I 

111TH CONGRESS 

2D SESSION H. R. 4581 

To require the Inspector General of the Federal Housing Finance Agency 

to submit quarterly reports to the Congress during the conservatorship 

of the Federal National Mortgage Association and the Federal Home 

Loan Mortgage Corporation. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 3, 2010 

Mrs. BIGGERT (for herself, Mr. BACHUS, Mrs. CAPITO, Mr. ISSA, Mr. GARRETT of New Jersey, Mr. PAUL, Mr. NEUGEBAUER, and Mr. 

HENSARLING) introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To require the Inspector General of the Federal Housing 

Finance Agency to submit quarterly reports to the Congress during the conservatorship of the Federal National 

Mortgage Association and the Federal Home Loan Mortgage Corporation. 

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 ‘‘Fannie Mae and 

5 Freddie Mac Accountability and Transparency for Tax6 payers Act of 2010’’. 


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1 SEC. 2. QUARTERLY REPORTS DURING CONSERVATORSHIP. 

2 (a) REPORTING REQUIREMENT.—For each reporting 

3 period, the covered officer shall submit to the Congress 

4 a report for each enterprise that summarizes the activities 

5 of the covered officer with respect to such enterprise, and 

6 the activities and condition of such enterprise, during such 

7 reporting period. 

8 (b) CONTENTS.—Each report required under this 

9 section for an enterprise for a reporting period shall in10 clude the following information: 

11 (1) A description, including dollar amount, of 

12 total liabilities of the enterprise as of the reporting 

13 date, with a detailed breakdown of the potential level 

14 of risk to the Federal Government inherent in the 

15 dollar amount of each separate type of liability and 

16 a quantification as to how the risk to the Federal 

17 Government has changed from the previous report18 ing period, distinguishing between changes attrib19 utable to volume and changes attributable to 

20 changes in risk levels. 

21 (2) An explanation of, including rationale for, 

22 all compensation and bonuses paid to any executive 

23 officer (as such term is defined in section 1303 of 

24 the Housing and Community Development Act of 

25 1992 (12 U.S.C. 4502)) of the enterprise, and any 


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1 retention decisions made, by the enterprise during 

2 such period regarding its executive officers. 

3 (3) A description of foreclosure mitigation ac4 tivities of the enterprise during such period, includ5 ing any related data, a list of law firms and attor6 neys approved or retained by the enterprise for han7 dling foreclosure and bankruptcy matters relating to 

8 mortgages held or securitized by the enterprise, and 

9 the eligibility criteria used for such approval or re10 tention and reasons for limiting such list, and the 

11 number of mortgage loans held by the enterprise 

12 that were refinanced in 2008 and 2009 through 

13 foreclosure mitigation activities of the enterprise 

14 that have, during such period, entered into default. 

15 (4) A description of any mortgage fraud preven16 tion activities undertaken by the enterprise during 

17 such period and data describing the extent of mort18 gage fraud during such period, including descrip19 tions of the efforts of the enterprise to prevent or 

20 detect mortgage fraud, of the pervasiveness of mort21 gage fraud, and of the most prevalent types of mort22 gage fraud detected. 

23 (5) A listing with description of any formal or 

24 informal communication between Governors and 

25 staff of the Board of Governors of the Federal ReVerDate Nov 24 2008 00:38 Feb 04, 2010 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4581.IH H4581

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1 serve System and executives in the enterprise and 

2 any formal or informal communication between offi3 cials and staff of the Department of the Treasury 

4 and the Governors and staff of the Board of Gov5 ernors of the Federal Reserve System and executives 

6 in the enterprise regarding the purchase or sale of 

7 any enterprise-related securities. 

8 (6) A description of any investments, holdings, 

9 and activities of the enterprise during such period 

10 that are not consistent with the mission of the enter11 prise as provided under Federal law. 

12 (7) A description of the reasons for any equity 

13 investments in the enterprise by the Department of 

14 the Treasury during such period and any increase 

15 during such period in the authorized amount of eq16 uity investments by such Department. 

17 (8) An analysis of the capital levels and port18 folio size of the enterprise during such period and 

19 their impacts on the safety and soundness of the en20 terprise. 

21 (9) A description and analysis of the under22 writing standards of the enterprise applicable during 

23 such period, including the criteria for safety and 

24 soundness of mortgage loans for single-family, multi25 family, and condominium residential homes 


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1 securitized by the enterprise and the ability of such 

2 criteria to ensure such safety and soundness. 

3 (10) An analysis of actions taken by the enter4 prise that had a beneficial or harmful effect on hold5 ers of enterprise-related securities, in particular, pre6 ferred stock issued prior to September 6, 2008. 

7 (11) Any other information that the covered of8 ficer considers relevant or important with respect to 

9 the enterprise, and the activities and condition of the 

10 enterprise. 

11 (c) REPORTING PERIODS; TIMING OF REPORTS.— 

12 (1) INITIAL PERIOD.—The first reporting pe13 riod for each enterprise shall be the period that 

14 began upon the commencement of the conservator15 ship period for the enterprise and that ends upon 

16 the date of the enactment of this Act. The reports 

17 required under this section for such period shall be 

18 submitted not later than the expiration of the 60- 

19 day period beginning on the date of the enactment 

20 of this Act. 

21 (2) QUARTERLY PERIODS.—After the first re22 porting period, the reporting periods for each enter23 prise shall be each calendar quarter that concludes 

24 after the date of the enactment of this Act. Each re25 port for each such reporting period shall be subVerDate Nov 24 2008 00:38 Feb 04, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4581.IH H4581

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1 mitted not later than the expiration of the 60-day 

2 period beginning upon the conclusion of such report3 ing period. 

4 (3) RECEIVERSHIP.—Notwithstanding para5 graph (2), if at any time a receiver is appointed for 

6 an enterprise pursuant to section 1367 of the Hous7 ing and Community Development Act of 1992 (12 

8 U.S.C. 4617), the reporting periods for the enter9 prise during such receivership shall be each calendar 

10 month (or such shorter period as the covered officer 

11 considers appropriate). Each report for each such 

12 reporting period shall be submitted not later than 

13 the expiration of the 30-day period beginning upon 

14 the conclusion of such reporting period. 

15 (4) NATIONALIZATION.—Notwithstanding para16 graph (2), if at any time the Federal Government or 

17 any agency or entity of the Federal Government ob18 tains control of an enterprise under law or through 

19 ownership of voting stock of the enterprise, or the 

20 covered officer determines that the enterprise has 

21 otherwise been nationalized, the reporting periods 

22 for the enterprise after such nationalization occurs 

23 shall be the consecutive 6-month periods (the first 

24 such period beginning upon such nationalization (or 

25 such shorter period as the covered officer considers 


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1 appropriate). Each report for each such reporting 

2 period shall be submitted not later than the expira3 tion of the 60-day period beginning upon the conclu4 sion of such reporting period. 

5 (d) PUBLIC AVAILABILITY.—The covered officer 

6 shall— 

7 (1) make information regarding the activities of 

8 the covered officer, including each report submitted 

9 to the Congress pursuant to this section, available to 

10 the public, including through a World Wide Web site 

11 of the Federal Housing Finance Agency; and 

12 (2) establish an electronic mail address and a 

13 toll-free telephone number, and shall publicize the 

14 availability of such address and number, by which 

15 the public may report waste, fraud, or abuse by an 

16 enterprise. 

17 (e) DEFINITIONS.—For purposes of this section, the 

18 following definitions shall apply: 

19 (1) CONSERVATORSHIP PERIOD.—The term 

20 ‘‘conservatorship period’’ means, with respect to an 

21 enterprise, the period that— 

22 (A) began upon appointment of the Fed23 eral Housing Finance agency as conservator for 

24 the enterprise on September 6, 2008, pursuant 

25 to section 1367 of the Housing and Community 


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1 Development Act of 1992 (12 U.S.C. 4617); 

2 and 

3 (B) ends upon the termination of such con4 servatorship of the enterprise. 

5 (2) COVERED OFFICER.—The term ‘‘covered of6 ficer’’ means— 

7 (A) the Inspector General of the Federal 

8 Housing Finance Agency, if one has been ap9 pointed pursuant to section 1317(d) of the 

10 Housing and Community Development Act of 

11 1992 (12 U.S.C. 4517); 

12 (B) if the officer referred to in subpara13 graph (A) has not been appointed, any interim 

14 inspector general for the Federal Housing Fi15 nance Agency appointed pursuant to any provi16 sion of law providing for such office; or 

17 (C) if the officer referred to in subpara18 graph (A) has not been appointed and an offi19 cer referred to in subparagraph (B) has not 

20 been appointed, the Associate Director for In21 ternal Audit of the Federal Housing Finance 

22 Agency. 

23 (3) ENTERPRISE.—The term ‘‘enterprise’’ 

24 means the Federal National Mortgage Association 

25 and the Federal Home Loan Mortgage Corporation. 


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1 (4) REPORTING PERIOD.—The term ‘‘reporting 

2 period’’ means a period described in paragraph (1), 

3 (2), (3), or (4) of subsection (c). 

Æ 


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