I 

115TH CONGRESS 

1ST SESSION H. R. 491 

To provide for the repayment of amounts borrowed by Fannie Mae and 

Freddie Mac from the Treasury of the United States, together with 

interest, over a 30-year period, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 12, 2017 

Mr. CAPUANO introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To provide for the repayment of amounts borrowed by 

Fannie Mae and Freddie Mac from the Treasury of 

the United States, together with interest, over a 30- 

year period, and for other purposes. 

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. 

4 This Act may be cited as the ‘‘Let the GSEs Pay 

5 Us Back Act of 2017’’. 

6 SEC. 2. REPAYMENT OF TREASURY BORROWING. 

7 The Secretary of the Treasury and each enterprise 

8 (acting through the conservator for the enterprise apVerDate Sep 11 2014 03:53 Jan 26, 2017 Jkt 069200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H491.IH H491

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1 pointed pursuant to section 1367 of the Federal Housing 

2 Enterprises Financial Safety and Soundness Act of 1992 

3 (12 U.S.C. 4617)) shall enter into an agreement that 

4 modifies the Preferred Stock Purchase Agreement for 

5 such enterprise to provide as follows: 

6 (1) TERMINATION OF DIVIDENDS.—That after 

7 such modification, any Senior Preferred Stock pur8 chased under such Agreement by the Department of 

9 the Treasury shall not accrue further dividends. 

10 (2) TREATMENT OF ENTERPRISE DRAWS ON

11 TREASURY.—That any amounts received, before or 

12 after such modification, during a single year by the 

13 enterprise as a draw on the commitment made by 

14 the Department of the Treasury under such an 

15 Agreement, shall be treated as a loan made by the 

16 Treasury to the enterprise that— 

17 (A) was originated on the date of the last 

18 such draw during such year; 

19 (B) has an original principal obligation in 

20 an amount equal to the aggregate amount of 

21 such draws; 

22 (C) has a term to maturity of 30 years; 

23 (D) has an annual interest rate of 5 per24 cent for the entire term of the loan; 


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•HR 491 IH

1 (E) has terms that provide for full amorti2 zation of the loan over such term to maturity; 

3 and 

4 (F) shall be repaid by the enterprise in ac5 cordance with the amortization schedule estab6 lished for the loan pursuant to subparagraph 

7 (E) of this paragraph, subject to paragraph (3). 

8 (3) TREATMENT OF DIVIDENDS PAID.—That 

9 any dividends paid by the enterprise to the Depart10 ment of the Treasury under the Senior Preferred 

11 Stock Agreement before such modification of such 

12 Agreement shall be treated as payments of principal 

13 and interest due under the loan referred to in para14 graph (2), and shall be credited against payments 

15 due under the terms of such loan (in accordance 

16 with the amortization schedule established for such 

17 loan pursuant to paragraph (2)(E)), first to such 

18 loan having the earliest origination date that has not 

19 yet been fully repaid until such loan is repaid, and 

20 then to the next such loan having the next earliest 

21 origination date until such loan is repaid. 

22 SEC. 3. DEFINITIONS. 

23 For purposes of this Act, the following definitions 

24 shall apply: 


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1 (1) ENTERPRISE.—The term ‘‘enterprise’’ has 

2 the meaning given such term in section 1303 of the 

3 Federal Housing Enterprises Financial Safety and 

4 Soundness Act of 1992 (12 U.S.C. 4502). 

5 (2) PREFERRED STOCK PURCHASE AGREE6 MENT.—The term ‘‘Preferred Stock Purchase Agree7 ment’’ means, with respect to an enterprise, the 

8 Amended and Restated Senior Preferred Stock Pur9 chase Agreements, dated September 26, 2008, 

10 amended May 6, 2009, further amended December 

11 24, 2009, and further amended December 24, 2009 

12 (as such agreements may be further amended), be13 tween the United States Department of the Treas14 ury and such enterprise. 

Æ 


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