I 
110TH CONGRESS 
1ST SESSION H. R. 3838 
To temporarily increase the portfolio caps applicable to Freddie Mac and 
Fannie Mae, to provide the necessary financing to curb foreclosures 
by facilitating the refinancing of at-risk subprime borrowers into safe, 
affordable loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 16, 2007 
Mr. FRANK of Massachusetts introduced the following bill; which was referred 
to the Committee on Financial Services 
A BILL 
To temporarily increase the portfolio caps applicable to 
Freddie Mac and Fannie Mae, to provide the necessary 
financing to curb foreclosures by facilitating the refi-
nancing of at-risk subprime borrowers into safe, afford-
able loans, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
The Congress finds that— 
(1) American families will be severely harmed 
by an unprecedented wave of anticipated foreclosures 
expected to occur over the coming months, as ad-
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justable rate subprime mortgages reset to higher in-
terest rates; 
(2) preventing such foreclosures and facilitating 
the refinancing of at-risk subprime borrowers into 
safe, affordable loans will require the additional li-
quidity provided by the Federal National Mortgage 
Association and the Federal Home Loan Mortgage 
Association, and any affiliates thereof; 
(3) the failure to prevent these anticipated fore-
closures could have devastating effects on household 
wealth, neighborhood property values, and the over-
all health of the broader economy; and 
(4) the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation, 
and any affiliates thereof, are uniquely positioned to 
provide the financing necessary to alleviate the pre-
dicted wave of anticipated foreclosures. 
SEC. 2. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Office of Federal Housing Enter-
prise Oversight of the Department of Housing and 
Urban Development. 
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(2) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation, and any affiliate thereof; and 
(B) the Federal Home Loan Mortgage 
Corporation, and any affiliate thereof. 
(3) FANNIE MAE CONSENT DECREE.—The term 
‘‘Fannie Mae Consent Decree’’ means the order of 
the Office of Federal Housing Enterprises Oversight 
dated May 23, 2006, in the matter of the Federal 
National Mortgage Association. 
(4) 
FREDDIE
MAC
LETTER.—The 
term 
‘‘Freddie Mac Letter’’ means the letter dated July 
31, 2006, from the Chairman and Chief Executive 
Officer of the Federal Home Loan Mortgage Cor-
poration to the Director. 
(5) OFHEO.—The term ‘‘OFHEO’’ means the 
Office of Federal Housing Enterprises Oversight. 
SEC. 3. LIFTING OF PORTFOLIO CAPS. 
(a) IN GENERAL.—Immediately upon the date of en-
actment of this Act, the Director shall terminate, suspend, 
modify, or otherwise lift— 
(1) the limitation on growth provision set forth 
in section 4, Article III of the Fannie Mae Consent 
Decree; and 
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(2) the voluntary temporary growth limitation 
described in the Freddie Mac Letter. 
(b) FACTORS.—In carrying out subsection (a), the 
Director shall increase the mortgage portfolio limitations 
of both enterprises by not less than 10 percent. 
(c) ALLOCATION.— 
(1) IN GENERAL.—Eighty-five percent of the 
portfolio increase described in subsection (b) shall be 
used for the purpose of refinancing subprime mort-
gages at risk of foreclosure. 
(2) DEFINITIONS.—The Director may establish 
criteria defining the term ‘‘subprime mortgage’’, as 
the Director determines necessary. 
(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to prevent or prohibit the Director 
from exercising any authority of the Director to terminate, 
suspend, modify, or otherwise lift the limitations ref-
erenced in paragraphs (1) and (2) of subsection (a) be-
yond the minimum increase specified in subsection (b), as 
the Director deems appropriate. 
SEC. 4. SUNSET PROVISION. 
This Act is repealed, effective 6 months after the date 
of enactment of this Act, and the authority of the Director 
under this Act is terminated on that date of repeal. 
Æ 
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