295
(1) include, among the alternatives to the cur-
rent secondary market system analyzed—
(A) repeal of the chartering Acts for the 
Federal National Mortgage Association and the 
Federal Home Loan Mortgage Corporation; 
(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 en-
tities, which shall include analyzing the terms 
on which such charters should be granted, in-
cluding 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 mone-
tary 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 
mortgage market system;
296
(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 
(4) examine how taxpayers would be impacted 
by each alternative system, including the complete 
privatization of the Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage 
Corporation. 
(c) REPORT.—The Director of the Federal Housing 
Finance Agency shall submit a report to the Congress on 
the study not later than the expiration of the 12-month 
period beginning on the effective date under section 185. 
SEC. 185. EFFECTIVE DATE. 
Except as specifically provided otherwise in this title, 
this title shall take effect on and 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—FEDERAL HOME LOAN 
BANKS 
SEC. 201. DEFINITIONS. 
Section 2 of the Federal Home Loan Bank Act (12 
U.S.C. 1422) is amended—
297
(1) by striking paragraphs (1), (10), and (11); 
(2) by redesignating paragraphs (2) through 
(9) as paragraphs (1) through (8), respectively; 
(3) by redesignating paragraphs (12) and (13) 
as paragraphs (9) and (10), respectively; and 
(4) by adding at the end the following: 
‘‘(11) DIRECTOR.—The term ‘Director’ means 
the Director of the Federal Housing Finance Agen-
cy. 
‘‘(12) AGENCY.—The term ‘Agency’ means the 
Federal Housing Finance Agency.’’. 
SEC. 202. DIRECTORS. 
(a) ELECTION.—Section 7 of the Federal Home Loan 
Bank Act (12 U.S.C. 1427) is amended—
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) NUMBER; ELECTION; QUALIFICATIONS; CON-
FLICTS OF INTEREST.—
‘‘(1) IN GENERAL.—The management of each 
Federal Home Loan Bank shall be vested in a board 
of 13 directors, or such other number as the Direc-
tor determines appropriate, each of whom shall be a 
citizen of the United States. All directors of a Bank 
who are not independent members pursuant to para-
graph (3) shall be elected by the members.
298
‘‘(2) MEMBER DIRECTORS.—A majority of the 
directors of each Bank shall be officers or directors 
of a member of such Bank that is located in the dis-
trict in which such Bank is located. 
‘‘(3) INDEPENDENT DIRECTORS.—At least two-
fifths of the directors of each Bank shall be inde-
pendent directors, who shall be appointed by the Di-
rector of the Federal Housing Finance Agency from 
a list of individuals recommended made by the 
Housing Finance Oversight Board, and shall meet 
the following criteria: 
‘‘(A) IN GENERAL.—Each independent di-
rector shall be a bona fide resident of the dis-
trict in which such Bank is located. 
‘‘(B) PUBLIC
INTEREST
DIRECTORS.—At 
least 2 of the independent directors under this 
paragraph of each Bank shall be representatives 
chosen from organizations with more than a 2-
year history of representing consumer or com-
munity interests on banking services, credit 
needs, housing, community development, eco-
nomic development, or financial consumer pro-
tections. 
‘‘(C) OTHER
DIRECTORS.—Each inde-
pendent director that is not a public interest di-
299
rector under subparagraph (B) shall have dem-
onstrated knowledge of, or experience in, finan-
cial management, auditing and accounting, risk 
management practices, derivatives, project de-
velopment, or organizational management, or 
such other knowledge or expertise as the Direc-
tor may provide by regulation. 
‘‘(D) CONFLICTS OF INTEREST.—Notwith-
standing subsection (f)(2), an independent di-
rector under this paragraph of a Bank may not, 
during such director’s term of office, serve as 
an officer of any Federal Home Loan Bank or 
as a director or officer of any member of a 
Bank.’’; 
(2) in the first sentence of subsection (b), by 
striking ‘‘directorship’’ and inserting ‘‘member direc-
torship pursuant to subsection (a)(2)’’; 
(3) in subsection (c), by striking the second, 
third, and fifth sentences; and 
(4) by striking ‘‘elective’’ each place such term 
appears (except in subsections (e) and (f)). 
(b) TERMS.—
(1) IN GENERAL.—Section 7(d) of the Federal 
Home Loan Bank Act (12 U.S.C. 1427(i)) is 
amended—
300
(A) in the first sentence, by striking ‘‘3 
years’’ and inserting ‘‘4 years’’; and 
(B) in the second sentence—
(i) by striking ‘‘Federal Home Loan 
Bank System Modernization Act of 1999’’ 
and inserting ‘‘Federal Housing Finance 
Reform Act of 2005’’; and 
(ii) by striking ‘‘1/3’’ and inserting 
‘‘1/4’’. 
(2) SAVINGS
PROVISION.—The amendments 
made by paragraph (1) shall not apply to the term 
of office of any director of a Federal home loan bank 
who is serving as of the effective date of this Act 
under section 211, including any director elected to 
fill a vacancy in any such office. 
(c) CONTINUED SERVICE OF INDEPENDENT DIREC-
TORS AFTER EXPIRATION OF TERM.—Section 7(f)(2) of 
the Federal Home Loan Bank Act (12 U.S.C. 1427(f)(2)) 
is amended—
(1) in the second sentence, by striking ‘‘or the 
term of such office expires, whichever comes first’’; 
and 
(2) by adding at the end the following new sen-
tence: ‘‘An appointive Bank director may continue to
301
serve as a director after the expiration of the term 
of such director until a successor is appointed.’’. 
(d) COMPENSATION.—Subsection (i) of section 7 of 
the Federal Home Loan Bank Act (12 U.S.C. 1427(i)) 
is amended to read as follows: 
‘‘(i) DIRECTORS’ COMPENSATION.—
‘‘(1) IN GENERAL.—Each Federal home loan 
bank may pay the directors on the board of directors 
for the bank reasonable and appropriate compensa-
tion for the time required of such directors, and rea-
sonable and appropriate expenses incurred by such 
directors, in connection with service on the board of 
directors, in accordance with resolutions adopted by 
the board of directors and subject to the approval of 
the Director. 
‘‘(2) ANNUAL REPORT BY THE BOARD.—The 
Director shall include, in the annual report sub-
mitted to the Congress pursuant to section 1319B of 
the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992, information regarding 
the compensation and expenses paid by the Federal 
home loan banks to the directors on the boards of 
directors of the banks.’’. 
(e) TRANSITION RULE.—Any member of the board 
of directors of a Federal Home Loan Bank serving as of
302
the effective date under section 211 may continue to serve 
as a member of such board of directors for the remainder 
of the term of such office as provided in section 7 of the 
Federal Home Loan Bank Act, as in effect before such 
effective date. 
SEC. 203. FEDERAL HOUSING FINANCE AGENCY OVER-
SIGHT OF FEDERAL HOME LOAN BANKS. 
The Federal Home Loan Bank Act (12 U.S.C. 1421 
et seq.), other than in provisions of that Act added or 
amended otherwise by this Act, is amended—
(1) by striking sections 2A and 2B (12 U.S.C. 
1422a, 1422b); 
(2) in section 6 (12 U.S.C. 1426(b)(1))—
(A) in subsection (b)(1), in the matter pre-
ceding subparagraph (A), by striking ‘‘Finance 
Board approval’’ and inserting ‘‘approval by the 
Director’’; and 
(B) in each of subsections (c)(4)(B) and 
(d)(2), by striking ‘‘Finance Board regulations’’ 
each place that term appears and inserting 
‘‘regulations of the Director’’; 
(3) in section 8 (12 U.S.C. 1428), in the sec-
tion heading, by striking ‘‘BY THE BOARD’’; 
(4) in section 10(b) (12 U.S.C. 1430), by strik-
ing ‘‘by formal resolution’’;
303
(5) in section 11 (12 U.S.C. 1431)—
(A) in subsection (b)—
(i) in the first sentence—
(I) by striking ‘‘The Board’’ and 
inserting ‘‘The Office of Finance, as 
agent for the Banks,’’; and 
(II) by striking ‘‘the Board’’ and 
inserting ‘‘such Office’’; and 
(ii) in the second and fourth sen-
tences, by striking ‘‘the Board’’ each place 
such term appears and inserting ‘‘the Of-
fice of Finance’’; 
(B) in subsection (c)—
(i) by striking ‘‘the Board’’ the first 
place such term appears and inserting ‘‘the 
Office of Finance, as agent for the 
Banks,’’; and 
(ii) by striking ‘‘the Board’’ the sec-
ond place such term appears and inserting 
‘‘such Office’’; and 
(C) in subsection (f)—
(i) by striking the two commas after 
‘‘permit’’ and inserting ‘‘or’’; and 
(ii) by striking the comma after ‘‘re-
quire’’;
304
(6) in section 15 (12 U.S.C. 1435), by inserting 
‘‘or the Director’’ after ‘‘the Board’’; 
(7) in section 18 (12 U.S.C. 1438), by striking 
subsection (b); 
(8) in section 21 (12 U.S.C. 1441)—
(A) in subsection (b)—
(i) in paragraph (5), by striking 
‘‘Chairperson of the Federal Housing Fi-
nance Board’’ and inserting ‘‘Director’’; 
and 
(ii) 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’’; 
(9) in section 23 (12 U.S.C. 1443), by striking 
‘‘Board of Directors of the Federal Housing Finance 
Board’’ and inserting ‘‘Director’’; 
(10) by striking ‘‘the Board’’ each place such 
term appears in such Act (except in section 15 (12 
U.S.C. 
1435), 
section 
21(f)(2) 
(12 
U.S.C. 
1441(f)(2)), 
subsections 
(a), 
(k)(2)(B)(i), 
and 
(n)(6)(C)(ii) of section 21A (12 U.S.C. 1441a), sub-
sections (e)(7), (f)(2)(C), and (k)(7)(B)(ii) of section
305
21B (12 U.S.C. 1441b), and the first two places 
such term appears in section 22 (12 U.S.C. 1442)) 
and inserting ‘‘the Director’’; 
(11) by striking ‘‘The Board’’ each place such 
term appears in such Act (except in sections 7(e) 
(12 U.S.C. 1427(e)), and 11(b) (12 U.S.C. 1431(b)) 
and inserting ‘‘The Director’’; 
(12) by striking ‘‘the Board’s’’ each place such 
term appears in such Act and inserting ‘‘the Direc-
tor’s’’; 
(13) by striking ‘‘The Board’s’’ each place such 
term appears in such Act and inserting ‘‘The Direc-
tor’s’’; 
(14) by striking ‘‘The Finance Board’’ each 
place such term appears in such Act and inserting 
‘‘The Director’’; 
(15) by striking ‘‘the Finance Board’’ each 
place such term appears in such Act and inserting 
‘‘the Director’’; 
(16) by striking ‘‘Federal Housing Finance 
Board’’ each place such term appears and inserting 
‘‘Director’’; 
(17) in section 11(i) (12 U.S.C. 1431(i), by 
striking ‘‘the Chairperson of’’; and
306
(18) in section 21(e)(9) (12 U.S.C. 1441(e)(9)), 
by striking ‘‘Chairperson of the’’. 
SEC. 204. JOINT ACTIVITIES OF BANKS. 
Section 11 of the Federal Home Loan Bank Act (12 
U.S.C. 1431) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(l) JOINT ACTIVITIES.—Subject to the regulation of 
the Director, any two or more Federal Home Loan Banks 
may establish a joint office for the purpose of performing 
functions for, or providing services to, the Banks on a 
common or collective basis, or may require that the Office 
of Finance perform such functions or services, but only 
if the Banks are otherwise authorized to perform such 
functions or services individually.’’. 
SEC. 205. SHARING OF INFORMATION BETWEEN FEDERAL 
HOME LOAN BANKS. 
(a) IN GENERAL.— The Federal Home Loan Bank 
Act is amended by inserting after section 20 (12 U.S.C. 
1440) the following new section: 
‘‘SEC. 20A. SHARING OF INFORMATION BETWEEN FEDERAL 
HOME LOAN BANKS. 
‘‘(a) REGULATORY AUTHORITY.—The Director shall 
prescribe such regulations as may be necessary to ensure 
that each Federal Home Loan Bank has access to infor-
307
mation that the Bank needs to determine the nature and 
extent of its joint and several liability. 
‘‘(b) NO WAIVER OF PRIVILEGE.—The Director shall 
not be deemed to have waived any privilege applicable to 
any information concerning a Federal Home Loan Bank 
by transferring, or permitting the transfer of, that infor-
mation to any other Federal Home Loan Bank for the 
purpose of enabling the recipient to evaluate the nature 
and extent of its joint and several liability.’’. 
(b) REGULATIONS.—The regulations required under 
the amendment made by subsection (a) shall be issued in 
final form not later than 6 months after the effective date 
under section 211 of this Act. 
SEC. 206. REORGANIZATION OF BANKS AND VOLUNTARY 
MERGER. 
Section 26 of the Federal Home Loan Bank Act (12 
U.S.C. 1446) is amended—
(1) by inserting ‘‘(a) REORGANIZATION.—’’ be-
fore ‘‘Whenever’’; and 
(2) by striking ‘‘liquidated or’’ each place such 
phrase appears; 
(3) by striking ‘‘liquidation or’’; and 
(4) by adding at the end the following new sub-
section:
308
‘‘(b) VOLUNTARY MERGERS.—Any Bank may, with 
the approval of the Director, and the approval of the 
boards of directors of the Banks involved, merge with an-
other Bank. The Director shall promulgate regulations es-
tablishing the conditions and procedures for the consider-
ation and approval of any such voluntary merger, includ-
ing the procedures for Bank member approval.’’. 
SEC. 207. SECURITIES AND EXCHANGE COMMISSION DIS-
CLOSURE. 
(a) IN GENERAL.—The Federal Home Loan Banks 
shall be exempt from compliance with—
(1) sections 13(e), 14(a), 14(c), and 17A of the 
Securities Exchange Act of 1934 and related Com-
mission regulations; and 
(2) section 15 of that Act and related Securities 
and Exchange Commission regulations with respect 
to transactions in capital stock of the Banks. 
(b) MEMBER EXEMPTION.—The members of the 
Federal Home Loan Banks shall be exempt from compli-
ance with sections 13(d), 13(f), 13(g), 14(d), and 16 of 
the Securities Exchange Act of 1934 and related Securi-
ties and Exchange Commission regulations with respect 
to their ownership of, or transactions in, capital stock of 
the Federal Home Loan Banks. 
(c) EXEMPTED AND GOVERNMENT SECURITIES.—
309
(1) CAPITAL STOCK.—The capital stock issued 
by each of the Federal Home Loan Banks under 
section 6 of the Federal Home Loan Bank Act are—
(A) exempted securities within the mean-
ing of section 3(a)(2) of the Securities Act of 
1933; and 
(B) ‘‘exempted securities’’ within the 
meaning of section 3(a)(12)(A) of the Securities 
Exchange Act of 1934. 
(2) OTHER
OBLIGATIONS.—The debentures, 
bonds, and other obligations issued under section 11 
of the Federal Home Loan Bank Act are—
(A) exempted securities within the mean-
ing of section 3(a)(2) of the Securities Act of 
1933; 
(B) ‘‘government securities’’ within the 
meaning of section 3(a)(42) of the Securities 
Exchange Act of 1934; 
(C) excluded from the definition of ‘‘gov-
ernment securities broker’’ within section 
3(a)(43) of the Securities Exchange Act of 
1934; 
(D) excluded from the definition of ‘‘gov-
ernment 
securities 
dealer’’ 
within 
section
310
3(a)(44) of the Securities Exchange Act of 
1934; and 
(E) ‘‘government securities’’ within the 
meaning of section 2(a)(16) of the Investment 
Company Act of 1940. 
(d) 
EXEMPTION
FROM
REPORTING
REQUIRE-
MENTS.—The Federal Home Loan Banks shall be exempt 
from periodic reporting requirements pertaining to—
(1) the disclosure of related party transactions 
that occur in the ordinary course of business of the 
Banks with their members; and 
(2) the disclosure of unregistered sales of equity 
securities. 
(e) TENDER OFFERS.—The Securities and Exchange 
Commission’s rules relating to tender offers shall not 
apply in connection with transactions in capital stock of 
the Federal Home Loan Banks. 
(f) REGULATIONS.—In issuing final regulations to 
implement provisions of this section, the Securities and 
Exchange Commission shall consider the distinctive char-
acteristics of the Federal Home Loan Banks when evalu-
ating the accounting treatment with respect to the pay-
ment to Resolution Funding Corporation, the role of the 
combined financial statements of the twelve Banks, the ac-
counting classification of redeemable capital stock, and the
311
accounting treatment related to the joint and several na-
ture of the obligations of the Banks. 
SEC. 208. COMMUNITY FINANCIAL INSTITUTION MEMBERS. 
(a) TOTAL ASSET REQUIREMENT.—Paragraph (10) 
of section 2 of the Federal Home Loan Bank Act (12 
U.S.C. 1422(10)), as so redesignated by section 201(3) 
of this Act, is amended by striking ‘‘$500,000,000’’ each 
place such term appears and inserting ‘‘$1,000,000,000’’. 
(b) USE OF ADVANCES FOR COMMUNITY DEVELOP-
MENT ACTIVITIES.—Section 10(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1430(a)) is amended—
(1) in paragraph (2)(B)—
(A) by striking ‘‘and’’; and 
(B) by inserting ‘‘, and community devel-
opment activities’’ before the period at the end; 
(2) in paragraph (3)(E), by inserting ‘‘or com-
munity development activities’’ after ‘‘agriculture,’’; 
and 
(3) in paragraph (6)—
(A) by striking ‘‘and’’; and 
(B) by inserting ‘‘, and ‘community devel-
opment activities’ ’’ before ‘‘shall’’.
312
SEC. 209. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) RIGHT TO FINANCIAL PRIVACY ACT OF 1978.—
Section 1113(o) of the Right to Financial Privacy Act of 
1978 (12 U.S.C. 3413(o)) is amended—
(1) by striking ‘‘Federal Housing Finance 
Board’’ and inserting ‘‘Federal Housing Finance 
Agency’’; and 
(2) by striking ‘‘Federal Housing Finance 
Board’s’’ and inserting ‘‘Federal Housing Finance 
Agency’s’’. 
(b) RIEGLE COMMUNITY DEVELOPMENT AND REGU-
LATORY IMPROVEMENT ACT OF 1994.—Section 117(e) of 
the Riegle Community Development and Regulatory Im-
provement Act of 1994 (12 U.S.C. 4716(e)) is amended 
by striking ‘‘Federal Housing Finance Board’’ and insert-
ing ‘‘Federal Housing Finance Agency’’. 
(c) TITLE 18, UNITED STATES CODE.—Title 18, 
United States Code, is amended by striking ‘‘Federal 
Housing Finance Board’’ each place such term appears 
in each of sections 212, 657, 1006, 1014, and inserting 
‘‘Federal Housing Finance Agency’’. 
(d) MAHRA ACT OF 1997.—Section 517(b)(4) of the 
Multifamily Assisted Housing Reform and Affordability 
Act of 1997 (42 U.S.C. 1437f note) is amended by strik-
ing ‘‘Federal Housing Finance Board’’ and inserting 
‘‘Federal Housing Finance Agency’’.
313
(e) TITLE 44, UNITED STATES CODE.—Section 
3502(5) of title 44, United States Code, is amended by 
striking ‘‘Federal Housing Finance Board’’ and inserting 
‘‘Federal Housing Finance Agency’’. 
(f) ACCESS TO LOCAL TV ACT OF 2000.—Section 
1004(d)(2)(D)(iii) of the Launching Our Communities’ 
Access to Local Television Act of 2000 (47 U.S.C. 
1103(d)(2)(D)(iii)) is amended by striking ‘‘Office of Fed-
eral Housing Enterprise Oversight, the Federal Housing 
Finance Board’’ and inserting ‘‘Federal Housing Finance 
Agency’’. 
SEC. 210. STUDY OF AFFORDABLE HOUSING PROGRAM USE 
FOR LONG-TERM CARE FACILITIES. 
The Comptroller General shall conduct a study of the 
use of affordable housing programs of the Federal home 
loan banks under section 10(j) of the Federal Home Loan 
Bank Act to determine how and the extent to which such 
programs are used to assist long-term care facilities for 
low- and moderate-income individuals, and the effective-
ness and adequacy of such assistance in meeting the needs 
of affected communities. The study shall examine the ap-
plicability of such use to the affordable housing programs 
required to be established by the enterprises pursuant to 
the amendment made by section 128 of this Act. The 
Comptroller General shall submit a report to the Director
314
of the Federal Housing Finance Agency and the Congress 
regarding the results of the study not later than the expi-
ration of the 1-year period beginning on the date of the 
enactment of this Act. This section shall take effect on 
the date of the enactment of this Act. 
SEC. 211. EFFECTIVE DATE. 
Except as specifically provided otherwise in this title, 
this title shall take effect on and 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 III—TRANSFER OF FUNC-
TIONS, 
PERSONNEL, 
AND 
PROPERTY 
OF 
OFFICE 
OF 
FEDERAL 
HOUSING 
ENTER-
PRISE OVERSIGHT, FEDERAL 
HOUSING 
FINANCE 
BOARD, 
AND DEPARTMENT OF HOUS-
ING AND URBAN DEVELOP-
MENT 
Subtitle A—Office of Federal 
Housing Enterprise Oversight 
SEC. 301. ABOLISHMENT OF OFHEO. 
(a) IN GENERAL.—Effective at the end of the 6-
month period beginning on the date of the enactment of
315
this Act, the Office of Federal Housing Enterprise Over-
sight of the Department of Housing and Urban Develop-
ment and the positions of the Director and Deputy Direc-
tor of such Office are abolished. 
(b) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of the enactment of this Act, 
the Director of the Office of Federal Housing Enterprise 
Oversight shall, for the purpose of winding up the affairs 
of the Office of Federal Housing Enterprise Oversight and 
in addition to carrying out its other responsibilities under 
law—
(1) manage the employees of such Office and 
provide for the payment of the compensation and 
benefits of any such employee which accrue before 
the effective date of the transfer of such employee 
pursuant to section 303; and 
(2) may take any other action necessary for the 
purpose of winding up the affairs of the Office. 
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by title I and the abolishment of 
the Office of Federal Housing Enterprise Oversight under 
subsection (a) of this section may not be construed to af-
fect the status of any employee of such Office as employ-
ees of an agency of the United States for purposes of any
316
other provision of law before the effective date of the 
transfer of any such employee pursuant to section 303. 
(d) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of 
the Office of Federal Housing Enterprise Oversight 
to perform functions which have been transferred to 
the Director of the Federal Housing Finance Agency 
for such time as is reasonable to facilitate the or-
derly 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, 
and any successor to any such agency, department, 
or instrumentality, which was providing supporting 
services to the Office of Federal Housing Enterprise 
Oversight before the expiration of the period under 
subsection (a) in connection with functions that are 
transferred to the Director of the Federal Housing 
Finance Agency shall—
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and
317
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable 
transition. 
(e) SAVINGS PROVISIONS.—
(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 the title 
XIII of the Housing and Community Develop-
ment Act of 1992, the Federal National Mort-
gage 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 in connection with functions that are 
transferred to the Director of the Federal Housing 
Finance Agency shall abate by reason of the enact-
318
ment of this Act, except that the Director of the 
Federal Housing Finance Agency shall be sub-
stituted for the Director of the Office of Federal 
Housing Enterprise Oversight as a party to any 
such action or proceeding. 
SEC. 302. 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; or 
(B) a court of competent jurisdiction and 
that relate to functions transferred by this sub-
title; and 
(2) are in effect on the date of the abolishment 
under section 301(a) of this Act, shall remain in ef-
fect according to the terms of such regulations, or-
ders, determinations, and resolutions, and shall be 
enforceable by or against the Director of the Federal 
Housing Finance Agency until modified, terminated, 
set aside, or superseded in accordance with applica-
ble law by such Director, as the case may be, any 
court of competent jurisdiction, or operation of law.
319
SEC. 303. TRANSFER AND RIGHTS OF EMPLOYEES OF 
OFHEO. 
(a) TRANSFER.—Each employee of the Office of Fed-
eral Housing Enterprise Oversight shall be transferred to 
the Federal Housing Finance Agency for employment no 
later than the date of the abolishment under section 
301(a) of this Act and such transfer shall be deemed a 
transfer of function for purposes 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 12 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 
SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service, any ap-
pointment authority established pursuant to law or 
regulations of the Office of Personnel Management 
for filling such positions shall be transferred, subject 
to paragraph (2).
320
(2) DECLINE OF TRANSFER.—The Director of 
the Federal Housing Finance Agency 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 competitive service because of their con-
fidential, policy-making, policy-determining, or pol-
icy-advocating character. 
(d) REORGANIZATION.—If the Director of the Fed-
eral Housing Finance Agency determines, after the end 
of the 1-year period beginning on the date of the abolish-
ment under section 301(a), that a reorganization of the 
combined work force is required, that reorganization shall 
be deemed a major reorganization for purposes of afford-
ing 
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 
of the Office of Federal Housing Enterprise Oversight ac-
cepting employment with the Director of the Federal 
Housing Finance Agency as a result of a transfer under 
subsection (a) may retain for 12 months after the date 
such transfer occurs membership in any employee benefit 
program of the Federal Housing Finance Agency or the 
Office of Federal Housing Enterprise Oversight, as appli-
321
cable, including insurance, to which such employee belongs 
on the date of the abolishment under section 301(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 Federal Housing Finance Agency, 
The difference in the costs between the benefits which 
would have been provided by such agency and those pro-
vided by this section shall be paid by the Director of the 
Federal Housing Finance Agency. If any employee elects 
to give up membership in a health insurance program or 
the health insurance program is not continued by such Di-
rector, the employee shall be permitted to select an alter-
nate Federal health insurance program within 30 days of 
such election or notice, without regard to any other regu-
larly scheduled open season. 
SEC. 304. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the abolishment under section 301(a), all prop-
erty of the Office of Federal Housing Enterprise Oversight 
shall transfer to the Director of the Federal Housing Fi-
nance Agency.
322
Subtitle B—Federal Housing 
Finance Board 
SEC. 321. ABOLISHMENT OF THE FEDERAL HOUSING FI-
NANCE BOARD. 
(a) IN GENERAL.—Effective at the end of the 6-
month period beginning on the date of enactment of this 
Act, the Federal Housing Finance Board (in this title re-
ferred to as the ‘‘Board’’) is abolished. 
(b) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of enactment of this Act, the 
Board, for the purpose of winding up the affairs of the 
Board and in addition to carrying out its other responsibil-
ities under law—
(1) shall manage the employees of such Board 
and provide for the payment of the compensation 
and benefits of any such employee which accrue be-
fore the effective date of the transfer of such em-
ployee under section 323; and 
(2) may take any other action necessary for the 
purpose of winding up the affairs of the Board. 
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by titles I and II and the abolish-
ment of the Board under subsection (a) may not be con-
strued to affect the status of any employee of such Board 
as employees of an agency of the United States for pur-