occupied by the mortgagor as the mortgagor’s 
principal residence, but not including a mort-
gage under which any portion of the mortgage 
proceeds are used for any purpose other than to 
prepay or pay off such existing mortgage or for 
any settlement costs in connection with such 
mortgage, as determined in accordance with 
guidelines issued by the Director.’’. 
(b) FREDDIE MAC.—Section 305(a) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(6) The Corporation may only purchase, make com-
mitments to purchase, service, sell, lend on the security 
of, or otherwise deal in a mortgage on a property com-
prising 1- to 4-family dwelling units that— 
‘‘(A) bears interest at a rate that is fixed for 
the entire term of the mortgage; and 
‘‘(B) is made— 
‘‘(i) to finance the purchase of such prop-
erty that shall be occupied by the mortgagor as 
the mortgagor’s principal residence; or 
‘‘(ii) to prepay or pay off the outstanding 
principal obligation under an existing mortgage 
or loan secured by the same property, which is 
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occupied by the mortgagor as the mortgagor’s 
principal residence, but not including a mort-
gage under which any portion of the mortgage 
proceeds are used for any purpose other than to 
prepay or pay off such existing mortgage or for 
any settlement costs in connection with such 
mortgage, as determined in accordance with 
guidelines issued by the Director.’’. 
SEC. 105. REPEAL OF BANKING AGENCIES’ AUTHORITY RE-
LATING FREDDIE MAC TRANSACTIONS. 
Section 305 of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454) is amended by striking 
subsection (b). 
PART 2—MAKING SPACE FOR PRIVATE 
SECONDARY MARKETS 
SEC. 111. REDUCTION OF ENTERPRISE CONFORMING LOAN 
LIMITS. 
(a) FANNIE MAE.—Paragraph (2) of section 302(b) 
of the Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)) is amended by striking the 7th 
through 11th sentences and inserting the following: ‘‘Such 
limitations shall not exceed $417,000 for a mortgage se-
cured by a single-family residence, $533,850 for a mort-
gage secured by a 2-family residence, $645,300 for a 
mortgage secured by a 3-family residence, and $801,950 
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for a mortgage secured by a 4-family residence, except 
that such maximum limitations shall be adjusted effective 
January 1 of each year beginning after the effective date 
of the New Fair Deal Banking and Housing Stability Act 
of 2013, subject to the limitations in this paragraph. Each 
adjustment shall be made by subtracting from such 
amount (as it may have been previously adjusted) an 
amount equal to 20 percent thereof.’’. 
(b) FREDDIE MAC.—Paragraph (2) of section 305(a) 
of the Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) is amended by striking the 6th 
through 10th sentences and inserting the following: ‘‘Such 
limitations shall not exceed $417,000 for a mortgage se-
cured by a single-family residence, $533,850 for a mort-
gage secured 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 limitations shall be adjusted effective 
January 1 of each year beginning after the effective date 
of the New Fair Deal Banking and Housing Stability Act 
of 2013, subject to the limitations in this paragraph. Each 
adjustment shall be made by subtracting from such 
amount (as it may have been previously adjusted) an 
amount equal to 20 percent thereof.’’. 
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SEC. 112. LOAN-TO-VALUE LIMITATION ON ENTERPRISE 
MORTGAGE PURCHASES. 
(a) FANNIE MAE.—Section 302(b) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 
1717(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(7) Notwithstanding any other provision of law, the 
corporation may not purchase, or make commitments to 
purchase, any mortgage on a 1- to 4-family residence if 
the outstanding principal balance of the mortgage at the 
time of purchase exceeds 95.0 percent of the value of the 
property securing the mortgage, except that such percent-
age shall be adjusted effective January 1 of each year be-
ginning after the effective date of the New Fair Deal 
Banking and Housing Stability Act of 2013, by reducing 
such percentage by 1.5 percentage points.’’. 
(b) FREDDIE MAC.—Section 3052(a) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(6) Notwithstanding any other provision of law, the 
Corporation may not purchase, or make commitments to 
purchase, any mortgage on a 1- to 4-family residence if 
the outstanding principal balance of the mortgage at the 
time of purchase exceeds 95.0 percent of the value of the 
property securing the mortgage, except that such percent-
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age shall be adjusted effective January 1 of each year be-
ginning after the effective date of the New Fair Deal 
Banking and Housing Stability Act of 2013, by reducing 
such percentage by 1.5 percentage points.’’. 
SEC. 113. INCREASED CAPITAL STANDARDS FOR ENTER-
PRISES. 
(a) TERMINATION OF RISK-BASED STANDARD.— 
(1) IN GENERAL.—Section 1361 of the Federal 
Housing Enterprises Financial Safety and Sound-
ness Act of 1992 (12 U.S.C. 4611) is amended— 
(A) in the section heading, by striking 
‘‘RISK-BASED’’; and 
(B) in subsection (a)(1), by striking ‘‘risk- 
based’’ and inserting ‘‘non-risk-based’’. 
(2) CONFORMING AMENDMENTS.—Subtitle B of 
the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 is amended by striking 
‘‘risk-based’’ each place such term appears in the 
following sections and inserting ‘‘required’’: 
(A) Section 1364(a) (12 U.S.C. 4614(a)). 
(B) Section 1366(a)(2)(B) (12 U.S.C. 
4616(a)(2)(B)). 
(C) Section 1369C(a) (12 U.S.C. 4622(a)). 
(b) INCREASE IN MINIMUM CAPITAL LEVELS.—Sec-
tion 1362(a) of the Federal Housing Enterprises Finan-
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cial Safety and Soundness Act of 1992 (12 U.S.C. 
4612(a)) is amended— 
(1) in paragraph (1), by inserting before the 
semicolon at the end the following: ‘‘; except that 
such percentage shall be adjusted effective January 
1 of each year beginning after the effective date of 
the New Fair Deal Banking and Housing Stability 
Act of 2013, by increasing such percentage (as it 
may have been previously adjusted) by 0.7 percent-
age points’’; 
(2) in paragraph (2), by inserting before ‘‘; 
and’’ the following: ‘‘; except that such percentage 
shall be adjusted effective January 1 of each year 
beginning after the effective date of the New Fair 
Deal Banking and Housing Stability Act of 2013, by 
increasing such percentage (as it may have been pre-
viously adjusted) by 0.15 percentage points’’; and 
(3) in paragraph (3), by inserting before the pe-
riod at the end the following: ‘‘; and except that 
such percentage shall be adjusted effective January 
1 of each year beginning after the effective date of 
the New Fair Deal Banking and Housing Stability 
Act of 2013, by increasing such percentage (as it 
may have been previously adjusted) by 0.15 percent-
age points’’. 
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(c) INCREASE IN CRITICAL CAPITAL LEVELS.—Sec-
tion 1363(a) of the Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 (12 U.S.C. 
4613(a)) is amended— 
(1) in paragraph (1), by inserting before the 
semicolon at the end the following: ‘‘; except that 
such percentage shall be adjusted effective January 
1 of each year beginning after the effective date of 
the New Fair Deal Banking and Housing Stability 
Act of 2013, by increasing such percentage (as it 
may have been previously adjusted) by 0.7 percent-
age points’’; 
(2) in paragraph (2), by inserting before ‘‘; 
and’’ the following: ‘‘; except that such percentage 
shall be adjusted effective January 1 of each year 
beginning after the effective date of the New Fair 
Deal Banking and Housing Stability Act of 2013, by 
increasing such percentage (as it may have been pre-
viously adjusted) by 0.15 percentage points’’; and 
(3) in paragraph (3), by inserting before the pe-
riod at the end the following: ‘‘; and except that 
such percentage shall be adjusted effective January 
1 of each year beginning after the effective date of 
the New Fair Deal Banking and Housing Stability 
Act of 2013, by increasing such percentage (as it 
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may have been previously adjusted) by 0.15 percent-
age points’’. 
SEC. 114. ENTERPRISE PORTFOLIO LIMITATIONS. 
The Housing and Community Development Act of 
1992 (12 U.S.C. 4611 et seq.) is amended by striking sec-
tion 1369E (12 U.S.C. 4624) and inserting the following 
new section: 
‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN-
TERPRISES. 
‘‘(a) RESTRICTION.—No enterprise shall own, as of 
any applicable date in this subsection or thereafter, mort-
gage assets in excess of— 
‘‘(1) 
as 
of 
December 
31, 
2013, 
$550,000,000,000; or 
‘‘(2) as of December 31 of each year thereafter, 
80 percent of the aggregate amount of mortgage as-
sets that the enterprise was permitted to own pursu-
ant to this section as of December 31 of the imme-
diately preceding calendar year. 
‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur-
poses of this section, the term ‘mortgage assets’ means, 
with respect to an enterprise, assets of such enterprise 
consisting of mortgages, mortgage loans, mortgage-related 
securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage in-
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vestment conduits and similar assets, in each case to the 
extent such assets would appear on the balance sheet of 
such enterprise in accordance with generally accepted ac-
counting principles in effect in the United States as of 
September 7, 2008 (as set forth in the opinions and pro-
nouncements of the Accounting Principles Board and the 
American Institute of Certified Public Accountants and 
statements and pronouncements of the Financial Account-
ing Standards Board from time to time; and without giv-
ing any effect to any change that may be made after Sep-
tember 7, 2008, in respect of Statement of Financial Ac-
counting Standards No. 140 or any similar accounting 
standard).’’. 
PART 3—ABOLITION OF FANNIE MAE AND 
FREDDIE MAC 
SEC. 121. ABOLISHMENT OF ENTERPRISES. 
(a) REPEAL OF CHARTERS.— 
(1) FANNIE MAE.—Effective upon the expira-
tion of the 5-year period beginning on the date of 
the enactment of this Act, the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1716 
et seq.) is repealed and the Federal National Mort-
gage Association shall have no authority to conduct 
new business under such charter, except that the 
provisions of such charter in effect immediately be-
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fore such repeal shall continue to apply with respect 
to the rights and obligations of any holders of— 
(A) outstanding debt obligations of the 
Federal National Mortgage Association, includ-
ing any— 
(i) bonds, debentures, notes, or other 
similar instruments; 
(ii) capital lease obligations; or 
(iii) obligations in respect of letters of 
credit, bankers’ acceptances, or other simi-
lar instruments; or 
(B) mortgage-backed securities guaranteed 
by the Federal National Mortgage Association. 
(2) FREDDIE MAC.—Effective upon the expira-
tion of the 5-year period beginning on the date of 
the enactment of this Act, the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1451 et seq.) 
is repealed and the Federal Home Loan Mortgage 
Corporation shall have no authority to conduct new 
business under such charter, except that the provi-
sions of such charter in effect immediately before 
such repeal shall continue to apply with respect to 
the rights and obligations of any holders of— 
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(A) outstanding debt obligations of the 
Federal Home Loan Mortgage Corporation, in-
cluding any— 
(i) bonds, debentures, notes, or other 
similar instruments; 
(ii) capital lease obligations; or 
(iii) obligations in respect of letters of 
credit, bankers’ acceptances, or other simi-
lar instruments; or 
(B) mortgage-backed securities guaranteed 
by the Federal Home Loan Mortgage Corpora-
tion. 
(3) EXISTING GUARANTEE OBLIGATIONS.— 
(A) EXPLICIT GUARANTEE.—The full faith 
and credit of the United States is pledged to 
the payment of all amounts which may be re-
quired to be paid under any obligation de-
scribed under paragraphs (1) and (2). 
(B) APPLICABILITY.—Except for amounts 
determined necessary for use for winding up the 
affairs of the enterprises pursuant to subsection 
(b), all guarantee fee amounts derived from the 
mortgage guarantee business of the enterprises 
in existence as of the expiration of the 5-year 
period beginning on the date of the enactment 
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of this Act shall be deposited into the Treasury 
of the United States, for purposes of deficit re-
duction. 
(b) WIND-DOWN OF ENTERPRISES.— 
(1) TERMINATION OF CURRENT CONSERVATOR-
SHIP.—Upon the expiration of the 5-year period be-
ginning on the date of the enactment of this Act, the 
Director of the Federal Housing Finance Agency 
shall, with respect to each enterprise, appoint the 
Federal Housing Finance Agency as receiver under 
section 1367 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 and carry 
out such receivership under the authority of such 
section and in accordance with this Act and any 
amendments made by this Act. 
(2) WIND
DOWN.—During the 5-year period 
that begins upon the date of the enactment of this 
Act, the Director of the Federal Housing Finance 
Agency, in consultation with the Secretary of the 
Treasury, shall take such action, and may prescribe 
such regulations and procedures, as may be nec-
essary and consistent with the receiverships pursu-
ant to paragraph (1) to wind down the operations of 
the enterprises in an orderly manner that complies 
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with the requirements of this Act and any amend-
ments made by this Act. 
(3) DIVISION OF ASSETS AND LIABILITIES; AU-
THORITY
TO
ESTABLISH
HOLDING
CORPORATION 
AND DISSOLUTION TRUST FUND.—The action and 
procedures required under paragraph (2)— 
(A) shall include the establishment and 
execution of plans to provide for an equitable 
division, distribution, and liquidation of the as-
sets and liabilities of each enterprise, including 
any infrastructure, property, including intellec-
tual property, platforms, or any other thing or 
object of value, provided that such plans shall— 
(i) provide for the sale, at auction, of 
the servicing rights to mortgages guaran-
teed by an enterprise under terms that en-
sure that a purchaser of such servicing 
rights shall assume a first loss position in 
the event of a default under such a mort-
gage in an amount equal to 20 percent of 
the aggregate amount of such loss and the 
Federal Government shall be liable to the 
purchaser for the remainder of such loss; 
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(ii) provide for the sale, at auction, of 
any other assets of an enterprise having 
value; and 
(iii) comply with the requirements of 
this Act and any amendments made by 
this Act; 
(B) may provide for establishment of a 
holding corporation organized under the laws of 
any State of the United States or the District 
of Columbia for the purpose of winding down 
an enterprise; and 
(C) shall provide for establishment of one 
or more trusts to which to transfer— 
(i) outstanding debt obligations of an 
enterprise; or 
(ii) outstanding mortgages held for 
the purpose of collateralizing mortgage- 
backed securities guaranteed by an enter-
prise. 
(c) CONFORMING AMENDMENTS TO FEDERAL HOME 
LOAN BANK ACT.—Effective upon the expiration of the 
5-year period that begins on the date of the enactment 
of this Act, the Federal Home Loan Bank Act is amend-
ed— 
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(1) 
in 
section 
10(a)(3)(B) 
(12 
U.S.C. 
1430(a)(3)(B)), by striking ‘‘(including without limi-
tation, mortgage-backed securities issued or guaran-
teed by the Federal Home Loan Mortgage Corpora-
tion, the Federal National Mortgage Corporation, 
and the Government National Mortgage Associa-
tion)’’; and 
(2) in section 16(a) (12 U.S.C. 1436(a)), by 
striking ‘‘, in obligations, participations, or other in-
struments’’ and all that follows through ‘‘section 
306 of the Federal Home Loan Mortgage Corpora-
tion Act,’’. 
Subtitle B—Termination of Insur-
ance for Banks’ Mortgage Lend-
ing 
PART 1—IMMEDIATE REFORMS OF FHA CREDIT 
PROGRAMS 
SEC. 131. FHA LENDER REPURCHASE REQUIREMENT. 
Title II of the National Housing Act (12 U.S.C. 1707 
et seq.) is amended by adding at the end the following 
new section: 
‘‘SEC. 259. LENDER REPURCHASE REQUIREMENT. 
‘‘The Secretary may not newly insure any mortgage 
on a 1- to 4-family residential property unless the mort-
gagee under such mortgage enters into such binding 
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agreements as the Secretary considers necessary to ensure 
that, if the mortgagor is in default with respect to the 
mortgagor’s obligation to make payments under the mort-
gage for 30 or more consecutive days during the 6-month 
period beginning upon origination of the mortgage, the 
mortgagee will, upon notice by the Secretary, repurchase 
such mortgage in an amount equal to the remaining prin-
cipal obligation under the mortgage, as determined in ac-
cordance with guidelines issued by the Secretary.’’. 
SEC. 132. PROHIBITION OF FHA MORTGAGE INSURANCE 
FOR CASH-OUT REFINANCINGS. 
Title II of the National Housing Act (12 U.S.C. 1707 
et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new section: 
‘‘SEC. 260. PROHIBITION OF CASH-OUT REFINANCINGS. 
‘‘The Secretary may not newly insure any mortgage 
on a 1- to 4-family residential property under which— 
‘‘(1) a portion of the mortgage proceeds are 
used to prepay or pay off the outstanding principal 
obligation under an existing mortgage or loan se-
cured by the same residential property; and 
‘‘(2) any portion of the mortgage proceeds are 
used for any purpose other than to prepay or pay off 
such existing mortgage and for any settlement costs 
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in connection with such mortgage, as determined in 
accordance with guidelines issued by the Secretary.’’. 
SEC. 133. FHA LIMITATION ON SELLER CONCESSIONS. 
Title II of the National Housing Act (12 U.S.C. 1707 
et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new section: 
‘‘SEC. 261. LIMITATION ON SELLER CONCESSIONS. 
‘‘The Secretary may not newly insure any mortgage 
on a 1- to 4-family residential property with respect to 
which the seller of the property subject to such mortgage 
(or any third party or entity that is reimbursed directly 
or indirectly by the seller) contributes toward the acquisi-
tion of the property by the mortgagor any amount in ex-
cess of 3 percent of the total closing costs (as determined 
by the Secretary) in connection with such acquisition.’’. 
PART 2—REDUCING TAXPAYER GUARANTEES OF 
MORTGAGES 
SEC. 141. REDUCTION OF FHA MORTGAGE INSURANCE COV-
ERAGE. 
Title II of the National Housing Act (12 U.S.C. 1707 
et seq.), as amended by the preceding provisions of this 
Act, is further amended by adding at the end the following 
new section: 
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‘‘SEC. 262. REDUCTION OF MORTGAGE INSURANCE COV-
ERAGE. 
‘‘Notwithstanding any other provision of this title, 
the Secretary may not insure, or make any commitment 
to insure, any portion of any mortgage on a 1- to 4-family 
residential property in excess of the amount equal to the 
following percentage of the original principal obligation of 
the mortgage: 
‘‘(1) In the case of any such mortgage insured 
after the date of the enactment of the New Fair 
Deal Banking and Housing Stability Act of 2013, 
80 percent of such original principal obligation, sub-
ject to paragraphs (2) through (5). 
‘‘(2) In the case of any such mortgage insured 
after the expiration of the 1-year period beginning 
on the date of the enactment of such Act, 70 percent 
of such original principal obligation, subject to para-
graphs (3) through (5). 
‘‘(3) In the case of any such mortgage insured 
after the expiration of the 2-year period beginning 
on the date of the enactment of such Act, 60 percent 
of such original principal obligation, subject to para-
graphs (4) through (5). 
‘‘(4) In the case of any such mortgage insured 
after the expiration of the 3-year period beginning 
on the date of the enactment of such Act, 50 percent 
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of such original principal obligation, subject to para-
graph (5). 
‘‘(5) In the case of any such mortgage insured 
after the expiration of the 4-year period beginning 
on the date of the enactment of such Act, 40 percent 
of such original principal obligation.’’. 
SEC. 142. INCREASE IN FHA DOWNPAYMENT REQUIRE-
MENT. 
Subparagraph (A) of section 203(b)(9) of the Na-
tional Housing Act (12 U.S.C. 1709(b)(9)(A)) is amend-
ed— 
(1) by striking ‘‘(A) IN GENERAL.—A mort-
gage’’ and inserting the following: 
‘‘(A) IN GENERAL.— 
‘‘(i) 
PAYMENT
REQUIREMENT.—A 
mortgage’’; 
(2) by striking ‘‘3.5 percent of the appraised 
value of the property’’ and inserting ‘‘the percentage 
of the appraised value of the property specified in 
clause (ii)’’; and 
(3) by adding at the end the following new 
clause: 
‘‘(ii) PERCENTAGE
OF
APPRAISED 
VALUE OF PROPERTY.—The percentage of 
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the appraised value of a property specified 
in this clause is— 
‘‘(I) for a mortgage insured 
under this section after the date of 
the enactment of the New Fair Deal 
Banking and Housing Stability Act of 
2013, 5.0 percent, subject to sub-
clauses (II) through (V); 
‘‘(II) for a mortgage insured 
under this section after the expiration 
of the 1-year period beginning on the 
date of the enactment of the New 
Fair Deal Banking and Housing Sta-
bility Act of 2013, 6.5 percent, sub-
ject to subclauses (III) through (V); 
‘‘(III) for a mortgage insured 
under this section after the expiration 
of the 2-year period beginning on the 
date of the enactment of the New 
Fair Deal Banking and Housing Sta-
bility Act of 2013, 8.0 percent, sub-
ject to subclauses (IV) and (V); 
‘‘(IV) for a mortgage insured 
under this section after the expiration 
of the 3-year period beginning on the 
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date of the enactment of the New 
Fair Deal Banking and Housing Sta-
bility Act of 2013, 9.5 percent, sub-
ject to subclause (V); and 
‘‘(V) for a mortgage insured 
under this section after the expiration 
of the 4-year period beginning on the 
date of the enactment of the New 
Fair Deal Banking and Housing Sta-
bility Act of 2013, 11.0 percent.’’. 
PART 3—TERMINATION OF FHA CREDIT 
GUARANTEES 
SEC. 151. TERMINATION OF FHA INSURANCE AUTHORITY. 
(a) TERMINATION.—Effective upon the expiration of 
the 5-year period beginning on the date of the enactment 
of this Act, the Secretary of Housing and Urban Develop-
ment may not insure, guarantee, or make any mortgage 
or other loan pursuant to any of the following provisions 
of law: 
(1) NATIONAL HOUSING ACT.—Titles I, II, V, 
VI, VII, VIII, IX, and XI of the National Housing 
Act (12 U.S.C. 1702 et seq., 1707 et seq., 1731a et 
seq., 1736 et seq., 1747 et seq., 1748 et seq., 1750 
et seq., 1749aaa et seq.). 
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(2) ENERGY
EFFICIENT
MORTGAGES
PRO-
GRAM.—Section 106 of the Energy Policy Act of 
1992 (12 U.S.C. 1701z–16) or section 513 of the 
Housing and Community Development Act of 1992 
(Public Law 102–550; 106 Stat. 3786). 
(3) FLEXIBLE
SUBSIDY
PROGRAM.—Section 
201 of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1715z–1a). 
(4) LOAN
GUARANTEES
FOR
INDIAN
HOUS-
ING.—Section 184 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z–13a). 
(5) LOAN GUARANTEES FOR NATIVE HAWAIIAN 
HOUSING.—Section 184A of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 1715z– 
13b). 
(6) MULTIFAMILY
MORTGAGE
CREDIT
PRO-
GRAM.—Section 542 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z–22). 
(b) REPEALS.—Effective upon the expiration of the 
period referred to in subsection (a), the provisions of law 
specified in such subsection are repealed. 
(c) TRANSFER OF FHA FUNCTIONS TO SECRETARY 
OF THE TREASURY.—Effective upon the expiration of the 
period referred to in subsection (a), all FHA functions are 
transferred to the Secretary of the Treasury, but only to 
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the extent necessary to fulfill outstanding obligations of 
the Department of Housing and Urban Development 
under such provisions and windup the business of the De-
partment of Housing and Urban Development under such 
provisions. 
(d) RESOLUTION AND TERMINATION OF FHA FUNC-
TIONS.— 
(1) RESOLUTION
OF
FUNCTIONS.—The Sec-
retary of the Treasury shall— 
(A) complete the disposition and resolution 
of FHA functions in accordance with this sec-
tion; and 
(B) resolve all FHA functions that are 
transferred to the Secretary under subsection 
(c). 
(2) TERMINATION
OF
FUNCTIONS.—All FHA 
functions that are transferred to the Secretary under 
subsection (c) shall terminate on the date all obliga-
tions of the FHA, and all obligations of others to 
the FHA, in effect immediately before the expiration 
of the period referred to in subsection (a) have been 
satisfied, as determined by the Secretary of the 
Treasury. 
(3) REPORT TO CONGRESS.—Upon making the 
determination described in paragraph (2), the Sec-
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retary of the Treasury shall report the determination 
to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate. 
(e) DUTIES OF SECRETARY OF THE TREASURY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall be responsible for the implementation of 
this section, including— 
(A) the administration and wind-up of all 
FHA functions transferred to the Secretary 
under subsection (c); 
(B) the administration and wind-up of any 
outstanding obligations of the Federal Govern-
ment under any programs terminated by this 
section; and 
(C) taking such other actions as may be 
necessary to wind-up any outstanding affairs of 
the FHA. 
(f) PERSONNEL.—Effective upon the expiration of 
the period referred to in subsection (a), there are trans-
ferred to the Department of the Treasury all individuals, 
who— 
(1) immediately before such expiration, were of-
ficers or employees of the Department of Housing 
and Urban Development; and 
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head of any office to which functions are transferred under 
this section) may delegate any of the functions so trans-
ferred to such officers and employees of the office of the 
official as the official may designate, and may authorize 
successive redelegations of such functions as may be nec-
essary or appropriate. No delegation of functions under 
this subsection or under any other provision of this section 
shall relieve the official to whom a function is transferred 
under this section of responsibility for the administration 
of the function. 
(j) AUTHORITY OF SECRETARY OF THE TREASURY 
WITH RESPECT TO FUNCTIONS TRANSFERRED.— 
(1) DETERMINATIONS.—If necessary, the Sec-
retary of the Treasury shall make any determination 
of the functions that are transferred under this sec-
tion. 
(2) INCIDENTAL
TRANSFERS.—The Secretary 
of the Treasury, at such time or times as the Sec-
retary shall provide, may make such determinations 
as may be necessary with regard to the functions 
transferred by this section, and to make such addi-
tional incidental dispositions of personnel, assets, li-
abilities, grants, contracts, property, records, and 
unexpended balances of appropriations, authoriza-
tions, allocations, and other funds held, used, arising 
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from, available to, or to be made available in connec-
tion with such functions, as may be necessary to 
carry out the provisions of this section. 
(k) SAVINGS PROVISIONS.— 
(1) 
AUTHORITY
REGARDING
OUTSTANDING 
COMMITMENTS.—Notwithstanding the repeals under 
subsection (b), the Secretary may insure, guarantee, 
or make any mortgage for which a commitment to 
insure, guarantee, or make was made before the ef-
fective date of such repeals under the provision of 
law repealed. Any such mortgage shall be subject to 
the terms of the provisions of law repealed as in ef-
fect immediately before such repeal. 
(2) EFFECT ON OUTSTANDING MORTGAGE IN-
SURANCE.—Any mortgage insurance, funds, or ac-
tivities subject, before repeal, to a provision of law 
repealed by subsection (b) shall continue to be gov-
erned by the provision as in effect immediately be-
fore repeal. 
(3) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS
NOT
AFFECTED.—Subsections (a) and (b) 
shall not affect the validity of any right, duty, or ob-
ligation of the United States, the Secretary of Hous-
ing and Urban Development, or any other person, 
which— 
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(A) arises under any provision of law re-
pealed by subsection (b); and 
(B) existed immediately before the effective 
date of such repeals. 
(4) LEGAL
DOCUMENTS.—All orders, deter-
minations, rules, regulations, permits, grants, loans, 
contracts, agreements, certificates, licenses, and 
privileges— 
(A) that have been issued, made, granted, 
or allowed to become effective by the Secretary 
of Housing and Urban Development, any officer 
or employee of any office transferred by this 
section, or any other Government official, or by 
a court of competent jurisdiction, in the per-
formance of any function that is transferred by 
this section, and 
(B) that are in effect upon the expiration 
of the period referred to in subsection (a) (or 
become effective after such date pursuant to 
their terms as in effect upon such expiration), 
shall continue in effect according to their terms 
until modified, terminated, superseded, set 
aside, or revoked in accordance with law by the 
President, any other authorized official, a court 
of competent jurisdiction, or operation of law. 
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(5) PROCEEDINGS.—This section shall not af-
fect any proceedings or any application for any bene-
fits, service, license, permit, certificate, or financial 
assistance pending upon the expiration of the period 
referred to in subsection (a) before an office trans-
ferred by this section, but such proceedings and ap-
plications shall be continued. Orders shall be issued 
in such proceedings, appeals shall be taken there-
from, and payments shall be made pursuant to such 
orders, as if this section had not been enacted, and 
orders issued in any such proceeding shall continue 
in effect until modified, terminated, superseded, or 
revoked by a duly authorized official, by a court of 
competent jurisdiction, or by operation of law. Noth-
ing in this paragraph shall be considered to prohibit 
the discontinuance or modification of any such pro-
ceeding under the same terms and conditions and to 
the same extent that such proceeding could have 
been discontinued or modified if this section had not 
been enacted. 
(6) NONABATEMENT OF ACTIONS.—No action 
or other proceeding commenced by or against the 
Secretary of Housing and Urban Development in 
connection with functions transferred to the Sec-
retary of the Treasury under subsection (c) shall 
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abate by reason of the enactment of this section, ex-
cept that the Secretary of the Treasury shall be sub-
stituted for the Secretary of Housing and Urban De-
velopment as a party to any such action or pro-
ceeding. 
(7) SUITS.—This section shall not affect suits 
commenced before the expiration of the period re-
ferred to in subsection (a), and in all such suits, 
proceeding shall be had, appeals taken, and judg-
ments rendered in the same manner and with the 
same effect as if this section had not been enacted. 
If any Government officer in the official capacity of 
such officer is party to a suit with respect to a func-
tion of the officer, and under this section such func-
tion is transferred to any other officer or office, then 
such suit shall be continued with the other officer or 
the head of such other office, as applicable, sub-
stituted or added as a party. 
(8) ADMINISTRATIVE
PROCEDURE
AND
JUDI-
CIAL REVIEW.—Except as otherwise provided by this 
section, any statutory requirements relating to no-
tice, hearings, action upon the record, or administra-
tive or judicial review that apply to any function 
transferred by this section shall apply to the exercise 
of such function by the head of the Federal agency, 
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and other officers of the agency, to which such func-
tion is transferred by this section. 
(l) AVAILABILITY OF EXISTING FUNDS.—Existing 
appropriations and funds available for the performance of 
functions, programs, and activities terminated pursuant to 
this section shall remain available, for the duration of 
their period of availability, for necessary expenses in con-
nection with the termination and resolution of such func-
tions, programs, and activities. Upon the expiration of all 
contracts and agreements with respect to such functions, 
programs, and activities, any unexpended balances of the 
funds referred to in this subsection shall be deposited in 
the Treasury as miscellaneous receipts. 
(m) REFERENCES.—Any reference in any other Fed-
eral law, Executive order, rule, regulation, or delegation 
of authority, or any document of or pertaining to a depart-
ment or office from which a function is transferred by this 
section— 
(1) to the head of such department or office is 
deemed to refer to the head of the department or of-
fice to which the function is transferred; or 
(2) to such department or office is deemed to 
refer to the department or office to which the func-
tion is transferred. 
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Subtitle C—Ending Guarantees for 
Government 
Mortgage-Backed 
Securities 
SEC. 161. LIMITATION ON GNMA GUARANTEES. 
Subsection (g) of section 306 of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1721(g)) is 
amended by adding at the end the following new para-
graph: 
‘‘(4) The Association may not enter into commit-
ments to issue guarantees under this subsection in an ag-
gregate amount— 
‘‘(A) in any month commencing after the date 
of the enactment of the New Fair Deal Banking and 
Housing Stability Act of 2013, that exceeds 
$38,000,000,000, subject to subparagraphs (B) 
through (F); 
‘‘(B) in any month commencing after the expi-
ration of the 1-year period beginning on the date of 
the enactment of the New Fair Deal Banking and 
Housing Stability Act of 2013, that exceeds 
$32,000,000,000, subject to subparagraphs (C) 
through (F); 
‘‘(C) in any month commencing after the expi-
ration of the 2-year period beginning on the date of 
the enactment of the New Fair Deal Banking and 
VerDate Mar 15 2010 
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Housing Stability Act of 2013, that exceeds 
$24,000,000,000, subject to subparagraphs (D) 
through (F); 
‘‘(D) in any month commencing after the expi-
ration of the 3-year period beginning on the date of 
the enactment of the New Fair Deal Banking and 
Housing Stability Act of 2013, that exceeds 
$16,000,000,000, subject to subparagraphs (E) and 
(F); 
‘‘(E) in any month commencing after the expi-
ration of the 4-year period beginning on the date of 
the enactment of the New Fair Deal Banking and 
Housing Stability Act of 2013, that exceeds 
$8,000,000,000, subject to subparagraph (F); and 
‘‘(F) in any month commencing after the expi-
ration of the 5-year period beginning on the date of 
the enactment of the New Fair Deal Banking and 
Housing Stability Act of 2013, that exceeds $0.’’. 
SEC. 162. ABOLISHMENT OF GINNIE MAE. 
(a) ABOLISHMENT AND TRANSFER.—Effective upon 
the expiration of the 5-year period beginning on the date 
of the enactment of this Act— 
(1) the Government National Mortgage Associa-
tion is abolished; and 
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(2) all functions that, immediately before the 
expiration of such period are authorized to be per-
formed by the Association, any officer or employee 
of the Association acting in that capacity, or any of-
fice of the Association, are transferred to the Sec-
retary of the Treasury. 
(b) REPEALS.— 
(1) CHARTER.—For provisions repealing the or-
ganic authority of the Government National Mort-
gage Association, see section 121(a)(1) of this Act. 
(2) ADMINISTRATIVE EXPENSES PROVISION.— 
Effective upon the expiration of the period referred 
to in subsection (a), subsection (b) of section 306 of 
the Housing Act of 1959 (12 U.S.C. 1721 note) is 
hereby repealed. 
(c) RESOLUTION AND TERMINATION OF FHA FUNC-
TIONS.— 
(1) RESOLUTION
OF
FUNCTIONS.—The Sec-
retary of the Treasury shall— 
(A) complete the disposition and resolution 
of FHA functions in accordance with this sec-
tion; and 
(B) resolve all FHA functions that are 
transferred to the Secretary under subsection 
(a)(2). 
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(2) TERMINATION
OF
FUNCTIONS.—All FHA 
functions that are transferred to the Secretary under 
subsection (a)(2) shall terminate on the date all obli-
gations of the FHA, and all obligations of others to 
the FHA, in effect immediately before the expiration 
of the period referred to in subsection (a) have been 
satisfied, as determined by the Secretary of the 
Treasury. 
(3) REPORT TO CONGRESS.—Upon making the 
determination described in paragraph (2), the Sec-
retary of the Treasury shall report the determination 
to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate. 
(d) DUTIES OF SECRETARY OF THE TREASURY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall be responsible for the implementation of 
this section, including— 
(A) the administration and wind-up of all 
FHA functions transferred to the Secretary 
under subsection (c); 
(B) the administration and wind-up of any 
outstanding obligations of the Federal Govern-
ment under any programs terminated by this 
section; and 
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(C) taking such other actions as may be 
necessary to wind-up any outstanding affairs of 
the FHA. 
(e) PERSONNEL.—Effective upon the expiration of 
the period referred to in subsection (a), there are trans-
ferred to the Department of the Treasury all individuals, 
who— 
(1) immediately before such expiration, were of-
ficers or employees of the Department of Housing 
and Urban Development; and 
(2) in their capacity as such an officer or em-
ployee, performed functions that are transferred to 
the Secretary under subsection (c). 
(f) EXERCISE OF AUTHORITIES.—Except as other-
wise provided by law, a Federal official to whom a function 
is transferred by this section, for purposes of performing 
the function, exercise all authorities under any other provi-
sion of law that were available with respect to the perform-
ance of that function to the official responsible for the per-
formance of the function immediately before the effective 
date of the transfer of the function under this section. 
(g) TRANSFER
OF ASSETS.—Except as otherwise 
provided in this section so much of the personnel, prop-
erty, records, and unexpended balances of appropriations, 
allocations, and other funds employed, used, held, avail-
VerDate Mar 15 2010 
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able, or to be made available in connection with a function 
transferred to an official or agency by this section shall 
be available to the official or the head of that agency, re-
spectively, at such time or times as the Director of the 
Office of Management and Budget directs for use in con-
nection with the functions transferred. 
(h) DELEGATION AND ASSIGNMENT.—Except as oth-
erwise expressly prohibited by law, an official to whom 
functions are transferred under this section (including the 
head of any office to which functions are transferred under 
this section) may delegate any of the functions so trans-
ferred to such officers and employees of the office of the 
official as the official may designate, and may authorize 
successive redelegations of such functions as may be nec-
essary or appropriate. No delegation of functions under 
this subsection or under any other provision of this section 
shall relieve the official to whom a function is transferred 
under this section of responsibility for the administration 
of the function. 
(i) AUTHORITY OF SECRETARY OF THE TREASURY 
WITH RESPECT TO FUNCTIONS TRANSFERRED.— 
(1) DETERMINATIONS.—If necessary, the Sec-
retary of the Treasury shall make any determination 
of the functions that are transferred under this sec-
tion. 
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