I 
112TH CONGRESS 
1ST SESSION H. R. 1224 
To increase the rate of the required annual reductions of the retained 
portfolios of Fannie Mae and Freddie Mac. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 29, 2011 
Mr. HENSARLING (for himself, Mr. BACHUS, Mr. GARRETT, and Mr. PEARCE) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To increase the rate of the required annual reductions of 
the retained portfolios of Fannie Mae and Freddie Mac. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘GSE Portfolio Risk 
Reduction Act of 2011’’. 
SEC. 2. PORTFOLIO LIMITATIONS. 
Subtitle B of title XIII of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 4611 et seq.) 
is amended by adding at the end the following new section: 
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‘‘SEC. 1369F. RESTRICTION ON MORTGAGE ASSETS OF EN-
TERPRISES. 
‘‘(a) RESTRICTION.—No enterprise shall own, as of 
any applicable date in this subsection or thereafter, mort-
gage assets in excess of— 
‘‘(1) upon the expiration of the 1-year period 
that begins upon the enactment of the GSE Port-
folio Risk Reduction Act of 2011 or thereafter, 
$700,000,000,000; 
‘‘(2) upon the expiration of the 2-year period 
that begins upon the enactment of such Act or 
thereafter, $600,000,000,000; 
‘‘(3) upon the expiration of the 3-year period 
that begins upon the enactment of such Act or 
thereafter, $475,000,000,000; 
‘‘(4) upon the expiration of the 4-year period 
that begins upon the enactment of such Act or 
thereafter, $350,000,000,000; and 
‘‘(5) upon the expiration of the 5-year period 
that begins upon the enactment of such Act or 
thereafter, $250,000,000,000. 
‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur-
poses of this section, the term ‘mortgage assets’ means, 
with respect to an enterprise, assets of such enterprise 
consisting of mortgages, mortgage loans, mortgage-related 
securities, participation certificates, mortgage-backed 
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commercial paper, obligations of real estate mortgage in-
vestment conduits and similar assets, in each case to the 
extent such assets would appear on the balance sheet of 
such enterprise in accordance with generally accepted ac-
counting principles in effect in the United States as of 
September 7, 2008 (as set forth in the opinions and pro-
nouncements of the Accounting Principles Board and the 
American Institute of Certified Public Accountants and 
statements and pronouncements of the Financial Account-
ing Standards Board from time to time; and without giv-
ing any effect to any change that may be made after Sep-
tember 7, 2008, in respect of Statement of Financial Ac-
counting Standards No. 140 or any similar accounting 
standard).’’. 
Æ 
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