I 
113TH CONGRESS 
2D SESSION 
H. R. 5055 
To reform the housing finance system of the United States, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 10, 2014 
Mr. DELANEY (for himself, Mr. CARNEY, Mr. HIMES, Mr. POLIS, Mr. DAVID 
SCOTT of Georgia, Mr. MURPHY of Florida, Mr. HECK of Washington, 
Ms. SINEMA, Mr. MEEKS, Mr. FOSTER, Mr. WELCH, Mr. OWENS, and 
Mr. QUIGLEY) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To reform the housing finance system of the United States, 
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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Partnership to Strengthen Homeownership Act of 2014’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—GINNIE MAE 
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Sec. 101. Removal from HUD; establishment as independent entity. 
Sec. 102. Transfer to Ginnie Mae of powers, personnel, and property of FHFA. 
Sec. 103. Regulation of market participants and aggregators. 
Sec. 104. Regulatory consultation and coordination. 
TITLE II—SECURITIZATION AND INSURANCE 
Sec. 201. Issuing Platform. 
Sec. 202. Insurance. 
Sec. 203. Authority to protect taxpayers in unusual and exigent market condi-
tions. 
Sec. 204. Servicing rights; representations and warranties. 
Sec. 205. Federal Home Loan Banks. 
TITLE III—WIND DOWN OF FANNIE MAE AND FREDDIE MAC 
Sec. 301. Limitation on business. 
Sec. 302. Risk-sharing pilot programs. 
Sec. 303. Continued conservatorship. 
Sec. 304. Mandatory receivership. 
Sec. 305. Repeal of enterprise charters. 
Sec. 306. Ginnie Mae authority regarding timing. 
TITLE IV—MULTIFAMILY HOUSING FINANCE 
Sec. 401. Establishment of multifamily subsidiaries. 
Sec. 402. Disposition of multifamily businesses. 
Sec. 403. Approval and supervision of multifamily guarantors. 
Sec. 404. Other forms of multifamily risk-sharing. 
Sec. 405. Ginnie Mae securitization of FHA risk-sharing loans. 
TITLE V—AFFORDABLE HOUSING 
Sec. 501. Affordable housing allocations. 
Sec. 502. Housing Trust Fund. 
Sec. 503. Capital Magnet Fund. 
Sec. 504. Market Access Fund. 
TITLE VI—GENERAL PROVISIONS 
Sec. 601. Rule of construction regarding Senior Preferred Stock Purchase 
Agreements. 
Sec. 602. Treatment of community development financial institution. 
SEC. 2. DEFINITIONS. 
For purposes of this Act: 
(1) BANKING DEFINITIONS.—The term ‘‘bank’’ 
and ‘‘savings association’’ have the meaning given 
those terms, respectively, under section 3 of the 
Federal Deposit Insurance Act (12 U.S.C. 1813). 
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(2) CERTIFICATION DATE.—The term ‘‘certifi-
cation date’’ means the earlier of— 
(A) the date on which Ginnie Mae makes 
the certification described under section 201(h); 
and 
(B) the date that is the end of the 2-year 
period beginning on the date of the enactment 
of this Act. 
(3) CHARTER ACT.—The term ‘‘charter Act’’ 
means— 
(A) with respect to the Federal National 
Mortgage Association, the Federal National 
Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.); and 
(B) with respect to the Federal Home 
Loan Mortgage Corporation, the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 
1451 et seq.). 
(4) CREDIT UNION.—The term ‘‘credit union’’ 
means any ‘‘Federal credit union’’ or ‘‘State credit 
union’’, as such terms are defined under section 101 
of the Federal Credit Union Act (12 U.S.C. 1752). 
(5) DIRECTOR.—The term ‘‘Director’’ means 
the Director of Ginnie Mae, as such position is es-
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tablished pursuant to the amendments made by sec-
tion 101(c)(1). 
(6) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’— 
(A) has the meaning given the term 
‘‘qualified 
mortgage’’ 
under 
section 
129C(b)(2)(A) of the Truth in Lending Act (15 
U.S.C. 1639c), as such meaning may be ad-
justed by the Director if the Director deter-
mines such adjustment is appropriate; and 
(B) includes such other minimum stand-
ards as may be established by the Platform, to 
ensure the quality of mortgages used to 
collateralize mortgage-backed securities issued 
by the Platform. 
(7) 
ELIGIBLE
MULTIFAMILY
MORTGAGE 
LOAN.—The term ‘‘eligible multifamily mortgage 
loan’’ means a commercial real estate loan— 
(A) secured by a property with— 
(i) 5 or more residential units; or 
(ii) 2 or more residential units, if the 
requirement under clause (i) is waived by 
the Director for purposes of carrying out a 
demonstration or pilot program; 
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(B) the primary source of repayment for 
which is expected to be derived from rental in-
come generated by the property; 
(C) the term of which may not be less than 
5 years but not more than 40 years; 
(D) that satisfies any additional under-
writing criteria established by the Director to 
balance supporting access to capital with man-
aging credit risk to the Fund, including— 
(i) a maximum loan-to-value ratio; 
(ii) a minimum debt service coverage 
ratio; and 
(iii) considerations for restrictive or 
special uses of a property, including non- 
residential uses, properties for seniors, 
manufactured housing, and affordability 
restrictions, and the impact of such uses 
on clauses (i) and (ii); and 
(E) that satisfies any additional under-
writing criteria that may be established by the 
Director. 
(8) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation and any affiliate thereof; and 
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(B) the Federal Home Loan Mortgage 
Corporation and any affiliate thereof. 
(9) FUND.—The term ‘‘Fund’’ means the in-
surance fund established under section 202(g). 
(10) GINNIE
MAE.—The term ‘‘Ginnie Mae’’ 
means the Government National Mortgage Associa-
tion. 
(11) MARKET PARTICIPANT.—The term ‘‘mar-
ket participant’’ means any insurance company, 
bank, saving association, credit union, or real estate 
investment trust insuring or reinsuring any part of 
a security issued by the Platform. 
(12) PARTICIPATING AGGREGATOR.—The term 
‘‘participating aggregator’’ means an aggregator of 
eligible mortgages that collateralize mortgage-backed 
securities issued by the Platform pursuant to title 
II. 
(13) PLATFORM.—The term ‘‘Platform’’ means 
the Issuing Platform established under section 
201(a). 
(14) REAL ESTATE INVESTMENT TRUST.—The 
term ‘‘real estate investment trust’’ has the meaning 
given such term under section 856(a) of the Internal 
Revenue Code of 1986. 
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TITLE I—GINNIE MAE 
SEC. 101. REMOVAL FROM HUD; ESTABLISHMENT AS INDE-
PENDENT ENTITY. 
(a) IN GENERAL.—Paragraph (2) of section 302(a) 
of the National Housing Act (12 U.S.C. 1717(a)(2)) is 
amended by striking ‘‘in the Department of Housing and 
Urban Development’’ and inserting ‘‘independent of any 
other agency or office in the Federal Government’’. 
(b) CONFORMING AMENDMENTS.—Title III of the 
National Housing Act (12 U.S.C. 1716 et seq.) is amend-
ed— 
(1) 
in 
section 
306(g)(3)(D) 
(12 
U.S.C. 
1721(g)(3)(D)), by striking ‘‘Secretary’’ and insert-
ing ‘‘Association’’; 
(2) in section 307 (12 U.S.C. 1722), by striking 
‘‘Secretary of Housing and Urban Development’’ 
and inserting ‘‘Association’’; and 
(3) in section 317 (12 U.S.C. 1723i)— 
(A) in subsection (a)(1), by striking ‘‘Sec-
retary of Housing and Urban Development’’ 
and inserting ‘‘Director of the Association’’; 
(B) in subsection (c)(4), by striking ‘‘Sec-
retary’s’’ and inserting ‘‘Director of the Asso-
ciation’s’’; 
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(C) in subsection (d)(1), by striking ‘‘Sec-
retary’s’’ and inserting ‘‘Director of the Asso-
ciation’s’’; 
(D) in the heading for subsection (f), by 
striking ‘‘BY SECRETARY’’; and 
(E) by striking ‘‘Secretary’’ each place 
such term appears and inserting ‘‘Director of 
the Association’’. 
(c) MANAGEMENT; DIRECTOR.— 
(1) INDEPENDENCE
AND
TERM.—Subsection 
(a) of section 308 of the National Housing Act (12 
U.S.C. 1723(a)) is amended— 
(A) in the first sentence— 
(i) by striking ‘‘Secretary of Housing 
and Urban Development’’ and inserting 
‘‘Director of the Association appointed 
pursuant to this subsection’’; and 
(ii) by striking ‘‘of the Secretary’’ and 
inserting ‘‘of the Director’’; 
(B) in the second sentence, by striking 
‘‘Secretary’’ and inserting ‘‘Director’’; 
(C) in the third sentence— 
(i) by striking ‘‘in the Department of 
Housing and Urban Development’’; and 
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(ii) by inserting before the period at 
the end the following: ‘‘, and shall be ap-
pointed for a term of 5 years, unless re-
moved before the end of such term for 
cause by the President’’; 
(D) in the last sentence, by striking ‘‘Sec-
retary’’ and inserting ‘‘Director’’; and 
(E) by adding at the end the following un-
designated paragraph: 
‘‘A vacancy in the position of Director that occurs 
before the expiration of the term for which a Director was 
appointed shall be filled in the manner established under 
paragraph (1), and the Director appointed to fill such va-
cancy shall be appointed only for the remainder of such 
term. If the Senate has not confirmed a Director, the 
President may designate either the individual nominated 
but not yet confirmed for the position of Director or an-
other individual, to serve as the Acting Director, and such 
Acting Director shall have all the rights, duties, powers, 
and responsibilities of the Director, until such time as a 
Director is confirmed by the Senate. An individual may 
serve as the Director after the expiration of the term for 
which appointed until a successor has been appointed or 
confirmed.’’. 
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(2) CONFORMING AMENDMENT.—Section 5315 
of title 5, United States Code, is amended, in the 
item relating to the President of the Government 
National Mortgage Association, by striking ‘‘. De-
partment of Housing and Urban Development’’. 
(d) MEMBERSHIP ON FSOC.—The Dodd-Frank Wall 
Street Reform and Consumer Protection Act is amend-
ed— 
(1) in section 2, by amending paragraph 
(12)(E) to read as follows: 
‘‘(E) the Government National Mortgage 
Association, with respect to— 
‘‘(i) the Mortgage Insurance Fund es-
tablished under section 202(g) of the Part-
nership to Strengthen Homeownership Act 
of 2014; and 
‘‘(ii) the Federal Home Loan Banks 
or the Federal Home Loan Bank Sys-
tem.’’; and 
(2) in section 111(b)(1)(H), by striking ‘‘Direc-
tor of the Federal Housing Finance Agency’’ and in-
serting ‘‘Director of the Government National Mort-
gage Association’’. 
(e) PERSONNEL.—Subsection (d) of section 309 of 
the National Housing Act (12 U.S.C. 1723a(d)) is amend-
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ed by striking ‘‘(d)(1)’’ and all that follows through the 
end of paragraph (1) and inserting the following: 
‘‘(d) PERSONNEL.— 
‘‘(1) GINNIE MAE.— 
‘‘(A) IN GENERAL.—The Director of the 
Association may appoint and fix the compensa-
tion of such officers and employees of the Asso-
ciation as the Director considers necessary to 
carry out the functions of the Association. Offi-
cers and employees may be paid without regard 
to the provisions of chapter 51 and subchapter 
III of chapter 53 of title 5, United States Code, 
relating to classification and General Schedule 
pay rates. 
‘‘(B) DEVELOPMENT
OF
HUMAN
RE-
SOURCES.—In carrying out this subsection, 
Ginnie Mae shall appoint and develop human 
capital (which shall have such meaning as de-
termined by Ginnie Mae, in consultation with 
the Board of Governors of the Federal Reserve, 
taking into consideration differences between 
the banking and insurance industries) necessary 
to ensure that it possesses sufficient expertise 
regarding the insurance industry and insurance 
issues. 
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‘‘(C) COMPARABILITY
OF
COMPENSATION 
WITH FEDERAL BANKING AGENCIES.—In fixing 
and directing compensation under subpara-
graph (A), the Director of the Association shall 
consult with, and maintain comparability with, 
compensation of officers and employees of the 
Office of the Comptroller of the Currency, the 
Board of Governors of the Federal Reserve Sys-
tem, and the Federal Deposit Insurance Cor-
poration. 
‘‘(D) PERSONNEL
OF
OTHER
FEDERAL 
AGENCIES.—In carrying out the duties of the 
Association, the Director of the Association 
may use information, services, staff, and facili-
ties of any executive agency, independent agen-
cy, or department on a reimbursable basis, with 
the consent of such agency or department. 
‘‘(E) OUTSIDE
EXPERTS
AND
CONSULT-
ANTS.—Notwithstanding any provision of law 
limiting pay or compensation, the Director of 
the Association may appoint and compensate 
such outside experts and consultants as such 
Director determines necessary to assist the 
work of the Association.’’. 
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(f) 
TRANSITIONAL
PROVISION.—Notwithstanding 
this section and the amendments made by this section, 
during the period beginning on the date of the enactment 
of this Act, and ending on the date on which the Director 
of the Government National Mortgage Association is ap-
pointed and confirmed pursuant to section 308 of the Na-
tional Housing Act, as amended by this section, the person 
serving as the President of the Government National 
Mortgage Association on that effective date shall act for 
all purposes as, and with the full powers of, the Director 
of the Association. 
(g) REFERENCES.—On and after the date of the en-
actment of this Act, any reference in Federal law to the 
President of the Government National Mortgage Associa-
tion or to such Association shall be deemed to be a ref-
erence to such Director of such Association or to such As-
sociation, as appropriate, as organized pursuant to this 
subsection and the amendments made by this section. 
SEC. 102. TRANSFER TO GINNIE MAE OF POWERS, PER-
SONNEL, AND PROPERTY OF FHFA. 
(a) POWERS AND DUTIES TRANSFERRED.— 
(1) FEDERAL
HOME
LOAN
BANK
FUNCTIONS 
TRANSFERRED.— 
(A) TRANSFER OF FUNCTIONS.—There are 
transferred to Ginnie Mae and the Director of 
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Ginnie Mae all functions of the Federal Hous-
ing Finance Agency and the Director of the 
Federal Housing Finance Agency, respectively. 
(B) POWERS, AUTHORITIES, RIGHTS, AND 
DUTIES.—Ginnie Mae and the Director of 
Ginnie Mae shall succeed to all powers, authori-
ties, rights, and duties that were vested in the 
Federal Housing Finance Agency and the Di-
rector of the Federal Housing Finance Agency, 
respectively, including all conservatorship or re-
ceivership authorities, on the day before the 
transfer date in connection with the functions 
and authorities transferred under subparagraph 
(A). 
(C) TRANSFER
DATE.—The transfer of 
functions under this paragraph shall take effect 
upon the expiration of the 6-month period be-
ginning on the date of the enactment of this 
Act. 
(2) CONTINUATION
AND
COORDINATION
OF 
CERTAIN ACTIONS.— 
(A) IN GENERAL.—All regulations, orders, 
determinations, and resolutions described under 
subparagraph (B) shall remain in effect accord-
ing to the terms of such regulations, orders, de-
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terminations, and resolutions, and shall be en-
forceable by or against Ginnie Mae until modi-
fied, terminated, set aside, or superseded in ac-
cordance with applicable law by Ginnie Mae, 
any court of competent jurisdiction, or oper-
ation of law. 
(B) APPLICABILITY.—A regulation, order, 
determination, or resolution is described under 
this subparagraph if it— 
(i) was issued, made, prescribed, or 
allowed to become effective by— 
(I) the Federal Housing Finance 
Agency; or 
(II) a court of competent juris-
diction, and relates to functions trans-
ferred by this subsection; 
(ii) relates to the performance of func-
tions that are transferred by this sub-
section; and 
(iii) is in effect on the transfer date 
under paragraph (1)(C). 
(3) DISPOSITION OF AFFAIRS.—During the pe-
riod preceding the transfer date under paragraph 
(1)(C), the Director of the Federal Housing Finance 
Agency, for the purpose of winding up the affairs of 
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the Federal Housing Finance Agency in connection 
with the performance of functions that are trans-
ferred by this section— 
(A) shall manage the employees of such 
Agency and provide for the payment of the 
compensation and benefits of any such employ-
ees which accrue before such transfer date; and 
(B) may take any other action necessary 
for the purpose of winding up the affairs of the 
Office. 
(4) USE OF PROPERTY AND SERVICES.— 
(A) PROPERTY.—Ginnie Mae may use the 
property and services of the Federal Housing 
Finance Agency to perform functions which 
have been transferred to Ginnie Mae until such 
time as the Agency is abolished under sub-
section (c) to facilitate the orderly transfer of 
functions transferred under this subsection, any 
other provision of this Act, or any amendment 
made by this Act to any other provision of law. 
(B) AGENCY SERVICES.—Any agency, de-
partment, or other instrumentality of the 
United States, and any successor to any such 
agency, department, or instrumentality, that 
was providing supporting services to the Agency 
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before the transfer date in connection with 
functions that are transferred to Ginnie Mae 
shall— 
(i) continue to provide such services, 
on a reimbursable basis, until the transfer 
of such functions is complete; and 
(ii) consult with any such agency to 
coordinate and facilitate a prompt and rea-
sonable transition. 
(5) CONTINUATION OF SERVICES.—Ginnie Mae 
may use the services of employees and other per-
sonnel of the Federal Housing Finance Agency, on 
a reimbursable basis, to perform functions which 
have been transferred to Ginnie Mae for such time 
as is reasonable to facilitate the orderly transfer of 
functions pursuant to this subsection, any other pro-
vision of this Act, or any amendment made by this 
Act to any other provision of law. 
(6) SAVINGS PROVISIONS.— 
(A) EXISTING RIGHTS, DUTIES, AND OBLI-
GATIONS NOT AFFECTED.—Paragraph (1) and 
subsection (c) shall not affect the validity of 
any right, duty, or obligation of the United 
States, the Director of the Federal Housing Fi-
nance Agency, the Federal Housing Finance 
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Agency, or any other person, that existed on 
the day before the transfer date under para-
graph (1)(C). 
(B) CONTINUATION OF SUITS.—No action 
or other proceeding commenced by or against 
the Director of the Federal Housing Finance 
Agency in connection with the functions that 
are transferred to Ginnie Mae under this sub-
section shall abate by reason of the enactment 
of this Act, except that Ginnie Mae shall be 
substituted for the Director of the Federal 
Housing Finance Agency as a party to any such 
action or proceeding. 
(b) TRANSFER
AND RIGHTS
OF EMPLOYEES
OF 
FHFA.— 
(1) TRANSFER.—Each employee of the Federal 
Housing Finance Agency that is employed in connec-
tion with functions that are transferred to Ginnie 
Mae under subsection (a) shall be transferred to 
Ginnie Mae for employment, not later than the 
transfer date under subsection (a)(1)(C), and such 
transfer shall be deemed a transfer of function for 
purposes of section 3503 of title 5, United States 
Code. 
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(2) STATUS OF EMPLOYEES.—The transfer of 
functions under this section, and the abolishment of 
the Federal Housing Finance Agency under sub-
section (c), may not be construed to affect the status 
of any transferred employee as an employee of an 
agency of the United States for purposes of any 
other provision of law. 
(3) GUARANTEED POSITIONS.—Each employee 
transferred under paragraph (1) shall be guaranteed 
a position with the same status, tenure, grade, and 
pay as that held on the day immediately preceding 
the transfer. 
(4) APPOINTMENT AUTHORITY FOR EXCEPTED 
EMPLOYEES.— 
(A) IN GENERAL.—In the case of an em-
ployee occupying a position in the excepted 
service, any appointment authority established 
under law or by regulations of the Office of 
Personnel Management for filling such position 
shall be transferred, subject to subparagraph 
(B). 
(B) DECLINE OF TRANSFER.—Ginnie Mae 
may decline a transfer of authority under sub-
paragraph (A), to the extent that such author-
ity relates to a position excepted from the com-
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petitive service because of its confidential, pol-
icymaking, policy-determining, or policy-advo-
cating character. 
(5) REORGANIZATION.—If Ginnie Mae deter-
mines, after the end of the 1-year period beginning 
on the transfer date under subsection (a)(1)(C), that 
a reorganization of the combined workforce is re-
quired, that reorganization shall be deemed a major 
reorganization for purposes of affording affected em-
ployee retirement under section 8336(d)(2) or 
8414(b)(1)(B) of title 5, United States Code. 
(6) EMPLOYEE BENEFIT PROGRAMS.— 
(A) IN
GENERAL.—Any employee of the 
Federal Housing Finance Agency accepting em-
ployment with Ginnie Mae as a result of a 
transfer under paragraph (1) may retain, for 
12 months after the date on which such trans-
fer occurs, membership in any employee benefit 
program of the Agency or Ginnie Mae, as appli-
cable, including insurance, to which such em-
ployee belongs on the transfer date under sub-
section (a)(1)(C) if— 
(i) the employee does not elect to give 
up the benefit or membership in the pro-
gram; and 
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(ii) the benefit or program is contin-
ued by Ginnie Mae. 
(B) COST DIFFERENTIAL.— 
(i) IN
GENERAL.—The difference in 
the costs between the benefits which would 
have been provided by the Federal Housing 
Finance Agency and those provided by this 
subsection shall be paid by Ginnie Mae. 
(ii) HEALTH INSURANCE.—If any em-
ployee elects to give up membership in a 
health insurance program or the health in-
surance program is not continued by 
Ginnie Mae, the employee shall be per-
mitted to select an alternate Federal 
health insurance program not later than 
30 days after the date of such election or 
notice, without regard to any other regu-
larly scheduled open season. 
(c) ABOLISHMENT OF FHFA.—Effective upon the 
transfer date under subsection (a)(1)(C), the Federal 
Housing Finance Agency and the position of the Director 
of the Federal Housing Finance Agency are abolished. 
(d) TRANSFER OF PROPERTY AND FACILITIES.—Ef-
fective upon the transfer date under subsection (a)(1)(C), 
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all property of the Federal Housing Finance Agency shall 
transfer to Ginnie Mae. 
(e) REFERENCES IN FEDERAL LAW.—On and after 
the transfer date under subsection (a)(1)(C), any ref-
erence in Federal law to the Director of the Federal Hous-
ing Finance Agency or the Federal Housing Finance 
Agency, in connection with any function of the Director 
of the Federal Housing Finance Agency or the Federal 
Housing Finance Agency transferred under subsection (a), 
shall be deemed a reference to the Director of the Govern-
ment National Mortgage Association or the Government 
National Mortgage Association, as appropriate and con-
sistent with the amendments made by this Act. 
SEC. 103. REGULATION OF MARKET PARTICIPANTS AND 
AGGREGATORS. 
(a) APPROVAL AUTHORITY.—The Platform shall be 
available for use only by originators and aggregators of 
mortgages who meet standards for eligibility for such use, 
as shall be established by the Director of Ginnie Mae (in 
this section referred to as the ‘‘Director’’). 
(b) GENERAL SUPERVISORY AND REGULATORY AU-
THORITY.—Pursuant to the authority under subsection 
(a): 
(1) IN GENERAL.—All market participants and 
participating aggregators shall, to the extent pro-
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vided in this section, be subject to the supervision 
and regulation of the Director. 
(2) AUTHORITY OVER MARKET PARTICIPANTS 
AND
PARTICIPATING
AGGREGATORS.—Ginnie Mae 
shall have general regulatory authority over each 
market participant and participating aggregator and 
shall exercise such general regulatory authority to 
ensure that the purposes of this section are carried 
out. 
(c) PRINCIPAL DUTIES.—Among the principal duties 
of the Director pursuant to subsection (b) shall be— 
(1) to oversee the prudential operations of each 
market participant and participating aggregator; 
and 
(2) to ensure that— 
(A) each market participant and partici-
pating aggregator operates in a safe and sound 
manner, including maintenance of adequate 
capital and internal controls; and 
(B) each market participant and partici-
pating aggregator complies with this section 
and the rules, regulations, guidelines, and or-
ders issued under this section. 
(d) PRUDENTIAL MANAGEMENT AND OPERATIONS 
STANDARDS.— 
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(1) ESTABLISHMENT.—The Director shall es-
tablish prudential standards, by regulation or guide-
line, for market participants and participating 
aggregators to— 
(A) ensure— 
(i) the safety and soundness of mar-
ket 
participants 
and 
participating 
aggregators; and 
(ii) the maintenance of approval 
standards by market participants and par-
ticipating aggregators; and 
(B) minimize the risk presented to the 
Fund. 
(2) RECOGNITION OF DISTINCTIONS.—In car-
rying out the requirement under paragraph (1), the 
Director shall distinguish between prudential stand-
ards for market participants and such standards for 
participating aggregators. 
(e) AUTHORITY TO REQUIRE REPORTS.— 
(1) REGULAR REPORTS.—The Director may re-
quire, by general or specific orders, a market partici-
pant or participating aggregator to submit regular 
reports, including financial statements determined 
on a fair value basis, on the condition (including fi-
nancial condition), management, activities, or oper-
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ations of the market participant or participating 
aggregator, as the Director considers appropriate. 
(2) SPECIAL REPORTS.—The Director may re-
quire, by general or specific orders, a market partici-
pant or participating aggregator to submit special 
reports on any of the topics specified in paragraph 
(1) or any other relevant topics, if, in the judgment 
of the Director, such reports are necessary to carry 
out the purposes of this Act. 
(f) EXAMINATIONS AND AUDITS.—The Director may 
conduct such examinations and audits, including on-site 
examinations and audits, of market participants and par-
ticipating aggregators as the Director considers appro-
priate to ensure compliance with this Act, to determine 
the condition of market participants and participating 
aggregators for the purpose of determining and ensuring 
their financial safety and soundness, and otherwise in any 
case that the Director determines an examination is nec-
essary or appropriate. 
(g) CONFLICT OF INTEREST STANDARDS.—The Di-
rector shall establish standards, by regulation or guideline, 
for market participants and participating aggregators as 
the Director considers appropriate to avoid any conflicts 
of interest among market participants. 
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(h) STRESS TESTS FOR SUFFICIENT CAPITAL.—The 
Director, in consultation with the Board of Governors of 
the Federal Reserve, shall— 
(1) establish and carry out such risk-based cap-
ital tests as appropriate to evaluate whether each 
market participant and participating aggregator is 
maintaining a level of capital sufficient to absorb 
losses and support operations during adverse eco-
nomic conditions so that they do not pose undue 
risks to their communities, other institutions, or the 
broader economy; and 
(2) establish capital standards for market par-
ticipants and participating aggregators based on 
such tests, which shall include the following classi-
fications: well capitalized, adequately capitalized, 
undercapitalized, significantly undercapitalized, and 
critically undercapitalized. 
(i) ENFORCEMENT.—The Corporation shall have the 
authority to enforce the provisions of this Act with respect 
to market participants and participating aggregators, in 
the same manner and to the same extent as the Federal 
Deposit Insurance Corporation has with respect to insured 
depository institutions under the provisions of subsections 
(b) through (n) of section 8 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818). 
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(j) REQUIREMENT TO MAINTAIN APPROVED STA-
TUS.— 
(1) AUTHORITY TO ISSUE ORDER.—If the Di-
rector determines that a market participant or a 
participating aggregator under this section no longer 
meets the standards for such approval or violates the 
requirements under this Act, including any stand-
ards, regulations, or orders promulgated in accord-
ance with this Act, the Director may— 
(A) suspend or revoke the status of the 
market participant or participating aggregator 
as approved to utilize the Platform; or 
(B) take any other action with respect to 
such market participant or a participating 
aggregator as may be authorized under this 
Act. 
(2) RULE OF CONSTRUCTION.—The suspension 
or revocation of the approved status of a market 
participant or a participating aggregator under this 
section shall have no effect on the status as an in-
sured security of any security collateralized by eligi-
ble mortgages and insured prior to the suspension or 
revocation. 
(3) PUBLICATION.—The Director shall— 
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(A) promptly publish a notice in the Fed-
eral Register upon suspension or revocation of 
the approval of any market participant or a 
participating aggregator; and 
(B) maintain an updated list of such ap-
proved market participants and participating 
aggregators on the website of Ginnie Mae. 
(4) DEFINITION.—In this subsection, the term 
‘‘violate’’ includes any action, taken alone or with 
others, for or toward causing, bringing about, par-
ticipating in, counseling, or aiding or abetting, a vio-
lation of the requirements under this Act. 
(k) RESOLUTION AUTHORITY.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of Federal law, the law of any State, or the 
constitution of any State, the Director shall— 
(A) have the authority to act, in the same 
manner and to the same extent, with respect to 
a 
market 
participant 
or 
participating 
aggregator that the Director determines pursu-
ant to is classified as critically undercapitalized 
pursuant to subsection (h)(2), as the Federal 
Deposit Insurance Corporation has with respect 
to insured depository institutions under sub-
sections (c) through (s) of section 11 of the 
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Federal Deposit Insurance Act (12 U.S.C. 
1821), section 12 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1822), and section 13 of 
the Federal Deposit Insurance Act (12 U.S.C. 
1823), while tailoring such actions to the spe-
cific business model of the market participant 
or participating aggregator, as the case may be, 
as may be necessary to properly exercise such 
authority under this subsection; 
(B) in carrying out any authority provided 
under subparagraph (A), act, in the same man-
ner and to the same extent, with respect to the 
Fund as the Federal Deposit Insurance Cor-
poration may act with respect to the Deposit 
Insurance Fund under the provisions of the 
Federal Deposit Insurance Act set forth in sub-
paragraph (A); and 
(C) consistent with the authorities pro-
vided in subparagraph (A), immediately place 
an insolvent market participant or participating 
aggregator into receivership. 
(2) 
RULE
OF
CONSTRUCTION.—Notwith-
standing paragraph (1), if an insolvent participating 
aggregator is an insured depository institution or an 
affiliate of an insured depository institution, the Di-
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rector shall recommend, in writing, to such partici-
pating aggregator’s appropriate Federal banking 
agency or State banking regulator to resolve such 
participating aggregator pursuant to section 11(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1821(c)) and other appropriate sections of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1811 et seq.) 
or appropriate Federal or State law, as applicable. 
(3) LEAST-COST RESOLUTION REQUIRED.—The 
Director may not exercise any authority under para-
graph (1) with respect to any market participant or 
any participating aggregator that is not an insured 
depository institution or an affiliate of an insured 
depository institution, unless— 
(A) the Director determines that the exer-
cise of such authority is necessary to ensure 
proper and continued functioning of the sec-
ondary mortgage market; and 
(B) the total amount of the expenditures 
by the Director and obligations incurred by the 
Director in connection with the exercise of any 
such authority with respect to such market par-
ticipant or participating aggregator is the least 
costly to the Fund, consistent with the least 
cost approach specified in the Federal Deposit 
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Insurance Act (12 U.S.C. 1811 et seq.), of all 
possible methods for meeting Ginnie Mae’s obli-
gations under this Act and expeditiously con-
cluding its resolution activities. 
(4) TAXPAYER PROTECTION.—The Director, in 
carrying out any authority provided in this sub-
section, shall ensure that any amounts owed to the 
United States, unless the United States agrees or 
consents otherwise, shall have priority following ad-
ministrative expenses of the receiver when satisfying 
unsecured claims against a market participant or 
participating aggregator, or the receiver therefor, 
that are proven to the satisfaction of the receiver. 
SEC. 104. REGULATORY CONSULTATION AND COORDINA-
TION. 
(a) CONSULTATION PERMITTED.—The Director may, 
in carrying out any duty, responsibility, requirement, or 
action authorized under this Act, consult with the Federal 
regulatory agencies, any individual Federal regulatory 
agency, the Secretary of the Treasury, any State banking 
regulator, any State insurance regulator, and any other 
State agency, as the Director necessary and appropriate. 
(b) COORDINATION REQUIRED.—The Director shall, 
as appropriate, in carrying out any duty, responsibility, 
requirement, or action authorized under this Act, coordi-
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nate with the Federal regulatory agencies, any individual 
Federal regulatory agency, the Secretary of the Treasury, 
any State banking regulator, any State insurance regu-
lator, any other State agency. 
(c) AVOIDANCE OF DUPLICATION.—To the fullest ex-
tent possible, the Director shall— 
(1) avoid duplication of examination activities, 
reporting requirements, and requests for informa-
tion; 
(2) rely on examination reports made by other 
Federal or State regulatory agencies relating to an 
approved entity and its subsidiaries, if any; and 
(3) ensure that market participants and partici-
pating aggregators are not subject to conflicting su-
pervisory demands by Ginnie Mae and other Federal 
regulatory agencies. 
(d) PROTECTION OF PRIVILEGES.— 
(1) IN GENERAL.—Pursuant to the authorities 
provided under subsections (a) and (b), to facilitate 
the consultative process and coordination, the Direc-
tor may share information with the Federal regu-
latory agencies, any individual Federal regulatory 
agency, the Secretary of the Treasury, any State 
bank supervisor, any State insurance regulator, any 
other State agency, or any foreign banking author-
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ity, on a one-time, regular, or periodic basis, as de-
termined by the Director, regarding the capital as-
sets and liabilities, financial condition, risk manage-
ment practices, or any other practice of any market 
participant or participating aggregator. 
(2) 
PRIVILEGE
PRESERVED.—Information 
shared by the Director pursuant to paragraph (1) 
shall not be construed as waiving, destroying, or oth-
erwise affecting any privilege or confidential status 
that 
any 
market 
participant, 
participating 
aggregator, or any other person may claim with re-
spect to such information under Federal or State 
law as to any person or entity other than such agen-
cies, agency, supervisor, or authority. 
(3) RULE OF CONSTRUCTION.—No provision of 
this subsection may be construed as implying or es-
tablishing that— 
(A) any person waives any privilege appli-
cable to information that is shared or trans-
ferred under any circumstance to which this 
subsection does not apply; or 
(B) any person would waive any privilege 
applicable to any information by submitting the 
information directly to the Federal regulatory 
agencies, any individual Federal regulatory 
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agency, any State bank supervisor, any State 
insurance regulator, any other State agency, or 
any foreign banking authority, but for this sub-
section. 
(e) FEDERAL AGENCY AUTHORITY PRESERVED.— 
Unless otherwise expressly provided by this section, no 
provision of this section shall limit or be construed to 
limit, in any way, the existing authority of any Federal 
agency. 
(f) FEDERAL REGULATORY AGENCY.—For purposes 
of this section, the term ‘‘Federal regulatory agency’’ 
means, individually, the Board of Governors of the Federal 
Reserve System, the Office of the Comptroller of the Cur-
rency, the Federal Deposit Insurance Corporation, the Bu-
reau of Consumer Financial Protection, the National 
Credit Union Administration, the Securities and Exchange 
Commission, the Commodity Futures Trading Commis-
sion, and the Federal Housing Finance Agency. 
TITLE II—SECURITIZATION AND 
INSURANCE 
SEC. 201. ISSUING PLATFORM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established within 
Ginnie Mae an entity to be known as the Issuing 
Platform (the ‘‘Platform’’), which shall issue stand-
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ardized mortgage-backed securities to increase ho-
mogeneity in the eligible securities market. 
(2) AUTHORITIES.—The Platform may— 
(A) make contracts, incur liabilities, and 
borrow money; 
(B) purchase, sell, receive, hold, and use 
real and personal property; 
(C) create, execute, and administer trusts; 
and 
(D) take such actions as the Platform de-
termines are necessary or incidental to carry 
out the Platform’s duties under this Act. 
(b) DELIVERY
OF POOL
TO
THE PLATFORM.—A 
mortgage originator or aggregator that wishes to make use 
of the Platform and have Ginnie Mae insure the securities 
issued by the Platform shall deliver to the Platform a pool 
of eligible mortgage loans. 
(c) SECURITIZATION.—The Platform shall, upon re-
ceiving a pool of eligible mortgages— 
(1) create standardized mortgage-backed securi-
ties collateralized by such mortgages; and 
(2) transfer the standardized mortgage-backed 
securities to the mortgage originator or aggregator 
from which the Platform received the pool of eligible 
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mortgages that are collateralizing the securities or 
the designee of such originator or aggregator. 
(d) STANDARDIZED CRITERIA FOR SECURITIES.—In 
issuing securities under this section, the Platform shall es-
tablish standardized criteria for such securities, includ-
ing— 
(1) uniform loan delivery, servicing, and pooling 
requirements; 
(2) remittance requirements; 
(3) underwriting guidelines and refinance pro-
grams; 
(4) the credit quality of the guarantee provided 
to each security; 
(5) servicing standards and loan repurchase 
policies; 
(6) disclosure policies; 
(7) security terms and features; and 
(8) standards for the appropriate minimum 
level of diversification for the mortgage loans that 
collateralize such securities, in order to reduce the 
credit risk such securities could pose to the Fund. 
(e) SECURITIZATION
FEE.—The Platform shall 
charge a fee for securitization services provided under this 
section. Such fee shall be set by the Director and shall 
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be in an amount sufficient to offset the costs to the Plat-
form of carrying out this section. 
(f) LOAN LIMITS; HOUSING PRICE INDEX.— 
(1) ESTABLISHMENT.—Ginnie Mae shall estab-
lish limitations governing the maximum original 
principal obligation of eligible mortgage loans that 
may collateralize a security issued under this Act. 
(2) CALCULATION OF AMOUNT.—The limitation 
set forth under paragraph (1) shall be calculated 
with respect to the total original principal obligation 
of the eligible mortgage loan and not merely with re-
spect to the amount insured by Ginnie Mae. 
(3) MAXIMUM LIMITS.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the maximum limitation 
amount under this paragraph shall not exceed 
$417,000 for a mortgage loan secured by a 1- 
family residence, for a mortgage loan secured 
by a 2-family residence the limit shall equal 128 
percent of the limit for a mortgage loan secured 
by a 1-family residence, for a mortgage loan se-
cured by a 3-family residence the limit shall 
equal 155 percent of the limit for a mortgage 
loan secured by a 1-family residence, and for a 
mortgage loan secured by a 4-family residence 
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the limit shall equal 192 percent of the limit for 
a mortgage loan secured by a 1-family resi-
dence, except that such maximum limitations 
shall be adjusted effective January 1 of each 
year beginning after the effective date of this 
Act, subject to the limitations in this sub-
section. Each adjustment shall be made by add-
ing to each such amount (as it may have been 
previously adjusted) a percentage thereof equal 
to the percentage increase, during the most re-
cent 12-month or 4-quarter period ending be-
fore the time of determining such annual ad-
justment, in the housing price index maintained 
by Ginnie Mae pursuant to paragraph (4). If 
the change in such house price index during the 
most recent 12-month or 4-quarter period end-
ing before the time of determining such annual 
adjustment is a decrease, then no adjustment 
shall be made for the next year, and the next 
upward adjustment shall take into account 
prior declines in the house price index, so that 
any adjustment shall reflect the net change in 
the house price index since the last adjustment. 
Declines in the house price index shall be accu-
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mulated and then reduce increases until subse-
quent increases exceed prior declines. 
(B) HIGH-COST AREA LIMITS.—The limita-
tions set forth in subparagraph (A) may be in-
creased by not more than 50 percent with re-
spect to properties located in Alaska, Guam, 
Hawaii, and the Virgin Islands. Such foregoing 
limitations shall also be increased, with respect 
to properties of a particular size located in any 
area for which 115 percent of the median house 
price for such size residence exceeds the limita-
tion for such size residence set forth under sub-
paragraph (A), to the lesser of 150 percent of 
such limitation for such size residence or the 
amount that is equal to 115 percent of the me-
dian house price in such area for such size resi-
dence. 
(4) HOUSING PRICE INDEX.— 
(A) NATIONAL INDEX.—Ginnie Mae shall 
establish and maintain a method of assessing a 
national average single-family house price for 
use in calculating the loan limits for single-fam-
ily mortgage loans under paragraph (3), and 
other averages as Ginnie Mae considers appro-
priate, including— 
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(i) averages based on different geo-
graphic regions; and 
(ii) an average for houses whose mort-
gage collateralized single-family covered se-
curities. 
(B) CONSIDERATIONS.—In establishing the 
method described under subparagraph (A), 
Ginnie Mae may take into consideration such 
data, including existing house price indexes, 
and other measures as Ginnie Mae considers 
appropriate. 
(g) 
AUTHORITY
FOR
LOAN-LEVEL
ENHANCE-
MENT.—With respect to an eligible mortgage loan that is 
or will be contained in a pool of mortgages delivered to 
the Platform, the mortgage originator of such mortgage 
loan may enter into agreements with market participants 
to provide loan-level enhancement of such mortgage loan. 
(h) CERTIFICATION.—Ginnie Mae shall, upon a de-
termination that the Platform is able to efficiently carry 
out the issuance of standardized mortgage-backed securi-
ties and that there exists a sufficient number of market 
participants to serve as insurers and reinsurers under sec-
tion 202, certify to the Congress that such determination 
has been made. 
(i) DUTY TO SERVE ALL MARKETS.— 
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(1) IN GENERAL.—In carrying out its respon-
sibilities under this title, Ginnie Mae shall facilitate 
the broad availability of mortgage credit and sec-
ondary mortgage market financing through fluctua-
tions in the business cycle for single-family and mul-
tifamily lending across all— 
(A) regions; 
(B) localities; 
(C) institutions; 
(D) property types, including housing serv-
ing renters; and 
(E) borrowers. 
(2) REPORT TO CONGRESS.—Ginnie Mae shall 
issue a semiannual report to the Congress on— 
(A) how Ginnie Mae is carrying out the 
duties required under paragraph (1); and 
(B) the extent to which the provisions of 
this title and the programs carried out pursu-
ant to this title are benefitting underserved 
communities. 
(j) EXEMPTION FROM SEC LAWS
AND REGULA-
TIONS.—Standardized mortgage-backed securities issued 
by the Platform shall be exempt from the Federal securi-
ties laws (as defined under section 3(a) of the Securities 
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Exchange Act of 1934) and all regulations issued pursu-
ant to such laws. 
SEC. 202. INSURANCE. 
(a) IN GENERAL.—Ginnie Mae shall insure 100 per-
cent of each security issued by the Platform, as provided 
in this section. 
(b) PRIVATE REINSURANCE.—Ginnie Mae shall es-
tablish one of the two programs described under para-
graphs (1) and (2). In selecting which program to estab-
lish, Ginnie Mae shall determine which program is the 
most efficient way to operate the insurance requirements 
under this Act by incorporating private sector pricing. 
(1) REINSURANCE BID PROGRAM.—A Reinsur-
ance Bid Program, which shall include the following: 
(A) FORWARD
CONTRACT
FOR
FIRST
PERCENT LOSS.—Prior to any particular quar-
ter (or such other time period determined by 
Ginnie Mae), Ginnie Mae shall enter into con-
tracts with market participants to reinsure the 
first 5 percent of loss on all securities issued by 
the Platform in such quarter (or other time pe-
riod). 
(B) FORWARD
CONTRACT
FOR
LAST
PERCENT LOSS.—Prior to any particular quar-
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ter (or such other time period determined by 
Ginnie Mae), Ginnie Mae shall sign— 
(i) contracts with market participants 
to reinsure the last 95 percent of loss on 
all securities issued by the Platform in 
such quarter (or other time period); and 
(ii) a retrocession contract with each 
such market participant under which 
Ginnie Mae will agree to offer retrocession-
al reinsurance to reinsure up to 90 percent 
of the 95 percent described under clause 
(i) on a pari passu basis. 
(2) GUARANTOR PROGRAM.—A Guarantor Pro-
gram, which shall include the following: 
(A) 
FIRST
LOSS
REQUIREMENT.—The 
mortgage originator or aggregator that wishes 
to deliver a pool of eligible mortgage loans to 
the Platform for securitization shall, prior to 
delivering such pool, contract directly with a 
market participant to insure the first 5 percent 
of loss on all securities issued by the Platform 
that are securitized by such pool of eligible 
mortgage loans. 
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(B) COVERAGE
FOR
LAST
PERCENT 
LOSS.—For each security described under sub-
paragraph (A) Ginnie Mae shall sign— 
(i) contracts with market participants 
to reinsure the last 95 percent of loss on 
the security; and 
(ii) a retrocession contract with each 
such market participant under which 
Ginnie Mae will agree to offer retrocession-
al reinsurance to reinsure up to 90 percent 
of the 95 percent described under clause 
(i) on a pari passu basis. 
(C) ABILITY TO SELECT MARKET PARTICI-
PANTS.— 
(i) IN GENERAL.—If Ginnie Mae de-
termines that it would be an efficient way 
to operate the insurance requirements 
under this Act and would encourage the in-
corporation of private sector pricing, 
Ginnie Mae may allow mortgage origina-
tors and aggregators described under sub-
paragraph (A) to select the market partici-
pant described under subparagraph (B). 
(ii) HANDLING
OF
PRE-SELECTED 
MARKET PARTICIPANTS.—If a market par-
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ticipant is selected by a mortgage origi-
nator or aggregator, as described under 
clause (i)— 
(I) such market participants shall 
be required to meet the same stand-
ards as a market participant selected 
by Ginnie Mae; and 
(II) for purposes of determining 
the insurance fee described under sub-
section (d), Ginnie Mae shall contract 
with a private sector insurer to esti-
mate the risk that the market partici-
pant may default. 
(c) ADDITIONAL PROGRAM REQUIREMENTS.— 
(1) COMPETITIVE
BIDDING
PROCESS.—Ginnie 
Mae shall use a competitive bidding process to deter-
mine which market participants should be granted 
contracts under subsection (b)(1) and, except as pro-
vided under subsection (b)(2)(C), under subsection 
(b)(2)(B). 
(2) USE OF INSURANCE BROKER.—With respect 
to any market participant that Ginnie Mae selects 
under a risk sharing program, Ginnie Mae shall se-
lect an insurance broker, through a competitive bid-
ding process, that will solicit bids, on behalf of 
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Ginnie Mae, for the reinsurance contracts under 
such program. 
(3) CEDING COMMISSION.—As part of a ret-
rocession contract under subsection (b)(1)(B)(ii) or 
subsection (b)(2)(B)(ii), the market participants 
shall be paid a competitively determined ceding com-
mission for the underwriting and administrative 
costs of providing such reinsurance. 
(4) PHASE-IN.—Ginnie Mae may, if it deter-
mines it appropriate— 
(A) phase-in the 5 percent requirements 
under subsections (b)(1)(A) and (b)(2)(A), by 
originally requiring a lower percentage; and 
(B) phase-in the 90 percent requirement 
under 
subsections 
(b)(1)(B)(ii) 
and 
(b)(2)(B)(ii), by originally requiring a higher 
percentage. 
(d) INSURANCE FEE AND TERMS.— 
(1) PRE-PRICING OF INSURANCE FEE.—Ginnie 
Mae shall set the insurance fee applicable to securi-
ties issued by the Platform in advance on a quarter- 
by-quarter basis, through forward contracts estab-
lished with market participants based on the volume 
and type of securities Ginnie Mae anticipates the 
Platform issuing during such quarter. 
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(2) COMPONENTS OF INSURANCE FEE.— 
(A) IN GENERAL.—The insurance fee shall 
reflect the anticipated cost to Ginnie Mae of 
providing insurance, including the cost of ob-
taining reinsurance under subsection (b). 
(B) ADJUSTMENT
FOR
PERFORMANCE.— 
Ginnie Mae may adjust the fee computed under 
subparagraph (A) to reflect the historic quality 
of deliveries and rating of mortgage loans made 
by the mortgage originators or aggregators that 
originated or aggregated the mortgage loans in-
cluded in the pool of eligible mortgage loans 
backing the security being insured, but in mak-
ing such adjustments, Ginnie Mae shall ensure 
that the weighted average of the entire book of 
business matches the ultimate price determina-
tion. 
(3) RATE
ADJUSTMENT
PERIOD.—The rate 
charged by a private market participant that con-
tracts with Ginnie Mae pursuant to subsection (b)— 
(A) may not change during the first 100- 
day period for which such reinsurance is effec-
tive; and 
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(B) shall be adjusted based on market con-
ditions, on a period to be determined by the Di-
rector. 
(e) STANDARDS FOR MARKET PARTICIPANTS.— 
(1) IN GENERAL.—Ginnie Mae shall issue such 
general standards for market participants described 
under subsection (b) as Ginnie Mae determines ap-
propriate. 
(2) CREDIT RATING REQUIREMENTS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, Ginnie Mae shall require 
a market participant described under subsection 
(b) to maintain at least an A¥ credit rating 
and shall consult with credit rating agencies 
and State insurance commissions, where appli-
cable, to verify such rating. 
(B) FLEXIBILITY FOR NEW COMPANIES.— 
Ginnie Mae may waive or modify the require-
ment under subparagraph (A) with respect to a 
new market participant. 
(3) CAPITAL STANDARDS FOR MARKET PARTICI-
PANTS.— 
(A) IN
GENERAL.—For market partici-
pants described under subsection (b), Ginnie 
Mae shall establish, by regulation, capital 
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standards and related solvency standards nec-
essary to implement the provisions of this Act. 
(B) DEFINITIONS.— 
(i) IN GENERAL.—The regulations re-
quired under this paragraph shall define 
all such terms as are necessary to carry 
out the purposes of this paragraph. 
(ii) CONSIDERATIONS
IN
DEFINING 
INSTRUMENTS
AND
CONTRACTS
THAT 
QUALIFY AS CAPITAL.—In defining instru-
ments and contracts that qualify as capital 
pursuant to subparagraph (A), Ginnie 
Mae— 
(I) shall include such instruments 
and contracts that will absorb losses 
before the Fund; and 
(II) may assign significance to 
those instruments and contracts based 
on the nature and risks of such in-
struments and contracts. 
(iii) CONSIDERATIONS
IN
DEFINING 
CAPITAL RATIOS.—Solely for the purposes 
of calculating a capital ratio appropriate to 
the business model of a market participant 
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pursuant to subparagraph (A), Ginnie Mae 
shall consider for the denominator— 
(I) total assets; 
(II) total liabilities; 
(III) risk in force; or 
(IV) unpaid principal balance. 
(C) DESIGNED TO ENSURE SAFETY AND 
SOUNDNESS.—The capital and related solvency 
standards established under this paragraph 
shall be designed to— 
(i) ensure the safety and soundness of 
a market participant; 
(ii) minimize the risk of loss to the 
Fund; 
(iii) in consultation and coordination 
with the Board of Governors of the Fed-
eral Reserve System, the Federal Deposit 
Insurance Corporation, and the Office of 
the Comptroller of the Currency, reduce 
the potential for regulatory arbitrage be-
tween capital standards for market partici-
pants and capital standards promulgated 
by Federal regulatory agencies for insured 
depository institutions and their affiliates; 
and 
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(iv) be specifically tailored to accom-
modate a diverse range of business models 
that may be employed by market partici-
pants. 
(D) SUPPLEMENTAL
CAPITAL
REQUIRE-
MENTS.— 
(i) IN GENERAL.—In order to prevent 
or mitigate risks to the secondary mort-
gage market of the United States that 
could arise from the material financial dis-
tress or failure, or ongoing activities, of 
large market participants that insure secu-
rities under this Act, Ginnie Mae, by regu-
lation— 
(I) shall establish supplemental 
capital requirements for such large 
market participants; and 
(II) may establish such other 
standards that Ginnie Mae determines 
necessary or appropriate. 
(ii) LARGE MARKET PARTICIPANT DE-
FINED.—For purposes of this subpara-
graph, Ginnie Mae shall define the term 
‘‘large market participant’’. 
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(f) CONFLICT
OF INTERESTS.—Ginnie Mae shall 
issue regulations to prevent conflicts of interest by market 
participants contracting with Ginnie Mae under this sec-
tion. 
(g) INSURANCE FUND.— 
(1) ESTABLISHMENT.—There is established an 
insurance fund (the ‘‘Fund’’), which Ginnie Mae 
shall— 
(A) maintain and administer; and 
(B) use to cover losses incurred under this 
section with respect to mortgage-backed securi-
ties. 
(2) FUND GOAL.— 
(A) IN GENERAL.—Ginnie Mae shall en-
deavor to ensure that the Fund attains a re-
serve balance— 
(i) of 1.25 percent of the sum of the 
outstanding principal balance of the securi-
ties for which insurance is being provided 
under this Act within 5 years of the date 
on which the Director determines that the 
Platform is fully functioning, and to strive 
to maintain such ratio thereafter, subject 
to clause (ii); and 
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(ii) of 2.50 percent of the sum of the 
outstanding principal balance of the securi-
ties for which insurance is being provided 
under this Act within 10 years of the date 
on which the Director determines that the 
Platform is fully functioning, and to strive 
to maintain such ratio at all times there-
after. 
(B) ADJUSTMENT
OF
FEES.—Notwith-
standing subsection (d), Ginnie Mae may raise 
or lower the fee charged for insurance under 
this section in order to maintain the reserve 
balance described under subparagraph (A). 
(3) DEPOSITS.—The Fund shall be credited 
with any fees received by Ginnie Mae in exchange 
for insurance made available under this section. 
(4) PROHIBITED
INVESTMENTS.—Amounts in 
the Fund may not be invested in any— 
(A) standardized mortgage-backed security 
insured under this Act; or 
(B) mortgage-backed security issued by the 
enterprises. 
(5) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the 
payment of all amounts which may be required to be 
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paid under any insurance provided under this sec-
tion. 
SEC. 203. AUTHORITY TO PROTECT TAXPAYERS IN UN-
USUAL AND EXIGENT MARKET CONDITIONS. 
(a) IN GENERAL.—If Ginnie Mae, upon the written 
agreement of the Chairman of the Board of Governors of 
the Federal Reserve System and the Secretary of the 
Treasury, and in consultation with the Secretary of Hous-
ing and Urban Development, determines that unusual and 
exigent circumstances have created or threaten to create 
an anomalous lack of mortgage credit availability within 
the single-family housing market, multifamily housing 
market, or entire United States housing market that could 
materially and severely disrupt the functioning of the 
housing finance system of the United States, Ginnie Mae 
may, for a period of 6 months— 
(1) modify or waive the reinsurance require-
ments under section 202(b); and 
(2) establish provisional standards for approved 
entities. 
(b) CONSIDERATIONS.—In exercising the authority 
granted under subsection (a), Ginnie Mae shall consider 
the severity of the conditions present in the housing mar-
kets and the risks presented to the Fund in exercising 
such authority. 
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(c) TERMS AND CONDITIONS.—Insurance provided 
under subsection (a) shall be subject to such additional 
or different limitations, restrictions, and regulations as 
Ginnie Mae may prescribe. 
(d) BAILOUT STRICTLY PROHIBITED.—In exercising 
the authority granted under subsection (a), Ginnie Mae 
may not— 
(1) provide aid to an approved entity or an af-
filiate of the approved entity, if such approved entity 
is in bankruptcy or any other Federal or State insol-
vency proceeding; or 
(2) provide aid for the purpose of assisting a 
single and specific company avoid bankruptcy or any 
other Federal or State insolvency proceeding. 
(e) NOTICE.—Not later than 7 days after authorizing 
insurance or establishing provisional standards under sub-
section (a), Ginnie Mae shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives a report that includes— 
(1) the justification for the exercise of authority 
to provide such insurance or establish such provi-
sional standards; 
(2) evidence that unusual and exigent cir-
cumstances have created or threatened to create an 
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anomalous lack of mortgage credit availability within 
the single-family housing market, multifamily hous-
ing market, or entire United States housing market 
that could materially and severely disrupt the func-
tioning of the housing finance system of the United 
States; and 
(3) evidence that failure to exercise such au-
thority would have undermined the safety and 
soundness of the housing finance system. 
(f) ADDITIONAL EXERCISE OF AUTHORITY.— 
(1) IN
GENERAL.—Subject to the limitation 
under subsection (g), the authority granted to 
Ginnie Mae under subsection (a) may be exercised 
for 2 additional 9-month periods within any given 3- 
year period, provided that Ginnie Mae, upon the 
written agreement of the Chairman of the Board of 
Governors of the Federal Reserve System and the 
Secretary of the Treasury, and in consultation with 
the Secretary of Housing and Urban Development— 
(A) determines— 
(i) for a second exercise of authority 
under subsection (a), that a second exer-
cise of authority under subsection (a) is 
necessary; or 
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(ii) for a third exercise of authority 
under subsection (a), by an affirmative 
vote of the Director of Ginnie Mae and an 
affirmative vote of 2⁄3 or more of the 
Board of Governors of the Federal Reserve 
System then serving, that a third exercise 
of authority under this section is nec-
essary; and 
(B) provides notice to Congress, as pro-
vided under subsection (e). 
(2) ORDER OF EXERCISE OF AUTHORITY.—Any 
additional exercise of authority under this subsection 
may occur consecutively or non-consecutively. 
(g) LIMITATION.—The authority granted to Ginnie 
Mae under this section may not be exercised more than 
3 times in any given 3-year period, which 3-year period 
shall commence upon the initial exercise of authority 
under subsection (a). 
(h) NORMALIZATION AND REDUCTION OF RISK.— 
Following any exercise of authority under this section, 
Ginnie Mae shall— 
(1) establish a timeline for approved entities to 
meet the approval standards set forth in this Act; 
and 
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(2) in a manner and pursuant to a timeline 
that will minimize losses to the Fund, establish a 
program to either— 
(A) sell, in whole or in part, the first loss 
position on securities described in this section 
to private market holders; or 
(B) transfer for value to approved entities, 
or work with approved entities to sell, in whole 
or in part, the first lost position on securities 
described in this section. 
(i) AUTHORITY TO RESPOND TO SUSTAINED NA-
TIONAL HOME PRICE DECLINE.— 
(1) AUTHORITY.—In the event of a significant 
decline of national home prices, in at least 2 con-
secutive calendar quarters, Ginnie Mae may for a 
period of 6 months permit the transfer of guarantees 
of eligible mortgage loans that secure securities 
issued under this Act if such eligible mortgage loans 
are refinanced, regardless of the value of the under-
lying collateral securing such eligible mortgage 
loans. 
(2) ADDITIONAL EXERCISE OF AUTHORITY.— 
The authority granted to Ginnie Mae under para-
graph (1) may be exercised for additional 6-month 
periods. 
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(3) LIMITATION.—Ginnie Mae shall not provide 
insurance under this Act to any security issued 
under this Act that includes mortgage loans that do 
not meet the definition of an eligible mortgage loan, 
except for mortgage loans refinanced from eligible 
mortgage loans in securities issued under this Act. 
(4) RULE OF CONSTRUCTION.—No provision in 
this section shall be construed as permitting Ginnie 
Mae to lower any other requirement related to the 
requirements set forth under the definition of an eli-
gible mortgage loan. 
SEC. 204. SERVICING RIGHTS; REPRESENTATIONS AND 
WARRANTIES. 
(a) SERVICING RIGHTS.—The servicing rights for 
mortgage-backed securities issued by the Issuing Platform 
shall be controlled by— 
(1) the reinsurance company reinsuring the 
first 5 percent loss position on such securities; or 
(2) in the case of securities that do not have a 
reinsurance company reinsuring the first 5 percent 
loss position or with respect to which the such rein-
surance company is insolvent, Ginnie Mae. 
(b) ADVANCING OF PAYMENTS.—The party control-
ling the servicing rights described under subsection (a) 
shall also control the advancing of payments. 
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(c) REPRESENTATIONS AND WARRANTIES.— 
(1) COLLATERAL MANAGER.—With respect to 
each pool securitized by the Issuing Platform, there 
shall be a collateral manager who shall— 
(A) oversee representations and warran-
ties; 
(B) act for the benefit of investors; and 
(C) in the case of a mortgage loan that is 
in breach of the representations and warranties, 
facilitate the repurchase or replacement of such 
mortgage loan with a mortgage loan that is in 
compliance with representations and warranties. 
(2) FIDUCIARY DUTIES WITH RESPECT TO PRI-
VATE LABEL SECURITIES.— 
(A) IN GENERAL.—All contracts for pri-
vate label securities issued after the date of the 
enactment of this Act shall include the following 
provisions: 
(i) The qualification, responsibilities, 
and duties of trustees, including require-
ments set forth in the indenture or pooling 
and servicing agreement, or any applicable 
provisions of the Trust Indenture Act of 
1939 (15 U.S.C. 77aaa et seq.). 
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(ii) Trustees of private label securities 
shall have a fiduciary duty to protect the 
financial interests of investors of such se-
curities. 
(B) TRUSTEE’S
FIDUCIARY
DUTY
DE-
FINED.—For purposes of this paragraph, a 
trustee’s fiduciary duty means that a trustee 
shall at all times oversee, monitor, and manage 
the trust that owns the mortgage loans securing 
the private label securities in the financial inter-
ests of the trust and its investors, with the 
same degree of care and skill that a prudent 
person would exercise or use under the cir-
cumstances in the conduct of such person’s own 
affairs. ln determining financial interests, the 
trustee’s fiduciary duty shall consider all inves-
tors in a securitization, rather than the inter-
ests of any particular class of investors. A 
trustee that is deemed to be acting in accord-
ance with its fiduciary duty to the trust shall 
not be liable to any investor, and shall not be 
subject to any injunction, stay, or other equi-
table relief sought by such investor, based solely 
upon such actions. 
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(C) INCLUSION OF FIDUCIARY DUTY.—The 
governing documents of any private label secu-
rities issued after the date of the enactment of 
this Act shall automatically be deemed to in-
clude a trustee’s fiduciary duty. The trustee’s 
fiduciary duty may not be abrogated or altered 
by the parties to such documents and may not 
be amended by parties to contracts for private 
label securities. 
(D) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall be construed to relieve any 
party of its duties to participants and bene-
ficiaries of any employee benefit plan under the 
Employee Retirement Income Security Act (29 
U.S.C. 1101 et seq.). 
(E) CONFLICTS WITH THE TRUST INDEN-
TURE ACT OF 1939.—To the extent that the pro-
visions of this paragraph conflict with any pro-
vision of the Trust Indenture Act of 1939, the 
provisions of the Trust Indenture Act of 1939 
shall apply, but only to the extent of the con-
flict. 
(F) STUDY.—Not later than 3 years after 
the date of enactment of this Act, Ginnie Mae 
shall— 
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(i) conduct a study to evaluate— 
(I) the structure of compensation 
for trustees of private label securities; 
(II) any changes to such com-
pensation attributable io the imposi-
tion of the fiduciary duty required 
under this paragraph; and 
(III) any effects of the imposition 
of such fiduciary duty on liquidity in 
the market for private label securities; 
(ii) not later than 1 year after the 
commencement of the study required under 
clause (i), submit a report to Congress de-
scribing any findings and conclusions of 
such study; 
(iii) conduct a study to evaluate any 
effects of the imposition of the fiduciary 
duty required under this paragraph upon 
borrowers, including if the imposition of’ 
such fiduciary duty results in additional 
costs and expenses to borrowers; and 
(iv) not later than 1 year after the 
commencement of the study required under 
clause (iii), submit a report to Congress 
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describing any findings and conclusions of 
such study. 
(G) 
PRIVATE
LABEL
SECURITY
DE-
FINED.—For purposes of this paragraph, the 
term ‘‘private label security’’ means a mort-
gage-backed security that is not issued by the 
Platform. 
(d) MANDATORY ARBITRATION.—Disputes between 
parties to a security issued by the Issuing Platform shall 
be subject to mandatory arbitration. 
SEC. 205. FEDERAL HOME LOAN BANKS. 
(a) MEMBERSHIP OF LENDERS.—Section 4 of the 
Federal Home Loan Bank Act (12 U.S.C. 1424) is 
amended by adding at the end the following: 
‘‘(d) LENDERS.— 
‘‘(1) IN GENERAL.—Any lender that satisfies 
the requirements of subparagraphs (A) and (C) of 
subsection (a)(1) shall be eligible to become a mem-
ber of a Federal Home Loan Bank. 
‘‘(2) STOCK REQUIREMENT.—Ginnie Mae shall 
issue regulations specifying that a separate class of 
stock shall be issued by Federal Home Loan Banks 
to lenders who become a member of a Federal Home 
Loan Bank pursuant to this subsection, and Ginnie 
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Mae shall determine the applicable restrictions and 
requirements for such stock.’’. 
(b) POOLING
SERVICES
FOR
ELIGIBLE
MORT-
GAGES.—Section 11 of the Federal Home Loan Bank Act 
(12 U.S.C. 1431) is amended by adding at the end the 
following: 
‘‘(m) POOLING SERVICES
FOR ELIGIBLE MORT-
GAGES.— 
‘‘(1) POOLING SERVICES.—Each Federal Home 
Loan Bank shall provide pooling services to both 
members and non-members who wish to pool eligible 
mortgages for purposes of securitizing such mort-
gages through the Issuing Platform established by 
title II of the Partnership to Strengthen Homeown-
ership Act of 2014. 
‘‘(2) ELIGIBLE
MORTGAGES
DEFINED.—For 
purposes of this subsection, the term ‘eligible mort-
gage’ has the meaning given that term under section 
2 of the Partnership to Strengthen Homeownership 
Act of 2014.’’. 
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TITLE III—WIND DOWN OF 
FANNIE MAE AND FREDDIE MAC 
SEC. 301. LIMITATION ON BUSINESS. 
The Director of the Government National Mortgage 
Association shall provide that, after the certification 
date— 
(1) the enterprises may not issue, guarantee, or 
purchase any security backed by mortgages on 1- to 
4-family residences except as specifically authorized 
by this Act; 
(2) an enterprise may act as a participating 
aggregator of eligible mortgages for securitization 
pursuant to section 201 if such eligible mortgages 
are originated by originators whose volume of such 
business is insufficient to allow for such originators 
to aggregate and securitize such mortgages, until 
the earlier of— 
(A) such time as the Director determines 
that any other qualified entity or entities pro-
vide sufficient market access to such originators 
under competitive rates and terms and requires 
the enterprises to cease such business; or 
(B) the commencement of the receivership 
under section 304(a); and 
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(3) an enterprise may act as a reinsurer for a 
mortgage-backed security in accordance with the re-
quirements under section 202(b) until the com-
mencement of the receivership under section 304(a). 
SEC. 302. RISK-SHARING PILOT PROGRAMS. 
Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, each 
enterprise shall establish a risk-sharing pilot program to 
develop private sector first-loss positions on mortgage- 
backed securities. Such first-loss positions shall be a per-
centage of the principal or face value of a mortgage- 
backed security, as determined from time-to-time by the 
Director, taking into consideration market conditions and 
the capability of the private sector to assume credit risk. 
SEC. 303. CONTINUED CONSERVATORSHIP. 
(a) TIMING.—The conservatorships of the enterprises 
in effect upon the enactment of this Act shall continue 
in effect until the commencement of the receivership of 
the enterprises pursuant to subsection (d), subject to the 
transfer under section 102(a)(1)(B). 
(b) ALIGNING PURPOSES OF CONSERVATORSHIP.— 
Notwithstanding section 1367(b)(2)(D) of the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992 (12 U.S.C. 4617(b)(2)(D)), after the date of the 
enactment of this Act, the Director shall, as conservator 
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of each enterprise, take such actions as are necessary to 
manage the affairs, assets, and obligations of each enter-
prise, and to operate each enterprise, in compliance with 
this section. 
(c) RETURN OF ENTERPRISES TO PRIVATE MAR-
KET.—During the term of the conservatorships of the en-
terprises, the Director shall— 
(1) carry out the conservatorship in a manner 
that furthers achievement of the goals and terms of 
the mandatory receiverships under subsection (d)(2); 
(2) identify any assets of the enterprises nec-
essary for Ginnie Mae to carry out its functions and 
responsibilities under sections 201, 202, and 401 of 
this Act; and 
(3) prepare for the transfer of the multifamily 
housing finance business of the enterprises in ac-
cordance with section 401 of this Act. 
SEC. 304. MANDATORY RECEIVERSHIP. 
(a) COMMENCEMENT.—The Director shall, with re-
spect to each enterprise, immediately appoint the Ginnie 
Mae as receiver under section 1367 of the Federal Hous-
ing Enterprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4617) upon the later of the following: 
(1) 5-YEAR PERIOD.—The expiration of the 60- 
month period beginning on the date of the enact-
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the Partnership to Strengthen Homeownership Act 
of 2014), the charter of the Federal National Mort-
gage Association is repealed and the Federal Na-
tional Mortgage Association shall have no authority 
to conduct new business under such charter, except 
that the provisions of such charter in effect imme-
diately before such repeal shall continue to apply 
with respect to the rights and obligations of any 
holders of— 
‘‘(A) outstanding debt obligations of the 
Federal National Mortgage Association, includ-
ing any— 
‘‘(i) bonds, debentures, notes, or other 
similar instruments; 
‘‘(ii) capital lease obligations; or 
‘‘(iii) obligations in respect of letters 
of credit, bankers’ acceptances, or other 
similar instruments; or 
‘‘(B) mortgage-backed securities guaran-
teed by the Federal National Mortgage Associa-
tion that are not eligible mortgage-backed secu-
rities insured by Ginnie Mae pursuant to sec-
tion 202 of the Partnership to Strengthen 
Homeownership Act of 2014. 
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