amounts remaining in the Fund shall be deposited 
as provided in section 156(e). 
‘‘SEC. 153. CONSIDERATIONS. 
‘‘In exercising the authorities granted in this subtitle, 
the Secretary shall take into consideration— 
‘‘(1) providing mechanisms for families to keep 
their homes and to stabilize communities; 
‘‘(2) ensuring stability and preventing disrup-
tion to financial market in order to limit the impact 
of the financial crisis on the economy and protect 
American jobs, savings, and retirement security; 
‘‘(3) protecting the interests of taxpayers by 
maximizing overall returns and minimizing the im-
pact on the national debt; 
‘‘(4) determining the most efficient use of funds 
under this subtitle; 
‘‘(5) ensuring that all financial institutions are 
eligible to participate in the program, without dis-
crimination based on size, geography, form of orga-
nization, or the size, type, and number of assets eli-
gible for purchase under this subtitle; 
‘‘(6) paying due attention to financial institu-
tions, including those serving low- and moderate-in-
come populations and other underserved commu-
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nities, 
and 
that 
have 
assets 
less 
than 
$1,000,000,000; 
‘‘(7) stabilizing United States public instrumen-
talities, such as counties and cities, which may have 
suffered significant increased costs or losses in the 
current market turmoil; 
‘‘(8) protecting the retirement security of Amer-
icans by purchasing home mortgages by or on behalf 
of an eligible retirement plan described in clause 
(iii), (iv), (v), or (vi) of section 402(c)(8)(B) of the 
Internal Revenue Code of 1986, except that such au-
thority shall not extend to any compensation ar-
rangements subject to section 409A of such Code; 
and 
‘‘(9) purchasing home mortgage loans, residen-
tial other real estate owned by financial institutions 
and mortgages on multifamily properties. 
‘‘SEC. 154. FFRC OVERSIGHT BOARD. 
‘‘(a) ESTABLISHMENT.—There is established the 
Family Foreclosure Rescue Corporation Oversight Board, 
which shall be responsible for— 
‘‘(1) reviewing the exercise of authority under a 
program developed in accordance with this subtitle, 
including 
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‘‘(A) policies implemented by the Secretary 
and the Family Foreclosure Rescue Corporation 
created under sections 151 and 152, including 
the appointment of financial agents, the des-
ignation of asset classes to be purchased, and 
plans for the structure of vehicles used to pur-
chase home mortgages; and 
‘‘(B) the effect of such actions in assisting 
American families in preserving home owner-
ship, stabilizing financial markets, and pro-
tecting taxpayers; 
‘‘(2) making recommendations, as appropriate, 
to the Secretary regarding use of the authority 
under this subtitle; and 
‘‘(3) reporting any suspected fraud, misrepre-
sentation, or malfeasance to the Special Inspector 
General for the FFRC Program or the Attorney 
General of the United States, consistent with section 
535(b) of title 28, United States Code. 
‘‘(b) MEMBERSHIP.—The Oversight Board shall be 
comprised of— 
‘‘(1) the Chairman of the Board of Governors 
of the Federal Reserve System; 
‘‘(2) the Secretary; 
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‘‘(3) the Director of the Federal Home Finance 
Agency; 
‘‘(4) the Chairman of the Securities Exchange 
Commission; 
‘‘(5) the Chairman of the Corporation; and 
‘‘(6) the Secretary of Housing and Urban De-
velopment. 
‘‘(c) CHAIRPERSON.—The chairperson of the Over-
sight Board shall be the Chairman of the Corporation. 
‘‘(d) MEETINGS.—The Oversight Board shall meet 2 
weeks after the first exercise of the purchase authority of 
the Secretary under this subtitle, and at least monthly 
thereafter. 
‘‘(e) ADDITIONAL AUTHORITIES.—In addition to re-
sponsibilities described in subsection (a), the Oversight 
Board shall have the authority to ensure that the policies 
implemented the Secretary are— 
‘‘(1) in accordance with the purposes of this 
subtitle; 
‘‘(2) in the economic interests of the United 
States; and 
‘‘(3) consistent with protecting taxpayers, in ac-
cordance with section 161(a). 
‘‘(f) CREDIT REVIEW COMMITTEE.—The Oversight 
Board may appoint a credit review committee for the pur-
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pose of evaluating the exercise of the purchase authority 
provided under this subtitle and the assets acquired 
through the exercise of such authority, as the Oversight 
Board determines appropriate. 
‘‘(g) REPORTS.—The Oversight Board shall report to 
the appropriate committees of Congress and the Congres-
sional Oversight Panel established under section 125, 
semiannually, on the matters described under subsection 
(a)(1). 
‘‘(h) TERMINATION.—The Oversight Board, and the 
authority of the Oversight Board under this section, shall 
terminate on the expiration of the 15-day period beginning 
upon the later of— 
‘‘(1) the date that the last home mortgage loan 
acquired by the Secretary under section 151 has 
been sold or transferred out of the ownership or con-
trol of the Federal Government; or 
‘‘(2) the date of expiration of the last insurance 
contract issued under section 152. 
‘‘SEC. 155. REPORTS. 
‘‘(a) IN GENERAL.—Before the expiration of the 60- 
day period beginning on the date of the first exercise of 
the authority granted in section 151(a), or of the first ex-
ercise of the authority granted in section 152, whichever 
occurs first, and every 30-day period thereafter, the Sec-
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retary shall report to the appropriate committees of Con-
gress, with respect to each such period— 
‘‘(1) an overview of actions taken by the Sec-
retary, including the factors to be taken in consider-
ation in section 153; 
‘‘(2) the actual obligation and expenditure of 
the funds provided for administrative expenses by 
section 164 during such period and the expected ex-
penditure of such funds in the subsequent period; 
and 
‘‘(3) a detailed financial statement with respect 
to the exercise of authority under this subtitle, in-
cluding— 
‘‘(A) all agreements made or renewed; 
‘‘(B) all insurance contracts entered into 
pursuant to section 152; 
‘‘(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 com-
pensation for financial agents; 
‘‘(G) the valuation or pricing method used 
for each transaction; and 
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‘‘(2) TIMING.—The report required by this sub-
section shall be submitted not later than 7 days 
after the date on which commitments to purchase 
home mortgages under the authorities provided in 
this 
subtitle 
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) SHARING
OF INFORMATION.—Any report re-
quired under this section shall also be submitted to the 
Congressional Oversight Panel established under section 
125. 
‘‘(d) SUNSET.—The reporting requirements under 
this section shall terminate on the later of— 
‘‘(1) the date that the last home mortgage ac-
quired by the Secretary under section101 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 152. 
‘‘SEC. 156. RIGHTS; MANAGEMENT; SALE OF HOME MORT-
GAGES; REVENUES AND SALE PROCEEDS. 
‘‘(a) EXERCISE OF RIGHTS.—The Secretary may, at 
any time, exercise any rights received in connection with 
home mortgages purchased under this subtitle 
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‘‘(b) MANAGEMENT OF HOME MORTGAGES.— 
‘‘(1) IN GENERAL.—The Secretary shall have 
authority to manage home mortgages purchased 
under this subtitle, including revenues and portfolio 
risks therefrom. 
‘‘(2) In managing home mortgages purchased 
under the authorities of this subtitle, the Secretary 
shall implement a systematic plan to maximize loan 
modifications in order to minimize foreclosures, in-
cluding by reducing interest rates, writing down 
principal sums owed, providing guarantees, and 
other measures. 
‘‘(3) With respect to loans not eligible for modi-
fication, and with respect to loans that enter into de-
fault, the Secretary shall implement a plan to mini-
mize foreclosures, through short sales or by other 
means, and to reduce negative impacts on commu-
nities from foreclosures, short sales or other disposi-
tions, consistent with the purposes of this subtitle. 
‘‘(4) With respect to loans modified by the Sec-
retary, the Secretary shall implement a program of 
shared equity mortgages such that upon any sale or 
disposition within five years from the date of loan 
modification any increases in the equity of any home 
securing a loan modified by the Secretary are shared 
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between the home owner and the Family Foreclosure 
Rescue Corporation, based upon a schedule to be 
issued by the Secretary, such schedule to provide for 
an increasingly smaller share of such equity increase 
to be payable to the Secretary over that five-year pe-
riod. 
‘‘(c) SALE OF HOME MORTGAGES.—The Secretary 
may, at any time, upon terms and conditions and at a 
price determined by the Secretary, guarantee, sell, or enter 
into securities loans, repurchase transactions, or other fi-
nancial transactions in regard to, any home mortgages 
purchased under this subtitle. 
‘‘(d) PROCEEDS
OF SALES
AND OTHER REVE-
NUES.—Revenues of, and proceeds from the sale of home 
mortgages purchased under this subtitle, or from any 
shared equity home mortgage program established by the 
Secretary under this subtitle, or from the sale, exercise, 
or surrender of warrants or senior debt instruments ac-
quired under section 161, and any amounts remaining in 
the Fund upon its termination, shall be paid into the gen-
eral fund of the Treasury for reduction of the public debt 
except as provided in section (e). 
‘‘(e) TRANSFER OF A PERCENTAGE OF PROFITS.— 
‘‘(1) DEPOSITS.—Not less than 20 percent of 
any revenues of, and proceeds from the sale of home 
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mortgages purchased under this subtitle, or from 
any shared equity home mortgage program estab-
lished by the Secretary under this subtitle, or from 
the sale, exercise, or surrender of warrants or senior 
debt instruments acquired under section 161, and 
not less than 20 percent of any amounts remaining 
in the Fund upon its termination, shall be deposited 
as provided in paragraph (2). 
‘‘(2) USE OF DEPOSITS.—Of the amount re-
ferred to in paragraph (1)— 
‘‘(A) 65 percent shall be deposited into the 
Housing Trust Fund established under section 
1338 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 
U.S.C. 4568); 
‘‘(B) 35 percent shall be deposited into the 
Capital Magnet Fund established under section 
1339 of that Act (12 U.S.C. 4569). 
‘‘(3) REMAINDER DEPOSITED IN THE TREAS-
URY.—All amounts remaining after payments under 
paragraph (1) shall be paid into the General Fund 
of the Treasury for reduction of the public debt. 
‘‘(f) APPLICATION
OF SUNSET
TO HOME MORT-
GAGES.—The authority of the Secretary to hold, guar-
antee, sell or dispose of any home mortgage purchased 
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under this subtitle before the termination date in section 
165, or to purchase or fund the purchase of a home mort-
gage under a commitment entered into before the termi-
nation date in section 165, is not subject to the provisions 
of section 165. 
‘‘SEC. 157. CONTRACTING PROCEDURES. 
‘‘(a) STREAMLINED PROCESS.—For purposes of this 
subtitle, the Secretary may waive specific provisions of the 
Federal Acquisition Regulation upon a determination that 
urgent and compelling circumstances make compliance 
with such provisions contrary to the public interest. Any 
such determination, and the justification for such deter-
mination, 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 Bank-
ing, Housing, and Urban Affairs of the Senate within 7 
days. 
‘‘(b) ADDITIONAL CONTRACTING REQUIREMENTS.— 
In any solicitation or contract where the Secretary has, 
pursuant to subsection (a), waived any provision of the 
Federal Acquisition Regulation pertaining to minority con-
tracting, the Secretary shall develop and implement stand-
ards and procedures to ensure, to the maximum extent 
practicable, the inclusion and utilization of minorities (as 
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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, property 
managers, and other service providers or expert consult-
ants. 
‘‘(c) ELIGIBILITY
OF
FDIC, BOARD, FEDERAL 
HOUSING ADMINISTRATION, FEDERAL NATIONAL MORT-
GAGE ASSOCIATION
AND
THE FEDERAL HOME LOAN 
MORTGAGE CORPORATION.—Notwithstanding subsections 
(a) and (b), the Corporation, Board, Federal Housing Ad-
ministration, Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation— 
‘‘(1) shall be eligible for, and shall be consid-
ered in, the selection of financial agents to perform 
any duty assigned to the Secretary by this subtitle; 
‘‘(2) in performing such duties shall report to 
the Chairman of the Family Foreclosure Rescue 
Corporation; and 
‘‘(3) shall be reimbursed by the Secretary for 
any services provided. 
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‘‘SEC. 158. CONFLICTS OF INTEREST. 
‘‘(a) STANDARDS REQUIRED.—The Secretary shall 
issue regulations or guidelines necessary to address and 
manage or to prohibit conflicts of interest that may arise 
in connection with the administration and execution of the 
authorities provided under this subtitle, including conflicts 
arising in— 
‘‘(1) the selection or hiring of contractors or ad-
visors, including asset managers; 
‘‘(2) the purchase of home mortgages; 
‘‘(3) the management of the 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 subtitle. 
‘‘SEC. 159. FORECLOSURE MITIGATION EFFORTS. 
‘‘(a) RESIDENTIAL MORTGAGE LOAN SERVICING 
STANDARDS.—To the extent that the Secretary acquires 
home mortgages, including mortgages securing loans for 
multifamily housing, the Secretary shall implement a plan 
within 60 days of enactment of this subtitle that seeks 
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to maximize loan restructuring on a sustainable basis and 
to minimize foreclosures. 
‘‘(b) LOAN GUARANTEES.— 
‘‘(1) IN
GENERAL.—The Secretary may use 
loan guarantees and other credit enhancements to 
facilitate loan modifications, to prevent avoidable 
foreclosures, and to provide necessary liquidity to 
home mortgage markets. 
‘‘(2) Such loan guarantee authority may be 
used by the Secretary with respect to any and all 
classes of home mortgage loans the Secretary has 
acquired and wishes to sell. 
‘‘(3) Such loan guarantee authority may be 
used by the Secretary with respect to other home 
mortgage loans not acquired by the Secretary pro-
vided that the holder, servicer, or trustee with re-
spect to such home mortgage loan to be guaranteed 
by the Secretary shall through modification, refi-
nancing, or otherwise write down the principal 
amount owed and reduce the interest rate charged 
such that the new loan amount does not exceed 90 
percent of the home’s currently and independently 
appraised value and loan payments to be made by 
the borrower do not exceed 38 percent of the bor-
rower’s currently documented and verified income. 
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‘‘(4) The percentage requirements with respect 
to the result of loan modifications specified in the 
immediately preceding sentence of paragraph (3) 
may be altered upon request of the Secretary by 
unanimous vote of the Oversight Board and upon 60 
days notice to the appropriate Committees of Con-
gress. 
‘‘(c) COORDINATION.—The Secretary shall coordinate 
with the Corporation, the Board, the Federal Housing Fi-
nance Agency, the Secretary of Housing and Urban Devel-
opment, and other Federal Government entities that hold 
assets to attempt to identify opportunities for the acquisi-
tion of classes of home mortgages that will improve the 
ability of the Secretary to improve the loan modification 
and restructuring process. 
‘‘(d) TENANTS.—The Secretary shall, where permis-
sible, 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 pro-
tecting Federal, State, and local rental subsidies and pro-
tections, and ensuring any modification takes into account 
the need for operating funds to maintain decent and safe 
conditions at the property. 
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‘‘(e) CONSENT TO REASONABLE LOAN MODIFICA-
TION REQUESTS.—The Secretary shall consent, where ap-
propriate, and considering net present value to the tax-
payer, to reasonable requests for loss mitigation 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 limitations on modifications. 
‘‘SEC. 160. 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 Association and the Federal 
Home Loan Mortgage Corporation; 
‘‘(B) the Corporation, with respect to resi-
dential mortgage loans and mortgage-backed se-
curities held by any bridge depository institu-
tion pursuant to section 11(n) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(n)); 
and 
‘‘(C) the Board, with respect to any mort-
gage or mortgage-backed securities or pool of 
securities held, owned, or controlled by or on 
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