SEC. 2. FINDINGS. 
The Congress finds that— 
(1) American families will be severely harmed 
by an unprecedented wave of potential foreclosures 
expected to occur in the next 12 months, as adjust-
able rate subprime mortgages reset to higher inter-
est rates; 
(2) preventing such foreclosures and facilitating 
the refinancing of at-risk subprime borrowers into 
safe prime loans will require additional capacity on 
the part of the government sponsored enterprises, 
the Federal National Mortgage Association, and the 
Federal Home Loan Mortgage Association, and any 
affiliates thereof, to purchase additional financing; 
(3) there is a lack of liquidity in the financial 
markets for mortgage backed securities, which 
threatens to impair financing for all mortgages; and 
(4) the government sponsored enterprises, the 
Federal National Mortgage Association, and the 
Federal Home Loan Mortgage Corporation, and any 
affiliates thereof, are uniquely positioned to provide 
the financing necessary to alleviate the predicted 
wave of upcoming foreclosures, and the liquidity nec-
essary to help United States markets. 
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SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Federal Housing Enter-
prise Oversight of the Department of Housing and 
Urban Development. 
(2) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation, and any affiliate thereof; and 
(B) the Federal Home Loan Mortgage 
Corporation, and any affiliate thereof. 
(3) FANNIE MAE CONSENT ORDER.—The term 
‘‘Fannie Mae Consent Order’’ means the order of 
the Office of Federal Housing Enterprises Oversight 
dated May 23, 2006, in the matter of the Federal 
National Mortgage Association. 
(4) 
FREDDIE
MAC
LETTER.—The 
term 
‘‘Freddie Mac Letter’’ means the letter dated July 
31, 2006, from the Chairman and Chief Executive 
Officer of the Federal Home Loan Mortgage Cor-
poration to the Director. 
(5) OFHEO.—The term ‘‘OFHEO’’ means the 
Office of Federal Housing Enterprises Oversight. 
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SEC. 4. LIFTING OF PORTFOLIO CAPS. 
(a) IN GENERAL.—Immediately upon the date of en-
actment of this Act, the Director shall terminate, suspend, 
modify, or otherwise lift— 
(1) the limitation on growth provision set forth 
in section 4, Article III of the Fannie Mae Consent 
Order, as interpreted and modified by OFHEO on 
September 19, 2007; and 
(2) the voluntary temporary growth limitation 
described in the Freddie Mac Letter, as interpreted 
and modified by OFHEO on September 19, 2007. 
(b) FACTORS.—In carrying out subsection (a), the 
Director shall increase the mortgage portfolio limitations 
of both enterprises by not less than 10 percent, unless the 
Director certifies in writing 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, and demonstrates by compelling evidence that such 
action is likely to result in a significant depletion of the 
core capital of an enterprise, or otherwise create an unsafe 
and unsound condition. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prevent or prohibit the Director 
from exercising any authority of the Director to terminate, 
suspend, modify, or otherwise lift the limitations referred 
to in paragraphs (1) and (2) of subsection (a) beyond the 
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minimum increase specified in subsection (b), as the Di-
rector deems appropriate. 
SEC. 5. SUNSET PROVISION. 
This Act is repealed, effective 1 year after the date 
of enactment of this Act. 
Æ 
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