(5) ADDITIONAL REQUIREMENTS.—In carrying 
out the Pilot Program, the enterprises shall— 
(A) collect and disclose loan-level data on 
each of the mortgage loans backing the credit 
risk transactions, including consumer credit 
score information and the loan-to-value ratio of 
the loan; and 
(B) refine transaction structure designs to 
improve execution. 
(d) PROMOTION
OF MARKET
FOR CREDIT RISK 
TRANSACTIONS.—With respect to all credit risk transfer 
transactions of an enterprise, including any transaction 
under the Pilot Program, the Director shall do the fol-
lowing: 
(1) Work to ensure a secondary market for 
credit risk transfer products that will give investors 
as deep and liquid a market. 
(2) Not later than 1 year after the date of the 
enactment of this Act, in consultation with the Secu-
rities Exchange Commission, the Commodity Fu-
tures Trading Commission, and any Federal banking 
agency as appropriate, issue a report to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate that provides 
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recommendations on how to incentivize additional 
sources of private capital to participate in credit risk 
transfer transactions, including regulatory actions 
taken and recommendations for legislative proposals 
to remove impediments to such participation. Noth-
ing in the preceding sentence is intended to prevent 
or delay FHFA or another agency from developing 
and implementing a regulatory action to remove any 
impediment to or incentivize such participation prior 
to issuance of such report as authorized under cur-
rent law. 
(3) Require the enterprises to make 60 percent 
of mortgages available to be subject to credit risk 
transactions in the first fiscal year after the date of 
the enactment of this Act, 70 percent in the second 
fiscal year after such date of enactment, and 80 per-
cent in the third fiscal year after such date of enact-
ment. 
(e) CAPITAL STANDARDS.— 
(1) IN GENERAL.—The Director may set capital 
or collateral requirements for participants in the 
Pilot Program. 
(2) USE OF CERTAIN CAPITAL MARKETS TRANS-
ACTIONS.—In setting capital standards under para-
graph (1), the Director shall allow participants to 
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prudently reduce or eliminate any capital require-
ments for credit-risk sharing transactions through 
the use of capital markets transactions that pre-fund 
the risk, including credit-linked notes. 
(f) ECONOMIC CONSIDERATIONS.—If the Director of 
the FHFA and the Secretary of the Treasury determine 
that the Pilot Program is economically unreasonable due 
to housing market conditions, the Director may lower the 
percentage amounts specified under subsection (c)(2), 
(c)(3), or (d)(1)(C). 
(g) FHFA REPORTS.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, and annually 
thereafter, the Director shall provide a report to the 
Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate con-
taining— 
(A) information on credit risk transfer 
transaction pricing on quarterly basis; 
(B) the amount of credit risk that has 
been transferred from the enterprises on a 
quarterly basis; 
(C) metrics and annual goals regarding the 
Pilot Program; 
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(D) the percentage of the unpaid principal 
balance of mortgage loans covered under the 
Pilot Program in each year; 
(E) a description of how the FHFA in-
tends to move forward with mortgage insurance 
focused transactions following the recently fi-
nalized mortgage insurance master policy re-
quirements and private mortgage insurer eligi-
bility requirements, and how the FHFA evalu-
ates the remaining counterparty risk with mort-
gage insurers; 
(F) a description of new credit risk trans-
fer pilot programs that FHFA intends an en-
terprise to undertake over the next three years 
and steps FHFA intends to take to solicit new 
ideas for new and innovative ways to transfer 
credit risk away from the enterprises and the 
taxpayers, including transfers of expected, un-
expected, and catastrophic credit loss; and 
(G) a description of how FHFA plans to 
transition from credit risk sharing pilot pro-
grams to a regular standardized program of 
credit risk transfers that establish a stable and 
liquid market for mortgage credit risk. 
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(2) SOLICITATION OF PUBLIC FEEDBACK.—In 
preparing any report required under paragraph (1), 
the Director shall solicit public feedback, including 
feedback to— 
(A) generate new potential forms of credit 
risk transfer; and 
(B) identify potential barriers to entry for 
private sector parties to invest in such trans-
actions. 
(3) CONFIDENTIALITY.—In issuing any report 
under paragraph (1), the Director shall protect 
counterparty proprietary data, including in making 
information available about the Pilot Program. 
(h) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the ability of the Director 
to conduct customized risk sharing transactions as author-
ized under current law. 
(i) DURATION OF THE PILOT PROGRAM.— 
(1) IN GENERAL.—The Pilot Program shall last 
a minimum of 3 years after the first transfer of cat-
astrophic credit loss. The Director may continue to 
direct the enterprises to transfer risk of credit loss, 
including risk of catastrophic credit loss, and may 
continue to enter into credit risk transfer trans-
actions to transfer such risk after the end of 3 years 
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