II 

114TH CONGRESS 

1ST SESSION S. 2038 

To provide certainty that Congress and the Administration will undertake 

substantive and structural housing finance reform, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 16, 2015 

Mr. CORKER (for himself, Mr. WARNER, Mr. VITTER, and Ms. WARREN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To provide certainty that Congress and the Administration 

will undertake substantive and structural housing finance 

reform, 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 ‘‘Jumpstart GSE Re5 form Act’’. 

6 SEC. 2. DEFINITIONS. 

7 As used in this Act, the following definitions shall 

8 apply: 


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

2 the same meaning as in section 1303 of the Federal 

3 Housing Enterprises Financial Safety and Sound4 ness Act of 1992. 

5 (2) GUARANTEE FEE.—The term ‘‘guarantee 

6 fee’’ has the same meaning as in section 1327(a) of 

7 the Housing and Community Development Act of 

8 1992 (12 U.S.C. 4547(a)). 

9 (3) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of the Treasury. 

11 (4) SENIOR PREFERRED STOCK PURCHASE

12 AGREEMENT.—The term ‘‘Senior Preferred Stock 

13 Purchase Agreement’’ means— 

14 (A) the Amended and Restated Senior Pre15 ferred Stock Purchase Agreement, dated Sep16 tember 26, 2008, as such Agreement has been 

17 amended on May 6, 2009, December 24, 2009, 

18 and August 17, 2012, respectively, and as such 

19 Agreement may be further amended and re20 stated, entered into between the Department of 

21 the Treasury and each enterprise, as applicable; 

22 and 

23 (B) any provision of any certificate in con24 nection with such Agreement creating or desig25 nating the terms, powers, preferences, priviVerDate Sep 11 2014 22:14 Sep 16, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2038.IS S2038

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1 leges, limitations, or any other conditions of the 

2 Variable Liquidation Preference Senior Pre3 ferred Stock of an enterprise issued or sold pur4 suant to such Agreement. 

5 SEC. 3. PROHIBITION ON USE OF GUARANTEE FEES TO 

6 OFFSET OTHER GOVERNMENT SPENDING. 

7 An increase in the guarantee fee required to be 

8 charged by an enterprise may not be used to offset an 

9 increase in outlays or a reduction in revenues for any pur10 pose other than those related to the enterprises’ business 

11 functions under— 

12 (1) the congressional budget; 

13 (2) the Balanced Budget and Emergency Def14 icit Control Act of 1985; or 

15 (3) the Statutory Pay-As-You-Go Act of 2010. 

16 SEC. 4. LIMITATIONS ON SALE OF PREFERRED STOCK. 

17 Notwithstanding any other provision of law or any 

18 provision of the Senior Preferred Stock Purchase Agree19 ment, the Secretary may not sell, transfer, relinquish, liq20 uidate, divest, or otherwise dispose of any outstanding 

21 shares of senior preferred stock acquired pursuant to the 

22 Senior Preferred Stock Purchase Agreement, until such 

23 time as Congress has passed and the President has signed 

24 into law legislation that includes a specific instruction to 

25 the Secretary regarding the sale, transfer, relinquishment, 


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1 liquidation, divestiture, or other disposition of the senior 

2 preferred stock so acquired. 

Æ 


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