I 
112TH CONGRESS 
1ST SESSION H. R. 1182 
To establish a term certain for the conservatorships of Fannie Mae and 
Freddie Mac, to provide conditions for continued operation of such enter-
prises, and to provide for the wind down of such operations and the 
dissolution of such enterprises. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 17, 2011 
Mr. HENSARLING (for himself and Mr. BACHUS) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To establish a term certain for the conservatorships of 
Fannie Mae and Freddie Mac, to provide conditions for 
continued operation of such enterprises, and to provide 
for the wind down of such operations and the dissolution 
of such enterprises. 
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 Bailout Elimi-
nation and Taxpayer Protection Act’’. 
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SEC. 2. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) CHARTER.—The term ‘‘charter’’ means— 
(A) with respect to the Federal National 
Mortgage Association, the Federal National 
Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.); and 
(B) with respect to the Federal Home 
Loan Mortgage Corporation, the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 
1451 et seq.). 
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
(3) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation; and 
(B) the Federal Home Loan Mortgage 
Corporation. 
(4) 
GUARANTEE.—The 
term 
‘‘guarantee’’ 
means, with respect to an enterprise, the credit sup-
port of the enterprise that is provided by the Fed-
eral Government through its charter as a Govern-
ment-sponsored enterprise. 
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SEC. 3. TERMINATION OF CURRENT CONSERVATORSHIP. 
(a) IN GENERAL.—Upon the expiration of the period 
referred to in subsection (b), the Director of the Federal 
Housing Finance Agency shall determine, with respect to 
each enterprise, if the enterprise is financially viable at 
that time and— 
(1) if the Director determines that the enter-
prise is financially viable, immediately take all ac-
tions necessary to terminate the conservatorship for 
the enterprise that is in effect pursuant to section 
1367 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (12 U.S.C. 
4617); or 
(2) if the Director determines that the enter-
prise is not financially viable, immediately appoint 
the Federal Housing Finance Agency as receiver 
under section 1367 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
and carry out such receivership under the authority 
of such section. 
(b) TIMING.—The period referred to in this sub-
section is, with respect to an enterprise, the 24-month pe-
riod beginning upon the date of the enactment of this Act. 
(c) FINANCIAL VIABILITY.—The Director may not 
determine that an enterprise is financially viable for pur-
poses of subsection (a) if the Director determines that any 
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of the conditions for receivership set forth in paragraph 
(3) or (4) of section 1367(a) of the Federal Housing En-
terprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4617(a)) exists at the time with respect to the en-
terprise. 
SEC. 4. LIMITATIONS ON ENTERPRISE AUTHORITY. 
(a) LIMITATIONS EFFECTIVE UPON ENACTMENT.— 
Upon the enactment of this Act, the following provisions 
shall take effect: 
(1) REPEAL OF MANDATORY HOUSING ACTIVI-
TIES.— 
(A) REPEAL
OF
HOUSING
GOALS.—The 
Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 is amended by 
striking sections 1331 through 1336 (12 U.S.C. 
4561–6). 
(B) CONFORMING AMENDMENTS.—Federal 
Housing Enterprises Financial Safety and 
Soundness Act of 1992 is amended— 
(i) in section 1303(28) (12 U.S.C. 
4502(28)), by striking ‘‘, and, for the pur-
poses’’ and all that follows through ‘‘des-
ignated disaster areas’’; 
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(ii) in section 1324(b)(1)(A) (12 
U.S.C. 4544(b)(1)(A)), by striking clauses 
(i), (ii), and (iv); 
(iii) in section 1339(h) (12 U.S.C. 
4569(h)), by striking paragraph (7); 
(iv) in section 1341 (12 U.S.C. 
4581)— 
(I) in subsection (a)— 
(aa) in paragraph (1), by in-
serting ‘‘or’’ after the semicolon 
at the end; 
(bb) in paragraph (2), by 
striking the semicolon at the end 
and inserting a period; and 
(cc) by striking paragraphs 
(3) and (4); and 
(II) in subsection (b)(2)— 
(aa) in subparagraph (A), 
by inserting ‘‘or’’ after the semi-
colon at the end; 
(bb) by striking subpara-
graphs (B) and (C); and 
(cc) by redesignating sub-
paragraph (D) as subparagraph 
(B); 
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(v) in section 1345(a) (12 U.S.C. 
4585(a))— 
(I) in paragraph (1), by inserting 
‘‘or’’ after the semicolon at the end; 
(II) in paragraph (2), by striking 
the semicolon at the end and inserting 
a period; and 
(III) by striking paragraphs (3) 
and (4); and 
(vi) in section 1371(a)(2) (12 U.S.C. 
4631(a)(2)), by striking ‘‘with any housing 
goal established under subpart B of part 2 
of subtitle A of this title, with section 1336 
or 1337 of this title,’’. 
(C) REPEAL OF HOUSING TRUST FUND.— 
(i) REPEAL.—The Federal Housing 
Enterprises Financial Safety and Sound-
ness Act of 1992 is amended by striking 
sections 1337 and 1338 (12 U.S.C. 4567, 
4568). 
(ii) 
CONFORMING
AMENDMENTS.— 
The Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 is 
amended— 
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(I) in section 1303(24)(B) (12 
U.S.C. 
4502(24)(B)), 
by 
striking 
‘‘1338 and’’; 
(II) in section 1324(b)(1)(A) (12 
U.S.C. 4544(b)(1)(A))— 
(aa) by striking clause (iii); 
(bb) by striking the dash 
after ‘‘which’’ and inserting the 
text of clause (v) and a period; 
and 
(cc) by striking clause (v); 
(III) in section 1339(b)— 
(aa) by striking paragraph 
(1); 
(bb) by striking the dash 
after ‘‘consist of’’ and inserting 
the text of paragraph (2) and a 
period; and 
(cc) by striking paragraph 
(2); and 
(IV) in section 1346 (12 U.S.C. 
4585), by striking subsection (f). 
(2) PORTFOLIO
LIMITATIONS.—Subtitle B of 
title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4611 et seq.) is 
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amended by adding at the end the following new sec-
tion: 
‘‘SEC. 1369E. 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 Bailout 
Elimination and Taxpayer Protection Act or there-
after, $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, 
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with respect to an enterprise, assets of such enterprise 
consisting of mortgages, mortgage loans, mortgage-related 
securities, participation certificates, mortgage-backed 
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).’’. 
(3) REPEAL
OF
INCREASES
TO
CONFORMING 
LOAN LIMITS.— 
(A) REPEAL OF TEMPORARY INCREASES.— 
(i) 
CONTINUING
APPROPRIATIONS 
ACT, 2011.—Section 146 of the Continuing 
Appropriations Act, 2011 (Public Law 
111–242; 124 Stat. 2615) is hereby re-
pealed. 
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(ii) 
CONTINUING
APPROPRIATIONS 
RESOLUTION, 2010.—Section 167 of the 
Continuing 
Appropriations 
Resolution, 
2010 (division B of Public Law 111–68 
(as added by section 104 of division B of 
Public Law 111–88; 123 Stat. 2973)) is 
hereby repealed. 
(iii) AMERICAN RECOVERY AND REIN-
VESTMENT ACT OF 2009.—Section 1203 of 
division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 
111–5; 123 Stat. 225) is hereby repealed. 
(iv) ECONOMIC
STIMULUS
ACT
OF 
2008.—Section 201 of the Economic Stim-
ulus Act of 2008 (Public Law 110–185; 
122 Stat. 619) is hereby repealed. 
(B) REPEAL OF GENERAL LIMIT AND PER-
MANENT
HIGH-COST
AREA
INCREASE.—Para-
graph (2) of section 302(b) of the Federal Na-
tional Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)) and paragraph (2) of sec-
tion 305(a) of the Federal Home Loan Mort-
gage Corporation Act (12 U.S.C. 1454(a)(2)) 
are each amended to read as such sections were 
in effect immediately before the enactment of 
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the Housing and Economic Recovery Act of 
2008 (Public Law 110–289). 
(C) REPEAL
OF
NEW
HOUSING
PRICE 
INDEX.—Section 1322 of the Federal Housing 
Enterprises Financial Safety and Soundness 
Act of 1992, as added by section 1124(d) of the 
Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is hereby repealed. 
(D) REPEAL.—Section 1124 of the Hous-
ing and Economic Recovery Act of 2008 (Public 
Law 110–289) is hereby repealed. 
(E) ESTABLISHMENT
OF
CONFORMING 
LOAN LIMIT.—For the first year beginning after 
the date of the enactment of this Act, the limi-
tations governing the maximum original prin-
cipal obligation of conventional mortgages that 
may be purchased by the Federal National 
Mortgage Association and the Federal Home 
Loan Mortgage Corporation, referred to in sec-
tion 302(b)(2) of the Federal National Mort-
gage Association Charter Act (12 U.S.C. 
1717(b)(2)) and section 305(a)(2) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)), respectively, shall be con-
sidered to be— 
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