I 

112TH CONGRESS 

1ST SESSION H. R. 31 

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 

JANUARY 5, 2011 

Mrs. BIGGERT 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 2011’’. 


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1 SEC. 2. QUARTERLY REPORTS DURING CONSERVATORSHIP. 

2 (a) REPORTING REQUIREMENT.—For each reporting 

3 period, the Inspector General of the Federal Housing Fi4 nance Agency shall submit to the Congress a report for 

5 each enterprise that summarizes the activities of the In6 spector General with respect to such enterprise, and the 

7 activities and condition of such enterprise, during such re8 porting period. 

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

10 section for an enterprise for a reporting period shall in11 clude the following information: 

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

13 total liabilities of the enterprise as of the reporting 

14 date, with a detailed breakdown of the potential level 

15 of risk to the Federal Government inherent in the 

16 dollar amount of each separate type of liability and 

17 a quantification as to how the risk to the Federal 

18 Government has changed from the previous report19 ing period, distinguishing between changes attrib20 utable to volume and changes attributable to 

21 changes in risk levels. 

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

23 all compensation and bonuses paid to any executive 

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

25 the Housing and Community Development Act of 

26 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, 2009, and 2010 

13 through foreclosure mitigation activities of the enter14 prise that have, during such period, entered into de15 fault. 

16 (4) A description of any mortgage fraud preven17 tion activities undertaken by the enterprise during 

18 such period and data describing the extent of mort19 gage fraud during such period, including descrip20 tions of the efforts of the enterprise to prevent or 

21 detect mortgage fraud, of the pervasiveness of mort22 gage fraud, and of the most prevalent types of mort23 gage fraud detected. 

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

25 informal communication between Governors and 


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1 staff of the Board of Governors of the Federal Re2 serve System and executives in the enterprise and 

3 any formal or informal communication between offi4 cials and staff of the Department of the Treasury 

5 and the Governors and staff of the Board of Gov6 ernors of the Federal Reserve System and executives 

7 in the enterprise regarding the purchase or sale of 

8 any enterprise-related securities. 

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

10 and activities of the enterprise during such period 

11 that are not consistent with the mission of the enter12 prise as provided under Federal law. 

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

14 investments in the enterprise by the Department of 

15 the Treasury during such period and any increase 

16 during such period in the authorized amount of eq17 uity investments by such Department. 

18 (8) An analysis of the capital levels and port19 folio size of the enterprise during such period and 

20 their impacts on the safety and soundness of the en21 terprise. 

22 (9) A description and analysis of the under23 writing standards of the enterprise applicable during 

24 such period, including the criteria for safety and 

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1 family, and condominium residential homes 

2 securitized by the enterprise and the ability of such 

3 criteria to ensure such safety and soundness. 

4 (10) An analysis of actions taken by the enter5 prise that had a beneficial or harmful effect on hold6 ers of enterprise-related securities, in particular, pre7 ferred stock issued prior to September 6, 2008. 

8 (11) Any other information that the Inspector 

9 General considers relevant or important with respect 

10 to the enterprise, and the activities and condition of 

11 the enterprise. 

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

13 (1) INITIAL PERIOD.—The first reporting pe14 riod for each enterprise shall be the period that 

15 began upon the commencement of the conservator16 ship period for the enterprise and that ends upon 

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

18 required under this section for such period shall be 

19 submitted not later than the expiration of the 60- 

20 day period beginning on the date of the enactment 

21 of this Act. 

22 (2) QUARTERLY PERIODS.—After the first re23 porting period, the reporting periods for each enter24 prise shall be each calendar quarter that concludes 

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1 port for each such reporting period shall be sub2 mitted not later than the expiration of the 60-day 

3 period beginning upon the conclusion of such report4 ing period. 

5 (3) RECEIVERSHIP.—Notwithstanding para6 graph (2), if at any time a receiver is appointed for 

7 an enterprise pursuant to section 1367 of the Hous8 ing and Community Development Act of 1992 (12 

9 U.S.C. 4617), the reporting periods for the enter10 prise during such receivership shall be each calendar 

11 month (or such shorter period as the Inspector Gen12 eral considers appropriate). Each report for each 

13 such reporting period shall be submitted not later 

14 than the expiration of the 30-day period beginning 

15 upon the conclusion of such reporting period. 

16 (4) NATIONALIZATION.—Notwithstanding para17 graph (2), if at any time the Federal Government or 

18 any agency or entity of the Federal Government ob19 tains control of an enterprise under law or through 

20 ownership of voting stock of the enterprise, or the 

21 Inspector General determines that the enterprise has 

22 otherwise been nationalized, the reporting periods 

23 for the enterprise after such nationalization occurs 

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

25 such period beginning upon such nationalization (or 


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1 such shorter period as the Inspector General con2 siders appropriate). Each report for each such re3 porting period shall be submitted not later than the 

4 expiration of the 60-day period beginning upon the 

5 conclusion of such reporting period. 

6 (d) PUBLIC AVAILABILITY.—The Inspector General 

7 shall— 

8 (1) make information regarding the activities of 

9 the Inspector General, including each report sub10 mitted to the Congress pursuant to this section, 

11 available to the public, including through a World 

12 Wide Web site of the Federal Housing Finance 

13 Agency; and 

14 (2) establish an electronic mail address and a 

15 toll-free telephone number, and shall publicize the 

16 availability of such address and number, by which 

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

18 enterprise. 

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

20 following definitions shall apply: 

21 (1) CONSERVATORSHIP PERIOD.—The term 

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

23 enterprise, the period that— 

24 (A) began upon appointment of the Fed25 eral Housing Finance Agency as conservator for 


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1 the enterprise on September 6, 2008, pursuant 

2 to section 1367 of the Housing and Community 

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

4 and 

5 (B) ends upon the termination of such con6 servatorship of the enterprise. 

7 (2) INSPECTOR GENERAL.—The term ‘‘Inspec8 tor General’’ means the Inspector General of the 

9 Federal Housing Finance Agency, appointed pursu10 ant to section 1317(d) of the Housing and Commu11 nity Development Act of 1992 (12 U.S.C. 4517). 

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

13 means the Federal National Mortgage Association 

14 and the Federal Home Loan Mortgage Corporation. 

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

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

17 (2), (3), or (4) of subsection (c). 

18 SEC. 3. INSPECTOR GENERAL OF THE FEDERAL HOUSING 

19 FINANCE AGENCY. 

20 Section 1317 of the Housing and Community Devel21 opment Act of 1992 (12 U.S.C. 4517) is amended by 

22 striking subsection (d) and inserting the following new 

23 subsection: 

24 ‘‘(d) INSPECTOR GENERAL.— 


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1 ‘‘(1) APPOINTMENT.—There shall be within the 

2 Agency an Inspector General, who shall be appointed 

3 in accordance with section 3(a) of the Inspector 

4 General Act of 1978. 

5 ‘‘(2) DIRECT HIRE AUTHORITY.— 

6 ‘‘(A) APPOINTMENT AUTHORITY.—Subject 

7 to subparagraph (B), the Inspector General of 

8 the Agency may appoint candidates to any posi9 tion in Office of the Inspector General of the 

10 Agency— 

11 ‘‘(i) in accordance with the statutes, 

12 rules, and regulations governing appoint13 ments in the excepted service; and 

14 ‘‘(ii) notwithstanding any statutes, 

15 rules, and regulations governing appoint16 ments in the competitive service. 

17 ‘‘(B) APPLICABILITY.—Subparagraph (A) 

18 shall apply with respect to any position within 

19 the Office of the Inspector General of the Agen20 cy, and the authority under such subparagraph 

21 shall be effective only during the 12-month pe22 riod beginning upon the enactment of the 

23 Fannie Mae and Freddie Mac Accountability 

24 and Transparency for Taxpayers Act of 2011. 


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1 ‘‘(C) DUAL COMPENSATION WAIVER AU2 THORITY.— 

3 ‘‘(i) WAIVER AUTHORITY.—Subject to 

4 subparagraph (B) and notwithstanding 

5 section 8468 of title 5, United States 

6 Code, or any other statute, rule, or regula7 tion prescribing the termination of retire8 ment annuities or the offset of such annu9 ities for annuitants who are re-employed 

10 by the Federal Government, if an annu11 itant receiving an annuity from the Civil 

12 Service Retirement and Disability Fund 

13 becomes employed in a position within the 

14 Office of the Inspector General of the 

15 Agency, the annuity of such annuitant 

16 shall continue without termination or off17 set. An annuitant so reemployed shall not 

18 be considered an employee for purposes of 

19 chapter 83 or 84 of title 5, United States 

20 Code. 

21 ‘‘(ii) APPLICABILITY.—Subparagraph 

22 (A) shall apply with respect to any position 

23 within the Office of the Inspector General 

24 of the Agency, and the authority under 

25 such subparagraph shall be effective only 


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1 during the 36-month period beginning 

2 upon the enactment of the Fannie Mae 

3 and Freddie Mac Accountability and 

4 Transparency for Taxpayers Act of 2011. 

5 ‘‘(3) LAW ENFORCEMENT AUTHORITY.—The 

6 Office of the Inspector General of the Agency shall 

7 be treated as an office included under section 

8 6(e)(3) of the Inspector General Act of 1978 (5 

9 U.S.C. App.), relating to the exemption from the ini10 tial determination of eligibility by the Attorney Gen11 eral.’’. 

Æ 


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