(A) in section 1303(28) (12 U.S.C. 
4502(28)), by striking ‘‘and, for the purposes’’ 
and all that follows through ‘‘designated dis-
aster areas’’; 
(B) in section 1324(b)(1)(A) (12 U.S.C. 
4544(b)(1)(A))— 
(i) by striking clauses (i), (ii), and 
(iv); 
(ii) in clause (iii), by inserting ‘‘and’’ 
after the semicolon at the end; and 
(iii) by redesignating clauses (iii) and 
(v) as clauses (i) and (ii), respectively; 
(C) in section 1338(c)(10) (12 U.S.C. 
4568(c)(10)), by striking subparagraph (E); 
(D) in section 1339(h) (12 U.S.C. 4569), 
by striking paragraph (7); 
(E) in section 1341 (12 U.S.C. 4581)— 
(i) in subsection (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 
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(ii) in subsection (b)(2)— 
(I) in subparagraph (A), by in-
serting ‘‘or’’ after the semicolon at the 
end; 
(II) by striking subparagraphs 
(B) and (C); and 
(III) by redesignating subpara-
graph (D) as subparagraph (B); 
(F) 
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 pe-
riod; and 
(iii) by striking paragraphs (3) and 
(4); and 
(G) in section 1371(a)(2) (12 U.S.C. 
4631(a)(2))— 
(i) by striking ‘‘with any housing goal 
established under subpart B of part 2 of 
subtitle A of this title,’’; and 
(ii) by striking ‘‘section 1336 or’’. 
(d) REQUIREMENT
FOR
ENTERPRISES
TO
PAY 
STATE AND LOCAL TAXES.— 
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(1) FANNIE MAE.—Effective on the date of the 
enactment of this Act, paragraph (2) of section 
309(c) of the Federal National Mortgage Association 
Charter Act (12 U.S.C. 1723a(c)(2)) is amended— 
(A) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(B) by striking ‘‘except that any’’ and in-
serting ‘‘and any’’. 
(2) FREDDIE MAC.—Effective on the date of 
the enactment of this Act, section 303(e) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1452(e)) is amended— 
(A) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(B) by striking ‘‘except that any’’ and in-
serting ‘‘and any’’. 
(e) DESIGNATION OF DEPUTY DIRECTOR FOR HOUS-
ING FINANCE GUARANTEE ASSOCIATIONS.—Not later 
than six months after the date of the enactment of this 
Act, the Director shall designate the Deputy Director for 
Housing Finance Guarantee Associations authorized by 
section 1391(c) of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992, as added by 
the amendment made by section 3 of this Act. 
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(f) ESTABLISHMENT OF OFFICE OF SECURITIZATION 
AND CREATION
OF STANDARDIZED MORTGAGE SECU-
RITY.—Not later than 12 months after the date of the 
enactment of this Act, the Director shall— 
(1) provide for the establishment of the Office 
of Securitization, as authorized by section 1386 of 
the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992, as added by the amend-
ment made by section 3 of this Act; 
(2) create the standardized mortgage security 
forms required by section 1387 of the Federal Hous-
ing Enterprises Financial Safety and Soundness Act 
of 1992, as added by the amendment made by sec-
tion 3 of this Act; and 
(3) require, in a manner that does not disrupt 
or impair trading in existing mortgage securities 
issued by the enterprises, that the enterprises use 
the standardized mortgage security forms when 
issuing new mortgage securities. 
(g) REDUCTION IN MORTGAGE ASSET PORTFOLIOS 
OF ENTERPRISES.— 
(1) IN GENERAL.—Not later than 12 months 
after the date of enactment of this Act, the Director 
shall publish, in final form, a regulation that re-
quires each enterprise to reduce its total mortgage 
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assets to not more than $250,000,000,000, within 5 
years of the date of the enactment of this Act. 
(2) DEFINITION.—For purposes of this para-
graph, the term ‘‘total mortgage assets’’ means, with 
respect to an enterprise, mortgages, mortgage loans, 
mortgage-related securities, participation certificates, 
mortgage-backed commercial paper, obligations of 
real estate investment conduits and similar assets, in 
each case to the extent that such assets would ap-
pear on the balance sheet of the enterprise in ac-
cordance with generally accepted accounting prin-
ciples in effect in the United States as of September 
7, 2008. 
(h) INCREASE IN GUARANTEE FEES CHARGED BY 
ENTERPRISES.— 
(1) IN GENERAL.—Not later than 12 months 
after the date of the enactment of this Act, the Di-
rector shall, taking into consideration the study 
under section 1387(d)(1) of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 
1992, as added by the amendment made by section 
3 of this Act, issue in final form a regulation that 
directs the enterprises to increase, over a three-year 
period, guarantee fees to more accurately reflect the 
risk assumed by the guarantee. 
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(2) DEFINITION.—For purposes of this sub-
section, the term ‘‘guarantee fee’’ means a fee 
charged by an enterprise in connection with any 
guarantee, issued by the enterprise, of the timely 
payment of principal and interest on securities, 
notes, and other obligations based on or backed by 
mortgages on residential real property. Such term 
includes— 
(A) the guarantee fee charged by the Fed-
eral National Mortgage Association with respect 
to mortgage-backed securities; and 
(B) the management and guarantee fee 
charged by the Federal Home Loan Mortgage 
Corporation with respect to participation certifi-
cates. 
(i) CONFORMING LOAN LIMITS.—Effective upon the 
date of the enactment of this Act, section 146 of the Con-
tinuing Appropriations Act, 2011 (Public Law 111–242; 
124 Stat. 2615) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(c) 
EXTENSION
UNTIL
END
OF 
CONSERVATORSHIPS.—Notwithstanding any provision of 
subsection (a) or (b), such subsections shall apply with 
respect to mortgages originated during the period that be-
gins at the conclusion of fiscal year 2011 and ends upon 
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the termination of the conservatorship of the Federal Na-
tional Mortgage Association or the Federal Home Loan 
Mortgage Corporation, as applicable, pursuant to section 
4(l) of the Housing Finance Reform Act of 2011.’’. 
(j) FINALIZATION OF REGULATIONS GOVERNING AS-
SOCIATIONS, FORMATION THE APPLICATIONS AND AUDIT-
ING DIVISIONS.—Not later than 12 months after the date 
of the enactment of this Act, the Director shall— 
(1) issue, in final form regulations governing 
the chartering, operations, and supervision of asso-
ciations, including required capital and other pru-
dential standards; and 
(2) establish the applications and auditing divi-
sions required by section 1391 of the Federal Hous-
ing Enterprises Financial Safety and Soundness Act 
of 1992, as added by the amendment made by sec-
tion 3 of this Act. 
(k) NOTIFICATION TO CONGRESS AND ACCEPTANCE 
OF CHARTER APPLICATIONS.—Following the completion 
of the actions required under subsection (j), the Director 
shall— 
(1) notify the Congress that the Agency has 
taken all appropriate actions to begin the process of 
chartering, supervising and regulating associations, 
and 
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(2) may commence accepting, and acting upon, 
applications for the chartering of associations. 
(l) MANDATORY RECEIVERSHIP.—The Director shall 
place the enterprises into receivership no later than one 
year after five or more associations, two of which are not 
special purpose associations, have been chartered. 
(m) FEDERAL SUPPORT FOR EXISTING OBLIGATIONS 
OF FANNIE MAE AND FREDDIE MAC.—The full faith and 
credit of the United States is hereby pledged to the pay-
ment of all debt obligations of the enterprises and all 
mortgage-backed securities issued by the enterprises, until 
such obligations and securities mature or are redeemed. 
(n) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) AGENCY.—The term ‘‘Agency’’ means the 
Federal Housing Finance Agency. 
(2) ASSOCIATION; CONVENTIONAL
MORTGAGE; 
OFFICE OF SECURITIZATION; REGULATED ENTITY.— 
The terms ‘‘association’’, ‘‘conventional mortgage’’, 
‘‘Office of Securitization’’, and ‘‘regulated entity’’ 
have the meanings given such terms in section 1381 
of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992. 
(3) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Agency. 
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(4) ENTERPRISE.—The term ‘‘enterprise’’ has 
the meaning given such term in section 1303 of the 
Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4502). 
(5) TRANSITION
PERIOD.—The term ‘‘transi-
tion period’’ means the period that begins upon the 
date of the enactment of this Act and ends upon ap-
pointment of receivers for both enterprises pursuant 
to subsection (m). 
SEC. 5. TECHNICAL AND CONFORMING AMENDMENTS. 
Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 is amended— 
(1) in section 1303(28) (12 U.S.C. 4502(28)), 
by striking ‘‘and, for the purposes’’ and all that fol-
lows through ‘‘designated disaster areas’’; 
(2) in section 1324(b)(1)(A) (12 U.S.C. 
4544(b)(1)(A))— 
(A) by striking clauses (i), (ii), and (iv); 
(B) in clause (iii), by inserting ‘‘and’’ after 
the semicolon at the end; and 
(C) by redesignating clauses (iii) and (v) 
as clauses (i) and (ii), respectively; 
(3) 
in 
section 
1338(c)(10) 
(12 
U.S.C. 
4568(c)(10)), by striking subparagraph (E); 
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(4) in section 1339(h) (12 U.S.C. 4569), by 
striking paragraph (7); 
(5) in section 1341 (12 U.S.C. 4581)— 
(A) in subsection (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 pe-
riod; and 
(iii) by striking paragraphs (3) and 
(4); and 
(B) in subsection (b)(2)— 
(i) in subparagraph (A), by inserting 
‘‘or’’ after the semicolon at the end; 
(ii) by striking subparagraphs (B) and 
(C); and 
(iii) by redesignating subparagraph 
(D) as subparagraph (B); 
(6) in section 1345(a) (12 U.S.C. 4585(a))— 
(A) in paragraph (1), by inserting ‘‘or’’ 
after the semicolon at the end; 
(B) in paragraph (2), by striking the semi-
colon at the end and inserting a period; and 
(C) by striking paragraphs (3) and (4); 
and 
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