H. R. 1424—27 
(2) the cost of a modification of a troubled asset or guar-
antee of a troubled asset shall be the difference between the 
current estimate consistent with paragraph (1) under the terms 
of the troubled asset or guarantee of the troubled asset and 
the current estimate consistent with paragraph (1) under the 
terms of the troubled asset or guarantee of the troubled asset, 
as modified. 
SEC. 124. HOPE FOR HOMEOWNERS AMENDMENTS. 
Section 257 of the National Housing Act (12 U.S.C. 1715z– 
23) is amended— 
(1) in subsection (e)— 
(A) in paragraph (1)(B), by inserting before ‘‘a ratio’’ 
the following: ‘‘, or thereafter is likely to have, due to 
the terms of the mortgage being reset,’’; 
(B) in paragraph (2)(B), by inserting before the period 
at the end ‘‘(or such higher percentage as the Board deter-
mines, in the discretion of the Board)’’; 
(C) in paragraph (4)(A)— 
(i) in the first sentence, by inserting after ‘‘insured 
loan’’ the following: ‘‘and any payments made under 
this paragraph,’’; and 
(ii) by adding at the end the following: ‘‘Such 
actions may include making payments, which shall 
be accepted as payment in full of all indebtedness 
under the eligible mortgage, to any holder of an 
existing subordinate mortgage, in lieu of any future 
appreciation payments authorized under subparagraph 
(B).’’; and 
(2) in subsection (w), by inserting after ‘‘administrative 
costs’’ the following: ‘‘and payments pursuant to subsection 
(e)(4)(A)’’. 
SEC. 125. CONGRESSIONAL OVERSIGHT PANEL. 
(a) ESTABLISHMENT.—There is hereby established the Congres-
sional Oversight Panel (hereafter in this section referred to as 
the ‘‘Oversight Panel’’) as an establishment in the legislative branch. 
(b) DUTIES.—The Oversight Panel shall review the current state 
of the financial markets and the regulatory system and submit 
the following reports to Congress: 
(1) REGULAR REPORTS.— 
(A) IN
GENERAL.—Regular reports of the Oversight 
Panel shall include the following: 
(i) The use by the Secretary of authority under 
this Act, including with respect to the use of con-
tracting authority and administration of the program. 
(ii) The impact of purchases made under the Act 
on the financial markets and financial institutions. 
(iii) The extent to which the information made 
available on transactions under the program has 
contributed to market transparency. 
(iv) The effectiveness of foreclosure mitigation 
efforts, and the effectiveness of the program from the 
standpoint of minimizing long-term costs to the tax-
payers and maximizing the benefits for taxpayers. 
(B) TIMING.—The reports required under this para-
graph shall be submitted not later than 30 days after
H. R. 1424—28 
the first exercise by the Secretary of the authority under 
section 101(a) or 102, and every 30 days thereafter. 
(2) SPECIAL REPORT ON REGULATORY REFORM.—The Over-
sight Panel shall submit a special report on regulatory reform 
not later than January 20, 2009, analyzing the current state 
of the regulatory system and its effectiveness at overseeing 
the participants in the financial system and protecting con-
sumers, and providing recommendations for improvement, 
including recommendations regarding whether any participants 
in the financial markets that are currently outside the regu-
latory system should become subject to the regulatory system, 
the rationale underlying such recommendation, and whether 
there are any gaps in existing consumer protections. 
(c) MEMBERSHIP.— 
(1) IN GENERAL.—The Oversight Panel shall consist of 5 
members, as follows: 
(A) 1 member appointed by the Speaker of the House 
of Representatives. 
(B) 1 member appointed by the minority leader of 
the House of Representatives. 
(C) 1 member appointed by the majority leader of 
the Senate. 
(D) 1 member appointed by the minority leader of 
the Senate. 
(E) 1 member appointed by the Speaker of the House 
of Representatives and the majority leader of the Senate, 
after consultation with the minority leader of the Senate 
and the minority leader of the House of Representatives. 
(2) PAY.—Each member of the Oversight Panel shall each 
be paid at a rate equal to the daily equivalent of the annual 
rate of basic pay for level I of the Executive Schedule for 
each day (including travel time) during which such member 
is engaged in the actual performance of duties vested in the 
Commission. 
(3) 
PROHIBITION
OF
COMPENSATION
OF
FEDERAL 
EMPLOYEES.—Members of the Oversight Panel who are full- 
time officers or employees of the United States or Members 
of Congress may not receive additional pay, allowances, or 
benefits by reason of their service on the Oversight Panel. 
(4) TRAVEL EXPENSES.—Each member shall receive travel 
expenses, including per diem in lieu of subsistence, in accord-
ance with applicable provisions under subchapter I of chapter 
57 of title 5, United States Code. 
(5) QUORUM.—Four members of the Oversight Panel shall 
constitute a quorum but a lesser number may hold hearings. 
(6) VACANCIES.—A vacancy on the Oversight Panel shall 
be filled in the manner in which the original appointment 
was made. 
(7) MEETINGS.—The Oversight Panel shall meet at the 
call of the Chairperson or a majority of its members. 
(d) STAFF.— 
(1) IN GENERAL.—The Oversight Panel may appoint and 
fix the pay of any personnel as the Commission considers 
appropriate. 
(2) EXPERTS AND CONSULTANTS.—The Oversight Panel may 
procure temporary and intermittent services under section 
3109(b) of title 5, United States Code.