transferred out of the ownership or control of the Fed-
eral Government; or 
(2) the date of expiration of the last insurance 
contract issued under section 102. 
SEC. 106. RIGHTS; MANAGEMENT; SALE OF TROUBLED AS-
SETS; REVENUES AND SALE PROCEEDS. 
(a) EXERCISE OF RIGHTS.—The Secretary may, at 
any time, exercise any rights received in connection with 
troubled assets purchased under this Act. 
(b) MANAGEMENT OF TROUBLED ASSETS.—The Sec-
retary shall have authority to manage troubled assets pur-
chased under this Act, including revenues and portfolio 
risks therefrom. 
(c) SALE OF TROUBLED ASSETS.—The Secretary may, 
at any time, upon terms and conditions and at a price de-
termined by the Secretary, sell, or enter into securities 
loans, repurchase transactions, or other financial trans-
actions in regard to, any troubled asset purchased under 
this Act. 
(d) TRANSFER TO TREASURY.—Revenues of, and pro-
ceeds from the sale of troubled assets purchased under this 
Act, or from the sale, exercise, or surrender of warrants or 
senior debt instruments acquired under section 113 shall 
be paid into the general fund of the Treasury for reduction 
of the public debt.
(e) APPLICATION
OF SUNSET
TO TROUBLED AS-
SETS.—The authority of the Secretary to hold any troubled 
asset purchased under this Act before the termination date 
in section 120, or to purchase or fund the purchase of a 
troubled asset under a commitment entered into before the 
termination date in section 120, is not subject to the provi-
sions of section 120. 
SEC. 107. CONTRACTING PROCEDURES. 
(a) STREAMLINED PROCESS.—For purposes of this 
Act, the Secretary may waive specific provisions of the Fed-
eral Acquisition Regulation upon a determination that ur-
gent and compelling circumstances make compliance with 
such provisions contrary to the public interest. Any such 
determination, and the justification for such determination, 
shall be submitted to the Committees on Oversight and Gov-
ernment Reform and Financial Services of the House of 
Representatives and the Committees on Homeland Security 
and Governmental Affairs and Banking, Housing, and 
Urban Affairs of the Senate within 7 days. 
(b) ADDITIONAL CONTRACTING REQUIREMENTS.—In 
any solicitation or contract where the Secretary has, pursu-
ant to subsection (a), waived any provision of the Federal 
Acquisition Regulation pertaining to minority contracting, 
the Secretary shall develop and implement standards and 
procedures to ensure, to the maximum extent practicable,
the inclusion and utilization of minorities (as such term 
is defined in section 1204(c) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
1811 note)) and women, and minority- and women-owned 
businesses (as such terms are defined in section 21A(r)(4) 
of the Federal Home Loan Bank Act (12 U.S.C. 
1441a(r)(4)), in that solicitation or contract, including con-
tracts to asset managers, servicers, property managers, and 
other service providers or expert consultants. 
(c) ELIGIBILITY
OF FDIC.—Notwithstanding sub-
sections (a) and (b), the Corporation— 
(1) shall be eligible for, and shall be considered 
in, the selection of asset managers for residential 
mortgage loans and residential mortgage-backed secu-
rities; and 
(2) shall be reimbursed by the Secretary for any 
services provided. 
SEC. 108. CONFLICTS OF INTEREST. 
(a) STANDARDS REQUIRED.—The Secretary shall issue 
regulations or guidelines necessary to address and manage 
or to prohibit conflicts of interest that may arise in connec-
tion with the administration and execution of the authori-
ties provided under this Act, including— 
(1) conflicts arising in the selection or hiring of 
contractors or advisors, including asset managers;
(2) the purchase of troubled assets; 
(3) the management of the troubled assets held; 
(4) post-employment restrictions on employees; 
and 
(5) any other potential conflict of interest, as the 
Secretary deems necessary or appropriate in the pub-
lic interest. 
(b) TIMING.—Regulations or guidelines required by 
this section shall be issued as soon as practicable after the 
date of enactment of this Act. 
SEC. 109. FORECLOSURE MITIGATION EFFORTS. 
(a) 
RESIDENTIAL
MORTGAGE
LOAN
SERVICING 
STANDARDS.—To the extent that the Secretary acquires 
mortgages, mortgage backed securities, and other assets se-
cured by residential real estate, including multifamily 
housing, the Secretary shall implement a plan that seeks 
to maximize assistance for homeowners and use the author-
ity of the Secretary to encourage the servicers of the under-
lying mortgages, considering net present value to the tax-
payer, to take advantage of the HOPE for Homeowners 
Program under section 257 of the National Housing Act 
or other available programs to minimize foreclosures. In ad-
dition, the Secretary may use loan guarantees and credit 
enhancements to facilitate loan modifications to prevent 
avoidable foreclosures.
(b) COORDINATION.—The Secretary shall coordinate 
with the Corporation, the Board (with respect to any mort-
gage or mortgage-backed securities or pool of securities held, 
owned, or controlled by or on behalf of a Federal reserve 
bank, as provided in section 110(a)(1)(C)), the Federal 
Housing Finance Agency, the Secretary of Housing and 
Urban Development, and other Federal Government entities 
that hold troubled assets to attempt to identify opportuni-
ties for the acquisition of classes of troubled assets that will 
improve the ability of the Secretary to improve the loan 
modification and restructuring process and, where permis-
sible, to permit bona fide tenants who are current on their 
rent to remain in their homes under the terms of the lease. 
In the case of a mortgage on a residential rental property, 
the plan required under this section shall include protecting 
Federal, State, and local rental subsidies and protections, 
and ensuring any modification takes into account the need 
for operating funds to maintain decent and safe conditions 
at the property. 
(c) CONSENT TO REASONABLE LOAN MODIFICATION 
REQUESTS.—Upon any request arising under existing in-
vestment contracts, the Secretary shall consent, where ap-
propriate, and considering net present value to the tax-
payer, to reasonable requests for loss mitigation measures, 
including term extensions, rate reductions, principal write
downs, increases in the proportion of loans within a trust 
or other structure allowed to be modified, or removal of 
other limitation on modifications. 
SEC. 110. ASSISTANCE TO HOMEOWNERS. 
(a) DEFINITIONS.—As used in this section— 
(1) the term ‘‘Federal property manager’’ 
means— 
(A) the Federal Housing Finance Agency, 
in its capacity as conservator of the Federal Na-
tional Mortgage Association and the Federal 
Home Loan Mortgage Corporation; 
(B) the Corporation, with respect to resi-
dential mortgage loans and mortgage-backed se-
curities held by any bridge depository institution 
pursuant to section 11(n) of the Federal Deposit 
Insurance Act; and 
(C) the Board, with respect to any mortgage 
or mortgage-backed securities or pool of securities 
held, owned, or controlled by or on behalf of a 
Federal reserve bank, other than mortgages or se-
curities held, owned, or controlled in connection 
with open market operations under section 14 of 
the Federal Reserve Act (12 U.S.C. 353), or as 
collateral for an advance or discount that is not 
in default;
(2) the term ‘‘consumer’’ has the same meaning 
as in section 103 of the Truth in Lending Act (15 
U.S.C. 1602); 
(3) the term ‘‘insured depository institution’’ has 
the same meaning as in section 3 of the Federal De-
posit Insurance Act (12 U.S.C. 1813); and 
(4) the term ‘‘servicer’’ has the same meaning as 
in section 6(i)(2) of the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2605(i)(2)). 
(b) HOMEOWNER ASSISTANCE BY AGENCIES.— 
(1) IN GENERAL.—To the extent that the Federal 
property manager holds, owns, or controls mortgages, 
mortgage backed securities, and other assets secured 
by residential real estate, including multifamily hous-
ing, the Federal property manager shall implement a 
plan that seeks to maximize assistance for home-
owners and use its authority to encourage the 
servicers of the underlying mortgages, and considering 
net present value to the taxpayer, to take advantage 
of the HOPE for Homeowners Program under section 
257 of the National Housing Act or other available 
programs to minimize foreclosures. 
(2) MODIFICATIONS.—In the case of a residential 
mortgage loan, modifications made under paragraph 
(1) may include—
(A) reduction in interest rates; 
(B) reduction of loan principal; and 
(C) other similar modifications. 
(3) TENANT PROTECTIONS.—In the case of mort-
gages on residential rental properties, modifications 
made under paragraph (1) shall ensure— 
(A) the continuation of any existing Fed-
eral, State, and local rental subsidies and protec-
tions; and 
(B) that modifications take into account the 
need for operating funds to maintain decent and 
safe conditions at the property. 
(4) TIMING.—Each Federal property manager 
shall develop and begin implementation of the plan 
required by this subsection not later than 60 days 
after the date of enactment of this Act. 
(5) REPORTS
TO
CONGRESS.—Each Federal 
property manager shall, 60 days after the date of en-
actment of this Act and every 30 days thereafter, re-
port to Congress specific information on the number 
and types of loan modifications made and the number 
of actual foreclosures occurring during the reporting 
period in accordance with this section. 
(6) CONSULTATION.—In developing the plan re-
quired by this subsection, the Federal property man-