H. R. 1424—8 
in section 102, whichever occurs first, and every 30-day period 
thereafter, the Secretary shall report to the appropriate committees 
of Congress, with respect to each such period— 
(1) an overview of actions taken by the Secretary, including 
the considerations required by section 103 and the efforts under 
section 109; 
(2) the actual obligation and expenditure of the funds pro-
vided for administrative expenses by section 118 during such 
period and the expected expenditure of such funds in the subse-
quent period; and 
(3) a detailed financial statement with respect to the exer-
cise of authority under this Act, including— 
(A) all agreements made or renewed; 
(B) all insurance contracts entered into pursuant to 
section 102; 
(C) all transactions occurring during such period, 
including the types of parties involved; 
(D) the nature of the assets purchased; 
(E) all projected costs and liabilities; 
(F) operating expenses, including compensation for 
financial agents; 
(G) the valuation or pricing method used for each trans-
action; and 
(H) a description of the vehicles established to exercise 
such authority. 
(b) TRANCHE REPORTS TO CONGRESS.— 
(1) REPORTS.—The Secretary shall provide to the appro-
priate committees of Congress, at the times specified in para-
graph (2), a written report, including— 
(A) a description of all of the transactions made during 
the reporting period; 
(B) a description of the pricing mechanism for the 
transactions; 
(C) a justification of the price paid for and other finan-
cial terms associated with the transactions; 
(D) a description of the impact of the exercise of such 
authority on the financial system, supported, to the extent 
possible, by specific data; 
(E) a description of challenges that remain in the finan-
cial system, including any benchmarks yet to be achieved; 
and 
(F) an estimate of additional actions under the 
authority provided under this Act that may be necessary 
to address such challenges. 
(2) TIMING.—The report required by this subsection shall 
be submitted not later than 7 days after the date on which 
commitments to purchase troubled assets under the authorities 
provided in this Act first reach an aggregate of $50,000,000,000 
and not later than 7 days after each $50,000,000,000 interval 
of such commitments is reached thereafter. 
(c) REGULATORY MODERNIZATION REPORT.—The Secretary shall 
review the current state of the financial markets and the regulatory 
system and submit a written report to the appropriate committees 
of Congress not later than April 30, 2009, analyzing the current 
state of the regulatory system and its effectiveness at overseeing 
the participants in the financial markets, including the over-the-
H. R. 1424—9 
counter swaps market and government-sponsored enterprises, and 
providing recommendations for improvement, including— 
(1) recommendations regarding— 
(A) whether any participants in the financial markets 
that are currently outside the regulatory system should 
become subject to the regulatory system; and 
(B) enhancement of the clearing and settlement of 
over-the-counter swaps; and 
(2) the rationale underlying such recommendations. 
(d) SHARING OF INFORMATION.—Any report required under this 
section shall also be submitted to the Congressional Oversight 
Panel established under section 125. 
(e) SUNSET.—The reporting requirements under this section 
shall terminate on the later of— 
(1) the date that the last troubled asset acquired by the 
Secretary under section 101 has been sold or transferred out 
of the ownership or control of the Federal Government; or 
(2) the date of expiration of the last insurance contract 
issued under section 102. 
SEC. 106. RIGHTS; MANAGEMENT; SALE OF TROUBLED ASSETS; REVE-
NUES AND SALE PROCEEDS. 
(a) EXERCISE OF RIGHTS.—The Secretary may, at any time, 
exercise any rights received in connection with troubled assets 
purchased under this Act. 
(b) MANAGEMENT OF TROUBLED ASSETS.—The Secretary shall 
have authority to manage troubled assets purchased under this 
Act, including revenues and portfolio risks therefrom. 
(c) SALE OF TROUBLED ASSETS.—The Secretary may, at any 
time, upon terms and conditions and at a price determined by 
the Secretary, sell, or enter into securities loans, repurchase trans-
actions, or other financial transactions in regard to, any troubled 
asset purchased under this Act. 
(d) TRANSFER TO TREASURY.—Revenues of, and proceeds from 
the sale of troubled assets purchased under this Act, or from the 
sale, exercise, or surrender of warrants or senior debt instruments 
acquired under section 113 shall be paid into the general fund 
of the Treasury for reduction of the public debt. 
(e) APPLICATION
OF
SUNSET
TO
TROUBLED
ASSETS.—The 
authority of the Secretary to hold any troubled asset purchased 
under this Act before the termination date in section 120, or to 
purchase or fund the purchase of a troubled asset under a commit-
ment entered into before the termination date in section 120, is 
not subject to the provisions of section 120. 
SEC. 107. CONTRACTING PROCEDURES. 
(a) STREAMLINED PROCESS.—For purposes of this Act, the Sec-
retary may waive specific provisions of the Federal Acquisition 
Regulation upon a determination that urgent and compelling cir-
cumstances make compliance with such provisions contrary to the 
public interest. Any such determination, and the justification for 
such determination, shall be submitted to the Committees on Over-
sight and Government Reform and Financial Services of the House 
of Representatives and the Committees on Homeland Security and 
Governmental Affairs and Banking, Housing, and Urban Affairs 
of the Senate within 7 days. 
(b) ADDITIONAL CONTRACTING REQUIREMENTS.—In any solicita-
tion or contract where the Secretary has, pursuant to subsection
H. R. 1424—10 
(a), waived any provision of the Federal Acquisition Regulation 
pertaining to minority contracting, the Secretary shall develop and 
implement standards and procedures to ensure, to the maximum 
extent practicable, the inclusion and utilization of minorities (as 
such term is defined in section 1204(c) of the Financial Institutions 
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 
note)) and women, and minority- and women-owned businesses 
(as such terms are defined in section 21A(r)(4) of the Federal 
Home Loan Bank Act (12 U.S.C. 1441a(r)(4)), in that solicitation 
or contract, including contracts to asset managers, servicers, prop-
erty managers, and other service providers or expert consultants. 
(c) ELIGIBILITY OF FDIC.—Notwithstanding subsections (a) and 
(b), the Corporation— 
(1) shall be eligible for, and shall be considered in, the 
selection of asset managers for residential mortgage loans and 
residential mortgage-backed securities; and 
(2) shall be reimbursed by the Secretary for any services 
provided. 
SEC. 108. CONFLICTS OF INTEREST. 
(a) STANDARDS REQUIRED.—The Secretary shall issue regula-
tions or guidelines necessary to address and manage or to prohibit 
conflicts of interest that may arise in connection with the adminis-
tration and execution of the authorities provided under this Act, 
including— 
(1) conflicts arising in the selection or hiring of contractors 
or advisors, including asset managers; 
(2) the purchase of troubled assets; 
(3) the management of the troubled assets held; 
(4) post-employment restrictions on employees; and 
(5) any other potential conflict of interest, as the Secretary 
deems necessary or appropriate in the public interest. 
(b) TIMING.—Regulations or guidelines required by this section 
shall be issued as soon as practicable after the date of enactment 
of this Act. 
SEC. 109. FORECLOSURE MITIGATION EFFORTS. 
(a) RESIDENTIAL MORTGAGE LOAN SERVICING STANDARDS.—To 
the extent that the Secretary acquires mortgages, mortgage backed 
securities, and other assets secured by residential real estate, 
including multifamily housing, the Secretary shall implement a 
plan that seeks to maximize assistance for homeowners and use 
the authority of the Secretary to encourage the servicers of the 
underlying mortgages, considering net present value to the tax-
payer, to take advantage of the HOPE for Homeowners Program 
under section 257 of the National Housing Act or other available 
programs to minimize foreclosures. In addition, the Secretary may 
use loan guarantees and credit enhancements to facilitate loan 
modifications to prevent avoidable foreclosures. 
(b) COORDINATION.—The Secretary shall coordinate with the 
Corporation, the Board (with respect to any mortgage or mortgage- 
backed securities or pool of securities held, owned, or controlled 
by or on behalf of a Federal reserve bank, as provided in section 
110(a)(1)(C)), the Federal Housing Finance Agency, the Secretary 
of Housing and Urban Development, and other Federal Government 
entities that hold troubled assets to attempt to identify opportuni-
ties for the acquisition of classes of troubled assets that will improve 
the ability of the Secretary to improve the loan modification and
H. R. 1424—11 
restructuring process and, where permissible, to permit bona fide 
tenants who are current on their rent to remain in their homes 
under the terms of the lease. In the case of a mortgage on a 
residential rental property, the plan required under this section 
shall include protecting Federal, State, and local rental subsidies 
and protections, and ensuring any modification takes into account 
the need for operating funds to maintain decent and safe conditions 
at the property. 
(c) CONSENT TO REASONABLE LOAN MODIFICATION REQUESTS.— 
Upon any request arising under existing investment contracts, the 
Secretary shall consent, where appropriate, and considering net 
present value to the taxpayer, to reasonable requests for loss mitiga-
tion measures, including term extensions, rate reductions, principal 
write downs, increases in the proportion of loans within a trust 
or other structure allowed to be modified, or removal of other 
limitation on modifications. 
SEC. 110. ASSISTANCE TO HOMEOWNERS. 
(a) DEFINITIONS.—As used in this section— 
(1) the term ‘‘Federal property manager’’ means— 
(A) the Federal Housing Finance Agency, in its capacity 
as conservator of the Federal National Mortgage Associa-
tion and the Federal Home Loan Mortgage Corporation; 
(B) the Corporation, with respect to residential mort-
gage loans and mortgage-backed securities held by any 
bridge depository institution pursuant to section 11(n) of 
the Federal Deposit Insurance Act; and 
(C) the Board, with respect to any mortgage or mort-
gage-backed securities or pool of securities held, owned, 
or controlled by or on behalf of a Federal reserve bank, 
other than mortgages or securities held, owned, or con-
trolled in connection with open market operations under 
section 14 of the Federal Reserve Act (12 U.S.C. 353), 
or as collateral for an advance or discount that is not 
in default; 
(2) the term ‘‘consumer’’ has the same meaning as in section 
103 of the Truth in Lending Act (15 U.S.C. 1602); 
(3) the term ‘‘insured depository institution’’ has the same 
meaning as in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813); and 
(4) the term ‘‘servicer’’ has the same meaning as in section 
6(i)(2) of the Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2605(i)(2)). 
(b) HOMEOWNER ASSISTANCE BY AGENCIES.— 
(1) IN GENERAL.—To the extent that the Federal property 
manager holds, owns, or controls mortgages, mortgage backed 
securities, and other assets secured by residential real estate, 
including multifamily housing, the Federal property manager 
shall implement a plan that seeks to maximize assistance for 
homeowners and use its authority to encourage the servicers 
of the underlying mortgages, and considering net present value 
to the taxpayer, to take advantage of the HOPE for Home-
owners Program under section 257 of the National Housing 
Act or other available programs to minimize foreclosures. 
(2) MODIFICATIONS.—In the case of a residential mortgage 
loan, modifications made under paragraph (1) may include— 
(A) reduction in interest rates;