I 

112TH CONGRESS 

1ST SESSION H. R. 2413 

To establish a sustainable Federal Secondary Market Facility for Residential 

Mortgages that is financed by private capital, to terminate the 

conservatorships of Fannie Mae and Freddie Mac and repeal the charter 

Acts of such enterprises, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 6, 2011 

Mr. GARY G. MILLER of California (for himself and Mrs. MCCARTHY of New 

York) introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To establish a sustainable Federal Secondary Market Facility 

for Residential Mortgages that is financed by private 

capital, to terminate the conservatorships of Fannie Mae 

and Freddie Mac and repeal the charter Acts of such 

enterprises, 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 AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Secondary Market Facility for Residential Mortgages Act 

6 of 2011’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Purpose. 

Sec. 3. Definitions. 

TITLE I—SECONDARY MARKET FACILITY FOR RESIDENTIAL 

MORTGAGES 

Sec. 101. Establishment of Secondary Market Facility for Residential Mortgages. 

Sec. 102. Limitations on mortgage purchases. 

Sec. 103. Reduction of market share. 

Sec. 104. Capital standards. 

Sec. 105. Guarantee fees. 

Sec. 106. Federal insurance backstop. 

Sec. 107. Deficit reduction. 

Sec. 108. Portfolio reduction. 

Sec. 109. Initial standards. 

TITLE II—ENDING THE CONSERVATORSHIPS OF FANNIE MAE 

AND FREDDIE MAC 

Sec. 201. Treasury plan. 

Sec. 202. Implementation of plan. 

Sec. 203. Repeal of charter Acts. 

TITLE III—FEDERAL HOUSING FINANCE AGENCY 

Sec. 301. Establishment of Federal Housing Finance Agency Board. 

Sec. 302. Supervision and regulation of Facility by FHFA. 

Sec. 303. Conforming amendments. 

3 SEC. 2. PURPOSE. 

4 The purpose of this Act is to establish a Federal sec5 ondary market facility for residential mortgages, to pro6 vide that the operations thereof shall be financed by pri7 vate capital, and to authorize such facility to— 

8 (1) provide stability in the secondary market 

9 for residential mortgages; 

10 (2) respond appropriately to the private capital 

11 market; 


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1 (3) maintain the secondary market for residen2 tial mortgages, including the ‘‘TBA’’ (to-be-an3 nounced) market; 

4 (4) improve the distribution of investment cap5 ital available for residential mortgage financing and 

6 as a result facilitate access to mortgage credit to 

7 qualified borrowers throughout the United States 

8 (including in central cities, rural areas, high-cost 

9 areas, and underserved areas); and 

10 (5) manage and liquidate the mortgage port11 folios of Fannie Mae and Freddie Mac in an orderly 

12 manner, in a way that contributes to the stability of 

13 the housing market and with minimum loss and 

14 maximum profit to the Federal Government. 

15 SEC. 3. DEFINITIONS. 

16 For purposes of this Act, the following definitions 

17 shall apply: 

18 (1) APPROVED SELLER.—The term ‘‘approved 

19 seller’’ means a seller of a mortgage who has been 

20 approved by the Facility in accordance with the 

21 standards established by the FHFA Board pursuant 

22 to section 102(j). 

23 (2) CONSERVATORSHIP.—The term ‘‘con24 servatorship’’ means, with respect to an enterprise, 

25 the conservatorship of the enterprise established 


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1 pursuant to section 1367 of the Federal Housing 

2 Enterprises Financial Safety and Soundness Act of 

3 1992 (12 U.S.C. 4617) and in effect on the date of 

4 the enactment of this Act. 

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

6 means— 

7 (A) the Federal National Mortgage Asso8 ciation; and 

9 (B) the Federal Home Loan Mortgage 

10 Corporation. 

11 (4) FACILITY.—The term ‘‘Facility’’ means the 

12 Secondary Market Facility for Residential Mort13 gages established under section 101 of this Act. 

14 (5) FACILITY-AFFILIATED PARTY.—The term 

15 ‘‘Facility-affiliated party’’ means— 

16 (A) any director, officer, or employee of, or 

17 agent for, the Facility; 

18 (B) any affiliate, consultant, or joint ven19 ture partner of the Facility, and any other per20 son, as determined by the FHFA Board (by 

21 regulation or on a case-by-case basis) that par22 ticipates in the conduct of the affairs of the Fa23 cility; and 


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1 (C) any independent contractor for the Fa2 cility (including any attorney, appraiser, or ac3 countant), if— 

4 (i) the independent contractor know5 ingly or recklessly participates in— 

6 (I) any violation of any law or 

7 regulation; 

8 (II) any breach of fiduciary duty; 

9 or 

10 (III) any unsafe or unsound 

11 practice; and 

12 (ii) such violation, breach, or practice 

13 caused, or is likely to cause, more than a 

14 minimal financial loss to, or a significant 

15 adverse effect on, the Facility. 

16 (6) FACILITY BOARD.—The term ‘‘Facility 

17 Board’’ means the Board of Directors of the Sec18 ondary Market Facility for Residential Mortgages, 

19 established under section 101. 

20 (7) FHFA BOARD.—The term ‘‘FHFA Board’’ 

21 means the Federal Housing Finance Agency Board 

22 established under section 1312 of the Federal Hous23 ing Enterprises Financial Safety and Soundness Act 

24 of 1992, as amended by section 301 of this Act. 


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1 (8) RESIDENTIAL MORTGAGE.—The term ‘‘resi2 dential mortgage’’ means a mortgage on single-fam3 ily housing or multifamily housing. 

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

5 the Secretary of the Treasury. 

6 (10) SINGLE-FAMILY HOUSING.—The term 

7 ‘‘single-family housing’’ means a residence consisting 

8 of 1 to 4 dwelling units. 

9 (11) MULTIFAMILY HOUSING.—The term ‘‘mul10 tifamily housing’’ means a residence consisting of 

11 more than 4 dwelling units. 

12 TITLE I—SECONDARY MARKET 

13 FACILITY FOR RESIDENTIAL 

14 MORTGAGES 

15 SEC. 101. ESTABLISHMENT OF SECONDARY MARKET FACIL16 ITY FOR RESIDENTIAL MORTGAGES. 

17 (a) ESTABLISHMENT.—There is hereby established a 

18 Secondary Market Facility for Residential Mortgages, 

19 which shall be a body corporate without capital stock. 

20 (b) PURPOSE.—The purpose of the Facility shall be 

21 to ensure that capital for residential mortgages is available 

22 to qualified homebuyers throughout the United States, 

23 without regard to region, area, or other geographic loca24 tion. 


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1 (c) FEDERAL STATUS.—The Facility shall be an in2 strumentality of the Federal Government. 

3 (d) BOARD OF DIRECTORS.— 

4 (1) ESTABLISHMENT; APPOINTMENT.—The Fa5 cility shall be under the direction of a Board of Di6 rectors, which shall consist of 5 members who shall 

7 be appointed by the President, and shall not be offi8 cers or employees of the Federal Government. The 

9 initial members of the Facility Board shall be ap10 pointed not later than the expiration of the 6-month 

11 period beginning on the date of the enactment of 

12 this Act. 

13 (2) QUALIFICATIONS.—Of the members ap14 pointed to the Facility Board— 

15 (A) 3 members shall possess extensive ex16 perience and expertise in financial management 

17 or oversight, capital markets (including debt 

18 markets), the secondary mortgage market, and 

19 mortgage-backed securities; and 

20 (B) 2 members shall possess extensive ex21 perience and expertise in mortgage finance (in22 cluding single-family and multifamily housing 

23 mortgage finance and with credit unions and 

24 small institutions). 


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1 (3) POLITICAL AFFILIATION.—Not more than 

2 three members of the Facility Board may be mem3 bers of the same political party. 

4 (4) TERM; REMOVAL.—Each member of the Fa5 cility Board shall be appointed for a term of 5 years, 

6 except that any member may be removed from office 

7 by the President for good cause. 

8 (5) CHAIRPERSON.—The Chairperson of the 

9 Facility Board shall be designated by the President 

10 at the time of appointment. The Chairperson shall 

11 designate another member to serve as Acting Chair12 person during the absence or disability of the Chair13 person. 

14 (6) VACANCIES.—A member of the Facility 

15 Board appointed to fill a vacancy occurring before 

16 the expiration of the term for which the member’s 

17 predecessor was appointed shall be appointed only 

18 for the remainder of that term. 

19 (7) CONTINUATION OF MEMBERSHIP.—A mem20 ber of the Facility Board may serve after the expira21 tion of the member’s term until a successor has been 

22 appointed. 

23 (e) MORTGAGE-RELATED ACTIVITIES.—The business 

24 of the Facility shall be limited to the following functions, 

25 and such activities as may be incident to such functions: 


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1 (1) BORROWING.—Borrowing, giving security, 

2 paying interest and other return, and issuing notes, 

3 debentures, bonds, and other obligations and securi4 ties to fund the purchase of residential mortgages, 

5 and to achieve initial capitalization levels as required 

6 by the FHFA Board. 

7 (2) SINGLE-FAMILY MORTGAGE PURCHASE.— 

8 The purchase of residential mortgages on single9 family housing that are originated by approved sell10 ers pursuant to section 102(j). 

11 (3) MULTIFAMILY MORTGAGE PURCHASE.—The 

12 purchase of residential mortgages on multifamily 

13 housing that are originated by approved sellers pur14 suant to section 102(j). 

15 (4) MAINTENANCE OF TBA MARKET.—Main16 taining the ‘‘to-be-announced’’ market for securities 

17 based on or backed by residential mortgages on sin18 gle-family or multifamily housing. 

19 (5) MORTGAGE-BACKED SECURITIES.—Issuing, 

20 and guaranteeing timely payment of principal and 

21 interest on, securities and other obligations based on 

22 or backed by a pool of residential mortgages pur23 chased by the Facility, whose quality and character24 istics are interchangeable with securities issued by 

25 the enterprises before the date of the enactment of 


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1 this Act, including applicable rules related to the cal2 culation of net capital requirements. 

3 (6) COLLECTION OF FEES.—The collection of 

4 guarantee fees established under section 105 in con5 nection with mortgage purchases and reinsurance 

6 fees established under section 106(a). 

7 (7) RISK MANAGEMENT.—The management of 

8 interest rate risk associated with operations of the 

9 Facility. 

10 (f) PROHIBITION ON MORTGAGE ORIGINATION.—The 

11 Facility shall not engage in mortgage origination. 

12 (g) SELF-SUPPORTING.—The operations of the Facil13 ity shall be funded only by income derived from its oper14 ations, after obligations for capital reserves in accordance 

15 with section 104 and for the Reinsurance Fund under sec16 tion 106(b) are met. 

17 (h) EQUAL ACCESS TO PRODUCTS.—The FHFA 

18 Board shall, by regulation, require that the Facility oper19 ate to carry out the purposes under subsection (b) in a 

20 manner that provides equal access at all times, by all eligi21 ble or qualified and approved residential mortgage lenders, 

22 and all markets, to products of the Facility. 

23 (i) PERSONNEL.—The Facility Board may fix the 

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1 ployees of the Facility without regard to the provisions 

2 of title 5, United States Code. 

3 (j) LEASING AUTHORITY.—For the purpose of miti4 gating losses to the taxpayer and stabilizing home prices, 

5 the Facility may market for rental any real-estate owned 

6 properties and assets of the enterprises that are trans7 ferred to the Facility pursuant to section 201(b) and enter 

8 into such lease agreements with lessees as the Facility 

9 Board determines appropriate, prior to sale of such prop10 erties and assets, except that any such lease agreement 

11 shall terminate before the expiration of the 5-year period 

12 beginning upon the establishment of the Facility. 

13 (k) BUDGETS; AUDITS; MANAGEMENT REPORTS; OB14 LIGATIONS.—The Facility shall be considered a wholly 

15 owned Government corporation for purposes of chapter 91 

16 of title 31, United States Code, but not including section 

17 9108 of such chapter. 

18 (l) GENERAL POWERS.—The Facility may— 

19 (1) adopt, amend, and repeal bylaws; 

20 (2) adopt and use a corporate seal; 

21 (3) enter into contracts, incur liabilities, make 

22 guarantees, borrow money, issue notes, bonds, and 

23 other obligations; 

24 (4) sue or be sued in its own capacity; and 


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1 (5) purchase, receive, hold, and use real and 

2 personal property and other assets necessary for the 

3 conduct of its operations. 

4 SEC. 102. LIMITATIONS ON MORTGAGE PURCHASES. 

5 (a) SAFE AND SOUND MORTGAGES.— 

6 (1) LIMITATION ON FACILITY PURCHASES.—To 

7 limit the risk assumed by the Facility, the FHFA 

8 Board shall, by regulation, limit the residential 

9 mortgages that may be purchased by the Facility to 

10 safe and sound mortgages, as such term is defined 

11 pursuant to paragraph (2), within such mortgage 

12 product types and classifications as are approved in 

13 advance by the FHFA Board pursuant to paragraph 

14 (3). 

15 (2) DEFINITION.—The FHFA Board shall, by 

16 regulation, define the term ‘‘safe and sound residen17 tial mortgages’’ for purposes of this subsection, 

18 which shall— 

19 (A) be established by the FHFA Board; 

20 (B) be limited to mortgages that are of a 

21 quality, type, and class determined by the 

22 FHFA Board to be appropriate to provide ade23 quate liquidity in the housing finance markets 

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1 gors and residential housing markets, which 

2 shall include— 

3 (i) mortgages having a term to matu4 rity of 30 years or less and a fixed rate of 

5 interest over the entire term of mortgage; 

6 (ii) mortgages for single-family hous7 ing and mortgages for multifamily housing; 

8 (iii) programs for whole loans and cer9 tificates; and 

10 (iv) other mortgages that are not in11 sured under the National Housing Act and 

12 not securitized through securities guaran13 teed by the Government National Mortgage 

14 Association; 

15 (C) incorporate— 

16 (i) the outstanding balance require17 ments for single-family mortgages under 

18 subsection (b) of this section; 

19 (ii) the conforming loan limits for sin20 gle-family mortgages under subsection (c) 

21 of this section; 

22 (iii) the downpayment requirements 

23 for single-family mortgages under sub24 section (d) of this section; 


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1 (iv) the requirements for adjustable 

2 rate mortgages under subsection (e) of this 

3 section; 

4 (v) the representation and warranty 

5 requirements under subsection (f) of this 

6 section; 

7 (vi) the underwriting standards under 

8 subsection (g) of this section; and 

9 (vii) the property valuation standards 

10 under subsection (h) of this section. 

11 (3) PRODUCT APPROVAL.—The FHFA Board 

12 shall require the Facility to obtain the approval of 

13 the FHFA Board for any product of the Facility be14 fore initially offering the product. The FHFA Board 

15 shall establish standards for approval of products, 

16 which shall provide for conditional approval and pro17 cedures for submission of requests for such approval. 

18 (b) OUTSTANDING BALANCE REQUIREMENTS FOR

19 SINGLE-FAMILY MORTGAGES.—The regulations of the 

20 FHFA Board pursuant to subsection (a) shall ensure that 

21 a mortgage on single-family housing shall not be consid22 ered a safe and sound mortgage if the outstanding prin23 cipal balance under the mortgage at the time of purchase 

24 by the Facility exceeds 80 percent of the sale price of the 

25 single-family residence securing the mortgage, unless— 


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1 (1) the seller retains a participation of not less 

2 than 10 percent of the sale price of the single-family 

3 residence securing the mortgage, and the aggregate 

4 amount any outstanding principal balance (including 

5 such participation) shall not exceed 90 percent of 

6 the sale price of the single-family residence securing 

7 the mortgage; 

8 (2) for such period and under such cir9 cumstances as the Facility Board may require, the 

10 seller agrees to repurchase or replace the mortgage 

11 upon demand of the Facility in the event that the 

12 mortgage is in default; 

13 (3) the portion of the outstanding principal bal14 ance of the mortgage that exceeds such 80 percent 

15 is guaranteed or insured by a qualified insurer, as 

16 determined by the Facility in accordance with such 

17 standards and requirements as the FHFA Board 

18 shall establish; or 

19 (4) the mortgage is financed in part through a 

20 shared equity arrangement under which inde21 pendent, private sector investors invest, together 

22 with the mortgagors, equity funds for such resi23 dences in the form of cash (or its equivalent) paid 

24 on account of the property and thereby share in the 

25 ownership of such residences, except that— 


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1 (A) the mortgagor shall retain an owner2 ship in the residence under the shared equity 

3 arrangement that is not less than 50 percent; 

4 and 

5 (B) such private sector financing may pro6 vide not more than half of the minimum down7 payment amount required under subsection (d). 

8 (c) CONFORMING LOAN LIMITS FOR SINGLE-FAMILY

9 MORTGAGES.—The regulations of the FHFA Board pur10 suant to subsection (a) shall ensure that a mortgage on 

11 single-family housing of a particular size shall not be con12 sidered a safe and sound mortgage if the mortgage has 

13 an original principal obligation that exceeds the higher 

14 of— 

15 (1) the maximum dollar amount limitation for 

16 such fiscal year governing the maximum original 

17 principal obligation of mortgages that are purchased 

18 by the Federal Home Loan Mortgage Corporation 

19 for such size residence, as determined under section 

20 305(a)(2) of the Federal Home Loan Mortgage Cor21 poration Act (12 U.S.C. 1454(a)(2)), or 

22 (2) 125 percent of the area median price for a 

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1 termined under such section 305(a)(2) for a resi2 dence of the applicable size, 

3 except that, for mortgages originated in any year, if the 

4 limitation for such year on the maximum original principal 

5 obligation of a mortgage that may be purchased by the 

6 Federal National Mortgage Association or the Federal 

7 Home Loan Mortgage Corporation determined under sec8 tion 302(b)(2) of the Federal National Mortgage Associa9 tion Charter Act (12 U.S.C. 1717(b)(2)) or section 

10 305(a)(2) of the Federal Home Loan Mortgage Corpora11 tion Act (12 U.S.C. 1754(a)(2)) respectively, for any size 

12 residence for any area is less than such maximum original 

13 principal obligation limitation that was in effect for such 

14 size residence for such area for 2008 pursuant to section 

15 201 of the Economic Stimulus Act of 2008 (Public Law 

16 110–185; 122 Stat. 619), notwithstanding any other pro17 vision of law or of this Act, the limitation under this sub18 section on the maximum original principal obligation of 

19 a mortgage for such size residence for such area that may 

20 be considered a safe and sound mortgage shall be such 

21 maximum limitation in effect for such size residence for 

22 such area for 2008. 

23 (d) DOWNPAYMENT REQUIREMENT.—The regula24 tions of the FHFA Board pursuant to subsection (a) shall 

25 ensure that, notwithstanding any other provision of this 


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1 title, a mortgage on single-family housing shall not be con2 sidered a safe and sound mortgage unless the mortgagor 

3 has paid on account of the property subject to the mort4 gage, in cash (or its equivalent), an amount equal to not 

5 less than 5 percent of the sale price of the property or 

6 such larger amount as the FHFA Board may establish 

7 to mitigate risks and prevent losses to the Facility. 

8 (e) ADJUSTABLE RATE MORTGAGES.—The regula9 tions of the FHFA Board pursuant to subsection (a) shall 

10 provide that a mortgage on single-family housing having 

11 an interest rate that is not fixed at a single annual per12 centage rate for the entire term of the mortgage shall not 

13 be considered a safe and sound mortgage unless such qual14 ity, type, and class of non-fixed rate mortgages has been 

15 approved for purposes of this section by the FHFA Board 

16 as consistent with the safety and soundness of the Facility 

17 and the mortgage finance system. 

18 (f) REPRESENTATION AND WARRANTY REQUIRE19 MENT.—The regulations of the FHFA Board pursuant to 

20 subsection (a) shall provide that a mortgage shall not be 

21 considered a safe and sound mortgage unless such mort22 gage meets such requirements regarding representations 

23 and warranties sufficient to certifying that the mortgage 

24 is covered by a policy for title insurance as the FHFA 

25 Board shall establish to ensure that title-related risks for 


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1 the mortgage are borne by State-licensed title insurance 

2 companies. 

3 (g) UNDERWRITING STANDARDS.—The regulations 

4 of the FHFA Board pursuant to subsection (a) shall pro5 vide that a mortgage shall not be considered a safe and 

6 sound mortgage unless such mortgage meets such under7 writing standards as the FHFA Board shall establish 

8 that— 

9 (1) promote transparency, uniformity, and con10 sumer protections; and 

11 (2) ensure a mortgagor’s ability to repay the 

12 mortgage obligation, including standards for deter13 mining mortgagors’ income, assets, liabilities, credit 

14 history, and credit risk. 

15 (h) PROPERTY VALUATION STANDARDS.—The regu16 lations of the FHFA Board pursuant to subsection (a) 

17 shall provide that a mortgage shall not be considered a 

18 safe and sound mortgage unless such mortgage meets the 

19 property valuation and appraisal standards under subpart 

20 E of part 226 of title 12, Code of Federal Regulations 

21 (Regulation Z). 

22 (i) PRICE LIMITATIONS.—The Facility shall ensure 

23 that prices to be paid by the Facility for residential mort24 gages purchased shall be based on market prices for the 

25 particular class of mortgages involved. 


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1 (j) SELLER APPROVAL.—The Facility may purchase 

2 residential mortgages meeting the requirements of this 

3 title only from sellers who have been approved by the Fa4 cility as meeting such standards for approval as the Facil5 ity Board shall establish, which shall include standards 

6 governing the following: 

7 (1) Care and due diligence in complying with 

8 the underwriting standards established pursuant to 

9 subsection (g). 

10 (2) Minimum capital to ensure the ability to 

11 perform under standard representations and warran12 ties. 

13 (3) Contractual obligations. 

14 (4) Representations and warranties pursuant to 

15 subsection (f). 

16 (5) Indemnification for losses. 

17 (6) Delivery of documents. 

18 (7) Ownership, establishment, maintenance, re19 taining, examination, and storage of mortgage 

20 records and information. 

21 (8) Fidelity bond and errors and omissions cov22 erage. 

23 (9) Capitalization, net worth, and liquidity. 

24 (10) Lending practices. 


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1 (k) SERVICING OF MORTGAGES.—This Act may not 

2 be construed to prohibit, or to authorize the Facility 

3 Board or the FHFA Board to prohibit, any approved sell4 er who sells a mortgage to the Facility from servicing such 

5 mortgage. 

6 SEC. 103. REDUCTION OF MARKET SHARE. 

7 (a) LIMITATIONS.—The FHFA Board shall, by regu8 lation, seek to ensure that the market share of the Facil9 ity, as defined by the FHFA Board, does not exceed ap10 proximately 50 percent of mortgage originations in the 

11 United States. 

12 (b) STANDARDS AND REQUIREMENTS.—The FHFA 

13 Board shall establish such standards and requirements re14 garding the maximum volume of purchases by the Facility. 

15 In establishing such standards, the FHFA Board shall 

16 seek to avoid excessive disruption to stability of the resi17 dential mortgage market. 

18 (c) SAFETY VALVE.—Notwithstanding any other pro19 vision of this section, the FHFA Board may provide, in 

20 a timely manner, for the temporary suspension or adjust21 ment of the limits under this section on the market share 

22 of the Facility, but only if the FHFA Board determines 

23 that the private market has significantly reduced partici24 pation in the residential mortgage markets, taking into 

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1 gage-backed securities and mortgage-backed securities 

2 issued by the Facility and such other indicia as the FHFA 

3 Board considers appropriate. 

4 (d) CORRECTION PLAN.—If at any time the FHFA 

5 Board determines that the market share of the Facility 

6 exceeds the maximum market share permitted under this 

7 section, the FHFA Board shall require the Facility to es8 tablish and implement a plan that— 

9 (1) reduces such market share so that it com10 plies with the subsection (a)(1); 

11 (2) impacts all geographic regions of the coun12 try similarly; 

13 (3) restricts or prohibits the business of the Fa14 cility in mortgages that are used to prepay an exist15 ing loan secured by the same property as such mort16 gage; and 

17 (4) increases guarantee fees under section 105 

18 or reinsurance fees under section 106(a), or both. 

19 Such a plan shall seek to impact all lenders as equally 

20 as possible, taking into account each lender’s history re21 garding its share of activity in selling mortgages to the 

22 Facility. 

23 SEC. 104. CAPITAL STANDARDS. 

24 (a) IN GENERAL.—The FHFA Board shall, by regu25 lation, establish risk-based capital requirements for the 


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1 Facility to ensure that the Facility operates in a safe and 

2 sound manner, maintaining sufficient capital and reserves 

3 to support the risks that arise in operations and manage4 ment of the Facility. 

5 (b) FACTORS.—The capital requirements for the Fa6 cility shall— 

7 (1) be based on the risks specifically involved in 

8 the purchase and securitization of safe and sound 

9 mortgages, as such term is defined pursuant to sec10 tion 103(a); and 

11 (2) be based on actuarial loss rate history of 

12 mortgages having similar characteristics. 

13 SEC. 105. GUARANTEE FEES. 

14 (a) ESTABLISHMENT.—The Facility shall charge a 

15 guarantee fee under this section in connection with any 

16 purchase of residential mortgages from approved sellers 

17 and in connection with any guarantee issued by the Facil18 ity of timely payment of principal and interest on mort19 gage-backed securities, notes, and other obligations issued 

20 by the Facility. 

21 (b) AMOUNT.—Any guarantee fee under this section 

22 shall be in an amount that the Facility Board determines 

23 appropriate and reasonable, based on likelihood of loss for 

24 the particular type of product, to provide for operation of 

25 the Facility in accordance with this Act, except that such 


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1 fees may be increased to facilitate compliance with the 

2 market share limitations under section 103 or for such 

3 other purpose as the FHFA Board may approve. The 

4 FHFA Board may establish a minimum amount for the 

5 guarantee fee. 

6 (c) IMPERMISSIBLE CONSIDERATIONS.—Such fees 

7 shall be based on quality of mortgages and may not be 

8 based on or incorporate— 

9 (1) the geographic location of properties subject 

10 to mortgages backing or on which are based such se11 curities, notes, or other obligations; 

12 (2) the volume of mortgages sold to the Facility 

13 by an approved seller; or 

14 (3) any consideration of reducing the costs of 

15 homeownership. 

16 SEC. 106. FEDERAL INSURANCE BACKSTOP. 

17 (a) REINSURANCE FEES.— 

18 (1) IN GENERAL.—The Facility shall collect 

19 and transfer to the Reinsurance Fund established 

20 under subsection (b), a reinsurance fee under this 

21 subsection in connection with any guarantee issued 

22 by the Facility of timely payment of principal and 

23 interest on mortgage-backed securities, notes, and 

24 other obligations issued by the Facility. 


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1 (2) AMOUNT.—The fee shall be established by 

2 the Facility Board in such amount as may be nec3 essary to cover obligations of the Facility under such 

4 guarantees to the extent the capital funds of the Fa5 cility cannot cover such obligations and shall be 

6 based on the outstanding mortgage exposure of the 

7 Facility. The FHFA Board may establish a min8 imum amount for the reinsurance fee. 

9 (b) REINSURANCE FUND.— 

10 (1) ESTABLISHMENT.—There is established in 

11 the Treasury of the United States a Reinsurance 

12 Fund for the Facility. 

13 (2) CREDITS.—The Reinsurance Fund shall be 

14 credited with— 

15 (A) all reinsurance fees collected by the 

16 Facility pursuant to subsection (a); 

17 (B) any amounts earned on investments of 

18 the Fund pursuant to paragraph (4); and 

19 (C) such other amounts as may be credited 

20 to the Fund, including amounts as may be re21 quired to be credited by the Secretary of the 

22 Treasury. 

23 (3) USE.—Amounts in the Reinsurance Fund 

24 shall be available, at the direction of FHFA Board, 

25 only for payment of obligations of the Facility under 


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1 guarantees issued by the Facility of timely payment 

2 of principal and interest on mortgage-backed securi3 ties, notes, and other obligations issued by the Facil4 ity and only to the extent that the FHFA Board de5 termines that the capital of the Facility is insuffi6 cient to cover such obligations. 

7 (4) INVESTMENTS.—The Secretary may invest 

8 such amounts as the Secretary considers advisable in 

9 obligations issued or guaranteed by the United 

10 States. 

11 SEC. 107. DEFICIT REDUCTION. 

12 Any receipts and earnings of the Facility in excess 

13 of amounts required to comply with the capital standards 

14 established pursuant to section 104, amounts required to 

15 be deposited in the Reinsurance Fund established under 

16 section 106(b), and amounts required for the repurchase 

17 of senior preferred stock of the enterprises issued pursu18 ant to the Senior Preferred Stock Purchase Agreements 

19 entered into between the Department of the Treasury and 

20 the enterprises in September 2008 (as such Agreement 

21 may be amended and restated), shall be transferred into 

22 the General Fund of the Treasury and used to reduce the 

23 budget deficit of the Federal Government. 

24 SEC. 108. PORTFOLIO REDUCTION. 

25 (a) LIMITATION.— 


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1 (1) IN GENERAL.—The Facility may not own 

2 mortgage assets in excess of $250,000,000,000, as 

3 such amount shall be adjusted by the FHFA Board, 

4 effective January 1 of each year beginning after the 

5 date of the enactment of this Act, in accordance 

6 with an appropriate inflationary index, as deter7 mined by the FHFA Board. The FHFA Board shall 

8 cause notice of each such adjustment to be published 

9 promptly in the Federal Register. 

10 (2) DEFINITION.—For purposes of this section, 

11 the term ‘‘mortgage assets’’ means, with respect to 

12 the Facility, assets of the Facility consisting of 

13 mortgages, mortgage loans, mortgage-related securi14 ties, participation certificates, mortgage-backed com15 mercial paper, obligations of real estate mortgage in16 vestment conduits and similar assets, in each case to 

17 the extent such assets would appear on the balance 

18 sheet of the Facility. 

19 (b) USE.—Mortgage assets owned by the Facility 

20 shall be available for use— 

21 (1) to support multifamily housing and residen22 tial mortgages that cannot readily be securitized; 

23 (2) to provide financing to support residential 

24 mortgage markets affected by economic downturns; 

25 and 


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1 (3) to modify delinquent mortgages that are 

2 purchased from pools of mortgages backing or on 

3 which are based mortgage-backed securities issued 

4 and guaranteed by the Facility. 

5 (c) MONITORING.—The FHFA Board shall monitor 

6 the mortgage assets owned by the Facility to ensure com7 pliance with this section. 

8 (d) SAFETY VALVE.—Notwithstanding subsection 

9 (a), the FHFA Board may provide for the temporary in10 crease in the limitation under subsection (a) on mortgage 

11 assets owned by the Facility if the FHFA Board deter12 mines that the there has been a substantial reduction in 

13 the availability of private residential mortgage financing, 

14 taking into consideration such indicia as the FHFA Board 

15 considers appropriate. 

16 SEC. 109. INITIAL STANDARDS. 

17 Not later than the expiration of the 6-month period 

18 beginning upon the appointment of all initial members of 

19 the FHFA Board pursuant to section 301(b) the FHFA 

20 Board shall issue such regulations, guidelines, orders, re21 quirements, and standards pursuant to section 1396C of 

22 the Federal Housing Enterprises Financial Safety and 

23 Soundness Act of 1992 (as added by section 302 of this 

24 Act) as may be required under this title for the establish25 ment and operation of the Facility. 


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1 TITLE II—ENDING THE 

2 CONSERVATORSHIPS OF 

3 FANNIE MAE AND FREDDIE 

4 MAC 

5 SEC. 201. TREASURY PLAN. 

6 (a) IN GENERAL.—Not later than the expiration of 

7 the 6-month period beginning upon the date of the enact8 ment of this Act, the Secretary of the Treasury, in con9 sultation with the Director of the Federal Housing Fi10 nance Agency, shall develop and submit to the Congress 

11 a plan that provides for the orderly and timely wind-down 

12 and termination of the enterprises, during such period as 

13 the Secretary considers appropriate but in no case ending 

14 later than 36 months after the date of the enactment of 

15 this Act, in accordance with this section and the receiver16 ship authority under section 1367 of the Federal Housing 

17 Enterprises Financial Safety and Soundness Act of 1992 

18 and in a manner that avoids excessive disruption to the 

19 stability of the residential mortgage market. 

20 (b) CONTENTS.—Such plan— 

21 (1) shall provide for the termination, during the 

22 period referred to in subsection (a), of the authority 

23 of the enterprises to conduct any new business; 

24 (2) shall provide for the transfer of the assets, 

25 obligations, and liabilities of the enterprises to the 


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1 Secondary Market Facility for Residential Mort2 gages established under title I; 

3 (3) may provide for the Facility to segregate 

4 such sound assets and troubled or impaired assets of 

5 the enterprises into separate trusts or entities; 

6 (4) shall provide for the full repayment to the 

7 taxpayers and the Federal Government of the invest8 ment made by the taxpayers and the Federal Gov9 ernment in the enterprises, which repayment shall be 

10 made by the Facility from income generated by the 

11 Facility, in a manner that is generally consistent 

12 with the manner in which the taxpayers and the 

13 Federal Government were reimbursed by financial 

14 institutions assisted under the Troubled Assets Re15 lief Program of the Secretary of the Treasury under 

16 title I of the Emergency Economic Stabilization Act 

17 of 2008 (12 U.S.C. 5211 et seq.), or in such other 

18 manner as the Secretary considers appropriate; 

19 (5) shall provide for the Secondary Market Fa20 cility for Residential Mortgages established under 

21 title I of this Act to purchase from the Secretary of 

22 the Treasury all preferred stock held by the Treas23 ury pursuant to purchase under the Senior Pre24 ferred Stock Purchase Agreements entered into with 

25 the Treasury by the enterprises in September 2008 


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1 (as such Agreements have been amended and re2 stated); 

3 (6) shall provide that, notwithstanding any 

4 other provision of law, any provision of the Senior 

5 Preferred Stock Purchase Agreement entered into 

6 between the Department of the Treasury and an en7 terprise in September 2008 (as any such Agreement 

8 may be amended and restated), or any provision of 

9 any certificate in connection with such an Agree10 ment creating or designating the terms, powers, 

11 preferences, privileges, limitations, or any other con12 ditions of the Variable Liquidation Preference Senior 

13 Preferred Stock of an enterprise issued pursuant to 

14 such an Agreement, the annual rate of dividends 

15 paid on the Variable Liquidation Preference Senior 

16 Preferred Stock of each enterprise issued pursuant 

17 to such an Agreement shall, until all such stock is 

18 purchases by the Facility pursuant to paragraph (5) 

19 of this subsection— 

20 (A) be reduced to not more than 5 percent; 

21 and 

22 (B) be variable and based on market con23 ditions and performance; 

24 (7) shall provide for the fulfillment of all obliga25 tions of the enterprises under any outstanding debt 


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1 obligations and mortgage-backed securities of the 

2 enterprises; and 

3 (8) shall provide a date during the period re4 ferred to in subsection (a) for the repeal of the Fed5 eral National Mortgage Association Charter Act and 

6 the Federal Home Loan Mortgage Corporation Act. 

7 SEC. 202. IMPLEMENTATION OF PLAN. 

8 The Secretary shall— 

9 (1) commence implementation of the plan sub10 mitted to the Congress under section 201 upon expi11 ration of the 90-day period beginning upon such 

12 submission; and 

13 (2) wind-down and terminate the enterprises in 

14 accordance with the terms of the plan. 

15 SEC. 203. REPEAL OF CHARTER ACTS. 

16 Upon the date specified in the plan pursuant to sec17 tion 201(b)(8), the following provisions are repealed: 

18 (1) The Federal National Mortgage Association 

19 Charter Act (12 U.S.C. 1716 et seq.). 

20 (2) The Federal Home Loan Mortgage Cor21 poration Act (12 U.S.C. 1451 et seq.). 


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1 TITLE III—FEDERAL HOUSING 

2 FINANCE AGENCY 

3 SEC. 301. ESTABLISHMENT OF FEDERAL HOUSING FINANCE 

4 AGENCY BOARD. 

5 (a) ESTABLISHMENT.—Section 1312 of the Federal 

6 Housing Enterprises Financial Safety and Soundness Act 

7 of 1992 (12 U.S.C. 4512) is amended— 

8 (1) by striking the section designation and 

9 heading and all that follows through subsection (c); 

10 (2) by striking subsections (e) through (g); 

11 (3) by redesignating subsection (d) as sub12 section (l); and 

13 (4) by inserting before subsection (l) (as so re14 designated) the following: 

15 ‘‘SEC. 1312. FEDERAL HOUSING FINANCE AGENCY BOARD. 

16 ‘‘(a) ESTABLISHMENT.—There is established the 

17 Federal Housing Finance Agency Board, who shall govern 

18 the Agency. 

19 ‘‘(b) APPOINTMENT.—The FHFA Board which shall 

20 consist of 5 members, as follows: 

21 ‘‘(1) EX OFFICIO MEMBERS.—Two ex officio 

22 members who shall be— 

23 ‘‘(A) the Secretary of the Treasury or the 

24 Secretary’s designee; and 


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1 ‘‘(B) the Secretary of Housing and Urban 

2 Development or the Secretary’s designee. 

3 ‘‘(2) APPOINTED MEMBERS.—Three members, 

4 who shall be appointed by the President, by and 

5 with the advice and consent of the Senate, who shall 

6 include— 

7 ‘‘(A) one member who shall possess exten8 sive experience and expertise in financial man9 agement or oversight, capital markets (includ10 ing debt markets), the secondary mortgage 

11 market, and mortgage-backed securities; and 

12 ‘‘(B) two members who shall possess exten13 sive experience and expertise in mortgage fi14 nance (including single-family and multifamily 

15 housing mortgage finance and with credit 

16 unions and smaller financial institutions), devel17 opment of affordable housing, and economic de18 velopment and revitalization. 

19 ‘‘(c) POLITICAL AFFILIATION.—Not more than three 

20 members of the FHFA Board may be members of the 

21 same political party. 

22 ‘‘(d) CHAIRPERSON.—The Chairperson of the FHFA 

23 Board shall be designated by the President at the time 

24 of appointment. The Chairperson shall designate another 


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1 member to serve as Acting Chairperson during the absence 

2 or disability of the Chairperson. 

3 ‘‘(e) TERM; REMOVAL.—Each member of the FHFA 

4 Board shall be appointed for a term of 5 years, and may 

5 be removed by the President only for cause. 

6 ‘‘(f) VACANCIES.—A member of the FHFA Board 

7 appointed to fill a vacancy occurring before the expiration 

8 of the term for which the member’s predecessor was ap9 pointed shall be appointed only for the remainder of that 

10 term. 

11 ‘‘(g) CONTINUATION OF MEMBERSHIP.—A member 

12 of the FHFA Board may serve after the expiration of the 

13 member’s term until a successor has been appointed. 

14 ‘‘(h) COMPENSATION.—Members of the FHFA 

15 Board shall each receive compensation at the rate pre16 scribed for level III of the Executive Schedule under sec17 tion 5314 of title 5, United States Code. 

18 ‘‘(i) MEETINGS.—The FHFA Board shall meet upon 

19 notice by the Chairperson, but in no event shall the FHFA 

20 Board meet less frequently than once every 2 months. Any 

21 member of the FHA Board may, upon giving written no22 tice to the Chairperson, require a special meeting of the 

23 FHFA Board, which shall be convened by the Chairperson 

24 within 30 days after such notice. 


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1 ‘‘(j) TESTIMONY.—On an annual basis, the Board 

2 shall testify before the Congress regarding the safety and 

3 soundness of the Secondary Market Facility for Residen4 tial Mortgages, any material deficiencies in the conduct 

5 of the operations of the Facility; the overall operational 

6 status of the Facility; operations, resources, and perform7 ance of the FHFA Board, and such other matters relating 

8 to the FHFA Board and the Facility. 

9 ‘‘(k) ADVISORY COMMITTEE.— 

10 ‘‘(1) ESTABLISHMENT.—There is established an 

11 Advisory Committee to consist of 12 members who 

12 shall be appointed by the FHFA Board. 

13 ‘‘(2) MEMBERSHIP.—Members of the Advisory 

14 Committee shall be broadly representative of mort15 gage loan originators, investors in mortgage-backed 

16 securities, and consumer advocacy organizations, 

17 and shall include— 

18 ‘‘(A) 3 members who have extensive experi19 ence and expertise in financial management or 

20 oversight, capital markets (including debt mar21 kets), the secondary mortgage market, and 

22 mortgage-backed securities; 

23 ‘‘(B) 3 members who have extensive expe24 rience and expertise in mortgage finance, in25 cluding with single family and multifamily 


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1 housing and with credit unions and small insti2 tutions; 

3 ‘‘(C) 3 members who have extensive experi4 ence and expertise in mortgage loan origination 

5 and closing, including mortgage bankers, mort6 gage brokers, settlement services providers; and 

7 ‘‘(D) 3 members from consumer advocacy 

8 organizations and other organizations that the 

9 FHFA Board deems appropriate to advise the 

10 FHFA Board in effectively carrying out its 

11 oversight of the Facility. 

12 ‘‘(3) MEETINGS.—The Advisory Committee 

13 shall meet at least once each calendar quarter. 

14 ‘‘(4) DUTIES.—The Advisory Committee shall 

15 advise the FHFA Board on its operations and dis16 charge of its duties, and shall submit its own com17 ments to the Congress on the extent to which the 

18 FHFA Board is meeting its responsibilities under 

19 the law and any suggestions for improvements in 

20 such regard.’’. 

21 (b) TRANSITION.— 

22 (1) TIMING OF APPOINTMENTS.—The President 

23 shall endeavor to appoint and have confirmed all ini24 tial members of the Federal Housing Finance Agen25 cy Board pursuant to section 1312(b)(2) of the FedVerDate Mar 15 2010 06:08 Jul 07, 2011 Jkt 099200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H2413.IH H2413

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1 eral Housing Enterprises Financial Safety and 

2 Soundness Act of 1992 (as amended by subsection 

3 (a)(1) of this section) not later than the expiration 

4 of the 6-month period beginning upon the date of 

5 the enactment of this Act. 

6 (2) CONTINUED SERVICE OF DIRECTOR.—Not7 withstanding the amendment made by subsection 

8 (a), during the period beginning on the date of the 

9 enactment of this Act and ending upon the first date 

10 on which all initial members of the Federal Housing 

11 Finance Agency Board are appointed and confirmed, 

12 the person serving as the Director of the Federal 

13 Housing Finance Agency on such date of enactment 

14 shall act for all purposes as, and with the full pow15 ers of, the Federal Housing Finance Agency Board. 

16 (c) CONFORMING AMENDMENT; REFERENCES.— 

17 (1) CONFORMING AMENDMENT.—Section 5313 

18 of title 5, United States Code, is amended by strik19 ing the item relating to Director of the Federal 

20 Housing Finance Agency. 

21 (2) REFERENCES.—Any references to the Di22 rector of the Federal Housing Finance Agency in 

23 statutes, Executive orders, rules, regulations, direc24 tives, or delegations of authority shall be deemed to 

25 refer to the Federal Housing Finance Agency Board 


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1 established under the amendment made by sub2 section (a) of this section. 

3 SEC. 302. SUPERVISION AND REGULATION OF FACILITY BY 

4 FHFA. 

5 The Federal Housing Enterprises Financial Safety 

6 and Soundness Act of 1992 is amended by adding at the 

7 end the following new subtitle: 

8 ‘‘Subtitle F—Supervision and Regu9 lation of Secondary Market Fa10 cility for Residential Mortgages 

11 ‘‘SEC. 1396. OVERSIGHT OF FACILITY. 

12 ‘‘(a) AUTHORITY.— 

13 ‘‘(1) IN GENERAL.—The Secondary Market Fa14 cility for Residential Mortgages established by title 

15 I of the Secondary Market Facility for Residential 

16 Mortgages Act of 2011 (in this subtitle referred to 

17 as the ‘Facility’) shall be subject to the supervision 

18 and regulation of the FHFA Board. The FHFA 

19 Board shall have general regulatory authority over 

20 the Facility and shall exercise such authority, and 

21 may issue such regulations, orders, and interpreta22 tions as the FHFA Board determines necessary to 

23 ensure that the purposes of title I of such Act and 

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1 ried out and that the Facility is operated in a safe 

2 and sound manner. 

3 ‘‘(2) LIMITATION.—Any authority under this 

4 subtitle of the FHFA Board to supervise and regu5 late the Facility may not be construed to authorize 

6 the FHFA Board to establish or regulate the 

7 amount of guarantee fees under section 105 of the 

8 Secondary Market Facility for Residential Mort9 gages Act of 2011. 

10 ‘‘(b) USE OF EXISTING AUTHORITY.—Except as pro11 vided in this section, the Facility and a Facility-affiliated 

12 party shall be subject to the same supervisory and enforce13 ment powers of the Director under this title, to the same 

14 extent as if the Facility was a regulated entity and the 

15 Facility-affiliated party was an entity-affiliated party, in16 cluding— 

17 ‘‘(1) authority to establish and enforce pruden18 tial management and operations standards under 

19 section 1313B (12 U.S.C. 4513b); 

20 ‘‘(2) authority to require reports under section 

21 1314 (12 U.S.C. 4514); 

22 ‘‘(3) authority to conduct examinations under 

23 section 1317 (12 U.S.C. 4517); 

24 ‘‘(4) the enforcement powers under sections 

25 1371 through 1379 (12 U.S.C. 4631–9); and 


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1 ‘‘(5) authority to take prompt corrective super2 visory actions in response to capital classifications as 

3 provided for in sections 1365 and 1366 (12 U.S.C. 

4 4615, 4616). 

5 ‘‘SEC. 1396A. MONITORING AND EVALUATION. 

6 ‘‘(a) MONITORING.—The FHFA Board shall monitor 

7 compliance by the Facility with the requirements of title 

8 I of the Secondary Market Facility for Residential Mort9 gages Act of 2011. 

10 ‘‘(b) EVALUATION.—Upon the expiration of the 5- 

11 year period beginning on the date of the enactment of the 

12 Secondary Market Facility for Residential Mortgages Act 

13 of 2011, the FHFA Board shall submit to the Congress 

14 a report analyzing the performance of the Facility in meet15 ing the purposes of title I of such Act. Such report shall 

16 analyze and compare the performance of the enterprises 

17 during the period consisting of the year 2008 and years 

18 prior to the performance of the enterprises and the Facil19 ity during the period consisting of the year 2009 and years 

20 after through the end of such 5-year period. 

21 ‘‘SEC. 1396B. FUNDING OF FHFA BOARD OVERSIGHT OF FA22 CILITY. 

23 ‘‘(a) ANNUAL ASSESSMENTS.—The FHFA Board 

24 shall establish and collect from the Facility annual assess25 ments in an amount not exceeding the amount sufficient 


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1 to provide for reasonable costs (including administrative 

2 costs) and expenses of the Agency attributable to the 

3 Agency’s supervision and regulation of the Facility, in4 cluding— 

5 ‘‘(1) the expenses of any examinations pursuant 

6 section 1396(b)(3); 

7 ‘‘(2) the expenses of monitoring pursuant to 

8 section 1396A(a); and 

9 ‘‘(3) such amounts in excess of actual expenses 

10 for any given year as deemed necessary by the 

11 FHFA Board to maintain a working capital fund in 

12 accordance with subsection (e) of this section. 

13 ‘‘(b) TIMING OF PAYMENT.—The annual assessment 

14 shall be payable semiannually for each fiscal year, on Oc15 tober 1 and April 1. 

16 ‘‘(c) INCREASED COSTS OF REGULATION.— 

17 ‘‘(1) INCREASE FOR INADEQUATE CAPITALIZA18 TION.—If the FHFA Board determines that the Fa19 cility is not adequately capitalized in accordance 

20 with the standards established under section 104 of 

21 the Secondary Market Facility for Residential Mort22 gages Act of 2011, the semiannual payments made 

23 pursuant to subsection (b) by the Facility may be in24 creased, as necessary, in the discretion of the Board 


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1 to pay additional estimated costs of regulation of the 

2 Facility. 

3 ‘‘(2) ADDITIONAL ASSESSMENT FOR DEFI4 CIENCIES.—If at any time, as a result of increased 

5 costs of regulation of the Facility that is not classi6 fied (for purposes of the standards established under 

7 section 104 of such Act) as adequately capitalized or 

8 as the result of supervisory or enforcement activities 

9 pursuant to this subtitle for the Facility, the amount 

10 available from any semiannual payment made by the 

11 Facility pursuant to subsection (b) is insufficient to 

12 cover the costs of the Agency with respect to the Fa13 cility, the FHFA Board may make and collect from 

14 the Facility an immediate assessment to cover the 

15 amount of such deficiency for the semiannual period. 

16 If, at the end of any semiannual period during which 

17 such an assessment is made, any amount remains 

18 from such assessment, such remaining amount shall 

19 be deducted from the assessment for the Facility for 

20 the following semiannual period. 

21 ‘‘(d) SURPLUS.—Except with respect to amounts col22 lected pursuant to subsection (a)(3), if any amount from 

23 any annual assessment collected from the Facility remains 

24 unobligated at the end of the year for which the assess25 ment was collected, such amount shall be credited to the 


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1 assessment to be collected from the Facility for the fol2 lowing year. 

3 ‘‘(e) WORKING CAPITAL FUND.—At the end of each 

4 year for which an assessment under this section is made, 

5 the FHFA Board shall remit to the Facility any amount 

6 of assessment collected from the Facility that is attrib7 utable to subsection (a)(3) and is in excess of the amount 

8 the FHFA Board deems necessary to maintain a working 

9 capital fund. 

10 ‘‘(f) TREATMENT OF ASSESSMENTS.— 

11 ‘‘(1) DEPOSIT.—Amounts received by the 

12 FHFA Board from assessments under this section 

13 may be deposited by the Board in the manner pro14 vided in section 5234 of the Revised Statutes of the 

15 United States (12 U.S.C. 192) for monies deposited 

16 by the Comptroller of the Currency. 

17 ‘‘(2) NOT GOVERNMENT FUNDS.—The amounts 

18 received by the FHFA Board from any assessment 

19 under this section shall not be construed to be Gov20 ernment or public funds or appropriated money. 

21 ‘‘(3) NO APPORTIONMENT OF FUNDS.—Not22 withstanding any other provision of law, the 

23 amounts received by the FHFA Board from any as24 sessment under this section shall not be subject to 

25 apportionment for the purpose of chapter 15 of title 


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1 31, United States Code, or under any other author2 ity. 

3 ‘‘(4) USE OF FUNDS.—The FHFA Board may 

4 use any amounts received by the Board from assess5 ments under this section for compensation of the 

6 Board and other employees of the Agency and for all 

7 other expenses of the Board and the Agency. 

8 ‘‘(5) TREASURY INVESTMENTS.— 

9 ‘‘(A) AUTHORITY.—The FHFA Board may 

10 request the Secretary of the Treasury to invest 

11 such portions of amounts received by the Board 

12 from assessments paid under this section that, 

13 in the Board’s discretion, are not required to 

14 meet the current working needs of the Agency. 

15 ‘‘(B) GOVERNMENT OBLIGATIONS.—Pursu16 ant to a request under subparagraph (A), the 

17 Secretary of the Treasury shall invest such 

18 amounts in Government obligations guaranteed 

19 as to principal and interest by the United 

20 States with maturities suitable to the needs of 

21 the Agency and bearing interest at a rate deter22 mined by the Secretary of the Treasury taking 

23 into consideration current market yields on out24 standing marketable obligations of the United 

25 States of comparable maturity. 


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1 ‘‘SEC. 1396C. REGULATIONS AND ORDERS. 

2 ‘‘(a) AUTHORITY.—The FHFA Board shall issue any 

3 regulations, guidelines, or orders necessary to carry out 

4 the duties of the FHFA Board under this subtitle and 

5 title I of the Secondary Market Facility for Residential 

6 Mortgages Act of 2011, and to ensure that the purposes 

7 of this subtitle and title I of such Act are accomplished. 

8 ‘‘(b) NOTICE AND COMMENT.—Any regulations 

9 issued by the FHFA Board under this section shall be 

10 issued after notice and opportunity for public comment 

11 pursuant to the provisions of section 553 of title 5.’’. 

12 SEC. 303. CONFORMING AMENDMENTS. 

13 The Federal Housing Enterprises Financial Safety 

14 and Soundness Act of 1992 is amended— 

15 (1) in section 1303 (12 U.S.C. 4502)— 

16 (A) by striking paragraph (4); 

17 (B) by redesignating paragraphs (5) 

18 through (8) as paragraphs (4) through (7), re19 spectively; 

20 (C) by striking paragraph (9); 

21 (D) by redesignating paragraphs (10) 

22 through (12) as paragraphs (8) through (10), 

23 respectively; 

24 (E) by inserting before paragraph (13) the 

25 following new paragraph: 


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1 ‘‘(11) FHFA BOARD.—The term ‘FHFA 

2 Board’ means the Federal Housing Finance Agency 

3 Board established under section 1312.’’; and 

4 (F) by redesignating paragraphs (13) 

5 through (31) as paragraphs (12) through (30), 

6 respectively; 

7 (2) by striking section 1313A (12 U.S.C. 

8 4513a: relating to the Federal Housing Finance 

9 Agency Oversight Board); 

10 (3) by striking ‘‘Director’’ each place such term 

11 appears (except in section 1316(g), 1338(i), and 

12 1355) and inserting ‘‘FHFA Board’’; 

13 (4) by striking ‘‘Director’s’’ each place such 

14 term appears and inserting ‘‘FHFA Board’s’’; 

15 (5) by striking ‘‘DIRECTOR’’ each place such 

16 term appears in the section headings for sections 

17 1313, 1319B, and 1369D and inserting ‘‘FHFA

18 BOARD’’; and 

19 (6) in the heading for part 2 of subtitle A, by 

20 striking ‘‘DIRECTOR’’ and inserting ‘‘FHFA

21 BOARD’’. 

Æ 


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