# Housing and Community Development Act of 1992/Title XIII/Subtitle D
## 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 Financial 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.