(A) TERMS.—The mortgage meets the re-
quirements under subparagraphs (A), (B), (D), 
and (E) of paragraph (2). 
(B) HOME PURCHASE.—The principal loan 
amount repayment of which is secured by the 
mortgage shall be used to purchase the prop-
erty that is subject to the qualified new mort-
gage. 
(C) NEW MORTGAGES.—The mortgage was 
originated on or after the date of the enactment 
of this Act. 
(d) EXCEPTIONS TO UNDERWRITING STANDARDS.— 
Each enterprise shall establish such exceptions to the un-
derwriting standards of the enterprise, including downpay-
ment and credit rating standards, that conform to the un-
derwriting standards established pursuant to subsection 
(c)(5), as may be necessary to allow the enterprise to pur-
chase and securitize qualified refinancing mortgages and 
qualified new mortgages under this section, in accordance 
with such requirements as the Director shall establish. 
(e) SECURITIZATION.— 
(1) REQUIREMENT.—Each enterprise shall, 
upon such terms and conditions as it may prescribe, 
set aside any qualified mortgages purchased by it 
under this section and, upon approval of the Sec-
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retary of the Treasury, issue and sell securities 
based upon such mortgages set aside. 
(2) FORM.—Securities issued under this sub-
section may be in the form of debt obligations or 
trust certificates of beneficial interest, or both. 
(3) TERMS.—Securities issued under this sub-
section shall have such maturities and bear such 
rate or rates of interest as may be determined by the 
enterprise with the approval of the Secretary. 
(4) EXEMPTION.—Securities issued by an en-
terprise under this subsection shall, to the same ex-
tent as securities which are direct obligations of or 
obligations guaranteed as to principal and interest 
by the United States, be deemed to be exempt secu-
rities within the meaning of laws administered by 
the Securities and Exchange Commission. 
(5) PRINCIPAL
AND
INTEREST
PAYMENTS.— 
Mortgages set aside pursuant to this subsection shall 
at all times be adequate to enable the issuing enter-
prise to make timely principal and interest payments 
on the securities issued and sold pursuant to this 
subsection. 
(6) REQUIRED DISCLOSURE.—Each enterprise 
shall insert appropriate language in all of the securi-
ties issued under this subsection clearly indicating 
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that such securities, together with the interest there-
on, are not guaranteed by the United States and do 
not constitute a debt or obligation of the United 
States or any agency or instrumentality thereof 
other than the enterprise. 
(f) FEDERAL RESERVE FINANCING FACILITY.—The 
Board of Governors of the Federal Reserve System shall 
establish a credit facility of the Federal Reserve System 
to make credit available to the enterprises at interest rates 
comparable to rates on securities issued by the Secretary 
of the Treasury under chapter 31 of title 31, United 
States Code, and having comparable terms, as determined 
by the Board. 
(g) TERMINATION.—The requirement under sub-
section (b)(1) for the enterprises to purchase mortgages 
shall not apply to any mortgage proferred to an enterprise 
after December 31, 2010. 
SEC. 3. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agen-
cy. 
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(2) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation. 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
Æ 
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