I 

108TH CONGRESS 

1ST SESSION H. R. 2803

To establish the Office of Housing Finance Oversight in the Department 

of the Treasury to ensure the financial safety and soundness of Fannie 

Mae, Freddie Mac, and the Federal home loan banks. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 21, 2003

Mr. ROYCE introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL

To establish the Office of Housing Finance Oversight in 

the Department of the Treasury to ensure the financial 

safety and soundness of Fannie Mae, Freddie Mac, and 

the Federal home loan banks.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Housing Finance Regulatory Restructuring Act of 

6 2003’’. 

7 (b) TABLE OF CONTENTS.—

Sec. 1. Short title and table of contents. 
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TITLE I—REGULATION OF FEDERAL HOUSING ENTERPRISES 

AND FEDERAL HOME LOAN BANKS 

Sec. 101. Establishment of Office of Housing Finance Oversight. 

Sec. 102. Financial safety and soundness of enterprises. 

Sec. 103. Charter compliance of enterprises. 

Sec. 104. Supervision of Federal Home Loan Bank System. 

Sec. 105. Amendments to title 5, United States Code. 

Sec. 106. Financial Institutions Examination Council. 

Sec. 107. Effective date. 

TITLE II—TRANSFER OF FUNCTIONS, PERSONNEL, AND 

PROPERTY 

Sec. 201. Abolishment of OFHEO and Federal Housing Finance Board. 

Sec. 202. Continuation and coordination of certain regulations. 

Sec. 203. Transfer and rights of employees of abolished agencies. 

Sec. 204. Transfer of property and facilities.

1 TITLE I—REGULATION OF FED2 ERAL HOUSING ENTERPRISES 

3 AND FEDERAL HOME LOAN 

4 BANKS 

5 SEC. 101. ESTABLISHMENT OF OFFICE OF HOUSING FI6 NANCE OVERSIGHT. 

7 (a) IN GENERAL.—Part 1 of Subtitle A of title XIII 

8 of the Housing and Community Development Act of 1992 

9 is amended by striking sections 1311 and 1312 (12 U.S.C. 

10 4511, 4512) and inserting the following new sections: 

11 ‘‘SEC. 1311. ESTABLISHMENT OF OFFICE OF HOUSING FI12 NANCE OVERSIGHT. 

13 ‘‘(a) ESTABLISHMENT.—There is established the Of14 fice of Housing Finance Oversight, which shall be a bu15 reau in the Department of the Treasury. The Office shall 

16 succeed to the authority of the Director of the Office of 

17 Federal Housing Enterprise Oversight of the Department 
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1 of Housing and Urban Development and the Federal 

2 Housing Finance Board, and the general regulatory and 

3 any other authority of the Secretary of Housing and 

4 Urban Development with respect to the enterprises (except 

5 as specifically provided otherwise in this Act). 

6 ‘‘(b) PROHIBITION OF MERGER OF OFFICE.—Not7 withstanding any other provision of this law, the Secretary 

8 of the Treasury may not merge or consolidate the Office, 

9 or any of the functions or responsibilities of the Office, 

10 with any other office or bureau of the Department of the 

11 Treasury or with any other function or program adminis12 tered by the Secretary. 

13 ‘‘SEC. 1312. DIRECTOR. 

14 ‘‘(a) ESTABLISHMENT OF POSITION.—

15 ‘‘(1) IN GENERAL.—There is established the po16 sition of the Director of the Office of Housing Fi17 nance Oversight, who shall be the head of the Office 

18 of Housing Finance Oversight and shall be subject 

19 to the general oversight of the Secretary of the 

20 Treasury. 

21 ‘‘(2) AUTHORITY TO PRESCRIBE REGULA22 TIONS.—The Director may prescribe such regula23 tions and issue such orders as the Director may de24 termine to be necessary for carrying out this Act 

25 and the functions assigned to the Director under the 
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1 Federal National Mortgage Association Charter Act 

2 and the Federal Home Loan Mortgage Corporation 

3 Act. 

4 ‘‘(3) AUTONOMY OF DIRECTOR.—The Secretary 

5 of the Treasury may not intervene in any matter or 

6 proceeding before the Director (including agency en7 forcement actions) unless otherwise specifically pro8 vided by law. 

9 ‘‘(4) RULEMAKING.—The Secretary of the 

10 Treasury may not delay or prevent the issuance of 

11 any rule or the promulgation of any regulation by 

12 the Director. 

13 ‘‘(b) APPOINTMENT; TERM.—

14 ‘‘(1) APPOINTMENT.—The Director shall be ap15 pointed by the President, by and with the advice and 

16 consent of the Senate, from among individuals who 

17 are citizens of the United States.

18 ‘‘(2) TERM.—The Director shall be appointed 

19 for a term of 5 years. 

20 ‘‘(3) VACANCY.—A vacancy in the position of 

21 Director which occurs before the expiration of the 

22 term for which a Director was appointed shall be 

23 filled in the manner established in paragraph (1) 

24 and the Director appointed to fill such vacancy shall 

25 be appointed only for the remainder of such term. 
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1 ‘‘(4) SERVICE AFTER END OF TERM.—An indi2 vidual may serve as Director after the expiration of 

3 the term for which appointed until a successor Di4 rector has been appointed. 

5 ‘‘(5) TRANSITIONAL PROVISION.—Notwith6 standing paragraphs (1) and (2), the Director of the 

7 Office of Federal Housing Enterprise Oversight of 

8 the Department of Housing and Urban Development 

9 on the effective date under section 107 of the Hous10 ing Finance Regulatory Restructuring Act of 2003 

11 shall be the Director until the date on which that in12 dividual’s term as Director of the Office of Federal 

13 Housing Enterprise Oversight would have expired. 

14 ‘‘(c) PROHIBITION ON FINANCIAL INTERESTS.—The 

15 Director shall not have a direct or indirect financial inter16 est in any enterprise, any member of any Federal home 

17 loan bank, or any holding company of any such member. 

18 ‘‘(d) DEPUTY DIRECTORS.—

19 ‘‘(1) IN GENERAL.—The Office shall have two 

20 Deputy Directors. An individual may not be ap21 pointed as Deputy Director if the individual has 

22 served as an executive officer or director of an enter23 prise, a Federal home loan bank, or a member of a 

24 Federal home loan bank at any time during the 3-

25 year period ending upon the appointment of such in-
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1 dividual as Deputy Director. In the event of the 

2 death, resignation, sickness, or absence of the Direc3 tor, the Deputy Director for Safety and Soundness 

4 shall serve as acting Director until the return of the 

5 Director or the appointment of a successor pursuant 

6 to subsection (b). 

7 ‘‘(2) DEPUTY DIRECTOR FOR SAFETY AND

8 SOUNDNESS.—One of the Deputy Directors referred 

9 to in paragraph (1) shall be the Deputy Director for 

10 Safety and Soundness, who shall be appointed by 

11 the Director from among individuals who are citi12 zens of the United States and have a demonstrated 

13 understanding of finance. The Director shall assign 

14 to the Deputy Director for Safety and Soundness all 

15 functions, powers, and duties of the Director—

16 ‘‘(A) with respect to the enterprises, 

17 that—

18 ‘‘(i) before the effective date of the 

19 Housing Finance Regulatory Restructuring 

20 Act of 2003, were functions, powers, or du21 ties of the Director of the Office of Federal 

22 Housing Enterprise Oversight of the De23 partment of Housing and Urban Develop24 ment; or 
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1 ‘‘(ii) are primarily related to the duty 

2 under section 1313; and 

3 ‘‘(B) with respect to the Federal home 

4 loan banks, that—

5 ‘‘(i) before the effective date of the 

6 Housing Finance Regulatory Restructuring 

7 Act of 2003, were functions, powers, or du8 ties of the Federal Housing Finance 

9 Board; or 

10 ‘‘(ii) are related to the supervision, 

11 regulation, or oversight of the Federal 

12 home loan banks. 

13 ‘‘(3) DEPUTY DIRECTOR FOR HOUSING ENTER14 PRISE CHARTER COMPLIANCE.—One of the Deputy 

15 Directors referred to in paragraph (1) shall be the 

16 Deputy Director for Housing Enterprise Charter 

17 Compliance, who shall be appointed by the Director 

18 from among individuals who are citizens of the 

19 United States and have a demonstrated under20 standing of finance. The Director shall assign to the 

21 Deputy Director for Housing Enterprise Charter 

22 Compliance all functions, powers, and duties of the 

23 Director with respect to the enterprises that—

24 ‘‘(A) before the effective date of the Hous25 ing Finance Regulatory Restructuring Act of 
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1 2003, were the functions, powers, or duties of 

2 the Secretary of Housing and Urban Develop3 ment; or 

4 ‘‘(B) are primarily related to compliance of 

5 the enterprises with their chartering Acts. 

6 ‘‘(e) DELEGATION AUTHORITY.—

7 ‘‘(1) IN GENERAL.—Subject only to the limita8 tions in subsection (d) and paragraph (2) of this 

9 subsection, the Director may delegate to any em10 ployee, representative, or agent any power of the Di11 rector. 

12 ‘‘(2) LIMITATION.—Notwithstanding paragraph 

13 (1), the Director shall not, directly or indirectly, 

14 after October 10, 1989, delegate to any Federal 

15 home loan bank or to any officer, director, or em16 ployee of a Federal home loan bank, any power in17 volving examining, supervising, taking enforcement 

18 action with respect to, or otherwise regulating any 

19 savings association, savings and loan holding com20 pany, or other person subject to regulation by the 

21 Director.’’. 

22 (b) APPOINTMENT OF DIRECTOR.—Notwithstanding 

23 the effective date under section 107 or any other provision 

24 of law, the President may, at any time after the date of 

25 the enactment of this Act, appoint an individual to serve 
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1 as the Director of the Office of Housing Finance Over2 sight in accordance with the provisions of the amendment 

3 made by subsection (a) of this section. 

4 (c) PERSONNEL.—Section 1315 of the Housing and 

5 Community Development Act of 1992 (12 U.S.C. 4515) 

6 is amended—

7 (1) in subsection (a)—

8 (A) by striking ‘‘The’’ and inserting ‘‘Sub9 ject to title II of the Housing Finance Regu10 latory Restructuring Act of 2003, the’’; and 

11 (B) by adding at the end the following new 

12 sentence: ‘‘Notwithstanding any other provision 

13 of this section, in no event shall the Director 

14 delegate any function to any employee, adminis15 trative unit of any Federal home loan bank, or 

16 joint office of the Federal Home Loan Bank 

17 System.’’; 

18 (2) in subsection (d)—

19 (A) in the subsection heading, by striking 

20 ‘‘HUD’’ and inserting ‘‘DEPARTMENT OF THE

21 TREASURY’’; and 

22 (B) by striking ‘‘Housing and Urban De23 velopment’’ and inserting ‘‘the Treasury’’; and 

24 (3) by striking subsection (f). 
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1 (d) FUNDING.—Section 1316 of the Housing and 

2 Community Development Act of 1992 (12 U.S.C. 4516) 

3 is amended—

4 (1) by striking subsection (a) and inserting the 

5 following new subsection: 

6 ‘‘(a) ANNUAL ASSESSMENTS.—

7 ‘‘(1) DIRECTOR.—The Director shall establish 

8 and collect from the enterprises annual assessments 

9 in an amount not exceeding the amount sufficient to 

10 provide for reasonable costs and expenses of the Di11 rector, with respect to regulation and supervision of 

12 the enterprises, including the expenses of any exami13 nations under section 1317 and the expenses of ob14 taining any reviews under section 1319. 

15 ‘‘(2) SECRETARY OF HUD.—The Secretary of 

16 Housing and Urban Development shall establish and 

17 collect from the enterprises annual assessments in 

18 an amount not exceeding the amount sufficient to 

19 provide for reasonable costs and expenses of the De20 partment of Housing and Urban Development in 

21 carrying out the responsibilities of the Secretary of 

22 Housing and Urban Development under this sub23 title, the Federal National Mortgage Association 

24 Charter Act, and the Federal Home Loan Mortgage 

25 Corporation Act.’’; 
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1 (2) in subsection (b)—

2 (A) in paragraph (1)—

3 (i) by inserting ‘‘and to the Secretary 

4 of Housing and Urban Development’’ after 

5 ‘‘Director’’; 

6 (ii) by inserting ‘‘paragraph (1) and 

7 (2), respectively, of’’ before ‘‘subsection 

8 (a)’’; and 

9 (iii) by inserting ‘‘under such para10 graph’’ after ‘‘total annual assessment’’; 

11 and 

12 (B) in paragraph (2)—

13 (i) by striking ‘‘The annual assess14 ment’’ and inserting ‘‘Each of the annual 

15 assessments pursuant to paragraphs (1) 

16 and (2) of subsection (a)’’; and 

17 (ii) by realigning paragraph (2) two 

18 ems from the left margin, so as to align 

19 the left margin of such paragraph with the 

20 left margins of paragraphs (1) and (3); 

21 (3) in subsection (c)—

22 (A) by inserting ‘‘for an assessment under 

23 subsection (a)(1) that are’’ after ‘‘The semi24 annual payments’’; and 
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1 (B) by adding at the end the following new 

2 sentence: ‘‘The Director may adjust the 

3 amounts of any semiannual assessments for an 

4 assessment under subsection (a)(1) that are to 

5 be paid pursuant to subsection (b) by an enter6 prise, as necessary in the discretion of the Di7 rector, to ensure that the costs of enforcement 

8 activities under subtitles B and C for an enter9 prise are borne only by that enterprise.’’; 

10 (4) in subsection (d)—

11 (A) by inserting ‘‘by the Director or by the 

12 Secretary of Housing and Urban Development’’ 

13 before ‘‘from an enterprise’’; and

14 (B) by inserting ‘‘by the Director or by the 

15 Secretary of Housing and Urban Development, 

16 as applicable,’’ before ‘‘for the following year’’; 

17 (5) by striking subsection (f) and inserting the 

18 following new subsecton: 

19 ‘‘(f) FUND.—

20 ‘‘(1) ESTABLISHMENT.—There is established in 

21 the Treasury of the United States a fund to be 

22 known as the Federal Housing Enterprises Over23 sight Fund. 
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1 ‘‘(2) DEPOSITS.—Notwithstanding any other 

2 provision of law, the following amounts shall be de3 posited in the Fund: 

4 ‘‘(A) DIRECTOR’S ASSESSMENTS ON EN5 TERPRISES.—Any assessments collected by the 

6 Director from the enterprises pursuant to this 

7 section, which shall be deposited in an account 

8 of the Director for the enterprises. 

9 ‘‘(B) DIRECTORS ASSESSMENTS ON FED10 ERAL HOME LOAN BANKS.—Any receipts of the 

11 Director derived from assessments levied upon 

12 the Federal home loan banks pursuant to sec13 tion 18(b) of the Federal Home Loan Bank Act 

14 and from other sources (other than receipts 

15 from the sale of consolidated Federal home loan 

16 bank bonds and debentures issued under section 

17 11 of such Act), which shall be deposited in an 

18 account of the Director for the Federal home 

19 loan banks. 

20 ‘‘(C) SECRETARY’S ASSESSMENTS ON EN21 TERPRISES.—Any amounts collected by the Sec22 retary of Housing and Urban Development, 

23 which shall be deposited in an account of such 

24 Secretary. 
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1 ‘‘(3) AVAILABILITY.—Any amounts in the Fund 

2 are hereby made available, without fiscal year limita3 tion, as follows: 

4 ‘‘(A) DIRECTOR’S RESPONSIBILITIES FOR

5 ENTERPRISES.—To the Director, to the extent 

6 of amounts in the Director’s account estab7 lished pursuant to paragraph (2)(A), for car8 rying out the supervisory and regulatory re9 sponsibilities of the Director, with respect to 

10 the enterprises, including any necessary admin11 istrative and nonadministrative expenses of the 

12 Director in carrying out the purposes of this 

13 title, the Federal National Mortgage Associa14 tion Charter Act, and the Federal Home Loan 

15 Mortgage Corporation Act. 

16 ‘‘(B) DIRECTOR’S RESPONSIBILITIES FOR

17 FEDERAL HOME LOAN BANKS.—To the Direc18 tor, to the extent of amounts in the Director’s 

19 account established pursuant to paragraph 

20 (2)(B), for carrying out the supervisory and 

21 regulatory responsibilities of the Director, with 

22 respect to the Federal home loan banks.

23 ‘‘(C) SECRETARY’S RESPONSIBLITIES FOR

24 ENTERPRISES.—To the Secretary of Housing 

25 and Urban Development, to the extent of 
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1 amounts in the Secretary’s account established 

2 pursuant to paragraph (2)(C), for carrying out 

3 the regulatory responsibilities of the Secretary, 

4 with respect to the enterprises.’’; and 

5 (6) in subsection (g)—

6 (A) by striking paragraphs (1) and (2) and 

7 inserting the following new paragraphs: 

8 ‘‘(1) FINANCIAL OPERATING PLANS AND FORE9 CASTS.—Before the beginning of each fiscal year—

10 ‘‘(A) the Director shall submit a copy of 

11 the financial operating plans and forecasts for 

12 the Director, with respect to regulation and su13 pervision of the enterprises, to the Secretary of 

14 the Treasury and the Director of the Office of 

15 Management and Budget; and 

16 ‘‘(B) the Secretary of Housing and Urban 

17 Development shall submit, to the Director, a 

18 copy of the financial operating plans and fore19 casts for the Department of Housing and 

20 Urban Development, with respect to responsibil21 ities and activities of the Secretary under this 

22 subtitle. 

23 ‘‘(2) REPORTS OF OPERATIONS.—As soon as 

24 practicable after the end of each fiscal year and each 

25 quarter thereof—
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1 ‘‘(A) the Director shall submit a copy of 

2 the report of the results of the operations of the 

3 Director, with respect to regulation and super4 vision of the enterprises, during such period to 

5 the Secretary of the Treasury and the Director 

6 of the Office of Management and Budget; and 

7 ‘‘(B) the Secretary of Housing and Urban 

8 Development shall submit, to the Director, a re9 port of the results of the operations of the De10 partment of Housing and Urban Development, 

11 with respect to responsibilities and activities of 

12 the Secretary under this subtitle.’’; and 

13 (B) in paragraph (3)—

14 (i) by striking ‘‘(A)’’; 

15 (ii) by striking ‘‘, and (B)’’ and in16 serting the following: ‘‘. The annual plans, 

17 forecasts, and reports required under para18 graphs (1)(B) and (2)(B) shall be in19 cluded’’; and 

20 (iii) by inserting ‘‘of Housing and 

21 Urban Development’’ before the period at 

22 the end. 

23 (e) PUBLIC DISCLOSURE OF FINAL ORDERS AND

24 AGREEMENTS.—Section 1319C of the Housing and Com-
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1 munity Development Act of 1992 (12 U.S.C. 4522) is 

2 amended—

3 (1) in subsection (a)—

4 (A) in paragraph (1), by inserting ‘‘or the 

5 Federal home loan banks, as the case may be’’ 

6 before the semicolon; and 

7 (B) in paragraph (2), by inserting ‘‘or 

8 under the authority of the Director under the 

9 Federal Home Loan Bank Act’’ after ‘‘subtitle 

10 C’’; 

11 (2) in subsection (c), by inserting ‘‘or the Fed12 eral home loan banks’’ after ‘‘the enterprise’’; and 

13 (3) in subsection (e), by inserting ‘‘or under the 

14 authority of the Director under the Federal Home 

15 Loan Bank Act’’ before the period at the end. 

16 (f) LIMITATION ON SUBSEQUENT EMPLOYMENT.—

17 Section 1319D of the Housing and Community Develop18 ment Act of 1992 (12 U.S.C. 4523) is amended by insert19 ing ‘‘or any Federal home loan bank’’ after ‘‘an enter20 prise’’. 

21 (g) INFORMATION, RECORDS, AND MEETINGS.—Sec22 tion 1319F of the Housing and Community Development 

23 Act of 1992 (12 U.S.C. 4525) is amended by striking 

24 ‘‘Code’’ and all that follows through ‘‘agencies’’ and in25 serting ‘‘Code, the Office shall be considered an agency’’. 
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1 (h) REGULATIONS.—Section 1319G of the Housing 

2 and Community Development Act of 1992 (12 U.S.C. 

3 4526) is amended by striking subsection (a) and inserting 

4 the following new subsection:

5 ‘‘(a) AUTHORITY.—The Director shall issue any reg6 ulations and orders necessary to carry out the duties of 

7 the Director and to carry out this title and the responsibil8 ities of the Director under the Federal National Mortgage 

9 Association Charter Act, the Federal Home Loan Mort10 gage Corporation Act, and the Federal Home Loan Bank 

11 Act and to ensure that the purposes of this title and such 

12 Acts are accomplished.’’. 

13 (i) DEFINITIONS.—Section 1303 of the Housing and 

14 Community Development Act of 1992 (12 U.S.C. 4502) 

15 is amended—

16 (1) in paragraph (5), by striking ‘‘Office of 

17 Federal Housing Enterprise Oversight of the De18 partment of Housing and Urban Development’’ and 

19 inserting ‘‘Office of Housing Finance Oversight of 

20 the Department of the Treasury’’; 

21 (2) in paragraphs (8), (10), and (19), by strik22 ing ‘‘Secretary’’ each place such term appears and 

23 inserting ‘‘Director’’; 

24 (3) in paragraph (14), by striking ‘‘Office of 

25 Federal Housing Enterprise Oversight of the De-
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1 partment of Housing and Urban Development’’ and 

2 inserting ‘‘Office of Housing Finance Oversight of 

3 the Department of the Treasury’’; 

4 (4) by striking paragraph (15); and 

5 (5) by redesignating paragraphs (16) through 

6 (19) as paragraphs (15) through (18), respectively. 

7 SEC. 102. FINANCIAL SAFETY AND SOUNDNESS OF ENTER8 PRISES. 

9 (a) IN GENERAL.—Subtitle A of title XIII of the 

10 Housing and Community Development Act of 1992 (12 

11 U.S.C. 4513) is amended—

12 (1) in section 1313 (12 U.S.C. 4513)—

13 (A) by striking the section designation and 

14 section heading and all that follows through the 

15 end of subsection (d) and inserting the fol16 lowing: 

17 ‘‘SEC. 1313. FINANCIAL SAFETY AND SOUNDNESS DUTY. 

18 ‘‘(a) DUTY.—It shall be the duty of the Director to 

19 ensure that the enterprises and the Federal home loan 

20 banks are adequately capitalized and operating safely, in 

21 accordance with this title.’’; 

22 (B) in subsection (e), by inserting ‘‘of the 

23 Treasury’’ after ‘‘Secretary’’;

24 (C) by redesignating subsection (e) as sub25 section (b); and 
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1 (D) by adding at the end the following new 

2 subsections: 

3 ‘‘(b) ENFORCEMENT AUTHORITY.—In addition to 

4 any other authority of the Director to take an enforcement 

5 or remedial action with respect to an enterprise or a Fed6 eral home loan bank, the Director may issue cease-and7 desist orders, temporary cease-and-desist orders (includ8 ing orders to take affirmative action), and suspension and 

9 removal orders, and assess civil money penalties, with re10 spect to the enterprises and the Federal Home Loan 

11 Banks to the same extent and under the same procedures 

12 and conditions as the appropriate Federal banking agen13 cies are authorized under section 8 of the Federal Deposit 

14 Insurance Act (12 U.S.C. 1818) with respect to insured 

15 depository institutions. 

16 ‘‘(c) SAFETY AND SOUNDNESS STANDARDS.—The 

17 Director shall prescribe safety and soundness standards 

18 with respect to the enterprises and the Federal home loan 

19 banks pursuant to the same authority under section 39 

20 of the Federal Deposit Insurance Act (12 U.S.C. 1831s) 

21 and that shall have the same force and effect with respect 

22 to the enterprises and the Federal home loan banks as 

23 is provided under such section for safety and soundness 

24 standards prescribed by the appropriate Federal banking 

25 agencies for insured depository institutions.’’; and 
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1 (2) by striking the designation and heading for 

2 such subtitle and for part 1 of such subtitle and in3 serting the following: 

4 ‘‘Subtitle A—Supervision and 

5 Regulation 

6 ‘‘PART 1—ESTABLISHMENT OF REGULATOR’’. 

7 (b) CONFORMING AMENDMENTS TO HOUSING AND

8 COMMUNITY DEVELOPMENT ACT OF 1992.—Title XIII of 

9 the Housing and Community Development Act of 1992 

10 is amended—

11 (1) in section 1361(f) (12 U.S.C. 4611(f)), by 

12 inserting ‘‘of the Treasury’’ after ‘‘Secretary’’; 

13 (2) in section 1367(c) (12 U.S.C. 4617(c)), by 

14 striking paragraph (1); and 

15 (3) by striking section 1383 (12 U.S.C. 1451 

16 note). 

17 (c) AMENDMENTS TO FEDERAL NATIONAL MORT18 GAGE ASSOCIATION CHARTER ACT.—The Federal Na19 tional Mortgage Association Charter Act (12 U.S.C. 1716 

20 et seq.) is amended by striking ‘‘Director of the Office of 

21 Federal Housing Enterprise Oversight of the Department 

22 of Housing and Urban Development’’ each place such 

23 term appears and inserting ‘‘Director of the Office of 

24 Housing Finance Oversight of the Department of the 

25 Treasury’’ in—
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1 (1) section 303(c)(2) (12 U.S.C. 1718(c)(2)); 

2 (2) section 309(d)(3)(B) (12 U.S.C. 

3 1723a(d)(3)(B)); and 

4 (3) section 309(k)(1). 

5 (d) AMENDMENTS TO FEDERAL HOME LOAN MORT6 GAGE CORPORATION ACT.—The Federal Home Loan 

7 Mortgage Corporation Act is amended—

8 (1) by striking ‘‘Director of the Office of Fed9 eral Housing Enterprise Oversight of the Depart10 ment of Housing and Urban Development’’ each 

11 place such term appears and inserting ‘‘Director of 

12 the Office of Housing Finance Oversight of the De13 partment of the Treasury’’ in—

14 (A) section 303(b)(2) (12 U.S.C. 

15 1452(b)(2)); 

16 (B) section 303(h)(2) (12 U.S.C. 

17 1452(h)(2)); and 

18 (C) section 307(c)(1) (12 U.S.C. 

19 1456(c)(1)); and 

20 (2) in section 306(i) (12 U.S.C. 1455(i))—

21 (A) by striking ‘‘section 1316(c)’’ and in22 serting ‘‘section 306(c)’’; and 

23 (B) by striking ‘‘section 106’’ and insert24 ing ‘‘section 1316’’. 
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1 (e) AMENDMENT TO TITLE 18, UNITED STATES

2 CODE.—Section 1905 of title 18, United States Code, is 

3 amended by striking ‘‘Office of Federal Housing Enter4 prise Oversight’’ and inserting ‘‘Office of Housing Finance 

5 Oversight of the Department of the Treasury’’. 

6 (f) AMENDMENTS TO FLOOD DISASTER PROTECTION

7 ACT OF 1973.—Section 102(f)(3)(A) of the Flood Dis8 aster Protection Act of 1973 (42 U.S.C. 4012a) is amend9 ed by striking ‘‘Director of the Office of Federal Housing 

10 Enterprise Oversight of the Department of Housing and 

11 Urban Development’’ and inserting ‘‘Director of the Office 

12 of Housing Finance Oversight of the Department of the 

13 Treasury’’. 

14 SEC. 103. CHARTER COMPLIANCE OF ENTERPRISES. 

15 (a) AUTHORITY OF DIRECTOR.—Part 2 of subtitle A 

16 of title XIII of the Housing and Community Development 

17 Act of 1992 (12 U.S.C. 4541 et seq.) is amended—

18 (1) by striking the designation and heading for 

19 the part and subpart A and inserting the following: 

20 ‘‘PART 2—CHARTER COMPLIANCE AUTHORITY 

21 ‘‘Subpart A—Authority of Director’’; 

22 (2) by striking section 1321 (12 U.S.C. 4541); 

23 (3) in section 1328—

24 (A) in the section heading, by striking ‘‘BY

25 SECRETARY’’; and 
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1 (B) by striking ‘‘Banking, Finance and 

2 Urban Affairs’’ and inserting ‘‘Financial Serv3 ices’’; and 

4 (4) in subpart A, by striking ‘‘Secretary’’ each 

5 place such term appears (except in section 1324) 

6 and inserting ‘‘Director’’. 

7 (b) AUTHORITY OF SECRETARY OF HUD FOR HOUS8 ING GOALS.—

9 (1) IN GENERAL.—Section 1331 of the Housing 

10 and Community Development Act of 1992 (12 

11 U.S.C. 4561) is amended—

12 (A) in the first sentence of subsection (a), 

13 by inserting ‘‘of Housing and Urban Develop14 ment’’ after ‘‘The Secretary’’; and 

15 (B) by adding at the end the following new 

16 subsection: 

17 ‘‘(d) DEFINITION.—For purposes of this part and 

18 subpart B, the term ‘Secretary’ means the Secretary of 

19 Housing and Urban Development.’’. 

20 (2) ANNUAL REPORT ON HOUSING GOALS.—

21 Section 1324 of the Housing and Community Devel22 opment Act of 1992 (12 U.S.C. 4544) is amended 

23 by inserting ‘‘of Housing and Urban Development’’ 

24 after ‘‘Secretary’’, each place such term appears. 
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1 (c) AMENDMENTS TO FEDERAL NATIONAL MORT2 GAGE ASSOCIATION CHARTER ACT.—The Federal Na3 tional Mortgage Association Charter Act is amended—

4 (1) in section 302(b)(6) (12 U.S.C. 

5 1717(b)(6)), by striking ‘‘Secretary’’ and inserting 

6 ‘‘Director of the Office of Housing Finance Over7 sight of the Department of the Treasury’’; 

8 (2) in section 309(m) (12 U.S.C. 1723a(m))—

9 (A) in paragraph (1), in the matter pre10 ceding subparagraph (A), by striking ‘‘Sec11 retary’’ the first place such term appears and 

12 inserting ‘‘Director of the Office of Housing Fi13 nance Oversight of the Department of the 

14 Treasury’’; and 

15 (B) by striking ‘‘Secretary’’ each other 

16 place such term appears and inserting ‘‘Direc17 tor’’; and 

18 (3) in section 309(n) (12 U.S.C. 1723a(n))—

19 (A) in paragraph (1)—

20 (i) by inserting ‘‘the Director of the 

21 Office of Housing Finance Oversight of the 

22 Department of the Treasury,’’ after ‘‘Sen23 ate,’’; and 
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•HR 2803 IH 

1 (ii) by inserting ‘‘of Housing and 

2 Urban Development’’ after ‘‘Secretary’’; 

3 and 

4 (B) in paragraphs (2) and (3), by striking 

5 ‘‘Secretary’’ each place such term appears, and 

6 inserting ‘‘Director’’. 

7 (d) AMENDMENTS TO FEDERAL HOME LOAN MORT8 GAGE CORPORATION ACT.—The Federal Home Loan 

9 Mortgage Corporation Act is amended—

10 (1) in section 305(c) (12 U.S.C. 1454(c)), by 

11 striking ‘‘Secretary’’ and inserting ‘‘Director of the 

12 Office of Housing Finance Oversight of the Depart13 ment of the Treasury’’; 

14 (2) in section 307(e) (12 U.S.C. 1456(e))—

15 (A) in paragraph (1), in the matter pre16 ceding subparagraph (A), by striking ‘‘Sec17 retary’’ the first place such term appears and 

18 inserting ‘‘Director of the Office of Housing Fi19 nance Oversight of the Department of the 

20 Treasury’’; and 

21 (B) by striking ‘‘Secretary’’ each other 

22 place such term appears and inserting ‘‘Direc23 tor’’; and 

24 (3) in section 307(f) (12 U.S.C. 1456(f))—

25 (A) in paragraph (1)—
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•HR 2803 IH 

1 (i) by inserting ‘‘the Director of the 

2 Office of Housing Finance Oversight of the 

3 Department of the Treasury,’’ after ‘‘Sen4 ate,’’; and 

5 (ii) by inserting ‘‘of Housing and 

6 Urban Development’’ after ‘‘Secretary’’; 

7 and 

8 (B) in paragraphs (2) and (3), by striking 

9 ‘‘Secretary’’ each place such term appears, and 

10 inserting ‘‘Director’’. 

11 (e) AMENDMENTS TO HOUSING AND COMMUNITY

12 DEVELOPMENT ACT OF 1980.—The Housing and Com13 munity Development Act of 1980 is amended—

14 (1) in section 330 (12 U.S.C. 1723a note)—

15 (A) by striking ‘‘Secretary of Housing and 

16 Urban Development or the Secretary of the 

17 Treasury’’ each place such term appears and 

18 inserting ‘‘Director of the Office of Housing Fi19 nance Oversight of the Department of the 

20 Treasury’’; and 

21 (B) by striking ‘‘, as the case may be,’’; 

22 and 

23 (2) in subsections (a)(2) and (b)(2) of section 

24 339 (12 U.S.C. 1717 note), by striking ‘‘Secretary 

25 of Housing and Urban Development’’ each place 
28

•HR 2803 IH 

1 such term appears and inserting ‘‘Director of the 

2 Office of Housing Finance Oversight of the Depart3 ment of the Treasury’’. 

4 (f) CONFORMING AMENDMENT.—Part 3 of subtitle A 

5 of title XIII of the Housing and Community Development 

6 Act of 1992 (Public Law 102–550; 106 Stat. 3969) is 

7 hereby repealed. 

8 SEC. 104. SUPERVISION OF FEDERAL HOME LOAN BANK 

9 SYSTEM. 

10 (a) FEDERAL HOME LOAN BANK ACT.—The Federal 

11 Home Loan Bank Act is amended—

12 (1) in section 2 (12 U.S.C. 1422), by striking 

13 paragraph (1) and inserting the following new para14 graph: 

15 ‘‘(1) DIRECTOR.—The term ‘Director’ means 

16 the Director of the Office of Housing Finance Over17 sight of the Department of the Treasury established 

18 under title XIII of the Housing and Community De19 velopment Act of 1992 (12 U.S.C. 4501 et seq.).’’; 

20 (2) by striking section 2A (12 U.S.C. 1422a) 

21 and inserting the following new section: 

22 ‘‘SEC. 2A. SUPERVISION AND REGULATION OF BANKS. 

23 ‘‘The Federal home loan banks shall, to the extent 

24 provided in title XIII of the Housing and Community De25 velopment Act of 1992 (12 U.S.C. 4501 et seq.) and this 
29

•HR 2803 IH 

1 Act, be subject to the supervision and regulation of the 

2 Director of the Office of Housing Finance Oversight of 

3 the Department of the Treasury.’’; 

4 (3) in section 2B (12 U.S.C. 1422b)—

5 (A) in the section heading, by striking 

6 ‘‘POWERS AND DUTIES’’ and inserting ‘‘EN7 FORCEMENT AUTHORITY OF DIRECTOR’’; 

8 (B) in subsection (a)—

9 (i) by striking all of the matter that 

10 precedes paragraph (1) and inserting the 

11 following: 

12 ‘‘The Director shall have the following powers:’’; 

13 (ii) by striking paragraphs (3) and 

14 (4); and 

15 (iii) by redesignating paragraphs (5), 

16 (6), and (7) as paragraphs (3), (4), and 

17 (5), respectively; and 

18 (C) by striking subsections (b), (c), and 

19 (d); 

20 (4) in section 8, in the section heading, by 

21 striking ‘‘BY THE BOARD’’; 

22 (5) in section 21 (12 U.S.C. 1441)—

23 (A) in subsection (b), in the heading for 

24 paragraph (8), by striking ‘‘FEDERAL HOUSING
30

•HR 2803 IH 

1 FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; 

2 and 

3 (B) in subsection (i), in the heading for 

4 paragraph (2), by striking ‘‘FEDERAL HOUSING

5 FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; 

6 (6) in section 23 (12 U.S.C. 1443), by striking 

7 ‘‘Board of Directors of the Federal Housing Finance 

8 Board’’ and inserting ‘‘Director’’; 

9 (7) by striking ‘‘the Finance Board’’ each place 

10 it appears and inserting ‘‘the Director’’; 

11 (8) by striking ‘‘Federal Housing Finance 

12 Board’’ each place it appears and inserting ‘‘Direc13 tor’’; 

14 (9) by striking ‘‘the Board’’ each place such 

15 term appears (except in subsections (a), (k)(2)(B)(i), 

16 and (n)(6)(C)(ii) of section 21A (12 U.S.C. 1441a), 

17 subsections (e)(7)(A) and (k)(7) of section 21B (12 

18 U.S.C. 1441b), and the first two places such term 

19 appears in section 22 (12 U.S.C. 1442)), and insert20 ing ‘‘the Director’’; 

21 (10) by striking ‘‘The Board’’ each place such 

22 term appears and inserting ‘‘The Director’’; 

23 (11) by striking ‘‘the Board’s’’ each place such 

24 term appears and inserting ‘‘the Director’s’’; and 
31

•HR 2803 IH 

1 (12) by striking ‘‘The Board’s’’ each place such 

2 term appears and inserting ‘‘The Director’s’’. 

3 (b) FINANCING CORPORATION.—The amendments 

4 made by this title shall not affect the appointment or term 

5 of any member, or of the chairperson, of the Directorate 

6 of the Financing Corporation who is serving on the date 

7 such amendments take effect. 

8 (c) REFERENCES TO FHFB.—Any reference in any 

9 Federal law enacted before the date of the enactment of 

10 this Act to the Federal Housing Finance Board shall be 

11 treated as referring to the Director of the Office of Hous12 ing Finance Oversight of the Department of the Treasury. 

13 (d) TECHNICAL AMENDMENT.—Section 111 of Pub14 lic Law 93–495 (12 U.S.C. 250) is amended by striking 

15 ‘‘Federal Housing Finance Board’’ and inserting ‘‘Direc16 tor of the Office of Housing Finance Oversight of the De17 partment of the Treasury’’. 

18 SEC. 105. AMENDMENTS TO TITLE 5, UNITED STATES CODE. 

19 (a) EXECUTIVE SCHEDULE PAY RATES.—Sub20 chapter II of chapter 53 of title 5, United States Code, 

21 is amended—

22 (1) in section 5313, by striking the item relat23 ing to the Director of the Office of Federal Housing 

24 Enterprise Oversight, Department of Housing and
32

•HR 2803 IH 

1 Urban Development and inserting the following new 

2 item: 

3 ‘‘Director of the Office of Housing Finance 

4 Oversight, Department of the Treasury.’’; 

5 (2) in section 5314, by striking the item relat6 ing to the Chairperson of the Federal Housing Fi7 nance Board; and 

8 (3) in section 5315, by striking the item relat9 ing to the Directors, Federal Housing Finance 

10 Board. 

11 (b) DEFINITION OF AGENCY.—Section 

12 3132(a)(1)(D) of title 5, United States Code, is amend13 ed—

14 (1) by striking ‘‘the Federal Housing Finance 

15 Board,’’; and 

16 (2) by striking ‘‘Office of Federal Housing En17 terprise Oversight of the Department of Housing 

18 and Urban Development’’ and inserting ‘‘Office of 

19 Housing Finance Oversight of the Department of 

20 the Treasury’’. 

21 SEC. 106. FINANCIAL INSTITUTIONS EXAMINATION COUN22 CIL. 

23 The Federal Financial Institutions Examination 

24 Council Act of 1978 is amended—

25 (1) in section 1003 (12 U.S.C. 3302)—
33

•HR 2803 IH 

1 (A) in paragraph (1), by inserting ‘‘Direc2 tor of the Office of Housing Finance Oversight 

3 of the Department of the Treasury,’’ after ‘‘Su4 pervision,’’; and 

5 (B) in paragraph (3), by striking ‘‘or a 

6 credit union;’’ and inserting ‘‘a credit union, a 

7 Federal home loan bank, or an enterprise (as 

8 such term is defined in section 1303 of the 

9 Housing and Community Development Act of 

10 1992 (12 U.S.C. 4502)).’’; 

11 (2) in section 1004 (12 U.S.C. 3303)—

12 (A) in paragraph (4), by inserting a semi13 colon at the end; 

14 (B) by redesignating paragraph (5) as 

15 paragraph (6); and 

16 (C) by inserting after paragraph (4) the 

17 following new paragraph: 

18 ‘‘(5) the Director of the Office of Housing Fi19 nance Oversight of the Department of the Treasury; 

20 and’’; and 

21 (3) in section 1006(d) (12 U.S.C. 3305(d)), by 

22 striking ‘‘and employees of the Federal Housing Fi23 nance Board’’. 
34

•HR 2803 IH 

1 SEC. 107. EFFECTIVE DATE. 

2 Except as specifically provided otherwise in this title, 

3 the amendments made by this title shall take effect on, 

4 and shall apply beginning on, the expiration of the 6-

5 month period beginning on the date of the enactment of 

6 this Act.

7 TITLE II—TRANSFER OF FUNC8 TIONS, PERSONNEL, AND 

9 PROPERTY 

10 SEC. 201. ABOLISHMENT OF OFHEO AND FEDERAL HOUS11 ING FINANCE BOARD. 

12 (a) IN GENERAL.—Effective upon the effective date 

13 under section 107, the following entities and positions are 

14 abolished: 

15 (1) The Office of Federal Housing Enterprise 

16 Oversight of the Department of Housing and Urban 

17 Development and the positions of the Director and 

18 Deputy Director of such Office. 

19 (2) The Federal Housing Finance Board, any 

20 Office within such Board (including the Office of Fi21 nance), and the Board of Directors of such Board. 

22 (b) DISPOSITION OF AFFAIRS.—

23 (1) IN GENERAL.—During the period beginning 

24 on the date of the enactment of this Act and ending 

25 on the effective date under section 107, the Director 

26 of the Office of Federal Housing Enterprise Over-
35

•HR 2803 IH 

1 sight and the Chairperson of the Federal Housing 

2 Finance Board shall, solely for the purpose of wind3 ing up the affairs of the Office of Federal Housing 

4 Enterprise Oversight and the Federal Housing Fi5 nance Board, respectively—

6 (A) manage the employees of such Office 

7 and Board and provide for the payment of the 

8 compensation and benefits of any such em9 ployee which accrue before the effective date of 

10 the transfer of such employee pursuant to sec11 tion 203; and 

12 (B) take any other action necessary for the 

13 purpose of winding up the affairs of the Office 

14 and the Board. 

15 (c) STATUS OF EMPLOYEES BEFORE TRANSFER.—

16 The amendments made by title I and the abolishment of 

17 the Office of Federal Housing Enterprise Oversight and 

18 the Federal Housing Finance Board under subsection (a) 

19 of this section may not be construed to affect the status 

20 of any employee of such Office or Board as employees of 

21 an agency of the United States for purposes of any other 

22 provision of law before the effective date of the transfer 

23 of any such employee pursuant to section 203. 

24 (d) USE OF PROPERTY AND SERVICES.—
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•HR 2803 IH 

1 (1) PROPERTY.—The Director of the Office of 

2 Housing Finance Oversight of the Department of 

3 the Treasury may use the property of the Office of 

4 Federal Housing Enterprise Oversight and the Fed5 eral Housing Finance Board to perform functions 

6 which have been transferred to such Director for 

7 such time as is reasonable to facilitate the orderly 

8 transfer of functions transferred pursuant to any 

9 other provision of this Act or any amendment made 

10 by this Act to any other provision of law. 

11 (2) AGENCY SERVICES.—Any agency, depart12 ment, or other instrumentality of the United States 

13 (including any Federal home loan bank), and any 

14 successor to any such agency, department, or instru15 mentality, which was providing supporting services 

16 to the Office of Federal Housing Enterprise Over17 sight or the Federal Housing Finance Board before 

18 the expiration of the period under subsection (a) in 

19 connection with functions that are transferred to the 

20 Director of the Office of Housing Finance Oversight 

21 of the Department of the Treasury shall—

22 (A) continue to provide such services, on a 

23 reimbursable basis, until the transfer of such 

24 functions is complete; and 
37

•HR 2803 IH 

1 (B) consult with any such agency to co2 ordinate and facilitate a prompt and reasonable 

3 transition. 

4 (e) SAVINGS PROVISIONS RELATING TO FHFB.—

5 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA6 TIONS NOT AFFECTED.—Subsection (a) shall not af7 fect the validity of any right, duty, or obligation of 

8 the United States, the Federal Housing Finance 

9 Board, or any other person, which—

10 (A) arises under or pursuant to the Fed11 eral Home Loan Bank Act or any other provi12 sion of law applicable with respect to such 

13 Board; and 

14 (B) existed on the day before the abolish15 ment under subsection (a) of this section. 

16 (2) CONTINUATION OF SUITS.—No action or 

17 other proceeding commenced by or against the Fed18 eral Housing Finance Board, or any Federal home 

19 loan bank with respect to any function of the Board 

20 which was delegated to employees of such bank, 

21 shall abate by reason of the enactment of this Act, 

22 except that the Director of the Office of Housing Fi23 nance Oversight of the Department of the Treasury 

24 shall be substituted for the Federal Housing Fi-
38

•HR 2803 IH 

1 nance Board or the Federal home loan bank as a 

2 party to any such action or proceeding. 

3 (f) SAVINGS PROVISIONS RELATING TO OFHEO.—

4 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA5 TIONS NOT AFFECTED.—Subsection (a) shall not af6 fect the validity of any right, duty, or obligation of 

7 the United States, the Director of the Office of Fed8 eral Housing Enterprise Oversight, or any other per9 son, which—

10 (A) arises under or pursuant to title XIII 

11 of the Housing and Community Development 

12 Act of 1992, the Federal National Mortgage 

13 Association Charter Act, the Federal Home 

14 Loan Mortgage Corporation Act, or any other 

15 provision of law applicable with respect to such 

16 Office; and 

17 (B) existed on the day before the abolish18 ment under subsection (a) of this section. 

19 (2) CONTINUATION OF SUITS.—No action or 

20 other proceeding commenced by or against the Di21 rector of the Office of Federal Housing Enterprise 

22 Oversight shall abate by reason of the enactment of 

23 this Act, except that the Director of the Office of 

24 Housing Finance Oversight of the Department of 
39

•HR 2803 IH 

1 the Treasury shall be substituted for the Director as 

2 a party to any such action or proceeding. 

3 SEC. 202. CONTINUATION AND COORDINATION OF CERTAIN 

4 REGULATIONS. 

5 All regulations, orders, determinations, and resolu6 tions that—

7 (1) were issued, made, prescribed, or allowed to 

8 become effective by—

9 (A) the Office of Federal Housing Enter10 prise Oversight; 

11 (B) the Federal Housing Finance Board; 

12 (C) the Secretary of Housing and Urban 

13 Development and that relate to the Secretary’s 

14 authority under title XIII of the Housing and 

15 Community Development Act of 1992, the Fed16 eral National Mortgage Association Charter 

17 Act, or the Federal Home Loan Mortgage Cor18 poration Act; or 

19 (D) a court of competent jurisdiction and 

20 that relate to functions transferred by this Act; 

21 and 

22 (2) are in effect on the date of the abolishment 

23 under section 201(a) of this Act, 

24 shall remain in effect according to the terms of such regu25 lations, orders, determinations, and resolutions and shall
40

•HR 2803 IH 

1 be enforceable by or against the Director of the Office of 

2 Housing Finance Oversight of the Department of the 

3 Treasury until modified, terminated, set aside, or super4 seded in accordance with applicable law by such Director, 

5 any court of competent jurisdiction, or operation of law. 

6 SEC. 203. TRANSFER AND RIGHTS OF EMPLOYEES OF ABOL7 ISHED AGENCIES. 

8 (a) TRANSFER.—Each employee of the Office of Fed9 eral Housing Enterprise Oversight and each employee of 

10 the Federal Housing Finance Board shall be transferred 

11 to the Office of Housing Finance Oversight of the Depart12 ment of the Treasury for employment no later than the 

13 date of the abolishment under section 201(a) of this Act 

14 and such transfer shall be deemed a transfer of function 

15 for the purpose of section 3503 of title 5, United States 

16 Code. 

17 (b) GUARANTEED POSITIONS.—Each employee trans18 ferred under subsection (a) shall be guaranteed a position 

19 with the same status, tenure, grade, and pay as that held 

20 on the day immediately preceding the transfer. Each such 

21 employee holding a permanent position shall not be invol22 untarily separated or reduced in grade or compensation 

23 for 18 months after the date of transfer, except for cause 

24 or, if the employee is a temporary employee, separated in 

25 accordance with the terms of the appointment. 
41

•HR 2803 IH 

1 (c) APPOINTMENT AUTHORITY FOR EXCEPTED AND

2 SENIOR EXECUTIVE SERVICE EMPLOYEES.—

3 (1) IN GENERAL.—In the case of employees oc4 cupying positions in the excepted service or the Sen5 ior Executive Service, any appointment authority es6 tablished pursuant to law or regulations of the Of7 fice of Personnel Management for filling such posi8 tions shall be transferred, subject to paragraph (2). 

9 (2) DECLINE OF TRANSFER.—The Director of 

10 the Office of Housing Finance Oversight of the De11 partment of the Treasury may decline a transfer of 

12 authority under paragraph (1) (and the employees 

13 appointed pursuant thereto) to the extent that such 

14 authority relates to positions excepted from the com15 petitive service because of their confidential, policy16 making, policy-determining, or policy-advocating 

17 character, and noncareer positions in the Senior Ex18 ecutive Service (within the meaning of section 

19 3132(a)(7) of title 5, United States Code). 

20 (d) REORGANIZATION.—If the Director of the Office 

21 of Housing Finance Oversight of the Department of the 

22 Treasury determines, after the end of the 1-year period 

23 beginning on the date the transfer of functions to such 

24 Office is completed, that a reorganization of the combined 

25 workforce is required, that reorganization shall be deemed 
42

•HR 2803 IH 

1 a major reorganization for purposes of affording affected 

2 employees retirement under section 8336(d)(2) or 

3 8414(b)(1)(B) of title 5, United States Code. 

4 (e) EMPLOYEE BENEFIT PROGRAMS.—Any employee 

5 accepting employment with the Office of Housing Finance 

6 Oversight of the Department of the Treasury as a result 

7 of such transfer may retain, for 18 months after the date 

8 such transfer occurs, membership in any employee benefit 

9 program of the Federal Housing Finance Board or the 

10 Office of Federal Housing Enterprise Oversight, as appli11 cable, including insurance, to which such employee belongs 

12 on the date of the abolishment under section 201(a) if—

13 (1) the employee does not elect to give up the 

14 benefit or membership in the program; and 

15 (2) the benefit or program is continued by the 

16 Director of the Office of Housing Finance Oversight.

17 The difference in the costs between the benefits which 

18 would have been provided by such agency or entity and 

19 those provided by this section shall be paid by the Director 

20 of the Office of Housing Finance Oversight. If any em21 ployee elects to give up membership in a health insurance 

22 program or the health insurance program is not continued 

23 by such Director, the employee shall be permitted to select 

24 an alternate Federal health insurance program within 30 
43

•HR 2803 IH 

1 days of such election or notice, without regard to any other 

2 regularly scheduled open season. 

3 (f) SENIOR EXECUTIVE SERVICE EMPLOYEES.—A 

4 transferring employee in the Senior Executive Service 

5 shall be placed in a comparable position at the agency or 

6 entity to which such employee is transferred. 

7 (g) NOTICE OF POSITIONS.—Transferring employees 

8 shall receive notice of their position assignments not later 

9 than 120 days after the effective date of their transfer. 

10 SEC. 204. TRANSFER OF PROPERTY AND FACILITIES. 

11 Upon the abolishment under section 201(a), all prop12 erty of the Office of Federal Housing Enterprise Oversight 

13 and the Federal Housing Finance Board shall transfer to 

14 the Director of the Office of Housing Finance Oversight 

15 of the Department of the Treasury.

Æ