portant to the fulfillment of his or her fiduciary du-
ties and obligations. 
‘‘(6) ANNUAL REVIEW.—At least annually, the 
board of directors of each enterprise shall review, with 
appropriate professional assistance, the requirements 
of laws, rules, regulations, and guidelines that are ap-
plicable to its activities and duties. 
‘‘(b) COMMITTEES OF BOARDS OF DIRECTORS.— 
‘‘(1) FREQUENCY OF MEETINGS.—Any committee 
of the board of directors of an enterprise shall meet 
with sufficient frequency to carry out its obligations 
and duties under applicable laws, rules, regulations, 
and guidelines. 
‘‘(2) REQUIRED COMMITTEES.—Each enterprise 
shall provide for the establishment, however styled, of 
the following committees of the board of directors: 
‘‘(A) Audit committee. 
‘‘(B) Compensation committee. 
‘‘(C) Nominating/corporate governance com-
mittee. 
Such committees shall be in compliance with the 
charter, independence, composition, expertise, duties, 
responsibilities, and other requirements set forth 
under section 10A(m) of the Securities Exchange Act 
of 1934 (15 U.S.C. 78j–1(m)), with respect to the
audit committee, and under rules issued by the New 
York Stock Exchange, as such rules may be amended 
from time to time. 
‘‘(c) COMPENSATION.— 
‘‘(1) IN GENERAL.—The compensation of board 
members, executive officers, and employees of an en-
terprise— 
‘‘(A) shall not be in excess of that which is 
reasonable and appropriate; 
‘‘(B) shall be commensurate with the duties 
and responsibilities of such persons, 
‘‘(C) shall be consistent with the long-term 
goals of the enterprise; 
‘‘(D) shall not focus solely on earnings per-
formance, but shall take into account risk man-
agement, operational stability and legal and reg-
ulatory compliance as well; and 
‘‘(E) shall be undertaken in a manner that 
complies with applicable laws, rules, and regula-
tions. 
‘‘(2) REIMBURSEMENT.—If an enterprise is re-
quired to prepare an accounting restatement due to 
the material noncompliance of the enterprise, as a re-
sult of misconduct, with any financial reporting re-
quirement under the securities laws, the chief execu-
tive officer and chief financial officer of the enterprise 
shall reimburse the enterprise as provided under sec-
tion 304 of the Sarbanes-Oxley Act of 2002 (15 
U.S.C. 7243). This provision does not otherwise limit 
the authority of the Agency to employ remedies avail-
able to it under its enforcement authorities. 
‘‘(d) CODE OF CONDUCT AND ETHICS.— 
‘‘(1) IN GENERAL.—An enterprise shall establish 
and administer a written code of conduct and ethics 
that is reasonably designed to assure the ability of 
board members, executive officers, and employees of 
the enterprise to discharge their duties and respon-
sibilities, on behalf of the enterprise, in an objective 
and impartial manner, and that includes standards 
required under section 406 of the Sarbanes-Oxley Act 
of 2002 (15 U.S.C. 7264) and other applicable laws, 
rules, and regulations. 
‘‘(2) REVIEW.—Not less than once every three 
years, an enterprise shall review the adequacy of its 
code of conduct and ethics for consistency with prac-
tices appropriate to the enterprise and make any ap-
propriate revisions to such code. 
‘‘(e) CONDUCT AND RESPONSIBILITIES OF BOARD OF 
DIRECTORS.—The board of directors of an enterprise shall 
be responsible for directing the conduct and affairs of the
enterprise in furtherance of the safe and sound operation 
of the enterprise and shall remain reasonably informed of 
the condition, activities, and operations of the enterprise. 
The responsibilities of the board of directors shall include 
having in place adequate policies and procedures to assure 
its oversight of, among other matters, the following: 
‘‘(1) Corporate strategy, major plans of action, 
risk policy, programs for legal and regulatory compli-
ance and corporate performance, including prudent 
plans for growth and allocation of adequate resources 
to manage operations risk. 
‘‘(2) Hiring and retention of qualified executive 
officers and succession planning for such executive of-
ficers. 
‘‘(3) Compensation programs of the enterprise. 
‘‘(4) Integrity of accounting and financial re-
porting systems of the enterprise, including inde-
pendent audits and systems of internal control. 
‘‘(5) Process and adequacy of reporting, disclo-
sures, and communications to shareholders, investors, 
and potential investors. 
‘‘(6) Extensions of credit to board members and 
executive officers. 
‘‘(7) Responsiveness of executive officers in pro-
viding accurate and timely reports to Federal regu-
lators and in addressing the supervisory concerns of 
Federal regulators in a timely and appropriate man-
ner. 
‘‘(f) PROHIBITION OF EXTENSIONS OF CREDIT.—An 
enterprise may not directly or indirectly, including through 
any subsidiary, extend or maintain credit, arrange for the 
extension of credit, or renew an extension of credit, in the 
form of a personal loan to or for any board member or exec-
utive officer of the enterprise, as provided by section 13(k) 
of the Securities Exchange Act of 1934 (15 U.S.C. 78m(k)). 
‘‘(g) CERTIFICATION OF DISCLOSURES.—The chief ex-
ecutive officer and the chief financial officer of an enterprise 
shall review each quarterly report and annual report issued 
by the enterprise and such reports shall include certifi-
cations by such officers as required by section 302 of the 
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7241). 
‘‘(h) CHANGE
OF AUDIT PARTNER.—An enterprise 
may not accept audit services from an external auditing 
firm if the lead or coordinating audit partner who has pri-
mary responsibility for the external audit of the enterprise, 
or the external audit partner who has responsibility for re-
viewing the external audit has performed audit services for 
the enterprise in each of the five previous fiscal years. 
‘‘(i) COMPLIANCE PROGRAM.—
‘‘(1) REQUIREMENT.—Each enterprise shall es-
tablish and maintain a compliance program that is 
reasonably designed to assure that the enterprise com-
plies with applicable laws, rules, regulations, and in-
ternal controls. 
‘‘(2) COMPLIANCE
OFFICER.—The compliance 
program of an enterprise shall be headed by a compli-
ance officer, however styled, who reports directly to 
the chief executive officer of the enterprise. The com-
pliance officer shall report regularly to the board of 
directors or an appropriate committee of the board of 
directors on compliance with and the adequacy of 
current compliance policies and procedures of the en-
terprise, and shall recommend any adjustments to 
such policies and procedures that the compliance offi-
cer considers necessary and appropriate. 
‘‘(j) RISK MANAGEMENT PROGRAM.— 
‘‘(1) REQUIREMENT.—Each enterprise shall es-
tablish and maintain a risk management program 
that is reasonably designed to manage the risks of the 
operations of the enterprise. 
‘‘(2) RISK
MANAGEMENT
OFFICER.—The risk 
management program of an enterprise shall be headed 
by a risk management officer, however styled, who re-
ports directly to the chief executive officer of the enter-
prise. The risk management officer shall report regu-
larly to the board of directors or an appropriate com-
mittee of the board of directors on compliance with 
and the adequacy of current risk management policies 
and procedures of the enterprise, and shall rec-
ommend any adjustments to such policies and proce-
dures that the risk management officer considers nec-
essary and appropriate. 
‘‘(k) COMPLIANCE WITH OTHER LAWS.— 
‘‘(1) DEREGISTERED
OR
UNREGISTERED
COM-
MON STOCK.—If an enterprise deregisters or has not 
registered its common stock with the Securities and 
Exchange Commission under the Securities Exchange 
Act of 1934, the enterprise shall comply or continue 
to comply with sections 10A(m) and 13(k) of the Se-
curities Exchange Act of 1934 (15 U.S.C. 78j-1(m), 
78m(k)) and sections 302, 304, and 406 of the Sar-
banes-Oxley Act of 2002 (15 U.S.C. 7241, 7243, 
7264), subject to such requirements as provided by 
subsection (l) of this section. 
‘‘(2) REGISTERED COMMON STOCK.—An enter-
prise that has its common stock registered with the 
Securities and Exchange Commission shall maintain 
such registered status, unless it provides 60 days 
prior written notice to the Director stating its intent
to deregister and its understanding that it will re-
main subject to the requirements of the sections of the 
Securities Exchange Act of 1934 and the Sarbanes- 
Oxley Act of 2002, subject to such requirements as 
provided by subsection (l) of this section. 
‘‘(l) OTHER MATTERS.—The Director may from time 
to time establish standards, by regulation, order, or guide-
line, regarding such other corporate governance matters of 
the enterprises as the Director considers appropriate. 
‘‘(m) MODIFICATION OF STANDARDS.—In connection 
with standards of Federal or State law (including the Re-
vised Model Corporation Act) or New York Stock Exchange 
rules that are made applicable to an enterprise by section 
1710.10 of the Director’s rules (12 C.F.R. 1710.10) and by 
subsections (a), (b), (g), (i), (j), and (k) of this section, the 
Director, in the Director’s sole discretion, may modify the 
standards contained in this section or in part 1710 of the 
Director’s rules (12 U.S.C. Part 1710) in accordance with 
section 553 of title 5, United States Code, and upon written 
notice to the enterprise.’’. 
SEC. 115. REQUIRED REGISTRATION UNDER SECURITIES 
EXCHANGE ACT OF 1934. 
The Housing and Community Development Act of 
1992 is amended by adding after section 1322A, as added
by the preceding provisions of this Act, the following new 
section: 
‘‘SEC. 1322B. REQUIRED REGISTRATION UNDER SECURITIES 
EXCHANGE ACT OF 1934. 
‘‘(a) IN GENERAL.—Each regulated entity shall reg-
ister at least one class of the capital stock of such regulated 
entity, and maintain such registration with the Securities 
and Exchange Commission, under the Securities Exchange 
Act of 1934. 
‘‘(b) ENTERPRISES.—Each enterprise shall comply 
with sections 14 and 16 of the Securities Exchange Act of 
1934.’’. 
SEC. 116. FINANCIAL INSTITUTIONS EXAMINATION COUN-
CIL. 
The Federal Financial Institutions Examination 
Council Act of 1978 is amended— 
(1) in section 1003 (12 U.S.C. 3302)— 
(A) in paragraph (1), by inserting ‘‘Direc-
tor of the Federal Housing Finance Agency,’’ 
after ‘‘Supervision,’’; and 
(B) in paragraph (3), by striking ‘‘or a 
credit union;’’ and inserting ‘‘a credit union, or 
a regulated entity (as such term is defined in 
section 1303 of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4502)).’’;
(2) in section 1004 (12 U.S.C. 3303)— 
(A) in paragraph (4), by inserting a semi-
colon at the end; 
(B) by redesignating paragraph (5) as 
paragraph (6); and 
(C) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) the Director of the Federal Housing Finance 
Agency; and’’; and 
(3) in section 1006(d) (12 U.S.C. 3305(d)), by 
striking ‘‘and employees of the Federal Housing Fi-
nance Board’’. 
SEC. 117. GUARANTEE FEE STUDY. 
(a) IN GENERAL.—The Comptroller General of the 
United States, in consultation with the heads of the federal 
banking agencies and the Director of the Office of Federal 
Housing Enterprise Oversight of the Department of Hous-
ing and Urban Development, shall, not later than one year 
after the date of the enactment of this Act, submit to the 
Congress a study concerning the pricing, transparency and 
reporting of the Federal National Mortgage Association, the 
Federal Home Loan Mortgage Corporation, and the Federal 
home loan banks with regard to guarantee fees and con-
cerning analogous practices, transparency and reporting 
requirements (including advances pricing practices by the
Federal Home Loan Banks) of other participants in the 
business of mortgage purchases and securitization. 
(b) FACTORS.—The study required by this section shall 
examine various factors such as credit risk, counterparty 
risk considerations, economic value considerations, and vol-
ume considerations used by the regulated entities (as such 
term is defined in section 1303 of the Housing and Commu-
nity Development Act of 1992) included in the study in 
setting the amount of fees they charge. 
(c) CONTENTS
OF REPORT.—The report required 
under subsection (a) shall identify and analyze— 
(1) the factors used by each enterprise (as such 
term is defined in section 1303 of the Housing and 
Community Development Act of 1992) in determining 
the amount of the guarantee fees it charges; 
(2) the total revenue the enterprises earn from 
guarantee fees; 
(3) the total costs incurred by the enterprises for 
providing guarantees; 
(4) the average guarantee fee charged by the en-
terprises; 
(5) an analysis of how and why the guarantee 
fees charged differ from such fees charged during the 
previous year;
(6) a breakdown of the revenue and costs associ-
ated with providing guarantees, based on product 
type and risk classifications; and 
(7) other relevant information on guarantee fees 
with other participants in the mortgage and 
securitization business. 
(d) PROTECTION OF INFORMATION.—Nothing in this 
section may be construed to require or authorize the Govern-
ment Accounting Office, in connection with the study man-
dated by this section, to disclose information of the enter-
prises or other organization that is confidential or propri-
etary. 
SEC. 118. CONFORMING AMENDMENTS. 
(a) 1992 Act.—Part 1 of subtitle A of title XIII of 
the Housing and Community Development Act of 1992 (12 
U.S.C. 4511 et seq.), as amended by the preceding provi-
sions of this Act, is further amended— 
(1) by striking ‘‘an enterprise’’ each place such 
term appears in such part (except in sections 
1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), and 1316(b)(3)) 
and inserting ‘‘a regulated entity’’; 
(2) by striking ‘‘the enterprise’’ each place such 
term appears in such part (except in section 
1316(b)(3)) and inserting ‘‘the regulated entity’’;
(3) by striking ‘‘the enterprises’’ each place such 
term appears in such part (except in sections 
1312(c)(2), 1312(e)(2), and 1319B(a)(4)(D)) and in-
serting ‘‘the regulated entities’’; 
(4) by striking ‘‘each enterprise’’ each place such 
term appears in such part and inserting ‘‘each regu-
lated entity’’; 
(5) by striking ‘‘Office’’ each place such term ap-
pears in such part (except in sections 1312(b)(5), 
1315(b), and 1316(g), and section 1317(c)) and in-
serting ‘‘Agency’’; 
(6) in section 1315 (12 U.S.C. 4515)— 
(A) in subsection (a)— 
(i) in the subsection heading, by strik-
ing ‘‘Office Personnel’’ and inserting ‘‘In 
General’’; and 
(ii) by striking ‘‘The’’ and inserting 
‘‘Subject to titles III and IV of the Federal 
Housing Finance Reform Act of 2005, the’’; 
(B) by striking subsections (d) and (f); and 
(C) by redesignating subsection (e) as sub-
section (d); 
(7) in section 1319A (12 U.S.C. 4520)—
(A) by striking ‘‘(a) In General.—Each en-
terprise’’ and inserting ‘‘Each regulated entity’’; 
and 
(B) by striking subsection (b); 
(8) in section 1319B (12 U.S.C. 4521), by strik-
ing ‘‘Committee on Banking, Finance and Urban Af-
fairs’’ each place such term appears and inserting 
‘‘Committee on Financial Services’’; and 
(9) in section 1319F (12 U.S.C. 4525), striking 
all that follows ‘‘United States Code’’ and inserting ‘‘, 
the Agency shall be considered an agency responsible 
for the regulation or supervision of financial institu-
tions.’’. 
(b) AMENDMENTS TO FANNIE MAE CHARTER ACT.— 
The Federal National Mortgage Association Charter Act (12 
U.S.C. 1716 et seq.) is amended— 
(1) by striking ‘‘Director of the Office of Federal 
Housing Enterprise Oversight of the Department of 
Housing and Urban Development’’ each place such 
term appears, and inserting ‘‘Director of the Federal 
Housing Finance Agency’’, in— 
(A) 
section 
303(c)(2) 
(12 
U.S.C. 
1718(c)(2)); 
(B) 
section 
309(d)(3)(B) 
(12 
U.S.C. 
1723a(d)(3)(B)); and
(C) section 309(k)(1); and 
(2) in section 309— 
(A) in subsections (d)(3)(A) and (n)(1), by 
striking ‘‘Banking, Finance and Urban Affairs’’ 
each place such term appears and inserting ‘‘Fi-
nancial Services’’; and 
(B) in subsection (m)— 
(i) in paragraph (1), by striking ‘‘Sec-
retary’’ the second place such term appears 
and inserting ‘‘Director’’; 
(ii) in paragraph (2), by striking 
‘‘Secretary’’ the second place such term ap-
pears and inserting ‘‘Director’’; and 
(iii) by striking ‘‘Secretary’’ each other 
place such term appears and inserting ‘‘Di-
rector of the Federal Housing Finance 
Agency’’; and 
(C) in subsection (n), by striking ‘‘Sec-
retary’’ each place such term appears and insert-
ing ‘‘Director of the Federal Housing Finance 
Agency’’. 
(c) AMENDMENTS TO FREDDIE MAC ACT.—The Fed-
eral Home Loan Mortgage Corporation Act is amended— 
(1) by striking ‘‘Director of the Office of Federal 
Housing Enterprise Oversight of the Department of
Housing and Urban Development’’ each place such 
term appears, and inserting ‘‘Director of the Federal 
Housing Finance Agency’’, in— 
(A) 
section 
303(b)(2) 
(12 
U.S.C. 
1452(b)(2)); 
(B) 
section 
303(h)(2) 
(12 
U.S.C. 
1452(h)(2)); and 
(C) 
section 
307(c)(1) 
(12 
U.S.C. 
1456(c)(1)); 
(2) in sections 303(h)(1) and 307(f)(1) (12 
U.S.C. 1452(h)(1), 1456(f)(1)), by striking ‘‘Banking, 
Finance and Urban Affairs’’ each place such term ap-
pears and inserting ‘‘Financial Services’’; 
(3) in section 306(i) (12 U.S.C. 1455(i))— 
(A) by striking ‘‘1316(c)’’ and inserting 
‘‘306(c)’’; and 
(B) by striking ‘‘section 106’’ and inserting 
‘‘section 1316’’; and 
(4) in section 307 (12 U.S.C. 1456))— 
(A) in subsection (e)— 
(i) in paragraph (1), by striking ‘‘Sec-
retary’’ the second place such term appears 
and inserting ‘‘Director’’;
(ii) in paragraph (2), by striking 
‘‘Secretary’’ the second place such term ap-
pears and inserting ‘‘Director’’; and 
(iii) by striking ‘‘Secretary’’ each other 
place such term appears and inserting ‘‘Di-
rector of the Federal Housing Finance 
Agency’’; and 
(B) in subsection (f), by striking ‘‘Sec-
retary’’ each place such term appears and insert-
ing ‘‘Director of the Federal Housing Finance 
Agency’’. 
Subtitle B—Improvement of Mission 
Supervision 
SEC. 121. TRANSFER OF PROGRAM AND ACTIVITIES AP-
PROVAL AND HOUSING GOAL OVERSIGHT. 
Part 2 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4541 et 
seq.) is amended— 
(1) by striking the designation and heading for 
the part and inserting the following: 
‘‘PART 2—PROGRAM AND ACTIVITIES APPROVAL 
BY DIRECTOR, CORPORATE GOVERNANCE, 
AND ESTABLISHMENT OF HOUSING GOALS’’; 
and 
(2) by striking sections 1321 and 1322.
SEC. 122. REVIEW BY DIRECTOR OF NEW PROGRAMS AND 
ACTIVITIES OF ENTERPRISES. 
(a) IN GENERAL.—Part 2 of subtitle A of title XIII 
of the Housing and Community Development Act of 1992 
is amended by inserting before section 1323 (12 U.S.C. 
4543) the following new section: 
‘‘SEC. 1321. REVIEW AND APPROVAL BY DIRECTOR OF NEW 
PROGRAMS AND BUSINESS ACTIVITIES OF 
ENTERPRISES. 
‘‘(a) LIMITATION ON AUTHORITY TO UNDERTAKE PRO-
GRAMS AND ACTIVITIES.—An enterprise may not undertake 
any new program, including a pilot program, or any new 
business activity except in accordance with the procedures 
set forth in this section and orders and regulations issued 
under this section. 
‘‘(b) NEW PROGRAMS.— 
‘‘(1) PRIOR APPROVAL REQUIREMENT.—An en-
terprise may not commence any new program before 
it has obtained the approval of the Director, pursuant 
to this subsection, for the new program. 
‘‘(2) APPLICATION.—The Director shall, by order 
or regulation, require that an enterprise shall, to ob-
tain a determination by the Director regarding ap-
proval of a new program by the enterprise, submit to 
the Director a written application for the new pro-
gram in a format as prescribed by the Director.
‘‘(3) NOTICE.—Immediately upon receipt of a 
complete application for a new program, the Director 
shall cause to be published in the Federal Register no-
tice of the receipt of such application and of the pe-
riod for public comment pursuant to paragraph (4) 
regarding such new program, and a description of the 
new program proposed by the application. 
‘‘(4) PUBLIC COMMENT PERIOD.—During the 30- 
day period beginning upon publication pursuant to 
paragraph (3) of a notice regarding such an applica-
tion, the Director shall receive public comments re-
garding the new program. 
‘‘(5) DETERMINATION.—Not less than 15 days 
after the conclusion of the public comment period 
pursuant to paragraph (4) regarding an application 
but not more than 30 days after the conclusion of 
such comment period, the Director shall approve, con-
ditionally approve, or reject such program, in writ-
ing. 
‘‘(6) STANDARD FOR APPROVAL.—The Director 
may approve, or conditionally approve, a new pro-
gram of an enterprise only if the Director determines, 
taking into consideration any relevant information 
and comments received during the public comment 
period, that such new program—
‘‘(A) does not contravene and is not incon-
sistent with the purposes of this title, the Federal 
National Mortgage Association Charter Act, or 
the Federal Home Loan Mortgage Corporation 
Act, as such purposes are determined taking into 
consideration the definitions of the terms ‘mort-
gage loan origination’ and ‘secondary mortgage 
market’ pursuant to section 1303; 
‘‘(B) is not otherwise inconsistent with the 
safety and soundness of the enterprise; and 
‘‘(C) is in the public interest. 
‘‘(7) LIMITATION.—The Director, in imple-
menting this subsection, may not prevent an enter-
prise from continuing to offer the automated loan un-
derwriting system in existence on the date of the en-
actment of the Federal Housing Finance Reform Act 
of 2005 or continuing to engage in counseling and 
education activities. 
‘‘(c) NEW BUSINESS ACTIVITIES.— 
‘‘(1) AUTHORITY
OF
DIRECTOR
TO
PROHIBIT 
NEW BUSINESS ACTIVITIES.—The Director shall have 
authority to prohibit any new business activity by an 
enterprise if the Director determines, in writing, that 
such activity—
‘‘(A) contravenes or is inconsistent with the 
purposes of this title, the Federal National Mort-
gage Association Charter Act, or the Federal 
Home Loan Mortgage Corporation Act; 
‘‘(B) is otherwise inconsistent with the safe-
ty and soundness of the enterprise; or 
‘‘(C) is not in the public interest. 
‘‘(2) NOTIFICATION OF NEW BUSINESS ACTIVI-
TIES.—An enterprise that undertakes any new busi-
ness activity shall provide written notice of the activ-
ity to the Director and may commence the new busi-
ness activity only in accordance with paragraph (4). 
‘‘(3) DIRECTOR DETERMINATION OF APPLICABLE 
PROCEDURE.— 
‘‘(A) TIMING.—Immediately upon receipt of 
any notice under paragraph (2) regarding a new 
business activity, the Director shall undertake a 
determination under subparagraph (B) of this 
paragraph regarding the new business activity. 
‘‘(B) DETERMINATION AND TREATMENT AS 
NEW PROGRAM.—If the Director determines that 
any new business activity consists of, relates to, 
or involves any new program— 
‘‘(i) the Director shall notify the enter-
prise of the determination;
‘‘(ii) the new business activity de-
scribed in the notice shall be considered a 
new program for purposes of this section; 
and 
‘‘(iii) the Director shall prohibit the 
enterprise from carrying out the activity ex-
cept to the extent that approval for the ac-
tivity is obtained pursuant to subsection 
(b). 
‘‘(4) COMMENCEMENT.—An enterprise may com-
mence a new business activity— 
‘‘(A) if the Director issues a written ap-
proval regarding such new business activity, im-
mediately upon such issuance or at such other 
time as provided by the Director in such letter; 
or 
‘‘(B) if, during the 30-day period beginning 
upon receipt by the Director of notice pursuant 
to paragraph (2) regarding a new business activ-
ity, the Director has not issued to the enterprise 
a written approval or denial of the new business 
activity, upon the expiration of such 30-day pe-
riod. 
‘‘(d) APPROVAL AND CONDITIONAL APPROVAL.—The 
Director may at any time conditionally approve the under-
taking of a particular new program or new business activ-
ity by an enterprise and set forth the terms and conditions 
that apply to the program or activity with which the enter-
prise shall comply if it undertakes the new program or ac-
tivity. Such approval may, in the discretion of the Director, 
be in the form of a written agreement between the enterprise 
and the Director and shall be subject to such terms and 
conditions therein. Such a written agreement or conditional 
approval shall be enforceable under subtitle C. 
‘‘(e) DETERMINATION AND TREATMENT OF ACTIVITY 
AS NEW BUSINESS ACTIVITY.—If the Director determines 
that any activity of an enterprise consists of, relates to, or 
involves any new business activity— 
‘‘(1) the Director shall notify the enterprise of 
the determination; 
‘‘(2) such activity shall be considered a new busi-
ness activity for purposes of this section; and 
‘‘(3) the Director shall prohibit the enterprise 
from carrying out the activity except to the extent 
that approval for the activity is obtained pursuant to 
subsection (c). 
‘‘(f) EFFECT ON OTHER AUTHORITIES.— 
‘‘(1) EXAMINATIONS.—Nothing in this section 
may be construed to limit, in any manner, any other 
authority or right the Director may have under other
provisions of law to conduct an examination of an 
enterprise. 
‘‘(2) REQUESTS FOR INFORMATION.—Nothing in 
this section may be construed to limit the right of the 
Director at any time to request additional informa-
tion from an enterprise concerning any business ac-
tivity. 
‘‘(3) NO IMPLIED RIGHT OF ACTION.—This sec-
tion shall not create any private right of action 
against an enterprise or any director or executive of-
ficer of an enterprise, or impair any private right of 
action under other applicable law. 
‘‘(4) NO LIMITATION.—Nothing in this section 
may be construed to restrict the general supervisory 
and regulatory authority of the Director over all pro-
grams, products, activities, or business operations of 
any kind. 
‘‘(g) REPORT ON PROGRAMS AND BUSINESS ACTIVI-
TIES.—Not later than the expiration of the 180-day period 
beginning on the effective date under section 185 of the Fed-
eral Housing Finance Reform Act of 2005, each enterprise 
shall submit to the Director a report identifying and de-
scribing each program and business activity of the enter-
prise engaged in or existing as of the submission of the re-
port.
‘‘(h) REGULATIONS.—The Director shall by order or 
regulation issue rules and procedures to implement this sec-
tion, including in the discretion of the Director, such defini-
tions, interpretations, forms, and other guidances as the Di-
rector considers appropriate.’’. 
(b) DEFINITIONS.—Section 1303 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4502), as 
amended by section 2 of this Act, is further amended— 
(1) by redesignating paragraphs (17) through 
(23) as paragraphs (20) through (26), respectively; 
(2) by inserting after paragraph (16) the fol-
lowing new paragraph: 
‘‘(19) NEW BUSINESS ACTIVITY.—The term ‘new 
business activity’ means, with respect to an enter-
prise, a business activity that— 
‘‘(A) is materially changed or materially 
different from any of the business activities that 
the enterprise was engaging in on the effective 
date under section 185 of the Federal Housing 
Finance Reform Act of 2005; and 
‘‘(B) the enterprise has not previously ob-
tained authorization, pursuant to the provisions 
of section 1321(c), to offer, undertake, transact, 
conduct, or engage in.’’;
(3) by redesignating paragraphs (15) and (16) 
as paragraphs (17) and (18), respectively; 
(4) by inserting after paragraph (14) the fol-
lowing new paragraph: 
‘‘(16) MORTGAGE MARKETS.—The terms ‘mort-
gage loan origination’ and ‘secondary mortgage mar-
ket’ shall have such meanings as the Director shall, by 
regulation, prescribe consistent with the Federal Na-
tional Mortgage Association Charter Act and the Fed-
eral Home Loan Mortgage Corporation Act. The Di-
rector shall issue such regulations not later than the 
expiration of the 12-month period beginning on the 
effective date under section 185 of the Federal Hous-
ing Finance Reform Act of 2005, and the Director 
shall review such regulations on a periodic basis.’’; 
(5) by redesignating paragraphs (5) through (14) 
as paragraphs (6) through (15), respectively; and 
(6) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) BUSINESS
ACTIVITY.—The term ‘business 
activity’ means, with respect to an enterprise, any of-
fering, undertaking, transacting, conducting, or en-
gaging in any conduct, activity, or product by the en-
terprise, as the Director shall provide.’’. 
(c) CONFORMING AMENDMENTS.—
(1) FANNIE MAE.—Section 302(b)(6) of the Fed-
eral National Mortgage Association Charter Act (12 
U.S.C. 1717(b)(6)) is amended— 
(A) by striking ‘‘new program (as such term 
is’’ and inserting ‘‘new program or new business 
activity (as such terms are’’; and 
(B) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ and 
inserting ‘‘except in accordance with section 
1321’’. 
(2) FREDDIE MAC.—Section 305(c) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(c)) is amended— 
(A) by striking ‘‘new program (as such term 
is’’ and inserting ‘‘new program or new business 
activity (as such terms are’’; and 
(B) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ and 
inserting ‘‘except in accordance with section 
1321’’. 
SEC. 123. CONFORMING LOAN LIMITS. 
(a) FANNIE MAE.— 
(1) GENERAL LIMIT.—Section 302(b)(2) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)) is amended by striking the 7th
and 8th sentences and inserting the following new 
sentences: ‘‘Such limitations shall not exceed $359,650 
for a mortgage secured by a single-family residence, 
$460,400 for a mortgage secured by a 2-family resi-
dence, $556,500 for a mortgage secured by a 3-family 
residence, and $691,600 for a mortgage secured by a 
4-family residence, except that such maximum limita-
tions shall be adjusted effective January 1 of each 
year beginning after the effective date under section 
185 of the Federal Housing Finance Reform Act of 
2005, subject to the limitations in this paragraph. 
Each adjustment shall be made by adding to or sub-
tracting from each such amount (as it may have been 
previously adjusted) a percentage thereof equal to the 
percentage increase or decrease, during the most re-
cent 12-month or fourth-quarter period ending before 
the time of determining such annual adjustment, in 
the housing price index maintained by the Director of 
the Federal Housing Finance Agency (pursuant to 
section 1322 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541)).’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Charter 
Act is (12 U.S.C. 1717(b)(2)) is amended by adding 
after the period at the end the following: ‘‘Such fore-
going limitations shall also be increased with respect 
to properties of a particular size located in any area 
for which the median price for such size residence ex-
ceeds the foregoing limitation for such size residence, 
to the lesser of 150 percent of such foregoing limita-
tion for such size residence or the amount that is 
equal to the median price in such area for such size 
residence, except that, subject to the order, if any, 
issued by the Director of the Federal Housing Fi-
nance Agency pursuant to section 123(d)(3) of the 
Federal Housing Finance Reform Act of 2005, such 
increase shall apply only with respect to mortgages on 
which are based securities issued and sold by the cor-
poration.’’ 
(b) FREDDIE MAC.— 
(1) GENERAL LIMIT.— Section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) is amended by striking the 6th 
and 7th sentences and inserting the following new 
sentences: ‘‘Such limitations shall not exceed $359,650 
for a mortgage secured by a single-family residence, 
$460,400 for a mortgage secured by a 2-family resi-
dence, $556,500 for a mortgage secured by a 3-family 
residence, and $691,600 for a mortgage secured by a 
4-family residence, except that such maximum limita-
tions shall be adjusted effective January 1 of each 
year beginning after the effective date under section 
185 of the Federal Housing Finance Reform Act of 
2005, subject to the limitations in this paragraph. 
Each adjustment shall be made by adding to or sub-
tracting from each such amount (as it may have been 
previously adjusted) a percentage thereof equal to the 
percentage increase or decrease, during the most re-
cent 12-month or fourth-quarter period ending before 
the time of determining such annual adjustment, in 
the housing price index maintained by the Director of 
the Federal Housing Finance Agency (pursuant to 
section 1322 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4541)).’’. 
(2) HIGH-COST AREA LIMIT.—Section 305(a)(2) 
of the Federal Home Loan Mortgage Corporation Act 
is amended by adding after the period at the end the 
following: ‘‘Such foregoing limitations shall also be 
increased with respect to properties of a particular 
size located in any area for which the median price 
for such size residence exceeds the foregoing limitation 
for such size residence, to the lesser of 150 percent of 
such foregoing limitation for such size residence or the 
amount that is equal to the median price in such 
area for such size residence, except that, subject to the
order, if any, issued by the Director of the Federal 
Housing 
Finance 
Agency 
pursuant 
to 
section 
123(d)(3) of the Federal Housing Finance Reform Act 
of 2005, such increase shall apply only with respect 
to mortgages on which are based securities issued and 
sold by the Corporation.’’ 
(c) HOUSING PRICE INDEX.—Subpart A of part 2 of 
subtitle A of title XIII of the Housing and Community De-
velopment Act of 1992 (as amended by the preceding provi-
sions of this Act) is amended by inserting after section 1321 
(as added by section 122 of this Act) the following new sec-
tion: 
‘‘SEC. 1322. HOUSING PRICE INDEX. 
‘‘(a) IN GENERAL.—The Director shall establish and 
maintain a method of assessing the national average 1-fam-
ily house price for use for adjusting the conforming loan 
limitations of the enterprises. In establishing such method, 
the Director shall take into consideration the monthly sur-
vey of all major lenders conducted by the Federal Housing 
Finance Agency to determine the national average 1-family 
house price, the House Price Index maintained by the Office 
of Federal Housing Enterprise Oversight of the Department 
of Housing and Urban Development before the effective date 
under section 185 of the Federal Housing Finance Reform 
Act of 2005, any appropriate house price indexes of the Bu-
reau of the Census of the Department of Commerce, and 
any other indexes or measures that the Director considers 
appropriate. 
‘‘(b) GAO AUDIT.— 
‘‘(1) IN
GENERAL.—At such times as are re-
quired under paragraph (2), the Comptroller General 
of the United States shall conduct an audit of the 
methodology established by the Director under sub-
section (a) to determine whether the methodology es-
tablished is an accurate and appropriate means of 
measuring changes to the national average 1-family 
house price. 
‘‘(2) TIMING.—An audit referred to in para-
graph (1) shall be conducted and completed not later 
than the expiration of the 180-day period that begins 
upon each of the following dates: 
‘‘(A) ESTABLISHMENT.—The date upon 
which such methodology is initially established 
under subsection (a) in final form by the Direc-
tor. 
‘‘(B) MODIFICATION
OR
AMENDMENT.— 
Each date upon which any modification or 
amendment to such methodology is adopted in 
final form by the Director.
‘‘(3) REPORT.—Within 30 days of the comple-
tion of any audit conducted under this subsection, the 
Comptroller General shall submit a report detailing 
the results and conclusions of the audit to the Direc-
tor, the Committee on Financial Services of the House 
of Representatives, and the Committee on Banking, 
Housing, and Urban Affairs of the Senate.’’. 
(d) CONDITIONS ON CONFORMING LOAN LIMIT FOR 
HIGH-COST AREAS.— 
(1) STUDY.—The Director of the Federal Hous-
ing Finance Agency shall conduct a study under this 
subsection during the six-month period beginning on 
the effective date under section 185 of this Act. 
(2) ISSUES.—The study under this subsection 
shall determine— 
(A) the effect that restricting the conforming 
loan limits for high-cost areas only to mortgages 
on which are based securities issued and sold by 
the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation 
(as provided in the last sentence of section 
302(b)(2) of the Federal National Mortgage Asso-
ciation Charter Act and the last sentence of sec-
tion 305(a)(2) of the Federal Home Loan Mort-
gage Corporation Act, pursuant to the amend-
ments made by subsections (a)(2) and (b)(2) of 
this section) would have on the cost to borrowers 
for mortgages on housing in such high-cost areas; 
(B) the effects that such restrictions would 
have on the availability of mortgages for housing 
in such high-cost areas; and 
(C) the extent to which the Federal National 
Mortgage Association and the Federal Home 
Loan Mortgage Corporation will be able to issue 
and sell securities based on mortgages for hous-
ing located in such high-cost areas. 
(3) DETERMINATION.— 
(A) IN GENERAL.—Not later than the expi-
ration of the six-month period specified in para-
graph (1), the Director of the Federal Housing 
Finance Agency shall make a determination, 
based on the results of the study under this sub-
section, of whether the restriction of conforming 
loan limits for high-cost areas only to mortgages 
on which are based securities issued and sold by 
the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation 
(as provided in the amendments made by sub-
sections (a)(2) and (b)(2) of this section) will re-
sult in an increase in the cost to borrowers for 
mortgages on housing in such high-cost areas. 
(B) ORDER.— If such determination is that 
costs to borrowers on housing in such high-cost 
areas will be increased by such restrictions, the 
Director may issue an order terminating such 
restrictions, in whole or in part. 
(4) PUBLICATION.— Not later than the expira-
tion of the six-month period specified in paragraph 
(1), the Director of the Federal Housing Finance 
Agency shall cause to be published in the Federal Reg-
ister— 
(A) a report that— 
(i) describes the study under this sub-
section; and 
(ii) sets forth the conclusions of the 
study regarding the issues to be determined 
under paragraph (2); and 
(B) notice of the determination of the Direc-
tor under paragraph (3); and 
(C) the order of the Director under para-
graph (3). 
(5) DEFINITION.—For purposes of this sub-
section, the term ‘‘conforming loan limits for high-cost 
areas’’ means the dollar amount limitations applica-
ble under the section 302(b)(2) of the Federal Na-
tional Mortgage Association Charter Act and section 
305(a)(2) of the Federal Home Loan Mortgage Cor-
poration Act (as amended by subsections (a) and (b) 
of this section) for areas described in the last sentence 
of such sections (as so amended). 
(e) REGULAR ADJUSTMENT
OF CONFORMING LOAN 
LIMITS.— 
(1) ADJUSTMENT FOR YEAR INTERVENING BE-
FORE
EFFECTIVE
DATE.—Notwithstanding section 
302(b)(2) of the Federal National Mortgage Associa-
tion Charter Act and section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act, as amended 
by this section, the maximum dollar amount limita-
tions in such sections shall be adjusted on the effective 
date under section 185 of this Act, and the limita-
tions as so adjusted shall be immediately effective, so 
that the limitations under such sections applicable to 
the year in which such effective date occurs are equal 
to the limitations in effect under such sections imme-
diately before such effective date. 
(2) FURTHER ADJUSTMENTS.—After such effec-
tive date, the dollar amount limitations as adjusted 
pursuant to paragraph (1) shall be considered ‘‘such 
amount (as it may have been previously adjusted’’ for
purposes of section 302(b)(2) of the Federal National 
Mortgage Association Charter Act and section 
305(a)(2) of the Federal Home Loan Mortgage Cor-
poration Act. 
SEC. 124. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking section 1324 
(12 U.S.C. 4544) and inserting the following new section: 
‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
‘‘(a) IN GENERAL.—After reviewing and analyzing the 
reports submitted under section 309(n) of the Federal Na-
tional Mortgage Association Charter Act, section 307(f) of 
the Federal Home Loan Mortgage Corporation Act, and sec-
tion 10(j)(11) of the Federal Home Loan Bank Act (12 
U.S.C. 1430(j)(11)), the Director shall submit a report, not 
later than October 30 of each year, to the Committee on 
Financial Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs of the 
Senate, on the activities of each regulated entity. 
‘‘(b) CONTENTS.—The report shall— 
‘‘(1) discuss the extent to which—
‘‘(A) each enterprise is achieving the annual 
housing goals established under subpart B of this 
part; 
‘‘(B) each enterprise is complying with sec-
tion 1337; 
‘‘(C) each Federal home loan bank is com-
plying with section 10(j) of the Federal Home 
Loan Bank Act; and 
‘‘(D) each regulated entity is achieving the 
purposes of the regulated entity established by 
law; 
‘‘(2) aggregate and analyze relevant data on in-
come to assess the compliance by each enterprise with 
the housing goals established under subpart B; 
‘‘(3) aggregate and analyze data on income, race, 
and gender by census tract and other relevant classi-
fications, and compare such data with larger demo-
graphic, housing, and economic trends; 
‘‘(4) examine actions that— 
‘‘(A) each enterprise has undertaken or 
could undertake to promote and expand the an-
nual goals established under subpart B and the 
purposes of the enterprise established by law; and 
‘‘(B) each Federal home loan bank has 
taken or could undertake to promote and expand
the community investment program and afford-
able housing program of the bank established 
under section subsections (i) and (j) of section 10 
of the Federal Home Loan Bank Act; 
‘‘(5) examine the primary and secondary multi-
family housing mortgage markets and describe— 
‘‘(A) the availability and liquidity of mort-
gage credit; 
‘‘(B) the status of efforts to provide stand-
ard credit terms and underwriting guidelines for 
multifamily housing and to securitize such mort-
gage products; and 
‘‘(C) any factors inhibiting such standard-
ization and securitization; 
‘‘(6) examine actions each regulated entity has 
undertaken and could undertake to promote and ex-
pand opportunities for first-time homebuyers; 
‘‘(7) describe any actions taken under section 
1325(5) with respect to originators found to violate 
fair lending procedures; 
‘‘(8) discuss and analyze existing conditions and 
trends, including conditions and trends relating to 
pricing, in the housing markets and mortgage mar-
kets; and
‘‘(9) identify the extent to which each enterprise 
is involved in mortgage purchases and secondary 
market activities involving subprime loans (as identi-
fied in accordance with the regulations issued pursu-
ant to section 124(b) of the Federal Housing Finance 
Reform Act of 2005) and compare the characteristics 
of subprime loans purchased and securitized by the 
enterprises to other loans purchased and securitized 
by the enterprises 
‘‘(c) DATA COLLECTION AND REPORTING.— 
‘‘(1) IN
GENERAL.—To assist the Director in 
analyzing the matters described in subsection (b) and 
establishing the methodology described in section 
1322, the Director shall conduct, on a monthly basis, 
a survey of mortgage markets in accordance with this 
subsection. 
‘‘(2) DATA POINTS.—Each monthly survey con-
ducted by the Director under paragraph (1) shall col-
lect data on— 
‘‘(A) the characteristics of individual mort-
gages that are eligible for purchase by the enter-
prises and the characteristics of individual mort-
gages that are not eligible for purchase by the en-
terprises including, in both cases, information 
concerning—
‘‘(i) the price of the house that secures 
the mortgage; 
‘‘(ii) the loan-to-value ratio of the 
mortgage, which shall reflect any secondary 
liens on the relevant property; 
‘‘(iii) the terms of the mortgage; 
‘‘(iv) the creditworthiness of the bor-
rower or borrowers; and 
‘‘(v) whether the mortgage, in the case 
of a conforming mortgage, was purchased 
by an enterprise; and 
‘‘(B) such other matters as the Director de-
termines to be appropriate. 
‘‘(3) PUBLIC AVAILABILITY.—The Director shall 
make any data collected by the Director in connection 
with the conduct of a monthly survey available to the 
public in a timely manner, provided that the Director 
may modify the data released to the public to ensure 
that the data is not released in an identifiable form. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘identifiable form’ means any rep-
resentation of information that permits the identity of 
a borrower to which the information relates to be rea-
sonably inferred by either direct or indirect means.’’.
(b) STANDARDS FOR SUBPRIME LOANS.—The Director 
shall, not later than one year after the effective date under 
section 185, by regulations issued under section 1316G of 
the Housing and Community Development Act of 1992, es-
tablish standards by which mortgages purchased and mort-
gages purchased and securitized shall be characterized as 
subprime for the purpose of, and only for the purpose of, 
complying with the reporting requirement under section 
1324(b)(9) of such Act. 
SEC. 125. REVISION OF HOUSING GOALS. 
(a) HOUSING GOALS.—The Housing and Community 
Development Act of 1992 is amended by striking sections 
1331 through 1334 (12 U.S.C. 4561–4) and inserting the 
following new sections: 
‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish, effec-
tive for the first year that begins after the effective date 
under section 185 of the Federal Housing Finance Reform 
Act of 2005 and each year thereafter, annual housing goals, 
with respect to the mortgage purchases by the enterprises, 
as follows: 
‘‘(1) SINGLE
FAMILY
HOUSING
GOALS.—Three 
single-family housing goals under section 1332.
‘‘(2) MULTIFAMILY SPECIAL AFFORDABLE HOUS-
ING GOALS.—A multifamily special affordable hous-
ing goal under section 1333. 
‘‘(b) ELIMINATING INTEREST RATE DISPARITIES.— 
‘‘(1) IN GENERAL.—In establishing and imple-
menting the housing goals under this subpart, the Di-
rector shall require the enterprises to disclose appro-
priate information to allow the Director to assess if 
there are any disparities in interest rates charged on 
mortgages to borrowers who are minorities as com-
pared with borrowers of similar creditworthiness who 
are not minorities, as evidenced in reports pursuant 
to the Home Mortgage Disclosure Act of 1975. 
‘‘(2) REPORT AND REMEDY.—Upon a finding by 
the Director, pursuant to the information provided by 
an enterprise in paragraph (1), that a pattern of dis-
parities in interest rates exists, the Director shall— 
‘‘(A) submit to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report detailing the dispari-
ties; and 
‘‘(B) require the enterprise to take such ac-
tion as the Director deems appropriate pursuant