major systems with remote site facilities to protect 
against disruptive events; and 
‘‘(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 al-
lowed under subparagraph (C); and 
‘‘(ii) if such standard is established by 
guideline, the Director may require the 
regulated entity to submit a plan described 
in clause (i). 
‘‘(B) 
CONTENTS.—Any 
plan 
required 
under subparagraph (A) shall specify the ac-
tions that the regulated entity will take to cor-
rect the deficiency. If the regulated entity is 
undercapitalized, the plan may be a part of the
capital restoration plan for the regulated entity 
under section 1369C. 
‘‘(C) DEADLINES
FOR
SUBMISSION
AND 
REVIEW.—The Director shall by regulation es-
tablish 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 
determines 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 al-
lowed under paragraph (1)(C), or fails in any mate-
rial respect to implement a plan accepted by the Di-
rector, the following shall apply: 
‘‘(A) REQUIRED
CORRECTION
OF
DEFI-
CIENCY.—The Director shall, by order, require 
the regulated entity to correct the deficiency.
‘‘(B) OTHER
AUTHORITY.—The Director 
may, by order, take one or more of the fol-
lowing 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 
average total assets of the entity may in-
crease from one calendar quarter to an-
other. 
‘‘(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 de-
fined 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
of this section than any of the actions de-
scribed in this subparagraph. 
‘‘(3) MANDATORY
RESTRICTIONS.—In com-
plying 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 reg-
ulated 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 under-
went extraordinary growth, as defined by the 
Director. 
‘‘(c) OTHER ENFORCEMENT AUTHORITY NOT AF-
FECTED.—The authority of the Director under this sec-
tion 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 Fed-
eral Housing Finance Board’’ and inserting ‘‘the Director 
of the Federal Housing Finance Agency’’.
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 sec-
tion: 
‘‘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 
Director. 
‘‘(c) COMPOSITION.—The Board shall be comprised 
of 3 members, of whom—
‘‘(1) one member shall be the Secretary of the 
Treasury; 
‘‘(2) one member shall be the Secretary of 
Housing and Urban Development; and 
‘‘(3) one member shall be the Director, who 
shall serve as the Chairperson of the Board. 
‘‘(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 
entities; 
‘‘(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 
regulated entities in carrying out their respective 
missions; 
‘‘(5) operations, resources, and performance of 
the Agency; and 
‘‘(6) such other matters relating to the Agency 
and its fulfillment of its mission, as the Board deter-
mines appropriate.’’.
(b) ANNUAL REPORT OF THE DIRECTOR.—Section 
1319B(a) of the Housing and Community Development 
Act of 1992 (12 U.S.C. 4521 (a)) is amended—
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; and 
(2) by striking paragraph (4) and inserting the 
following new paragraphs: 
‘‘(4) an assessment of the Board or any of its 
members with respect to—
‘‘(A) the safety and soundness of the regu-
lated entities; 
‘‘(B) any material deficiencies in the con-
duct of the operations of the regulated entities; 
‘‘(C) the overall operational status of the 
regulated entities; and 
‘‘(D) an evaluation of the performance of 
the regulated entities in carrying out their mis-
sions; 
‘‘(5) operations, resources, and performance of 
the Agency; 
‘‘(6) a description of the demographic makeup 
of the workforce of the Agency and the actions taken 
pursuant to section 1319A(b) to provide for diversity 
in the workforce; and