I 
114TH CONGRESS 
1ST SESSION H. R. 1224 
To require the exercise of clean-up call options under securities issued by 
the Federal Home Loan Mortgage Corporation and to prohibit any 
new mortgage-backed securities issued by such Corporation or the Fed-
eral National Mortgage Association from containing provisions for a 
clean-up call option, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2015 
Mr. PERLMUTTER (for himself and Mr. SCHWEIKERT) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To require the exercise of clean-up call options under securi-
ties issued by the Federal Home Loan Mortgage Cor-
poration and to prohibit any new mortgage-backed secu-
rities issued by such Corporation or the Federal National 
Mortgage Association from containing provisions for a 
clean-up call option, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Freddie Mac REMIC 
Reform Act of 2015’’. 
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SEC. 2. EXERCISE OF CLEAN-UP CALL OPTIONS. 
Subtitle B of title XIII of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 4611 et seq.) 
is amended by adding at the end the following new section: 
‘‘SEC. 1369F. EXERCISE OF CLEAN-UP CALL OPTIONS. 
‘‘(a) REQUIREMENT.—In complying with any restric-
tion under law, regulation, order, or agreement with the 
Director or the Secretary of the Treasury on the mort-
gage-backed securities issued by the Federal Home Loan 
Mortgage Corporation, such Corporation or, during the 
term of any conservatorship or receivership of such enter-
prise pursuant to section 1367, the Director, shall in the 
case of any mortgage-backed security with a clean-up call 
option (as such term is defined in subsection (d) of this 
section) that is issued by such Corporation, exercise any 
option under which the residual holder is willing to share 
not less than 50 percent of any excess proceeds resulting 
from exercise of such option or right with the Agency as 
conservator or receiver of such Corporation, if such pro-
ceeds benefit the taxpayers of the United States. 
‘‘(b) PROHIBITION REGARDING ISSUANCE OF NEW 
SECURITIES.—The Director shall prohibit the Federal 
Home Loan Mortgage Corporation and the Federal Na-
tional Mortgage Association from issuing, after the date 
of the enactment of this section, any mortgage-backed se-
curity with a clean-up call option. 
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‘‘(c) USE OF PROCEEDS TO REDUCE DEFICIT.—The 
Director shall ensure that any excess proceeds received as 
a result of the exercise of any clean-up call option shall 
be used only to reduce the budget deficit of the Federal 
Government. 
‘‘(d) DEFINITIONS.— 
‘‘(1) 
MORTGAGE-BACKED
SECURITIES.—The 
term ‘mortgage-backed securities’ means debt obliga-
tions issued in the form of participation certificates, 
collateralized mortgage obligations, mortgage-backed 
commercial paper, and real estate mortgage invest-
ment conduits. 
‘‘(2) MORTGAGE-BACKED
SECURITY
WITH
A 
CLEAN-UP
CALL
OPTION.—The term ‘mortgage- 
backed security with a clean-up call option’ means 
any mortgage-backed security under which there is 
an option or right to redeem all remaining classes of 
such security at such time when the amount of the 
aggregate remaining principal would be less than the 
amount of the optional redemption or clean-up call 
percentage, as defined in the applicable offering cir-
cular or offering circular supplement. 
‘‘(3) EXCESS
PROCEEDS.—The term ‘excess 
proceeds’ means, with respect to exercise of any 
clean-up call option, the excess of the net proceeds 
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from the sale of the collateral underlying the mort-
gage-backed security with such option, and the re-
demption price as defined in the applicable offering 
circular or offering circular supplement.’’. 
Æ 
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