291 
(1) IN GENERAL.—Section 308(b) of the Federal 
National Mortgage Association Charter Act (12 
U.S.C. 1723(b)) is amended— 
(A) in the first sentence, by striking ‘‘eight-
een persons, five of whom shall be appointed an-
nually by the President of the United States, and 
the remainder of whom’’ and inserting ‘‘13 per-
sons, or such other number that the Director de-
termines appropriate, who’’; 
(B) in the second sentence, by striking ‘‘ap-
pointed by the President’’; 
(C) in the third sentence— 
(i) by striking ‘‘appointed or’’; and 
(ii) by striking ‘‘, except that any such 
appointed member may be removed from of-
fice by the President for good cause’’; 
(D) in the fourth sentence, by striking ‘‘elec-
tive’’; and 
(E) by striking the fifth sentence. 
(2) TRANSITIONAL PROVISION.—The amendments 
made by paragraph (1) shall not apply to any ap-
pointed position of the board of directors of the Fed-
eral National Mortgage Association until the expira-
tion of the annual term for such position during 
which the effective date under Section 185 occurs. 
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00291
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
292 
(b) FREDDIE MAC.— 
(1) IN GENERAL.—Section 303(a)(2) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1452(a)(2)) is amended— 
(A) in subparagraph (A)— 
(i) in the first sentence, by striking 
‘‘18 persons, 5 of whom shall be appointed 
annually by the President of the United 
States and the remainder of whom’’ and in-
serting ‘‘13 persons, or such other number 
as the Director determines appropriate, 
who’’; and 
(ii) in the second sentence, by striking 
‘‘appointed by the President of the United 
States’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘such or’’; and 
(ii) by striking ‘‘, except that any ap-
pointed member may be removed from office 
by the President for good cause’’; and 
(C) in subparagraph (C)— 
(i) by striking the first sentence; and 
(ii) by striking ‘‘elective’’. 
(2) TRANSITIONAL PROVISION.—The amendments 
made by paragraph (1) shall not apply to any ap-
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00292
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
293 
pointed position of the board of directors of the Fed-
eral Home Loan Mortgage Corporation until the expi-
ration of the annual term for such position during 
which the effective date under Section 185 occurs. 
SEC. 182. REPORT ON PORTFOLIO OPERATIONS, SAFETY 
AND SOUNDNESS, AND MISSION OF ENTER-
PRISES. 
Not later than the expiration of the 12-month period 
beginning on the effective date under section 185, the Direc-
tor of the Federal Housing Finance Agency shall submit 
a report to the Congress which shall include— 
(1) a description of the portfolio holdings of the 
enterprises (as such term is defined in section 1303 
of the Housing and Community Development Act of 
1992 (12 U.S.C. 4502) in mortgages (including whole 
loans and mortgage-backed securities), non-mortgages, 
and other assets; 
(2) a description of the risk implications for the 
enterprises of such holdings and the consequent risk 
management undertaken by the enterprises (including 
the use of derivatives for hedging purposes), compared 
with off-balance sheet liabilities of the enterprises (in-
cluding mortgage-backed securities guaranteed by the 
enterprises); 
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00293
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
294 
(3) an analysis of portfolio holdings for safety 
and soundness purposes; 
(4) an assessment of whether portfolio holdings 
fulfill the mission purposes of the enterprises under 
the Federal National Mortgage Association Charter 
Act and the Federal Home Loan Mortgage Corpora-
tion Act; and 
(5) an analysis of the potential systemic risk im-
plications for the enterprises, the housing and capital 
markets, and the financial system of portfolio hold-
ings, and whether such holdings should be limited or 
reduced over time. 
SEC. 183. CONFORMING AND TECHNICAL AMENDMENTS. 
(a) 1992 ACT.—Title XIII of the Housing and Com-
munity Development Act of 1992 is amended by striking 
section 1383 (12 U.S.C. 1451 note). 
(b) TITLE 18, UNITED STATES CODE.—Section 1905 
of title 18, United States Code, is amended by striking ‘‘Of-
fice of Federal Housing Enterprise Oversight’’ and insert-
ing ‘‘Federal Housing Finance Agency’’. 
(c) FLOOD DISASTER PROTECTION ACT OF 1973.— 
Section 102(f)(3)(A) of the Flood Disaster Protection Act 
of 1973 (42 U.S.C. 4012a(f)(3)(A)) is amended by striking 
‘‘Director of the Office of Federal Housing Enterprise Over-
sight of the Department of Housing and Urban Develop-
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00294
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
295 
ment’’ and inserting ‘‘Director of the Federal Housing Fi-
nance Agency’’. 
(d) DEPARTMENT OF HOUSING AND URBAN DEVELOP-
MENT ACT.—Section 5 of the Department of Housing and 
Urban Development Act (42 U.S.C. 3534) is amended by 
striking subsection (d). 
(e) TITLE 5, UNITED STATES CODE.— 
(1) DIRECTOR’S
PAY
RATE.—Section 5313 of 
title 5, United States Code, is amended by striking 
the item relating to the Director of the Office of Fed-
eral Housing Enterprise Oversight, Department of 
Housing and Urban Development and inserting the 
following new item: 
‘‘Director of the Federal Housing Finance Agen-
cy.’’. 
(2) EXCLUSION FROM SENIOR EXECUTIVE SERV-
ICE.—Section 3132(a)(1)(D) of title 5, United States 
Code, is amended— 
(A) by striking ‘‘the Federal Housing Fi-
nance Board,’’; and 
(B) by striking ‘‘the Office of Federal Hous-
ing Enterprise Oversight of the Department of 
Housing and Urban Development’’ and inserting 
‘‘the Federal Housing Finance Agency’’. 
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00295
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
296 
(f) INSPECTOR GENERAL ACT
OF 1978.—Section 
8G(a)(2) of the Inspector General Act of 1978 (5 U.S.C. 
App.) is amended by striking ‘‘Federal Housing Finance 
Board’’ and inserting ‘‘Federal Housing Finance Agency’’. 
(g) FEDERAL DEPOSIT INSURANCE ACT.—Section 
11(t)(2)(A) of the Federal Deposit Insurance Act (12 
U.S.C.1821(t)(2)(A)) is amended by adding at the end the 
following new clause: 
‘‘(vii) The Federal Housing Finance 
Agency.’’. 
(h) 1997 EMERGENCY SUPPLEMENTAL APPROPRIA-
TIONS ACT.—Section 10001 of the 1997 Emergency Supple-
mental Appropriations Act for Recovery From Natural Dis-
asters, and for Overseas Peacekeeping Efforts, Including 
Those In Bosnia (42 U.S.C. 3548) is amended— 
(1) by striking ‘‘the Government National Mort-
gage Association, and the Office of Federal Housing 
Enterprise Oversight’’ and inserting ‘‘and the Govern-
ment National Mortgage Association’’; and 
(2) by striking ‘‘, the Government National 
Mortgage Association, or the Office of Federal Hous-
ing Enterprise Oversight’’ and inserting ‘‘or the Gov-
ernment National Mortgage Association’’. 
(i) NATIONAL HOMEOWNERSHIP TRUST ACT.—Section 
302(b)(4) of the Cranston-Gonzalez National Affordable 
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00296
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
297 
Housing Act (42 U.S.C. 12851(b)(4)) is amended by strik-
ing ‘‘the chairperson of the Federal Housing Finance 
Board’’ and inserting ‘‘the Director of the Federal Housing 
Finance Agency’’. 
SEC. 184. STUDY OF ALTERNATIVE SECONDARY MARKET 
SYSTEMS. 
(a) IN GENERAL.—The Director of the Federal Hous-
ing Finance Agency, in consultation with the Board of Gov-
ernors of the Federal Reserve System, the Secretary of the 
Treasury, and the Secretary of Housing and Urban Devel-
opment, shall conduct a comprehensive study of the effects 
on financial and housing finance markets of alternatives 
to the current secondary market system for housing finance, 
taking into consideration changes in the structure of finan-
cial and housing finance markets and institutions since the 
creation of the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation. 
(b) CONTENTS.—The study under this section shall— 
(1) include, among the alternatives to the current 
secondary market system analyzed— 
(A) repeal of the chartering Acts for the 
Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation; 
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00297
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS
298 
(B) establishing bank-like mechanisms for 
granting new charters for limited purposed 
mortgage securitization entities; 
(C) permitting the Director of the Federal 
Housing Finance Agency to grant new charters 
for limited purpose mortgage securitization enti-
ties, which shall include analyzing the terms on 
which such charters should be granted, including 
whether such charters should be sold, or whether 
such charters and the charters for the Federal 
National Mortgage Association and the Federal 
Home Loan Mortgage Corporation should be 
taxed or otherwise assessed a monetary price; 
and 
(D) such other alternatives as the Director 
considers appropriate; 
(2) examine all of the issues involved in making 
the transition to a completely private secondary mort-
gage market system; 
(3) examine the technological advancements the 
private sector has made in providing liquidity in the 
secondary mortgage market and how such advance-
ments have affected liquidity in the secondary mort-
gage market; and 
VerDate Aug 31 2005 
01:58 May 10, 2007
Jkt 059200
PO 00000
Frm 00298
Fmt 6652
Sfmt 6203
E:\BILLS\H1427.RH
H1427
ccoleman on PRODPC74 with BILLS