behalf of a Federal reserve bank, other than 
mortgages or securities held, owned, or con-
trolled in connection with open market oper-
ations under section 14 of the Federal Reserve 
Act (12 U.S.C. 353), or as collateral for an ad-
vance or discount that is not in default; 
‘‘(2) the term ‘consumer’ has the same meaning 
as in section 103 of the Truth in Lending Act (15 
U.S.C. 1602); 
‘‘(3) the term ‘insured depository institution’ 
has the same meaning as in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813); and 
‘‘(4) the term ‘servicer’ has the same meaning 
as in section 6(i)(2) of the Real Estate Settlement 
Procedures Act of 1974 (12 U.S.C. 2605(i)(2)). 
‘‘(b) HOMEOWNER ASSISTANCE BY AGENCIES.— 
‘‘(1) IN GENERAL.—To the extent that the Fed-
eral property manager holds, owns, or controls mort-
gages, mortgage backed securities, and other assets 
secured by residential real estate, including multi-
family housing, the Federal property manager shall 
implement a systematic plan that seeks to maximize 
assistance for homeowners and minimize fore-
closures, to use its authority to modify mortgage 
loans held by the Federal property manager, and to 
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provide incentives to the servicers of other mortgage 
loans to take advantage of the HOPE for Home-
owners Program under section 257 of the National 
Housing Act, the authorities provided under this 
subtitle, and other available programs to minimize 
foreclosures. 
‘‘(2) MODIFICATIONS.—In the case of a resi-
dential mortgage loan, modifications made under 
paragraph (1) may include— 
‘‘(A) reduction in interest rates; 
‘‘(B) reduction of loan principal; and 
‘‘(C) other similar modifications. 
‘‘(3) TENANT
PROTECTIONS.—In the case of 
mortgages on residential rental properties, modifica-
tions made under paragraph (1) shall ensure— 
‘‘(A) the continuation of any existing Fed-
eral, State, and local rental subsidies and pro-
tections; and 
‘‘(B) that modifications take into account 
the need for operating funds to maintain decent 
and safe conditions at the property. 
‘‘(4) TIMING.—Each Federal property manager 
shall develop and begin implementation of the plan 
required by this subsection not later than 60 days 
after the date of enactment of this subtitle. 
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‘‘(5) REPORTS
TO
CONGRESS.—Each Federal 
property manager shall, 60 days after the date of 
enactment of this subtitle and every 30 days there-
after, report to Congress specific information on the 
number and types of loan modifications made and 
the number of actual foreclosures occurring during 
the reporting period in accordance with this section. 
‘‘(6) CONSULTATION.—In developing the plan 
required by this subsection, the Federal property 
managers shall consult with one another and, to the 
extent possible, utilize consistent approaches to the 
requirements of this subsection. 
‘‘(c) ACTIONS WITH RESPECT TO SERVICERS.—In 
any case in which a Federal property manager is not the 
owner of a residential mortgage loan, but holds an interest 
in obligations or pools of obligations secured by residential 
mortgage loans, the Federal property manager shall— 
‘‘(1) encourage implementation by the loan 
servicers of loan modifications developed under sub-
section (b); 
‘‘(2) assist in facilitating any such modifica-
tions, to the extent possible; and 
‘‘(3) encourage loan servicers to make fore-
closed properties available for sale to State and local 
governments at a discount. 
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‘‘(d) AVAILABILITY OF FORECLOSED PROPERTIES TO 
STATE AND LOCALITIES.— 
‘‘(1) IN
GENERAL.—Each Federal property 
manager shall make available to any State or local 
government that is receiving emergency assistance 
under section 2301 of the Foreclosure Prevention 
Act of 2008 (Division B of Public Law 110–289) for 
purchase, at a discount, residential properties that it 
owns through foreclosure in that State or locality, in 
order to facilitate the sale of such properties and to 
stabilize neighborhoods affected by foreclosures. 
‘‘(2) INFORMATION CLEARINGHOUSE.— 
‘‘(A) PROVISION OF INFORMATION TO THE 
SECRETARY.—Each Federal property manager 
shall make available to the Secretary of Hous-
ing and Urban Development information on 
properties available for purchase under this 
subsection. 
‘‘(B) CLEARINGHOUSE.—The Secretary of 
Housing and Urban Development and the Fed-
eral property managers shall develop a clearing-
house for the information compiled under this 
paragraph, and make such clearinghouse easily 
accessible by States and local governments de-
scribed in paragraph (1). 
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‘‘(e) LIMITATION.—The requirements of this section 
shall be in addition to any other duty or requirement im-
posed on the Federal property managers under otherwise 
applicable law. 
‘‘SEC. 161. MINIMIZATION OF LONG-TERM COSTS AND MAXI-
MIZATION OF BENEFITS FOR TAXPAYERS. 
‘‘(a) LONG-TERM COSTS AND BENEFITS.— 
‘‘(1) MINIMIZING NEGATIVE IMPACT.—The Sec-
retary shall use the authority under this subtitle in 
a manner that will minimize any potential long-term 
negative impact on the taxpayer, taking into account 
the direct outlays, potential long-term returns on as-
sets purchased, and the overall economic benefits of 
the program, including economic benefits due to re-
duced foreclosures and defaults, reduced bank-
ruptcies, neighborhood impacts, improvements in 
economic activity and the availability of credit, the 
impact on the savings and pensions of individuals, 
reductions in losses to the Federal Government, and 
other factors. 
‘‘(2) AUTHORITY.—In carrying out paragraph 
(1), the Secretary shall— 
‘‘(A) hold the assets to maturity or for re-
sale for and until such time as the Secretary 
determines that the market is appropriate for 
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selling such assets, in order to maximize the 
value for taxpayers; 
‘‘(B) issue loan guarantees or credit en-
hancements on loans to be sold, where appro-
priate; and 
‘‘(C) sell such assets at a price that the 
Secretary determines, based on available finan-
cial analysis, will maximize return on invest-
ment for the Federal Government. 
‘‘(3) PRIVATE
SECTOR
PARTICIPATION.—The 
Secretary shall encourage the private sector to par-
ticipate in purchases of home mortgage loans con-
sistent with the provisions of this subtitle. 
‘‘(b) USE OF MARKET MECHANISMS.—In making 
purchases under this subtitle, the Secretary shall— 
‘‘(1) make such purchases at the lowest price 
that the Secretary determines to be consistent with 
the purposes of this subtitle; 
‘‘(2) maximize the efficiency of the use of tax-
payer resources by using market mechanisms, in-
cluding auctions or reverse auctions, where appro-
priate; and 
‘‘(3) encourage private sector participation in 
purchases of home mortgage loans through auctions, 
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reverse auctions and direct purchases as authorized 
by this subtitle. 
‘‘(c) DIRECT PURCHASES.—If the Secretary deter-
mines that use of a market mechanism under subsection 
(b) is not feasible or appropriate, and the purposes of the 
subtitle are best met through direct purchases by the Sec-
retary from an individual financial institution, the Sec-
retary shall pursue additional measures to ensure that 
prices paid for assets are reasonable and reflect the under-
lying value of the asset. 
‘‘(d) PURCHASE AUTHORITY FOR WARRANTS AND 
DEBT INSTRUMENTS.— 
‘‘(1) IN GENERAL.—In exchange for asset pur-
chases, guarantees or capital infusions, the Sec-
retary may receive from any financial institution— 
‘‘(A) in the case of a financial institution 
that is registered (or approved for registration) 
and traded on a national securities exchange or 
a national securities association registered pur-
suant to section 15A of the Securities Exchange 
Act of 1934 (15 U.S.C. 78o–3), a warrant giv-
ing the right to the Secretary to receive non-
voting common stock or preferred stock in such 
financial institution, as the Secretary deter-
mines appropriate; or 
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‘‘(B) in the case of any financial institu-
tion other than one described in subparagraph 
(A), a senior debt instrument from such finan-
cial institution, as described in paragraph 
(2)(C). 
‘‘(2) TERMS AND CONDITIONS.—The terms and 
conditions of any warrant or senior debt instrument 
acquired under paragraph (1) shall meet the fol-
lowing requirements: 
‘‘(A) PURPOSES.—Such terms and condi-
tions shall, at a minimum, be designed— 
‘‘(i) to provide for reasonable partici-
pation by the Secretary, for the benefit of 
taxpayers, in equity appreciation in the 
case of a warrant, or a reasonable interest 
rate premium, in the case of a debt instru-
ment; and 
‘‘(ii) to provide additional protection 
for the taxpayer and stability to the finan-
cial system. 
‘‘(B) AUTHORITY
TO
SELL, EXERCISE, 
SURRENDER.—The Secretary may sell, exercise, 
or surrender a warrant or any senior debt in-
strument received under this subsection, based 
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on the conditions established under subpara-
graph (A). 
‘‘(C) CONVERSION.—The warrant shall 
provide that if, after the warrant is received by 
the Secretary under this subsection, the finan-
cial institution that issued the warrant is no 
longer listed or traded on a national securities 
exchange or securities association, as described 
in paragraph (1)(A), such warrants shall con-
vert to senior debt, in an amount determined by 
the Secretary and subject to such other condi-
tions as are determined by the Secretary. 
‘‘(D) PROTECTIONS.—Any warrant rep-
resenting securities to be received by the Sec-
retary under this subsection shall contain 
antidilution provisions of the type employed in 
capital market transactions, as determined by 
the Secretary. Such provisions shall protect the 
value of the securities from market transactions 
such as stock splits, stock distributions, divi-
dends, and other distributions, mergers, and 
other forms of reorganization or recapitaliza-
tion. 
‘‘(E) EXERCISE PRICE.—The exercise price 
for any warrant issued pursuant to this sub-
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section shall be set by the Secretary, in the in-
terest of the taxpayers. 
‘‘(F) SUFFICIENCY.—The financial institu-
tion shall guarantee to the Secretary that it has 
authorized shares of nonvoting stock available 
to fulfill its obligations under this subsection. 
Should the financial institution not have suffi-
cient authorized shares, including preferred 
shares that may carry dividend rights equal to 
a multiple number of common shares, the Sec-
retary may, to the extent necessary, accept a 
senior debt note in an amount, and on such 
terms, as will compensate the Secretary equiva-
lently, in the event that a sufficient shareholder 
vote to authorize the necessary additional 
shares cannot be obtained. 
‘‘SEC. 162. MARKET TRANSPARENCY. 
‘‘(a) PRICING.—To facilitate market transparency, 
the Secretary shall make available to the public, in elec-
tronic form, a description, the amounts, and the pricing 
of assets acquired under this subtitle, within 2 business 
days of purchase, trade, or other disposition. 
‘‘(b) DISCLOSURE.—For each type of financial insti-
tutions that sells home mortgages to the Secretary under 
this subtitle, the Secretary shall determine whether the 
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