of conservatorships and receiverships, the Director 
may act in the Director’s own name and through the 
Director’s own attorneys, or request that the Attorney 
General of the United States act on behalf of the Di-
rector. 
‘‘(2) CONSULTATION
WITH
ATTORNEY
GEN-
ERAL.—The Director shall provide notice to, and con-
sult with, the Attorney General of the United States 
before taking an action under paragraph (1) of this 
subsection or under section 1344(a), 1345(d), 1348(c), 
1372(e), 1375(a), 1376(d), or 1379D(c), except that, if 
the Director determines that any delay caused by such 
prior notice and consultation may adversely affect the 
safety and soundness responsibilities of the Director 
under this title, the Director shall notify the Attorney 
General as soon as reasonably possible after taking 
such action. 
‘‘(3) SUBJECT
TO
SUIT.—Except as otherwise 
provided by law, the Director shall be subject to suit 
(other than suits on claims for money damages) by a 
regulated entity or director or officer thereof with re-
spect to any matter under this title or any other ap-
plicable provision of law, rule, order, or regulation 
under this title, in the United States district court for 
the judicial district in which the regulated entity has 
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its principal place of business, or in the United 
States District Court for the District of Columbia, 
and the Director may be served with process in the 
manner prescribed by the Federal Rules of Civil Pro-
cedure. 
‘‘SEC. 1313A. PRUDENTIAL MANAGEMENT AND OPERATIONS 
STANDARDS. 
‘‘(a) STANDARDS.—The Director shall establish stand-
ards, by regulation, guideline, or order, for each regulated 
entity relating to— 
‘‘(1) adequacy of internal controls and informa-
tion systems, including information security and pri-
vacy policies and practices, taking into account the 
nature and scale of business operations; 
‘‘(2) independence and adequacy of internal 
audit systems; 
‘‘(3) management of credit and counterparty 
risk, including systems to identify concentrations of 
credit risk and prudential limits to restrict exposure 
of the regulated entity to a single counterparty or 
groups of related counterparties; 
‘‘(4) management of interest rate risk exposure; 
‘‘(5) management of market risk, including 
standards that provide for systems that accurately 
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measure, monitor, and control market risks and, as 
warranted, that establish limitations on market risk; 
‘‘(6) adequacy and maintenance of liquidity and 
reserves; 
‘‘(7) management of any asset and investment 
portfolio; 
‘‘(8) investments and acquisitions by a regulated 
entity, to ensure that they are consistent with the 
purposes of this Act and the authorizing statutes; 
‘‘(9) maintenance of adequate records, in accord-
ance with consistent accounting policies and practices 
that enable the Director to evaluate the financial con-
dition of the regulated entity; 
‘‘(10) issuance of subordinated debt by that par-
ticular regulated entity, as the Director considers nec-
essary; 
‘‘(11) overall risk management processes, includ-
ing adequacy of oversight by senior management and 
the board of directors and of processes and policies to 
identify, measure, monitor, and control material 
risks, including reputational risks, and for adequate, 
well-tested business resumption plans for all major 
systems with remote site facilities to protect against 
disruptive events; and 
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‘‘(12) such other operational and management 
standards as the Director determines to be appro-
priate. 
‘‘(b) FAILURE TO MEET STANDARDS.— 
‘‘(1) PLAN REQUIREMENT.— 
‘‘(A) IN GENERAL.—If the Director deter-
mines that a regulated entity fails to meet any 
standard established under subsection (a)— 
‘‘(i) if such standard is established by 
regulation, the Director shall require the 
regulated entity to submit an acceptable 
plan to the Director within the time allowed 
under subparagraph (C); and 
‘‘(ii) if such standard is established by 
guideline, the Director may require the reg-
ulated entity to submit a plan described in 
clause (i). 
‘‘(B) CONTENTS.—Any plan required under 
subparagraph (A) shall specify the actions that 
the regulated entity will take to correct the defi-
ciency. If the regulated entity is undercapital-
ized, the plan may be a part of the capital res-
toration plan for the regulated entity under sec-
tion 1369C. 
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‘‘(C) DEADLINES FOR SUBMISSION AND RE-
VIEW.—The Director shall by regulation establish 
deadlines that— 
‘‘(i) provide the regulated entities with 
reasonable time to submit plans required 
under subparagraph (A), and generally re-
quire a regulated entity to submit a plan 
not later than 30 days after the Director de-
termines that the entity fails to meet any 
standard established under subsection (a); 
and 
‘‘(ii) require the Director to act on 
plans expeditiously, and generally not later 
than 30 days after the plan is submitted. 
‘‘(2) REQUIRED ORDER UPON FAILURE TO SUB-
MIT OR IMPLEMENT PLAN.—If a regulated entity fails 
to submit an acceptable plan within the time allowed 
under paragraph (1)(C), or fails in any material re-
spect to implement a plan accepted by the Director, 
the following shall apply: 
‘‘(A) REQUIRED
CORRECTION
OF
DEFI-
CIENCY.—The Director shall, by order, require 
the regulated entity to correct the deficiency. 
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‘‘(B) OTHER
AUTHORITY.—The Director 
may, by order, take one or more of the following 
actions until the deficiency is corrected: 
‘‘(i) Prohibit the regulated entity from 
permitting its average total assets (as such 
term is defined in section 1316(b)) during 
any calendar quarter to exceed its average 
total assets during the preceding calendar 
quarter, or restrict the rate at which the av-
erage total assets of the entity may increase 
from one calendar quarter to another. 
‘‘(ii) Require the regulated entity— 
‘‘(I) in the case of an enterprise, 
to increase its ratio of core capital to 
assets. 
‘‘(II) in the case of a Federal 
home loan bank, to increase its ratio of 
total capital (as such term is defined 
in section 6(a)(5) of the Federal Home 
Loan Bank Act (12 U.S.C. 1426(a)(5)) 
to assets. 
‘‘(iii) Require the regulated entity to 
take any other action that the Director de-
termines will better carry out the purposes 
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of this section than any of the actions de-
scribed in this subparagraph. 
‘‘(3) MANDATORY RESTRICTIONS.—In complying 
with paragraph (2), the Director shall take one or 
more of the actions described in clauses (i) through 
(iii) of paragraph (2)(B) if— 
‘‘(A) the Director determines that the regu-
lated entity fails to meet any standard pre-
scribed under subsection (a); 
‘‘(B) the regulated entity has not corrected 
the deficiency; and 
‘‘(C) during the 18-month period before the 
date on which the regulated entity first failed to 
meet the standard, the entity underwent extraor-
dinary growth, as defined by the Director. 
‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT AF-
FECTED.—The authority of the Director under this section 
is in addition to any other authority of the Director.’’. 
(b) INDEPENDENCE IN CONGRESSIONAL TESTIMONY 
AND RECOMMENDATIONS.—Section 111 of Public Law 93– 
495 (12 U.S.C. 250) is amended by striking ‘‘the Federal 
Housing Finance Board’’ and inserting ‘‘the Director of the 
Federal Housing Finance Agency’’. 
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SEC. 103. FEDERAL HOUSING ENTERPRISE BOARD. 
(a) IN GENERAL.—Title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4501 et 
seq.) is amended by inserting after section 1313A, as added 
by section 102 of this Act, the following new section: 
‘‘SEC. 1313B. FEDERAL HOUSING ENTERPRISE BOARD. 
‘‘(a) IN GENERAL.—There is established the Federal 
Housing Enterprise Board, which shall advise the Director 
with respect to overall strategies and policies in carrying 
out the duties of the Director under this title. 
‘‘(b) LIMITATIONS.—The Board may not exercise any 
executive authority, and the Director may not delegate to 
the Board any of the functions, powers, or duties of the Di-
rector. 
‘‘(c) COMPOSITION.—The Board shall be comprised of 
5 members, of whom— 
‘‘(1) one member shall be the Secretary of the 
Treasury; 
‘‘(2) one member shall be the Secretary of Hous-
ing and Urban Development; 
‘‘(3) one member shall be the Director, who shall 
serve as the Chairperson of the Board; and 
‘‘(4) two members, who shall be appointed by the 
President, by and with the advise and consent of the 
Senate, who are experts or experienced in the field of 
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financial services, housing finance, affordable hous-
ing, or mortgage lending. 
The members pursuant to paragraph (4) shall be appointed 
for a term of four years. The Board may not, at any time, 
have more than three members of the same political party. 
‘‘(d) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet upon 
notice by the Director, but in no event shall the Board 
meet less frequently than once every 3 months. 
‘‘(2) SPECIAL MEETINGS.—Either the Secretary 
of the Treasury or the Secretary of Housing and 
Urban Development may, upon giving written notice 
to the Director, require a special meeting of the 
Board. 
‘‘(e) TESTIMONY.—On an annual basis, the Board 
shall testify before Congress regarding— 
‘‘(1) the safety and soundness of the regulated en-
tities; 
‘‘(2) any material deficiencies in the conduct of 
the operations of the regulated entities; 
‘‘(3) the overall operational status of the regu-
lated entities; 
‘‘(4) an evaluation of the performance of the reg-
ulated entities in carrying out their respective mis-
sions; 
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