I 
114TH CONGRESS 
1ST SESSION H. R. 1491 
To reform the housing finance system of the United States, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2015 
Mr. DELANEY (for himself, Mr. CARNEY, Mr. HIMES, Ms. SINEMA, Mr. HECK 
of Washington, Mr. MEEKS, Mr. MURPHY of Florida, Mr. POLIS, Mr. 
QUIGLEY, Mr. DAVID SCOTT of Georgia, and Mr. WELCH) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To reform the housing finance system of the United States, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Partnership to Strengthen Homeownership Act of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purpose. 
Sec. 3. Definitions. 
TITLE I—GINNIE MAE 
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Sec. 101. Removal from HUD; establishment as independent entity. 
Sec. 102. Transfer to Ginnie Mae of powers, personnel, and property of FHFA. 
Sec. 103. Regulation of market participants and aggregators. 
Sec. 104. Regulatory consultation and coordination. 
TITLE II—SECURITIZATION AND INSURANCE 
Sec. 201. Issuing Platform. 
Sec. 202. Insurance. 
Sec. 203. Authority to protect taxpayers in unusual and exigent market condi-
tions. 
Sec. 204. Servicing rights; representations and warranties. 
Sec. 205. Federal Home Loan Banks. 
TITLE III—WIND DOWN OF FANNIE MAE AND FREDDIE MAC 
Sec. 301. Limitation on business. 
Sec. 302. Risk-sharing pilot programs. 
Sec. 303. Continued conservatorship. 
Sec. 304. Mandatory receivership. 
Sec. 305. Repeal of enterprise charters. 
Sec. 306. Ginnie Mae authority regarding timing. 
Sec. 307. Consultation. 
TITLE IV—MULTIFAMILY HOUSING FINANCE 
Sec. 401. Establishment of multifamily subsidiaries. 
Sec. 402. Disposition of multifamily businesses. 
Sec. 403. Guarantee of multifamily securities. 
Sec. 404. Other forms of multifamily risk-sharing. 
Sec. 405. Ginnie Mae securitization of FHA risk-sharing loans. 
Sec. 406. Continuation of certain programs. 
TITLE V—AFFORDABLE HOUSING 
Sec. 501. Affordable housing allocations. 
Sec. 502. Housing Trust Fund. 
Sec. 503. Capital Magnet Fund. 
Sec. 504. Market Access Fund. 
TITLE VI—GENERAL PROVISIONS 
Sec. 601. Rule of construction regarding Senior Preferred Stock Purchase 
Agreements. 
Sec. 602. Treatment of community development financial institution. 
SEC. 2. PURPOSE. 
The purpose of this Act is to facilitate a liquid, trans-
parent, and resilient single-family and multifamily mort-
gage credit market by supporting a robust secondary 
mortgage market, including as currently exists in the ‘‘to 
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be announced’’ or ‘‘TBA’’ market, and preserving the li-
quidity of all products (including structures such as 10- 
, 15-, 20-, and 30-year fixed-rate mortgages) that are 
presently eligible to trade in such TBA market, including 
during the transition to the new housing finance system. 
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) BANKING DEFINITIONS.—The term ‘‘bank’’ 
and ‘‘savings association’’ have the meaning given 
those terms, respectively, under section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 1813). 
(2) CERTIFICATION DATE.—The term ‘‘certifi-
cation date’’ means the earlier of— 
(A) the date on which Ginnie Mae makes 
the certification described under section 201(h); 
and 
(B) the date that is the end of the 2-year 
period beginning on the date of the enactment 
of this Act. 
(3) CHARTER ACT.—The term ‘‘charter Act’’ 
means— 
(A) with respect to the Federal National 
Mortgage Association, the Federal National 
Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.); and 
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(B) with respect to the Federal Home 
Loan Mortgage Corporation, the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 
1451 et seq.). 
(4) CREDIT UNION.—The term ‘‘credit union’’ 
means any ‘‘Federal credit union’’ or ‘‘State credit 
union’’, as such terms are defined under section 101 
of the Federal Credit Union Act (12 U.S.C. 1752). 
(5) DIRECTOR.—The term ‘‘Director’’ means 
the Director of Ginnie Mae, as such position is es-
tablished pursuant to the amendments made by sec-
tion 101(c)(1). 
(6) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means a residential mortgage loan se-
cured by a property with 1 to 4 residential units 
that— 
(A) is a ‘‘qualified mortgage’’, as such 
term is defined under section 129C(b)(2)(A) of 
the Truth in Lending Act (15 U.S.C. 1639c); 
(B) satisfies standards related to estab-
lishing title or marketability of title, as may be 
required by Ginnie Mae, which standards may 
include the required purchase of title insurance 
on the property securing the loan; and 
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(C) satisfies such other minimum stand-
ards as may be established by the Platform, to 
ensure the quality of mortgages used to 
collateralize mortgage-backed securities issued 
by the Platform. 
(7) 
ELIGIBLE
MULTIFAMILY
MORTGAGE 
LOAN.—The term ‘‘eligible multifamily mortgage 
loan’’ means a commercial real estate loan— 
(A) secured by— 
(i) multifamily housing; or 
(ii) a property with 2 or more residen-
tial units, if the requirement under clause 
(i) is waived by the Director for purposes 
of carrying out a demonstration or pilot 
program; 
(B) the primary source of repayment for 
which is expected to be derived from rental in-
come generated by the property; 
(C) the term of which may not be less than 
5 years but not more than 40 years; 
(D) that satisfies any additional under-
writing criteria established by the Director to 
balance supporting access to capital with man-
aging credit risk to the Fund, including— 
(i) a maximum loan-to-value ratio; 
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(ii) a minimum debt service coverage 
ratio; and 
(iii) considerations for restrictive or 
special uses of a property, including non- 
residential uses, properties for seniors, 
manufactured housing, and affordability 
restrictions, and the impact of such uses 
on clauses (i) and (ii); and 
(E) that satisfies any additional under-
writing criteria that may be established by the 
Director. 
(8) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation and any affiliate thereof; and 
(B) the Federal Home Loan Mortgage 
Corporation and any affiliate thereof. 
(9) FUND.—The term ‘‘Fund’’ means the in-
surance fund established under section 202(g). 
(10) GINNIE
MAE.—The term ‘‘Ginnie Mae’’ 
means the Government National Mortgage Associa-
tion. 
(11) MARKET PARTICIPANT.—The term ‘‘mar-
ket participant’’ means any insurance company, 
bank, saving association, credit union, or real estate 
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investment trust insuring or reinsuring any part of 
a security issued by the Platform. 
(12) MULTIFAMILY COVERED SECURITY.—The 
term ‘‘multifamily covered security’’ means a secu-
rity that meets the requirements for guarantee by 
Ginnie Mae pursuant to section 403. 
(13) MULTIFAMILY HOUSING.—The term ‘‘mul-
tifamily housing’’ means a property having 5 or 
more residential units. 
(14) PARTICIPATING AGGREGATOR.—The term 
‘‘participating aggregator’’ means an aggregator of 
eligible mortgages that collateralize mortgage-backed 
securities issued by the Platform pursuant to title 
II. 
(15) PLATFORM.—The term ‘‘Platform’’ means 
the Issuing Platform established under section 
201(a). 
(16) REAL ESTATE INVESTMENT TRUST.—The 
term ‘‘real estate investment trust’’ has the meaning 
given such term under section 856(a) of the Internal 
Revenue Code of 1986. 
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TITLE I—GINNIE MAE 
SEC. 101. REMOVAL FROM HUD; ESTABLISHMENT AS INDE-
PENDENT ENTITY. 
(a) IN GENERAL.—Paragraph (2) of section 302(a) 
of the National Housing Act (12 U.S.C. 1717(a)(2)) is 
amended by striking ‘‘in the Department of Housing and 
Urban Development’’ and inserting ‘‘independent of any 
other agency or office in the Federal Government’’. 
(b) CONFORMING AMENDMENTS.—Title III of the 
National Housing Act (12 U.S.C. 1716 et seq.) is amend-
ed— 
(1) 
in 
section 
306(g)(3)(D) 
(12 
U.S.C. 
1721(g)(3)(D)), by striking ‘‘Secretary’’ and insert-
ing ‘‘Association’’; 
(2) in section 307 (12 U.S.C. 1722), by striking 
‘‘Secretary of Housing and Urban Development’’ 
and inserting ‘‘Association’’; and 
(3) in section 317 (12 U.S.C. 1723i)— 
(A) in subsection (a)(1), by striking ‘‘Sec-
retary of Housing and Urban Development’’ 
and inserting ‘‘Director of the Association’’; 
(B) in subsection (c)(4), by striking ‘‘Sec-
retary’s’’ and inserting ‘‘Director of the Asso-
ciation’s’’; 
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(C) in subsection (d)(1), by striking ‘‘Sec-
retary’s’’ and inserting ‘‘Director of the Asso-
ciation’s’’; 
(D) in the heading for subsection (f), by 
striking ‘‘BY SECRETARY’’; and 
(E) by striking ‘‘Secretary’’ each place 
such term appears and inserting ‘‘Director of 
the Association’’. 
(c) MANAGEMENT; BOARD OF DIRECTORS.— 
(1) IN GENERAL.—Section 308 of the National 
Housing Act (12 U.S.C. 1723(a)) is amended by 
striking subsection (a) and inserting the following 
new subsection: 
‘‘(a) MANAGEMENT.— 
‘‘(1) BOARD OF DIRECTORS.— 
‘‘(A) NUMBER
AND
APPOINTMENT.—The 
Association shall be governed by a Board of Di-
rectors consisting of 5 members, who shall be 
appointed by the President, by and with the ad-
vice and consent of the Senate, from among in-
dividuals who— 
‘‘(i) are citizens of the United States, 
and 
‘‘(ii) have demonstrated technical ex-
pertise in the mortgage market and one of 
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whom has technical expertise in the sec-
ondary mortgage market. 
‘‘(B) POLITICAL AFFILIATION.—Not more 
than 3 members of the Board of Directors may 
be members of the same political party. 
‘‘(C) TERMS.— 
‘‘(i) IN GENERAL.—Each member of 
the Board of Directors shall be appointed 
for a term of 5 years. 
‘‘(ii) INTERIM
APPOINTMENTS.—Any 
member appointed to fill a vacancy occur-
ring before the expiration of the term for 
which such member’s predecessor was ap-
pointed shall be appointed only for the re-
mainder of such term. 
‘‘(iii) CONTINUATION OF SERVICE.— 
The Director and each member may con-
tinue to serve after the expiration of the 
term of office to which such member was 
appointed until a successor has been ap-
pointed and qualified. 
‘‘(2) DIRECTOR; CHAIRPERSON.— 
‘‘(A) DESIGNATION; TERM.—One of the 
members of the Board of Directors shall be des-
ignated by the President, at the time of ap-
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pointment, to serve as Chairperson of the 
Board of Directors and Director of the Associa-
tion for a term of 5 years, unless removed be-
fore the end of such term pursuant to subpara-
graph (C). 
‘‘(B) ADVICE.—The Board of Directors 
shall advise the Director regarding overall strat-
egies and policies to carry out the duties and 
purposes of this Act. 
‘‘(C) REMOVAL.—The President may re-
move the Director for inefficiency, neglect of 
duty, or malfeasance in office. 
‘‘(3) OPERATIONS.— 
‘‘(A) BYLAWS.—Within the limitations of 
law, the Board of Directors shall determine the 
general policies which shall govern the oper-
ations of the Association, and shall have power 
to adopt, amend and repeal bylaws governing 
the performance of the powers and duties 
granted to or imposed upon it by law. 
‘‘(B) REQUIRED
VOTES.—At the first 
meeting of the Board of Directors, the Board 
shall determine by majority vote which actions 
of the Association shall require a majority vote 
of the Board. 
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‘‘(4) OFFICERS.—The Director shall select and 
effect the appointment of qualified persons to fill 
such offices of the Association as may be provided 
for in the bylaws. Persons appointed under the pre-
ceding sentence shall perform such executive func-
tions, powers, and duties as may be prescribed by 
the bylaws or by the Board of Directors, and such 
persons shall be executive officers of the Association 
and shall discharge all such executive functions, 
powers, and duties.’’. 
(2) COMPENSATION.— 
(A) DIRECTOR.—Section 5314 of title 5, 
United States Code, is amended by adding at 
the end the following new item: 
‘‘Director, Government National Mortgage Associa-
tion.’’. 
(B) MEMBERS
OF
BOARD
OF
DIREC-
TORS.—Section 5314 of title 5, United States 
Code, is amended— 
(i) by striking the item relating to the 
President of the Government National 
Mortgage 
Association, 
Department 
of 
Housing and Urban Development; and 
(ii) by adding at the end the following 
new item: 
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‘‘Members, Board of Directors of the Government 
National Mortgage Association.’’. 
(d) MEMBERSHIP ON FSOC.—The Dodd-Frank Wall 
Street Reform and Consumer Protection Act is amend-
ed— 
(1) in section 2, by amending paragraph 
(12)(E) to read as follows: 
‘‘(E) the Government National Mortgage 
Association, with respect to— 
‘‘(i) the Mortgage Insurance Fund es-
tablished under section 202(g) of the Part-
nership to Strengthen Homeownership Act 
of 2015; and 
‘‘(ii) the Federal Home Loan Banks 
or the Federal Home Loan Bank Sys-
tem.’’; and 
(2) in section 111(b)(1)(H), by striking ‘‘Direc-
tor of the Federal Housing Finance Agency’’ and in-
serting ‘‘Director of the Government National Mort-
gage Association’’. 
(e) PERSONNEL.—Subsection (d) of section 309 of 
the National Housing Act (12 U.S.C. 1723a(d)) is amend-
ed by striking ‘‘(d)(1)’’ and all that follows through the 
end of paragraph (1) and inserting the following: 
‘‘(d) PERSONNEL.— 
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‘‘(1) GINNIE MAE.— 
‘‘(A) IN GENERAL.—The Director of the 
Association may appoint and fix the compensa-
tion of such officers and employees of the Asso-
ciation as the Director considers necessary to 
carry out the functions of the Association. Offi-
cers and employees may be paid without regard 
to the provisions of chapter 51 and subchapter 
III of chapter 53 of title 5, United States Code, 
relating to classification and General Schedule 
pay rates. 
‘‘(B) DEVELOPMENT
OF
HUMAN
RE-
SOURCES.—In carrying out this subsection, 
Ginnie Mae shall appoint and develop human 
capital (which shall have such meaning as de-
termined by Ginnie Mae, in consultation with 
the Board of Governors of the Federal Reserve, 
taking into consideration differences between 
the banking and insurance industries) necessary 
to ensure that it possesses sufficient expertise 
regarding the insurance industry and insurance 
issues. 
‘‘(C) COMPARABILITY
OF
COMPENSATION 
WITH FEDERAL BANKING AGENCIES.—In fixing 
and directing compensation under subpara-
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graph (A), the Director of the Association shall 
consult with, and maintain comparability with, 
compensation of officers and employees of the 
Office of the Comptroller of the Currency, the 
Board of Governors of the Federal Reserve Sys-
tem, and the Federal Deposit Insurance Cor-
poration. 
‘‘(D) PERSONNEL
OF
OTHER
FEDERAL 
AGENCIES.—In carrying out the duties of the 
Association, the Director of the Association 
may use information, services, staff, and facili-
ties of any executive agency, independent agen-
cy, or department on a reimbursable basis, with 
the consent of such agency or department. 
‘‘(E) OUTSIDE
EXPERTS
AND
CONSULT-
ANTS.—Notwithstanding any provision of law 
limiting pay or compensation, the Director of 
the Association may appoint and compensate 
such outside experts and consultants as such 
Director determines necessary to assist the 
work of the Association.’’. 
(f) 
TRANSITIONAL
PROVISION.—Notwithstanding 
this section and the amendments made by this section, 
during the period beginning on the date of the enactment 
of this Act, and ending on the date on which the Director 
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of the Government National Mortgage Association is ap-
pointed and confirmed pursuant to section 308 of the Na-
tional Housing Act, as amended by this section, the person 
serving as the President of the Government National 
Mortgage Association on that effective date shall act for 
all purposes as, and with the full powers of, the Director 
of the Association. 
(g) REFERENCES.—On and after the date of the en-
actment of this Act, any reference in Federal law to the 
President of the Government National Mortgage Associa-
tion or to such Association shall be deemed to be a ref-
erence to such Director of such Association or to such As-
sociation, as appropriate, as organized pursuant to this 
subsection and the amendments made by this section. 
SEC. 102. TRANSFER TO GINNIE MAE OF POWERS, PER-
SONNEL, AND PROPERTY OF FHFA. 
(a) POWERS AND DUTIES TRANSFERRED.— 
(1) FEDERAL
HOME
LOAN
BANK
FUNCTIONS 
TRANSFERRED.— 
(A) TRANSFER OF FUNCTIONS.—There are 
transferred to Ginnie Mae and the Director of 
Ginnie Mae all functions of the Federal Hous-
ing Finance Agency and the Director of the 
Federal Housing Finance Agency, respectively. 
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(B) POWERS, AUTHORITIES, RIGHTS, AND 
DUTIES.—Ginnie Mae and the Director of 
Ginnie Mae shall succeed to all powers, authori-
ties, rights, and duties that were vested in the 
Federal Housing Finance Agency and the Di-
rector of the Federal Housing Finance Agency, 
respectively, including all conservatorship or re-
ceivership authorities, on the day before the 
transfer date in connection with the functions 
and authorities transferred under subparagraph 
(A). 
(C) TRANSFER
DATE.—The transfer of 
functions under this paragraph shall take effect 
upon the expiration of the 6-month period be-
ginning on the date of the enactment of this 
Act. 
(2) CONTINUATION
AND
COORDINATION
OF 
CERTAIN ACTIONS.— 
(A) IN GENERAL.—All regulations, orders, 
determinations, and resolutions described under 
subparagraph (B) shall remain in effect accord-
ing to the terms of such regulations, orders, de-
terminations, and resolutions, and shall be en-
forceable by or against Ginnie Mae until modi-
fied, terminated, set aside, or superseded in ac-
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cordance with applicable law by Ginnie Mae, 
any court of competent jurisdiction, or oper-
ation of law. 
(B) APPLICABILITY.—A regulation, order, 
determination, or resolution is described under 
this subparagraph if it— 
(i) was issued, made, prescribed, or 
allowed to become effective by— 
(I) the Federal Housing Finance 
Agency; or 
(II) a court of competent juris-
diction, and relates to functions trans-
ferred by this subsection; 
(ii) relates to the performance of func-
tions that are transferred by this sub-
section; and 
(iii) is in effect on the transfer date 
under paragraph (1)(C). 
(3) DISPOSITION OF AFFAIRS.—During the pe-
riod preceding the transfer date under paragraph 
(1)(C), the Director of the Federal Housing Finance 
Agency, for the purpose of winding up the affairs of 
the Federal Housing Finance Agency in connection 
with the performance of functions that are trans-
ferred by this section— 
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(A) shall manage the employees of such 
Agency and provide for the payment of the 
compensation and benefits of any such employ-
ees which accrue before such transfer date; and 
(B) may take any other action necessary 
for the purpose of winding up the affairs of the 
Office. 
(4) USE OF PROPERTY AND SERVICES.— 
(A) PROPERTY.—Ginnie Mae may use the 
property and services of the Federal Housing 
Finance Agency to perform functions which 
have been transferred to Ginnie Mae until such 
time as the Agency is abolished under sub-
section (c) to facilitate the orderly transfer of 
functions transferred under this subsection, any 
other provision of this Act, or any amendment 
made by this Act to any other provision of law. 
(B) AGENCY SERVICES.—Any agency, de-
partment, or other instrumentality of the 
United States, and any successor to any such 
agency, department, or instrumentality, that 
was providing supporting services to the Agency 
before the transfer date in connection with 
functions that are transferred to Ginnie Mae 
shall— 
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(i) continue to provide such services, 
on a reimbursable basis, until the transfer 
of such functions is complete; and 
(ii) consult with any such agency to 
coordinate and facilitate a prompt and rea-
sonable transition. 
(5) CONTINUATION OF SERVICES.—Ginnie Mae 
may use the services of employees and other per-
sonnel of the Federal Housing Finance Agency, on 
a reimbursable basis, to perform functions which 
have been transferred to Ginnie Mae for such time 
as is reasonable to facilitate the orderly transfer of 
functions pursuant to this subsection, any other pro-
vision of this Act, or any amendment made by this 
Act to any other provision of law. 
(6) SAVINGS PROVISIONS.— 
(A) EXISTING RIGHTS, DUTIES, AND OBLI-
GATIONS NOT AFFECTED.—Paragraph (1) and 
subsection (c) shall not affect the validity of 
any right, duty, or obligation of the United 
States, the Director of the Federal Housing Fi-
nance Agency, the Federal Housing Finance 
Agency, or any other person, that existed on 
the day before the transfer date under para-
graph (1)(C). 
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(B) CONTINUATION OF SUITS.—No action 
or other proceeding commenced by or against 
the Director of the Federal Housing Finance 
Agency in connection with the functions that 
are transferred to Ginnie Mae under this sub-
section shall abate by reason of the enactment 
of this Act, except that Ginnie Mae shall be 
substituted for the Director of the Federal 
Housing Finance Agency as a party to any such 
action or proceeding. 
(b) TRANSFER
AND RIGHTS
OF EMPLOYEES
OF 
FHFA.— 
(1) TRANSFER.—Each employee of the Federal 
Housing Finance Agency that is employed in connec-
tion with functions that are transferred to Ginnie 
Mae under subsection (a) shall be transferred to 
Ginnie Mae for employment, not later than the 
transfer date under subsection (a)(1)(C), and such 
transfer shall be deemed a transfer of function for 
purposes of section 3503 of title 5, United States 
Code. 
(2) STATUS OF EMPLOYEES.—The transfer of 
functions under this section, and the abolishment of 
the Federal Housing Finance Agency under sub-
section (c), may not be construed to affect the status 
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of any transferred employee as an employee of an 
agency of the United States for purposes of any 
other provision of law. 
(3) GUARANTEED POSITIONS.—Each employee 
transferred under paragraph (1) shall be guaranteed 
a position with the same status, tenure, grade, and 
pay as that held on the day immediately preceding 
the transfer. 
(4) APPOINTMENT AUTHORITY FOR EXCEPTED 
EMPLOYEES.— 
(A) IN GENERAL.—In the case of an em-
ployee occupying a position in the excepted 
service, any appointment authority established 
under law or by regulations of the Office of 
Personnel Management for filling such position 
shall be transferred, subject to subparagraph 
(B). 
(B) DECLINE OF TRANSFER.—Ginnie Mae 
may decline a transfer of authority under sub-
paragraph (A), to the extent that such author-
ity relates to a position excepted from the com-
petitive service because of its confidential, pol-
icymaking, policy-determining, or policy-advo-
cating character. 
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(5) REORGANIZATION.—If Ginnie Mae deter-
mines, after the end of the 1-year period beginning 
on the transfer date under subsection (a)(1)(C), that 
a reorganization of the combined workforce is re-
quired, that reorganization shall be deemed a major 
reorganization for purposes of affording affected em-
ployee retirement under section 8336(d)(2) or 
8414(b)(1)(B) of title 5, United States Code. 
(6) EMPLOYEE BENEFIT PROGRAMS.— 
(A) IN
GENERAL.—Any employee of the 
Federal Housing Finance Agency accepting em-
ployment with Ginnie Mae as a result of a 
transfer under paragraph (1) may retain, for 
12 months after the date on which such trans-
fer occurs, membership in any employee benefit 
program of the Agency or Ginnie Mae, as appli-
cable, including insurance, to which such em-
ployee belongs on the transfer date under sub-
section (a)(1)(C) if— 
(i) the employee does not elect to give 
up the benefit or membership in the pro-
gram; and 
(ii) the benefit or program is contin-
ued by Ginnie Mae. 
(B) COST DIFFERENTIAL.— 
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(i) IN
GENERAL.—The difference in 
the costs between the benefits which would 
have been provided by the Federal Housing 
Finance Agency and those provided by this 
subsection shall be paid by Ginnie Mae. 
(ii) HEALTH INSURANCE.—If any em-
ployee elects to give up membership in a 
health insurance program or the health in-
surance program is not continued by 
Ginnie Mae, the employee shall be per-
mitted to select an alternate Federal 
health insurance program not later than 
30 days after the date of such election or 
notice, without regard to any other regu-
larly scheduled open season. 
(c) ABOLISHMENT OF FHFA.—Effective upon the 
transfer date under subsection (a)(1)(C), the Federal 
Housing Finance Agency and the position of the Director 
of the Federal Housing Finance Agency are abolished. 
(d) TRANSFER OF PROPERTY AND FACILITIES.—Ef-
fective upon the transfer date under subsection (a)(1)(C), 
all property of the Federal Housing Finance Agency shall 
transfer to Ginnie Mae. 
(e) REFERENCES IN FEDERAL LAW.—On and after 
the transfer date under subsection (a)(1)(C), any ref-
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erence in Federal law to the Director of the Federal Hous-
ing Finance Agency or the Federal Housing Finance 
Agency, in connection with any function of the Director 
of the Federal Housing Finance Agency or the Federal 
Housing Finance Agency transferred under subsection (a), 
shall be deemed a reference to the Director of the Govern-
ment National Mortgage Association or the Government 
National Mortgage Association, as appropriate and con-
sistent with the amendments made by this Act. 
SEC. 103. REGULATION OF MARKET PARTICIPANTS AND 
AGGREGATORS. 
(a) APPROVAL AUTHORITY.—The Platform shall be 
available for use only by originators and aggregators of 
mortgages who meet standards for eligibility for such use, 
as shall be established by the Director of Ginnie Mae (in 
this section referred to as the ‘‘Director’’). 
(b) GENERAL SUPERVISORY AND REGULATORY AU-
THORITY.—Pursuant to the authority under subsection 
(a): 
(1) IN GENERAL.—All market participants and 
participating aggregators shall, to the extent pro-
vided in this section, be subject to the supervision 
and regulation of the Director. 
(2) AUTHORITY OVER MARKET PARTICIPANTS 
AND
PARTICIPATING
AGGREGATORS.—Ginnie Mae 
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shall have general regulatory authority over each 
market participant and participating aggregator and 
shall exercise such general regulatory authority to 
ensure that the purposes of this section are carried 
out. 
(c) PRINCIPAL DUTIES.—Among the principal duties 
of the Director pursuant to subsection (b) shall be— 
(1) to oversee the prudential operations of each 
market participant and participating aggregator; 
and 
(2) to ensure that— 
(A) each market participant and partici-
pating aggregator operates in a safe and sound 
manner, including maintenance of adequate 
capital and internal controls; and 
(B) each market participant and partici-
pating aggregator complies with this section 
and the rules, regulations, guidelines, and or-
ders issued under this section. 
(d) PRUDENTIAL MANAGEMENT AND OPERATIONS 
STANDARDS.— 
(1) ESTABLISHMENT.—The Director shall es-
tablish prudential standards, by regulation or guide-
line, for market participants and participating 
aggregators to— 
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(A) ensure— 
(i) the safety and soundness of mar-
ket 
participants 
and 
participating 
aggregators; and 
(ii) the maintenance of approval 
standards by market participants and par-
ticipating aggregators; and 
(B) minimize the risk presented to the 
Fund. 
(2) RECOGNITION OF DISTINCTIONS.—In car-
rying out the requirement under paragraph (1), the 
Director shall distinguish between prudential stand-
ards for market participants and such standards for 
participating aggregators. 
(e) AUTHORITY TO REQUIRE REPORTS.— 
(1) REGULAR REPORTS.—The Director may re-
quire, by general or specific orders, a market partici-
pant or participating aggregator to submit regular 
reports, including financial statements determined 
on a fair value basis, on the condition (including fi-
nancial condition), management, activities, or oper-
ations of the market participant or participating 
aggregator, as the Director considers appropriate. 
(2) SPECIAL REPORTS.—The Director may re-
quire, by general or specific orders, a market partici-
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pant or participating aggregator to submit special 
reports on any of the topics specified in paragraph 
(1) or any other relevant topics, if, in the judgment 
of the Director, such reports are necessary to carry 
out the purposes of this Act. 
(f) EXAMINATIONS AND AUDITS.—The Director may 
conduct such examinations and audits, including on-site 
examinations and audits, of market participants and par-
ticipating aggregators as the Director considers appro-
priate to ensure compliance with this Act, to determine 
the condition of market participants and participating 
aggregators for the purpose of determining and ensuring 
their financial safety and soundness, and otherwise in any 
case that the Director determines an examination is nec-
essary or appropriate. 
(g) CONFLICT OF INTEREST STANDARDS.—The Di-
rector shall establish standards, by regulation or guideline, 
for market participants and participating aggregators as 
the Director considers appropriate to avoid any conflicts 
of interest among market participants. 
(h) STRESS TESTS FOR SUFFICIENT CAPITAL; CAP-
ITAL STANDARDS.— 
(1) IN GENERAL.—The Director, in consulta-
tion with the Board of Governors of the Federal Re-
serve, shall— 
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(A) establish and carry out such risk-based 
capital tests as appropriate to evaluate whether 
each market participant and participating 
aggregator is maintaining a level of capital suf-
ficient to absorb losses and support operations 
during adverse economic conditions so that they 
do not pose undue risks to their communities, 
other institutions, or the broader economy; and 
(B) establish capital standards for market 
participants 
and 
participating 
aggregators 
based on such tests, which shall include the fol-
lowing classifications: well capitalized, ade-
quately capitalized, undercapitalized, signifi-
cantly undercapitalized, and critically under-
capitalized. 
(2) CAPITAL
STANDARD
REQUIREMENTS.—In 
establishing capital standards under paragraph 
(1)(B), the Director shall— 
(A) ensure that such standards are tailored 
to each type of entity; and 
(B) provide that any securities insured by 
Ginnie Mae under this Act should be given a 
risk-weight of zero. 
(i) ENFORCEMENT.—The Corporation shall have the 
authority to enforce the provisions of this Act with respect 
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to market participants and participating aggregators, in 
the same manner and to the same extent as the Federal 
Deposit Insurance Corporation has with respect to insured 
depository institutions under the provisions of subsections 
(b) through (n) of section 8 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818). 
(j) REQUIREMENT TO MAINTAIN APPROVED STA-
TUS.— 
(1) AUTHORITY TO ISSUE ORDER.—If the Di-
rector determines that a market participant or a 
participating aggregator under this section no longer 
meets the standards for such approval or violates the 
requirements under this Act, including any stand-
ards, regulations, or orders promulgated in accord-
ance with this Act, the Director may— 
(A) suspend or revoke the status of the 
market participant or participating aggregator 
as approved to utilize the Platform; or 
(B) take any other action with respect to 
such market participant or a participating 
aggregator as may be authorized under this 
Act. 
(2) RULE OF CONSTRUCTION.—The suspension 
or revocation of the approved status of a market 
participant or a participating aggregator under this 
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section shall have no effect on the status as an in-
sured security of any security collateralized by eligi-
ble mortgages and insured prior to the suspension or 
revocation. 
(3) PUBLICATION.—The Director shall— 
(A) promptly publish a notice in the Fed-
eral Register upon suspension or revocation of 
the approval of any market participant or a 
participating aggregator; and 
(B) maintain an updated list of such ap-
proved market participants and participating 
aggregators on the website of Ginnie Mae. 
(4) DEFINITION.—In this subsection, the term 
‘‘violate’’ includes any action, taken alone or with 
others, for or toward causing, bringing about, par-
ticipating in, counseling, or aiding or abetting, a vio-
lation of the requirements under this Act. 
(k) RESOLUTION AUTHORITY.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of Federal law, the law of any State, or the 
constitution of any State, the Director shall— 
(A) have the authority to act, in the same 
manner and to the same extent, with respect to 
a 
market 
participant 
or 
participating 
aggregator that the Director determines pursu-
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ant to is classified as critically undercapitalized 
pursuant to subsection (h)(2), as the Federal 
Deposit Insurance Corporation has with respect 
to insured depository institutions under sub-
sections (c) through (s) of section 11 of the 
Federal Deposit Insurance Act (12 U.S.C. 
1821), section 12 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1822), and section 13 of 
the Federal Deposit Insurance Act (12 U.S.C. 
1823), while tailoring such actions to the spe-
cific business model of the market participant 
or participating aggregator, as the case may be, 
as may be necessary to properly exercise such 
authority under this subsection; 
(B) in carrying out any authority provided 
under subparagraph (A), act, in the same man-
ner and to the same extent, with respect to the 
Fund as the Federal Deposit Insurance Cor-
poration may act with respect to the Deposit 
Insurance Fund under the provisions of the 
Federal Deposit Insurance Act set forth in sub-
paragraph (A); and 
(C) consistent with the authorities pro-
vided in subparagraph (A), immediately place 
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an insolvent market participant or participating 
aggregator into receivership. 
(2) 
RULE
OF
CONSTRUCTION.—Notwith-
standing paragraph (1), if an insolvent participating 
aggregator is an insured depository institution or an 
affiliate of an insured depository institution, the Di-
rector shall recommend, in writing, to such partici-
pating aggregator’s appropriate Federal banking 
agency or State banking regulator to resolve such 
participating aggregator pursuant to section 11(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1821(c)) and other appropriate sections of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) 
or appropriate Federal or State law, as applicable. 
(3) LEAST-COST RESOLUTION REQUIRED.—The 
Director may not exercise any authority under para-
graph (1) with respect to any market participant or 
any participating aggregator that is not an insured 
depository institution or an affiliate of an insured 
depository institution, unless— 
(A) the Director determines that the exer-
cise of such authority is necessary to ensure 
proper and continued functioning of the sec-
ondary mortgage market; and 
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(B) the total amount of the expenditures 
by the Director and obligations incurred by the 
Director in connection with the exercise of any 
such authority with respect to such market par-
ticipant or participating aggregator is the least 
costly to the Fund, consistent with the least 
cost approach specified in the Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.), of all 
possible methods for meeting Ginnie Mae’s obli-
gations under this Act and expeditiously con-
cluding its resolution activities. 
(4) TAXPAYER PROTECTION.—The Director, in 
carrying out any authority provided in this sub-
section, shall ensure that any amounts owed to the 
United States, unless the United States agrees or 
consents otherwise, shall have priority following ad-
ministrative expenses of the receiver when satisfying 
unsecured claims against a market participant or 
participating aggregator, or the receiver therefor, 
that are proven to the satisfaction of the receiver. 
SEC. 104. REGULATORY CONSULTATION AND COORDINA-
TION. 
(a) CONSULTATION PERMITTED.—The Director may, 
in carrying out any duty, responsibility, requirement, or 
action authorized under this Act, consult with the Federal 
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regulatory agencies, any individual Federal regulatory 
agency, the Secretary of the Treasury, any State banking 
regulator, any State insurance regulator, and any other 
State agency, as the Director necessary and appropriate. 
(b) COORDINATION REQUIRED.— 
(1) REQUIREMENT.—The Director shall, as ap-
propriate, in carrying out any duty, responsibility, 
requirement, or action authorized under this Act, co-
ordinate with the Federal regulatory agencies, any 
individual Federal regulatory agency, the Secretary 
of the Treasury, any State banking regulator, any 
State insurance regulator, any other State agency. 
(2) MEDIATION WITH FEDERAL AGENCIES.—To 
the extent that the head of any Federal agency de-
termines that any rule, directive, or guidance of 
Ginnie Mae conflicts with a rule, directive, or guid-
ance of such agency and notifies the Director of 
such conflict, the Director shall enter into consulta-
tion with such agency to ensure coordination re-
quired under paragraph (1) of this subsection and 
compliance with subsection (c)(1)(C). 
(c) AVOIDANCE OF DUPLICATION.— 
(1) IN GENERAL.—To the fullest extent pos-
sible, the Director shall— 
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(A) avoid duplication of examination activi-
ties, reporting requirements, and requests for 
information; 
(B) rely on examination reports made by 
other Federal or State regulatory agencies re-
lating to an approved entity and its subsidi-
aries, if any; and 
(C) ensure that market participants and 
participating aggregators are not subject to 
conflicting supervisory demands by Ginnie Mae 
and other Federal regulatory agencies. 
(2) LIMITATION.—The authority of Ginnie Mae 
under this Act and the amendments made by this 
Act to operate the Platform, issue securities, regu-
late 
market 
participants 
and 
participating 
aggregators (including with respect to safety and 
soundness as provided in section 103), and ensure 
the functioning and liquidity of the mortgage market 
may not be construed to authorize Ginnie Mae to 
generally regulate with respect to consumer protec-
tion. 
(d) PROTECTION OF PRIVILEGES.— 
(1) IN GENERAL.—Pursuant to the authorities 
provided under subsections (a) and (b), to facilitate 
the consultative process and coordination, the Direc-
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tor may share information with the Federal regu-
latory agencies, any individual Federal regulatory 
agency, the Secretary of the Treasury, any State 
bank supervisor, any State insurance regulator, any 
other State agency, or any foreign banking author-
ity, on a one-time, regular, or periodic basis, as de-
termined by the Director, regarding the capital as-
sets and liabilities, financial condition, risk manage-
ment practices, or any other practice of any market 
participant or participating aggregator. 
(2) 
PRIVILEGE
PRESERVED.—Information 
shared by the Director pursuant to paragraph (1) 
shall not be construed as waiving, destroying, or oth-
erwise affecting any privilege or confidential status 
that 
any 
market 
participant, 
participating 
aggregator, or any other person may claim with re-
spect to such information under Federal or State 
law as to any person or entity other than such agen-
cies, agency, supervisor, or authority. 
(3) RULE OF CONSTRUCTION.—No provision of 
this subsection may be construed as implying or es-
tablishing that— 
(A) any person waives any privilege appli-
cable to information that is shared or trans-
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ferred under any circumstance to which this 
subsection does not apply; or 
(B) any person would waive any privilege 
applicable to any information by submitting the 
information directly to the Federal regulatory 
agencies, any individual Federal regulatory 
agency, any State bank supervisor, any State 
insurance regulator, any other State agency, or 
any foreign banking authority, but for this sub-
section. 
(e) FEDERAL AGENCY AUTHORITY PRESERVED.— 
Unless otherwise expressly provided by this section, no 
provision of this section shall limit or be construed to 
limit, in any way, the existing authority of any Federal 
agency. 
(f) FEDERAL REGULATORY AGENCY.—For purposes 
of this section, the term ‘‘Federal regulatory agency’’ 
means, individually, the Board of Governors of the Federal 
Reserve System, the Office of the Comptroller of the Cur-
rency, the Federal Deposit Insurance Corporation, the Bu-
reau of Consumer Financial Protection, the National 
Credit Union Administration, the Securities and Exchange 
Commission, the Commodity Futures Trading Commis-
sion, and the Federal Housing Finance Agency. 
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TITLE II—SECURITIZATION AND 
INSURANCE 
SEC. 201. ISSUING PLATFORM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established within 
Ginnie Mae an entity to be known as the Issuing 
Platform (the ‘‘Platform’’), which shall issue stand-
ardized mortgage-backed securities to increase ho-
mogeneity in the eligible securities market. 
(2) AUTHORITIES.—The Platform may— 
(A) make contracts, incur liabilities, and 
borrow money; 
(B) purchase, sell, receive, hold, and use 
real and personal property; 
(C) create, execute, and administer trusts; 
and 
(D) take such actions as the Platform de-
termines are necessary or incidental to carry 
out the Platform’s duties under this Act. 
(b) DELIVERY
OF POOL
TO
THE PLATFORM.—A 
mortgage originator or aggregator that wishes to make use 
of the Platform and have Ginnie Mae insure the securities 
issued by the Platform shall deliver to the Platform a pool 
of eligible mortgage loans. 
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(c) SECURITIZATION.—The Platform shall, upon re-
ceiving a pool of eligible mortgages— 
(1) create standardized mortgage-backed securi-
ties collateralized by such mortgages; and 
(2) transfer the standardized mortgage-backed 
securities to the mortgage originator or aggregator 
from which the Platform received the pool of eligible 
mortgages that are collateralizing the securities or 
the designee of such originator or aggregator. 
(d) STANDARDIZED CRITERIA FOR SECURITIES.—In 
issuing securities under this section, the Platform shall es-
tablish standardized criteria for such securities, includ-
ing— 
(1) uniform loan delivery, servicing, and pooling 
requirements; 
(2) remittance requirements; 
(3) underwriting guidelines and refinance pro-
grams; 
(4) the credit quality of the guarantee provided 
to each security; 
(5) servicing standards and loan repurchase 
policies; 
(6) disclosure policies; 
(7) security terms and features; and 
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(8) standards for the appropriate minimum 
level of diversification for the mortgage loans that 
collateralize such securities, in order to reduce the 
credit risk such securities could pose to the Fund. 
(e) SECURITIZATION
FEE.—The Platform shall 
charge a fee for securitization services provided under this 
section. Such fee shall be set by the Director and shall 
be in an amount sufficient to offset the costs to the Plat-
form of carrying out this section. 
(f) LOAN LIMITS; HOUSING PRICE INDEX.— 
(1) ESTABLISHMENT.—Ginnie Mae shall estab-
lish limitations governing the maximum original 
principal obligation of eligible mortgage loans that 
may collateralize a security issued under this Act. 
(2) CALCULATION OF AMOUNT.—The limitation 
set forth under paragraph (1) shall be calculated 
with respect to the total original principal obligation 
of the eligible mortgage loan and not merely with re-
spect to the amount insured by Ginnie Mae. 
(3) MAXIMUM LIMITS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the maximum limitation 
amount under this paragraph shall not exceed 
$417,000 for a mortgage loan secured by a 1- 
family residence, for a mortgage loan secured 
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by a 2-family residence the limit shall equal 128 
percent of the limit for a mortgage loan secured 
by a 1-family residence, for a mortgage loan se-
cured by a 3-family residence the limit shall 
equal 155 percent of the limit for a mortgage 
loan secured by a 1-family residence, and for a 
mortgage loan secured by a 4-family residence 
the limit shall equal 192 percent of the limit for 
a mortgage loan secured by a 1-family resi-
dence, except that such maximum limitations 
shall be adjusted effective January 1 of each 
year beginning after the effective date of this 
Act, subject to the limitations in this sub-
section. Each adjustment shall be made by add-
ing to each such amount (as it may have been 
previously adjusted) a percentage thereof equal 
to the percentage increase, during the most re-
cent 12-month or 4-quarter period ending be-
fore the time of determining such annual ad-
justment, in the housing price index maintained 
by the Director of the Federal Housing Finance 
Agency pursuant to section 1322 of the Federal 
Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4542). If 
the change in such housing price index during 
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the most recent 12-month or 4-quarter period 
ending before the time of determining such an-
nual adjustment is a decrease, then no adjust-
ment shall be made for the next year, and the 
next upward adjustment shall take into account 
prior declines in the house price index, so that 
any adjustment shall reflect the net change in 
the house price index since the last adjustment. 
Declines in the house price index shall be accu-
mulated and then reduce increases until subse-
quent increases exceed prior declines. 
(B) HIGH-COST AREA LIMITS.—The limita-
tions set forth in subparagraph (A) may be in-
creased by not more than 50 percent with re-
spect to properties located in Alaska, Guam, 
Hawaii, and the Virgin Islands. 
(g) 
AUTHORITY
FOR
LOAN-LEVEL
ENHANCE-
MENT.—With respect to an eligible mortgage loan that is 
or will be contained in a pool of mortgages delivered to 
the Platform, the mortgage originator of such mortgage 
loan may enter into agreements with market participants 
to provide loan-level enhancement of such mortgage loan. 
(h) CERTIFICATION.—Ginnie Mae shall, upon a de-
termination that the Platform is able to efficiently carry 
out the issuance of standardized mortgage-backed securi-
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ties, that there exists a sufficient number of market par-
ticipants to serve as insurers and reinsurers under section 
202, and that the secondary mortgage market has suffi-
cient liquidity to implement the provisions of this Act (and 
the amendments made by this Act) that will take effect 
upon this determination, certify to the Congress that such 
determination has been made. 
(i) DUTY TO SERVE ALL MARKETS.— 
(1) IN GENERAL.—In carrying out its respon-
sibilities under this title, Ginnie Mae shall facilitate 
the broad availability of mortgage credit and sec-
ondary mortgage market financing through fluctua-
tions in the business cycle for single-family and mul-
tifamily lending across all— 
(A) regions; 
(B) localities; 
(C) institutions; 
(D) property types, including housing serv-
ing renters; and 
(E) borrowers. 
(2) REPORT TO CONGRESS.—Ginnie Mae shall, 
quarterly during the 5-year period following the cer-
tification date and semiannually thereafter, issue a 
report to the Congress on— 
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(A) how Ginnie Mae is carrying out the 
duties required under paragraph (1); and 
(B) the extent to which the provisions of 
this title and the programs carried out pursu-
ant to this title are benefitting underserved 
communities. 
(j) EXEMPTION FROM SEC LAWS
AND REGULA-
TIONS.—Standardized mortgage-backed securities issued 
by the Platform shall be exempt from the Federal securi-
ties laws (as defined under section 3(a) of the Securities 
Exchange Act of 1934) and all regulations issued pursu-
ant to such laws. 
(k) AUTHORITY TO USE OTHER ENTITIES IN CASE 
OF PROBLEMS.—During and after the establishment of 
the Platform, if Ginnie Mae determines that operational 
or other problems with the Platform do not permit the 
Platform to operate in a manner that allows the Platform 
to achieve the purposes and obligations of the Platform 
under this section, Ginnie Mae shall have the authority 
to permit the Platform to use other entities other than 
the Platform, including the infrastructure of Fannie Mae 
and Freddie Mac, to perform issuance functions required 
to be performed by the Platform and that are necessary 
for the proper functioning of the secondary mortgage mar-
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ties for which insurance is being provided 
under this Act within 5 years of the date 
on which the Director determines that the 
Platform is fully functioning, and to strive 
to maintain such ratio thereafter, subject 
to clause (ii); and 
(ii) of 2.50 percent of the sum of the 
outstanding principal balance of the securi-
ties for which insurance is being provided 
under this Act within 10 years of the date 
on which the Director determines that the 
Platform is fully functioning, and to strive 
to maintain such ratio at all times there-
after. 
(B) ADJUSTMENT
OF
FEES.—Notwith-
standing subsection (d), Ginnie Mae may raise 
or lower the fee charged for insurance under 
this section in order to maintain the reserve 
balance described under subparagraph (A). 
(3) DEPOSITS.—The Fund shall be credited 
with any fees received by Ginnie Mae in exchange 
for insurance made available under this section. 
(4) PROHIBITED
INVESTMENTS.—Amounts in 
the Fund may not be invested in any— 
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(i) any assets and liabilities of the en-
terprise that the receiver determines are 
necessary to allow the limited-life regulated 
entity to operate independent from the res-
olution of the enterprise shall be trans-
ferred to the limited-life regulated entity; 
and 
(ii) in winding up the affairs of the 
limited-life regulated entity, the remaining 
assets of the limited-life regulated entity 
shall be made available to the successor en-
tities established pursuant to subparagraph 
(C) of this paragraph and to other private 
guarantors engaged in providing insurance 
for eligible mortgage-backed securities in 
accordance with section 202; 
(B) the charter of the enterprise shall be 
repealed pursuant to section 1367(k) of the 
Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 
4617(k)), as amended by section 305; and 
(C) the receiver shall provide for reorga-
nization and chartering of the successor entity 
to the limited life regulated entity for the enter-
prise as an entity established to operate as an 
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