I 
108TH CONGRESS 
1ST SESSION H. R. 2803
To establish the Office of Housing Finance Oversight in the Department 
of the Treasury to ensure the financial safety and soundness of Fannie 
Mae, Freddie Mac, and the Federal home loan banks. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 21, 2003
Mr. ROYCE introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To establish the Office of Housing Finance Oversight in 
the Department of the Treasury to ensure the financial 
safety and soundness of Fannie Mae, Freddie Mac, and 
the Federal home loan banks.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Housing Finance Regulatory Restructuring Act of 
2003’’. 
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
TITLE I—REGULATION OF FEDERAL HOUSING ENTERPRISES 
AND FEDERAL HOME LOAN BANKS 
Sec. 101. Establishment of Office of Housing Finance Oversight. 
Sec. 102. Financial safety and soundness of enterprises. 
Sec. 103. Charter compliance of enterprises. 
Sec. 104. Supervision of Federal Home Loan Bank System. 
Sec. 105. Amendments to title 5, United States Code. 
Sec. 106. Financial Institutions Examination Council. 
Sec. 107. Effective date. 
TITLE II—TRANSFER OF FUNCTIONS, PERSONNEL, AND 
PROPERTY 
Sec. 201. Abolishment of OFHEO and Federal Housing Finance Board. 
Sec. 202. Continuation and coordination of certain regulations. 
Sec. 203. Transfer and rights of employees of abolished agencies. 
Sec. 204. Transfer of property and facilities.
TITLE I—REGULATION OF FED-
ERAL HOUSING ENTERPRISES 
AND FEDERAL HOME LOAN 
BANKS 
SEC. 101. ESTABLISHMENT OF OFFICE OF HOUSING FI-
NANCE OVERSIGHT. 
(a) IN GENERAL.—Part 1 of Subtitle A of title XIII 
of the Housing and Community Development Act of 1992 
is amended by striking sections 1311 and 1312 (12 U.S.C. 
4511, 4512) and inserting the following new sections: 
‘‘SEC. 1311. ESTABLISHMENT OF OFFICE OF HOUSING FI-
NANCE OVERSIGHT. 
‘‘(a) ESTABLISHMENT.—There is established the Of-
fice of Housing Finance Oversight, which shall be a bu-
reau in the Department of the Treasury. The Office shall 
succeed to the authority of the Director of the Office of 
Federal Housing Enterprise Oversight of the Department
of Housing and Urban Development and the Federal 
Housing Finance Board, and the general regulatory and 
any other authority of the Secretary of Housing and 
Urban Development with respect to the enterprises (except 
as specifically provided otherwise in this Act). 
‘‘(b) PROHIBITION OF MERGER OF OFFICE.—Not-
withstanding any other provision of this law, the Secretary 
of the Treasury may not merge or consolidate the Office, 
or any of the functions or responsibilities of the Office, 
with any other office or bureau of the Department of the 
Treasury or with any other function or program adminis-
tered by the Secretary. 
‘‘SEC. 1312. DIRECTOR. 
‘‘(a) ESTABLISHMENT OF POSITION.—
‘‘(1) IN GENERAL.—There is established the po-
sition of the Director of the Office of Housing Fi-
nance Oversight, who shall be the head of the Office 
of Housing Finance Oversight and shall be subject 
to the general oversight of the Secretary of the 
Treasury. 
‘‘(2) AUTHORITY
TO
PRESCRIBE
REGULA-
TIONS.—The Director may prescribe such regula-
tions and issue such orders as the Director may de-
termine to be necessary for carrying out this Act 
and the functions assigned to the Director under the
Federal National Mortgage Association Charter Act 
and the Federal Home Loan Mortgage Corporation 
Act. 
‘‘(3) AUTONOMY OF DIRECTOR.—The Secretary 
of the Treasury may not intervene in any matter or 
proceeding before the Director (including agency en-
forcement actions) unless otherwise specifically pro-
vided by law. 
‘‘(4) RULEMAKING.—The Secretary of the 
Treasury may not delay or prevent the issuance of 
any rule or the promulgation of any regulation by 
the Director. 
‘‘(b) APPOINTMENT; TERM.—
‘‘(1) APPOINTMENT.—The Director shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, from among individuals who 
are citizens of the United States.
‘‘(2) TERM.—The Director shall be appointed 
for a term of 5 years. 
‘‘(3) VACANCY.—A vacancy in the position of 
Director which occurs before the expiration of the 
term for which a Director was appointed shall be 
filled in the manner established in paragraph (1) 
and the Director appointed to fill such vacancy shall 
be appointed only for the remainder of such term.
dividual as Deputy Director. In the event of the 
death, resignation, sickness, or absence of the Direc-
tor, the Deputy Director for Safety and Soundness 
shall serve as acting Director until the return of the 
Director or the appointment of a successor pursuant 
to subsection (b). 
‘‘(2) DEPUTY
DIRECTOR
FOR
SAFETY
AND 
SOUNDNESS.—One of the Deputy Directors referred 
to in paragraph (1) shall be the Deputy Director for 
Safety and Soundness, who shall be appointed by 
the Director from among individuals who are citi-
zens of the United States and have a demonstrated 
understanding of finance. The Director shall assign 
to the Deputy Director for Safety and Soundness all 
functions, powers, and duties of the Director—
‘‘(A) with respect to the enterprises, 
that—
‘‘(i) before the effective date of the 
Housing Finance Regulatory Restructuring 
Act of 2003, were functions, powers, or du-
ties of the Director of the Office of Federal 
Housing Enterprise Oversight of the De-
partment of Housing and Urban Develop-
ment; or
‘‘(ii) are primarily related to the duty 
under section 1313; and 
‘‘(B) with respect to the Federal home 
loan banks, that—
‘‘(i) before the effective date of the 
Housing Finance Regulatory Restructuring 
Act of 2003, were functions, powers, or du-
ties of the Federal Housing Finance 
Board; or 
‘‘(ii) are related to the supervision, 
regulation, or oversight of the Federal 
home loan banks. 
‘‘(3) DEPUTY DIRECTOR FOR HOUSING ENTER-
PRISE CHARTER COMPLIANCE.—One of the Deputy 
Directors referred to in paragraph (1) shall be the 
Deputy Director for Housing Enterprise Charter 
Compliance, who shall be appointed by the Director 
from among individuals who are citizens of the 
United States and have a demonstrated under-
standing of finance. The Director shall assign to the 
Deputy Director for Housing Enterprise Charter 
Compliance all functions, powers, and duties of the 
Director with respect to the enterprises that—
‘‘(A) before the effective date of the Hous-
ing Finance Regulatory Restructuring Act of
2003, were the functions, powers, or duties of 
the Secretary of Housing and Urban Develop-
ment; or 
‘‘(B) are primarily related to compliance of 
the enterprises with their chartering Acts. 
‘‘(e) DELEGATION AUTHORITY.—
‘‘(1) IN GENERAL.—Subject only to the limita-
tions in subsection (d) and paragraph (2) of this 
subsection, the Director may delegate to any em-
ployee, representative, or agent any power of the Di-
rector. 
‘‘(2) LIMITATION.—Notwithstanding paragraph 
(1), the Director shall not, directly or indirectly, 
after October 10, 1989, delegate to any Federal 
home loan bank or to any officer, director, or em-
ployee of a Federal home loan bank, any power in-
volving examining, supervising, taking enforcement 
action with respect to, or otherwise regulating any 
savings association, savings and loan holding com-
pany, or other person subject to regulation by the 
Director.’’. 
(b) APPOINTMENT OF DIRECTOR.—Notwithstanding 
the effective date under section 107 or any other provision 
of law, the President may, at any time after the date of 
the enactment of this Act, appoint an individual to serve
as the Director of the Office of Housing Finance Over-
sight in accordance with the provisions of the amendment 
made by subsection (a) of this section. 
(c) PERSONNEL.—Section 1315 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4515) 
is amended—
(1) in subsection (a)—
(A) by striking ‘‘The’’ and inserting ‘‘Sub-
ject to title II of the Housing Finance Regu-
latory Restructuring Act of 2003, the’’; and 
(B) by adding at the end the following new 
sentence: ‘‘Notwithstanding any other provision 
of this section, in no event shall the Director 
delegate any function to any employee, adminis-
trative unit of any Federal home loan bank, or 
joint office of the Federal Home Loan Bank 
System.’’; 
(2) in subsection (d)—
(A) in the subsection heading, by striking 
‘‘HUD’’ and inserting ‘‘DEPARTMENT OF THE 
TREASURY’’; and 
(B) by striking ‘‘Housing and Urban De-
velopment’’ and inserting ‘‘the Treasury’’; and 
(3) by striking subsection (f).
(d) FUNDING.—Section 1316 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4516) 
is amended—
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) ANNUAL ASSESSMENTS.—
‘‘(1) DIRECTOR.—The Director shall establish 
and collect from the enterprises annual assessments 
in an amount not exceeding the amount sufficient to 
provide for reasonable costs and expenses of the Di-
rector, with respect to regulation and supervision of 
the enterprises, including the expenses of any exami-
nations under section 1317 and the expenses of ob-
taining any reviews under section 1319. 
‘‘(2) SECRETARY OF HUD.—The Secretary of 
Housing and Urban Development shall establish and 
collect from the enterprises annual assessments in 
an amount not exceeding the amount sufficient to 
provide for reasonable costs and expenses of the De-
partment of Housing and Urban Development in 
carrying out the responsibilities of the Secretary of 
Housing and Urban Development under this sub-
title, the Federal National Mortgage Association 
Charter Act, and the Federal Home Loan Mortgage 
Corporation Act.’’;
(2) in subsection (b)—
(A) in paragraph (1)—
(i) by inserting ‘‘and to the Secretary 
of Housing and Urban Development’’ after 
‘‘Director’’; 
(ii) by inserting ‘‘paragraph (1) and 
(2), respectively, of’’ before ‘‘subsection 
(a)’’; and 
(iii) by inserting ‘‘under such para-
graph’’ after ‘‘total annual assessment’’; 
and 
(B) in paragraph (2)—
(i) by striking ‘‘The annual assess-
ment’’ and inserting ‘‘Each of the annual 
assessments pursuant to paragraphs (1) 
and (2) of subsection (a)’’; and 
(ii) by realigning paragraph (2) two 
ems from the left margin, so as to align 
the left margin of such paragraph with the 
left margins of paragraphs (1) and (3); 
(3) in subsection (c)—
(A) by inserting ‘‘for an assessment under 
subsection (a)(1) that are’’ after ‘‘The semi-
annual payments’’; and
(B) by adding at the end the following new 
sentence: ‘‘The Director may adjust the 
amounts of any semiannual assessments for an 
assessment under subsection (a)(1) that are to 
be paid pursuant to subsection (b) by an enter-
prise, as necessary in the discretion of the Di-
rector, to ensure that the costs of enforcement 
activities under subtitles B and C for an enter-
prise are borne only by that enterprise.’’; 
(4) in subsection (d)—
(A) by inserting ‘‘by the Director or by the 
Secretary of Housing and Urban Development’’ 
before ‘‘from an enterprise’’; and
(B) by inserting ‘‘by the Director or by the 
Secretary of Housing and Urban Development, 
as applicable,’’ before ‘‘for the following year’’; 
(5) by striking subsection (f) and inserting the 
following new subsecton: 
‘‘(f) FUND.—
‘‘(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund to be 
known as the Federal Housing Enterprises Over-
sight Fund.
‘‘(2) DEPOSITS.—Notwithstanding any other 
provision of law, the following amounts shall be de-
posited in the Fund: 
‘‘(A) DIRECTOR’S
ASSESSMENTS
ON
EN-
TERPRISES.—Any assessments collected by the 
Director from the enterprises pursuant to this 
section, which shall be deposited in an account 
of the Director for the enterprises. 
‘‘(B) DIRECTORS ASSESSMENTS ON FED-
ERAL HOME LOAN BANKS.—Any receipts of the 
Director derived from assessments levied upon 
the Federal home loan banks pursuant to sec-
tion 18(b) of the Federal Home Loan Bank Act 
and from other sources (other than receipts 
from the sale of consolidated Federal home loan 
bank bonds and debentures issued under section 
11 of such Act), which shall be deposited in an 
account of the Director for the Federal home 
loan banks. 
‘‘(C) SECRETARY’S ASSESSMENTS ON EN-
TERPRISES.—Any amounts collected by the Sec-
retary of Housing and Urban Development, 
which shall be deposited in an account of such 
Secretary.
‘‘(3) AVAILABILITY.—Any amounts in the Fund 
are hereby made available, without fiscal year limita-
tion, as follows: 
‘‘(A) DIRECTOR’S RESPONSIBILITIES FOR 
ENTERPRISES.—To the Director, to the extent 
of amounts in the Director’s account estab-
lished pursuant to paragraph (2)(A), for car-
rying out the supervisory and regulatory re-
sponsibilities of the Director, with respect to 
the enterprises, including any necessary admin-
istrative and nonadministrative expenses of the 
Director in carrying out the purposes of this 
title, the Federal National Mortgage Associa-
tion Charter Act, and the Federal Home Loan 
Mortgage Corporation Act. 
‘‘(B) DIRECTOR’S RESPONSIBILITIES FOR 
FEDERAL HOME LOAN BANKS.—To the Direc-
tor, to the extent of amounts in the Director’s 
account established pursuant to paragraph 
(2)(B), for carrying out the supervisory and 
regulatory responsibilities of the Director, with 
respect to the Federal home loan banks.
‘‘(C) SECRETARY’S RESPONSIBLITIES FOR 
ENTERPRISES.—To the Secretary of Housing 
and Urban Development, to the extent of
amounts in the Secretary’s account established 
pursuant to paragraph (2)(C), for carrying out 
the regulatory responsibilities of the Secretary, 
with respect to the enterprises.’’; and 
(6) in subsection (g)—
(A) by striking paragraphs (1) and (2) and 
inserting the following new paragraphs: 
‘‘(1) FINANCIAL OPERATING PLANS AND FORE-
CASTS.—Before the beginning of each fiscal year—
‘‘(A) the Director shall submit a copy of 
the financial operating plans and forecasts for 
the Director, with respect to regulation and su-
pervision of the enterprises, to the Secretary of 
the Treasury and the Director of the Office of 
Management and Budget; and 
‘‘(B) the Secretary of Housing and Urban 
Development shall submit, to the Director, a 
copy of the financial operating plans and fore-
casts for the Department of Housing and 
Urban Development, with respect to responsibil-
ities and activities of the Secretary under this 
subtitle. 
‘‘(2) REPORTS
OF
OPERATIONS.—As soon as 
practicable after the end of each fiscal year and each 
quarter thereof—
‘‘(A) the Director shall submit a copy of 
the report of the results of the operations of the 
Director, with respect to regulation and super-
vision of the enterprises, during such period to 
the Secretary of the Treasury and the Director 
of the Office of Management and Budget; and 
‘‘(B) the Secretary of Housing and Urban 
Development shall submit, to the Director, a re-
port of the results of the operations of the De-
partment of Housing and Urban Development, 
with respect to responsibilities and activities of 
the Secretary under this subtitle.’’; and 
(B) in paragraph (3)—
(i) by striking ‘‘(A)’’; 
(ii) by striking ‘‘, and (B)’’ and in-
serting the following: ‘‘. The annual plans, 
forecasts, and reports required under para-
graphs (1)(B) and (2)(B) shall be in-
cluded’’; and 
(iii) by inserting ‘‘of Housing and 
Urban Development’’ before the period at 
the end. 
(e) PUBLIC DISCLOSURE OF FINAL ORDERS AND 
AGREEMENTS.—Section 1319C of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 4522) is 
amended—
(1) in subsection (a)—
(A) in paragraph (1), by inserting ‘‘or the 
Federal home loan banks, as the case may be’’ 
before the semicolon; and 
(B) in paragraph (2), by inserting ‘‘or 
under the authority of the Director under the 
Federal Home Loan Bank Act’’ after ‘‘subtitle 
C’’; 
(2) in subsection (c), by inserting ‘‘or the Fed-
eral home loan banks’’ after ‘‘the enterprise’’; and 
(3) in subsection (e), by inserting ‘‘or under the 
authority of the Director under the Federal Home 
Loan Bank Act’’ before the period at the end. 
(f) LIMITATION ON SUBSEQUENT EMPLOYMENT.—
Section 1319D of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4523) is amended by insert-
ing ‘‘or any Federal home loan bank’’ after ‘‘an enter-
prise’’. 
(g) INFORMATION, RECORDS, AND MEETINGS.—Sec-
tion 1319F of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4525) is amended by striking 
‘‘Code’’ and all that follows through ‘‘agencies’’ and in-
serting ‘‘Code, the Office shall be considered an agency’’.
(h) REGULATIONS.—Section 1319G of the Housing 
and Community Development Act of 1992 (12 U.S.C. 
4526) is amended by striking subsection (a) and inserting 
the following new subsection:
‘‘(a) AUTHORITY.—The Director shall issue any reg-
ulations and orders necessary to carry out the duties of 
the Director and to carry out this title and the responsibil-
ities of the Director under the Federal National Mortgage 
Association Charter Act, the Federal Home Loan Mort-
gage Corporation Act, and the Federal Home Loan Bank 
Act and to ensure that the purposes of this title and such 
Acts are accomplished.’’. 
(i) DEFINITIONS.—Section 1303 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4502) 
is amended—
(1) in paragraph (5), by striking ‘‘Office of 
Federal Housing Enterprise Oversight of the De-
partment of Housing and Urban Development’’ and 
inserting ‘‘Office of Housing Finance Oversight of 
the Department of the Treasury’’; 
(2) in paragraphs (8), (10), and (19), by strik-
ing ‘‘Secretary’’ each place such term appears and 
inserting ‘‘Director’’; 
(3) in paragraph (14), by striking ‘‘Office of 
Federal Housing Enterprise Oversight of the De-
partment of Housing and Urban Development’’ and 
inserting ‘‘Office of Housing Finance Oversight of 
the Department of the Treasury’’; 
(4) by striking paragraph (15); and 
(5) by redesignating paragraphs (16) through 
(19) as paragraphs (15) through (18), respectively. 
SEC. 102. FINANCIAL SAFETY AND SOUNDNESS OF ENTER-
PRISES. 
(a) IN GENERAL.—Subtitle A of title XIII of the 
Housing and Community Development Act of 1992 (12 
U.S.C. 4513) is amended—
(1) in section 1313 (12 U.S.C. 4513)—
(A) by striking the section designation and 
section heading and all that follows through the 
end of subsection (d) and inserting the fol-
lowing: 
‘‘SEC. 1313. FINANCIAL SAFETY AND SOUNDNESS DUTY. 
‘‘(a) DUTY.—It shall be the duty of the Director to 
ensure that the enterprises and the Federal home loan 
banks are adequately capitalized and operating safely, in 
accordance with this title.’’; 
(B) in subsection (e), by inserting ‘‘of the 
Treasury’’ after ‘‘Secretary’’;
(C) by redesignating subsection (e) as sub-
section (b); and
(D) by adding at the end the following new 
subsections: 
‘‘(b) ENFORCEMENT AUTHORITY.—In addition to 
any other authority of the Director to take an enforcement 
or remedial action with respect to an enterprise or a Fed-
eral home loan bank, the Director may issue cease-and-
desist orders, temporary cease-and-desist orders (includ-
ing orders to take affirmative action), and suspension and 
removal orders, and assess civil money penalties, with re-
spect to the enterprises and the Federal Home Loan 
Banks to the same extent and under the same procedures 
and conditions as the appropriate Federal banking agen-
cies are authorized under section 8 of the Federal Deposit 
Insurance Act (12 U.S.C. 1818) with respect to insured 
depository institutions. 
‘‘(c) SAFETY
AND SOUNDNESS STANDARDS.—The 
Director shall prescribe safety and soundness standards 
with respect to the enterprises and the Federal home loan 
banks pursuant to the same authority under section 39 
of the Federal Deposit Insurance Act (12 U.S.C. 1831s) 
and that shall have the same force and effect with respect 
to the enterprises and the Federal home loan banks as 
is provided under such section for safety and soundness 
standards prescribed by the appropriate Federal banking 
agencies for insured depository institutions.’’; and
(2) by striking the designation and heading for 
such subtitle and for part 1 of such subtitle and in-
serting the following: 
‘‘Subtitle A—Supervision and 
Regulation 
‘‘PART 1—ESTABLISHMENT OF REGULATOR’’. 
(b) CONFORMING AMENDMENTS TO HOUSING AND 
COMMUNITY DEVELOPMENT ACT OF 1992.—Title XIII of 
the Housing and Community Development Act of 1992 
is amended—
(1) in section 1361(f) (12 U.S.C. 4611(f)), by 
inserting ‘‘of the Treasury’’ after ‘‘Secretary’’; 
(2) in section 1367(c) (12 U.S.C. 4617(c)), by 
striking paragraph (1); and 
(3) by striking section 1383 (12 U.S.C. 1451 
note). 
(c) AMENDMENTS TO FEDERAL NATIONAL MORT-
GAGE ASSOCIATION CHARTER ACT.—The Federal Na-
tional Mortgage Association Charter Act (12 U.S.C. 1716 
et seq.) is amended by striking ‘‘Director of the Office of 
Federal Housing Enterprise Oversight of the Department 
of Housing and Urban Development’’ each place such 
term appears and inserting ‘‘Director of the Office of 
Housing Finance Oversight of the Department of the 
Treasury’’ in—
(1) section 303(c)(2) (12 U.S.C. 1718(c)(2)); 
(2) 
section 
309(d)(3)(B) 
(12 
U.S.C. 
1723a(d)(3)(B)); and 
(3) section 309(k)(1). 
(d) AMENDMENTS TO FEDERAL HOME LOAN MORT-
GAGE CORPORATION ACT.—The Federal Home Loan 
Mortgage Corporation Act is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ each 
place such term appears and inserting ‘‘Director of 
the Office of Housing Finance Oversight of the De-
partment of the Treasury’’ in—
(A) 
section 
303(b)(2) 
(12 
U.S.C. 
1452(b)(2)); 
(B) 
section 
303(h)(2) 
(12 
U.S.C. 
1452(h)(2)); and 
(C) 
section 
307(c)(1) 
(12 
U.S.C. 
1456(c)(1)); and 
(2) in section 306(i) (12 U.S.C. 1455(i))—
(A) by striking ‘‘section 1316(c)’’ and in-
serting ‘‘section 306(c)’’; and 
(B) by striking ‘‘section 106’’ and insert-
ing ‘‘section 1316’’.
(e) AMENDMENT
TO TITLE 18, UNITED STATES 
CODE.—Section 1905 of title 18, United States Code, is 
amended by striking ‘‘Office of Federal Housing Enter-
prise Oversight’’ and inserting ‘‘Office of Housing Finance 
Oversight of the Department of the Treasury’’. 
(f) AMENDMENTS TO FLOOD DISASTER PROTECTION 
ACT OF 1973.—Section 102(f)(3)(A) of the Flood Dis-
aster Protection Act of 1973 (42 U.S.C. 4012a) is amend-
ed by striking ‘‘Director of the Office of Federal Housing 
Enterprise Oversight of the Department of Housing and 
Urban Development’’ and inserting ‘‘Director of the Office 
of Housing Finance Oversight of the Department of the 
Treasury’’. 
SEC. 103. CHARTER COMPLIANCE OF ENTERPRISES. 
(a) AUTHORITY OF DIRECTOR.—Part 2 of subtitle A 
of title XIII of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4541 et seq.) is amended—
(1) by striking the designation and heading for 
the part and subpart A and inserting the following: 
‘‘PART 2—CHARTER COMPLIANCE AUTHORITY 
‘‘Subpart A—Authority of Director’’; 
(2) by striking section 1321 (12 U.S.C. 4541); 
(3) in section 1328—
(A) in the section heading, by striking ‘‘BY 
SECRETARY’’; and
(B) by striking ‘‘Banking, Finance and 
Urban Affairs’’ and inserting ‘‘Financial Serv-
ices’’; and 
(4) in subpart A, by striking ‘‘Secretary’’ each 
place such term appears (except in section 1324) 
and inserting ‘‘Director’’. 
(b) AUTHORITY OF SECRETARY OF HUD FOR HOUS-
ING GOALS.—
(1) IN GENERAL.—Section 1331 of the Housing 
and Community Development Act of 1992 (12 
U.S.C. 4561) is amended—
(A) in the first sentence of subsection (a), 
by inserting ‘‘of Housing and Urban Develop-
ment’’ after ‘‘The Secretary’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(d) DEFINITION.—For purposes of this part and 
subpart B, the term ‘Secretary’ means the Secretary of 
Housing and Urban Development.’’. 
(2) ANNUAL
REPORT
ON
HOUSING
GOALS.—
Section 1324 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4544) is amended 
by inserting ‘‘of Housing and Urban Development’’ 
after ‘‘Secretary’’, each place such term appears.
(c) AMENDMENTS TO FEDERAL NATIONAL MORT-
GAGE ASSOCIATION CHARTER ACT.—The Federal Na-
tional Mortgage Association Charter Act is amended—
(1) 
in 
section 
302(b)(6) 
(12 
U.S.C. 
1717(b)(6)), by striking ‘‘Secretary’’ and inserting 
‘‘Director of the Office of Housing Finance Over-
sight of the Department of the Treasury’’; 
(2) in section 309(m) (12 U.S.C. 1723a(m))—
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘Sec-
retary’’ the first place such term appears and 
inserting ‘‘Director of the Office of Housing Fi-
nance Oversight of the Department of the 
Treasury’’; and 
(B) by striking ‘‘Secretary’’ each other 
place such term appears and inserting ‘‘Direc-
tor’’; and 
(3) in section 309(n) (12 U.S.C. 1723a(n))—
(A) in paragraph (1)—
(i) by inserting ‘‘the Director of the 
Office of Housing Finance Oversight of the 
Department of the Treasury,’’ after ‘‘Sen-
ate,’’; and
(ii) by inserting ‘‘of Housing and 
Urban Development’’ after ‘‘Secretary’’; 
and 
(B) in paragraphs (2) and (3), by striking 
‘‘Secretary’’ each place such term appears, and 
inserting ‘‘Director’’. 
(d) AMENDMENTS TO FEDERAL HOME LOAN MORT-
GAGE CORPORATION ACT.—The Federal Home Loan 
Mortgage Corporation Act is amended—
(1) in section 305(c) (12 U.S.C. 1454(c)), by 
striking ‘‘Secretary’’ and inserting ‘‘Director of the 
Office of Housing Finance Oversight of the Depart-
ment of the Treasury’’; 
(2) in section 307(e) (12 U.S.C. 1456(e))—
(A) in paragraph (1), in the matter pre-
ceding subparagraph (A), by striking ‘‘Sec-
retary’’ the first place such term appears and 
inserting ‘‘Director of the Office of Housing Fi-
nance Oversight of the Department of the 
Treasury’’; and 
(B) by striking ‘‘Secretary’’ each other 
place such term appears and inserting ‘‘Direc-
tor’’; and 
(3) in section 307(f) (12 U.S.C. 1456(f))—
(A) in paragraph (1)—
(i) by inserting ‘‘the Director of the 
Office of Housing Finance Oversight of the 
Department of the Treasury,’’ after ‘‘Sen-
ate,’’; and 
(ii) by inserting ‘‘of Housing and 
Urban Development’’ after ‘‘Secretary’’; 
and 
(B) in paragraphs (2) and (3), by striking 
‘‘Secretary’’ each place such term appears, and 
inserting ‘‘Director’’. 
(e) AMENDMENTS
TO HOUSING
AND COMMUNITY 
DEVELOPMENT ACT OF 1980.—The Housing and Com-
munity Development Act of 1980 is amended—
(1) in section 330 (12 U.S.C. 1723a note)—
(A) by striking ‘‘Secretary of Housing and 
Urban Development or the Secretary of the 
Treasury’’ each place such term appears and 
inserting ‘‘Director of the Office of Housing Fi-
nance Oversight of the Department of the 
Treasury’’; and 
(B) by striking ‘‘, as the case may be,’’; 
and 
(2) in subsections (a)(2) and (b)(2) of section 
339 (12 U.S.C. 1717 note), by striking ‘‘Secretary 
of Housing and Urban Development’’ each place
such term appears and inserting ‘‘Director of the 
Office of Housing Finance Oversight of the Depart-
ment of the Treasury’’. 
(f) CONFORMING AMENDMENT.—Part 3 of subtitle A 
of title XIII of the Housing and Community Development 
Act of 1992 (Public Law 102–550; 106 Stat. 3969) is 
hereby repealed. 
SEC. 104. SUPERVISION OF FEDERAL HOME LOAN BANK 
SYSTEM. 
(a) FEDERAL HOME LOAN BANK ACT.—The Federal 
Home Loan Bank Act is amended—
(1) in section 2 (12 U.S.C. 1422), by striking 
paragraph (1) and inserting the following new para-
graph: 
‘‘(1) DIRECTOR.—The term ‘Director’ means 
the Director of the Office of Housing Finance Over-
sight of the Department of the Treasury established 
under title XIII of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4501 et seq.).’’; 
(2) by striking section 2A (12 U.S.C. 1422a) 
and inserting the following new section: 
‘‘SEC. 2A. SUPERVISION AND REGULATION OF BANKS. 
‘‘The Federal home loan banks shall, to the extent 
provided in title XIII of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4501 et seq.) and this
Act, be subject to the supervision and regulation of the 
Director of the Office of Housing Finance Oversight of 
the Department of the Treasury.’’; 
(3) in section 2B (12 U.S.C. 1422b)—
(A) in the section heading, by striking 
‘‘POWERS AND DUTIES’’ and inserting ‘‘EN-
FORCEMENT AUTHORITY OF DIRECTOR’’; 
(B) in subsection (a)—
(i) by striking all of the matter that 
precedes paragraph (1) and inserting the 
following: 
‘‘The Director shall have the following powers:’’; 
(ii) by striking paragraphs (3) and 
(4); and 
(iii) by redesignating paragraphs (5), 
(6), and (7) as paragraphs (3), (4), and 
(5), respectively; and 
(C) by striking subsections (b), (c), and 
(d); 
(4) in section 8, in the section heading, by 
striking ‘‘BY THE BOARD’’; 
(5) in section 21 (12 U.S.C. 1441)—
(A) in subsection (b), in the heading for 
paragraph (8), by striking ‘‘FEDERAL HOUSING
FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; 
and 
(B) in subsection (i), in the heading for 
paragraph (2), by striking ‘‘FEDERAL HOUSING 
FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; 
(6) in section 23 (12 U.S.C. 1443), by striking 
‘‘Board of Directors of the Federal Housing Finance 
Board’’ and inserting ‘‘Director’’; 
(7) by striking ‘‘the Finance Board’’ each place 
it appears and inserting ‘‘the Director’’; 
(8) by striking ‘‘Federal Housing Finance 
Board’’ each place it appears and inserting ‘‘Direc-
tor’’; 
(9) by striking ‘‘the Board’’ each place such 
term appears (except in subsections (a), (k)(2)(B)(i), 
and (n)(6)(C)(ii) of section 21A (12 U.S.C. 1441a), 
subsections (e)(7)(A) and (k)(7) of section 21B (12 
U.S.C. 1441b), and the first two places such term 
appears in section 22 (12 U.S.C. 1442)), and insert-
ing ‘‘the Director’’; 
(10) by striking ‘‘The Board’’ each place such 
term appears and inserting ‘‘The Director’’; 
(11) by striking ‘‘the Board’s’’ each place such 
term appears and inserting ‘‘the Director’s’’; and
(12) by striking ‘‘The Board’s’’ each place such 
term appears and inserting ‘‘The Director’s’’. 
(b) FINANCING CORPORATION.—The amendments 
made by this title shall not affect the appointment or term 
of any member, or of the chairperson, of the Directorate 
of the Financing Corporation who is serving on the date 
such amendments take effect. 
(c) REFERENCES TO FHFB.—Any reference in any 
Federal law enacted before the date of the enactment of 
this Act to the Federal Housing Finance Board shall be 
treated as referring to the Director of the Office of Hous-
ing Finance Oversight of the Department of the Treasury. 
(d) TECHNICAL AMENDMENT.—Section 111 of Pub-
lic Law 93–495 (12 U.S.C. 250) is amended by striking 
‘‘Federal Housing Finance Board’’ and inserting ‘‘Direc-
tor of the Office of Housing Finance Oversight of the De-
partment of the Treasury’’. 
SEC. 105. AMENDMENTS TO TITLE 5, UNITED STATES CODE. 
(a) EXECUTIVE
SCHEDULE
PAY
RATES.—Sub-
chapter II of chapter 53 of title 5, United States Code, 
is amended—
(1) in section 5313, by striking the item relat-
ing to the Director of the Office of Federal Housing 
Enterprise Oversight, Department of Housing and
Urban Development and inserting the following new 
item: 
‘‘Director of the Office of Housing Finance 
Oversight, Department of the Treasury.’’; 
(2) in section 5314, by striking the item relat-
ing to the Chairperson of the Federal Housing Fi-
nance Board; and 
(3) in section 5315, by striking the item relat-
ing to the Directors, Federal Housing Finance 
Board. 
(b) 
DEFINITION
OF
AGENCY.—Section 
3132(a)(1)(D) of title 5, United States Code, is amend-
ed—
(1) by striking ‘‘the Federal Housing Finance 
Board,’’; and 
(2) by striking ‘‘Office of Federal Housing En-
terprise Oversight of the Department of Housing 
and Urban Development’’ and inserting ‘‘Office of 
Housing Finance Oversight of the Department of 
the Treasury’’. 
SEC. 106. FINANCIAL INSTITUTIONS EXAMINATION COUN-
CIL. 
The Federal Financial Institutions Examination 
Council Act of 1978 is amended—
(1) in section 1003 (12 U.S.C. 3302)—
(A) in paragraph (1), by inserting ‘‘Direc-
tor of the Office of Housing Finance Oversight 
of the Department of the Treasury,’’ after ‘‘Su-
pervision,’’; and 
(B) in paragraph (3), by striking ‘‘or a 
credit union;’’ and inserting ‘‘a credit union, a 
Federal home loan bank, or an enterprise (as 
such term is defined in section 1303 of the 
Housing and Community Development Act of 
1992 (12 U.S.C. 4502)).’’; 
(2) in section 1004 (12 U.S.C. 3303)—
(A) in paragraph (4), by inserting a semi-
colon at the end; 
(B) by redesignating paragraph (5) as 
paragraph (6); and 
(C) by inserting after paragraph (4) the 
following new paragraph: 
‘‘(5) the Director of the Office of Housing Fi-
nance Oversight of the Department of the Treasury; 
and’’; and 
(3) in section 1006(d) (12 U.S.C. 3305(d)), by 
striking ‘‘and employees of the Federal Housing Fi-
nance Board’’.
SEC. 107. EFFECTIVE DATE. 
Except as specifically provided otherwise in this title, 
the amendments made by this title shall take effect on, 
and shall apply beginning on, the expiration of the 6-
month period beginning on the date of the enactment of 
this Act.
TITLE II—TRANSFER OF FUNC-
TIONS, 
PERSONNEL, 
AND 
PROPERTY 
SEC. 201. ABOLISHMENT OF OFHEO AND FEDERAL HOUS-
ING FINANCE BOARD. 
(a) IN GENERAL.—Effective upon the effective date 
under section 107, the following entities and positions are 
abolished: 
(1) The Office of Federal Housing Enterprise 
Oversight of the Department of Housing and Urban 
Development and the positions of the Director and 
Deputy Director of such Office. 
(2) The Federal Housing Finance Board, any 
Office within such Board (including the Office of Fi-
nance), and the Board of Directors of such Board. 
(b) DISPOSITION OF AFFAIRS.—
(1) IN GENERAL.—During the period beginning 
on the date of the enactment of this Act and ending 
on the effective date under section 107, the Director 
of the Office of Federal Housing Enterprise Over-
sight and the Chairperson of the Federal Housing 
Finance Board shall, solely for the purpose of wind-
ing up the affairs of the Office of Federal Housing 
Enterprise Oversight and the Federal Housing Fi-
nance Board, respectively—
(A) manage the employees of such Office 
and Board and provide for the payment of the 
compensation and benefits of any such em-
ployee which accrue before the effective date of 
the transfer of such employee pursuant to sec-
tion 203; and 
(B) take any other action necessary for the 
purpose of winding up the affairs of the Office 
and the Board. 
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by title I and the abolishment of 
the Office of Federal Housing Enterprise Oversight and 
the Federal Housing Finance Board under subsection (a) 
of this section may not be construed to affect the status 
of any employee of such Office or Board as employees of 
an agency of the United States for purposes of any other 
provision of law before the effective date of the transfer 
of any such employee pursuant to section 203. 
(d) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Director of the Office of 
Housing Finance Oversight of the Department of 
the Treasury may use the property of the Office of 
Federal Housing Enterprise Oversight and the Fed-
eral Housing Finance Board to perform functions 
which have been transferred to such Director for 
such time as is reasonable to facilitate the orderly 
transfer of functions transferred pursuant to any 
other provision of this Act or any amendment made 
by this Act to any other provision of law. 
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States 
(including any Federal home loan bank), and any 
successor to any such agency, department, or instru-
mentality, which was providing supporting services 
to the Office of Federal Housing Enterprise Over-
sight or the Federal Housing Finance Board before 
the expiration of the period under subsection (a) in 
connection with functions that are transferred to the 
Director of the Office of Housing Finance Oversight 
of the Department of the Treasury shall—
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable 
transition. 
(e) SAVINGS PROVISIONS RELATING TO FHFB.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of 
the United States, the Federal Housing Finance 
Board, or any other person, which—
(A) arises under or pursuant to the Fed-
eral Home Loan Bank Act or any other provi-
sion of law applicable with respect to such 
Board; and 
(B) existed on the day before the abolish-
ment under subsection (a) of this section. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Fed-
eral Housing Finance Board, or any Federal home 
loan bank with respect to any function of the Board 
which was delegated to employees of such bank, 
shall abate by reason of the enactment of this Act, 
except that the Director of the Office of Housing Fi-
nance Oversight of the Department of the Treasury 
shall be substituted for the Federal Housing Fi-
nance Board or the Federal home loan bank as a 
party to any such action or proceeding. 
(f) SAVINGS PROVISIONS RELATING TO OFHEO.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of 
the United States, the Director of the Office of Fed-
eral Housing Enterprise Oversight, or any other per-
son, which—
(A) arises under or pursuant to title XIII 
of the Housing and Community Development 
Act of 1992, the Federal National Mortgage 
Association Charter Act, the Federal Home 
Loan Mortgage Corporation Act, or any other 
provision of law applicable with respect to such 
Office; and 
(B) existed on the day before the abolish-
ment under subsection (a) of this section. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Di-
rector of the Office of Federal Housing Enterprise 
Oversight shall abate by reason of the enactment of 
this Act, except that the Director of the Office of 
Housing Finance Oversight of the Department of
the Treasury shall be substituted for the Director as 
a party to any such action or proceeding. 
SEC. 202. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
All regulations, orders, determinations, and resolu-
tions that—
(1) were issued, made, prescribed, or allowed to 
become effective by—
(A) the Office of Federal Housing Enter-
prise Oversight; 
(B) the Federal Housing Finance Board; 
(C) the Secretary of Housing and Urban 
Development and that relate to the Secretary’s 
authority under title XIII of the Housing and 
Community Development Act of 1992, the Fed-
eral National Mortgage Association Charter 
Act, or the Federal Home Loan Mortgage Cor-
poration Act; or 
(D) a court of competent jurisdiction and 
that relate to functions transferred by this Act; 
and 
(2) are in effect on the date of the abolishment 
under section 201(a) of this Act, 
shall remain in effect according to the terms of such regu-
lations, orders, determinations, and resolutions and shall
be enforceable by or against the Director of the Office of 
Housing Finance Oversight of the Department of the 
Treasury until modified, terminated, set aside, or super-
seded in accordance with applicable law by such Director, 
any court of competent jurisdiction, or operation of law. 
SEC. 203. TRANSFER AND RIGHTS OF EMPLOYEES OF ABOL-
ISHED AGENCIES. 
(a) TRANSFER.—Each employee of the Office of Fed-
eral Housing Enterprise Oversight and each employee of 
the Federal Housing Finance Board shall be transferred 
to the Office of Housing Finance Oversight of the Depart-
ment of the Treasury for employment no later than the 
date of the abolishment under section 201(a) of this Act 
and such transfer shall be deemed a transfer of function 
for the purpose of section 3503 of title 5, United States 
Code. 
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position 
with the same status, tenure, grade, and pay as that held 
on the day immediately preceding the transfer. Each such 
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation 
for 18 months after the date of transfer, except for cause 
or, if the employee is a temporary employee, separated in 
accordance with the terms of the appointment.
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND 
SENIOR EXECUTIVE SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service or the Sen-
ior Executive Service, any appointment authority es-
tablished pursuant to law or regulations of the Of-
fice of Personnel Management for filling such posi-
tions shall be transferred, subject to paragraph (2). 
(2) DECLINE OF TRANSFER.—The Director of 
the Office of Housing Finance Oversight of the De-
partment of the Treasury may decline a transfer of 
authority under paragraph (1) (and the employees 
appointed pursuant thereto) to the extent that such 
authority relates to positions excepted from the com-
petitive service because of their confidential, policy-
making, policy-determining, or policy-advocating 
character, and noncareer positions in the Senior Ex-
ecutive Service (within the meaning of section 
3132(a)(7) of title 5, United States Code). 
(d) REORGANIZATION.—If the Director of the Office 
of Housing Finance Oversight of the Department of the 
Treasury determines, after the end of the 1-year period 
beginning on the date the transfer of functions to such 
Office is completed, that a reorganization of the combined 
workforce is required, that reorganization shall be deemed
a major reorganization for purposes of affording affected 
employees retirement under section 8336(d)(2) or 
8414(b)(1)(B) of title 5, United States Code. 
(e) EMPLOYEE BENEFIT PROGRAMS.—Any employee 
accepting employment with the Office of Housing Finance 
Oversight of the Department of the Treasury as a result 
of such transfer may retain, for 18 months after the date 
such transfer occurs, membership in any employee benefit 
program of the Federal Housing Finance Board or the 
Office of Federal Housing Enterprise Oversight, as appli-
cable, including insurance, to which such employee belongs 
on the date of the abolishment under section 201(a) if—
(1) the employee does not elect to give up the 
benefit or membership in the program; and 
(2) the benefit or program is continued by the 
Director of the Office of Housing Finance Oversight.
The difference in the costs between the benefits which 
would have been provided by such agency or entity and 
those provided by this section shall be paid by the Director 
of the Office of Housing Finance Oversight. If any em-
ployee elects to give up membership in a health insurance 
program or the health insurance program is not continued 
by such Director, the employee shall be permitted to select 
an alternate Federal health insurance program within 30
days of such election or notice, without regard to any other 
regularly scheduled open season. 
(f) SENIOR EXECUTIVE SERVICE EMPLOYEES.—A 
transferring employee in the Senior Executive Service 
shall be placed in a comparable position at the agency or 
entity to which such employee is transferred. 
(g) NOTICE OF POSITIONS.—Transferring employees 
shall receive notice of their position assignments not later 
than 120 days after the effective date of their transfer. 
SEC. 204. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the abolishment under section 201(a), all prop-
erty of the Office of Federal Housing Enterprise Oversight 
and the Federal Housing Finance Board shall transfer to 
the Director of the Office of Housing Finance Oversight 
of the Department of the Treasury.
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