To require the Inspector General of the Federal Housing Finance Agency to submit quarterly reports to the Congress during the conservatorship of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

Summary: Fannie Mae and Freddie Mac Accountability and Transparency for Taxpayers Act of 2011 - Directs the Inspector General (IG) of the Federal Housing Finance Agency to submit quarterly reports to Congress on the IG's activities with respect to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) and their activities and condition while they are in conservatorship status.

Amends the Housing and Community Development Act of 1992 to give the Federal Housing Finance Agency IG: (1) direct hire authority; and (2) law enforcement authority exempt from the condition that the Attorney General make an initial determination of the IG's eligibility to exercise such authority.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fannie Mae and Freddie Mac 
Accountability and Transparency for Taxpayers Act of 2011''.

SEC. 2. QUARTERLY REPORTS DURING CONSERVATORSHIP.

    (a) Reporting Requirement.--For each reporting period, the 
Inspector General of the Federal Housing Finance Agency shall submit to 
the Congress a report for each enterprise that summarizes the 
activities of the Inspector General with respect to such enterprise, 
and the activities and condition of such enterprise, during such 
reporting period.
    (b) Contents.--Each report required under this section for an 
enterprise for a reporting period shall include the following 
information:
            (1) A description, including dollar amount, of total 
        liabilities of the enterprise as of the reporting date, with a 
        detailed breakdown of the potential level of risk to the 
        Federal Government inherent in the dollar amount of each 
        separate type of liability and a quantification as to how the 
        risk to the Federal Government has changed from the previous 
        reporting period, distinguishing between changes attributable 
        to volume and changes attributable to changes in risk levels.
            (2) An explanation of, including rationale for, all 
        compensation and bonuses paid to any executive officer (as such 
        term is defined in section 1303 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 4502)) of the enterprise, 
        and any retention decisions made, by the enterprise during such 
        period regarding its executive officers.
            (3) A description of foreclosure mitigation activities of 
        the enterprise during such period, including any related data, 
        a list of law firms and attorneys approved or retained by the 
        enterprise for handling foreclosure and bankruptcy matters 
        relating to mortgages held or securitized by the enterprise, 
        and the eligibility criteria used for such approval or 
        retention and reasons for limiting such list, and the number of 
        mortgage loans held by the enterprise that were refinanced in 
        2008, 2009, and 2010 through foreclosure mitigation activities 
        of the enterprise that have, during such period, entered into 
        default.
            (4) A description of any mortgage fraud prevention 
        activities undertaken by the enterprise during such period and 
        data describing the extent of mortgage fraud during such 
        period, including descriptions of the efforts of the enterprise 
        to prevent or detect mortgage fraud, of the pervasiveness of 
        mortgage fraud, and of the most prevalent types of mortgage 
        fraud detected.
            (5) A listing with description of any formal or informal 
        communication between Governors and staff of the Board of 
        Governors of the Federal Reserve System and executives in the 
        enterprise and any formal or informal communication between 
        officials and staff of the Department of the Treasury and the 
        Governors and staff of the Board of Governors of the Federal 
        Reserve System and executives in the enterprise regarding the 
        purchase or sale of any enterprise-related securities.
            (6) A description of any investments, holdings, and 
        activities of the enterprise during such period that are not 
        consistent with the mission of the enterprise as provided under 
        Federal law.
            (7) A description of the reasons for any equity investments 
        in the enterprise by the Department of the Treasury during such 
        period and any increase during such period in the authorized 
        amount of equity investments by such Department.
            (8) An analysis of the capital levels and portfolio size of 
        the enterprise during such period and their impacts on the 
        safety and soundness of the enterprise.
            (9) A description and analysis of the underwriting 
        standards of the enterprise applicable during such period, 
        including the criteria for safety and soundness of mortgage 
        loans for single-family, multi-family, and condominium 
        residential homes securitized by the enterprise and the ability 
        of such criteria to ensure such safety and soundness.
            (10) An analysis of actions taken by the enterprise that 
        had a beneficial or harmful effect on holders of enterprise-
        related securities, in particular, preferred stock issued prior 
        to September 6, 2008.
            (11) Any other information that the Inspector General 
        considers relevant or important with respect to the enterprise, 
        and the activities and condition of the enterprise.
    (c) Reporting Periods; Timing of Reports.--
            (1) Initial period.--The first reporting period for each 
        enterprise shall be the period that began upon the commencement 
        of the conservatorship period for the enterprise and that ends 
        upon the date of the enactment of this Act. The reports 
        required under this section for such period shall be submitted 
        not later than the expiration of the 60-day period beginning on 
        the date of the enactment of this Act.
            (2) Quarterly periods.--After the first reporting period, 
        the reporting periods for each enterprise shall be each 
        calendar quarter that concludes after the date of the enactment 
        of this Act. Each report for each such reporting period shall 
        be submitted not later than the expiration of the 60-day period 
        beginning upon the conclusion of such reporting period.
            (3) Receivership.--Notwithstanding paragraph (2), if at any 
        time a receiver is appointed for an enterprise pursuant to 
        section 1367 of the Housing and Community Development Act of 
        1992 (12 U.S.C. 4617), the reporting periods for the enterprise 
        during such receivership shall be each calendar month (or such 
        shorter period as the Inspector General considers appropriate). 
        Each report for each such reporting period shall be submitted 
        not later than the expiration of the 30-day period beginning 
        upon the conclusion of such reporting period.
            (4) Nationalization.--Notwithstanding paragraph (2), if at 
        any time the Federal Government or any agency or entity of the 
        Federal Government obtains control of an enterprise under law 
        or through ownership of voting stock of the enterprise, or the 
        Inspector General determines that the enterprise has otherwise 
        been nationalized, the reporting periods for the enterprise 
        after such nationalization occurs shall be the consecutive 6-
        month periods (the first such period beginning upon such 
        nationalization (or such shorter period as the Inspector 
        General considers appropriate). Each report for each such 
        reporting period shall be submitted not later than the 
        expiration of the 60-day period beginning upon the conclusion 
        of such reporting period.
    (d) Public Availability.--The Inspector General shall--
            (1) make information regarding the activities of the 
        Inspector General, including each report submitted to the 
        Congress pursuant to this section, available to the public, 
        including through a World Wide Web site of the Federal Housing 
        Finance Agency; and
            (2) establish an electronic mail address and a toll-free 
        telephone number, and shall publicize the availability of such 
        address and number, by which the public may report waste, 
        fraud, or abuse by an enterprise.
    (e) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Conservatorship period.--The term ``conservatorship 
        period'' means, with respect to an enterprise, the period 
        that--
                    (A) began upon appointment of the Federal Housing 
                Finance Agency as conservator for the enterprise on 
                September 6, 2008, pursuant to section 1367 of the 
                Housing and Community Development Act of 1992 (12 
                U.S.C. 4617); and
                    (B) ends upon the termination of such 
                conservatorship of the enterprise.
            (2) Inspector general.--The term ``Inspector General'' 
        means the Inspector General of the Federal Housing Finance 
        Agency, appointed pursuant to section 1317(d) of the Housing 
        and Community Development Act of 1992 (12 U.S.C. 4517).
            (3) Enterprise.--The term ``enterprise'' means the Federal 
        National Mortgage Association and the Federal Home Loan 
        Mortgage Corporation.
            (4) Reporting period.--The term ``reporting period'' means 
        a period described in paragraph (1), (2), (3), or (4) of 
        subsection (c).

SEC. 3. INSPECTOR GENERAL OF THE FEDERAL HOUSING FINANCE AGENCY.

    Section 1317 of the Housing and Community Development Act of 1992 
(12 U.S.C. 4517) is amended by striking subsection (d) and inserting 
the following new subsection:
    ``(d) Inspector General.--
            ``(1) Appointment.--There shall be within the Agency an 
        Inspector General, who shall be appointed in accordance with 
        section 3(a) of the Inspector General Act of 1978.
            ``(2) Direct hire authority.--
                    ``(A) Appointment authority.--Subject to 
                subparagraph (B), the Inspector General of the Agency 
                may appoint candidates to any position in Office of the 
                Inspector General of the Agency--
                            ``(i) in accordance with the statutes, 
                        rules, and regulations governing appointments 
                        in the excepted service; and
                            ``(ii) notwithstanding any statutes, rules, 
                        and regulations governing appointments in the 
                        competitive service.
                    ``(B) Applicability.--Subparagraph (A) shall apply 
                with respect to any position within the Office of the 
                Inspector General of the Agency, and the authority 
                under such subparagraph shall be effective only during 
                the 12-month period beginning upon the enactment of the 
                Fannie Mae and Freddie Mac Accountability and 
                Transparency for Taxpayers Act of 2011.
                    ``(C) Dual compensation waiver authority.--
                            ``(i) Waiver authority.--Subject to 
                        subparagraph (B) and notwithstanding section 
                        8468 of title 5, United States Code, or any 
                        other statute, rule, or regulation prescribing 
                        the termination of retirement annuities or the 
                        offset of such annuities for annuitants who are 
                        re-employed by the Federal Government, if an 
                        annuitant receiving an annuity from the Civil 
                        Service Retirement and Disability Fund becomes 
                        employed in a position within the Office of the 
                        Inspector General of the Agency, the annuity of 
                        such annuitant shall continue without 
                        termination or offset. An annuitant so 
                        reemployed shall not be considered an employee 
                        for purposes of chapter 83 or 84 of title 5, 
                        United States Code.
                            ``(ii) Applicability.--Subparagraph (A) 
                        shall apply with respect to any position within 
                        the Office of the Inspector General of the 
                        Agency, and the authority under such 
                        subparagraph shall be effective only during the 
                        36-month period beginning upon the enactment of 
                        the Fannie Mae and Freddie Mac Accountability 
                        and Transparency for Taxpayers Act of 2011.
            ``(3) Law enforcement authority.--The Office of the 
        Inspector General of the Agency shall be treated as an office 
        included under section 6(e)(3) of the Inspector General Act of 
        1978 (5 U.S.C. App.), relating to the exemption from the 
        initial determination of eligibility by the Attorney 
        General.''.