336
(1) manage the employees of such Office and 
provide for the payment of the compensation and 
benefits of any such employee which accrue before 
the effective date of the transfer of such employee 
pursuant to section 303; and 
(2) may take any other action necessary for the 
purpose of winding up the affairs of the Office. 
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by title I and the abolishment of 
the Office of Federal Housing Enterprise Oversight under 
subsection (a) of this section may not be construed to af-
fect the status of any employee of such Office as employ-
ees of an agency of the United States for purposes of any 
other provision of law before the effective date of the 
transfer of any such employee pursuant to section 303. 
(d) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of 
the Office of Federal Housing Enterprise Oversight 
to perform functions which have been transferred to 
the Director of the Federal Housing Finance Agency 
for such time as is reasonable to facilitate the or-
derly transfer of functions transferred pursuant to 
any other provision of this Act or any amendment 
made by this Act to any other provision of law.
337
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States, 
and any successor to any such agency, department, 
or instrumentality, which was providing supporting 
services to the Office of Federal Housing Enterprise 
Oversight before the expiration of the period under 
subsection (a) in connection with functions that are 
transferred to the Director of the Federal Housing 
Finance Agency shall—
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and 
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable 
transition. 
(e) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of 
the United States, the Director of the Office of Fed-
eral Housing Enterprise Oversight, or any other per-
son, which—
(A) arises under or pursuant to the title 
XIII of the Housing and Community Develop-
ment Act of 1992, the Federal National Mort-
338
gage Association Charter Act, the Federal 
Home Loan Mortgage Corporation Act, or any 
other provision of law applicable with respect to 
such Office; and 
(B) existed on the day before the abolish-
ment under subsection (a) of this section. 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Di-
rector of the Office of Federal Housing Enterprise 
Oversight in connection with functions that are 
transferred to the Director of the Federal Housing 
Finance Agency shall abate by reason of the enact-
ment of this Act, except that the Director of the 
Federal Housing Finance Agency shall be sub-
stituted for the Director of the Office of Federal 
Housing Enterprise Oversight as a party to any 
such action or proceeding. 
SEC. 302. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
All regulations, orders, determinations, and resolu-
tions that—
(1) were issued, made, prescribed, or allowed to 
become effective by—
(A) the Office of Federal Housing Enter-
prise Oversight; or
339
(B) a court of competent jurisdiction and 
that relate to functions transferred by this sub-
title; and 
(2) are in effect on the date of the abolishment 
under section 301(a) of this Act, shall remain in ef-
fect according to the terms of such regulations, or-
ders, determinations, and resolutions, and shall be 
enforceable by or against the Director of the Federal 
Housing Finance Agency until modified, terminated, 
set aside, or superseded in accordance with applica-
ble law by such Director, as the case may be, any 
court of competent jurisdiction, or operation of law. 
SEC. 303. TRANSFER AND RIGHTS OF EMPLOYEES OF 
OFHEO. 
(a) TRANSFER.—Each employee of the Office of Fed-
eral Housing Enterprise Oversight shall be transferred to 
the Federal Housing Finance Agency for employment no 
later than the date of the abolishment under section 
301(a) of this Act and such transfer shall be deemed a 
transfer of function for purposes of section 3503 of title 
5, United States Code. 
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position 
with the same status, tenure, grade, and pay as that held 
on the day immediately preceding the transfer. Each such
340
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation 
for 12 months after the date of transfer, except for cause 
or, if the employee is a temporary employee, separated in 
accordance with the terms of the appointment. 
(c) APPOINTMENT
AUTHORITY
FOR
EXCEPTED 
SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service, any ap-
pointment authority established pursuant to law or 
regulations of the Office of Personnel Management 
for filling such positions shall be transferred, subject 
to paragraph (2). 
(2) DECLINE OF TRANSFER.—The Director of 
the Federal Housing Finance Agency may decline a 
transfer of authority under paragraph (1) (and the 
employees appointed pursuant thereto) to the extent 
that such authority relates to positions excepted 
from the competitive service because of their con-
fidential, policy-making, policy-determining, or pol-
icy-advocating character. 
(d) REORGANIZATION.—If the Director of the Fed-
eral Housing Finance Agency determines, after the end 
of the 1-year period beginning on the date of the abolish-
ment under section 301(a), that a reorganization of the
341
combined work force is required, that reorganization shall 
be deemed a major reorganization for purposes of afford-
ing 
affected 
employees 
retirement 
under 
section 
8336(d)(2) or 8414(b)(1)(B) of title 5, United States 
Code. 
(e) EMPLOYEE BENEFIT PROGRAMS.—Any employee 
of the Office of Federal Housing Enterprise Oversight ac-
cepting employment with the Director of the Federal 
Housing Finance Agency as a result of a transfer under 
subsection (a) may retain for 12 months after the date 
such transfer occurs membership in any employee benefit 
program of the Federal Housing Finance Agency or the 
Office of Federal Housing Enterprise Oversight, as appli-
cable, including insurance, to which such employee belongs 
on the date of the abolishment under section 301(a) if—
(1) the employee does not elect to give up the 
benefit or membership in the program; and 
(2) the benefit or program is continued by the 
Director of the Federal Housing Finance Agency, 
The difference in the costs between the benefits which 
would have been provided by such agency and those pro-
vided by this section shall be paid by the Director of the 
Federal Housing Finance Agency. If any employee elects 
to give up membership in a health insurance program or 
the health insurance program is not continued by such Di-
342
rector, the employee shall be permitted to select an alter-
nate Federal health insurance program within 30 days of 
such election or notice, without regard to any other regu-
larly scheduled open season. 
SEC. 304. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the abolishment under section 301(a), all prop-
erty of the Office of Federal Housing Enterprise Oversight 
shall transfer to the Director of the Federal Housing Fi-
nance Agency. 
Subtitle B—Federal Housing 
Finance Board 
SEC. 321. ABOLISHMENT OF THE FEDERAL HOUSING FI-
NANCE BOARD. 
(a) IN GENERAL.—Effective at the end of the 6-
month period beginning on the date of enactment of this 
Act, the Federal Housing Finance Board (in this title re-
ferred to as the ‘‘Board’’) is abolished. 
(b) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of enactment of this Act, the 
Board, for the purpose of winding up the affairs of the 
Board and in addition to carrying out its other responsibil-
ities under law—
(1) shall manage the employees of such Board 
and provide for the payment of the compensation 
and benefits of any such employee which accrue be-
343
fore the effective date of the transfer of such em-
ployee under section 323; and 
(2) may take any other action necessary for the 
purpose of winding up the affairs of the Board. 
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by titles I and II and the abolish-
ment of the Board under subsection (a) may not be con-
strued to affect the status of any employee of such Board 
as employees of an agency of the United States for pur-
poses of any other provision of law before the effective 
date of the transfer of any such employee under section 
323. 
(d) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of 
the Board to perform functions which have been 
transferred to the Director of the Federal Housing 
Finance Agency for such time as is reasonable to fa-
cilitate the orderly transfer of functions transferred 
under any other provision of this Act or any amend-
ment made by this Act to any other provision of law. 
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States, 
and any successor to any such agency, department, 
or instrumentality, which was providing supporting
344
services to the Board before the expiration of the pe-
riod under subsection (a) in connection with func-
tions that are transferred to the Director of the 
Federal Housing Finance Agency shall—
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and 
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable 
transition. 
(e) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of 
the United States, a member of the Board, or any 
other person, which—
(A) arises under the Federal Home Loan 
Bank Act or any other provision of law applica-
ble with respect to such Board; and 
(B) existed on the day before the effective 
date of the abolishment under subsection (a). 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the 
Board in connection with functions that are trans-
ferred to the Director of the Federal Housing Fi-
345
nance Agency shall abate by reason of the enactment 
of this Act, except that the Director of the Federal 
Housing Finance Agency shall be substituted for the 
Board or any member thereof as a party to any such 
action or proceeding. 
SEC. 322. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
(a) IN GENERAL.—All regulations, orders, deter-
minations, and resolutions described under subsection (b) 
shall remain in effect according to the terms of such regu-
lations, orders, determinations, and resolutions, and shall 
be enforceable by or against the Director of the Federal 
Housing Finance Agency until modified, terminated, set 
aside, or superseded in accordance with applicable law by 
such Director, any court of competent jurisdiction, or op-
eration of law. 
(b) APPLICABILITY.—A regulation, order, determina-
tion, or resolution is described under this subsection if it—
(1) was issued, made, prescribed, or allowed to 
become effective by—
(A) the Board; or 
(B) a court of competent jurisdiction and 
relates to functions transferred by this subtitle; 
and
346
(2) is in effect on the effective date of the abol-
ishment under section 321(a). 
SEC. 323. TRANSFER AND RIGHTS OF EMPLOYEES OF THE 
FEDERAL HOUSING FINANCE BOARD. 
(a) TRANSFER.—Each employee of the Board shall 
be transferred to the Federal Housing Finance Agency for 
employment not later than the effective date of the abol-
ishment under section 321(a), and such transfer shall be 
deemed a transfer of function for purposes of section 3503 
of title 5, United States Code. 
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position 
with the same status, tenure, grade, and pay as that held 
on the day immediately preceding the transfer. Each such 
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation 
for 12 months after the date of transfer, except for cause 
or, if the employee is a temporary employee, separated in 
accordance with the terms of the appointment. 
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND 
SENIOR EXECUTIVE SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service or the Sen-
ior Executive Service, any appointment authority es-
tablished under law or by regulations of the Office
347
of Personnel Management for filling such positions 
shall be transferred, subject to paragraph (2). 
(2) DECLINE OF TRANSFER.—The Director of 
the Federal Housing Finance Agency may decline a 
transfer of authority under paragraph (1) to the ex-
tent that such authority relates to positions excepted 
from the competitive service because of their con-
fidential, policymaking, policy-determining, or policy-
advocating character, and noncareer positions in the 
Senior Executive Service (within the meaning of sec-
tion 3132(a)(7) of title 5, United States Code). 
(d) REORGANIZATION.—If the Director of the Fed-
eral Housing Finance Agency determines, after the end 
of the 1-year period beginning on the effective date of the 
abolishment under section 321(a), that a reorganization 
of the combined workforce is required, that reorganization 
shall be deemed a major reorganization for purposes of 
affording affected employees retirement under section 
8336(d)(2) or 8414(b)(1)(B) of title 5, United States 
Code. 
(e) EMPLOYEE BENEFIT PROGRAMS.—
(1) IN GENERAL.—Any employee of the Board 
accepting employment with the Federal Housing Fi-
nance Agency as a result of a transfer under sub-
section (a) may retain for 12 months after the date
348
on which such transfer occurs membership in any 
employee benefit program of the Federal Housing 
Finance Agency or the Board, as applicable, includ-
ing insurance, to which such employee belongs on 
the effective date of the abolishment under section 
321(a) if—
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director of the Federal Housing Finance 
Agency. 
(2) COST
DIFFERENTIAL.—The difference in 
the costs between the benefits which would have 
been provided by the Board and those provided by 
this section shall be paid by the Director of the Fed-
eral Housing Finance Agency. If any employee elects 
to give up membership in a health insurance pro-
gram or the health insurance program is not contin-
ued by such Director, the employee shall be per-
mitted to select an alternate Federal health insur-
ance program within 30 days after such election or 
notice, without regard to any other regularly sched-
uled open season.
349
SEC. 324. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the effective date of the abolishment under sec-
tion 321(a), all property of the Board shall transfer to 
the Director of the Federal Housing Finance Agency. 
Subtitle C—Department of Housing 
and Urban Development 
SEC. 341. TERMINATION OF ENTERPRISE-RELATED FUNC-
TIONS. 
(a) TERMINATION DATE.—For purposes of this sub-
title, the term ‘‘termination date’’ means the date that oc-
curs 6 months after the date of the enactment of this Act. 
(b) DETERMINATION OF TRANSFERRED FUNCTIONS 
AND EMPLOYEES.—
(1) IN GENERAL.—Not later than the expira-
tion of the 3-month period beginning on the date of 
the enactment of this Act, the Secretary, in con-
sultation with the Director of the Office of Federal 
Housing Enterprise Oversight, shall determine—
(A) the functions, duties, and activities of 
the Secretary of Housing and Urban Develop-
ment regarding oversight or regulation of the 
enterprises under or pursuant to the author-
izing statutes, title XIII of the Housing and 
Community Development Act of 1992, and any 
other provisions of law, as in effect before the 
date of the enactment of this Act, but not in-
350
cluding any such functions, duties, and activi-
ties of the Director of the Office of Federal 
Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development and 
such Office; and 
(B) the employees of the Department of 
Housing and Urban Development necessary to 
perform such functions, duties, and activities. 
(2) ENTERPRISE-RELATED
FUNCTIONS.—For 
purposes of this subtitle, the term ‘‘enterprise-re-
lated functions of the Department’’ means the func-
tions, duties, and activities of the Department of 
Housing and Urban Development determined under 
paragraph (1)(A). 
(3) ENTERPRISE-RELATED
EMPLOYEES.—For 
purposes of this subtitle, the term ‘‘enterprise-re-
lated employees of the Department’’ means the em-
ployees of the Department of Housing and Urban 
Development determined under paragraph (1)(B). 
(c) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of enactment of this Act, the 
Secretary of Housing and Urban Development (in this 
title referred to as the ‘‘Secretary’’), for the purpose of 
winding up the affairs of the Secretary regarding the en-
terprise-related functions of the Department of Housing
351
and Urban Development (in this title referred to as the 
‘‘Department’’) and in addition to carrying out the Sec-
retary’s other responsibilities under law regarding such 
functions—
(1) shall manage the enterprise-related employ-
ees of the Department and provide for the payment 
of the compensation and benefits of any such em-
ployee which accrue before the effective date of the 
transfer of any such employee under section 343; 
and 
(2) may take any other action necessary for the 
purpose of winding up the enterprise-related func-
tions of the Department. 
(d) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by titles I and II and the termi-
nation of the enterprise-related functions of the Depart-
ment under subsection (b) may not be construed to affect 
the status of any employee of the Department as employ-
ees of an agency of the United States for purposes of any 
other provision of law before the effective date of the 
transfer of any such employee under section 343. 
(e) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of 
the Secretary to perform functions which have been
352
transferred to the Director of the Federal Housing 
Finance Agency for such time as is reasonable to fa-
cilitate the orderly transfer of functions transferred 
under any other provision of this Act or any amend-
ment made by this Act to any other provision of law. 
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States, 
and any successor to any such agency, department, 
or instrumentality, which was providing supporting 
services to the Secretary regarding enterprise-related 
functions of the Department before the termination 
date under subsection (a) in connection with such 
functions that are transferred to the Director of the 
Federal Housing Finance Agency shall—
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and 
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable 
transition. 
(f) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of
353
the United States, the Secretary, or any other per-
son, which—
(A) arises under the authorizing statutes, 
title XIII of the Housing and Community De-
velopment Act of 1992, or any other provision 
of law applicable with respect to the Secretary, 
in connection with the enterprise-related func-
tions of the Department; and 
(B) existed on the day before the termi-
nation date under subsection (a). 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Sec-
retary in connection with the enterprise-related func-
tions of the Department shall abate by reason of the 
enactment of this Act, except that the Director of 
the Federal Housing Finance Agency shall be sub-
stituted for the Secretary or any member thereof as 
a party to any such action or proceeding. 
SEC. 342. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
(a) IN GENERAL.—All regulations, orders, and deter-
minations described in subsection (b) shall remain in ef-
fect according to the terms of such regulations, orders, 
determinations, and resolutions, and shall be enforceable 
by or against the Director of the Federal Housing Finance
354
Agency until modified, terminated, set aside, or super-
seded in accordance with applicable law by such Director, 
any court of competent jurisdiction, or operation of law. 
(b) APPLICABILITY.—A regulation, order, or deter-
mination is described under this subsection if it—
(1) was issued, made, prescribed, or allowed to 
become effective by—
(A) the Secretary; or 
(B) a court of competent jurisdiction and 
that relate to the enterprise-related functions of 
the Department; and 
(2) is in effect on the termination date under 
section 341(a). 
SEC. 343. TRANSFER AND RIGHTS OF EMPLOYEES OF DE-
PARTMENT OF HOUSING AND URBAN DEVEL-
OPMENT. 
(a) TRANSFER.—
(1) IN GENERAL.—Except as provided in para-
graph (2), each enterprise-related employee of the 
Department shall be transferred to the Federal 
Housing Finance Agency for employment not later 
than the termination date under section 341(a) and 
such transfer shall be deemed a transfer of function 
for purposes of section 3503 of title 5, United States 
Code.
355
(2) AUTHORITY TO DECLINE.—An enterprise-
related employee of the Department may, in the dis-
cretion of the employee, decline transfer under para-
graph (1) to a position in the Federal Housing Fi-
nance Agency and shall be guaranteed a position in 
the Department with the same status, tenure, grade, 
and pay as that held on the day immediately pre-
ceding the date that such declination was made. 
Each such employee holding a permanent position 
shall not be involuntarily separated or reduced in 
grade or compensation for 12 months after the date 
that the transfer would otherwise have occurred, ex-
cept for cause or, if the employee is a temporary em-
ployee, separated in accordance with the terms of 
the appointment. 
(b) GUARANTEED POSITIONS.—Each enterprise-re-
lated employee of the Department transferred under sub-
section (a) shall be guaranteed a position with the same 
status, tenure, grade, and pay as that held on the day 
immediately preceding the transfer. Each such employee 
holding a permanent position shall not be involuntarily 
separated or reduced in grade or compensation for 12 
months after the date of transfer, except for cause or, if 
the employee is a temporary employee, separated in ac-
cordance with the terms of the appointment.
356
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND 
SENIOR EXECUTIVE SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service or the Sen-
ior Executive Service, any appointment authority es-
tablished under law or by regulations of the Office 
of Personnel Management for filling such positions 
shall be transferred, subject to paragraph (2). 
(2) DECLINE OF TRANSFER.—The Director of 
the Federal Housing Finance Agency may decline a 
transfer of authority under paragraph (1) (and the 
employees appointed pursuant thereto) to the extent 
that such authority relates to positions excepted 
from the competitive service because of their con-
fidential, policymaking, policy-determining, or policy-
advocating character, and noncareer positions in the 
Senior Executive Service (within the meaning of sec-
tion 3132(a)(7) of title 5, United States Code). 
(d) REORGANIZATION.—If the Director of the Fed-
eral Housing Finance Agency determines, after the end 
of the 1-year period beginning on the termination date 
under section 341(a), that a reorganization of the com-
bined workforce is required, that reorganization shall be 
deemed a major reorganization for purposes of affording
357
affected employees retirement under section 8336(d)(2) or 
8414(b)(1)(B) of title 5, United States Code. 
(e) EMPLOYEE BENEFIT PROGRAMS.—
(1) IN GENERAL.—Any enterprise-related em-
ployee of the Department accepting employment 
with the Federal Housing Finance Agency as a re-
sult of a transfer under subsection (a) may retain 
for 12 months after the date on which such transfer 
occurs membership in any employee benefit program 
of the Federal Housing Finance Agency or the De-
partment, as applicable, including insurance, to 
which such employee belongs on the termination 
date under section 341(a) if—
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director of the Federal Housing Finance 
Agency. 
(2) COST
DIFFERENTIAL.—The difference in 
the costs between the benefits which would have 
been provided by the Department and those provided 
by this section shall be paid by the Director of the 
Federal Housing Finance Agency. If any employee 
elects to give up membership in a health insurance 
program or the health insurance program is not con-
358
tinued by such Director, the employee shall be per-
mitted to select an alternate Federal health insur-
ance program within 30 days after such election or 
notice, without regard to any other regularly sched-
uled open season. 
SEC. 344. TRANSFER OF APPROPRIATIONS, PROPERTY, AND 
FACILITIES. 
Upon the termination date under section 341(a), all 
assets, liabilities, contracts, property, records, and unex-
pended balances of appropriations, authorizations, alloca-
tions, and other funds employed, held, used, arising from, 
available to, or to be made available to the Department 
in connection with enterprise-related functions of the De-
partment shall transfer to the Director of the Federal 
Housing Finance Agency. Unexpended funds transferred 
by this section shall be used only for the purposes for 
which the funds were originally authorized and appro-
priated. 
Passed the House of Representatives May 22, 2007. 
Attest:
Clerk.
110TH CONGRESS 
1ST SESSION 
H. R. 1427
AN ACT 
To reform the regulation of certain housing-related 
Government-sponsored enterprises, and for other 
purposes.