Federal Home Loan Bank Modernization Act of 1993

FUNDING 
              CORPORATION.

    (a) Obligations of the Federal Home Loan Banks.--Section 21B of the 
Federal Home Loan Bank Act (12 U.S.C. 1441b) is amended--
            (1) in subsection (e)(3)(C)--
                    (A) in clause (i), by striking ``is less than 
                $300,000,000 per year'' and inserting ``for any year is 
                less than the amount which is equal to the lesser of 20 
                percent of the aggregate net earnings of such banks for 
                such year or $300,000,000''; and
                    (B) in clause (ii), by striking ``is more than 
                $300,000,000 per year'' and inserting ``for any year is 
                more than the amount which is equal to the lesser of 20 
                percent of the aggregate net earnings of such banks for 
                such year or $300,000,000''; and
            (2) in subsection (f)(2)(C)--
                    (A) by striking ``the aggregate amount of 
                $300,000,000'' and inserting ``the amount which is 
                equal to the lesser of 20 percent of the aggregate net 
                earnings of such banks for such year or $300,000,000''; 
                and
                    (B) by striking ``as follows:'' and all that 
                follows and inserting ``by requiring each such bank to 
                pay an equal percentage of the net earnings of the bank 
                for the year for which such payment is so required, up 
                to a maximum of 20 percent of the net earnings of the 
                bank.'';
    (b) Backup for Reduction in Payments Due to Paragraph (1) 
Amendments.--Section 21B(f)(2) of the Federal Home Loan Bank Act (12 
U.S.C. 1441b(f)(2)) is amended--
            (1) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (E) and (F), respectively; and
            (2) by inserting after subparagraph (C) the following:
                    ``(D) Backup assessment authority for certain 
                subparagraph (c) reductions.--
                            ``(i) In general.--To the extent the 
                        amounts available pursuant to subparagraphs 
                        (A), (B), and (C) are insufficient to cover the 
                        amount of interest payments for any year, the 
                        Federal Housing Finance Board shall impose an 
                        assessment on each assessable institution at a 
                        rate determined by such Board to be necessary 
                        for such Board to collect an amount equal to 
                        the amount of the deficiency.
                            ``(ii) Maximum amount limitation.--The 
                        aggregate amount of assessments imposed under 
                        clause (i) for any year may not exceed the 
                        amount by which $300,000,000 exceeds 20 percent 
                        of the aggregate net earnings of the Federal 
                        home loan banks for such year.
                            ``(iii) Applied to interest payments.--The 
                        amount received by the Federal Housing Finance 
                        Board from assessments imposed under this 
                        subparagraph shall be transferred to the 
                        Funding Corporation to make such interest 
                        payments.
                            ``(iv) Procedures to ensure timely 
                        payments.--For purposes of carrying out this 
                        paragraph, the Federal Housing Finance Board 
                        shall establish such procedures for imposing 
                        and collecting any assessment under this 
                        subparagraph for any year as such Board 
                        determines are necessary to ensure that the 
                        payment under clause (iii) will be made no 
                        later than the date by which any payment by the 
                        Federal home loan banks under subparagraph (C) 
                        is due for such year.
                            ``(v) Assessable institution defined.--For 
                        purposes of this subparagraph, the term 
                        `assessable institution' means--
                                    ``(I) any depository institution 
                                (as defined in section 3 of the Federal 
                                Deposit Insurance Act) which, at any 
                                time on or after January 1, 1993, has 
                                been a Savings Association Insurance 
                                Fund member (as defined in section 
                                7(l)(5) of the Federal Deposit 
                                Insurance Act) and, at the same time, 
                                has been a member of any Federal home 
                                loan bank; and
                                    ``(II) any depository institution 
                                (as defined in section 3 of the Federal 
                                Deposit Insurance Act) which acquires 
                                (as defined in section 13(f)(8)(B) of 
                                such Act), or which results from the 
                                merger or consolidation of any 
                                depository institution with, any 
                                depository institution described in 
                                subclause (I).''.
    (c) Technical and Conforming Amendments.--(1) Section 21B(f)(2) of 
the Federal Home Loan Bank Act (12 U.S.C. 1441b(f)(2)) is amended--
            (A) in subparagraph (E) (as so redesignated by subsection 
        (b)(1) of this section), by striking ``(B), and (C)'' and 
        inserting ``(B), (C), and (D)''; and
            (B) in subparagraph (F)(i) (as so redesignated by 
        subsection (b)(1) of this section), by striking ``(C), and 
        (D)'' and inserting ``(C), (D), and (E)''.
            (2) Section 6(b)(3) of the Federal Home Loan Bank Act (12 
        U.S.C. 1426(b)(3)) is amended by striking ``Except as provided 
        in Subsection (i)'' and inserting ``Except as provided in 
        subsection (e)''.
            (3) Section 6(b)(4) of the Federal Home Loan Bank Act (12 
        U.S.C. 1426(b)(4)) is deleted and section 6(b)(5) is 
        redesignated as Section 6(b)(4).

SEC. 4. STUDY OF FEASIBILITY OF CREATING A CLASS OF AFFILIATE 
              MEMBERSHIP OF THE FEDERAL HOME LOAN BANKS FOR MORTGAGE 
              BANKERS AND STATE HOUSING AUTHORITIES; REPORT TO THE 
              CONGRESS.

    (a) Study.--The Federal Housing Finance Board shall study the 
feasibility of creating a class of affiliate members of the Federal 
home loan banks for institutions that make long-term home mortgage 
loans, and the desirability of applying requirements to such members 
that differ from the requirements currently applicable to the members 
of the Federal home loan banks in the areas of--
            (1) the ability to obtain loans from the Federal home loan 
        banks,
            (2) the rate of interest to be charged on such loans,
            (3) the collateral required for such loans,
            (4) restrictions on use of such loans, and
            (5) the stock of the Federal home loan banks required to be 
        purchased.
    (b) Report.--Not later than December 31, 1993, the Federal Housing 
Finance Board shall submit to the Congress a report that contains the 
findings of the study required by subsection (a).

SEC. 5. EFFECTIVE DATE.

    The amendments made by sections 2 and 3 shall take effect at the 
end of the 6-month period beginning on the date of the enactment of 
this Act.

Summary: Federal Home Loan Bank Modernization Act of 1993 - Amends the Federal Home Loan Bank Act to permit the withdrawal of any member from membership in a Federal Home Loan Bank. Replaces the minimum share subscription formula for Federal Home Loan Bank membership with a requirement based upon a subscriber's total assets . Repeals: (1) the 30 percent lending cap limitation on advances to members that are non-qualified thrift lenders. (2) the proscription against the acquisition of new advances from a Federal Home Loan Bank by a savings association lacking qualified thrift lender status. And (3) the minimum residential mortgage loan requirement for qualified thrift lender membership in the Federal Home Loan Bank system. Reduces from ten years to five years the waiting period before which a withdrawn member may resume membership. Modifies the formula for annual contributions by Federal Home Loan Banks to capitalize the Resolution Funding Corporation. Authorizes the Federal Home Loan Bank Board to impose assessments to make up for any deficiency resulting from such modification. Directs the Federal Housing Finance Board to study and report to the Congress on: (1) the feasibility of creating a class of affiliate members of the Federal Home Loan Banks for institutions that make long term home mortgage loans. And (2) the desirability of applying requirements to such members that differ from those currently applicable in specified areas to Federal Home Loan Bank members.