(c) AMENDMENTS TO FREDDIE MAC ACT.—The Fed-
eral Home Loan Mortgage Corporation Act is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ each 
place such term appears, and inserting ‘‘Director of 
the Federal Housing Finance Agency’’, in—
(A) 
section 
303(b)(2) 
(12 
U.S.C. 
1452(b)(2)); 
(B) 
section 
303(h)(2) 
(12 
U.S.C. 
1452(h)(2)); and 
(C) 
section 
307(c)(1) 
(12 
U.S.C. 
1456(c)(1)); 
(2) in sections 303(h)(1) and 307(f)(1) (12 
U.S.C. 1452(h)(1), 1456(f)(1)), by striking ‘‘Bank-
ing, Finance and Urban Affairs’’ each place such 
term appears and inserting ‘‘Financial Services’’; 
(3) in section 306(i) (12 U.S.C. 1455(i))—
(A) by striking ‘‘1316(c)’’ and inserting 
‘‘306(c)’’; and 
(B) by striking ‘‘section 106’’ and insert-
ing ‘‘section 1316’’; and 
(4) in section 307 (12 U.S.C. 1456))—
(A) in subsection (e)—
(i) in paragraph (1), by striking ‘‘Sec-
retary’’ the second place such term ap-
pears and inserting ‘‘Director’’; 
(ii) in paragraph (2), by striking 
‘‘Secretary’’ the second place such term 
appears and inserting ‘‘Director’’; and 
(iii) by striking ‘‘Secretary’’ each 
other place such term appears and insert-
ing ‘‘Director of the Federal Housing Fi-
nance Agency’’; and 
(B) in subsection (f), by striking ‘‘Sec-
retary’’ each place such term appears and in-
serting ‘‘Director of the Federal Housing Fi-
nance Agency’’. 
Subtitle B—Improvement of 
Mission Supervision 
SEC. 131. TRANSFER OF PRODUCT APPROVAL AND HOUS-
ING GOAL OVERSIGHT. 
Part 2 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4541 et 
seq.) is amended—
(1) by striking the designation and heading for 
the part and inserting the following:
‘‘PART 2—PRODUCT APPROVAL BY DIRECTOR, 
CORPORATE GOVERNANCE, AND ESTABLISH-
MENT OF HOUSING GOALS’’; 
and 
(2) by striking sections 1321 and 1322. 
SEC. 132. REVIEW OF ENTERPRISE PRODUCTS. 
(a) IN GENERAL.—Part 2 of subtitle A of title XIII 
of the Housing and Community Development Act of 1992 
is amended by inserting before section 1323 (12 U.S.C. 
4543) the following new section: 
‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR PRODUCTS 
OF ENTERPRISES. 
‘‘(a) IN GENERAL.—The Director shall require each 
enterprise to obtain the approval of the Director for any 
product of the enterprise before initially offering the prod-
uct. 
‘‘(b) STANDARD FOR APPROVAL.—In considering any 
request for approval of a product pursuant to subsection 
(a), the Director shall make a determination that—
‘‘(1) in the case of a product of the Federal Na-
tional Mortgage Association, the Director determines 
that the product is authorized under paragraph (2), 
(3), (4), or (5) of section 302(b) or section 304 of 
the Federal National Mortgage Association Charter 
Act, (12 U.S.C. 1717(b), 1719);
‘‘(2) in the case of a product of the Federal 
Home Loan Mortgage Corporation, the Director de-
termines that the product is authorized under para-
graph (1), (4), or (5) of section 305(a) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)); 
‘‘(3) the product is in the public interest; 
‘‘(4) the product is consistent with the safety 
and soundness of the enterprise or the mortgage fi-
nance system; and 
‘‘(5) the product does not materially impair the 
efficiency of the mortgage finance system. 
‘‘(c) PROCEDURE FOR APPROVAL.—
‘‘(1) SUBMISSION OF REQUEST.—An enterprise 
shall submit to the Director a written request for 
approval of a product that describes the product in 
such form as prescribed by order or regulation of the 
Director. 
‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme-
diately upon receipt of a request for approval of a 
product, as required under paragraph (1), the Direc-
tor shall publish notice of such request and of the 
period for public comment pursuant to paragraph 
(3) regarding the product, and a description of the 
product proposed by the request. The Director shall
give interested parties the opportunity to respond in 
writing to the proposed product. 
‘‘(3) PUBLIC COMMENT PERIOD.—During the 
30-day period beginning on the date of publication 
pursuant to paragraph (2) of a request for approval 
of a product, the Director shall receive public com-
ments regarding the proposed product. 
‘‘(4) OFFERING OF PRODUCT.—
‘‘(A) IN
GENERAL.—Not later than 30 
days after the close of the public comment pe-
riod described in paragraph (3), the Director 
shall approve or deny the product, specifying 
the grounds for such decision in writing. 
‘‘(B) FAILURE TO ACT.—If the Director 
fails to act within the 30-day period described 
in subparagraph (A), the enterprise may offer 
the product. 
‘‘(d) EXPEDITED REVIEW.—
‘‘(1) DETERMINATION AND NOTICE.—If an en-
terprise determines that any new activity, service, 
undertaking, or offering is not a product, as defined 
in subsection (f), the enterprise shall provide written 
notice to the Director prior to the commencement of 
such activity, service, undertaking, or offering.
‘‘(2) DIRECTOR DETERMINATION OF APPLICA-
BLE PROCEDURE.—Immediately upon receipt of any 
notice pursuant to paragraph (1), the Director shall 
make a determination under paragraph (3). 
‘‘(3) DETERMINATION
AND
TREATMENT
AS 
PRODUCT.—If the Director determines that any new 
activity, service, undertaking, or offering consists of, 
relates to, or involves a product—
‘‘(A) the Director shall notify the enter-
prise of the determination; 
‘‘(B) the new activity, service, undertaking, 
or offering described in the notice under para-
graph (1) shall be considered a product for pur-
poses of this section; and 
‘‘(C) the enterprise shall withdraw its re-
quest or submit a written request for approval 
of the product pursuant to subsection (c). 
‘‘(e) CONDITIONAL APPROVAL.—The Director may 
conditionally approve the offering of any product by an 
enterprise, and may establish terms, conditions, or limita-
tions with respect to such product with which the enter-
prise must comply in order to offer such product. 
‘‘(f) DEFINITION
OF PRODUCT.—For purposes of 
this section, the term ‘product’ does not include—
‘‘(1) the automated loan underwriting system of 
an enterprise in existence as of the date of the en-
actment of the Federal Housing Finance Reform 
Act of 2007, including any upgrade to the tech-
nology, operating system, or software to operate the 
underwriting system; or 
‘‘(2) any modification to the mortgage terms 
and conditions or mortgage underwriting criteria re-
lating to the mortgages that are purchased or guar-
anteed by an enterprise: Provided, That such modi-
fications do not alter the underlying transaction so 
as to include services or financing, other than resi-
dential mortgage financing, or create significant new 
exposure to risk for the enterprise or the holder of 
the mortgage. 
‘‘(g) NO LIMITATION.—Nothing in this section shall 
be deemed to restrict—
‘‘(1) the safety and soundness authority of the 
Director over all new and existing products or activi-
ties; or 
‘‘(2) the authority of the Director to review all 
new and existing products or activities to determine 
that such products or activities are consistent with 
the statutory mission of the enterprise.’’. 
(b) CONFORMING AMENDMENTS.—
(1) FANNIE
MAE.—Section 302(b)(6) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(6)) is amended—
(A) by striking ‘‘implement any new pro-
gram’’ and inserting ‘‘initially offer any prod-
uct’’; 
(B) by striking ‘‘section 1303’’ and insert-
ing ‘‘section 1321(f)’’; and 
(C) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ 
and inserting ‘‘except in accordance with sec-
tion 1321’’. 
(2) FREDDIE MAC.—Section 305(c) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(c)) is amended—
(A) by striking ‘‘implement any new pro-
gram’’ and inserting ‘‘initially offer any prod-
uct’’; 
(B) by striking ‘‘section 1303’’ and insert-
ing ‘‘section 1321(f)’’; and 
(C) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ 
and inserting ‘‘except in accordance with sec-
tion 1321’’.
(3) 1992 ACT.—Section 1303 of the Housing 
and Community Development Act of 1992 (12 
U.S.C. 4502), as amended by section 2 of this Act, 
is further amended—
(A) by striking paragraph (17) (relating to 
the definition of ‘‘new program’’); and 
(B) by redesignating paragraphs (18) 
through (23) as paragraphs (17) through (22), 
respectively. 
SEC. 133. CONFORMING LOAN LIMITS. 
(a) FANNIE MAE.—
(1) GENERAL LIMIT.—Section 302(b)(2) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)) is amended—
(A) in the 4th sentence, by striking ‘‘the 
Resolution Trust Corporation,’’; and 
(B) by striking the 7th and 8th sentences 
and inserting the following new sentences: ‘‘For 
2007, 
such 
limitations 
shall 
not 
exceed 
$417,000 for a mortgage secured by a single-
family residence, $533,850 for a mortgage se-
cured by a 2-family residence, $645,300 for a 
mortgage secured by a 3-family residence, and 
$801,950 for a mortgage secured by a 4-family 
residence, except that such maximum limita-
tions shall be adjusted effective January 1 of 
each year beginning with 2008, subject to the 
limitations in this paragraph. Each adjustment 
shall be made by adding to or subtracting from 
each such amount (as it may have been pre-
viously adjusted) a percentage thereof equal to 
the percentage increase or decrease, during the 
most recent 12-month or four-quarter period 
ending before the time of determining such an-
nual adjustment, in the housing price index 
maintained by the Director of the Federal 
Housing Finance Agency (pursuant to section 
1322 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541)).’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Char-
ter Act is (12 U.S.C. 1717(b)(2)) is amended by 
adding after the period at the end the following: 
‘‘Such foregoing limitations shall also be increased 
with respect to properties of a particular size located 
in any area for which the median price for such size 
residence exceeds the foregoing limitation for such 
size residence, to the lesser of 150 percent of such 
foregoing limitation for such size residence or the 
amount that is equal to the median price in such
area for such size residence, except that, subject to 
the order, if any, issued by the Director of the Fed-
eral Housing Finance Agency pursuant to section 
133(d)(3) of the Federal Housing Finance Reform 
Act of 2007, such increase shall apply only with re-
spect to mortgages on which are based securities 
issued and sold by the corporation.’’. 
(b) FREDDIE MAC.—
(1) GENERAL LIMIT.—Section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) is amended—
(A) in the 3rd sentence, by striking ‘‘the 
Resolution Trust Corporation,’’; and 
(B) by striking the 6th and 7th sentences 
and inserting the following new sentences: ‘‘For 
2007, 
such 
limitations 
shall 
not 
exceed 
$417,000 for a mortgage secured by a single-
family residence, $533,850 for a mortgage se-
cured by a 2-family residence, $645,300 for a 
mortgage secured by a 3-family residence, and 
$801,950 for a mortgage secured by a 4-family 
residence, except that such maximum limita-
tions shall be adjusted effective January 1 of 
each year beginning with 2008, subject to the 
limitations in this paragraph. Each adjustment
shall be made by adding to or subtracting from 
each such amount (as it may have been pre-
viously adjusted) a percentage thereof equal to 
the percentage increase or decrease, during the 
most recent 12-month or four-quarter period 
ending before the time of determining such an-
nual adjustment, in the housing price index 
maintained by the Director of the Federal 
Housing Finance Agency (pursuant to section 
1322 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541)).’’
(2) HIGH-COST AREA LIMIT.—Section 305(a)(2) 
of the Federal Home Loan Mortgage Corporation 
Act is amended by adding after the period at the 
end the following: ‘‘Such foregoing limitations shall 
also be increased with respect to properties of a par-
ticular size located in any area for which the median 
price for such size residence exceeds the foregoing 
limitation for such size residence, to the lesser of 
150 percent of such foregoing limitation for such 
size residence or the amount that is equal to the me-
dian price in such area for such size residence, ex-
cept that, subject to the order, if any, issued by the 
Director of the Federal Housing Finance Agency 
pursuant to section 133(d)(3) of the Federal Hous-
ing Finance Reform Act of 2007, such increase shall 
apply only with respect to mortgages on which are 
based securities issued and sold by the Corpora-
tion.’’. 
(c) HOUSING PRICE INDEX.—Subpart A of part 2 of 
subtitle A of title XIII of the Housing and Community 
Development Act of 1992 (as amended by the preceding 
provisions of this Act) is amended by inserting after sec-
tion 1321 (as added by section 132 of this Act) the fol-
lowing new section: 
‘‘SEC. 1322. HOUSING PRICE INDEX. 
‘‘(a) IN GENERAL.—The Director shall establish and 
maintain a method of assessing the national average 1-
family house price for use for adjusting the conforming 
loan limitations of the enterprises. In establishing such 
method, the Director shall take into consideration the 
monthly survey of all major lenders conducted by the Fed-
eral Housing Finance Agency to determine the national 
average 1-family house price, the House Price Index main-
tained by the Office of Federal Housing Enterprise Over-
sight of the Department of Housing and Urban Develop-
ment before the effective date under section 185 of the 
Federal Housing Finance Reform Act of 2007, any appro-
priate house price indexes of the Bureau of the Census
of the Department of Commerce, and any other indexes 
or measures that the Director considers appropriate. 
‘‘(b) GAO AUDIT.—
‘‘(1) IN GENERAL.—At such times as are re-
quired under paragraph (2), the Comptroller Gen-
eral of the United States shall conduct an audit of 
the methodology established by the Director under 
subsection (a) to determine whether the methodology 
established is an accurate and appropriate means of 
measuring changes to the national average 1-family 
house price. 
‘‘(2) TIMING.—An audit referred to in para-
graph (1) shall be conducted and completed not later 
than the expiration of the 180-day period that be-
gins upon each of the following dates: 
‘‘(A) ESTABLISHMENT.—The date upon 
which such methodology is initially established 
under subsection (a) in final form by the Direc-
tor. 
‘‘(B) MODIFICATION
OR
AMENDMENT.—
Each date upon which any modification or 
amendment to such methodology is adopted in 
final form by the Director. 
‘‘(3) REPORT.—Within 30 days of the comple-
tion of any audit conducted under this subsection,
the Comptroller General shall submit a report detail-
ing the results and conclusions of the audit to the 
Director, the Committee on Financial Services of the 
House of Representatives, and the Committee on 
Banking, Housing, and Urban Affairs of the Sen-
ate.’’. 
(d) CONDITIONS ON CONFORMING LOAN LIMIT FOR 
HIGH-COST AREAS.—
(1) STUDY.—The Director of the Federal 
Housing Finance Agency shall conduct a study 
under this subsection during the six-month period 
beginning on the effective date under section 185 of 
this Act. 
(2) ISSUES.—The study under this subsection 
shall determine—
(A) the effect that restricting the con-
forming loan limits for high-cost areas only to 
mortgages on which are based securities issued 
and sold by the Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage 
Corporation (as provided in the last sentence of 
section 302(b)(2) of the Federal National Mort-
gage Association Charter Act and the last sen-
tence of section 305(a)(2) of the Federal Home 
Loan Mortgage Corporation Act, pursuant to
the amendments made by subsections (a)(2) 
and (b)(2) of this section) would have on the 
cost to borrowers for mortgages on housing in 
such high-cost areas; 
(B) the effects that such restrictions would 
have on the availability of mortgages for hous-
ing in such high-cost areas; and 
(C) the extent to which the Federal Na-
tional Mortgage Association and the Federal 
Home Loan Mortgage Corporation will be able 
to issue and sell securities based on mortgages 
for housing located in such high-cost areas. 
(3) DETERMINATION.—
(A) IN GENERAL.—Not later than the ex-
piration of the six-month period specified in 
paragraph (1), the Director of the Federal 
Housing Finance Agency shall make a deter-
mination, based on the results of the study 
under this subsection, of whether the restriction 
of conforming loan limits for high-cost areas 
only to mortgages on which are based securities 
issued and sold by the Federal National Mort-
gage Association and the Federal Home Loan 
Mortgage Corporation (as provided in the 
amendments made by subsections (a)(2) and
(b)(2) of this section) will result in an increase 
in the cost to borrowers for mortgages on hous-
ing in such high-cost areas. 
(B) ORDER.—If such determination is that 
costs to borrowers on housing in such high-cost 
areas will be increased by such restrictions, the 
Director may issue an order terminating such 
restrictions, in whole or in part. 
(4) PUBLICATION.—Not later than the expira-
tion of the six-month period specified in paragraph 
(1), the Director of the Federal Housing Finance 
Agency shall cause to be published in the Federal 
Register—
(A) a report that—
(i) describes the study under this sub-
section; and 
(ii) sets forth the conclusions of the 
study regarding the issues to be deter-
mined under paragraph (2); and 
(B) notice of the determination of the Di-
rector under paragraph (3); and 
(C) the order of the Director under para-
graph (3). 
(5) DEFINITION.—For purposes of this sub-
section, the term ‘‘conforming loan limits for high-
cost areas’’ means the dollar amount limitations ap-
plicable under the section 302(b)(2) of the Federal 
National Mortgage Association Charter Act and sec-
tion 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (as amended by subsections (a) and 
(b) of this section) for areas described in the last 
sentence of such sections (as so amended). 
SEC. 134. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking section 
1324 (12 U.S.C. 4544) and inserting the following new 
section: 
‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
‘‘(a) IN GENERAL.—After reviewing and analyzing 
the reports submitted under section 309(n) of the Federal 
National Mortgage Association Charter Act, section 
307(f) of the Federal Home Loan Mortgage Corporation 
Act, and section 10(j)(11) of the Federal Home Loan 
Bank Act (12 U.S.C. 1430(j)(11)), the Director shall sub-
mit a report, not later than October 30 of each year, to 
the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, on the activities of each regu-
lated entity. 
‘‘(b) CONTENTS.—The report shall—
‘‘(1) discuss the extent to which—
‘‘(A) each enterprise is achieving the an-
nual housing goals established under subpart B 
of this part; 
‘‘(B) each enterprise is complying with sec-
tion 1337; 
‘‘(C) each Federal home loan bank is com-
plying with section 10(j) of the Federal Home 
Loan Bank Act; and 
‘‘(D) each regulated entity is achieving the 
purposes of the regulated entity established by 
law; 
‘‘(2) aggregate and analyze relevant data on in-
come to assess the compliance by each enterprise 
with the housing goals established under subpart B; 
‘‘(3) aggregate and analyze data on income, 
race, and gender by census tract and other relevant 
classifications, and compare such data with larger 
demographic, housing, and economic trends; 
‘‘(4) examine actions that—
‘‘(A) each enterprise has undertaken or 
could undertake to promote and expand the an-
nual goals established under subpart B and the 
purposes of the enterprise established by law; 
and 
‘‘(B) each Federal home loan bank has 
taken or could undertake to promote and ex-
pand the community investment program and 
affordable housing program of the bank estab-
lished under section subsections (i) and (j) of 
section 10 of the Federal Home Loan Bank 
Act; 
‘‘(5) examine the primary and secondary multi-
family housing mortgage markets and describe—
‘‘(A) the availability and liquidity of mort-
gage credit; 
‘‘(B) the status of efforts to provide stand-
ard credit terms and underwriting guidelines 
for multifamily housing and to securitize such 
mortgage products; and 
‘‘(C) any factors inhibiting such standard-
ization and securitization; 
‘‘(6) examine actions each regulated entity has 
undertaken and could undertake to promote and ex-
pand opportunities for first-time homebuyers, includ-
ing the use of alternative credit scoring;
‘‘(7) describe any actions taken under section 
1325(5) with respect to originators found to violate 
fair lending procedures; 
‘‘(8) discuss and analyze existing conditions and 
trends, including conditions and trends relating to 
pricing, in the housing markets and mortgage mar-
kets; and 
‘‘(9) identify the extent to which each enter-
prise is involved in mortgage purchases and sec-
ondary market activities involving subprime loans 
(as identified in accordance with the regulations 
issued pursuant to section 134(b) of the Federal 
Housing Finance Reform Act of 2007) and compare 
the characteristics of subprime loans purchased and 
securitized by the enterprises to other loans pur-
chased and securitized by the enterprises. 
‘‘(c) DATA COLLECTION AND REPORTING.—
‘‘(1) IN GENERAL.—To assist the Director in 
analyzing the matters described in subsection (b) 
and establishing the methodology described in sec-
tion 1322, the Director shall conduct, on a monthly 
basis, a survey of mortgage markets in accordance 
with this subsection.
‘‘(2) DATA POINTS.—Each monthly survey con-
ducted by the Director under paragraph (1) shall 
collect data on—
‘‘(A) the characteristics of individual mort-
gages that are eligible for purchase by the en-
terprises and the characteristics of individual 
mortgages that are not eligible for purchase by 
the enterprises including, in both cases, infor-
mation concerning—
‘‘(i) the price of the house that se-
cures the mortgage; 
‘‘(ii) the loan-to-value ratio of the 
mortgage, which shall reflect any sec-
ondary liens on the relevant property; 
‘‘(iii) the terms of the mortgage; 
‘‘(iv) the creditworthiness of the bor-
rower or borrowers; and 
‘‘(v) whether the mortgage, in the 
case of a conforming mortgage, was pur-
chased by an enterprise; and 
‘‘(B) such other matters as the Director 
determines to be appropriate. 
‘‘(3) PUBLIC
AVAILABILITY.—The Director 
shall make any data collected by the Director in con-
nection with the conduct of a monthly survey avail-
100
able to the public in a timely manner, provided that 
the Director may modify the data released to the 
public to ensure that the data is not released in an 
identifiable form. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘identifiable form’ means any rep-
resentation of information that permits the identity 
of a borrower to which the information relates to be 
reasonably inferred by either direct or indirect 
means.’’. 
(b) STANDARDS FOR SUBPRIME LOANS.—The Direc-
tor shall, not later than one year after the effective date 
under section 185, by regulations issued under section 
1316G of the Housing and Community Development Act 
of 1992, establish standards by which mortgages pur-
chased and mortgages purchased and securitized shall be 
characterized as subprime for the purpose of, and only for 
the purpose of, complying with the reporting requirement 
under section 1324(b)(9) of such Act. 
SEC. 135. ANNUAL REPORTS BY REGULATED ENTITIES ON 
AFFORDABLE HOUSING STOCK. 
The Housing and Community Development Act of 
1992 is amended by inserting after section 1328 (12 
U.S.C. 4548) the following new section:
101
‘‘SEC. 1329. ANNUAL REPORTS ON AFFORDABLE HOUSING 
STOCK. 
‘‘(a) IN GENERAL.—To obtain information helpful in 
applying the formula under section 1337(c)(2) for the af-
fordable housing program under such section and for 
other appropriate uses, the regulated entities shall con-
duct, or provide for the conducting of, a study on an an-
nual basis to determine the levels of affordable housing 
inventory, and the changes in such levels, in communities 
throughout the United States. 
‘‘(b) CONTENTS.—The annual study under this sec-
tion shall determine, for the United States, each State, 
and each community within each State—
‘‘(1) the level of affordable housing inventory, 
including affordable rental dwelling units and afford-
able homeownership dwelling units; 
‘‘(2) any changes to the level of such inventory 
during the 12-month period of the study under this 
section, including—
‘‘(A) any additions to such inventory, 
disaggregated by the category of such additions 
(including new construction or housing conver-
sion); 
‘‘(B) any subtractions from such inventory, 
disaggregated by the category of such subtrac-
102
tions (including abandonment, demolition, or 
upgrade to market-rate housing); 
‘‘(C) the number of new affordable dwell-
ing units placed in service; and 
‘‘(D) the number of affordable housing 
dwelling units withdrawn from service; 
‘‘(3) the types of financing used to build any 
dwelling units added to such inventory level and the 
period during which such units are required to re-
main affordable; 
‘‘(4) any excess demand for affordable housing, 
including the number of households on rental hous-
ing waiting lists and the tenure of the wait on such 
lists; and 
‘‘(5) such other information as the Director 
may require. 
‘‘(c) REPORT.—For each annual study conducted 
pursuant to this section, the regulated entities shall sub-
mit to the Congress, and make publicly available, a report 
setting forth the findings of the study. 
‘‘(d) REGULATIONS
AND
TIMING.—The Director 
shall, by regulation, establish requirements for the studies 
and reports under this section, including deadlines for the 
submission of such annual reports and standards for de-
termining affordable housing.’’.
103
SEC. 136. MORTGAGOR IDENTIFICATION REQUIREMENTS 
FOR MORTGAGES OF REGULATED ENTITIES. 
(a) IN GENERAL.—Subpart A of part 2 of subtitle 
A of title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541 et seq.), as amended 
by the preceding provisions of this Act, is further amended 
by adding at the end the following new section: 
‘‘SEC. 1330. MORTGAGOR IDENTIFICATION REQUIREMENTS 
FOR MORTGAGES OF REGULATED ENTITIES. 
‘‘(a) LIMITATION.—The Director shall by regulation 
establish standards, and shall enforce compliance with 
such standards, that—
‘‘(1) prohibit the enterprises from the purchase, 
service, holding, selling, lending on the security of, 
or otherwise dealing with any mortgage on a one- to 
four-family residence that will be used as the prin-
cipal residence of the mortgagor that does not meet 
the requirements under subsection (b); and 
‘‘(2) prohibit the Federal home loan banks from 
providing any advances to a member for use in fi-
nancing, and from accepting as collateral for any ad-
vance to a member, any mortgage on a one- to four-
family residence that will be used as the principal 
residence of the mortgagor that does not meet the 
requirements under subsection (b).
104
‘‘(b) IDENTIFICATION
REQUIREMENTS.—The re-
quirements under this subsection with respect to a mort-
gage are that the mortgagor have, at the time of settle-
ment on the mortgage, a Social Security account num-
ber.’’. 
(b) FANNIE MAE.—Section 304 of the Federal Na-
tional Mortgage Association Charter Act (12 U.S.C. 1719) 
is amended by adding at the end the following new sub-
section: 
‘‘(g) PROHIBITION REGARDING MORTGAGOR IDENTI-
FICATION REQUIREMENT.—Nothing in this Act may be 
construed to authorize the corporation to purchase, serv-
ice, hold, sell, lend on the security of, or otherwise deal 
with any mortgage that the corporation is prohibited from 
so dealing with under the standards issued under section 
1330 of the Housing and Community Development Act 
of 1992 by the Director of the Federal Housing Finance 
Agency.’’. 
(c) FREDDIE MAC.—Section 305 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 
is amended by adding at the end the following new sub-
section: 
‘‘(d) PROHIBITION REGARDING MORTGAGOR IDENTI-
FICATION REQUIREMENTS.—Nothing in this Act may be 
construed to authorize the Corporation to purchase, serv-
105
ice, hold, sell, lend on the security of, or otherwise deal 
with any mortgage that the Corporation is prohibited from 
so dealing with under the standards issued under section 
1330 of the Housing and Community Development Act 
of 1992 by the Director of the Federal Housing Finance 
Agency.’’. 
(d) FEDERAL HOME LOAN BANKS.—Section 10(a) of 
the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) 
is amended—
(1) by redesignating paragraph (6) as para-
graph (7); and 
(2) by inserting after paragraph (5) the fol-
lowing new paragraph: 
‘‘(6) PROHIBITION
REGARDING
MORTGAGOR 
IDENTIFICATION REQUIREMENTS.—Nothing in this 
Act may be construed to authorize a Federal Home 
Loan Bank to provide any advance to a member for 
use in financing, or accept as collateral for an ad-
vance under this section, any mortgage that a Bank 
is prohibited from so accepting under the standards 
issued under section 1330 of the Housing and Com-
munity Development Act of 1992 by the Director of 
the Federal Housing Finance Agency.’’.
106
SEC. 137. REVISION OF HOUSING GOALS. 
(a) HOUSING GOALS.—The Housing and Community 
Development Act of 1992 is amended by striking sections 
1331 through 1334 (12 U.S.C. 4561–4) and inserting the 
following new sections: 
‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish, ef-
fective for the first year that begins after the effective date 
under section 185 of the Federal Housing Finance Reform 
Act of 2007 and each year thereafter, annual housing 
goals, with respect to the mortgage purchases by the en-
terprises, as follows: 
‘‘(1) SINGLE FAMILY HOUSING GOALS.—Three 
single-family housing goals under section 1332. 
‘‘(2) 
MULTIFAMILY
SPECIAL
AFFORDABLE 
HOUSING GOALS.—A multifamily special affordable 
housing goal under section 1333. 
‘‘(b) ELIMINATING INTEREST RATE DISPARITIES.—
‘‘(1) IN GENERAL.—Upon request by the Direc-
tor, an enterprise shall provide to the Director, in a 
form determined by the Director, data the Director 
may review to determine whether there exist dispari-
ties in interest rates charged on mortgages to bor-
rowers who are minorities as compared with com-
parable mortgages to borrowers of similar credit-
worthiness who are not minorities.
107
‘‘(2) REMEDIAL ACTIONS UPON PRELIMINARY 
FINDING.—Upon a preliminary finding by the Direc-
tor that a pattern of disparities in interest rates 
with respect to any lender or lenders exists pursuant 
to the data provided by an enterprise in paragraph 
(1), the Director shall—
‘‘(A) refer the preliminary finding to the 
appropriate regulatory or enforcement agency 
for further review; 
‘‘(B) require the enterprise to submit addi-
tional data with respect to any lender or lend-
ers, as appropriate and to the extent prac-
ticable, to the Director who shall submit any 
such additional data to the regulatory or en-
forcement agency for appropriate action; and 
‘‘(C) require the enterprise to undertake 
remedial actions, as appropriate, pursuant to 
section 1325(5) (12 U.S.C. 4545(5)). 
‘‘(3) ANNUAL REPORT TO CONGRESS.—The Di-
rector shall submit to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate a report describing the actions taken, 
and being taken, by the Director to carry out this 
subsection. No such report shall identify any lender
108
or lenders who have not been found to have engaged 
in discriminatory lending practices pursuant to a 
final adjudication on the record, and after oppor-
tunity for an administrative hearing, in accordance 
with subchapter II of chapter 5 of title 5, United 
States Code. 
‘‘(4) PROTECTION
OF
IDENTITY
OF
INDIVID-
UALS.—In carrying out this subsection, the Director 
shall ensure that no property-related or financial in-
formation that would enable a borrower to be identi-
fied shall be made public. 
‘‘(c) TIMING.—The Director shall establish an annual 
deadline by which the Director shall establish the annual 
housing goals under this subpart for each year, taking into 
consideration the need for the enterprises to reasonably 
and sufficiently plan their operations and activities in ad-
vance, including operations and activities necessary to 
meet such annual goals. 
‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish an-
nual goals for the purchase by each enterprise of conven-
tional, conforming, single-family, purchase money mort-
gages financing owner-occupied and rental housing for 
each of the following categories of families: 
‘‘(1) Low-income families.
109
‘‘(2) Families that reside in low-income areas. 
‘‘(3) Very low-income families. 
‘‘(b) REFINANCE SUBGOAL.—
‘‘(1) IN GENERAL.—The Director shall establish 
a separate subgoal within each goal under subsection 
(a)(1) for the purchase by each enterprise of mort-
gages for low-income families on single family hous-
ing given to pay off or prepay an existing loan se-
cured by the same property. The Director shall, for 
each year, determine whether each enterprise has 
complied with the subgoal under this subsection in 
the same manner provided under this section for de-
termining compliance with the housing goals. 
‘‘(2) ENFORCEMENT.—For purposes of section 
1336, the subgoal established under paragraph (1) 
of this subsection shall be considered to be a housing 
goal established under this section. Such subgoal 
shall not be enforceable under any other provision of 
this title (including subpart C of this part) other 
than section 1336 or under any provision of the 
Federal National Mortgage Association Charter Act 
or the Federal Home Loan Mortgage Corporation 
Act. 
‘‘(c) DETERMINATION OF COMPLIANCE.—The Direc-
tor shall determine, for each year that the housing goals
110
under this section are in effect pursuant to section 
1331(a), whether each enterprise has complied with the 
single-family housing goals established under this section 
for such year. An enterprise shall be considered to be in 
compliance with such a goal for a year only if, for each 
of the types of families described in subsection (a), the 
percentage of the number of conventional, conforming, 
single-family, owner-occupied or rental, as applicable, pur-
chase money mortgages purchased by each enterprise in 
such year that serve such families, meets or exceeds the 
target for the year for such type of family that is estab-
lished under subsection (d). 
‘‘(d) ANNUAL TARGETS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for each of the types of families described 
in subsection (a), the target under this subsection 
for a year shall be the average percentage, for the 
three years that most recently precede such year and 
for which information under the Home Mortgage 
Disclosure Act of 1975 is publicly available, of the 
number of conventional, conforming, single-family, 
owner-occupied or rental, as applicable, purchase 
money mortgages originated in such year that serves 
such type of family, as determined by the Director
111
using the information obtained and determined pur-
suant to paragraphs (3) and (4). 
‘‘(2) AUTHORITY TO INCREASE TARGETS.—
‘‘(A) IN GENERAL.—The Director may, for 
any year, establish by regulation, for any or all 
of the types of families described in subsection 
(a), percentage targets that are higher than the 
percentages for such year determined pursuant 
to paragraph (1), to reflect expected changes in 
market performance related to such information 
under the Home Mortgage Disclosure Act of 
1975. 
‘‘(B) FACTORS.—In establishing any tar-
gets pursuant to subparagraph (A), the Direc-
tor shall consider the following factors: 
‘‘(i) National housing needs. 
‘‘(ii) Economic, housing, and demo-
graphic conditions. 
‘‘(iii) The performance and effort of 
the enterprises toward achieving the hous-
ing goals under this section in previous 
years. 
‘‘(iv) The size of the conventional 
mortgage market serving each of the types 
of families described in subsection (a) rel-
112
ative to the size of the overall conventional 
mortgage market. 
‘‘(v) The ability of the enterprise to 
lead the industry in making mortgage 
credit available. 
‘‘(vi) The need to maintain the sound 
financial condition of the enterprises. 
‘‘(3) 
HMDA 
INFORMATION.—The 
Director 
shall annually obtain information submitted in com-
pliance with the Home Mortgage Disclosure Act of 
1975 regarding conventional, conforming, single-
family, owner-occupied or rental, as applicable, pur-
chase money mortgages originated and purchased 
for the previous year. 
‘‘(4) CONFORMING
MORTGAGES.—In deter-
mining whether a mortgage is a conforming mort-
gage for purposes of this paragraph, the Director 
shall consider the original principal balance of the 
mortgage loan to be the principal balance as re-
ported in the information referred to in paragraph 
(3), as rounded to the nearest thousand dollars. 
‘‘(e) NOTICE OF DETERMINATION AND ENTERPRISE 
COMMENT.—
‘‘(1) NOTICE.—Within 30 days of making a de-
termination under subsection (c) regarding a compli-
113
ance of an enterprise for a year with a housing goal 
established under this section and before any public 
disclosure thereof, the Director shall provide notice 
of the determination to the enterprise, which shall 
include an analysis and comparison, by the Director, 
of the performance of the enterprise for the year and 
the targets for the year under subsection (d). 
‘‘(2) COMMENT
PERIOD.—The Director shall 
provide each enterprise an opportunity to comment 
on the determination during the 30-day period be-
ginning upon receipt by the enterprise of the notice. 
‘‘(f) USE OF BORROWER INCOME.—In monitoring 
the performance of each enterprise pursuant to the hous-
ing goals under this section and evaluating such perform-
ance (for purposes of section 1336), the Director shall 
consider a mortgagor’s income to be such income at the 
time of origination of the mortgage. 
‘‘(g) CONSIDERATION OF UNITS IN SINGLE-FAMILY 
RENTAL HOUSING.—In establishing any goal under this 
subpart, the Director may take into consideration the 
number of housing units financed by any mortgage on sin-
gle-family rental housing purchased by an enterprise. 
‘‘SEC. 1333. MULTIFAMILY SPECIAL AFFORDABLE HOUSING 
GOAL. 
‘‘(a) ESTABLISHMENT.—
114
‘‘(1) IN GENERAL.—The Director shall estab-
lish, by regulation, an annual goal for the purchase 
by each enterprise of each of the following types of 
mortgages on multifamily housing: 
‘‘(A) Mortgages that finance dwelling units 
for low-income families. 
‘‘(B) Mortgages that finance dwelling units 
for very low-income families. 
‘‘(C) Mortgages that finance dwelling units 
assisted by the low-income housing tax credit 
under section 42 of the Internal Revenue Code 
of 1986. 
‘‘(2) ADDITIONAL REQUIREMENTS FOR SMALL-
ER PROJECTS.—The Director shall establish, within 
the goal under this section, additional requirements 
for the purchase by each enterprise of mortgages de-
scribed in paragraph (1) for multifamily housing 
projects of a smaller or limited size, which may be 
based on the number of dwelling units in the project 
or the amount of the mortgage, or both, and shall 
include multifamily housing projects of such smaller 
sizes as are typical among such projects that serve 
rural areas. 
‘‘(3) FACTORS.—In establishing the goal under 
this section relating to mortgages on multifamily
115
housing for an enterprise for a year, the Director 
shall consider—
‘‘(A) national multifamily mortgage credit 
needs; 
‘‘(B) the performance and effort of the en-
terprise in making mortgage credit available for 
multifamily housing in previous years; 
‘‘(C) the size of the multifamily mortgage 
market; 
‘‘(D) the ability of the enterprise to lead 
the industry in making mortgage credit avail-
able, especially for underserved markets, such 
as for small multifamily projects of 5 to 50 
units, multifamily properties in need of rehabili-
tation, and multifamily properties located in 
rural areas; and 
‘‘(E) the need to maintain the sound finan-
cial condition of the enterprise. 
‘‘(b) UNITS FINANCED BY HOUSING FINANCE AGEN-
CY BONDS.—The Director shall give credit toward the 
achievement of the multifamily special affordable housing 
goal under this section (for purposes of section 1336) to 
dwelling units in multifamily housing that otherwise quali-
fies under such goal and that is financed by tax-exempt
116
or taxable bonds issued by a State or local housing finance 
agency, but only if such bonds—
‘‘(1) are secured by a guarantee of the enter-
prise; or 
‘‘(2) are not investment grade and are pur-
chased by the enterprise. 
‘‘(c) USE OF TENANT INCOME OR RENT.—The Di-
rector shall monitor the performance of each enterprise 
in meeting the goals established under this section and 
shall evaluate such performance (for purposes of section 
1336) based on—
‘‘(1) the income of the prospective or actual 
tenants of the property, where such data are avail-
able; or 
‘‘(2) where the data referred to in paragraph 
(1) are not available, rent levels affordable to low-
income and very low-income families. 
A rent level shall be considered to be affordable for pur-
poses of this subsection for an income category referred 
to in this subsection if it does not exceed 30 percent of 
the maximum income level of such income category, with 
appropriate adjustments for unit size as measured by the 
number of bedrooms. 
‘‘(d) DETERMINATION OF COMPLIANCE.—The Direc-
tor shall, for each year that the housing goal under this