graph. Each adjustment shall be made by adding to 
each such amount (as it may have been previously 
adjusted) a percentage thereof equal to the percent-
age increase, during the most recent 12-month or 
4th-quarter period ending before the time of deter-
mining such annual adjustment, in the housing price 
index maintained by the Director of the Federal 
Housing Finance Agency (pursuant to section 1322 
of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4541)). If 
the change in such house price index during the 
most recent 12-month or 4th-quarter period ending 
before the time of determining such annual adjust-
ment is a decrease, then no adjustment shall be 
made for the next year, and the next 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 accumulated and then reduce increases until sub-
sequent increases exceed prior declines.’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Char-
ter Act (12 U.S.C. 1717(b)(2)) is amended by add-
ing after the period at the end the following: ‘‘Such 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
foregoing limitations shall also be increased with re-
spect to properties of a particular size located in any 
area for which the median price for such size resi-
dence exceeds the foregoing limitation for such size 
residence, to the lesser of 150 percent of such fore-
going limitation for such size residence or the 
amount that is equal to the median price in such 
area for such size residence.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by paragraphs (1) and (2) of this subsection shall 
take effect upon the expiration of the date described 
in section 201(a) of the Economic Stimulus Act of 
2008 (Public Law 110–185). 
(b) FREDDIE MAC.— 
(1) GENERAL LIMIT.—Section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) is amended by striking the 6th 
and 7th sentences and inserting the following new 
sentences: ‘‘Such limitations shall not exceed 
$417,000 for a mortgage secured by a single-family 
residence, $533,850 for a mortgage secured by a 2- 
family residence, $645,300 for a mortgage secured 
by a 3-family residence, and $801,950 for a mort-
gage secured by a 4-family residence, except that 
such maximum limitations shall be adjusted effective 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
January 1 of each year beginning after the effective 
date of the Federal Housing Finance Regulatory Re-
form Act of 2008, subject to the limitations in this 
paragraph. Each adjustment shall be made by add-
ing to each such amount (as it may have been pre-
viously adjusted) a percentage thereof equal to the 
percentage increase, during the most recent 12- 
month or fourth-quarter period ending before the 
time of determining such annual adjustment, in the 
housing price index maintained by the Director of 
the Federal Housing Finance Agency (pursuant to 
section 1322 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 
U.S.C. 4541)). If the change in such house price 
index during the most recent 12-month or 4th-quar-
ter period ending before the time of determining 
such annual adjustment is a decrease, then no ad-
justment shall be made for the next year, and the 
next adjustment shall take into account prior de-
clines in the house price index, so that any adjust-
ment shall reflect the net change in the house price 
index since the last adjustment. Declines in the 
house price index shall be accumulated and then re-
duce increases until subsequent increases exceed 
prior declines.’’. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
(2) HIGH-COST AREA LIMIT.—Section 305(a)(2) 
of the Federal Home Loan Mortgage Corporation 
Act is amended by adding after the period at the 
end the following: ‘‘Such foregoing limitations shall 
also be increased with respect to properties of a par-
ticular size located in any area for which the median 
price for such size residence exceeds the foregoing 
limitation for such size residence, to the lesser of 
150 percent of such foregoing limitation for such 
size residence or the amount that is equal to the me-
dian price in such area for such size residence.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by paragraphs (1) and (2) of this subsection shall 
take effect upon the expiration of the date described 
in section 201(a) of the Economic Stimulus Act of 
2008 (Public Law 110–185). 
(c) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the securitization of mortgages by the Federal 
National Mortgage Association and the Federal Home 
Loan Mortgage Corporation plays an important role in 
providing liquidity to the United States housing markets. 
Therefore, the Congress encourages the Federal National 
Mortgage Association and the Federal Home Loan Mort-
gage Corporation to securitize mortgages acquired under 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
the increased conforming loan limits established under this 
Act. 
(d) HOUSING PRICE INDEX.—Part 2 of subtitle A of 
the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is amend-
ed by inserting after section 1321 (as added by section 
123 of this Act) the following new section: 
‘‘SEC. 1322. HOUSING PRICE INDEX. 
‘‘The Director shall establish and maintain a method 
of assessing the national average 1-family house price for 
use for adjusting the conforming loan limitations of the 
enterprises. In establishing such method, the Director 
shall take into consideration the monthly survey of all 
major lenders conducted by the Federal Housing Finance 
Agency to determine the national average 1-family house 
price, the House Price Index maintained by the Office of 
Federal Housing Enterprise Oversight of the Department 
of Housing and Urban Development before the effective 
date of the Federal Housing Finance Regulatory Reform 
Act of 2008, any appropriate house price indexes of the 
Bureau of the Census of the Department of Commerce, 
and any other indexes or measures that the Director con-
siders appropriate.’’. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
SEC. 125. ANNUAL HOUSING REPORT. 
(a) REPEAL.—Section 1324 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4544) is hereby repealed. 
(b) ANNUAL HOUSING REPORT.—The Federal Hous-
ing Enterprises Financial Safety and Soundness Act of 
1992 is amended by inserting after section 1323 the fol-
lowing: 
‘‘SEC. 1324. ANNUAL HOUSING REPORT. 
‘‘(a) IN GENERAL.—After reviewing and analyzing 
the reports submitted under section 309(n) of the Federal 
National Mortgage Association Charter Act and section 
307(f) of the Federal Home Loan Mortgage Corporation 
Act, the Director shall submit a report, not later than Oc-
tober 30 of each year, to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representa-
tives, on the activities of each enterprise. 
‘‘(b) CONTENTS.—The report required under sub-
section (a) shall— 
‘‘(1) discuss— 
‘‘(A) the extent to and manner in which— 
‘‘(i) each enterprise is achieving the 
annual housing goals established under 
subpart B; 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(ii) each enterprise is complying with 
its duty to serve underserved markets, as 
established under section 1335; 
‘‘(iii) each enterprise received credit 
towards achieving each of its goals result-
ing from a transaction or activity pursuant 
to section 1331(b)(2); and 
‘‘(iv) each enterprise is achieving the 
purposes of the enterprise established by 
law; and 
‘‘(B) the actions that each enterprise could 
undertake to promote and expand the purposes 
of the enterprise; 
‘‘(2) aggregate and analyze relevant data on in-
come to assess the compliance of each enterprise 
with the housing goals established under subpart B; 
‘‘(3) aggregate and analyze data on income, 
race, and gender by census tract and other relevant 
classifications, and compare such data with larger 
demographic, housing, and economic trends; 
‘‘(4) identify the extent to which each enter-
prise is involved in mortgage purchases and sec-
ondary market activities involving subprime and 
nontraditional loans; 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(5) compare the characteristics of subprime 
and nontraditional loans both purchased and 
securitized by each enterprise to other loans pur-
chased and securitized by each enterprise; and 
‘‘(6) compare the characteristics of high-cost 
loans purchased and securitized, where such securi-
ties are not held on portfolio to loans purchased and 
securitized, where such securities are either retained 
on portfolio or repurchased by the enterprise, includ-
ing such characteristics as— 
‘‘(A) the purchase price of the property 
that secures the mortgage; 
‘‘(B) the loan-to-value ratio of the mort-
gage, which shall reflect any secondary liens on 
the relevant property; 
‘‘(C) the terms of the mortgage; 
‘‘(D) the creditworthiness of the borrower; 
and 
‘‘(E) any other relevant data, as deter-
mined by the Director. 
‘‘(c) DATA COLLECTION AND REPORTING.— 
‘‘(1) IN GENERAL.—To assist the Director in 
analyzing the matters described in subsection (b), 
the Director shall conduct, on a monthly basis, a 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00079
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
survey of mortgage markets in accordance with this 
subsection. 
‘‘(2) DATA POINTS.—Each monthly survey con-
ducted by the Director under paragraph (1) shall 
collect data on— 
‘‘(A) the characteristics of individual mort-
gages that are eligible for purchase by the en-
terprises and the characteristics of individual 
mortgages that are not eligible for purchase by 
the enterprises including, in both cases, infor-
mation concerning— 
‘‘(i) the price of the house that se-
cures the mortgage; 
‘‘(ii) the loan-to-value ratio of the 
mortgage, which shall reflect any sec-
ondary liens on the relevant property; 
‘‘(iii) the terms of the mortgage; 
‘‘(iv) the creditworthiness of the bor-
rower or borrowers; and 
‘‘(v) whether the mortgage, in the 
case of a conforming mortgage, was pur-
chased by an enterprise; 
‘‘(B) the characteristics of individual 
subprime and nontraditional mortgages that are 
eligible for purchase by the enterprises and the 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00080
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
characteristics of borrowers under such mort-
gages, including the creditworthiness of such 
borrowers and determination whether such bor-
rowers would qualify for prime lending; and 
‘‘(C) such other matters as the Director 
determines to be appropriate. 
‘‘(3) PUBLIC
AVAILABILITY.—The Director 
shall make any data collected by the Director in con-
nection with the conduct of a monthly survey avail-
able to the public in a timely manner, provided that 
the Director may modify the data released to the 
public to ensure that the data— 
‘‘(A) is not released in an identifiable 
form; and 
‘‘(B) is not otherwise obtainable from 
other publicly available data sets. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘identifiable form’ means any rep-
resentation of information that permits the identity 
of a borrower to which the information relates to be 
reasonably inferred by either direct or indirect 
means.’’. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00081
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
SEC. 126. PUBLIC USE DATABASE. 
Section 1323 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (42 U.S.C. 
4543) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(a) IN GENERAL.—The 
Secretary’’ and inserting the following: 
‘‘(a) AVAILABILITY.— 
‘‘(1) IN GENERAL.—The Director’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) CENSUS TRACT LEVEL REPORTING.—Such 
data shall include the data elements required to be 
reported under the Home Mortgage Disclosure Act 
of 1975, at the census tract level.’’; 
(2) in subsection (b)(2), by inserting before the 
period at the end the following: ‘‘or with subsection 
(a)(2)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(d) TIMING.—Data submitted under this section by 
an enterprise in connection with a provision referred to 
in subsection (a) shall be made publicly available in ac-
cordance with this section not later than September 30 
of the year following the year to which the data relates.’’. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00082
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
SEC. 127. REPORTING OF MORTGAGE DATA. 
Section 1326 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 U.S.C. 
4546) is amended— 
(1) in subsection (a), by striking ‘‘The Direc-
tor’’ and inserting ‘‘Subject to subsection (d), the 
Director’’; and 
(2) by adding at the end the following: 
‘‘(d) MORTGAGE INFORMATION.—Subject to privacy 
considerations, as described in section 304(j) of the Home 
Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(j)), the 
Director shall, by regulation or order, provide that certain 
information relating to single family mortgage data of the 
enterprises shall be disclosed to the public, in order to 
make available to the public— 
‘‘(1) the same data from the enterprises that is 
required of insured depository institutions under the 
Home Mortgage Disclosure Act of 1975; and 
‘‘(2) information collected by the Director 
under section 1324(b)(6).’’. 
SEC. 128. REVISION OF HOUSING GOALS. 
(a) REPEAL.—Sections 1331 through 1334 of the 
Federal Housing Enterprises Financial Safety and Sound-
ness Act of 1992 (12 U.S.C. 4561 through 4564) are here-
by repealed. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00083
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
(b) HOUSING GOAL.—The Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 is 
amended by inserting before section 1335 the following: 
‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall, by regula-
tion, establish effective for the first calendar year that be-
gins after the date of enactment of the Federal Housing 
Finance Regulatory Reform Act of 2008, and each year 
thereafter, annual housing goals, as described under this 
subpart, with respect to the mortgage purchases by the 
enterprises. 
‘‘(b) SPECIAL COUNTING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—The Director shall deter-
mine whether an enterprise shall receive full, partial, 
or no credit for a transaction toward achievement of 
any of the housing goals established pursuant to this 
section or sections 1332 through 1334. 
‘‘(2) CONSIDERATIONS.—In making any deter-
mination under paragraph (1), the Director shall 
consider whether a transaction or activity of an en-
terprise is substantially equivalent to a mortgage 
purchase and either (A) creates a new market, or 
(B) adds liquidity to an existing market, provided 
however that the terms and conditions of such mort-
gage purchase is neither determined to be unaccept-
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
able, nor contrary to good lending practices, and 
otherwise promotes sustainable homeownership and 
further, that such mortgage purchase actually fulfills 
the purposes of the enterprise and is in accordance 
with the chartering Act of such enterprise. 
‘‘(c) ELIMINATING INTEREST RATE DISPARITIES.— 
‘‘(1) IN GENERAL.—In establishing and imple-
menting the housing goals under this subpart, the 
Director shall require the enterprises to disclose ap-
propriate information to allow the Director to assess 
if there are any disparities in interest rates charged 
on mortgages to borrowers who are minorities, as 
compared with borrowers of similar creditworthiness 
who are not minorities, as evidenced in reports pur-
suant to the Home Mortgage Disclosure Act of 
1975. 
‘‘(2) REPORT TO CONGRESS ON DISPARITIES.— 
Upon a finding by the Director that a pattern of dis-
parities in interest rates exists pursuant to the infor-
mation provided by an enterprise under paragraph 
(1), the Director shall— 
‘‘(A) forward to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
House of Representatives a report detailing the 
disparities; and 
‘‘(B) forward the report prepared under 
subparagraph (A) to any other appropriate reg-
ulatory or enforcement agency. 
‘‘(3) IDENTITY
OF
INDIVIDUALS
NOT
DIS-
CLOSED.—In carrying out this subsection, the Direc-
tor shall ensure that no personally identifiable finan-
cial information that would enable an individual bor-
rower to be reasonably identified shall be made pub-
lic. 
‘‘(d) TIMING.—The Director shall establish an an-
nual deadline for the establishment of housing goals de-
scribed in subsection (a), taking into consideration the 
need for the enterprises to reasonably and sufficiently plan 
their operations and activities in advance, including oper-
ations and activities necessary to meet such goals. 
‘‘SEC. 1331A. DISCRETIONARY ADJUSTMENT OF HOUSING 
GOALS. 
‘‘(a) AUTHORITY.— 
‘‘(1) REVIEW.—The Director shall review the 
appropriateness of each goal established pursuant to 
this subpart at least once during each year to assure 
that given current market conditions that each such 
goal is feasible. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(2) PETITION
TO
REDUCE.—An enterprise 
may petition the Director in writing at any time 
during a year to reduce the level of any goal for 
such year established pursuant to this subpart. 
‘‘(b) STANDARD
FOR REDUCTION.—The Director 
may reduce the level for a goal pursuant to such a petition 
only if— 
‘‘(1) market and economic conditions or the fi-
nancial condition of the enterprise require such ac-
tion; or 
‘‘(2) efforts to meet the goal would result in the 
constraint of liquidity, over-investment in certain 
market segments, or other consequences contrary to 
the intent of this subpart, section 301(3) of the Fed-
eral National Mortgage Association Charter Act (12 
U.S.C. 1716(3)), or section 301(b)(3) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1451 note), as applicable. 
‘‘(c) DETERMINATION.— 
‘‘(1) 30-DAY PERIOD.—If an enterprise submits 
a petition for reduction to the Director under sub-
section (a)(2), the Director shall make a determina-
tion regarding any proposed reduction within 30 
days of receipt of the petition. 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(2) EXTENSION.—The Director may extend 
the period described in paragraph (1) for a single 
additional 15-day period, but only if the Director re-
quests additional information from the enterprise. 
‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. 
‘‘(a) ESTABLISHMENT OF GOALS.— 
‘‘(1) IN GENERAL.—The Director shall establish 
annual goals for the purchase by each enterprise of 
conventional, conforming, single-family, owner-occu-
pied, purchase money mortgages financing housing 
for each of the following: 
‘‘(A) Low-income families. 
‘‘(B) Families that reside in low-income 
areas. 
‘‘(C) Very low-income families. 
‘‘(2) GOALS AS PERCENTAGE OF TOTAL PUR-
CHASE MONEY MORTGAGE PURCHASES.—The goals 
established under paragraph (1) shall be established 
as a percentage of the total number of single-family 
dwelling units financed by single-family purchase 
money mortgage purchases of the enterprise. 
‘‘(b) DETERMINATION OF COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Director shall deter-
mine, for each year that the housing goals under 
this section are in effect pursuant to section 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
1331(a), whether each enterprise has complied with 
the single-family housing goals established under 
this section for such year. 
‘‘(2) COMPLIANCE REQUIREMENTS.—An enter-
prise shall be considered to be in compliance with a 
goal described under subsection (a) for a year, only 
if, for each of the types of families described in sub-
section (a), the percentage of the number of conven-
tional, conforming, single-family, owner-occupied, 
purchase money mortgages purchased by the enter-
prise in such year that serve such families, meets or 
exceeds the target established under subsection (c) 
for the year for such type of family. 
‘‘(c) ANNUAL TARGETS.— 
‘‘(1) IN GENERAL.—The Director shall establish 
annual targets for each goal described in subsection 
(a). 
‘‘(2) CONSIDERATIONS.—In establishing annual 
targets under paragraph (1), the Director shall con-
sider— 
‘‘(A) national housing needs; 
‘‘(B) economic, housing, and demographic 
conditions; 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(C) the performance and effort of the en-
terprises toward achieving the housing goals 
under this section in previous years; 
‘‘(D) the ability of the enterprise to lead 
the industry in making mortgage credit avail-
able; 
‘‘(E) recent information submitted in com-
pliance with the Home Mortgage Disclosure Act 
of 1975 and such other reliable mortgage data 
as may be available; 
‘‘(F) the size of the purchase money con-
ventional mortgage market serving each of the 
types of families described in subsection (a), 
relative to the size of the overall purchase 
money mortgage market; and 
‘‘(G) the need to maintain the sound finan-
cial condition of the enterprises. 
‘‘(3) HIGH-COST
LOANS
AND
INAPPROPRIATE 
LENDING PRACTICES.—In establishing annual tar-
gets under paragraph (1), the Director shall not 
consider segments of the market determined to be 
unacceptable or contrary to good lending practices 
pursuant to section 1331(b)(2). 
‘‘(d) NOTICE OF DETERMINATION AND ENTERPRISE 
COMMENT.— 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(1) NOTICE.—Within 30 days of making a de-
termination under subsection (b) regarding compli-
ance of an enterprise for a year with the housing 
goals established under this section and before any 
public disclosure thereof, the Director shall provide 
notice of the determination to the enterprise, which 
shall include an analysis and comparison, by the Di-
rector, of the performance of the enterprise for the 
year and the targets for the year under subsection 
(c). 
‘‘(2) COMMENT
PERIOD.—The Director shall 
provide each enterprise and the public an oppor-
tunity to comment on the determination during the 
30-day period beginning upon receipt by the enter-
prise of the notice. 
‘‘(e) USE OF BORROWER INCOME.—In monitoring 
the performance of each enterprise pursuant to the hous-
ing goals under this section and evaluating such perform-
ance (for purposes of section 1336), the Director shall 
consider a mortgagor’s income to be the income of the 
mortgagor at the time of origination of the mortgage. 
‘‘(f) CONSIDERATION OF PROPERTIES WITH RENTAL 
UNITS.—Mortgages financing 1-to-4 unit owner-occupied 
properties shall count toward the achievement of the sin-
gle-family housing goal under this section, if such prop-
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
erties otherwise meet the requirements under this section 
notwithstanding the use of 1 or more units for rental pur-
poses. 
‘‘SEC. 1333. SINGLE-FAMILY HOUSING REFINANCE GOALS. 
‘‘(a) PREPAYMENT OF EXISTING LOANS.— 
‘‘(1) IN GENERAL.—The Director shall establish 
annual goals for the purchase by each enterprise of 
mortgages on conventional, conforming, single-fam-
ily, owner-occupied housing given to pay off or pre-
pay an existing loan served by the same property for 
each of the following: 
‘‘(A) Low-income families. 
‘‘(B) Families that reside in low-income 
areas. 
‘‘(C) Very low-income families. 
‘‘(2) GOALS AS PERCENTAGE OF TOTAL REFI-
NANCING
MORTGAGE
PURCHASES.—The goals de-
scribed under paragraph (1) shall be established as 
a percentage of the total number of single-family 
dwelling units refinanced by mortgage purchases of 
each enterprise. 
‘‘(b) DETERMINATION OF COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Director shall deter-
mine, for each year that the housing goals under 
this section are in effect pursuant to section 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
1331(a), whether each enterprise has complied with 
the single-family housing refinance goals established 
under this section for such year. 
‘‘(2) COMPLIANCE.—An enterprise shall be con-
sidered to be in compliance with the goals of this 
section for a year, only if, for each of the types of 
families described in subsection (a), the percentage 
of the number of conventional, conforming, single- 
family, owner-occupied refinancing mortgages pur-
chased by each enterprise in such year that serve 
such families, meets or exceeds the target for the 
year for such type of family that is established under 
subsection (c). 
‘‘(c) ANNUAL TARGETS.— 
‘‘(1) IN GENERAL.—The Director shall establish 
annual targets for each goal described in subsection 
(a). 
‘‘(2) CONSIDERATIONS.—In establishing annual 
targets under paragraph (1), the Director shall con-
sider— 
‘‘(A) national housing needs; 
‘‘(B) economic, housing, and demographic 
conditions; 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(C) the performance and effort of the en-
terprises toward achieving the housing goals 
under this section in previous years; 
‘‘(D) the ability of the enterprise to lead 
the industry in making mortgage credit avail-
able; 
‘‘(E) recent information submitted in com-
pliance with the Home Mortgage Disclosure Act 
of 1975 and such other reliable mortgage data 
as may be available; 
‘‘(F) the size of the purchase money con-
ventional mortgage market serving each of the 
types of families described in subsection (a), 
relative to the size of the overall purchase 
money mortgage market; and 
‘‘(G) the need to maintain the sound finan-
cial condition of the enterprises. 
‘‘(d) NOTICE OF DETERMINATION AND ENTERPRISE 
COMMENT.— 
‘‘(1) NOTICE.—Within 30 days of making a de-
termination under subsection (b) regarding compli-
ance of an enterprise for a year with the housing 
goals established under this section and before any 
public disclosure thereof, the Director shall provide 
notice of the determination to the enterprise, which 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
shall include an analysis and comparison, by the Di-
rector, of the performance of the enterprise for the 
year and the targets for the year under subsection 
(c). 
‘‘(2) COMMENT
PERIOD.—The Director shall 
provide each enterprise and the public an oppor-
tunity to comment on the determination during the 
30-day period beginning upon receipt by the enter-
prise of the notice. 
‘‘(e) USE OF BORROWER INCOME.—In monitoring 
the performance of each enterprise pursuant to the hous-
ing goals under this section and evaluating such perform-
ance (for purposes of section 1336), the Director shall 
consider a mortgagor’s income to be the income of the 
mortgagor at the time of origination of the mortgage. 
‘‘SEC. 1334. MULTIFAMILY SPECIAL AFFORDABLE HOUSING 
GOAL. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Director shall estab-
lish, by regulation, by unit, dollar volume, or per-
centage of multifamily activity, as determined by the 
Director, an annual goal for the purchase by each 
enterprise of— 
‘‘(A) mortgages that finance dwelling units 
affordable to very low-income families; and 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(B) mortgages that finance dwelling units 
assisted by the low-income housing tax credit 
under section 42 of the Internal Revenue Code 
of 1986. 
‘‘(2) ADDITIONAL REQUIREMENTS FOR SMALL-
ER PROJECTS.—The Director shall establish, within 
the housing goal established under this section, addi-
tional requirements for the purchase by each enter-
prise of mortgages described in paragraph (1) for 
multifamily housing projects of a smaller or limited 
size, which may be based on the number of dwelling 
units in the project or the amount of the mortgage, 
or both, and shall include multifamily housing 
projects of 5 to 50 units (as adjusted by the Direc-
tor), or with mortgages of up to $5,000,000 (as ad-
justed by the Director). 
‘‘(3) FACTORS.—The Director shall establish 
the goal and additional requirements under this sec-
tion taking into consideration— 
‘‘(A) national multifamily mortgage credit 
needs; 
‘‘(B) the performance and effort of the en-
terprise in making mortgage credit available for 
multifamily housing in previous years; 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00096
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
‘‘(C) the size of the multifamily mortgage 
market, including the size of the small multi-
family mortgage market; 
‘‘(D) the most recent information available 
for the Residential Survey published by the 
Census Bureau, and such other reliable data as 
may be available regarding multifamily mort-
gages; 
‘‘(E) the ability of the enterprise to lead 
the industry in expanding mortgage credit 
availability at favorable terms, especially for un-
derserved markets, such as for— 
‘‘(i) small multifamily projects; 
‘‘(ii) multifamily properties in need of 
preservation and rehabilitation; and 
‘‘(iii) multifamily properties located in 
rural areas; and 
‘‘(F) the need to maintain the sound finan-
cial condition of the enterprise. 
‘‘(b) UNITS FINANCED BY HOUSING FINANCE AGEN-
CY BONDS.—The Director may give credit toward the 
achievement of the multifamily special affordable housing 
goal under this section (for purposes of section 1336) to 
dwelling units in multifamily housing projects that other-
wise qualify under such goal and that are financed by tax- 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00097
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
exempt or taxable bonds issued by a State or local housing 
finance agency, but only if such bonds— 
‘‘(1) are secured by a guarantee of the enter-
prise; or 
‘‘(2) are not investment grade and are pur-
chased by the enterprise. 
‘‘(c) USE OF TENANT RENT LEVEL.— 
‘‘(1) IN GENERAL.—The Director shall monitor 
the performance of each enterprise in meeting the 
goal established under this section and shall evaluate 
such performance (for purposes of section 1336) 
based on whether the rent levels are affordable to 
low-income and very low-income families. 
‘‘(2) RENT LEVEL.—A rent level shall be con-
sidered to be affordable for purposes of this sub-
section for an income category referred to in this 
subsection if it does not exceed 30 percent of the 
maximum income level of such income category, with 
appropriate adjustments for unit size as measured 
by the number of bedrooms. 
‘‘(d) DETERMINATION OF COMPLIANCE.— 
‘‘(1) IN
GENERAL.—The Director shall, for 
each year that the housing goal under this section 
is in effect pursuant to section 1331(a), determine 
whether each enterprise has complied with such goal 
VerDate Aug 31 2005 
23:00 Jul 17, 2008
Jkt 069200
PO 00000
Frm 00098
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
106 
1451 note) to undertake activities relating to mort-
gages on housing for very low-, low-, and moderate- 
income families involving a reasonable economic re-
turn that may be less than the return earned on 
other activities, each enterprise shall have the duty 
to increase the liquidity of mortgage investments 
and improve the distribution of investment capital 
available for mortgage financing for underserved 
markets by purchasing or securitizing mortgage in-
vestments. 
‘‘(2) UNDERSERVED
MARKETS.—To meet its 
duty under paragraph (1), each enterprise shall com-
ply with the following requirements with respect to 
the following underserved markets: 
‘‘(A) MANUFACTURED HOUSING.—The en-
terprise shall lead the industry in developing 
loan products and flexible underwriting guide-
lines to facilitate a secondary market for mort-
gages on manufactured homes for very low-, 
low-, and moderate-income families. 
‘‘(B) AFFORDABLE
HOUSING
PRESERVA-
TION.—The enterprise shall lead the industry in 
developing loan products and flexible under-
writing guidelines to facilitate a secondary mar-
ket to preserve housing affordable to very 
VerDate Aug 31 2005 
04:10 Jul 18, 2008
Jkt 069200
PO 00000
Frm 00106
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS
107 
low-, low-, and moderate-income families, in-
cluding housing projects subsidized under— 
‘‘(i) the project-based and tenant- 
based rental assistance programs under 
section 8 of the United States Housing Act 
of 1937; 
‘‘(ii) the program under section 236 
of the National Housing Act; 
‘‘(iii) the below-market interest rate 
mortgage program under section 221(d)(4) 
of the National Housing Act; 
‘‘(iv) the supportive housing for the 
elderly program under section 202 of the 
Housing Act of 1959; 
‘‘(v) the supportive housing program 
for persons with disabilities under section 
811 of the Cranston-Gonzalez National Af-
fordable Housing Act; 
‘‘(vi) the programs under title IV of 
the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11361 et seq.), but only 
permanent supportive housing projects 
subsidized under such programs; and 
VerDate Aug 31 2005 
04:10 Jul 18, 2008
Jkt 069200
PO 00000
Frm 00107
Fmt 6652
Sfmt 6201
E:\BILLS\H6521.IH
H6521
rwilkins on PROD1PC63 with BILLS