‘‘(A) REQUIRED
CORRECTION
OF
DEFI-
CIENCY.—The Director shall, by order, require 
the regulated entity to correct the deficiency. 
‘‘(B) OTHER
AUTHORITY.—The Director 
may, by order, take one or more of the fol-
lowing actions until the deficiency is corrected: 
‘‘(i) Prohibit the regulated entity from 
permitting its average total assets (as such 
term is defined in section 1316(b)) during 
any calendar quarter to exceed its average 
total assets during the preceding calendar 
quarter, or restrict the rate at which the 
average total assets of the entity may in-
crease from one calendar quarter to an-
other. 
‘‘(ii) Require the regulated entity— 
‘‘(I) in the case of an enterprise, 
to increase its ratio of core capital to 
assets. 
‘‘(II) in the case of a Federal 
home loan bank, to increase its ratio 
of total capital (as such term is de-
fined in section 6(a)(5) of the Federal 
Home Loan Bank Act (12 U.S.C. 
1426(a)(5)) to assets.
‘‘(iii) Require the regulated entity to 
take any other action that the Director de-
termines will better carry out the purposes 
of subtitle C than any of the actions de-
scribed in this subparagraph 
‘‘(3) MANDATORY
RESTRICTIONS.—In com-
plying with paragraph (2), the Director shall take 
one or more of the actions described in clauses (i) 
through (iii) of paragraph (2)(B) if— 
‘‘(A) the Director determines that the reg-
ulated entity fails to meet any standard pre-
scribed under subsection (a); 
‘‘(B) the regulated entity has not corrected 
the deficiency; and 
‘‘(C) during the 18-month period before 
the date on which the regulated entity first 
failed to meet the standard, the entity under-
went extraordinary growth, as defined by the 
Director. 
‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT AF-
FECTED.—The authority of the Director under this sec-
tion is in addition to any other authority of the Director.’’. 
(b) INDEPENDENCE IN CONGRESSIONAL TESTIMONY 
AND RECOMMENDATIONS.—Section 111 of Public Law 
93–495 (12 U.S.C. 250) is amended by striking ‘‘the Fed-
eral Housing Finance Board’’ and inserting ‘‘the Director 
of the Federal Housing Finance Agency’’. 
SEC. 103. HOUSING FINANCE OVERSIGHT BOARD. 
(a) IN GENERAL.—Title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4501 et 
seq.) is amended by inserting after section 1313A, as 
added by section 102 of this Act, the following new sec-
tion: 
‘‘SEC. 1313B. HOUSING FINANCE OVERSIGHT BOARD. 
‘‘(a) IN GENERAL.—There is established the Housing 
Finance Oversight Board. 
‘‘(b) DUTIES.—The Board shall advise the Director 
with respect to overall strategies and policies in carrying 
out the duties of the Director under this title. Except as 
otherwise provided under this Act, the Board shall not ex-
ercise any executive authority. 
‘‘(c) COMPOSITION.—The Board shall be comprised 
of 5 members, as follows: 
‘‘(1) One member shall be the Director, who 
shall serve as the Chairperson of the Board. 
‘‘(2) One member shall be the Secretary of the 
Treasury or the designee of the Secretary. 
‘‘(3) One member shall be the Secretary of 
Housing and Urban Development or the designee of 
the Secretary.
‘‘(4) Two members shall be appointed by the 
President, by and with the advice and consent of the 
Senate, who shall include— 
‘‘(A) one individual who has extensive ex-
perience and expertise in the capital markets 
(including debt markets), the secondary mort-
gage market, and mortgage-backed securities; 
and 
‘‘(B) one individual who has extensive ex-
perience and expertise in mortgage finance (in-
cluding single family and multifamily housing 
mortgage finance), development of affordable 
housing, and economic development and revital-
ization. 
‘‘(d) FULL-TIME MEMBERS AND STAFF.— 
‘‘(1) FULL-TIME MEMBERS.—The members of 
the Board pursuant to subsection (c)(4) shall serve 
on a full-time basis. 
‘‘(2) STAFF.—The Board may appoint and fix 
the compensation of such staff as the Board con-
siders necessary to carry out the functions of the 
Board. 
‘‘(e) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet upon 
notice by the Director, but in no event shall the
Board meet less frequently than once every 3 
months. 
‘‘(2) SPECIAL MEETINGS.—Any member of the 
Board may, upon giving written notice to the Direc-
tor, require a special meeting of the Board, which 
shall be convened by the Director within 30 days 
after such notice. 
‘‘(f) TESTIMONY.—On an annual basis, the Board 
shall testify before Congress regarding— 
‘‘(1) the safety and soundness of the regulated 
entities; 
‘‘(2) any material deficiencies in the conduct of 
the operations of the regulated entities; 
‘‘(3) the overall operational status of the regu-
lated entities; 
‘‘(4) an evaluation of the performance of the 
regulated entities in carrying out their respective 
missions; 
‘‘(5) operations, resources, and performance of 
the Agency and the Board; and 
‘‘(6) such other matters relating to the Agency, 
the Board, and the regulated entities, and their ful-
fillment of their missions, as the Board determines 
appropriate.