I 
113TH CONGRESS 
1ST SESSION H. R. 3550 
To stabilize the housing and banking sectors by eliminating policies that 
distort markets and facilitate risky lending, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 20, 2013 
Mr. AMASH (for himself, Mr. DUNCAN of South Carolina, Mr. JORDAN, Mr. 
LAMBORN, Mr. MCCLINTOCK, Mr. MEADOWS, Mr. PRICE of Georgia, and 
Mr. SALMON) introduced the following bill; which was referred to the 
Committee on Financial Services, and in addition to the Committees on 
Appropriations, Science, Space, and Technology, Transportation and In-
frastructure, and the Judiciary, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To stabilize the housing and banking sectors by eliminating 
policies that distort markets and facilitate risky lending, 
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 AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘New Fair Deal Banking and Housing Stability Act of 
2013’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—REDUCING RISKY LENDING AND HOUSING MARKET 
INSTABILITY 
Subtitle A—Withdrawing Failed Government Mortgage Corporations 
PART 1—IMMEDIATE REFORMS OF GOVERNMENT-SPONSORED CORPORATIONS 
Sec. 101. Repeal of housing goals for enterprises. 
Sec. 102. Repeal of Housing Trust Fund. 
Sec. 103. Repeal of Capital Magnet Fund. 
Sec. 104. Limitation on enterprise mortgage purchases. 
Sec. 105. Repeal of banking agencies’ authority relating Freddie Mac trans-
actions. 
PART 2—MAKING SPACE FOR PRIVATE SECONDARY MARKETS 
Sec. 111. Reduction of enterprise conforming loan limits. 
Sec. 112. Loan-to-value limitation on enterprise mortgage purchases. 
Sec. 113. Increased capital standards for enterprises. 
Sec. 114. Enterprise portfolio limitations. 
PART 3—ABOLITION OF FANNIE MAE AND FREDDIE MAC 
Sec. 121. Abolishment of enterprises. 
Subtitle B—Termination of Insurance for Banks’ Mortgage Lending 
PART 1—IMMEDIATE REFORMS OF FHA CREDIT PROGRAMS 
Sec. 131. FHA lender repurchase requirement. 
Sec. 132. Prohibition of FHA mortgage insurance for cash-out refinancings. 
Sec. 133. FHA limitation on seller concessions. 
PART 2—REDUCING TAXPAYER GUARANTEES OF MORTGAGES 
Sec. 141. Reduction of FHA mortgage insurance coverage. 
Sec. 142. Increase in FHA downpayment requirement. 
PART 3—TERMINATION OF FHA CREDIT GUARANTEES 
Sec. 151. Termination of FHA insurance authority. 
Subtitle C—Ending Guarantees for Government Mortgage-Backed Securities 
Sec. 161. Limitation on GNMA guarantees. 
Sec. 162. Abolishment of Ginnie Mae. 
Subtitle D—Repealing Regulations That Promote Risky Lending 
Sec. 171. Repeal of the Community Reinvestment Act of 1977. 
Sec. 172. Repeal of Dodd-Frank credit risk retention provisions. 
Sec. 173. Repeal of Dodd-Frank ability to repay and qualified mortgage provi-
sions. 
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Sec. 174. Repeal of the Home Mortgage Disclosure Act of 1975. 
Sec. 175. Repeal of Federal Home Loan Banks Affordable Housing Program 
and housing goals. 
Sec. 176. Repeal of FDIC Affordable Housing Program. 
Subtitle E—Stopping Subsidies for Certain Obstacles to Housing Construction 
Sec. 181. Repeal of transportation planning provisions; rescission. 
Sec. 182. Termination of HUD sustainable communities initiatives; rescission. 
TITLE II—ENDING BANK BAILOUTS AND RESTORING MARKET 
DISCIPLINE 
Subtitle A—Reducing Risks to Bank Depositors and Other Creditors 
Sec. 201. Capital requirements. 
Sec. 202. FDIC insurance. 
Subtitle B—Repeal of Bailout Authorities 
Sec. 211. Repeal of FDIC powers under the systemic risk determination. 
Sec. 212. Repeal of unusual and exigent authority of the Federal Reserve. 
Sec. 213. Exchange Stabilization Fund. 
Subtitle C—Bankruptcy, Not Bailouts, for Complex Financial Institutions 
Sec. 221. Reforming the bankruptcy code to accommodate failing financial in-
stitutions. 
TITLE 
I—REDUCING 
RISKY 
LENDING AND HOUSING MAR-
KET INSTABILITY 
Subtitle 
A—Withdrawing 
Failed 
Government Mortgage Corpora-
tions 
PART 1—IMMEDIATE REFORMS OF 
GOVERNMENT-SPONSORED CORPORATIONS 
SEC. 101. REPEAL OF HOUSING GOALS FOR ENTERPRISES. 
(a) REPEAL.—The Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 is amended by 
striking sections 1331 through 1336 (12 U.S.C. 4561–6). 
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(b) CONFORMING AMENDMENTS.—Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 
is amended— 
(1) in section 1303(28) (12 U.S.C. 4502(28)), 
by striking ‘‘, and, for the purposes’’ and all that 
follows through ‘‘designated disaster areas’’; 
(2) in section 1324(b)(1)(A) (12 U.S.C. 
4544(b)(1)(A)), by striking clauses (i), (ii), and (iv); 
(3) in section 1339(h) (12 U.S.C. 4569(h)), by 
striking paragraph (7); 
(4) in section 1341 (12 U.S.C. 4581)— 
(A) in subsection (a)— 
(i) in paragraph (1), by inserting ‘‘or’’ 
after the semicolon at the end; 
(ii) in paragraph (2), by striking the 
semicolon at the end and inserting a pe-
riod; and 
(iii) by striking paragraphs (3) and 
(4); and 
(B) in subsection (b)(2)— 
(i) in subparagraph (A), by inserting 
‘‘or’’ after the semicolon at the end; 
(ii) by striking subparagraphs (B) and 
(C); and 
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(iii) by redesignating subparagraph 
(D) as subparagraph (B); 
(5) in section 1345(a) (12 U.S.C. 4585(a))— 
(A) in paragraph (1), by inserting ‘‘or’’ 
after the semicolon at the end; 
(B) in paragraph (2), by striking the semi-
colon at the end and inserting a period; and 
(C) by striking paragraphs (3) and (4); 
and 
(6) 
in 
section 
1371(a)(2) 
(12 
U.S.C. 
4631(a)(2)), by striking ‘‘with any housing goal es-
tablished under subpart B of part 2 of subtitle A of 
this title, with section 1336 or 1337 of this title,’’. 
(c) REPEAL OF REPORTING REQUIREMENTS.— 
(1) FANNIE MAE.—Section 309 of the Federal 
National Mortgage Association Charter Act (12 
U.S.C. 1723a) is amended by striking subsection 
(n). 
(2) FREDDIE MAC.—Section 307 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1456) is amended by striking subsection (f). 
(d) TERMINATION OF AFFORDABLE HOUSING ADVI-
SORY COUNCILS.— 
(1) FANNIE MAE.—Section 309 of the Federal 
National Mortgage Association Charter Act (12 
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U.S.C. 1723a) is amended by striking subsection 
(o). 
(2) FREDDIE MAC.—Section 307 of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1456) is amended by striking subsection (g). 
SEC. 102. REPEAL OF HOUSING TRUST FUND. 
(a) REPEAL.—The Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 is amended by 
striking sections 1337 and 1338 (12 U.S.C. 4567, 4568). 
(b) CONFORMING AMENDMENTS.— 
(1) FEDERAL
HOUSING
ENTERPRISES
FINAN-
CIAL SAFETY AND SOUNDNESS ACT OF 1992.—The 
Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 is amended— 
(A) in section 1324(b)(1)(A) (12 U.S.C. 
4544(b)(1)(A)), as amended by the preceding 
provisions of this Act— 
(i) by striking clause (iii); 
(ii) by striking the dash after ‘‘which’’ 
and inserting the text of clause (v) and a 
period; and 
(iii) by striking clause (v); 
(B) in section 1339(b)— 
(i) by striking paragraph (1); 
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(ii) by striking the dash after ‘‘consist 
of’’ and inserting the text of paragraph (2) 
and a period; and 
(iii) by striking paragraph (2); and 
(C) in section 1345 (12 U.S.C. 4585), by 
striking subsection (f). 
(2) HOPE FOR HOMEOWNERS PROGRAM.—Sec-
tion 257(w) of the National Housing Act (12 U.S.C. 
1715z–23(w)) is amended— 
(A) by striking paragraphs (2) and (3); 
and 
(B) by redesignating paragraph (4) as 
paragraph (2). 
SEC. 103. REPEAL OF CAPITAL MAGNET FUND. 
(a) USE OF FUNDS.—Immediately upon the enact-
ment of this Act, any amounts in the Capital Magnet 
Fund established under section 1339 of the Federal Hous-
ing Enterprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4569) shall be available to the Secretary 
of the Treasury for use only for reducing the budget def-
icit of the Federal Government. 
(b) REPEAL AND ABOLISHMENT OF FUND.—Section 
1339 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4569) is hereby 
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repealed and the Capital Magnet Fund established under 
such section is abolished. 
(c) CONFORMING AMENDMENT.—Section 1303(24) 
of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4502(24)) is amended 
by striking subparagraph (B). 
SEC. 104. LIMITATION ON ENTERPRISE MORTGAGE PUR-
CHASES. 
(a) FANNIE MAE.—Section 302(b) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 
1717(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(7) The corporation may only purchase, make com-
mitments to purchase, service, sell, lend on the security 
of, or otherwise deal in a mortgage on a property com-
prising 1- to 4-family dwelling units that— 
‘‘(A) bears interest at a rate that is fixed for 
the entire term of the mortgage; and 
‘‘(B) is made— 
‘‘(i) to finance the purchase of such prop-
erty that shall be occupied by the mortgagor as 
the mortgagor’s principal residence; or 
‘‘(ii) to prepay or pay off the outstanding 
principal obligation under an existing mortgage 
or loan secured by the same property, which is 
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(2) in their capacity as such an officer or em-
ployee, performed functions that are transferred to 
the Secretary under subsection (c). 
(g) EXERCISE OF AUTHORITIES.—Except as other-
wise provided by law, a Federal official to whom a function 
is transferred by this section, for purposes of performing 
the function and subject to subsection (c), exercise all au-
thorities under any other provision of law that were avail-
able with respect to the performance of that function to 
the official responsible for the performance of the function 
immediately before the effective date of the transfer of the 
function under this section. 
(h) TRANSFER
OF ASSETS.—Except as otherwise 
provided in this section so much of the personnel, prop-
erty, records, and unexpended balances of appropriations, 
allocations, and other funds employed, used, held, avail-
able, or to be made available in connection with a function 
transferred to an official or agency by this section shall 
be available to the official or the head of that agency, re-
spectively, at such time or times as the Director of the 
Office of Management and Budget directs for use in con-
nection with the functions transferred. 
(i) DELEGATION AND ASSIGNMENT.—Except as oth-
erwise expressly prohibited by law, an official to whom 
functions are transferred under this section (including the 
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