453 
vestment and Affordable Housing Programs, respectively, 
and contribute to the Affordable Housing Program, shall 
be enforceable by the Director with respect to the Banks in 
the same manner and to the same extent as the housing 
goals under subpart B of part 2 of subtitle A of title XIII 
of the Housing and Community Development Act of 1992 
(12 U.S.C. 4561 et seq.) are enforceable under section 1336 
of such Act with respect to the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Corpora-
tion.’’; 
(6) 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 sentences, 
by striking ‘‘the Board’’ each place such 
term appears and inserting ‘‘the Office of 
Finance’’; 
(B) in subsection (c)— 
(i) by striking ‘‘the Board’’ the first 
place such term appears and inserting ‘‘the
454 
Office of Finance, as agent for the Banks,’’; 
and 
(ii) by striking ‘‘the Board’’ the second 
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’’; 
(7) in section 15 (12 U.S.C. 1435), by inserting 
‘‘or the Director’’ after ‘‘the Board’’; 
(8) in section 18 (12 U.S.C. 1438), by striking 
subsection (b); 
(9) 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
455 
(B) in subsection (i), in the heading for 
paragraph (2), by striking ‘‘FEDERAL HOUSING 
FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; 
(10) in section 23 (12 U.S.C. 1443), by striking 
‘‘Board of Directors of the Federal Housing Finance 
Board’’ and inserting ‘‘Director’’; 
(11) 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 sec-
tion 21A (12 U.S.C. 1441a), subsections (f)(2)(C), 
and (k)(7)(B)(ii) 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 inserting ‘‘the Director’’; 
(12) 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’’; 
(13) by striking ‘‘the Board’s’’ each place such 
term appears in such Act and inserting ‘‘the Direc-
tor’s’’; 
(14) by striking ‘‘The Board’s’’ each place such 
term appears in such Act and inserting ‘‘The Direc-
tor’s’’;
456 
(15) by striking ‘‘the Finance Board’’ each place 
such term appears in such Act and inserting ‘‘the Di-
rector’’; 
(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 
(18) in section 21(e)(9) (12 U.S.C. 1441(e)(9)), 
by striking ‘‘Chairperson of the’’. 
SEC. 374. 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 following 
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 com-
mon 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.’’.
457 
SEC. 375. 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 informa-
tion 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 informa-
tion 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 381 of this title.
460 
(B) ‘‘government securities’’ within the 
meaning of section 3(a)(42) of the Securities Ex-
change Act of 1934; 
(C) excluded from the definition of ‘‘govern-
ment securities broker’’ within section 3(a)(43) 
of the Securities Exchange Act of 1934; 
(D) excluded from the definition of ‘‘govern-
ment securities dealer’’ within section 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 REQUIREMENTS.— 
The Federal Home Loan Banks shall be exempt from peri-
odic 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 Fed-
eral Home Loan Banks.
461 
(f) REGULATIONS.—In issuing any final regulations 
to implement provisions of this section, the Securities and 
Exchange Commission shall consider the distinctive charac-
teristics of the Federal Home Loan Banks when evaluating 
the accounting treatment with respect to the payment to 
Resolution Funding Corporation, the role of the combined 
financial statements of the twelve Banks, the accounting 
classification of redeemable capital stock, and the account-
ing treatment related to the joint and several nature of the 
obligations of the Banks. 
SEC. 378. 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 371(3) of this title, 
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 develop-
ment activities’’ before the period at the end;
462 
(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’’. 
SEC. 379. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) RIGHT TO FINANCIAL PRIVACY ACT OF 1978.—Sec-
tion 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 Improve-
ment Act of 1994 (12 U.S.C. 4716(e)) is amended by strik-
ing ‘‘Federal Housing Finance Board’’ and inserting ‘‘Fed-
eral Housing Finance Agency’’. 
(c) TITLE 18, UNITED STATES CODE.—Title 18, 
United States Code, is amended by striking ‘‘Federal Hous-
463 
ing 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 striking 
‘‘Federal Housing Finance Board’’ and inserting ‘‘Federal 
Housing Finance Agency’’. 
(e) TITLE
44, UNITED
STATES
CODE.—Section 
3502(5) of title 44, United States Code, is amended by strik-
ing ‘‘Federal Housing Finance Board’’ and inserting ‘‘Fed-
eral Housing Finance Agency’’. 
(f) ACCESS TO LOCAL TV ACT OF 2000.—Section 
1004(d)(2)(D)(iii) of the Launching Our Communities’ Ac-
cess 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 Fi-
nance Board’’ and inserting ‘‘Federal Housing Finance 
Agency’’. 
(g) 
SARBANES-OXLEY
ACT
OF
2002.—Section 
105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7215(B)(5)(b)(ii)(II)) is amended by inserting ‘‘and 
the Director of the Federal Housing Finance Agency’’ after 
‘‘Commission,’’.
464 
SEC. 380. 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 mod-
erate-income individuals, and the effectiveness and ade-
quacy of such assistance in meeting the needs of affected 
communities. The study shall examine the applicability of 
such use to the affordable housing fund required to be estab-
lished by the Director of the Federal Housing Finance 
Agency pursuant to the amendment made by section 340 
of this title. The Comptroller General shall submit a report 
to the Director of the Federal Housing Finance Agency and 
the Congress regarding the results of the study not later 
than the expiration 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. 381. EFFECTIVE DATE. 
Except as specifically provided otherwise in this sub-
title, this subtitle shall take effect on and the amendments 
made by this subtitle shall take effect on, and shall apply 
beginning on, the expiration of the 6-month period begin-
ning on the date of the enactment of this Act.
465 
Subtitle C—Transfer of Functions, 
Personnel, and Property of Of-
fice of Federal Housing Enter-
prise Oversight, Federal Housing 
Finance Board, and Department 
of Housing and Urban Develop-
ment 
CHAPTER 1—OFFICE OF FEDERAL 
HOUSING ENTERPRISE OVERSIGHT 
SEC. 385. ABOLISHMENT OF OFHEO. 
(a) IN GENERAL.—Effective at the end of the 6-month 
period beginning on the date of the enactment of this Act, 
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 
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 pro-
vide for the payment of the compensation and benefits
466 
of any such employee which accrue before the effective 
date of the transfer of such employee pursuant to sec-
tion 387; 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 subtitle A and the abolishment of the 
Office of Federal Housing Enterprise Oversight under sub-
section (a) of this section may not be construed to affect 
the status of any employee of such Office 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 387. 
(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 orderly 
transfer of functions transferred pursuant to any 
other provision of this title or any amendment made 
by this title to any other provision of law. 
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States,
467 
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 Fi-
nance Agency 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 coordi-
nate and facilitate a prompt and reasonable 
transition. 
(e) SAVINGS PROVISIONS.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not affect 
the validity of any right, duty, or obligation of the 
United States, the Director of the Office of Federal 
Housing Enterprise Oversight, or any other person, 
which— 
(A) arises under or pursuant to the title 
XIII of the Housing and Community Develop-
ment Act of 1992, the Federal National Mortgage 
Association Charter Act, the Federal Home Loan 
Mortgage Corporation Act, or any other provi-
468 
sion of law applicable with respect to such Of-
fice; 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 Direc-
tor of the Office of Federal Housing Enterprise Over-
sight in connection with functions that are trans-
ferred to the Director of the Federal Housing Finance 
Agency shall abate by reason of the enactment of this 
title, except that the Director of the Federal Housing 
Finance Agency shall be substituted for the Director 
of the Office of Federal Housing Enterprise Oversight 
as a party to any such action or proceeding. 
SEC. 386. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
All regulations, orders, determinations, and resolutions 
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 chap-
ter; and
469 
(2) are in effect on the date of the abolishment 
under section 385(a) of this title, shall remain in ef-
fect according to the terms of such regulations, orders, 
determinations, and resolutions, and shall be enforce-
able by or against the Director of the Federal Hous-
ing Finance Agency until modified, terminated, set 
aside, or superseded in accordance with applicable 
law by such Director, as the case may be, any court 
of competent jurisdiction, or operation of law. 
SEC. 387. 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 385(a) 
of this title 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,
470 
if the employee is a temporary employee, separated in ac-
cordance with the terms of the appointment. 
(c) APPOINTMENT AUTHORITY FOR EXCEPTED SERV-
ICE EMPLOYEES.— 
(1) IN GENERAL.—In the case of employees occu-
pying positions in the excepted service, any appoint-
ment authority established pursuant to law or regula-
tions of the Office of Personnel Management for filling 
such positions shall be transferred, subject to para-
graph (2). 
(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 confidential, 
policy-making, policy-determining, or policy-advo-
cating character. 
(d) REORGANIZATION.—If the Director of the Federal 
Housing Finance Agency determines, after the end of the 
1-year period beginning on the date of the abolishment 
under section 385(a), that a reorganization of the combined 
work force is required, that reorganization shall be deemed 
a major reorganization for purposes of affording affected
478 
insurance, to which such employee belongs on the ef-
fective date of the abolishment under section 391(a) 
if— 
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director of the Federal Housing Finance 
Agency. 
(2) COST DIFFERENTIAL.—The difference in the 
costs between the benefits which would have been pro-
vided by the Board and those provided 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 
Director, the employee shall be permitted to select an 
alternate Federal health insurance program within 30 
days after such election or notice, without regard to 
any other regularly scheduled open season. 
SEC. 394. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the effective date of the abolishment under sec-
tion 391(a), all property of the Board shall transfer to the 
Director of the Federal Housing Finance Agency.
479 
CHAPTER 3—DEPARTMENT OF HOUSING 
AND URBAN DEVELOPMENT 
SEC. 395. TERMINATION OF ENTERPRISE-RELATED FUNC-
TIONS. 
(a) TERMINATION DATE.—For purposes of this chap-
ter, the term ‘‘termination date’’ means the date that occurs 
6 months after the date of the enactment of this Act. 
(b) DETERMINATION
OF TRANSFERRED FUNCTIONS 
AND EMPLOYEES.— 
(1) IN GENERAL.—Not later than the expiration 
of the 3-month period beginning on the date of the en-
actment of this Act, the Secretary, in consultation 
with the Director of the Office of Federal Housing 
Enterprise Oversight, shall determine— 
(A) the functions, duties, and activities of 
the Secretary of Housing and Urban Develop-
ment regarding oversight or regulation of the en-
terprises under or pursuant to the authorizing 
statutes, title XIII of the Housing and Commu-
nity Development Act of 1992, and any other 
provisions of law, as in effect before the date of 
the enactment of this Act, but not including any 
such functions, duties, and activities of the Di-
rector of the Office of Federal Housing Enter-
480 
prise Oversight of the Department of Housing 
and Urban Development and such Office; and 
(B) the employees of the Department of 
Housing and Urban Development necessary to 
perform such functions, duties, and activities. 
(2) 
ENTERPRISE-RELATED
FUNCTIONS.—For 
purposes of this chapter, the term ‘‘enterprise-related 
functions of the Department’’ means the functions, 
duties, and activities of the Department of Housing 
and Urban Development determined under paragraph 
(1)(A). 
(3) 
ENTERPRISE-RELATED
EMPLOYEES.—For 
purposes of this chapter, the term ‘‘enterprise-related 
employees of the Department’’ means the employees of 
the Department of Housing and Urban Development 
determined under paragraph (1)(B). 
(c) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of enactment of this Act, the 
Secretary of Housing and Urban Development (in this sub-
title referred to as the ‘‘Secretary’’), for the purpose of wind-
ing up the affairs of the Secretary regarding the enterprise- 
related functions of the Department of Housing and Urban 
Development (in this subtitle referred to as the ‘‘Depart-
ment’’) and in addition to carrying out the Secretary’s 
other responsibilities under law regarding such functions—
481 
(1) shall manage the enterprise-related employees 
of the Department and provide for the payment of the 
compensation and benefits of any such employee 
which accrue before the effective date of the transfer 
of any such employee under section 397; and 
(2) may take any other action necessary for the 
purpose of winding up the enterprise-related functions 
of the Department. 
(d) STATUS OF EMPLOYEES BEFORE TRANSFER.—The 
amendments made by subtitles A and B and the termi-
nation of the enterprise-related functions of the Department 
under subsection (b) may not be construed to affect the sta-
tus of any employee of the Department as employees of an 
agency of the United States for purposes of any other provi-
sion of law before the effective date of the transfer of any 
such employee under section 397. 
(e) USE OF PROPERTY AND SERVICES.— 
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of the 
Secretary to perform functions which have been trans-
ferred to the Director of the Federal Housing Finance 
Agency for such time as is reasonable to facilitate the 
orderly transfer of functions transferred under any 
other provision of this title or any amendment made 
by this title to any other provision of law.
482 
(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 Secretary regarding enterprise-related 
functions of the Department before the termination 
date under subsection (a) in connection with such 
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 
(B) consult with any such agency to coordi-
nate and facilitate a prompt and reasonable 
transition. 
(f) SAVINGS PROVISIONS.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not affect 
the validity of any right, duty, or obligation of the 
United States, the Secretary, or any other person, 
which— 
(A) arises under the authorizing statutes, 
title XIII of the Housing and Community Devel-
opment Act of 1992, or any other provision of 
law applicable with respect to the Secretary, in
487 
transfer under subsection (a) may retain for 12 
months after the date on which such transfer occurs 
membership in any employee benefit program of the 
Federal Housing Finance Agency or the Department, 
as applicable, including insurance, to which such em-
ployee belongs on the termination date under section 
395(a) if— 
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director of the Federal Housing Finance 
Agency. 
(2) COST DIFFERENTIAL.—The difference in the 
costs between the benefits which would have been pro-
vided by the Department and those provided 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 Director, the employee shall be permitted to se-
lect an alternate Federal health insurance program 
within 30 days after such election or notice, without 
regard to any other regularly scheduled open season.
488 
SEC. 398. TRANSFER OF APPROPRIATIONS, PROPERTY, AND 
FACILITIES. 
Upon the termination date under section 395(a), all 
assets, liabilities, contracts, property, records, and unex-
pended balances of appropriations, authorizations, alloca-
tions, and other funds employed, held, used, arising from, 
available to, or to be made available to the Department in 
connection with enterprise-related functions of the Depart-
ment shall transfer to the Director of the Federal Housing 
Finance Agency. Unexpended funds transferred by this sec-
tion shall be used only for the purposes for which the funds 
were originally authorized and appropriated. 
TITLE 
IV—EMERGENCY 
MORT-
GAGE LOAN MODIFICATION 
SEC. 401. SHORT TITLE. 
This title may be cited as the ‘‘Emergency Mortgage 
Loan Modification Act of 2008’’. 
SEC. 402. SAFE HARBOR FOR QUALIFIED LOAN MODIFICA-
TIONS OR WORKOUT PLANS FOR CERTAIN 
RESIDENTIAL MORTGAGE LOANS. 
(a) STANDARD FOR LOAN MODIFICATIONS OR WORK-
OUT PLANS.—Absent contractual provisions to the con-
trary— 
(1) the duty to maximize, or to not adversely af-
fect, the recovery of total proceeds from pooled resi-
dential mortgage loans is owed by a servicer of such
489 
pooled loans to the securitization vehicle for the ben-
efit of all investors and holders of beneficial interests 
in the pooled loans, in the aggregate, and not to any 
individual party or group of parties; and 
(2) a servicer of pooled residential mortgage 
loans shall be deemed to be acting on behalf of the 
securitization vehicle in the best interest of all inves-
tors and holders of beneficial interests in the pooled 
loans, in the aggregate, if for a loan that is in pay-
ment default under the loan agreement or for which 
payment default is imminent or reasonably foresee-
able, the loan servicer makes or causes to be made rea-
sonable and documented efforts to implement a modi-
fication or workout plan or, if such efforts are unsuc-
cessful or such plan would be infeasible, engages or 
causes to engage in other loss mitigation, including 
accepting a short payment or partial discharge of 
principal, or agreeing to a short sale of the property, 
to the extent that the servicer reasonably believes the 
modification or workout plan or other mitigation ac-
tions will maximize the net present value to be real-
ized on the loan over that which would be realized 
through foreclosure. 
(b) SAFE HARBOR.—Absent contractual provisions to 
the contrary, a servicer of a residential mortgage loan that
490 
acts or causes to act in a manner consistent with the duty 
set forth in subsection (a), shall not be liable for entering 
into a qualified loan modification or workout plan, to— 
(1) any person, based on that person’s ownership 
of a residential mortgage loan or any interest in a 
pool of residential mortgage loans or in securities that 
distribute payments out of the principal, interest and 
other payments in loans on the pool; 
(2) any person who is obligated to make pay-
ments pursuant to a derivatives instrument deter-
mined in reference to any interest referred to in para-
graph (1); or 
(3) any person that insures any loan or any in-
terest referred to in paragraph (1) under any law or 
regulation of the United States or any law or regula-
tion of any State or political subdivision of any 
State. 
(c) RULE OF CONSTRUCTION.—No provision of this 
section shall be construed as limiting the ability of a 
servicer to enter into loan modifications or workout plans 
other than qualified loan modification or workout plans. 
(d) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply:
491 
(1) QUALIFIED LOAN MODIFICATION OR WORK-
OUT PLAN.—The term ‘‘qualified loan modification or 
workout plan’’ means a modification or plan that— 
(A) is scheduled to remain in place until 
the borrower sells or refinances the property, or 
for at least 5 years from the date of adoption of 
the plan, whichever is sooner; 
(B) does not provide for a repayment sched-
ule that results in an increase in the outstanding 
principal balance of the loan, including by de-
ferred or unpaid interest, fees, or other charges; 
and 
(C) does not require the borrower to pay ad-
ditional points and fees. 
(2) RESIDENTIAL MORTGAGE LOAN DEFINED.— 
The term ‘‘residential mortgage loan’’ means a loan 
that is secured by a lien on an owner-occupied resi-
dential dwelling. 
(3) 
SECURITIZATION
VEHICLE.—The 
term 
‘‘securitization vehicle’’ means a trust, corporation, 
partnership, limited liability entity, special purpose 
entity, or other structure that— 
(A) is the issuer, or is created by the issuer, 
of mortgage pass-through certificates, participa-
tion certificates, mortgage-backed securities, or
492 
other similar securities backed by a pool of assets 
that includes residential mortgage loans; and 
(B) holds such loans. 
(e) EFFECTIVE PERIOD.—This section shall apply only 
with respect to qualified loan modification or workout plans 
initiated prior to January 1, 2011. 
TITLE V—OTHER HOUSING 
PROVISIONS 
SEC. 501. DEPOSITORY INSTITUTION COMMUNITY DEVEL-
OPMENT INVESTMENTS ENHANCEMENT. 
(a) TECHNICAL CORRECTIONS.— 
(1) NATIONAL BANKS.—The first sentence of the 
paragraph designated as the ‘‘Eleventh’’ of section 
5136 of the Revised Statutes of the United States (12 
U.S.C. 24) (as amended by section 305(a) of the Fi-
nancial Services Regulatory Relief Act of 2006) is 
amended by striking ‘‘promotes the public welfare by 
benefitting primarily’’ and inserting ‘‘is designed pri-
marily to promote the public welfare, including the 
welfare of’’. 
(2) STATE MEMBER BANKS.—The first sentence 
of the 23rd undesignated paragraph of section 9 of the 
Federal Reserve Act (12 U.S.C. 338a) (as amended by 
section 305(b) of the Financial Services Regulatory 
Relief Act of 2006) is amended by striking ‘‘promotes
494 
‘‘(iii) PROHIBITION ON UNLIMITED LI-
ABILITY.—No investment may be made 
under this subparagraph which would sub-
ject a Federal savings association to unlim-
ited liability to any person. 
‘‘(iv) SINGLE INVESTMENT LIMITATION 
TO BE ESTABLISHED BY DIRECTOR.—Sub-
ject to clauses (v) and (vi), the Director 
shall establish, by order or regulation, lim-
its on— 
‘‘(I) the amount any savings asso-
ciation may invest in any 1 project; 
and 
‘‘(II) the aggregate amount of in-
vestment of any savings association 
under this subparagraph. 
‘‘(v) FLEXIBLE
AGGREGATE
INVEST-
MENT LIMITATION.—The aggregate amount 
of investments of any savings association 
under this subparagraph may not exceed an 
amount equal to the sum of 5 percent of the 
savings association’s capital stock actually 
paid in and unimpaired and 5 percent of 
the savings association’s unimpaired sur-
plus, unless—
495 
‘‘(I) the Director determines that 
the savings association is adequately 
capitalized; and 
‘‘(II) the Director determines, by 
order, that the aggregate amount of in-
vestments in a higher amount than the 
limit under this clause will pose no 
significant risk to the affected deposit 
insurance fund. 
‘‘(vi) MAXIMUM
AGGREGATE
INVEST-
MENT LIMITATION.—Notwithstanding clause 
(v), the aggregate amount of investments of 
any savings association under this subpara-
graph may not exceed an amount equal to 
the sum of 15 percent of the savings associa-
tion’s capital stock actually paid in and 
unimpaired and 15 percent of the savings 
association’s unimpaired surplus. 
‘‘(vii) INVESTMENTS NOT SUBJECT TO 
OTHER LIMITATION ON QUALITY OF INVEST-
MENTS.—No obligation a Federal savings 
association acquires or retains under this 
subparagraph shall be taken into account 
for purposes of the limitation contained in 
section 28(d) of the Federal Deposit Insur-
496 
ance Act on the acquisition and retention of 
any corporate debt security not of invest-
ment grade. 
‘‘(viii) APPLICABILITY OF STANDARDS 
TO EACH INVESTMENT.—The standards and 
limitations of this subparagraph shall 
apply to each investment under this sub-
paragraph made by a savings association 
directly and by its subsidiaries.’’. 
(2) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 5(c)(3)(A) of the Home Owners’ 
Loan Act (12 U.S.C. 1464(c)(3)(A)) is amended to 
read as follows: 
‘‘(A) ƒRepealed≈’’. 
SEC. 502. PRESERVATION OF CERTAIN AFFORDABLE HOUS-
ING DWELLING UNITS. 
(a) CONVERSION
OF HUD CONTRACTS.—Notwith-
standing any other provision of law, the Secretary of Hous-
ing and Urban Development may, at the request of the 
owner of the multifamily housing project to which Section 
8 Project Number NY 913 VO 0018 and RAP Contract 
Number 012035NIRAP are subject, convert such contracts 
to a contract for project-based rental assistance under sec-
tion 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f).
497 
(b) INITIAL RENEWAL.— 
(1) ELIGIBILITY.—At the request of the owner 
made no later than 90 days prior to a conversion, the 
Secretary may, to the extent sufficient amounts are 
made available in appropriation Acts and notwith-
standing any other law, treat the contemplated result-
ing contract as if such contract were eligible for ini-
tial renewal under section 524(a) of the Multifamily 
Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note). 
(2) REQUEST.—A request by the owner pursuant 
to paragraph (1) shall be upon such terms and condi-
tions as the Secretary may require. 
(c) RESULTING CONTRACT.—The resulting contract 
shall— 
(1) be subject to section 524(a) of MAHRA (42 
U.S.C. 1437f note); 
(2) be considered for all purposes a contract that 
has been renewed under section 524(a) of MAHRA 
(42 U.S.C. 1437f note) for a term not to exceed 20 
years; 
(3) be subsequently renewable at the request of 
the owner, under any renewal option for which the 
project is eligible under MAHRA (42 U.S.C. 1437f 
note);
498 
(4) contain provisions limiting distributions, as 
the Secretary determines appropriate, not to exceed 
10 percent of the initial investment of the owner; 
(5) be subject to the availability of sufficient 
amounts in appropriation Acts; and 
(6) be subject to such other terms and conditions 
as the Secretary considers appropriate. 
(d) INCOME TARGETING.—The owner shall be deemed 
to be in compliance with all income-targeting requirements 
under the United States Housing Act of 1937 by serving 
low-income families, as such term is defined in the section 
3(b)(2) of such Act (42 U.S.C. 1437a(b)(2)). 
(e) TENANT ELIGIBILITY.—Notwithstanding any other 
provision of law, each family residing in an assisted dwell-
ing unit on the date of the conversion under this section, 
subject to the resulting contract under subsection (a), shall 
be considered to meet the applicable requirements for in-
come eligibility and occupancy. 
(f) DEFINITIONS.—As used in this section— 
(1) the term ‘‘assisted dwelling unit’’ means the 
dwelling units that, on the date of the conversion 
under this section, were subject to Section 8 Project 
Number NY 913 VO 0018 or RAP Contract Number 
012035NIRAP;