323 
under paragraph (1) in an election to fill 
member directorships. 
‘‘(B) CRITERIA.—Nominees shall meet all 
applicable requirements prescribed in this sec-
tion. 
‘‘(C) NOMINATION
AND
ELECTION
PROCE-
DURES.—Procedures for nomination and election 
of independent directors shall be prescribed by 
the bylaws of each Federal Home Loan Bank, in 
a manner consistent with the rules and regula-
tions of the Agency.’’; 
(4) in subsection (c)— 
(A) by striking ‘‘elective’’ each place that 
term appears and inserting ‘‘member’’, except— 
(i) in the second sentence, the second 
place that term appears; and 
(ii) each place that term appears in 
the fifth sentence; and 
(B) in the second sentence— 
(i) by inserting ‘‘(A) except as pro-
vided in clause (B) of this sentence,’’ before 
‘‘if at any time’’; and 
(ii) by inserting before the period at 
the end the following: ‘‘, and (B) clause (A) 
of this sentence shall not apply to the direc-
324 
torships of any Federal Home Loan Bank 
resulting from the merger of any 2 or more 
such Banks’’; 
(5) in subsection (d)— 
(A) in the first sentence— 
(i) by striking ‘‘, whether elected or ap-
pointed,’’; and 
(ii) by striking ‘‘3 years’’ and insert-
ing ‘‘4 years’’; 
(B) in the second sentence— 
(i) by striking ‘‘Federal Home Loan 
Bank System Modernization Act of 1999’’ 
and inserting ‘‘Federal Housing Finance 
Regulatory Reform Act of 2008’’; 
(ii) by striking ‘‘1⁄3’’ and inserting 
‘‘1⁄4’’; and 
(iii) by striking ‘‘or appointed’’; and 
(C) in the third sentence— 
(i) by striking ‘‘an elective’’ each place 
that term appears and inserting ‘‘a’’; and 
(ii) by striking ‘‘in any elective direc-
torship or elective directorships’’; 
(6) in subsection (f)— 
(A) by striking paragraph (2);
325 
(B) by striking ‘‘appointed or’’ each place 
that term appears; and 
(C) in paragraph (3)— 
(i) by striking ‘‘(3) ELECTED BANK DI-
RECTORS.—’’ and inserting ‘‘(2) ELECTION 
PROCESS.—’’; and 
(ii) by striking ‘‘elective’’ each place 
that term appears; 
(7) in subsection (i)— 
(A) in paragraph (1), by striking ‘‘Subject 
to paragraph (2), each’’ and inserting ‘‘Each’’; 
and 
(B) by striking paragraph (2) and inserting 
the following: 
‘‘(2) ANNUAL REPORT.—The Director shall in-
clude, in the annual report submitted to the Congress 
pursuant to section 1319B of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 
1992, information regarding the compensation and 
expenses paid by the Federal Home Loan Banks to 
the directors on the boards of directors of the Banks.’’; 
and 
(8) by adding at the end the following: 
‘‘(l) TRANSITION RULE.—Any member of the board of 
directors of a Bank elected or appointed in accordance with
326 
this section prior to the date of enactment of this subsection 
may continue to serve as a member of that board of direc-
tors for the remainder of the existing term of service.’’. 
SEC. 1203. DEFINITIONS. 
Section 2 of the Federal Home Loan Bank Act (12 
U.S.C. 1422) is amended— 
(1) by striking paragraphs (1), (10), and (11); 
(2) by redesignating paragraphs (2) through (9) 
as paragraphs (1) through (8), respectively; 
(3) by redesignating paragraphs (12) and (13) 
as paragraphs (9) and (10), respectively; and 
(4) by adding at the end the following: 
‘‘(11) DIRECTOR.—The term ‘Director’ means 
the Director of the Federal Housing Finance Agency. 
‘‘(12) AGENCY.—The term ‘Agency’ means the 
Federal Housing Finance Agency, established under 
section 1311 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992.’’. 
SEC. 1204. AGENCY OVERSIGHT OF FEDERAL HOME LOAN 
BANKS. 
The Federal Home Loan Bank Act (12 U.S.C. 1421 
et seq.), other than in provisions of that Act added or 
amended otherwise by this Act, is amended— 
(1) by striking sections 2A and 2B (12 U.S.C. 
1422a, 1422b);
327 
(2) by striking section 18 (12 U.S.C. 1438) and 
inserting the following: 
‘‘SEC. 18. ADMINISTRATIVE PROVISIONS. 
‘‘(a) ACQUISITION AUTHORITY.—The Director of the 
Office of Thrift Supervision, utilizing the services of the Ad-
ministrator of General Services (hereinafter referred to as 
the ‘Administrator’), and subject to any limitation hereon 
which may hereafter be imposed in appropriation Acts, is 
hereby authorized— 
‘‘(1) to acquire, in the name of the United 
States, real property in the District of Columbia, for 
the purposes set forth in this section; 
‘‘(2) to construct, develop, furnish, and equip 
such buildings thereon and such facilities as in its 
judgment may be appropriate to provide, to such ex-
tent as the Director of the Office of Thrift Supervision 
may deem advisable, suitable and adequate quarters 
and facilities for the Director of the Office of Thrift 
Supervision and the agencies under its administra-
tion or supervision; 
‘‘(3) to enlarge, remodel, or reconstruct any of 
the same; and 
‘‘(4) to make or enter into contracts for any of 
the foregoing.
332 
whom any such function is vested may provide for 
delegation or redelegation of the exercise of such func-
tion. 
‘‘(g) LIMITATION.—No obligation shall be incurred and 
no expenditure, except in liquidation of obligation, shall be 
made pursuant to paragraphs (1) and (2) of subsection (a), 
if the total amount of all obligations incurred pursuant 
thereto would thereupon exceed $13,200,000, or such greater 
amount as may be provided in an appropriations Act or 
other law.’’. 
(3) in section 11 (12 U.S.C. 1431)— 
(A) in subsection (b)— 
(i) in the first sentence— 
(I) by striking ‘‘The Board’’ and 
inserting ‘‘The Office of Finance, as 
agent for the Banks,’’; and 
(II) by striking ‘‘the Board’’ and 
inserting ‘‘such Office’’; and 
(ii) in the second and fourth sentences, 
by striking ‘‘the Board’’ each place such 
term appears and inserting ‘‘the Office of 
Finance’’; 
(B) in subsection (c)— 
(i) by striking ‘‘the Board’’ the first 
place such term appears and inserting ‘‘the
333 
Office of Finance, as agent for the Banks,’’; 
and 
(ii) by striking ‘‘the Board’’ the second 
place such term appears and inserting 
‘‘such Office’’; and 
(C) in subsection (f)— 
(i) by striking the 2 commas after 
‘‘permit’’ and inserting ‘‘or’’; and 
(ii) by striking the comma after ‘‘re-
quire’’; 
(4) in section 6 (12 U.S.C. 1426)— 
(A) in subsection (b)(1), in the matter pre-
ceding subparagraph (A), by striking ‘‘Finance 
Board approval’’ and inserting ‘‘approval by the 
Director’’; and 
(B) in each of subsections (c)(4)(B) and 
(d)(2), by striking ‘‘Finance Board regulations’’ 
each place that term appears and inserting ‘‘reg-
ulations of the Director’’; 
(5) in section 10(b) (12 U.S.C. 1430(b))— 
(A) in the subsection heading, by striking 
‘‘FORMAL BOARD RESOLUTION’’ and inserting 
‘‘APPROVAL OF DIRECTOR’’; and 
(B) by striking ‘‘by formal resolution’’;
334 
(6) in section 21(b)(5) (12 U.S.C. 1441(b)(5)), 
by striking ‘‘Chairperson of the Federal Housing Fi-
nance Board’’ and inserting ‘‘Director’’; 
(7) in section 15 (12 U.S.C. 1435), by inserting 
‘‘or the Director’’ after ‘‘the Board’’; 
(8) by striking ‘‘the Board’’ each place that term 
appears and inserting ‘‘the Director’’; 
(9) by striking ‘‘The Board’’ each place that 
term appears and inserting ‘‘The Director’’; 
(10) by striking ‘‘the Finance Board’’ each place 
that term appears and inserting ‘‘the Director’’; 
(11) by striking ‘‘The Finance Board’’ each place 
that term appears and inserting ‘‘The Director’’; and 
(12) by striking ‘‘Federal Housing Finance 
Board’’ each place that term appears and inserting 
‘‘Director’’. 
SEC. 1205. HOUSING GOALS. 
The Federal Home Loan Bank Act (12 U.S.C. 1421 
et seq.) is amended by inserting after section 10b the fol-
lowing new section: 
‘‘SEC. 10C. HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish hous-
ing goals with respect to the purchase of mortgages, if any, 
by the Federal Home Loan Banks. Such goals shall be con-
sistent with the goals established under sections 1331
335 
through 1334 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992. 
‘‘(b) CONSIDERATIONS.—In establishing the goals re-
quired by subsection (a), the Director shall consider the 
unique mission and ownership structure of the Federal 
Home Loan Banks. 
‘‘(c) TRANSITION PERIOD.—To facilitate an orderly 
transition, the Director shall establish interim target goals 
for purposes of this section for each of the 2 calendar years 
following the date of enactment of this section. 
‘‘(d) MONITORING AND ENFORCEMENT OF GOALS.— 
The requirements of section 1336 of the Federal Housing 
Enterprises Safety and Soundness Act of 1992, shall apply 
to this section, in the same manner and to the same extent 
as that section applies to the Federal housing enterprises. 
‘‘(e) ANNUAL REPORT.—The Director shall annually 
report to Congress on the performance of the Banks in meet-
ing the goals established under this section.’’. 
SEC. 1206. COMMUNITY DEVELOPMENT FINANCIAL INSTI-
TUTIONS. 
Section 4(a)(1) of the Federal Home Loan Bank Act 
(12 U.S.C. 1424(a)(1)) is amended— 
(1) by inserting after ‘‘savings bank,’’ the fol-
lowing: ‘‘community development financial institu-
tion,’’; and
336 
(2) in subparagraph (B), by inserting after 
‘‘United States,’’ the following: ‘‘or, in the case of a 
community development financial institution, is cer-
tified as a community development financial institu-
tion under the Community Development Banking and 
Financial Institutions Act of 1994.’’. 
SEC. 1207. SHARING OF INFORMATION AMONG FEDERAL 
HOME LOAN BANKS. 
The Federal Home Loan Bank Act is amended by in-
serting after section 20 (12 U.S.C. 1440) the following new 
section: 
‘‘SEC. 20A. SHARING OF INFORMATION AMONG FEDERAL 
HOME LOAN BANKS. 
‘‘(a) INFORMATION
ON FINANCIAL CONDITION.—In 
order to enable each Federal Home Loan Bank to evaluate 
the financial condition of one or more of the other Federal 
Home Loan Banks individually and the Federal Home 
Loan Bank System (including any risks associated with the 
issuance or repayment of consolidated Federal Home Loan 
Bank bonds and debentures or other borrowings and the 
joint and several liabilities of the Banks incurred due to 
such borrowings), as well as to comply with any of its obli-
gations under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.), the Director shall make available to 
the Banks such reports, records, or other information as
338 
(2) section 15 of the Securities Exchange Act of 
1934, and related Commission regulations, with re-
spect to transactions in the capital stock of a Federal 
Home Loan Bank; 
(3) section 17A of the Securities Exchange Act of 
1934, and related Commission regulations, with re-
spect to the transfer of the securities of a Federal 
Home Loan Bank; and 
(4) the Trust Indenture Act of 1939. 
(b) MEMBER EXEMPTION.—The members of the Fed-
eral Home Loan Bank System shall be exempt from compli-
ance with sections 13(d), 13(f), 13(g), 14(d), and 16 of the 
Securities Exchange Act of 1934, and related Commission 
regulations, with respect to ownership of or transactions in 
the capital stock of the Federal Home Loan Banks by such 
members. 
(c) EXEMPTED AND GOVERNMENT SECURITIES.— 
(1) CAPITAL STOCK.—The capital stock issued by 
each of the Federal Home Loan Banks under section 
6 of the Federal Home Loan Bank Act are— 
(A) exempted securities, within the meaning 
of section 3(a)(2) of the Securities Act of 1933; 
and 
(B) exempted securities, within the meaning 
of section 3(a)(12)(A) of the Securities Exchange
339 
Act of 1934, except to the extent provided in sec-
tion 38 of that Act. 
(2) 
OTHER
OBLIGATIONS.—The 
debentures, 
bonds, and other obligations issued under section 11 
of the Federal Home Loan Bank Act (12 U.S.C. 1431) 
are— 
(A) exempted securities, within the meaning 
of section 3(a)(2) of the Securities Act of 1933; 
(B) government securities, within the mean-
ing of section 3(a)(42) of the Securities Exchange 
Act of 1934; and 
(C) government securities, within the mean-
ing of section 2(a)(16) of the Investment Com-
pany Act of 1940. 
(3) BROKERS AND DEALERS.—A person (other 
than a Federal Home Loan Bank effecting trans-
actions for members of the Federal Home Loan Bank 
System) that effects transactions in the capital stock 
or other obligations of a Federal Home Loan Bank, 
for the account of others or for that person’s own ac-
count, as applicable, is a broker or dealer, as those 
terms are defined in paragraphs (4) and (5), respec-
tively, of section 3(a) of the Securities Exchange Act 
of 1934, but is excluded from the definition of—
340 
(A) the term ‘‘government securities broker’’ 
under section 3(a)(43) of the Securities Exchange 
Act of 1934; and 
(B) the term ‘‘government securities dealer’’ 
under section 3(a)(44) of the Securities Exchange 
Act of 1934. 
(d) EXEMPTION FROM REPORTING REQUIREMENTS.— 
The Federal Home Loan Banks shall be exempt from peri-
odic reporting requirements under the securities laws per-
taining to the disclosure of— 
(1) related party transactions that occur in the 
ordinary course of the business of the Banks with 
members; and 
(2) the unregistered sales of equity securities. 
(e) TENDER OFFERS.—Commission rules relating to 
tender offers shall not apply in connection with trans-
actions in the capital stock of the Federal Home Loan 
Banks. 
(f) REGULATIONS.— 
(1) IN GENERAL.—The Commission shall pro-
mulgate such rules and regulations as may be nec-
essary or appropriate in the public interest or in fur-
therance of this section and the exemptions provided 
in this section.
341 
(2) CONSIDERATIONS.—In issuing regulations 
under this section, the Commission shall consider the 
distinctive characteristics of the Federal Home Loan 
Banks when evaluating— 
(A) the accounting treatment with respect to 
the payment to the Resolution Funding Corpora-
tion; 
(B) the role of the combined financial state-
ments of the Federal Home Loan Banks; 
(C) the accounting classification of redeem-
able capital stock; and 
(D) the accounting treatment related to the 
joint and several nature of the obligations of the 
Banks. 
(g) DEFINITIONS.—As used in this section— 
(1) the terms ‘‘Bank’’, ‘‘Federal Home Loan 
Bank’’, ‘‘member’’, and ‘‘Federal Home Loan Bank 
System’’ have the same meanings as in section 2 of 
the Federal Home Loan Bank Act (12 U.S.C. 1422); 
(2) the term ‘‘Commission’’ means the Securities 
and Exchange Commission; and 
(3) the term ‘‘securities laws’’ has the same 
meaning as in section 3(a)(47) of the Securities Ex-
change Act of 1934 (15 U.S.C. 78c(a)(47)).
342 
SEC. 1209. VOLUNTARY MERGERS. 
Section 26 of the Federal Home Loan Bank Act (12 
U.S.C. 1446) is amended— 
(1) by striking ‘‘Whenever’’ and inserting ‘‘(a) 
IN GENERAL.—Whenever’’; and 
(2) by adding at the end the following: 
‘‘(b) VOLUNTARY MERGERS AUTHORIZED.— 
‘‘(1) IN
GENERAL.—Any Federal Home Loan 
Bank may, with the approval of the Director and of 
the boards of directors of the Banks involved, merge 
with another Bank. 
‘‘(2) REGULATIONS
REQUIRED.—The Director 
shall promulgate regulations establishing the condi-
tions and procedures for the consideration and ap-
proval of any voluntary merger described in para-
graph (1), including the procedures for Bank member 
approval.’’. 
SEC. 1210. AUTHORITY TO REDUCE DISTRICTS. 
Section 3 of the Federal Home Loan Bank Act (12 
U.S.C. 1423) is amended— 
(1) by striking ‘‘As soon’’ and inserting ‘‘(a) IN 
GENERAL.—As soon’’; and 
(2) by adding at the end the following: 
‘‘(b) AUTHORITY TO REDUCE DISTRICTS.—Notwith-
standing subsection (a), the number of districts may be re-
duced to a number less than 8—
343 
‘‘(1) pursuant to a voluntary merger between 
Banks, as approved pursuant to section 26(b); or 
‘‘(2) pursuant to a decision by the Director to 
liquidate a Bank pursuant to section 1367 of the Fed-
eral Housing Enterprises Financial Safety and 
Soundness Act of 1992.’’. 
SEC. 1211. COMMUNITY FINANCIAL INSTITUTION MEMBERS. 
(a) TOTAL ASSET REQUIREMENT.—Paragraph (10) of 
section 2 of the Federal Home Loan Bank Act (12 U.S.C. 
1422(10)), as so redesignated by section 201(3) of this Act, 
is amended by striking ‘‘$500,000,000’’ each place such 
term appears and inserting ‘‘$1,000,000,000’’. 
(b) USE OF ADVANCES FOR COMMUNITY DEVELOP-
MENT ACTIVITIES.—Section 10(a) of the Federal Home 
Loan Bank Act (12 U.S.C. 1430(a)) is amended— 
(1) in paragraph (2)(B)— 
(A) by striking ‘‘and’’; and 
(B) by inserting ‘‘, and community develop-
ment activities’’ before the period at the end; 
(2) in paragraph (3)(E), by inserting ‘‘or com-
munity development activities’’ after ‘‘agriculture,’’; 
and 
(3) in paragraph (6)— 
(A) by striking ‘‘and’’; and
344 
(B) by inserting ‘‘, and ‘community devel-
opment activities’ ’’ before ‘‘shall’’. 
SEC. 1212. PUBLIC USE DATABASE; REPORTS TO CONGRESS. 
Section 10 of the Federal Home Loan Bank Act (12 
U.S.C. 1430) is amended— 
(1) in subsection (j)(12)— 
(A) by striking subparagraph (C) and in-
serting the following: 
‘‘(C) REPORTS.—The Director shall annu-
ally report to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of 
Representatives on the collateral pledged to the 
Banks, including an analysis of collateral by 
type and by Bank district.’’; and 
(B) by adding at the end the following: 
‘‘(D) SUBMISSION TO CONGRESS.—The Di-
rector shall submit the reports under subpara-
graphs (A) and (C) to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the 
House of Representatives, not later than 180 
days after the date of enactment of the Federal 
Housing Finance Regulatory Reform Act of 
2008.’’; and
373 
eligible mortgage shall be removed. The Secretary 
may take such actions, subject to standards es-
tablished by the Board under subparagraph (B), 
as may be necessary and appropriate to facili-
tate coordination and agreement between the 
holders of the existing senior mortgage and any 
existing subordinate mortgages, taking into con-
sideration the subordinate lien status of such 
subordinate mortgages. 
‘‘(B) SHARED APPRECIATION.— 
‘‘(i) IN GENERAL.—The Board shall es-
tablish standards and policies that will 
allow for the payment to the holder of any 
existing subordinate mortgage of a portion 
of any future appreciation in the property 
secured by such eligible mortgage that is 
owed to the Secretary pursuant to sub-
section (k). 
‘‘(ii) FACTORS.—In establishing the 
standards and policies required under 
clause (i), the Board shall take into consid-
eration— 
‘‘(I) the status of any subordinate 
mortgage;
374 
‘‘(II) the outstanding principal 
balance of and accrued interest on the 
existing senior mortgage and any out-
standing subordinate mortgages; 
‘‘(III) the extent to which the cur-
rent appraised value of the property 
securing a subordinate mortgage is less 
than the outstanding principal balance 
and accrued interest on any other liens 
that are senior to such subordinate 
mortgage; and 
‘‘(IV) such other factors as the 
Board determines to be appropriate. 
‘‘(C) VOLUNTARY
PROGRAM.—This para-
graph may not be construed to require any hold-
er of any existing mortgage to participate in the 
program under this section generally, or with re-
spect to any particular loan. 
‘‘(5) TERM OF MORTGAGE.—The refinanced eligi-
ble mortgage to be insured shall— 
‘‘(A) bear interest at a single rate that is 
fixed for the entire term of the mortgage; and 
‘‘(B) have a maturity of not less than 30 
years from the date of the beginning of amortiza-
tion of such refinanced eligible mortgage.
375 
‘‘(6) MAXIMUM
LOAN
AMOUNT.—The principal 
obligation amount of the eligible mortgage to be in-
sured shall not exceed 132 percent of the dollar 
amount limitation in effect for 2007 under section 
305(a)(2) of the Federal Home Loan Mortgage Cor-
poration Act (12 U.S.C. 1454(a)(2)) for a property of 
the applicable size. 
‘‘(7) PROHIBITION ON SECOND LIENS.—A mort-
gagor may not grant a new second lien on the mort-
gaged property during the first 5 years of the term of 
the mortgage insured under this section. 
‘‘(8) APPRAISALS.—Any appraisal conducted in 
connection with a mortgage insured under this section 
shall— 
‘‘(A) be based on the current value of the 
property; 
‘‘(B) be conducted in accordance with title 
XI of the Financial Institutions Reform, Recov-
ery, and Enforcement Act of 1989 (12 U.S.C. 
3331 et seq.); 
‘‘(C) be completed by an appraiser who 
meets the competency requirements of the Uni-
form Standards of Professional Appraisal Prac-
tice;
376 
‘‘(D) be wholly consistent with the ap-
praisal standards, practices, and procedures 
under section 202(e) of this Act that apply to all 
loans insured under this Act; and 
‘‘(E) comply with the requirements of sub-
section (g) of this section (relating to appraisal 
independence). 
‘‘(9) DOCUMENTATION AND VERIFICATION OF IN-
COME.—In complying with the FHA underwriting re-
quirements under the HOPE for Homeowners Pro-
gram under this section, the mortgagee under the 
mortgage shall document and verify the income of the 
mortgagor by procuring an Internal Revenue Service 
transcript of the income tax returns of the mortgagor 
for the 2 most recent years for which the filing dead-
line for such years has passed and by any other meth-
od, in accordance with procedures and standards that 
the Board or the Secretary shall establish. 
‘‘(10) MORTGAGE FRAUD.—The mortgagor shall 
not have been convicted under any provision of Fed-
eral or State law for fraud, including mortgage fraud. 
‘‘(11) PRIMARY
RESIDENCE.—The mortgagor 
shall provide documentation satisfactory in the deter-
mination of the Secretary to prove that the residence 
covered by the mortgage to be insured under this sec-
377 
tion is occupied by the mortgagor as the primary res-
idence of the mortgagor, and that such residence is the 
only residence in which the mortgagor has any 
present ownership interest. 
‘‘(f) STUDY OF AUCTION OR BULK REFINANCE PRO-
GRAM.— 
‘‘(1) STUDY.—The Board shall conduct a study 
of the need for and efficacy of an auction or bulk refi-
nancing mechanism to facilitate refinancing of exist-
ing residential mortgages that are at risk for fore-
closure into mortgages insured under this section. The 
study shall identify and examine various options for 
mechanisms under which lenders and servicers of such 
mortgages may make bids for forward commitments 
for such insurance in an expedited manner. 
‘‘(2) CONTENT.— 
‘‘(A) ANALYSIS.—The study required under 
paragraph (1) shall analyze— 
‘‘(i) the feasibility of establishing a 
mechanism that would facilitate the more 
rapid refinancing of borrowers at risk of 
foreclosure into performing mortgages in-
sured under this section; 
‘‘(ii) whether such a mechanism would 
provide an effective and efficient mechanism
378 
to reduce foreclosures on qualified existing 
mortgages; 
‘‘(iii) whether the use of an auction or 
bulk refinance program is necessary to sta-
bilize the housing market and reduce the 
impact of turmoil in that market on the 
economy of the United States; 
‘‘(iv) whether there are other mecha-
nisms or authority that would be useful to 
reduce foreclosure; and 
‘‘(v) and any other factors that the 
Board considers relevant. 
‘‘(B) DETERMINATIONS.—To the extent that 
the Board finds that a facility of the type de-
scribed in subparagraph (A) is feasible and use-
ful, the study shall— 
‘‘(i) determine and identify any addi-
tional authority or resources needed to es-
tablish and operate such a mechanism; 
‘‘(ii) determine whether there is a need 
for additional authority with respect to the 
loan underwriting criteria established in 
this section or with respect to eligibility of 
participating borrowers, lenders, or holders 
of liens;
423 
(1) IN GENERAL.—If the Secretary establishes a 
licensing system under section 1508 for any State, the 
Secretary shall appoint examiners for the purposes of 
administering such section. 
(2) POWER
TO
EXAMINE.—Any examiner ap-
pointed under paragraph (1) shall have power, on be-
half of the Secretary, to make any examination of 
any loan originator operating in any State which is 
subject to a licensing system established by the Sec-
retary under section 1508 whenever the Secretary de-
termines an examination of any loan originator is 
necessary to determine the compliance by the origi-
nator with this title. 
(3) REPORT OF EXAMINATION.—Each examiner 
appointed under paragraph (1) shall make a full and 
detailed report of examination of any loan originator 
examined to the Secretary. 
(4) ADMINISTRATION OF OATHS AND AFFIRMA-
TIONS; EVIDENCE.—In connection with examinations 
of loan originators operating in any State which is 
subject to a licensing system established by the Sec-
retary under section 1508, or with other types of in-
vestigations to determine compliance with applicable 
law and regulations, the Secretary and examiners ap-
pointed by the Secretary may administer oaths and
424 
affirmations and examine and take and preserve tes-
timony under oath as to any matter in respect to the 
affairs of any such loan originator. 
(5) ASSESSMENTS.—The cost of conducting any 
examination of any loan originator operating in any 
State which is subject to a licensing system estab-
lished by the Secretary under section 1508 shall be as-
sessed by the Secretary against the loan originator to 
meet the Secretary’s expenses in carrying out such ex-
amination. 
(c) CEASE AND DESIST PROCEEDING.— 
(1) AUTHORITY
OF
SECRETARY.—If the Sec-
retary finds, after notice and opportunity for hearing, 
that any person is violating, has violated, or is about 
to violate any provision of this title, or any regula-
tion thereunder, with respect to a State which is sub-
ject to a licensing system established by the Secretary 
under section 1508, the Secretary may publish such 
findings and enter an order requiring such person, 
and any other person that is, was, or would be a 
cause of the violation, due to an act or omission the 
person knew or should have known would contribute 
to such violation, to cease and desist from committing 
or causing such violation and any future violation of 
the same provision, rule, or regulation. Such order
425 
may, in addition to requiring a person to cease and 
desist from committing or causing a violation, require 
such person to comply, or to take steps to effect com-
pliance, with such provision or regulation, upon such 
terms and conditions and within such time as the 
Secretary may specify in such order. Any such order 
may, as the Secretary deems appropriate, require fu-
ture compliance or steps to effect future compliance, 
either permanently or for such period of time as the 
Secretary may specify, with such provision or regula-
tion with respect to any loan originator. 
(2) HEARING.—The notice instituting pro-
ceedings pursuant to paragraph (1) shall fix a hear-
ing date not earlier than 30 days nor later than 60 
days after service of the notice unless an earlier or a 
later date is set by the Secretary with the consent of 
any respondent so served. 
(3) TEMPORARY
ORDER.—Whenever the Sec-
retary determines that the alleged violation or threat-
ened violation specified in the notice instituting pro-
ceedings pursuant to paragraph (1), or the continu-
ation thereof, is likely to result in significant dissipa-
tion or conversion of assets, significant harm to con-
sumers, or substantial harm to the public interest 
prior to the completion of the proceedings, the Sec-
426 
retary may enter a temporary order requiring the re-
spondent to cease and desist from the violation or 
threatened violation and to take such action to pre-
vent the violation or threatened violation and to pre-
vent dissipation or conversion of assets, significant 
harm to consumers, or substantial harm to the public 
interest as the Secretary deems appropriate pending 
completion of such proceedings. Such an order shall 
be entered only after notice and opportunity for a 
hearing, unless the Secretary determines that notice 
and hearing prior to entry would be impracticable or 
contrary to the public interest. A temporary order 
shall become effective upon service upon the respond-
ent and, unless set aside, limited, or suspended by the 
Secretary or a court of competent jurisdiction, shall 
remain effective and enforceable pending the comple-
tion of the proceedings. 
(4) REVIEW OF TEMPORARY ORDERS.— 
(A) REVIEW BY SECRETARY.—At any time 
after the respondent has been served with a tem-
porary cease and desist order pursuant to para-
graph (3), the respondent may apply to the Sec-
retary to have the order set aside, limited, or sus-
pended. If the respondent has been served with a 
temporary cease and desist order entered without
427 
a prior hearing before the Secretary, the respond-
ent may, within 10 days after the date on which 
the order was served, request a hearing on such 
application and the Secretary shall hold a hear-
ing and render a decision on such application at 
the earliest possible time. 
(B) JUDICIAL REVIEW.—Within— 
(i) 10 days after the date the respond-
ent was served with a temporary cease and 
desist order entered with a prior hearing be-
fore the Secretary; or 
(ii) 10 days after the Secretary renders 
a decision on an application and hearing 
under paragraph (1), with respect to any 
temporary cease and desist order entered 
without a prior hearing before the Sec-
retary, 
the respondent may apply to the United States 
district court for the district in which the re-
spondent resides or has its principal place of 
business, or for the District of Columbia, for an 
order setting aside, limiting, or suspending the 
effectiveness or enforcement of the order, and the 
court shall have jurisdiction to enter such an 
order. A respondent served with a temporary