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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2803 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing Finance 
Regulatory Restructuring Act of 2003''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
  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.

  TITLE I--REGULATION OF FEDERAL HOUSING ENTERPRISES AND FEDERAL HOME 
                               LOAN BANKS

SEC. 101. ESTABLISHMENT OF OFFICE OF HOUSING FINANCE OVERSIGHT.

    (a) In General.--Part 1 of Subtitle A of title XIII of the Housing 
and Community Development Act of 1992 is amended by striking sections 
1311 and 1312 (12 U.S.C. 4511, 4512) and inserting the following new 
sections:

``SEC. 1311. ESTABLISHMENT OF OFFICE OF HOUSING FINANCE OVERSIGHT.

    ``(a) Establishment.--There is established the Office of Housing 
Finance Oversight, which shall be a bureau in the Department of the 
Treasury. The Office shall succeed to the authority of the Director of 
the Office of Federal Housing Enterprise Oversight of the Department of 
Housing and Urban Development and the Federal Housing Finance Board, 
and the general regulatory and any other authority of the Secretary of 
Housing and Urban Development with respect to the enterprises (except 
as specifically provided otherwise in this Act).
    ``(b) Prohibition of Merger of Office.--Notwithstanding any other 
provision of this law, the Secretary of the Treasury may not merge or 
consolidate the Office, or any of the functions or responsibilities of 
the Office, with any other office or bureau of the Department of the 
Treasury or with any other function or program administered by the 
Secretary.

``SEC. 1312. DIRECTOR.

    ``(a) Establishment of Position.--
            ``(1) In general.--There is established the position of the 
        Director of the Office of Housing Finance Oversight, who shall 
        be the head of the Office of Housing Finance Oversight and 
        shall be subject to the general oversight of the Secretary of 
        the Treasury.
            ``(2) Authority to prescribe regulations.--The Director may 
        prescribe such regulations and issue such orders as the 
        Director may determine to be necessary for carrying out this 
        Act and the functions assigned to the Director under the 
        Federal National Mortgage Association Charter Act and the 
        Federal Home Loan Mortgage Corporation Act.
            ``(3) Autonomy of director.--The Secretary of the Treasury 
        may not intervene in any matter or proceeding before the 
        Director (including agency enforcement actions) unless 
        otherwise specifically provided by law.
            ``(4) Rulemaking.--The Secretary of the Treasury may not 
        delay or prevent the issuance of any rule or the promulgation 
        of any regulation by the Director.
    ``(b) Appointment; Term.--
            ``(1) Appointment.--The Director shall be appointed by the 
        President, by and with the advice and consent of the Senate, 
        from among individuals who are citizens of the United States.
            ``(2) Term.--The Director shall be appointed for a term of 
        5 years.
            ``(3) Vacancy.--A vacancy in the position of Director which 
        occurs before the expiration of the term for which a Director 
        was appointed shall be filled in the manner established in 
        paragraph (1) and the Director appointed to fill such vacancy 
        shall be appointed only for the remainder of such term.
            ``(4) Service after end of term.--An individual may serve 
        as Director after the expiration of the term for which 
        appointed until a successor Director has been appointed.
            ``(5) Transitional provision.--Notwithstanding paragraphs 
        (1) and (2), the Director of the Office of Federal Housing 
        Enterprise Oversight of the Department of Housing and Urban 
        Development on the effective date under section 107 of the 
        Housing Finance Regulatory Restructuring Act of 2003 shall be 
        the Director until the date on which that individual's term as 
        Director of the Office of Federal Housing Enterprise Oversight 
        would have expired.
    ``(c) Prohibition on Financial Interests.--The Director shall not 
have a direct or indirect financial interest in any enterprise, any 
member of any Federal home loan bank, or any holding company of any 
such member.
    ``(d) Deputy Directors.--
            ``(1) In general.--The Office shall have two Deputy 
        Directors. An individual may not be appointed as Deputy 
        Director if the individual has served as an executive officer 
        or director of an enterprise, a Federal home loan bank, or a 
        member of a Federal home loan bank at any time during the 3-
        year period ending upon the appointment of such individual as 
        Deputy Director. In the event of the death, resignation, 
        sickness, or absence of the Director, the Deputy Director for 
        Safety and Soundness shall serve as acting Director until the 
        return of the Director or the appointment of a successor 
        pursuant to subsection (b).
            ``(2) Deputy director for safety and soundness.--One of the 
        Deputy Directors referred to in paragraph (1) shall be the 
        Deputy Director for Safety and Soundness, who shall be 
        appointed by the Director from among individuals who are 
        citizens of the United States and have a demonstrated 
        understanding of finance. The Director shall assign to the 
        Deputy Director for Safety and Soundness all functions, powers, 
        and duties of the Director--
                    ``(A) with respect to the enterprises, that--
                            ``(i) before the effective date of the 
                        Housing Finance Regulatory Restructuring Act of 
                        2003, were functions, powers, or duties of the 
                        Director of the Office of Federal Housing 
                        Enterprise Oversight of the Department of 
                        Housing and Urban Development; or
                            ``(ii) are primarily related to the duty 
                        under section 1313; and
                    ``(B) with respect to the Federal home loan banks, 
                that--
                            ``(i) before the effective date of the 
                        Housing Finance Regulatory Restructuring Act of 
                        2003, were functions, powers, or duties of the 
                        Federal Housing Finance Board; or
                            ``(ii) are related to the supervision, 
                        regulation, or oversight of the Federal home 
                        loan banks.
            ``(3) Deputy director for housing enterprise charter 
        compliance.--One of the Deputy Directors referred to in 
        paragraph (1) shall be the Deputy Director for Housing 
        Enterprise Charter Compliance, who shall be appointed by the 
        Director from among individuals who are citizens of the United 
        States and have a demonstrated understanding of finance. The 
        Director shall assign to the Deputy Director for Housing 
        Enterprise Charter Compliance all functions, powers, and duties 
        of the Director with respect to the enterprises that--
                    ``(A) before the effective date of the Housing 
                Finance Regulatory Restructuring Act of 2003, were the 
                functions, powers, or duties of the Secretary of 
                Housing and Urban Development; or
                    ``(B) are primarily related to compliance of the 
                enterprises with their chartering Acts.
    ``(e) Delegation Authority.--
            ``(1) In general.--Subject only to the limitations in 
        subsection (d) and paragraph (2) of this subsection, the 
        Director may delegate to any employee, representative, or agent 
        any power of the Director.
            ``(2) Limitation.--Notwithstanding paragraph (1), the 
        Director shall not, directly or indirectly, after October 10, 
        1989, delegate to any Federal home loan bank or to any officer, 
        director, or employee of a Federal home loan bank, any power 
        involving examining, supervising, taking enforcement action 
        with respect to, or otherwise regulating any savings 
        association, savings and loan holding company, or other person 
        subject to regulation by the Director.''.
    (b) Appointment of Director.--Notwithstanding the effective date 
under section 107 or any other provision of law, the President may, at 
any time after the date of the enactment of this Act, appoint an 
individual to serve as the Director of the Office of Housing Finance 
Oversight in accordance with the provisions of the amendment made by 
subsection (a) of this section.
    (c) Personnel.--Section 1315 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 4515) is amended--
            (1) in subsection (a)--
                    (A) by striking ``The'' and inserting ``Subject to 
                title II of the Housing Finance Regulatory 
                Restructuring Act of 2003, the''; and
                    (B) by adding at the end the following new 
                sentence: ``Notwithstanding any other provision of this 
                section, in no event shall the Director delegate any 
                function to any employee, administrative unit of any 
                Federal home loan bank, or joint office of the Federal 
                Home Loan Bank System.'';
            (2) in subsection (d)--
                    (A) in the subsection heading, by striking ``HUD'' 
                and inserting ``Department of the Treasury''; and
                    (B) by striking ``Housing and Urban Development'' 
                and inserting ``the Treasury''; and
            (3) by striking subsection (f).
    (d) Funding.--Section 1316 of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4516) is amended--
            (1) by striking subsection (a) and inserting the following 
        new subsection:
    ``(a) Annual Assessments.--
            ``(1) Director.--The Director shall establish and collect 
        from the enterprises annual assessments in an amount not 
        exceeding the amount sufficient to provide for reasonable costs 
        and expenses of the Director, with respect to regulation and 
        supervision of the enterprises, including the expenses of any 
        examinations under section 1317 and the expenses of obtaining 
        any reviews under section 1319.
            ``(2) Secretary of hud.--The Secretary of Housing and Urban 
        Development shall establish and collect from the enterprises 
        annual assessments in an amount not exceeding the amount 
        sufficient to provide for reasonable costs and expenses of the 
        Department of Housing and Urban Development in carrying out the 
        responsibilities of the Secretary of Housing and Urban 
        Development under this subtitle, the Federal National Mortgage 
        Association Charter Act, and the Federal Home Loan Mortgage 
        Corporation Act.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by inserting ``and to the Secretary of 
                        Housing and Urban Development'' after 
                        ``Director'';
                            (ii) by inserting ``paragraph (1) and (2), 
                        respectively, of'' before ``subsection (a)''; 
                        and
                            (iii) by inserting ``under such paragraph'' 
                        after ``total annual assessment''; and
                    (B) in paragraph (2)--
                            (i) by striking ``The annual assessment'' 
                        and inserting ``Each of the annual assessments 
                        pursuant to paragraphs (1) and (2) of 
                        subsection (a)''; and
                            (ii) by realigning paragraph (2) two ems 
                        from the left margin, so as to align the left 
                        margin of such paragraph with the left margins 
                        of paragraphs (1) and (3);
            (3) in subsection (c)--
                    (A) by inserting ``for an assessment under 
                subsection (a)(1) that are'' after ``The semiannual 
                payments''; and
                    (B) by adding at the end the following new 
                sentence: ``The Director may adjust the amounts of any 
                semiannual assessments for an assessment under 
                subsection (a)(1) that are to be paid pursuant to 
                subsection (b) by an enterprise, as necessary in the 
                discretion of the Director, to ensure that the costs of 
                enforcement activities under subtitles B and C for an 
                enterprise are borne only by that enterprise.'';
            (4) in subsection (d)--
                    (A) by inserting ``by the Director or by the 
                Secretary of Housing and Urban Development'' before 
                ``from an enterprise''; and
                    (B) by inserting ``by the Director or by the 
                Secretary of Housing and Urban Development, as 
                applicable,'' before ``for the following year'';
            (5) by striking subsection (f) and inserting the following 
        new subsecton:
    ``(f) Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund to be known as the Federal Housing 
        Enterprises Oversight Fund.
            ``(2) Deposits.--Notwithstanding any other provision of 
        law, the following amounts shall be deposited in the Fund:
                    ``(A) Director's assessments on enterprises.--Any 
                assessments collected by the Director from the 
                enterprises pursuant to this section, which shall be 
                deposited in an account of the Director for the 
                enterprises.
                    ``(B) Directors assessments on federal home loan 
                banks.--Any receipts of the Director derived from 
                assessments levied upon the Federal home loan banks 
                pursuant to section 18(b) of the Federal Home Loan Bank 
                Act and from other sources (other than receipts from 
                the sale of consolidated Federal home loan bank bonds 
                and debentures issued under section 11 of such Act), 
                which shall be deposited in an account of the Director 
                for the Federal home loan banks.
                    ``(C) Secretary's assessments on enterprises.--Any 
                amounts collected by the Secretary of Housing and Urban 
                Development, which shall be deposited in an account of 
                such Secretary.
            ``(3) Availability.--Any amounts in the Fund are hereby 
        made available, without fiscal year limitation, as follows:
                    ``(A) Director's responsibilities for 
                enterprises.--To the Director, to the extent of amounts 
                in the Director's account established pursuant to 
                paragraph (2)(A), for carrying out the supervisory and 
                regulatory responsibilities of the Director, with 
                respect to the enterprises, including any necessary 
                administrative and nonadministrative expenses of the 
                Director in carrying out the purposes of this title, 
                the Federal National Mortgage Association Charter Act, 
                and the Federal Home Loan Mortgage Corporation Act.
                    ``(B) Director's responsibilities for federal home 
                loan banks.--To the Director, to the extent of amounts 
                in the Director's account established pursuant to 
                paragraph (2)(B), for carrying out the supervisory and 
                regulatory responsibilities of the Director, with 
                respect to the Federal home loan banks.
                    ``(C) Secretary's responsiblities for 
                enterprises.--To the Secretary of Housing and Urban 
                Development, to the extent of amounts in the 
                Secretary's account established pursuant to paragraph 
                (2)(C), for carrying out the regulatory 
                responsibilities of the Secretary, with respect to the 
                enterprises.''; and
            (6) in subsection (g)--
                    (A) by striking paragraphs (1) and (2) and 
                inserting the following new paragraphs:
            ``(1) Financial operating plans and forecasts.--Before the 
        beginning of each fiscal year--
                    ``(A) the Director shall submit a copy of the 
                financial operating plans and forecasts for the 
                Director, with respect to regulation and supervision of 
                the enterprises, to the Secretary of the Treasury and 
                the Director of the Office of Management and Budget; 
                and
                    ``(B) the Secretary of Housing and Urban 
                Development shall submit, to the Director, a copy of 
                the financial operating plans and forecasts for the 
                Department of Housing and Urban Development, with 
                respect to responsibilities and activities of the 
                Secretary under this subtitle.
            ``(2) Reports of operations.--As soon as practicable after 
        the end of each fiscal year and each quarter thereof--
                    ``(A) the Director shall submit a copy of the 
                report of the results of the operations of the 
                Director, with respect to regulation and supervision of 
                the enterprises, during such period to the Secretary of 
                the Treasury and the Director of the Office of 
                Management and Budget; and
                    ``(B) the Secretary of Housing and Urban 
                Development shall submit, to the Director, a report of 
                the results of the operations of the Department of 
                Housing and Urban Development, with respect to 
                responsibilities and activities of the Secretary under 
                this subtitle.''; and
                    (B) in paragraph (3)--
                            (i) by striking ``(A)'';
                            (ii) by striking ``, and (B)'' and 
                        inserting the following: ``. The annual plans, 
                        forecasts, and reports required under 
                        paragraphs (1)(B) and (2)(B) shall be 
                        included''; and
                            (iii) by inserting ``of Housing and Urban 
                        Development'' before the period at the end.
    (e) Public Disclosure of Final Orders and Agreements.--Section 
1319C of the Housing and Community Development Act of 1992 (12 U.S.C. 
4522) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``or the Federal 
                home loan banks, as the case may be'' before the 
                semicolon; and
                    (B) in paragraph (2), by inserting ``or under the 
                authority of the Director under the Federal Home Loan 
                Bank Act'' after ``subtitle C'';
            (2) in subsection (c), by inserting ``or the Federal home 
        loan banks'' after ``the enterprise''; and
            (3) in subsection (e), by inserting ``or under the 
        authority of the Director under the Federal Home Loan Bank 
        Act'' before the period at the end.
    (f) Limitation on Subsequent Employment.--Section 1319D of the 
Housing and Community Development Act of 1992 (12 U.S.C. 4523) is 
amended by inserting ``or any Federal home loan bank'' after ``an 
enterprise''.
    (g) Information, Records, and Meetings.--Section 1319F of the 
Housing and Community Development Act of 1992 (12 U.S.C. 4525) is 
amended by striking ``Code'' and all that follows through ``agencies'' 
and inserting ``Code, the Office shall be considered an agency''.
    (h) Regulations.--Section 1319G of the Housing and Community 
Development Act of 1992 (12 U.S.C. 4526) is amended by striking 
subsection (a) and inserting the following new subsection:
    ``(a) Authority.--The Director shall issue any regulations and 
orders necessary to carry out the duties of the Director and to carry 
out this title and the responsibilities of the Director under the 
Federal National Mortgage Association Charter Act, the Federal Home 
Loan Mortgage Corporation Act, and the Federal Home Loan Bank Act and 
to ensure that the purposes of this title and such Acts are 
accomplished.''.
    (i) Definitions.--Section 1303 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 4502) is amended--
            (1) in paragraph (5), by striking ``Office of Federal 
        Housing Enterprise Oversight of the Department of Housing and 
        Urban Development'' and inserting ``Office of Housing Finance 
        Oversight of the Department of the Treasury'';
            (2) in paragraphs (8), (10), and (19), by striking 
        ``Secretary'' each place such term appears and inserting 
        ``Director'';
            (3) in paragraph (14), by striking ``Office of Federal 
        Housing Enterprise Oversight of the Department of Housing and 
        Urban Development'' and inserting ``Office of Housing Finance 
        Oversight of the Department of the Treasury'';
            (4) by striking paragraph (15); and
            (5) by redesignating paragraphs (16) through (19) as 
        paragraphs (15) through (18), respectively.

SEC. 102. FINANCIAL SAFETY AND SOUNDNESS OF ENTERPRISES.

    (a) In General.--Subtitle A of title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4513) is amended--
            (1) in section 1313 (12 U.S.C. 4513)--
                    (A) by striking the section designation and section 
                heading and all that follows through the end of 
                subsection (d) and inserting the following:

``SEC. 1313. FINANCIAL SAFETY AND SOUNDNESS DUTY.

    ``(a) Duty.--It shall be the duty of the Director to ensure that 
the enterprises and the Federal home loan banks are adequately 
capitalized and operating safely, in accordance with this title.'';
                    (B) in subsection (e), by inserting ``of the 
                Treasury'' after ``Secretary'';
                    (C) by redesignating subsection (e) as subsection 
                (b); and
                    (D) by adding at the end the following new 
                subsections:
    ``(b) Enforcement Authority.--In addition to any other authority of 
the Director to take an enforcement or remedial action with respect to 
an enterprise or a Federal home loan bank, the Director may issue 
cease-and-desist orders, temporary cease-and-desist orders (including 
orders to take affirmative action), and suspension and removal orders, 
and assess civil money penalties, with respect to the enterprises and 
the Federal Home Loan Banks to the same extent and under the same 
procedures and conditions as the appropriate Federal banking agencies 
are authorized under section 8 of the Federal Deposit Insurance Act (12 
U.S.C. 1818) with respect to insured depository institutions.
    ``(c) Safety and Soundness Standards.--The Director shall prescribe 
safety and soundness standards with respect to the enterprises and the 
Federal home loan banks pursuant to the same authority under section 39 
of the Federal Deposit Insurance Act (12 U.S.C. 1831s) and that shall 
have the same force and effect with respect to the enterprises and the 
Federal home loan banks as is provided under such section for safety 
and soundness standards prescribed by the appropriate Federal banking 
agencies for insured depository institutions.''; and
            (2) by striking the designation and heading for such 
        subtitle and for part 1 of such subtitle and inserting the 
        following:

                ``Subtitle A--Supervision and Regulation

                ``PART 1--ESTABLISHMENT OF REGULATOR''.

    (b) Conforming Amendments to Housing and Community Development Act 
of 1992.--Title XIII of the Housing and Community Development Act of 
1992 is amended--
            (1) in section 1361(f) (12 U.S.C. 4611(f)), by inserting 
        ``of the Treasury'' after ``Secretary'';
            (2) in section 1367(c) (12 U.S.C. 4617(c)), by striking 
        paragraph (1); and
            (3) by striking section 1383 (12 U.S.C. 1451 note).
    (c) Amendments to Federal National Mortgage Association Charter 
Act.--The Federal National Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.) is amended by striking ``Director of the Office of 
Federal Housing Enterprise Oversight of the Department of Housing and 
Urban Development'' each place such term appears and inserting 
``Director of the Office of Housing Finance Oversight of the Department 
of the Treasury'' in--
            (1) section 303(c)(2) (12 U.S.C. 1718(c)(2));
            (2) section 309(d)(3)(B) (12 U.S.C. 1723a(d)(3)(B)); and
            (3) section 309(k)(1).
    (d) Amendments to Federal Home Loan Mortgage Corporation Act.--The 
Federal Home Loan Mortgage Corporation Act is amended--
            (1) by striking ``Director of the Office of Federal Housing 
        Enterprise Oversight of the Department of Housing and Urban 
        Development'' each place such term appears and inserting 
        ``Director of the Office of Housing Finance Oversight of the 
        Department of the Treasury'' in--
                    (A) section 303(b)(2) (12 U.S.C. 1452(b)(2));
                    (B) section 303(h)(2) (12 U.S.C. 1452(h)(2)); and
                    (C) section 307(c)(1) (12 U.S.C. 1456(c)(1)); and
            (2) in section 306(i) (12 U.S.C. 1455(i))--
                    (A) by striking ``section 1316(c)'' and inserting 
                ``section 306(c)''; and
                    (B) by striking ``section 106'' and inserting 
                ``section 1316''.
    (e) Amendment to Title 18, United States Code.--Section 1905 of 
title 18, United States Code, is amended by striking ``Office of 
Federal Housing Enterprise Oversight'' and inserting ``Office of 
Housing Finance Oversight of the Department of the Treasury''.
    (f) Amendments to Flood Disaster Protection Act of 1973.--Section 
102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 
4012a) is amended by striking ``Director of the Office of Federal 
Housing Enterprise Oversight of the Department of Housing and Urban 
Development'' and inserting ``Director of the Office of Housing Finance 
Oversight of the Department of the Treasury''.

SEC. 103. CHARTER COMPLIANCE OF ENTERPRISES.

    (a) Authority of Director.--Part 2 of subtitle A of title XIII of 
the Housing and Community Development Act of 1992 (12 U.S.C. 4541 et 
seq.) is amended--
            (1) by striking the designation and heading for the part 
        and subpart A and inserting the following:

                 ``PART 2--CHARTER COMPLIANCE AUTHORITY

                 ``Subpart A--Authority of Director'';

            (2) by striking section 1321 (12 U.S.C. 4541);
            (3) in section 1328--
                    (A) in the section heading, by striking ``by 
                secretary''; and
                    (B) by striking ``Banking, Finance and Urban 
                Affairs'' and inserting ``Financial Services''; and
            (4) in subpart A, by striking ``Secretary'' each place such 
        term appears (except in section 1324) and inserting 
        ``Director''.
    (b) Authority of Secretary of HUD for Housing Goals.--
            (1) In general.--Section 1331 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 4561) is amended--
                    (A) in the first sentence of subsection (a), by 
                inserting ``of Housing and Urban Development'' after 
                ``The Secretary''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(d) Definition.--For purposes of this part and subpart B, the 
term `Secretary' means the Secretary of Housing and Urban 
Development.''.
            (2) Annual report on housing goals.--Section 1324 of the 
        Housing and Community Development Act of 1992 (12 U.S.C. 4544) 
        is amended by inserting ``of Housing and Urban Development'' 
        after ``Secretary'', each place such term appears.
    (c) Amendments to Federal National Mortgage Association Charter 
Act.--The Federal National Mortgage Association Charter Act is 
amended--
            (1) in section 302(b)(6) (12 U.S.C. 1717(b)(6)), by 
        striking ``Secretary'' and inserting ``Director of the Office 
        of Housing Finance Oversight of the Department of the 
        Treasury'';
            (2) in section 309(m) (12 U.S.C. 1723a(m))--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``Secretary'' the first 
                place such term appears and inserting ``Director of the 
                Office of Housing Finance Oversight of the Department 
                of the Treasury''; and
                    (B) by striking ``Secretary'' each other place such 
                term appears and inserting ``Director''; and
            (3) in section 309(n) (12 U.S.C. 1723a(n))--
                    (A) in paragraph (1)--
                            (i) by inserting ``the Director of the 
                        Office of Housing Finance Oversight of the 
                        Department of the Treasury,'' after 
                        ``Senate,''; and
                            (ii) by inserting ``of Housing and Urban 
                        Development'' after ``Secretary''; and
                    (B) in paragraphs (2) and (3), by striking 
                ``Secretary'' each place such term appears, and 
                inserting ``Director''.
    (d) Amendments to Federal Home Loan Mortgage Corporation Act.--The 
Federal Home Loan Mortgage Corporation Act is amended--
            (1) in section 305(c) (12 U.S.C. 1454(c)), by striking 
        ``Secretary'' and inserting ``Director of the Office of Housing 
        Finance Oversight of the Department of the Treasury'';
            (2) in section 307(e) (12 U.S.C. 1456(e))--
                    (A) in paragraph (1), in the matter preceding 
                subparagraph (A), by striking ``Secretary'' the first 
                place such term appears and inserting ``Director of the 
                Office of Housing Finance Oversight of the Department 
                of the Treasury''; and
                    (B) by striking ``Secretary'' each other place such 
                term appears and inserting ``Director''; and
            (3) in section 307(f) (12 U.S.C. 1456(f))--
                    (A) in paragraph (1)--
                            (i) by inserting ``the Director of the 
                        Office of Housing Finance Oversight of the 
                        Department of the Treasury,'' after 
                        ``Senate,''; and
                            (ii) by inserting ``of Housing and Urban 
                        Development'' after ``Secretary''; and
                    (B) in paragraphs (2) and (3), by striking 
                ``Secretary'' each place such term appears, and 
                inserting ``Director''.
    (e) Amendments to Housing and Community Development Act of 1980.--
The Housing and Community Development Act of 1980 is amended--
            (1) in section 330 (12 U.S.C. 1723a note)--
                    (A) by striking ``Secretary of Housing and Urban 
                Development or the Secretary of the Treasury'' each 
                place such term appears and inserting ``Director of the 
                Office of Housing Finance Oversight of the Department 
                of the Treasury''; and
                    (B) by striking ``, as the case may be,''; and
            (2) in subsections (a)(2) and (b)(2) of section 339 (12 
        U.S.C. 1717 note), by striking ``Secretary of Housing and Urban 
        Development'' each place such term appears and inserting 
        ``Director of the Office of Housing Finance Oversight of the 
        Department of the Treasury''.
    (f) Conforming Amendment.--Part 3 of subtitle A of title XIII of 
the Housing and Community Development Act of 1992 (Public Law 102-550; 
106 Stat. 3969) is hereby repealed.

SEC. 104. SUPERVISION OF FEDERAL HOME LOAN BANK SYSTEM.

    (a) Federal Home Loan Bank Act.--The Federal Home Loan Bank Act is 
amended--
            (1) in section 2 (12 U.S.C. 1422), by striking paragraph 
        (1) and inserting the following new paragraph:
            ``(1) Director.--The term `Director' means the Director of 
        the Office of Housing Finance Oversight of the Department of 
        the Treasury established under title XIII of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 4501 et seq.).'';
            (2) by striking section 2A (12 U.S.C. 1422a) and inserting 
        the following new section:

``SEC. 2A. SUPERVISION AND REGULATION OF BANKS.

    ``The Federal home loan banks shall, to the extent provided in 
title XIII of the Housing and Community Development Act of 1992 (12 
U.S.C. 4501 et seq.) and this Act, be subject to the supervision and 
regulation of the Director of the Office of Housing Finance Oversight 
of the Department of the Treasury.'';
            (3) in section 2B (12 U.S.C. 1422b)--
                    (A) in the section heading, by striking ``powers 
                and duties'' and inserting ``enforcement authority of 
                director'';
                    (B) in subsection (a)--
                            (i) by striking all of the matter that 
                        precedes paragraph (1) and inserting the 
                        following:
    ``The Director shall have the following powers:'';
                            (ii) by striking paragraphs (3) and (4); 
                        and
                            (iii) by redesignating paragraphs (5), (6), 
                        and (7) as paragraphs (3), (4), and (5), 
                        respectively; and
                    (C) by striking subsections (b), (c), and (d);
            (4) in section 8, in the section heading, by striking ``by 
        the board'';
            (5) in section 21 (12 U.S.C. 1441)--
                    (A) in subsection (b), in the heading for paragraph 
                (8), by striking ``federal housing finance board'' and 
                inserting ``director''; and
                    (B) in subsection (i), in the heading for paragraph 
                (2), by striking ``Federal housing finance board'' and 
                inserting ``Director'';
            (6) in section 23 (12 U.S.C. 1443), by striking ``Board of 
        Directors of the Federal Housing Finance Board'' and inserting 
        ``Director'';
            (7) by striking ``the Finance Board'' each place it appears 
        and inserting ``the Director'';
            (8) by striking ``Federal Housing Finance Board'' each 
        place it appears and inserting ``Director'';
            (9) by striking ``the Board'' each place such term appears 
        (except in subsections (a), (k)(2)(B)(i), and (n)(6)(C)(ii) of 
        section 21A (12 U.S.C. 1441a), subsections (e)(7)(A) and (k)(7) 
        of section 21B (12 U.S.C. 1441b), and the first two places such 
        term appears in section 22 (12 U.S.C. 1442)), and inserting 
        ``the Director'';
            (10) by striking ``The Board'' each place such term appears 
        and inserting ``The Director'';
            (11) by striking ``the Board's'' each place such term 
        appears and inserting ``the Director's''; and
            (12) by striking ``The Board's'' each place such term 
        appears and inserting ``The Director's''.
    (b) Financing Corporation.--The amendments made by this title shall 
not affect the appointment or term of any member, or of the 
chairperson, of the Directorate of the Financing Corporation who is 
serving on the date such amendments take effect.
    (c) References to FHFB.--Any reference in any Federal law enacted 
before the date of the enactment of this Act to the Federal Housing 
Finance Board shall be treated as referring to the Director of the 
Office of Housing Finance Oversight of the Department of the Treasury.
    (d) Technical Amendment.--Section 111 of Public Law 93-495 (12 
U.S.C. 250) is amended by striking ``Federal Housing Finance Board'' 
and inserting ``Director of the Office of Housing Finance Oversight of 
the Department of the Treasury''.

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

    (a) Executive Schedule Pay Rates.--Subchapter II of chapter 53 of 
title 5, United States Code, is amended--
            (1) in section 5313, by striking the item relating to the 
        Director of the Office of Federal Housing Enterprise Oversight, 
        Department of Housing and Urban Development and inserting the 
following new item:
            ``Director of the Office of Housing Finance Oversight, 
        Department of the Treasury.'';
            (2) in section 5314, by striking the item relating to the 
        Chairperson of the Federal Housing Finance Board; and
            (3) in section 5315, by striking the item relating to the 
        Directors, Federal Housing Finance Board.
    (b) Definition of Agency.--Section 3132(a)(1)(D) of title 5, United 
States Code, is amended--
            (1) by striking ``the Federal Housing Finance Board,''; and
            (2) by striking ``Office of Federal Housing Enterprise 
        Oversight of the Department of Housing and Urban Development'' 
        and inserting ``Office of Housing Finance Oversight of the 
        Department of the Treasury''.

SEC. 106. FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

    The Federal Financial Institutions Examination Council Act of 1978 
is amended--
            (1) in section 1003 (12 U.S.C. 3302)--
                    (A) in paragraph (1), by inserting ``Director of 
                the Office of Housing Finance Oversight of the 
                Department of the Treasury,'' after ``Supervision,''; 
                and
                    (B) in paragraph (3), by striking ``or a credit 
                union;'' and inserting ``a credit union, a Federal home 
                loan bank, or an enterprise (as such term is defined in 
                section 1303 of the Housing and Community Development 
                Act of 1992 (12 U.S.C. 4502)).'';
            (2) in section 1004 (12 U.S.C. 3303)--
                    (A) in paragraph (4), by inserting a semicolon at 
                the end;
                    (B) by redesignating paragraph (5) as paragraph 
                (6); and
                    (C) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) the Director of the Office of Housing Finance 
        Oversight of the Department of the Treasury; and''; and
            (3) in section 1006(d) (12 U.S.C. 3305(d)), by striking 
        ``and employees of the Federal Housing Finance Board''.

SEC. 107. EFFECTIVE DATE.

    Except as specifically provided otherwise in this title, the 
amendments made by this title shall take effect on, and shall apply 
beginning on, the expiration of the 6-month period beginning on the 
date of the enactment of this Act.

        TITLE II--TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY

SEC. 201. ABOLISHMENT OF OFHEO AND FEDERAL HOUSING FINANCE BOARD.

    (a) In General.--Effective upon the effective date under section 
107, the following entities and positions are abolished:
            (1) The Office of Federal Housing Enterprise Oversight of 
        the Department of Housing and Urban Development and the 
        positions of the Director and Deputy Director of such Office.
            (2) The Federal Housing Finance Board, any Office within 
        such Board (including the Office of Finance), and the Board of 
        Directors of such Board.
    (b) Disposition of Affairs.--
            (1) In general.--During the period beginning on the date of 
        the enactment of this Act and ending on the effective date 
        under section 107, the Director of the Office of Federal 
        Housing Enterprise Oversight and the Chairperson of the Federal 
        Housing Finance Board shall, solely for the purpose of winding 
        up the affairs of the Office of Federal Housing Enterprise 
        Oversight and the Federal Housing Finance Board, respectively--
                    (A) manage the employees of such Office and Board 
                and provide for the payment of the compensation and 
                benefits of any such employee which accrue before the 
                effective date of the transfer of such employee 
                pursuant to section 203; and
                    (B) take any other action necessary for the purpose 
                of winding up the affairs of the Office and the Board.
    (c) Status of Employees Before Transfer.--The amendments made by 
title I and the abolishment of the Office of Federal Housing Enterprise 
Oversight and the Federal Housing Finance Board under subsection (a) of 
this section may not be construed to affect the status of any employee 
of such Office or Board as employees of an agency of the United States 
for purposes of any other provision of law before the effective date of 
the transfer of any such employee pursuant to section 203.
    (d) Use of Property and Services.--
            (1) Property.--The Director of the Office of Housing 
        Finance Oversight of the Department of the Treasury may use the 
        property of the Office of Federal Housing Enterprise Oversight 
        and the Federal Housing Finance Board to perform functions 
        which have been transferred to such Director for such time as 
        is reasonable to facilitate the orderly transfer of functions 
        transferred pursuant to any other provision of this Act or any 
        amendment made by this Act to any other provision of law.
            (2) Agency services.--Any agency, department, or other 
        instrumentality of the United States (including any Federal 
        home loan bank), and any successor to any such agency, 
        department, or instrumentality, which was providing supporting 
        services to the Office of Federal Housing Enterprise Oversight 
        or the Federal Housing Finance Board before the expiration of 
        the period under subsection (a) in connection with functions 
        that are transferred to the Director of the Office of Housing 
        Finance Oversight of the Department of the Treasury shall--
                    (A) continue to provide such services, on a 
                reimbursable basis, until the transfer of such 
                functions is complete; and
                    (B) consult with any such agency to coordinate and 
                facilitate a prompt and reasonable transition.
    (e) Savings Provisions Relating to FHFB.--
            (1) Existing rights, duties, and obligations not 
        affected.--Subsection (a) shall not affect the validity of any 
        right, duty, or obligation of the United States, the Federal 
        Housing Finance Board, or any other person, which--
                    (A) arises under or pursuant to the Federal Home 
                Loan Bank Act or any other provision of law applicable 
                with respect to such Board; and
                    (B) existed on the day before the abolishment under 
                subsection (a) of this section.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Federal Housing Finance Board, or 
        any Federal home loan bank with respect to any function of the 
        Board which was delegated to employees of such bank, shall 
        abate by reason of the enactment of this Act, except that the 
        Director of the Office of Housing Finance Oversight of the 
        Department of the Treasury shall be substituted for the Federal 
        Housing Finance Board or the Federal home loan bank as a party 
        to any such action or proceeding.
    (f) Savings Provisions Relating to OFHEO.--
            (1) Existing rights, duties, and obligations not 
        affected.--Subsection (a) shall not affect the validity of any 
        right, duty, or obligation of the United States, the Director 
        of the Office of Federal Housing Enterprise Oversight, or any 
        other person, which--
                    (A) arises under or pursuant to title XIII of the 
                Housing and Community Development Act of 1992, the 
                Federal National Mortgage Association Charter Act, the 
                Federal Home Loan Mortgage Corporation Act, or any 
                other provision of law applicable with respect to such 
                Office; and
                    (B) existed on the day before the abolishment under 
                subsection (a) of this section.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Director of the Office of Federal 
        Housing Enterprise Oversight shall abate by reason of the 
        enactment of this Act, except that the Director of the Office 
        of Housing Finance Oversight of the Department of the Treasury 
        shall be substituted for the Director as a party to any such 
        action or proceeding.

SEC. 202. CONTINUATION AND COORDINATION OF CERTAIN REGULATIONS.

    All regulations, orders, determinations, and resolutions that--
            (1) were issued, made, prescribed, or allowed to become 
        effective by--
                    (A) the Office of Federal Housing Enterprise 
                Oversight;
                    (B) the Federal Housing Finance Board;
                    (C) the Secretary of Housing and Urban Development 
                and that relate to the Secretary's authority under 
                title XIII of the Housing and Community Development Act 
                of 1992, the Federal National Mortgage Association 
                Charter Act, or the Federal Home Loan Mortgage 
                Corporation Act; or
                    (D) a court of competent jurisdiction and that 
                relate to functions transferred by this Act; and
            (2) are in effect on the date of the abolishment under 
        section 201(a) of this Act,
shall remain in effect according to the terms of such regulations, 
orders, determinations, and resolutions and shall be enforceable by or 
against the Director of the Office of Housing Finance Oversight of the 
Department of the Treasury until modified, terminated, set aside, or 
superseded in accordance with applicable law by such Director, any 
court of competent jurisdiction, or operation of law.

SEC. 203. TRANSFER AND RIGHTS OF EMPLOYEES OF ABOLISHED AGENCIES.

    (a) Transfer.--Each employee of the Office of Federal Housing 
Enterprise Oversight and each employee of the Federal Housing Finance 
Board shall be transferred to the Office of Housing Finance Oversight 
of the Department of the Treasury for employment no later than the date 
of the abolishment under section 201(a) of this Act and such transfer 
shall be deemed a transfer of function for the purpose of section 3503 
of title 5, United States Code.
    (b) Guaranteed Positions.--Each employee transferred under 
subsection (a) shall be guaranteed a position with the same status, 
tenure, grade, and pay as that held on the day immediately preceding 
the transfer. Each such employee holding a permanent position shall not 
be involuntarily separated or reduced in grade or compensation for 18 
months after the date of transfer, except for cause or, if the employee 
is a temporary employee, separated in accordance with the terms of the 
appointment.
    (c) Appointment Authority for Excepted and Senior Executive Service 
Employees.--
            (1) In general.--In the case of employees occupying 
        positions in the excepted service or the Senior Executive 
        Service, any appointment authority established pursuant to law 
        or regulations of the Office of Personnel Management for 
        filling such positions shall be transferred, subject to 
        paragraph (2).
            (2) Decline of transfer.--The Director of the Office of 
        Housing Finance Oversight of the Department of the Treasury may 
        decline a transfer of authority under paragraph (1) (and the 
        employees appointed pursuant thereto) to the extent that such 
        authority relates to positions excepted from the competitive 
        service because of their confidential, policy-making, policy-
        determining, or policy-advocating character, and noncareer 
        positions in the Senior Executive Service (within the meaning 
        of section 3132(a)(7) of title 5, United States Code).
    (d) Reorganization.--If the Director of the Office of Housing 
Finance Oversight of the Department of the Treasury determines, after 
the end of the 1-year period beginning on the date the transfer of 
functions to such Office is completed, that a reorganization of the 
combined workforce is required, that reorganization shall be deemed a 
major reorganization for purposes of affording affected employees 
retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United 
States Code.
    (e) Employee Benefit Programs.--Any employee accepting employment 
with the Office of Housing Finance Oversight of the Department of the 
Treasury as a result of such transfer may retain, for 18 months after 
the date such transfer occurs, membership in any employee benefit 
program of the Federal Housing Finance Board or the Office of Federal 
Housing Enterprise Oversight, as applicable, including insurance, to 
which such employee belongs on the date of the abolishment under 
section 201(a) if--
            (1) the employee does not elect to give up the benefit or 
        membership in the program; and
            (2) the benefit or program is continued by the Director of 
        the Office of Housing Finance Oversight.
The difference in the costs between the benefits which would have been 
provided by such agency or entity and those provided by this section 
shall be paid by the Director of the Office of Housing Finance 
Oversight. If any employee elects to give up membership in a health 
insurance program or the health insurance program is not continued by 
such Director, the employee shall be permitted to select an alternate 
Federal health insurance program within 30 days of such election or 
notice, without regard to any other regularly scheduled open season.
    (f) Senior Executive Service Employees.--A transferring employee in 
the Senior Executive Service shall be placed in a comparable position 
at the agency or entity to which such employee is transferred.
    (g) Notice of Positions.--Transferring employees shall receive 
notice of their position assignments not later than 120 days after the 
effective date of their transfer.

SEC. 204. TRANSFER OF PROPERTY AND FACILITIES.

    Upon the abolishment under section 201(a), all property of the 
Office of Federal Housing Enterprise Oversight and the Federal Housing 
Finance Board shall transfer to the Director of the Office of Housing 
Finance Oversight of the Department of the Treasury.
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