# Housing and Community Development Act of 1992/Title XIII/Subtitle A/Part 3
## 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.