appoint an individual to serve as the Director of the Fed-
eral Housing Finance Agency, as such office is established 
by the amendment made by subsection (a). This sub-
section shall take effect on the date of the enactment of 
this Act. 
SEC. 102. DUTIES AND AUTHORITIES OF DIRECTOR. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4513) is amended by 
striking section 1313 and inserting the following new sec-
tions: 
‘‘SEC. 1313. DUTIES AND AUTHORITIES OF DIRECTOR. 
‘‘(a) DUTIES.— 
‘‘(1) PRINCIPAL DUTIES.—The principal duties 
of the Director shall be— 
‘‘(A) to oversee the operations of each reg-
ulated entity; and 
‘‘(B) to ensure that— 
‘‘(i) each regulated entity operates in 
a safe and sound manner, including main-
tenance of adequate capital and internal 
controls; 
‘‘(ii) the operations and activities of 
each regulated entity foster liquid, effi-
cient, competitive, and resilient national 
housing finance markets that minimize the 
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cost of housing finance (including activities 
relating to mortgages on housing for low- 
and moderate- income families involving a 
reasonable economic return that may be 
less than the return earned on other activi-
ties); 
‘‘(iii) each regulated entity complies 
with this title and the rules, regulations, 
guidelines, and orders issued under this 
title and the authorizing statutes; and 
‘‘(iv) each regulated entity carries out 
its statutory mission only through activi-
ties that are consistent with this title and 
the authorizing statutes. 
‘‘(2) SCOPE OF AUTHORITY.—The authority of 
the Director shall include the authority— 
‘‘(A) to review and, if warranted based on 
the principal duties described in paragraph (1), 
reject any acquisition or transfer of a control-
ling interest in an enterprise; and 
‘‘(B) to exercise such incidental powers as 
may be necessary or appropriate to fulfill the 
duties and responsibilities of the Director in the 
supervision and regulation of each regulated en-
tity. 
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‘‘(b) DELEGATION
OF AUTHORITY.—The Director 
may delegate to officers or employees of the Agency, in-
cluding each of the Deputy Directors, any of the functions, 
powers, or duties of the Director, as the Director considers 
appropriate. 
‘‘(c) LITIGATION AUTHORITY.— 
‘‘(1) IN GENERAL.—In enforcing any provision 
of this title, any regulation or order prescribed under 
this title, or any other provision of law, rule, regula-
tion, or order, or in any other action, suit, or pro-
ceeding to which the Director is a party or in which 
the Director is interested, and in the administration 
of conservatorships and receiverships, the Director 
may act in the Director’s own name and through the 
Director’s own attorneys, or request that the Attor-
ney General of the United States act on behalf of 
the Director. 
‘‘(2) CONSULTATION
WITH
ATTORNEY
GEN-
ERAL.—The Director shall provide notice to, and 
consult with, the Attorney General of the United 
States before taking an action under paragraph (1) 
of this subsection or under section 1344(a), 1345(d), 
1348(c), 1372(e), 1375(a), 1376(d), or 1379D(c), 
except that, if the Director determines that any 
delay caused by such prior notice and consultation 
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may adversely affect the safety and soundness re-
sponsibilities of the Director under this title, the Di-
rector shall notify the Attorney General as soon as 
reasonably possible after taking such action. 
‘‘(3) SUBJECT TO SUIT.—Except as otherwise 
provided by law, the Director shall be subject to suit 
(other than suits on claims for money damages) by 
a regulated entity or director or officer thereof with 
respect to any matter under this title or any other 
applicable provision of law, rule, order, or regulation 
under this title, in the United States district court 
for the judicial district in which the regulated entity 
has its principal place of business, or in the United 
States District Court for the District of Columbia, 
and the Director may be served with process in the 
manner prescribed by the Federal Rules of Civil 
Procedure. 
‘‘SEC. 1313A. PRUDENTIAL MANAGEMENT AND OPERATIONS 
STANDARDS. 
‘‘(a) STANDARDS.—The Director shall establish 
standards, by regulation, guideline, or order, for each reg-
ulated entity relating to— 
‘‘(1) adequacy of internal controls and informa-
tion systems taking into account the nature and 
scale of business operations; 
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‘‘(2) independence and adequacy of internal 
audit systems; 
‘‘(3) management of credit and counterparty 
risk, including systems to identify concentrations of 
credit risk and prudential limits to restrict exposure 
of the regulated entity to a single counterparty or 
groups of related counterparties; 
‘‘(4) management of interest rate risk exposure; 
‘‘(5) management of market risk, including 
standards that provide for systems that accurately 
measure, monitor, and control market risks and, as 
warranted, that establish limitations on market risk; 
‘‘(6) adequacy and maintenance of liquidity and 
reserves; 
‘‘(7) management of any asset and investment 
portfolio; 
‘‘(8) investments and acquisitions by a regu-
lated entity, to ensure that they are consistent with 
the purposes of this Act and the authorizing stat-
utes; 
‘‘(9) maintenance of adequate records, in ac-
cordance with consistent accounting policies and 
practices that enable the Director to evaluate the fi-
nancial condition of the regulated entity; 
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‘‘(10) issuance of subordinated debt by that 
particular regulated entity, as the Director considers 
necessary; 
‘‘(11) overall risk management processes, in-
cluding adequacy of oversight by senior management 
and the board of directors and of processes and poli-
cies to identify, measure, monitor, and control mate-
rial risks, including reputational risks, and for ade-
quate, well-tested business resumption plans for all 
major systems with remote site facilities to protect 
against disruptive events; and 
‘‘(12) such other operational and management 
standards as the Director determines to be appro-
priate. 
‘‘(b) FAILURE TO MEET STANDARDS.— 
‘‘(1) PLAN REQUIREMENT.— 
‘‘(A) IN GENERAL.—If the Director deter-
mines that a regulated entity fails to meet any 
standard established under subsection (a)— 
‘‘(i) if such standard is established by 
regulation, the Director shall require the 
regulated entity to submit an acceptable 
plan to the Director within the time al-
lowed under subparagraph (C); and 
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‘‘(ii) if such standard is established by 
guideline, the Director may require the 
regulated entity to submit a plan described 
in clause (i). 
‘‘(B) 
CONTENTS.—Any 
plan 
required 
under subparagraph (A) shall specify the ac-
tions that the regulated entity will take to cor-
rect the deficiency. If the regulated entity is 
undercapitalized, the plan may be a part of the 
capital restoration plan for the regulated entity 
under section 1369C. 
‘‘(C) DEADLINES
FOR
SUBMISSION
AND 
REVIEW.—The Director shall by regulation es-
tablish deadlines that— 
‘‘(i) provide the regulated entities with 
reasonable time to submit plans required 
under subparagraph (A), and generally re-
quire a regulated entity to submit a plan 
not later than 30 days after the Director 
determines that the entity fails to meet 
any standard established under subsection 
(a); and 
‘‘(ii) require the Director to act on 
plans expeditiously, and generally not later 
than 30 days after the plan is submitted. 
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‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB-
MIT OR IMPLEMENT PLAN.—If a regulated entity 
fails to submit an acceptable plan within the time al-
lowed under paragraph (1)(C), or fails in any mate-
rial respect to implement a plan accepted by the Di-
rector, the following shall apply: 
‘‘(A) REQUIRED
CORRECTION
OF
DEFI-
CIENCY.—The Director shall, by order, require 
the regulated entity to correct the deficiency. 
‘‘(B) OTHER
AUTHORITY.—The Director 
may, by order, take one or more of the fol-
lowing actions until the deficiency is corrected: 
‘‘(i) Prohibit the regulated entity from 
permitting its average total assets (as such 
term is defined in section 1316(b)) during 
any calendar quarter to exceed its average 
total assets during the preceding calendar 
quarter, or restrict the rate at which the 
average total assets of the entity may in-
crease from one calendar quarter to an-
other. 
‘‘(ii) Require the regulated entity— 
‘‘(I) in the case of an enterprise, 
to increase its ratio of core capital to 
assets. 
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‘‘(II) in the case of a Federal 
home loan bank, to increase its ratio 
of total capital (as such term is de-
fined in section 6(a)(5) of the Federal 
Home Loan Bank Act (12 U.S.C. 
1426(a)(5)) to assets. 
‘‘(iii) Require the regulated entity to 
take any other action that the Director de-
termines will better carry out the purposes 
of this section than any of the actions de-
scribed in this subparagraph. 
‘‘(3) MANDATORY
RESTRICTIONS.—In com-
plying with paragraph (2), the Director shall take 
one or more of the actions described in clauses (i) 
through (iii) of paragraph (2)(B) if— 
‘‘(A) the Director determines that the reg-
ulated entity fails to meet any standard pre-
scribed under subsection (a); 
‘‘(B) the regulated entity has not corrected 
the deficiency; and 
‘‘(C) during the 18-month period before 
the date on which the regulated entity first 
failed to meet the standard, the entity under-
went extraordinary growth, as defined by the 
Director. 
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‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT AF-
FECTED.—The authority of the Director under this sec-
tion is in addition to any other authority of the Director.’’. 
(b) INDEPENDENCE IN CONGRESSIONAL TESTIMONY 
AND RECOMMENDATIONS.—Section 111 of Public Law 
93–495 (12 U.S.C. 250) is amended by striking ‘‘the Fed-
eral Housing Finance Board’’ and inserting ‘‘the Director 
of the Federal Housing Finance Agency’’. 
SEC. 103. FEDERAL HOUSING ENTERPRISE BOARD. 
(a) IN GENERAL.—Title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4501 et 
seq.) is amended by inserting after section 1313A, as 
added by section 102 of this Act, the following new sec-
tion: 
‘‘SEC. 1313B. FEDERAL HOUSING ENTERPRISE BOARD. 
‘‘(a) IN GENERAL.—There is established the Federal 
Housing Enterprise Board, which shall advise the Director 
with respect to overall strategies and policies in carrying 
out the duties of the Director under this title. 
‘‘(b) LIMITATIONS.—The Board may not exercise any 
executive authority, and the Director may not delegate to 
the Board any of the functions, powers, or duties of the 
Director. 
‘‘(c) COMPOSITION.—The Board shall be comprised 
of 3 members, of whom— 
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‘‘(1) one member shall be the Secretary of the 
Treasury; 
‘‘(2) one member shall be the Secretary of 
Housing and Urban Development; and 
‘‘(3) one member shall be the Director, who 
shall serve as the Chairperson of the Board. 
‘‘(d) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet upon 
notice by the Director, but in no event shall the 
Board meet less frequently than once every 3 
months. 
‘‘(2) SPECIAL MEETINGS.—Either the Secretary 
of the Treasury or the Secretary of Housing and 
Urban Development may, upon giving written notice 
to the Director, require a special meeting of the 
Board. 
‘‘(e) TESTIMONY.—On an annual basis, the Board 
shall testify before Congress regarding— 
‘‘(1) the safety and soundness of the regulated 
entities; 
‘‘(2) any material deficiencies in the conduct of 
the operations of the regulated entities; 
‘‘(3) the overall operational status of the regu-
lated entities; 
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‘‘(4) an evaluation of the performance of the 
regulated entities in carrying out their respective 
missions; 
‘‘(5) operations, resources, and performance of 
the Agency; and 
‘‘(6) such other matters relating to the Agency 
and its fulfillment of its mission, as the Board deter-
mines appropriate.’’. 
(b) ANNUAL REPORT OF THE DIRECTOR.—Section 
1319B(a) of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4521 (a)) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; and 
(2) by striking paragraph (4) and inserting the 
following new paragraphs: 
‘‘(4) an assessment of the Board or any of its 
members with respect to— 
‘‘(A) the safety and soundness of the regu-
lated entities; 
‘‘(B) any material deficiencies in the con-
duct of the operations of the regulated entities; 
‘‘(C) the overall operational status of the 
regulated entities; and 
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‘‘(D) an evaluation of the performance of 
the regulated entities in carrying out their mis-
sions; 
‘‘(5) operations, resources, and performance of 
the Agency; and 
‘‘(6) such other matters relating to the Agency 
and its fulfillment of its mission.’’. 
SEC. 104. AUTHORITY TO REQUIRE REPORTS BY REGU-
LATED ENTITIES. 
Section 1314 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4514) is amended— 
(1) in the section heading, by striking ‘‘ENTER-
PRISES’’ and inserting ‘‘REGULATED ENTITIES’’; 
(2) in subsection (a)— 
(A) in the subsection heading, by striking 
‘‘Special Reports and Reports of Financial Con-
dition’’ and inserting ‘‘Regular and Special Re-
ports’’; 
(B) in paragraph (1)— 
(i) in the paragraph heading, by strik-
ing ‘‘FINANCIAL CONDITION’’ and inserting 
‘‘REGULAR REPORTS’’; and 
(ii) by striking ‘‘reports of financial 
condition and operations’’ and inserting 
‘‘regular reports on the condition (includ-
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ing financial condition), management, ac-
tivities, or operations of the regulated enti-
ty, as the Director considers appropriate’’; 
and 
(C) in paragraph (2), after ‘‘submit special 
reports’’ insert ‘‘on any of the topics specified 
in paragraph (1) or such other topics’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(c) REPORTS OF FRAUDULENT FINANCIAL TRANS-
ACTIONS.— 
‘‘(1) REQUIREMENT TO REPORT.—The Director 
shall require a regulated entity to submit to the Di-
rector a timely report upon discovery by the regu-
lated entity that it has purchased or sold a fraudu-
lent loan or financial instrument or suspects a pos-
sible fraud relating to a purchase or sale of any loan 
or financial instrument. The Director shall require 
the regulated entities to establish and maintain pro-
cedures designed to discover any such transactions. 
‘‘(2) PROTECTION
FROM
LIABILITY
FOR
RE-
PORTS.— 
‘‘(A) IN GENERAL.—If a regulated entity 
makes a report pursuant to paragraph (1), or 
a regulated entity-affiliated party makes, or re-
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quires another to make, such a report, and such 
report is made in a good faith effort to comply 
with the requirements of paragraph (1), such 
regulated entity or regulated entity-affiliated 
party shall not be liable to any person under 
any law or regulation of the United States, any 
constitution, law, or regulation of any State or 
political subdivision of any State, or under any 
contract or other legally enforceable agreement 
(including any arbitration agreement), for such 
report or for any failure to provide notice of 
such report to the person who is the subject of 
such report or any other person identified in 
the report. 
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as creating— 
‘‘(i) any inference that the term ‘per-
son’, as used in such subparagraph, may 
be construed more broadly than its ordi-
nary usage so as to include any govern-
ment or agency of government; or 
‘‘(ii) any immunity against, or other-
wise affecting, any civil or criminal action 
brought by any government or agency of 
government to enforce any constitution, 
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law, or regulation of such government or 
agency.’’. 
SEC. 105. DISCLOSURE OF CHARITABLE CONTRIBUTIONS 
BY ENTERPRISES. 
Section 1314 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4514), as amended by 
the preceding provisions of this Act, is further amended 
by adding at the end the following new subsection: 
‘‘(d) DISCLOSURE OF CHARITABLE CONTRIBUTIONS 
BY ENTERPRISES.— 
‘‘(1) REQUIRED
DISCLOSURE.—The Director 
shall, by regulation, require each enterprise to sub-
mit a report annually, in a format designated by the 
Director, containing the following information: 
‘‘(A) TOTAL VALUE.—The total value of 
contributions made by the enterprise to non-
profit organizations during its previous fiscal 
year. 
‘‘(B) SUBSTANTIAL
CONTRIBUTIONS.—If 
the value of contributions made by the enter-
prise to any nonprofit organization during its 
previous fiscal year exceeds the designated 
amount, the name of that organization and the 
value of contributions. 
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‘‘(C) SUBSTANTIAL CONTRIBUTIONS TO IN-
SIDER-AFFILIATED
CHARITIES.—Identification 
of each contribution whose value exceeds the 
designated amount that were made by the en-
terprise during the enterprise’s previous fiscal 
year to any nonprofit organization of which a 
director, officer, or controlling person of the en-
terprise, or a spouse thereof, was a director or 
trustee, the name of such nonprofit organiza-
tion, and the value of the contribution. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) the term ‘designated amount’ means 
such amount as may be designated by the Di-
rector by regulation, consistent with the public 
interest and the protection of investors for pur-
poses of this subsection; and 
‘‘(B) the Director may, by such regulations 
as the Director deems necessary or appropriate 
in the public interest, define the terms officer 
and controlling person. 
‘‘(3) PUBLIC
AVAILABILITY.—The Director 
shall make the information submitted pursuant to 
this subsection publicly available.’’. 
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SEC. 106. ASSESSMENTS. 
Section 1316 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4516) is amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) ANNUAL ASSESSMENTS.—The Director shall es-
tablish and collect from the regulated entities annual as-
sessments in an amount not exceeding the amount suffi-
cient to provide for reasonable costs and expenses of the 
Agency, including— 
‘‘(1) the expenses of any examinations under 
section 1317 of this Act and under section 20 of the 
Federal Home Loan Bank Act; 
‘‘(2) the expenses of obtaining any reviews and 
credit assessments under section 1319; and 
‘‘(3) such amounts in excess of actual expenses 
for any given year as deemed necessary by the Di-
rector to maintain a working capital fund in accord-
ance with subsection (e).’’; 
(2) in subsection (b)— 
(A) in the subsection heading, by striking 
‘‘ENTERPRISES’’ and inserting ‘‘REGULATED 
ENTITIES’’ ; 
(B) by realigning paragraph (2) two ems 
from the left margin, so as to align the left 
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