391. PRIMACY OF FINANCIAL SAFETY AND SOUNDNESS FOR FEDERAL
            HOUSING FINANCE BOARD.

  Section 2A(a)(3) of the Federal Home Loan Bank Act (12 U.S.C.
1422a(a)(3)) is amended to read as follows:

  '(3) Duties. -

      '(A) Safety and soundness. - The primary duty of the Board
    shall be to ensure that the Federal Home Loan Banks operate in
    a financially safe and sound manner.

      '(B) Other duties. - To the extent consistent with
    subparagraph (A), the duties of the Board shall also be -

          '(i) to supervise the Federal Home Loan Banks;

          '(ii) to ensure that the Federal Home Loan Banks carry
        out their housing finance mission; and

          '(iii) to ensure that the Federal Home Loan Banks remain
        adequately capitalized and able to raise funds in the
        capital markets.'.

SEC. 1392. ADVANCES UNDER FEDERAL HOME LOAN BANK ACT.

  (a) Advances to Nonqualified Thrift Lender Members  . - Section
10(e)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1430(e)(2))
is amended by striking the second sentence and inserting the
following new sentence: 'The aggregate amount of the advances by
the Federal Home Loan Bank System to members that are not qualified
thrift lenders shall not exceed 30 percent of the total advances of
the Federal Home Loan Bank System.'.

  (b) Exception to Requirements for Advances  . - Section 10b of
the Federal Home Loan Bank Act (12 U.S.C. 1430b) is amended -

      (1) in the first sentence, by inserting before 'Each' the
    following new subsection designation and heading: '(a) In
    General  . - '; and

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

  '(b) Exception  . - An advance made to a State housing finance
agency for the purpose of facilitating mortgage lending that
benefits individuals and families that meet the income requirements
set forth in section 142(d) or 143(f) of the Internal Revenue Code
of 1986, need not be collateralized by a mortgage insured under
title II of the National Housing Act or otherwise, if -

      '(1) such advance otherwise meets the requirements of this
    subsection; and

      '(2) such advance meets the requirements of section 10(a) of
    this Act, and any real estate collateral for such loan
    comprises single family or multifamily residential mortgages.'.

SEC. 1393. STUDIES REGARDING FEDERAL HOME LOAN BANK SYSTEM.

  (a) In General. - The Federal Housing Finance Board, the
Comptroller General of the United States, the Director of the
Congressional Budget Office, and the Secretary of Housing and Urban
Development shall each conduct a study analyzing and making
appropriate recommendations with respect to the following topics:

      (1) The appropriate capital standards for the Federal Home
    Loan Bank System.

      (2) The relationship between the capital standards for the
    Federal Home Loan Bank System and the capital standards under
    this title for the Federal National Mortgage Association and
    the Federal Home Loan Mortgage Corporation.

      (3) The relationship between the capital standards for
    federally insured depository institutions and the capital
    standards under this title for the Federal National Mortgage
    Association and the Federal Home Loan Mortgage Corporation.

      (4) The advantages and disadvantages of expanding credit
    products and services for member institutions of the Federal
    Home Loan Bank System, including a determination of the
    feasibility of Federal Home Loan Banks (A) purchasing
    housing-related assets from member institutions, (B) providing
    credit enhancements and other products to members in addition
    to making advances, and (C) making direct loans for housing
    construction.

      (5) The advantages and disadvantages of expanding eligible
    collateral for advances to member institutions of the Federal
    Home Loan Bank System by removing the limits on the amount of
    housing-related assets that member institutions can use to
    collateralize advances.

      (6) The advantages and disadvantages of further measures to
    expand the role of the Federal Home Loan Bank System as a
    support mechanism for community-based lenders and to reinforce
    the overall role of the System in housing finance.

      (7) The advantages and disadvantages of measures to increase
    membership in, and increase the profitability of, the System by
    modifying -

          (A) restrictions on membership and stock purchases of
        nonqualified thrift lenders;

          (B) the overall advance limit imposed on the Federal Home
        Loan Bank System to nonqualified thrift lenders; and

          (C) the membership requirement for qualified thrift
        lenders.

      (8) The competitive effect of the mortgage activities of the
    Federal National Mortgage Association and the Federal Home Loan
    Mortgage Corporation on the home mortgage activities of
    federally insured depository institutions and the cost of such
    activities to such institutions, the Savings Association
    Insurance Fund, and the Resolution Trust Corporation.

      (9) The likelihood that the Federal Home Loan Banks will be
    able to continue to pay the amounts required under the
    Financial Institutions Reform, Recovery, and Enforcement Act of
    1989.

      (10) The extent to which a reduction in the number of Federal
    Home Loan Banks would reduce noninterest costs of the System.

      (11) The impact that a reduction in the number of Federal
    Home Loan Banks would have on the effectiveness of affordable
    housing programs and community support programs under the
    Federal Home Loan Bank System.

      (12) The impact that a reduction in the number of Federal
    Home Loan Banks would have on the availability of affordable
    housing in rural areas and the ability of small rural financial
    institutions to provide housing financing.

      (13) The current and prospective impact of the Federal Home
    Loan Bank System on -

          (A) the availability and affordability of housing for
        low- and moderate-income households; and

          (B) the relative availability of housing credit across
        geographic areas, with particular regard to differences
        depending on whether properties are inside or outside of
        central cities.

      (14) The appropriateness of extending to the Federal Home
    Loan Bank System the public purposes and housing goals
    established for the Federal National Mortgage Association and
    the Federal Home Loan Mortgage Corporation under this title,
    the Federal National Mortgage Association Charter Act, and the
    Federal Home Loan Mortgage Corporation Act.

  (b) Reports. - Not later than 6 months after the date of the
enactment of this Act, the Federal Housing Finance Board, the
Comptroller General, the Director of the Congressional Budget
Office, and the Secretary of Housing and Urban Development shall
each submit to the Committee on Banking, Finance and Urban Affairs
of the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a report on the studies
required under subsection (a) containing any recommendations for
legislative action based on the results of the studies.

  (c) Comments. - The Secretary of the Treasury, the Director of
the Office of Federal Housing Enterprise Oversight, the Federal
Home Loan Mortgage Corporation, and the Federal National Mortgage
Association shall each submit to the Committee on Banking, Finance
and Urban Affairs of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate any
recommendations and opinions regarding the studies under subsection
(a), to the extent that the recommendations and views of such
officers and entities differ from the recommendations and opinions
of the Federal Housing Finance Board, the Comptroller General, the
Director of Congressional Budget Office, and the Secretary of
Housing and Urban Development.

  (d) Definition. - For purposes of this section, the term
'housing-related assets' means residential mortgages, residential
mortgage-related securities, loans or loan participations secured
by residential real estate, housing production loans, and warehouse
lines of credit for residential mortgage banking activities.

SEC. 1394. REPORT OF FEDERAL HOME LOAN BANK MEMBERS.

  (a) In General  . - The Federal Home Loan Banks shall establish a
committee to be known as the Study Committee. The Study Committee
shall be comprised of 24 members, of whom 2 shall be elected by the
Board of Directors of each Federal Home Loan Bank from among
officers or directors of stockholder institutions of the Federal
Home Loan Bank. Each Federal Home Loan Bank shall elect members to
the Study Committee not later than 45 days after the date of the
enactment of this Act.

  (b) Study and Report  . - The Study Committee referred to in
subsection (a) shall conduct a study on the topics referred to in
section 1391(a) and on the costs and benefits of consolidation of
the Federal Home Loan Bank System. Not later than 6 months after
the date of the enactment of this Act, the Study Committee shall
submit a report to the Committee on Banking, Finance and Urban
Affairs of the House of Representatives, the Committee on Banking,
Housing, and Urban Affairs of the Senate, the Federal Housing
Finance Board, and the presidents of the Federal Home Loan Banks on
its findings, including any recommendations for legislative or
administrative action, together with any minority views or
recommendations.

SEC. 1395. REPORTS REGARDING CONSOLIDATION OF FEDERAL HOME LOAN
            BANK SYSTEM.

  Not later than 6 months after the date of the enactment of this
Act, the Board of Directors of each Federal Home Loan Bank shall
submit to the Committee on Banking, Finance and Urban Affairs of
the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate a report of the directors'
evaluation of the costs and benefits of consolidating the Federal
Home Loan Bank System.