I 

112TH CONGRESS 

1ST SESSION H. R. 2440 

To protect the taxpayers of the United States by requiring Fannie Mae 

and Freddie Mac to sell or dispose of the assets of such enterprises 

that are not critical to their missions. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 7, 2011 

Mr. HURT (for himself, Mr. BACHUS, and Mr. GARRETT) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To protect the taxpayers of the United States by requiring 

Fannie Mae and Freddie Mac to sell or dispose of the 

assets of such enterprises that are not critical to their 

missions. 

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 ‘‘Market Transparency 

5 and Taxpayer Protection Act of 2011’’. 

6 SEC. 2. DISPOSITION OF NON-MISSION CRITICAL ASSETS. 

7 (a) ENTERPRISE REPORTS TO DIRECTOR.—The Di8 rector of the Federal Housing Finance Agency shall reVerDate Mar 15 2010 03:55 Jul 08, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2440.IH H2440

smartinez on DSK6TPTVN1PROD with BILLS
2 

•HR 2440 IH

1 quire each enterprise to submit a report to the Director, 

2 not later than the expiration of the 180-day period begin3 ning upon the date of the enactment of this Act, that— 

4 (1) identifies all assets of value of the enter5 prise; and 

6 (2) describes the functions, characteristics, and 

7 estimated value of each such asset. 

8 (b) DETERMINATION OF NON-MISSION CRITICAL AS9 SETS.— 

10 (1) IN GENERAL.—After reviewing the report 

11 submitted by an enterprise pursuant to subsection 

12 (a), the Director shall make a determination of 

13 which assets of such enterprise are critical, and 

14 which are not critical, to carrying out the mission of 

15 the enterprise in accordance with the charter Act for 

16 the enterprise and other applicable laws. 

17 (2) PATENTS AND HISTORICAL MORTGAGE

18 DATA.—The determinations under paragraph (1) 

19 shall include determinations with regard to any pat20 ents and historical mortgage data of the enterprise. 

21 (c) ANNUAL PLANS.— 

22 (1) ESTABLISHMENT.—Not later than the expi23 ration of the 12- and 24-month periods beginning 

24 upon the date of the enactment of this Act, the Di25 rector shall establish a plan for each enterprise for 


smartinez on DSK6TPTVN1PROD with BILLS
3 

•HR 2440 IH

1 sale or other disposition, during the annual plan pe2 riod for each such plan, of assets of such enterprise 

3 that the Director has determined, pursuant to sub4 section (b), to be non-mission critical assets of such 

5 enterprise in a manner that complies with the re6 quirements under subsection (d) (relating to imple7 mentation, commencement, and divestment). 

8 (2) CONTENTS.—Each plan required under 

9 paragraph (1) for an enterprise shall— 

10 (A) identify the non-mission critical assets 

11 of the enterprise to be sold or otherwise dis12 posed of during the annual plan period; 

13 (B) specifically address whether and how 

14 patents and historical mortgage data of the en15 terprise that are non-mission critical assets 

16 should be sold or disposed of during the annual 

17 plan period, which may include making such as18 sets available in the public domain; 

19 (C) provide for any sales or other disposi20 tions to be conducted in accordance with section 

21 1367(b)(11)(E) of the Federal Housing Enter22 prises Financial Safety and Soundness Act of 

23 1992 (12 U.S.C. 4617(b)(11)(E)); and 

24 (D) include any other information as the 

25 Director considers appropriate. 


smartinez on DSK6TPTVN1PROD with BILLS
4 

•HR 2440 IH

1 (d) IMPLEMENTATION.— 

2 (1) COMMENCEMENT.—Not later than the expi3 ration of the 90-day period beginning upon estab4 lishment of each annual plan pursuant to subsection 

5 (c), the Director shall commence implementation of 

6 such plan. 

7 (2) DIVESTMENT OF ALL NON-MISSION CRIT8 ICAL ASSETS.—The Director shall prohibit each en9 terprise from owning or holding, after the expiration 

10 of the 36-month period beginning upon the date of 

11 the enactment of this Act, any asset that the Direc12 tor has determined, pursuant to subsection (b), to be 

13 a non-mission critical asset of such enterprise. 

14 (e) ANNUAL REPORTS TO CONGRESS.—Not later 

15 than 90 days after the conclusion of the annual plan pe16 riod for each annual plan for an enterprise required by 

17 subsection (c), the Director shall submit to the Congress 

18 a report on the non-mission critical assets of such enter19 prise that were sold or otherwise disposed of pursuant to 

20 such annual plan. 

21 (f) DEFINITIONS.—For purposes of this section, the 

22 following definitions shall apply: 

23 (1) ANNUAL PLAN PERIOD.—The term ‘‘annual 

24 plan period’’ means, with respect to an annual plan 

25 established pursuant to subsection (c) for an enterVerDate Mar 15 2010 03:55 Jul 08, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2440.IH H2440

smartinez on DSK6TPTVN1PROD with BILLS
5 

•HR 2440 IH

1 prise, the 12-month period that begins upon estab2 lishment of the annual plan. 

3 (2) CHARTER ACT.—The term ‘‘charter Act’’ 

4 means— 

5 (A) with respect to the Federal National 

6 Mortgage Association, the Federal National 

7 Mortgage Association Charter Act (12 U.S.C. 

8 1716 et seq.); and 

9 (B) with respect to the Federal Home 

10 Loan Mortgage Corporation, the Federal Home 

11 Loan Mortgage Corporation Act (12 U.S.C. 

12 1451 et seq.). 

13 (3) DIRECTOR.—The term ‘‘Director’’ means 

14 the Director of the Federal Housing Finance Agen15 cy. 

16 (4) ENTERPRISE.—The term ‘‘enterprise’’ has 

17 the meaning given such term in section 1303 of the 

18 Federal Housing Enterprises Financial Safety and 

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

20 (5) NON-MISSION CRITICAL ASSETS.—The term 

21 ‘‘non-mission critical asset’’ means, with respect to 

22 an enterprise, an asset of the enterprise that the Di23 rector determines, pursuant to subsection (b), is not 

24 critical to carrying out the mission of the enterprise 


smartinez on DSK6TPTVN1PROD with BILLS
6 

•HR 2440 IH

1 in accordance with the charter Act for the enterprise 

2 and other applicable laws. 

Æ 


smartinez on DSK6TPTVN1PROD with BILLS