SEC. 108. PROHIBITION AND WITHHOLDING OF EXECUTIVE 
COMPENSATION. 
(a) IN GENERAL.—Section 1318 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4518) 
is amended—
(1) in the section heading, by striking ‘‘OF EX-
CESSIVE’’ and inserting ‘‘AND WITHHOLDING OF 
EXECUTIVE’’; 
(2) by redesignating subsection (b) as sub-
section (d); and 
(3) by inserting after subsection (a) the fol-
lowing new subsections: 
‘‘(b) FACTORS.—In making any determination under 
subsection (a), the Director may take into consideration 
any factors the Director considers relevant, including any 
wrongdoing on the part of the executive officer, and such 
wrongdoing shall include any fraudulent act or omission, 
breach of trust or fiduciary duty, violation of law, rule, 
regulation, order, or written agreement, and insider abuse 
with respect to the regulated entity. The approval of an 
agreement or contract pursuant to section 309(d)(3)(B) 
of the Federal National Mortgage Association Charter Act 
(12 U.S.C. 1723a(d)(3)(B)) or section 303(h)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
1452(h)(2)) shall not preclude the Director from making 
any subsequent determination under subsection (a).
‘‘(c) WITHHOLDING
OF COMPENSATION.—In car-
rying out subsection (a), the Director may require a regu-
lated entity to withhold any payment, transfer, or dis-
bursement of compensation to an executive officer, or to 
place such compensation in an escrow account, during the 
review of the reasonableness and comparability of com-
pensation.’’. 
(b) CONFORMING AMENDMENTS.—
(1) FANNIE MAE.—Section 309(d) of the Fed-
eral National Mortgage Association Charter Act (12 
U.S.C. 1723a(d)) is amended by adding at the end 
the following new paragraph: 
‘‘(4) Notwithstanding any other provision of this sec-
tion, the corporation shall not transfer, disburse, or pay 
compensation to any executive officer, or enter into an 
agreement with such executive officer, without the ap-
proval of the Director, for matters being reviewed under 
section 1318 of the Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 (12 U.S.C. 
4518).’’. 
(2) FREDDIE MAC.—Section 303(h) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1452(h)) is amended by adding at the end 
the following new paragraph:
‘‘(4) Notwithstanding any other provision of this sec-
tion, the Corporation shall not transfer, disburse, or pay 
compensation to any executive officer, or enter into an 
agreement with such executive officer, without the ap-
proval of the Director, for matters being reviewed under 
section 1318 of the Federal Housing Enterprises Finan-
cial Safety and Soundness Act of 1992 (12 U.S.C. 
4518).’’. 
(3) FEDERAL HOME LOAN BANKS.—Section 7 
of the Federal Home Loan Bank Act (12 U.S.C. 
1427) is amended by adding at the end the following 
new subsection: 
‘‘(l) WITHHOLDING
OF COMPENSATION.—Notwith-
standing any other provision of this section, a Federal 
home loan bank shall not transfer, disburse, or pay com-
pensation to any executive officer, or enter into an agree-
ment with such executive officer, without the approval of 
the Director, for matters being reviewed under section 
1318 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4518).’’. 
SEC. 109. REVIEWS OF REGULATED ENTITIES. 
Section 1319 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4519) is amended—
(1) by striking the section designation and 
heading and inserting the following:
‘‘SEC. 1319. REVIEWS OF REGULATED ENTITIES.’’; 
and 
(2) by striking ‘‘is a nationally recognized’’ and 
all that follows through ‘‘1934’’ and inserting the 
following: ‘‘the Director considers appropriate, in-
cluding an entity that is registered under section 15 
of the Securities Exchange Act of 1934 (15 U.S.C. 
78a) as a nationally registered statistical rating or-
ganization’’. 
SEC. 110. INCLUSION OF MINORITIES AND WOMEN; DIVER-
SITY IN AGENCY WORKFORCE. 
Section 1319A of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4520) is amended—
(1) in the section heading, by striking ‘‘EQUAL 
OPPORTUNITY
IN
SOLICITATION
OF
CON-
TRACTS’’ and inserting ‘‘MINORITY AND WOMEN 
INCLUSION; DIVERSITY REQUIREMENTS’’; 
(2) in subsection (a), by striking ‘‘(a) IN GEN-
ERAL.—Each enterprise’’ and inserting ‘‘(e) OUT-
REACH.—Each regulated entity’’; and 
(3) by striking subsection (b); 
(4) by inserting before subsection (e), as so re-
designated by paragraph (2) of this section, the fol-
lowing new subsections: 
‘‘(a) OFFICE
OF MINORITY
AND WOMEN INCLU-
SION.—Each regulated entity shall establish an Office of
Minority and Women Inclusion, or designate an office of 
the entity, that shall be responsible for carrying out this 
section and all matters of the entity relating to diversity 
in management, employment, and business activities in ac-
cordance with such standards and requirements as the Di-
rector shall establish. 
‘‘(b) INCLUSION IN ALL LEVELS OF BUSINESS AC-
TIVITIES.—Each regulated entity shall develop and imple-
ment standards and procedures to ensure, to the max-
imum extent possible, the inclusion and utilization of mi-
norities (as such term is defined in section 1204(c) of the 
Financial Institutions Reform, Recovery, and Enforce-
ment Act of 1989 (12 U.S.C. 1811 note)) and women, 
and minority- and women-owned businesses (as such 
terms are defined in section 21A(r)(4) of the Federal 
Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) (including 
financial institutions, investment banking firms, mortgage 
banking firms, asset management firms, broker-dealers, fi-
nancial services firms, underwriters, accountants, brokers, 
investment consultants, and providers of legal services) in 
all business and activities of the regulated entity at all 
levels, including in procurement, insurance, and all types 
of contracts (including contracts for the issuance or guar-
antee of any debt, equity, or mortgage-related securities, 
the management of its mortgage and securities portfolios,
the making of its equity investments, the purchase, sale 
and servicing of single- and multi-family mortgage loans, 
and the implementation of its affordable housing program 
and initiatives). The processes established by each regu-
lated entity for review and evaluation for contract pro-
posals and to hire service providers shall include a compo-
nent that gives consideration to the diversity of the appli-
cant. 
‘‘(c) APPLICABILITY.—This section shall apply to all 
contracts of a regulated entity for services of any kind, 
including services that require the services of investment 
banking, asset management entities, broker-dealers, finan-
cial services entities, underwriters, accountants, invest-
ment consultants, and providers of legal services. 
‘‘(d) INCLUSION IN ANNUAL REPORTS.—Each regu-
lated entity shall include, in the annual report submitted 
by the entity to the Director pursuant to section 309(k) 
of the Federal National Mortgage Association Charter Act 
(12 U.S.C. 1723a(k)), section 307(c) of the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 1456(c)), and 
section 20 of the Federal Home Loan Bank Act (12 
U.S.C. 1440), as applicable, detailed information describ-
ing the actions taken by the entity pursuant to this sec-
tion, which shall include a statement of the total amounts 
paid by the entity to third party contractors since the last
such report and the percentage of such amounts paid to 
businesses described in subsection (b) of this section.’’; 
and 
(5) by adding at the end the following new sub-
section: 
‘‘(f) DIVERSITY
IN
AGENCY
WORKFORCE.—The 
Agency shall take affirmative steps to seek diversity in its 
workforce at all levels of the agency consistent with the 
demographic diversity of the United States, which shall 
include—
‘‘(1) heavily recruiting at historically Black col-
leges and universities, Hispanic-serving institutions, 
women’s colleges, and colleges that typically serve 
majority minority populations; 
‘‘(2) sponsoring and recruiting at job fairs in 
urban communities, and placing employment adver-
tisements in newspapers and magazines oriented to-
ward women and people of color; 
‘‘(3) partnering with organizations that are fo-
cused on developing opportunities for minorities and 
women to place talented young minorities and 
women in industry internships, summer employment, 
and full-time positions; and 
‘‘(4) where feasible, partnering with inner-city 
high schools, girls’ high schools, and high schools
with majority minority populations to establish or 
enhance financial literacy programs and provide 
mentoring.’’. 
SEC. 111. REGULATIONS AND ORDERS. 
Section 1319G of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4526) is amended—
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) AUTHORITY.—The Director shall issue any reg-
ulations, guidelines, and orders necessary to carry out the 
duties of the Director under this title and each of the au-
thorizing statutes to ensure that the purposes of this title 
and such statutes are accomplished.’’; 
(2) in subsection (b), by inserting ‘‘, this title, 
or any of the authorizing statutes’’ after ‘‘under this 
section’’; and 
(3) by striking subsection (c). 
SEC. 112. NON-WAIVER OF PRIVILEGES. 
Part 1 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4511) 
is amended by adding at the end the following new section: 
‘‘SEC. 1319H. PRIVILEGES NOT AFFECTED BY DISCLOSURE. 
‘‘(a) IN GENERAL.—The submission by any person 
of any information to the Agency for any purpose in the 
course of any supervisory or regulatory process of the
Agency shall not be construed as waiving, destroying, or 
otherwise affecting any privilege such person may claim 
with respect to such information under Federal or State 
law as to any person or entity other than the Agency. 
‘‘(b) RULE OF CONSTRUCTION.—No provision of sub-
section (a) may be construed as implying or establishing 
that—
‘‘(1) any person waives any privilege applicable 
to information that is submitted or transferred 
under any circumstance to which subsection (a) does 
not apply; or 
‘‘(2) any person would waive any privilege ap-
plicable to any information by submitting the infor-
mation to the Agency, but for this subsection.’’. 
SEC. 113. RISK-BASED CAPITAL REQUIREMENTS. 
(a) IN GENERAL.—Section 1361 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4611) 
is amended to read as follows: 
‘‘SEC. 1361. RISK-BASED CAPITAL LEVELS FOR REGULATED 
ENTITIES. 
‘‘(a) IN GENERAL.—
‘‘(1) ENTERPRISES.—The Director shall, by 
regulation, establish risk-based capital requirements 
for the enterprises to ensure that the enterprises op-
erate in a safe and sound manner, maintaining suffi-
cient capital and reserves to support the risks that 
arise in the operations and management of the en-
terprises. 
‘‘(2) FEDERAL HOME LOAN BANKS.—The Di-
rector shall establish risk-based capital standards 
under section 6 of the Federal Home Loan Bank 
Act for the Federal home loan banks. 
‘‘(b) CONFIDENTIALITY OF INFORMATION.—Any per-
son that receives any book, record, or information from 
the Director or a regulated entity to enable the risk-based 
capital requirements established under this section to be 
applied shall—
‘‘(1) maintain the confidentiality of the book, 
record, or information in a manner that is generally 
consistent with the level of confidentiality established 
for the material by the Director or the regulated en-
tity; and 
‘‘(2) be exempt from section 552 of title 5, 
United States Code, with respect to the book, 
record, or information. 
‘‘(c) NO LIMITATION.—Nothing in this section shall 
limit the authority of the Director to require other reports 
or undertakings, or take other action, in furtherance of 
the responsibilities of the Director under this Act.’’.