110 
the Secretary may prescribe, when the primary pur-
pose of the home equity conversion mortgage is to en-
able an elderly mortgagor to purchase a 1- to 4-fam-
ily dwelling in which the mortgagor will occupy or 
occupies one of the units. 
‘‘(2) LIMITATION ON PRINCIPAL OBLIGATION.—A 
home equity conversion mortgage insured pursuant to 
paragraph (1) shall involve a principal obligation 
that does not exceed the limitation under subsection 
(g) of this section on the maximum amount of the 
benefits of insurance under this section.’’. 
(b) MORTGAGES FOR COOPERATIVES.—Subsection (b) 
of section 255 of the National Housing Act (12 U.S.C. 
1715z–20(b)) is amended— 
(1) in paragraph (4)— 
(A) by inserting ‘‘a first or subordinate 
mortgage or lien’’ before ‘‘on all stock’’; 
(B) by inserting ‘‘unit’’ after ‘‘dwelling’’; 
and 
(C) by inserting ‘‘a first mortgage or first 
lien’’ before ‘‘on a leasehold’’; and 
(2) in paragraph (5), by inserting ‘‘a first or 
subordinate lien on’’ before ‘‘all stock’’.
111 
(c) PROHIBITION ON REQUIRED PURCHASE OF AN AN-
NUITY.—Section 255 of the National Housing Act of 1937 
(12 U.S.C. 1715z–20) is amended— 
(1) by striking subparagraph (B) of subsection 
(d)(2) and inserting the following new subparagraph: 
‘‘(B) has received adequate counseling by a 
third party (other than a reverse mortgage lend-
er, servicer or investor, or an entity engaged in 
the sale of annuities, investments, long-term care 
insurance, or any other type of financial or in-
surance product) as provided in subsection (f);’’; 
(2) by striking the first sentence of subsection (f) 
and inserting the following new sentence: ‘‘The Sec-
retary shall provide or cause to be provided and paid 
for by entities other than a reverse mortgage lender, 
servicer or investor, or an entity engaged in the sale 
of annuities, investments, long-term care insurance, 
or any other type of financial or insurance product 
the information required in subsection (d)(2)(B).’’; 
and 
(3) by striking subsections (l) and (m) and in-
serting the following new subsection: 
‘‘(l) REGULATIONS
TO PROTECT ELDERLY HOME-
OWNERS.—
112 
‘‘(1) IN
GENERAL.—Not later than 6 months 
after the date of the enactment of the Expanding 
American Homeownership Act of 2008, the Secretary 
shall, in consultation with other relevant Federal de-
partments and agencies, prescribe regulations to help 
protect elderly homeowners from the marketing of fi-
nancial and insurance products not in the interest of 
such homeowners, including the marketing or sale of 
an annuity as a condition of obtaining any home eq-
uity conversion mortgage. 
‘‘(2) CONSULTATION.—In developing the regula-
tions required under paragraph (1), the Secretary 
shall consult with consumer advocates (including rec-
ognized experts in consumer protection), industry rep-
resentatives, representatives of counseling organiza-
tions, and other interested parties.’’. 
(d) LIMITATION ON ORIGINATION FEES.—Section 255 
of the National Housing Act (12 U.S.C. 1715z–20), as 
amended by the preceding provisions of this section, is fur-
ther amended— 
(1) by redesignating subsections (k), (l), and (m) 
as subsections (l), (m), and (n), respectively; and 
(2) by inserting after subsection (j) the following 
new subsection:
113 
‘‘(k) LIMITATION ON ORIGINATION FEES.—The Sec-
retary shall establish limits on the origination fee that may 
be charged to a mortgagor under a mortgage insured under 
this section, which limitations shall— 
‘‘(1) be equal to 2.0 percent of the maximum 
claim amount of the mortgage up to a maximum 
claim amount of $200,000 plus 1 percent of any por-
tion of the maximum claim amount that is greater 
than $200,000, unless adjusted thereafter on the basis 
of an analysis of (A) costs to mortgagors, and (B) the 
impact on the reverse mortgage market; 
‘‘(2) be subject to a minimum allowable amount; 
‘‘(3) provide that the origination fee may be 
fully financed with the mortgage; 
‘‘(4) include any fees paid to correspondent 
mortgagees approved by the Secretary or to mortgage 
brokers; 
‘‘(5) apply beginning upon the date that the 
maximum dollar amount limitation on the benefits of 
insurance under this section is first increased pursu-
ant to the amendments made by section 219(a)(3) of 
the Expanding American Homeownership Act of 
2008; and 
‘‘(6) be subject to a maximum origination fee of 
$6,000, except that such maximum limit shall be ad-
114 
justed in accordance with the annual percentage in-
crease in the Consumer Price Index of the Bureau of 
Labor Statistics of the Department of Labor in incre-
ments of $500 only when the percentage increase in 
such index, when applied to the maximum origina-
tion fee, produce dollar increases that exceed $500.’’. 
(e) STUDY REGARDING MORTGAGE INSURANCE PRE-
MIUMS.—The Secretary of Housing and Urban Develop-
ment shall conduct a study regarding mortgage insurance 
premiums charged under the program under section 255 of 
the National Housing Act (12 U.S.C. 1715z–20) for insur-
ance of home equity conversion mortgages to analyze and 
determine the effects of reducing the amounts of such pre-
miums from the amounts charged as of the date of the enact-
ment of this Act on: (1) costs to mortgagors; and (2) the 
financial soundness of the program. Not later than the expi-
ration of the 12-month period beginning on the date of the 
enactment of this Act, the Secretary shall submit a report 
to the Congress setting forth the results and conclusions of 
the study. 
(f) PURCHASE AUTHORITY
OF FANNIE MAE
AND 
FREDDIE MAC.— 
(1) FANNIE MAE.—Section 302(b) of the Federal 
National Mortgage Association Charter Act (12
115 
U.S.C. 1717(b)) is amended by adding at the end the 
following: 
‘‘(7) The corporation is authorized to purchase, service, 
sell, lend on the security of, and otherwise deal in any mort-
gage insured under section 255 of the National Housing Act 
(12 U.S.C. 1715z–20), notwithstanding the limitations 
under paragraph (2) on the maximum original principal 
obligations of mortgages.’’. 
(2) FREDDIE MAC.—Section 305(a) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)) is amended by adding at the end the 
following: 
‘‘(6) The Corporation is authorized to purchase, serv-
ice, sell, lend on the security of, and otherwise deal in any 
mortgage insured under section 255 of the National Hous-
ing Act (12 U.S.C. 1715z–20), notwithstanding the limita-
tions under paragraph (2) on the maximum original prin-
cipal obligations of mortgages.’’. 
SEC. 220. STUDY ON PARTICIPATION OF MORTGAGE BRO-
KERS AND CORRESPONDENT LENDERS. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study, which shall be completed not 
later than the expiration of the 12-month period beginning 
on the date of the enactment of this Act, which shall analyze 
and determine—
167 
party shall not be liable to any person under 
any law or regulation of the United States, any 
constitution, law, or regulation of any State or 
political subdivision of any State, or under any 
contract or other legally enforceable agreement 
(including any arbitration agreement), for such 
report or for any failure to provide notice of 
such report to the person who is the subject of 
such report or any other person identified in the 
report. 
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as creating— 
‘‘(i) any inference that the term ‘per-
son’, as used in such subparagraph, may be 
construed more broadly than its ordinary 
usage so as to include any government or 
agency of government; or 
‘‘(ii) any immunity against, or other-
wise affecting, any civil or criminal action 
brought by any government or agency of 
government to enforce any constitution, law, 
or regulation of such government or agen-
cy.’’.
168 
SEC. 315. DISCLOSURE OF INCOME AND CHARITABLE CON-
TRIBUTIONS BY ENTERPRISES. 
Section 1314 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4514), as amended by the pre-
ceding provisions of this title, is further amended by adding 
at the end the following new subsections: 
‘‘(d) DISCLOSURE OF CHARITABLE CONTRIBUTIONS BY 
ENTERPRISES.— 
‘‘(1) REQUIRED
DISCLOSURE.—The Director 
shall, by regulation, require each enterprise to submit 
a report annually, in a format designated by the Di-
rector, containing the following information: 
‘‘(A) TOTAL
VALUE.—The total value of 
contributions made by the enterprise to nonprofit 
organizations during its previous fiscal year. 
‘‘(B) SUBSTANTIAL CONTRIBUTIONS.—If the 
value of contributions made by the enterprise to 
any nonprofit organization during its previous 
fiscal year exceeds the designated amount, the 
name of that organization and the value of con-
tributions. 
‘‘(C) SUBSTANTIAL CONTRIBUTIONS TO IN-
SIDER-AFFILIATED CHARITIES.—Identification of 
each contribution whose value exceeds the des-
ignated amount that were made by the enterprise 
during the enterprise’s previous fiscal year to
169 
any nonprofit organization of which a director, 
officer, or controlling person of the enterprise, or 
a spouse thereof, was a director or trustee, the 
name of such nonprofit organization, and the 
value of the contribution. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) the term ‘designated amount’ means 
such amount as may be designated by the Direc-
tor by regulation, consistent with the public in-
terest and the protection of investors for purposes 
of this subsection; and 
‘‘(B) the Director may, by such regulations 
as the Director deems necessary or appropriate 
in the public interest, define the terms officer 
and controlling person. 
‘‘(3) PUBLIC AVAILABILITY.—The Director shall 
make the information submitted pursuant to this sub-
section publicly available. 
‘‘(e) DISCLOSURE OF INCOME.—Each enterprise shall 
include, in each annual report filed under section 13 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78m), the in-
come reported by the issuer to the Internal Revenue Service 
for the most recent taxable year. Such income shall—
170 
‘‘(1) be presented in a prominent location in 
each such report and in a manner that permits a 
ready comparison of such income to income otherwise 
required to be included in such reports under regula-
tions issued under such section; and 
‘‘(2) be submitted to the Securities and Exchange 
Commission in a form and manner suitable for entry 
into the EDGAR system of such Commission for pub-
lic availability under such system.’’. 
SEC. 316. ASSESSMENTS. 
Section 1316 of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4516) is amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) ANNUAL ASSESSMENTS.—The Director shall es-
tablish and collect from the regulated entities annual assess-
ments in an amount not exceeding the amount sufficient 
to provide for reasonable costs and expenses of the Agency, 
including— 
‘‘(1) the expenses of any examinations under sec-
tion 1317 of this Act and under section 20 of the Fed-
eral Home Loan Bank Act; 
‘‘(2) the expenses of obtaining any reviews and 
credit assessments under section 1319;
171 
‘‘(3) such amounts in excess of actual expenses 
for any given year as deemed necessary by the Direc-
tor to maintain a working capital fund in accordance 
with subsection (e); and 
‘‘(4) the wind up of the affairs of the Office of 
Federal Housing Enterprise Oversight and the Fed-
eral Housing Finance Board under subtitle C of the 
Federal Housing Finance Reform Act of 2008.’’; 
(2) in subsection (b)— 
(A) in the subsection heading, by striking 
‘‘ENTERPRISES’’ and inserting ‘‘REGULATED 
ENTITIES’’; 
(B) by realigning paragraph (2) two ems 
from the left margin, so as to align the left mar-
gin of such paragraph with the left margins of 
paragraph (1); 
(C) in paragraph (1)— 
(i) by striking ‘‘Each enterprise’’ and 
inserting ‘‘Each regulated entity’’; 
(ii) by striking ‘‘each enterprise’’ and 
inserting ‘‘each regulated entity’’; and 
(iii) by striking ‘‘both enterprises’’ and 
inserting ‘‘all of the regulated entities’’; and 
(D) in paragraph (3)—
211 
risk considerations, economic value considerations, and vol-
ume considerations used by the regulated entities (as such 
term is defined in section 1303 of the Housing and Commu-
nity Development Act of 1992) included in the study in 
setting the amount of fees they charge. 
(c) CONTENTS
OF REPORT.—The report required 
under subsection (a) shall identify and analyze— 
(1) the factors used by each enterprise (as such 
term is defined in section 1303 of the Housing and 
Community Development Act of 1992) in determining 
the amount of the guarantee fees it charges; 
(2) the total revenue the enterprises earn from 
guarantee fees; 
(3) the total costs incurred by the enterprises for 
providing guarantees; 
(4) the average guarantee fee charged by the en-
terprises; 
(5) an analysis of how and why the guarantee 
fees charged differ from such fees charged during the 
previous year; 
(6) a breakdown of the revenue and costs associ-
ated with providing guarantees, based on product 
type and risk classifications; and
212 
(7) other relevant information on guarantee fees 
with other participants in the mortgage and 
securitization business. 
(d) PROTECTION OF INFORMATION.—Nothing in this 
section may be construed to require or authorize the Direc-
tor of the Federal Housing Finance Agency, in connection 
with the study mandated by this section, to disclose infor-
mation of the enterprises or other organization that is con-
fidential or proprietary. 
(e) EFFECTIVE DATE.—This section shall take effect on 
the date of the enactment of this Act. 
SEC. 330. CONFORMING AMENDMENTS. 
(a) 1992 ACT.—Part 1 of subtitle A of title XIII of 
the Housing and Community Development Act of 1992 (12 
U.S.C. 4511 et seq.), as amended by the preceding provi-
sions of this title, is further amended— 
(1) by striking ‘‘an enterprise’’ each place such 
term appears in such part (except in sections 
1313(a)(2)(A), 1313A(b)(2)(B)(ii)(I), and 1316(b)(3)) 
and inserting ‘‘a regulated entity’’; 
(2) by striking ‘‘the enterprise’’ each place such 
term appears in such part (except in section 
1316(b)(3)) and inserting ‘‘the regulated entity’’; 
(3) by striking ‘‘the enterprises’’ each place such 
term appears in such part (except in sections
213 
1312(c)(2), and 1312(e)(2)) and inserting ‘‘the regu-
lated entities’’; 
(4) by striking ‘‘each enterprise’’ each place such 
term appears in such part and inserting ‘‘each regu-
lated entity’’; 
(5) by striking ‘‘Office’’ each place such term ap-
pears in such part (except in sections 1311(b)(2), 
1312(b)(5), 1315(b), and 1316(a)(4), (g), and (h), 
1317(c), and 1319A(a)) and inserting ‘‘Agency’’; 
(6) in section 1315 (12 U.S.C. 4515)— 
(A) in subsection (a)— 
(i) in the subsection heading, by strik-
ing ‘‘OFFICE PERSONNEL’’ and inserting 
‘‘IN GENERAL’’; and 
(ii) by striking ‘‘The’’ and inserting 
‘‘Subject to subtitle C of the Federal Hous-
ing Finance Reform Act of 2008, the’’; 
(B) by striking subsections (d) and (f); and 
(C) by redesignating subsection (e) as sub-
section (d); 
(7) in section 1319B (12 U.S.C. 4521), by strik-
ing ‘‘Committee on Banking, Finance and Urban Af-
fairs’’ each place such term appears and inserting 
‘‘Committee on Financial Services’’; and
214 
(8) in section 1319F (12 U.S.C. 4525), striking 
all that follows ‘‘United States Code’’ and inserting ‘‘, 
the Agency shall be considered an agency responsible 
for the regulation or supervision of financial institu-
tions.’’. 
(b) AMENDMENTS TO FANNIE MAE CHARTER ACT.— 
The Federal National Mortgage Association Charter Act (12 
U.S.C. 1716 et seq.) is amended— 
(1) by striking ‘‘Director of the Office of Federal 
Housing Enterprise Oversight of the Department of 
Housing and Urban Development’’ each place such 
term appears, and inserting ‘‘Director of the Federal 
Housing Finance Agency’’, in— 
(A) 
section 
303(c)(2) 
(12 
U.S.C. 
1718(c)(2)); 
(B) 
section 
309(d)(3)(B) 
(12 
U.S.C. 
1723a(d)(3)(B)); and 
(C) section 309(k)(1); and 
(2) in section 309— 
(A) in subsections (d)(3)(A) and (n)(1), by 
striking ‘‘Banking, Finance and Urban Affairs’’ 
each place such term appears and inserting ‘‘Fi-
nancial Services’’; and 
(B) in subsection (m)—
215 
(i) in paragraph (1), by striking ‘‘Sec-
retary’’ the second place such term appears 
and inserting ‘‘Director’’; 
(ii) in paragraph (2), by striking 
‘‘Secretary’’ the second place such term ap-
pears and inserting ‘‘Director’’; and 
(iii) by striking ‘‘Secretary’’ each other 
place such term appears and inserting ‘‘Di-
rector of the Federal Housing Finance 
Agency’’; and 
(C) in subsection (n), by striking ‘‘Sec-
retary’’ each place such term appears and insert-
ing ‘‘Director of the Federal Housing Finance 
Agency’’. 
(c) AMENDMENTS TO FREDDIE MAC ACT.—The Fed-
eral Home Loan Mortgage Corporation Act is amended— 
(1) by striking ‘‘Director of the Office of Federal 
Housing Enterprise Oversight of the Department of 
Housing and Urban Development’’ each place such 
term appears, and inserting ‘‘Director of the Federal 
Housing Finance Agency’’, in— 
(A) 
section 
303(b)(2) 
(12 
U.S.C. 
1452(b)(2)); 
(B) 
section 
303(h)(2) 
(12 
U.S.C. 
1452(h)(2)); and
220 
subparagraph (A), the enterprise may offer the 
product. 
‘‘(d) EXPEDITED REVIEW.— 
‘‘(1) DETERMINATION AND NOTICE.—If an enter-
prise determines that any new activity, service, un-
dertaking, or offering is not a product, as defined in 
subsection (f), the enterprise shall provide written no-
tice to the Director prior to the commencement of such 
activity, service, undertaking, or offering. 
‘‘(2) DIRECTOR DETERMINATION OF APPLICABLE 
PROCEDURE.—Immediately upon receipt of any no-
tice pursuant to paragraph (1), the Director shall 
make a determination under paragraph (3). 
‘‘(3) DETERMINATION AND TREATMENT AS PROD-
UCT.—If the Director determines that any new activ-
ity, service, undertaking, or offering consists of, re-
lates to, or involves a product— 
‘‘(A) the Director shall notify the enterprise 
of the determination; 
‘‘(B) the new activity, service, undertaking, 
or offering described in the notice under para-
graph (1) shall be considered a product for pur-
poses of this section; and
221 
‘‘(C) the enterprise shall withdraw its re-
quest or submit a written request for approval of 
the product pursuant to subsection (c). 
‘‘(e) CONDITIONAL APPROVAL.—The Director may con-
ditionally approve the offering of any product by an enter-
prise, and may establish terms, conditions, or limitations 
with respect to such product with which the enterprise must 
comply in order to offer such product. 
‘‘(f) DEFINITION OF PRODUCT.—For purposes of this 
section, the term ‘product’ does not include— 
‘‘(1) the automated loan underwriting system of 
an enterprise in existence as of the date of the enact-
ment of the Federal Housing Finance Reform Act of 
2008, including any upgrade to the technology, oper-
ating system, or software to operate the underwriting 
system; or 
‘‘(2) any modification to the mortgage terms and 
conditions or mortgage underwriting criteria relating 
to the mortgages that are purchased or guaranteed by 
an enterprise: Provided, That such modifications do 
not alter the underlying transaction so as to include 
services or financing, other than residential mortgage 
financing, or create significant new exposure to risk 
for the enterprise or the holder of the mortgage.
222 
‘‘(g) NO LIMITATION.—Nothing in this section shall be 
deemed to restrict— 
‘‘(1) the safety and soundness authority of the 
Director over all new and existing products or activi-
ties; or 
‘‘(2) the authority of the Director to review all 
new and existing products or activities to determine 
that such products or activities are consistent with 
the statutory mission of the enterprise.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) FANNIE MAE.—Section 302(b)(6) of the Fed-
eral National Mortgage Association Charter Act (12 
U.S.C. 1717(b)(6)) is amended— 
(A) by striking ‘‘implement any new pro-
gram’’ and inserting ‘‘initially offer any prod-
uct’’; 
(B) by striking ‘‘section 1303’’ and insert-
ing ‘‘section 1321(f)’’; and 
(C) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ and 
inserting ‘‘except in accordance with section 
1321’’. 
(2) FREDDIE MAC.—Section 305(c) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(c)) is amended—
223 
(A) by striking ‘‘implement any new pro-
gram’’ and inserting ‘‘initially offer any prod-
uct’’; 
(B) by striking ‘‘section 1303’’ and insert-
ing ‘‘section 1321(f)’’; and 
(C) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ and 
inserting ‘‘except in accordance with section 
1321’’. 
(3) 1992 ACT.—Section 1303 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 
4502), as amended by the preceding provisions of this 
title, is further amended— 
(A) by striking paragraph (17) (relating to 
the definition of ‘‘new program’’); and 
(B) by redesignating paragraphs (18) 
through (23) as paragraphs (17) through (22), 
respectively. 
SEC. 333. CONFORMING LOAN LIMITS. 
(a) FANNIE MAE.—Section 302(b)(2) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 
1717(b)(2)) is amended— 
(1) in the second sentence, by redesignating 
clause (A) through (C) as clauses (i) through (iii), re-
spectively;
224 
(2) in the third sentence, by striking ‘‘clause 
(A)’’ and inserting ‘‘clause (i)’’; 
(3) in the 4th sentence, by striking ‘‘the Resolu-
tion Trust Corporation,’’; 
(4) by striking the 7th and 8th sentences and in-
serting the following new sentences: ‘‘For 2008, such 
limitations shall not exceed $417,000 for a mortgage 
secured by a single-family residence, $533,850 for a 
mortgage secured by a 2-family residence, $645,300 
for a mortgage secured by a 3-family residence, and 
$801,950 for a mortgage secured by a 4-family resi-
dence, except that such maximum limitations shall be 
adjusted effective January 1 of each year beginning 
with 2009, subject to the limitations in this para-
graph. Each adjustment shall be made by adding to 
or subtracting from each such amount (as it may 
have been previously adjusted) a percentage thereof 
equal to the percentage increase or decrease, during 
the most recent 12-month or four-quarter period end-
ing before the time of determining such annual ad-
justment, in the housing price index maintained by 
the Director of the Federal Housing Finance Agency 
(pursuant to section 1322 of the Housing and Com-
munity Development Act of 1992 (12 U.S.C. 4541)).’’. 
(5) by inserting ‘‘(A)’’ after ‘‘(2)’’; and
225 
(6) by adding at the end the following new sub-
paragraph: 
‘‘(B)(i) Notwithstanding subparagraph (A), for mort-
gages originated on or after January 1, 2009, the limitation 
on the maximum original principal obligation of a mort-
gage that may be purchased by the corporation shall be the 
higher of— 
‘‘(I) the limitation determined under subpara-
graph (A) for a residence of the applicable size; or 
‘‘(II) 125 percent of the area median price for a 
residence of the applicable size, but in no case to ex-
ceed 175 percent of the limitation determined under 
subparagraph (A) for a residence of the applicable 
size. 
‘‘(ii) The areas and area median prices used for pur-
poses of the determination under this subparagraph shall 
be the areas and area median prices used by the Secretary 
of Housing and Urban Development in determining the ap-
plicable limits under section 203(b)(2) of the National 
Housing Act (12 U.S.C. 1709(b)(2)). A mortgage that is 
eligible for purchase by the corporation at the time the 
mortgage is originated under this subparagraph shall be eli-
gible for such purchase for the duration of the term of the 
mortgage.’’.
226 
(b) FREDDIE MAC.—Section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) is amended— 
(1) in the first sentence, by redesignating clause 
(A) through (C) as clauses (i) through (iii), respec-
tively; 
(2) in the second sentence, by striking ‘‘clause 
(A)’’ and inserting ‘‘clause (i)’’; 
(3) in the third sentence by striking ‘‘the Resolu-
tion Trust Corporation’’; 
(4) by striking the 6th and 7th sentence and in-
serting the following new sentences: ‘‘For 2008, such 
limitations shall not exceed $417,000 for a mortgage 
secured by a single-family residence, $533,850 for a 
mortgage secured by a 2-family residence, $645,300 
for a mortgage secured by a 3-family residence, and 
$801,950 for a mortgage secured by a 4-family resi-
dence, except that such maximum limitations shall be 
adjusted effective January 1 of each year beginning 
with 2009, subject to the limitations in this para-
graph. Each adjustment shall be made by adding to 
or subtracting from each such amount (as it may 
have been previously adjusted) a percentage thereof 
equal to the percentage increase or decrease, during 
the most recent 12-month or four-quarter period end-
232 
‘‘(C) each Federal home loan bank is com-
plying with section 10(j) of the Federal Home 
Loan Bank Act; and 
‘‘(D) each regulated entity is achieving the 
purposes of the regulated entity established by 
law; 
‘‘(2) aggregate and analyze relevant data on in-
come to assess the compliance by each enterprise with 
the housing goals established under subpart B; 
‘‘(3) aggregate and analyze data on income, race, 
and gender by census tract and other relevant classi-
fications, and compare such data with larger demo-
graphic, housing, and economic trends; 
‘‘(4) examine actions that— 
‘‘(A) each enterprise has undertaken or 
could undertake to promote and expand the an-
nual goals established under subpart B and the 
purposes of the enterprise established by law; and 
‘‘(B) each Federal home loan bank has 
taken or could undertake to promote and expand 
the community investment program and afford-
able housing program of the bank established 
under subsections (i) and (j) of section 10 of the 
Federal Home Loan Bank Act;
233 
‘‘(5) examine the primary and secondary multi-
family housing mortgage markets and describe— 
‘‘(A) the availability and liquidity of mort-
gage credit; 
‘‘(B) the status of efforts to provide stand-
ard credit terms and underwriting guidelines for 
multifamily housing and to securitize such mort-
gage products; and 
‘‘(C) any factors inhibiting such standard-
ization and securitization; 
‘‘(6) examine actions each regulated entity has 
undertaken and could undertake to promote and ex-
pand opportunities for first-time homebuyers, includ-
ing the use of alternative credit scoring; 
‘‘(7) describe any actions taken under section 
1325(5) with respect to originators found to violate 
fair lending procedures; 
‘‘(8) discuss and analyze existing conditions and 
trends, including conditions and trends relating to 
pricing, in the housing markets and mortgage mar-
kets; and 
‘‘(9) identify the extent to which each enterprise 
is involved in mortgage purchases and secondary 
market activities involving subprime loans (as identi-
fied in accordance with the regulations issued pursu-
234 
ant to section 334(b) of the Federal Housing Finance 
Reform Act of 2008) and compare the characteristics 
of subprime loans purchased and securitized by the 
enterprises to other loans purchased and securitized 
by the enterprises. 
‘‘(c) DATA COLLECTION AND REPORTING.— 
‘‘(1) IN
GENERAL.—To assist the Director in 
analyzing the matters described in subsection (b) and 
establishing the methodology described in section 
1322, the Director shall conduct, on a monthly basis, 
a survey of mortgage markets in accordance with this 
subsection. 
‘‘(2) DATA POINTS.—Each monthly survey con-
ducted by the Director under paragraph (1) shall col-
lect data on— 
‘‘(A) the characteristics of individual mort-
gages that are eligible for purchase by the enter-
prises and the characteristics of individual mort-
gages that are not eligible for purchase by the en-
terprises including, in both cases, information 
concerning— 
‘‘(i) the price of the house that secures 
the mortgage;
235 
‘‘(ii) the loan-to-value ratio of the 
mortgage, which shall reflect any secondary 
liens on the relevant property; 
‘‘(iii) the terms of the mortgage; 
‘‘(iv) the creditworthiness of the bor-
rower or borrowers; and 
‘‘(v) whether the mortgage, in the case 
of a conforming mortgage, was purchased 
by an enterprise; and 
‘‘(B) such other matters as the Director de-
termines to be appropriate. 
‘‘(3) PUBLIC AVAILABILITY.—The Director shall 
make any data collected by the Director in connection 
with the conduct of a monthly survey available to the 
public in a timely manner, provided that the Director 
may modify the data released to the public to ensure 
that the data is not released in an identifiable form. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘identifiable form’ means any rep-
resentation of information that permits the identity of 
a borrower to which the information relates to be rea-
sonably inferred by either direct or indirect means.’’. 
(b) STANDARDS FOR SUBPRIME LOANS.—The Director 
shall, not later than one year after the effective date under 
section 365, by regulations issued under section 1316G of
236 
the Housing and Community Development Act of 1992, es-
tablish standards by which mortgages purchased and mort-
gages purchased and securitized shall be characterized as 
subprime for the purpose of, and only for the purpose of, 
complying with the reporting requirement under section 
1324(b)(9) of such Act. 
SEC. 335. ANNUAL REPORTS BY REGULATED ENTITIES ON 
AFFORDABLE HOUSING STOCK. 
The Housing and Community Development Act of 
1992 is amended by inserting after section 1328 (12 U.S.C. 
4548) the following new section: 
‘‘SEC. 1329. ANNUAL REPORTS ON AFFORDABLE HOUSING 
STOCK. 
‘‘(a) IN GENERAL.—To obtain information helpful in 
applying the formula under section 1337(c)(2) for the af-
fordable housing program under such section and for other 
appropriate uses, the regulated entities shall conduct, or 
provide for the conducting of, a study on an annual basis 
to determine the levels of affordable housing inventory, and 
the changes in such levels, in communities throughout the 
United States. 
‘‘(b) CONTENTS.—The annual study under this section 
shall determine, for the United States, each State, and each 
community within each State—
242 
‘‘(1) IN GENERAL.—Upon request by the Direc-
tor, an enterprise shall provide to the Director, in a 
form determined by the Director, data the Director 
may review to determine whether there exist dispari-
ties in interest rates charged on mortgages to bor-
rowers who are minorities as compared with com-
parable mortgages to borrowers of similar credit-
worthiness who are not minorities. 
‘‘(2) REMEDIAL
ACTIONS
UPON
PRELIMINARY 
FINDING.—Upon a preliminary finding by the Direc-
tor that a pattern of disparities in interest rates with 
respect to any lender or lenders exists pursuant to the 
data provided by an enterprise in paragraph (1), the 
Director shall— 
‘‘(A) refer the preliminary finding to the 
appropriate regulatory or enforcement agency for 
further review; 
‘‘(B) require the enterprise to submit addi-
tional data with respect to any lender or lenders, 
as appropriate and to the extent practicable, to 
the Director who shall submit any such addi-
tional data to the regulatory or enforcement 
agency for appropriate action; and
243 
‘‘(C) require the enterprise to undertake re-
medial actions, as appropriate, pursuant to sec-
tion 1325(5) (12 U.S.C. 4545(5)). 
‘‘(3) ANNUAL REPORT TO CONGRESS.—The Di-
rector shall submit to the Committee on Financial 
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate a report describing the actions taken, and 
being taken, by the Director to carry out this sub-
section. No such report shall identify any lender or 
lenders who have not been found to have engaged in 
discriminatory lending practices pursuant to a final 
adjudication on the record, and after opportunity for 
an administrative hearing, in accordance with sub-
chapter II of chapter 5 of title 5, United States Code. 
‘‘(4) PROTECTION
OF
IDENTITY
OF
INDIVID-
UALS.—In carrying out this subsection, the Director 
shall ensure that no property-related or financial in-
formation that would enable a borrower to be identi-
fied shall be made public. 
‘‘(c) TIMING.—The Director shall establish an annual 
deadline by which the Director shall establish the annual 
housing goals under this subpart for each year, taking into 
consideration the need for the enterprises to reasonably and 
sufficiently plan their operations and activities in advance,
244 
including operations and activities necessary to meet such 
annual goals. 
‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish an-
nual goals for the purchase by each enterprise of conven-
tional, conforming, single-family, purchase money mort-
gages financing owner-occupied and rental housing for each 
of the following categories of families: 
‘‘(1) Low-income families. 
‘‘(2) Families that reside in low-income areas. 
‘‘(3) Very low-income families. 
‘‘(b) REFINANCE SUBGOAL.— 
‘‘(1) IN GENERAL.—The Director shall establish 
a separate subgoal within each goal under subsection 
(a)(1) for the purchase by each enterprise of mort-
gages for low-income families on single family hous-
ing given to pay off or prepay an existing loan se-
cured by the same property. The Director shall, for 
each year, determine whether each enterprise has com-
plied with the subgoal under this subsection in the 
same manner provided under this section for deter-
mining compliance with the housing goals. 
‘‘(2) ENFORCEMENT.—For purposes of section 
1336, the subgoal established under paragraph (1) of 
this subsection shall be considered to be a housing
245 
goal established under this section. Such subgoal shall 
not be enforceable under any other provision of this 
title (including subpart C of this part) other than sec-
tion 1336 or under any provision of the Federal Na-
tional Mortgage Association Charter Act or the Fed-
eral Home Loan Mortgage Corporation Act. 
‘‘(c) DETERMINATION OF COMPLIANCE.—The Director 
shall determine, for each year that the housing goals under 
this section are in effect pursuant to section 1331(a), wheth-
er each enterprise has complied with the single-family hous-
ing goals established under this section for such year. An 
enterprise shall be considered to be in compliance with such 
a goal for a year only if, for each of the types of families 
described in subsection (a), the percentage of the number 
of conventional, conforming, single-family, owner-occupied 
or rental, as applicable, purchase money mortgages pur-
chased by each enterprise in such year that serve such fami-
lies, meets or exceeds the target for the year for such type 
of family that is established under subsection (d). 
‘‘(d) ANNUAL TARGETS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for each of the types of families described 
in subsection (a), the target under this subsection for 
a year shall be the average percentage, for the three 
years that most recently precede such year and for
246 
which information under the Home Mortgage Disclo-
sure Act of 1975 is publicly available, of the number 
of conventional, conforming, single-family, owner-oc-
cupied or rental, as applicable, purchase money mort-
gages originated in such year that serves such type of 
family, as determined by the Director using the infor-
mation obtained and determined pursuant to para-
graphs (3) and (4). 
‘‘(2) AUTHORITY TO INCREASE TARGETS.— 
‘‘(A) IN GENERAL.—The Director may, for 
any year, establish by regulation, for any or all 
of the types of families described in subsection 
(a), percentage targets that are higher than the 
percentages for such year determined pursuant to 
paragraph (1), to reflect expected changes in 
market performance related to such information 
under the Home Mortgage Disclosure Act of 
1975. 
‘‘(B) FACTORS.—In establishing any targets 
pursuant to subparagraph (A), the Director shall 
consider the following factors: 
‘‘(i) National housing needs. 
‘‘(ii) Economic, housing, and demo-
graphic conditions.
256 
‘‘(A) section 302(b)(2) of the Federal Na-
tional Mortgage Association Charter Act; or 
‘‘(B) section 305(a)(2) of the Federal Home 
Loan Mortgage Corporation Act.’’. 
SEC. 338. DUTY TO SERVE UNDERSERVED MARKETS. 
(a) ESTABLISHMENT AND EVALUATION OF PERFORM-
ANCE.—Section 1335 of the Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4565) is amended— 
(1) in the section heading, by inserting ‘‘DUTY 
TO SERVE UNDERSERVED MARKETS AND’’ before 
‘‘OTHER’’; 
(2) by striking subsection (b); 
(3) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘and to carry out the duty under 
subsection (a) of this section’’ before ‘‘, each en-
terprise shall’’; 
(B) in paragraph (3), by inserting ‘‘and’’ 
after the semicolon at the end; 
(C) in paragraph (4), by striking ‘‘; and’’ 
and inserting a period; 
(D) by striking paragraph (5); and 
(E) by redesignating such subsection as sub-
section (b);
257 
(4) by inserting before subsection (b) (as so re-
designated by paragraph (3)(E) of this subsection) the 
following new subsection: 
‘‘(a) DUTY TO SERVE UNDERSERVED MARKETS.— 
‘‘(1) DUTY.—In accordance with the purpose of 
the enterprises under section 301(3) of the Federal 
National Mortgage Association Charter Act (12 
U.S.C. 1716) and section 301(b)(3) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1451 note) to undertake activities relating to mort-
gages on housing for very low-, low-, and moderate- 
income families involving a reasonable economic re-
turn that may be less than the return earned on other 
activities, each enterprise shall have the duty to in-
crease the liquidity of mortgage investments and im-
prove the distribution of investment capital available 
for mortgage financing for underserved markets. 
‘‘(2) UNDERSERVED
MARKETS.—To meet its 
duty under paragraph (1), each enterprise shall com-
ply with the following requirements with respect to 
the following underserved markets: 
‘‘(A) MANUFACTURED
HOUSING.—The en-
terprise shall lead the industry in developing 
loan products and flexible underwriting guide-
lines to facilitate a secondary market for mort-
258 
gages on manufactured homes for very low-, low- 
, and moderate-income families. 
‘‘(B) AFFORDABLE
HOUSING
PRESERVA-
TION.—The enterprise shall lead the industry in 
developing loan products and flexible under-
writing guidelines to facilitate a secondary mar-
ket to preserve housing affordable to very low-, 
low-, and moderate-income families, including 
housing projects subsidized under— 
‘‘(i) the project-based and tenant-based 
rental assistance programs under section 8 
of the United States Housing Act of 1937; 
‘‘(ii) the program under section 236 of 
the National Housing Act; 
‘‘(iii) the below-market interest rate 
mortgage program under section 221(d)(4) 
of the National Housing Act; 
‘‘(iv) the supportive housing for the el-
derly program under section 202 of the 
Housing Act of 1959; 
‘‘(v) the supportive housing program 
for persons with disabilities under section 
811 of the Cranston-Gonzalez National Af-
fordable Housing Act;
259 
‘‘(vi) the programs under title IV of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361 et seq.), but only perma-
nent supportive housing projects subsidized 
under such programs; and 
‘‘(vii) the rural rental housing pro-
gram under section 515 of the Housing Act 
of 1949. 
‘‘(C) RURAL
AND
OTHER
UNDERSERVED 
MARKETS.—The enterprise shall lead the indus-
try in developing loan products and flexible un-
derwriting guidelines to facilitate a secondary 
market for mortgages on housing for very low-, 
low-, and moderate-income families in rural 
areas, and for mortgages for housing for any 
other underserved market for very low-, low-, and 
moderate-income families that the Secretary 
identifies as lacking adequate credit through con-
ventional lending sources. Such underserved 
markets may be identified by borrower type, 
market segment, or geographic area.’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(c) EVALUATION AND REPORTING OF COMPLIANCE.—
260 
‘‘(1) IN
GENERAL.—Not later than 6 months 
after the effective date under section 365 of the Fed-
eral Housing Finance Reform Act of 2008, the Direc-
tor shall establish a manner for evaluating whether, 
and the extent to which, the enterprises have complied 
with the duty under subsection (a) to serve under-
served markets and for rating the extent of such com-
pliance. Using such method, the Director shall, for 
each year, evaluate such compliance and rate the per-
formance of each enterprise as to extent of compli-
ance. The Director shall include such evaluation and 
rating for each enterprise for a year in the report for 
that year submitted pursuant to section 1319B(a). 
‘‘(2) SEPARATE EVALUATIONS.—In determining 
whether an enterprise has complied with the duty re-
ferred to in paragraph (1), the Director shall sepa-
rately evaluate whether the enterprise has complied 
with such duty with respect to each of the underserved 
markets identified in subsection (a), taking into con-
sideration— 
‘‘(A) the development of loan products and 
more flexible underwriting guidelines; 
‘‘(B) the extent of outreach to qualified loan 
sellers in each of such underserved markets; and
261 
‘‘(C) the volume of loans purchased in each 
of such underserved markets. 
‘‘(3) MANUFACTURED HOUSING MARKET.—In de-
termining whether an enterprise has complied with 
the duty under subparagraph (A) of subsection (a)(2), 
the Director may consider loans secured by both real 
and personal property.’’. 
(b) ENFORCEMENT.—Subsection (a) of section 1336 of 
the Housing and Community Development Act of 1992 (12 
U.S.C. 4566(a)) is amended— 
(1) in paragraph (1), by inserting ‘‘and with the 
duty under section 1335(a) of each enterprise with re-
spect to underserved markets,’’ before ‘‘as provided in 
this section’’; and 
(2) by adding at the end of such subsection, as 
amended by the preceding provisions of this subtitle, 
the following new paragraph: 
‘‘(4) ENFORCEMENT OF DUTY TO PROVIDE MORT-
GAGE CREDIT TO UNDERSERVED MARKETS.—The duty 
under section 1335(a) of each enterprise to serve un-
derserved markets (as determined in accordance with 
section 1335(c)) shall be enforceable under this section 
to the same extent and under the same provisions that 
the housing goals established under this subpart are 
enforceable. Such duty shall not be enforceable under
266 
edies as set forth in paragraph (7) of this sub-
section.’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘CONTENTS.—Each 
housing plan’’ and inserting ‘‘HOUSING 
PLAN.—If the Director requires a housing 
plan under this section, such a plan’’; and 
(ii) in subparagraph (B), by inserting 
‘‘and changes in its operations’’ after ‘‘im-
provements’’; 
(C) in paragraph (3)— 
(i) by inserting ‘‘comply with any re-
medial action or’’ before ‘‘submit a housing 
plan’’; and 
(ii) by striking ‘‘under subsection 
(b)(3) that a housing plan is required’’; 
(D) in paragraph (4), by striking the first 
two sentences and inserting the following: ‘‘The 
Director shall review each submission by an en-
terprise, including a housing plan submitted 
under this subsection, and not later than 30 days 
after submission, approve or disapprove the plan 
or other action. The Director may extend the pe-
riod for approval or disapproval for a single ad-
267 
ditional 30-day period if the Director determines 
such extension necessary.’’; and 
(E) by adding at the end the following new 
paragraph: 
‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO 
MEET
GOALS.—In addition to ordering a housing 
plan under this section, issuing cease and desist or-
ders under section 1341, and ordering civil money 
penalties under section 1345, the Director may seek 
other actions when an enterprise fails to meet a goal, 
and exercise appropriate enforcement authority avail-
able to the Director under this Act to prohibit the en-
terprise from initially offering any product (as such 
term is defined in section 1321(f)) or engaging in any 
new activities, services, undertakings, and offerings 
and to order the enterprise to suspend products and 
activities, services, undertakings, and offerings pend-
ing its achievement of the goal.’’. 
SEC. 340. AFFORDABLE HOUSING FUND. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking sections 1337 
and 1338 (12 U.S.C. 4562 note) and inserting the following 
new section:
268 
‘‘SEC. 1337. AFFORDABLE HOUSING FUND. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—The Director, 
in consultation with the Secretary of Housing and Urban 
Development, shall establish and manage an affordable 
housing fund in accordance with this section, which shall 
be funded with amounts allocated by the enterprises under 
subsection (b). The purpose of the affordable housing fund 
shall be to provide formula grants to grantees for use— 
‘‘(1) to increase homeownership for extremely 
low-and very low-income families; 
‘‘(2) to increase investment in housing in low-in-
come areas, and areas designated as qualified census 
tracts or an area of chronic economic distress pursu-
ant to section 143(j) of the Internal Revenue Code of 
1986 (26 U.S.C. 143(j)); 
‘‘(3) to increase and preserve the supply of rental 
and owner-occupied housing for extremely low- and 
very low-income families; 
‘‘(4) to increase investment in public infrastruc-
ture development in connection with housing assisted 
under this section; and 
‘‘(5) to leverage investments from other sources 
in affordable housing and in public infrastructure de-
velopment in connection with housing assisted under 
this section. 
‘‘(b) ALLOCATION OF AMOUNTS BY ENTERPRISES.—
269 
‘‘(1) IN GENERAL.—In accordance with regula-
tions issued by the Director under subsection (m) and 
subject to paragraph (2) of this subsection and sub-
section (i)(5), each enterprise shall allocate to the af-
fordable housing fund established under subsection 
(a), in each of the years 2008 through 2012, an 
amount equal to 1.2 basis points for each dollar of the 
average total mortgage portfolio of the enterprise dur-
ing the preceding year. 
‘‘(2) SUSPENSION OF CONTRIBUTIONS.—The Di-
rector shall temporarily suspend the allocation under 
paragraph (1) by an enterprise to the affordable hous-
ing fund upon a finding by the Director that such al-
locations— 
‘‘(A) are contributing, or would contribute, 
to the financial instability of the enterprise; 
‘‘(B) are causing, or would cause, the enter-
prise to be classified as undercapitalized; or 
‘‘(C) are preventing, or would prevent, the 
enterprise from successfully completing a capital 
restoration plan under section 1369C. 
‘‘(3) 5-YEAR SUNSET AND REPORT.— 
‘‘(A) SUNSET.—The enterprises shall not be 
required to make allocations to the affordable 
housing fund in 2012 or in any year thereafter.
270 
‘‘(B) 
REPORT
ON
PROGRAM
CONTINU-
ANCE.—Not later than June 30, 2011, the Direc-
tor shall submit to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report making recommenda-
tions on whether the program under this section, 
including the requirement for the enterprises to 
make allocations to the affordable housing fund, 
should be extended and on any modifications for 
the program. 
‘‘(4) PROHIBITION OF PASS-THROUGH OF COST 
OF ALLOCATIONS.—The Director shall, by regulation, 
prohibit each enterprise from redirecting such costs, 
through increased charges or fees, or decreased pre-
miums, or in any other manner, to the originators of 
mortgages purchased or securitized by the enterprise. 
‘‘(c) AFFORDABLE HOUSING NEEDS FORMULAS.— 
‘‘(1) ALLOCATION FOR 2008.— 
‘‘(A) ALLOCATION PERCENTAGES FOR LOU-
ISIANA AND MISSISSIPPI.—For purposes of sub-
section (d)(1)(A), the allocation percentages for 
2008 for the grantees under this section for such 
year shall be as follows:
271 
‘‘(i) The allocation percentage for the 
Louisiana Housing Finance Agency shall be 
75 percent. 
‘‘(ii) The allocation percentage for the 
Mississippi Development Authority shall be 
25 percent. 
‘‘(B) USE IN DISASTER AREAS.—Affordable 
housing grant amounts for 2008 shall be used 
only as provided in subsection (g) only for such 
eligible activities in areas that were subject to a 
declaration by the President of a major disaster 
or emergency under the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.) in connection with Hurri-
cane Katrina or Rita of 2005. 
‘‘(2) 
ALLOCATION
FORMULA
FOR
OTHER 
YEARS.—The Secretary of Housing and Urban Devel-
opment shall, by regulation, establish a formula to al-
locate, among the States (as such term is defined in 
section 1303) and federally recognized Indian tribes, 
the amounts provided by the enterprises in each year 
referred to subsection (b)(1), other than 2008, to the 
affordable housing fund established under this section. 
The formula shall be based on the following factors, 
with respect to each State and tribe:
274 
ee, which shall be the amount determined for such 
grantee— 
‘‘(A) for 2008, by applying the allocation 
percentages under subparagraph (A) of sub-
section (c)(1) to the sum of the total amounts al-
located by the enterprises to the affordable hous-
ing fund for such year, less any amounts used 
pursuant to subsection (i)(1); and 
‘‘(B) for any other year referred to in sub-
section (b)(1) (other than 2008), by applying the 
formula established pursuant to paragraph (2) of 
subsection (c) to the sum of the total amounts al-
located by the enterprises to the affordable hous-
ing fund for such year and any recaptured 
amounts available pursuant to subsection (i)(4), 
less any amounts used pursuant to subsection 
(i)(1). 
‘‘(2) NOTICE.—In each year referred to in sub-
section (b)(1), not later than 60 days after the date 
that the Director determines the amounts described in 
paragraph (1) to be available for affordable housing 
fund grants to grantees in such year, the Director 
shall cause to be published in the Federal Register a 
notice that such amounts shall be so available. 
‘‘(3) GRANT AMOUNT.—
275 
‘‘(A) IN GENERAL.—For each year referred 
to in subsection (b)(1), the Director shall make 
a grant from amounts in the affordable housing 
fund to each grantee in an amount that is, ex-
cept as provided in subparagraph (B), equal to 
the formula amount under this section for the 
grantee. A grantee may designate a State hous-
ing finance agency, housing and community de-
velopment entity, tribally designated housing en-
tity (as such term is defined in section 4 of the 
Native American Housing Assistance and Self- 
Determination Act of 1997 (25 U.S.C. 4103)) or 
other qualified instrumentality of the grantee to 
receive such grant amounts. 
‘‘(B) REDUCTION FOR FAILURE TO OBTAIN 
RETURN OF MISUSED FUNDS.—If in any year a 
grantee fails to obtain reimbursement or return 
of the full amount required under subsection 
(j)(1)(B) to be reimbursed or returned to the 
grantee during such year— 
‘‘(i) except as provided in clause (ii)— 
‘‘(I) the amount of the grant for 
the grantee for the succeeding year, as 
determined pursuant to subparagraph 
(A), shall be reduced by the amount by
276 
which such amounts required to be re-
imbursed 
or 
returned 
exceed 
the 
amount actually reimbursed or re-
turned; and 
‘‘(II) the amount of the grant for 
the succeeding year for each other 
grantee whose grant is not reduced 
pursuant to subclause (I) shall be in-
creased by the amount determined by 
applying the formula established pur-
suant to subsection (c)(2) to the total 
amount of all reductions for all grant-
ees for such year pursuant to subclause 
(I); or 
‘‘(ii) in any case in which such failure 
to obtain reimbursement or return occurs 
during a year immediately preceding a 
year in which grants under this subsection 
will not be made, the grantee shall pay to 
the Director for reallocation among the 
other grantees an amount equal to the 
amount of the reduction for the grantee that 
would otherwise apply under clause (i)(I). 
‘‘(e) GRANTEE ALLOCATION PLANS.—
277 
‘‘(1) IN GENERAL.—For each year that a grantee 
receives affordable housing fund grant amounts, the 
grantee shall establish an allocation plan in accord-
ance with this subsection, which shall be a plan for 
the distribution of such grant amounts of the grantee 
for such year that— 
‘‘(A) is based on priority housing needs, as 
determined by the grantee in accordance with the 
regulations 
established 
under 
subsection 
(m)(2)(C); 
‘‘(B) complies with subsection (f); and 
‘‘(C) includes performance goals, bench-
marks, and timetables for the grantee for the pro-
duction, preservation, and rehabilitation of af-
fordable rental and homeownership housing with 
such grant amounts that comply with the re-
quirements established by the Director pursuant 
to subsection (m)(2)(F). 
‘‘(2) ESTABLISHMENT.—In establishing an allo-
cation plan, a grantee shall notify the public of the 
establishment of the plan, provide an opportunity for 
public comments regarding the plan, consider any 
public comments received, and make the completed 
plan available to the public.
278 
‘‘(3) CONTENTS.—An allocation plan of a grant-
ee shall set forth the requirements for eligible recipi-
ents under subsection (h) to apply to the grantee to 
receive assistance from affordable housing fund grant 
amounts, including a requirement that each such ap-
plication include— 
‘‘(A) a description of the eligible activities 
to be conducted using such assistance; and 
‘‘(B) a certification by the eligible recipient 
applying for such assistance that any housing 
units assisted with such assistance will comply 
with the requirements under this section. 
‘‘(f) SELECTION OF ACTIVITIES FUNDED USING AF-
FORDABLE HOUSING FUND GRANT AMOUNTS.—Affordable 
housing fund grant amounts of a grantee may be used, or 
committed for use, only for activities that— 
‘‘(1) are eligible under subsection (g) for such 
use; 
‘‘(2) comply with the applicable allocation plan 
under subsection (e) of the grantee; and 
‘‘(3) are selected for funding by the grantee in 
accordance with the process and criteria for such se-
lection established pursuant to subsection (m)(2)(C).
279 
‘‘(g) ELIGIBLE ACTIVITIES.—Affordable housing fund 
grant amounts of a grantee shall be eligible for use, or for 
commitment for use, only for assistance for— 
‘‘(1) the production, preservation, and rehabili-
tation of rental housing, including housing under the 
programs identified in section 1335(a)(2)(B), except 
that such grant amounts may be used for the benefit 
only of extremely low- and very low-income families; 
‘‘(2) the production, preservation, and rehabili-
tation of housing for homeownership, including such 
forms as downpayment assistance, closing cost assist-
ance, and assistance for interest-rate buy-downs, 
that— 
‘‘(A) is available for purchase only for use 
as a principal residence by families that qualify 
both as— 
‘‘(i) extremely low- and very-low in-
come families at the times described in sub-
paragraphs (A) through (C) of section 
215(b)(2) of the Cranston-Gonzalez National 
Affordable 
Housing 
Act 
(42 
U.S.C. 
12745(b)(2)); and 
‘‘(ii) first-time homebuyers, as such 
term is defined in section 104 of the Cran-
ston-Gonzalez National Affordable Housing
283 
‘‘(C) provide forms of assistance, such as 
downpayments, closing costs, or interest-rate 
buy-downs, for purchasers; or 
‘‘(D) construct related public infrastructure 
development activities in connection with such 
housing activities; 
‘‘(2) demonstrates the ability and financial ca-
pacity to undertake, comply, and manage the eligible 
activity; 
‘‘(3) demonstrates its familiarly with the re-
quirements of any other Federal, State or local hous-
ing program that will be used in conjunction with 
such grant amounts to ensure compliance with all ap-
plicable requirements and regulations of such pro-
grams; and 
‘‘(4) makes such assurances to the grantee as the 
Director shall, by regulation, require to ensure that 
the recipient will comply with the requirements of 
this section during the entire period that begins upon 
selection of the recipient to receive such grant 
amounts and ending upon the conclusion of all activi-
ties under subsection (g) that are engaged in by the 
recipient and funded with such grant amounts. 
‘‘(i) LIMITATIONS ON USE.—
284 
‘‘(1) REQUIRED AMOUNT FOR REFCORP.—Of the 
aggregate amount allocated pursuant to subsection (b) 
in each year to the affordable housing fund, 25 per-
cent shall be used as provided in section 21B(f)(2)(E) 
of the Federal Home Loan Bank Act (12 U.S.C. 
1441b(f)(2)(E)). 
‘‘(2) REQUIRED AMOUNT FOR HOMEOWNERSHIP 
ACTIVITIES.—Of the aggregate amount of affordable 
housing fund grant amounts provided in each year to 
a grantee, not less than 10 percent shall be used for 
activities under paragraph (2) of subsection (g). 
‘‘(3) MAXIMUM
AMOUNT
FOR
PUBLIC
INFRA-
STRUCTURE
DEVELOPMENT
ACTIVITIES
IN
CONNEC-
TION
WITH
AFFORDABLE
HOUSING
ACTIVITIES.—Of 
the aggregate amount of affordable housing fund 
grant amounts provided in each year to a grantee, 
not more than 12.5 percent may be used for activities 
under paragraph (3) of subsection (g). 
‘‘(4) DEADLINE FOR COMMITMENT OR USE.—Any 
affordable housing fund grant amounts of a grantee 
shall be used or committed for use within two years 
of the date of that such grant amounts are made 
available to the grantee. The Director shall recapture 
into the affordable housing fund any such amounts 
not so used or committed for use and allocate such
285 
amounts under subsection (d)(1) in the first year 
after such recapture. 
‘‘(5) USE OF RETURNS.—The Director shall, by 
regulation provide that any return on a loan or other 
investment of any affordable housing fund grant 
amounts of a grantee shall be treated, for purposes of 
availability to and use by the grantee, as affordable 
housing fund grant amounts. 
‘‘(6) PROHIBITED USES.—The Director shall— 
‘‘(A) by regulation, set forth prohibited uses 
of affordable housing fund grant amounts, which 
shall include use for— 
‘‘(i) political activities; 
‘‘(ii) advocacy; 
‘‘(iii) lobbying, whether directly or 
through other parties; 
‘‘(iv) counseling services; 
‘‘(v) travel expenses; and 
‘‘(vi) preparing or providing advice on 
tax returns; 
‘‘(B) by regulation, provide that, except as 
provided in subparagraph (C), affordable hous-
ing fund grant amounts of a grantee may not be 
used for administrative, outreach, or other costs 
of—
286 
‘‘(i) the grantee; or 
‘‘(ii) any recipient of such grant 
amounts; and 
‘‘(C) by regulation, limit the amount of any 
affordable housing fund grant amounts of the 
grantee for a year that may be used for adminis-
trative costs of the grantee of carrying out the 
program required under this section to a per-
centage of such grant amounts of the grantee for 
such year, which may not exceed 10 percent. 
‘‘(7) PROHIBITION OF CONSIDERATION OF USE 
FOR MEETING HOUSING GOALS OR DUTY TO SERVE.— 
In determining compliance with the housing goals 
under this subpart and the duty to serve underserved 
markets under section 1335, the Director may not 
consider any affordable housing fund grant amounts 
used under this section for eligible activities under 
subsection (g). The Director shall give credit toward 
the achievement of such housing goals and such duty 
to serve underserved markets to purchases by the en-
terprises of mortgages for housing that receives fund-
ing from affordable housing fund grant amounts, but 
only to the extent that such purchases by the enter-
prises are funded other than with such grant 
amounts.
287 
‘‘(8) ACCEPTABLE
IDENTIFICATION
REQUIRE-
MENT FOR OCCUPANCY OR ASSISTANCE.— 
‘‘(A) IN
GENERAL.—Any assistance pro-
vided 
with 
any 
affordable 
housing 
grant 
amounts may not be made available to, or on be-
half of, any individual or household unless the 
individual provides, or, in the case of a house-
hold, all adult members of the household provide, 
personal identification in one of the following 
forms: 
‘‘(i) SOCIAL
SECURITY
CARD
WITH 
PHOTO IDENTIFICATION CARD OR REAL ID 
ACT IDENTIFICATION.— 
‘‘(I) A social security card accom-
panied by a photo identification card 
issued by the Federal Government or a 
State Government; or 
‘‘(II) A driver’s license or identi-
fication card issued by a State in the 
case of a State that is in compliance 
with title II of the REAL ID Act of 
2005 (title II of division B of Public 
Law 109–13; 49 U.S.C. 30301 note). 
‘‘(ii) PASSPORT.—A passport issued by 
the United States or a foreign government.
288 
‘‘(iii) USCIS PHOTO IDENTIFICATION 
CARD.—A photo identification card issued 
by the Secretary of Homeland Security 
(acting through the Director of the United 
States Citizenship and Immigration Serv-
ices). 
‘‘(B) REGULATIONS.—The Director shall, by 
regulation, require that each grantee and recipi-
ent take such actions as the Director considers 
necessary to ensure compliance with the require-
ments of subparagraph (A). 
‘‘(j) ACCOUNTABILITY OF RECIPIENTS AND GRANT-
EES.— 
‘‘(1) RECIPIENTS.— 
‘‘(A) TRACKING OF FUNDS.—The Director 
shall— 
‘‘(i) require each grantee to develop 
and maintain a system to ensure that each 
recipient of assistance from affordable hous-
ing fund grant amounts of the grantee uses 
such amounts in accordance with this sec-
tion, the regulations issued under this sec-
tion, and any requirements or conditions 
under which such amounts were provided; 
and
289 
‘‘(ii) establish minimum requirements 
for agreements, between the grantee and re-
cipients, regarding assistance from the af-
fordable housing fund grant amounts of the 
grantee, which shall include— 
‘‘(I) appropriate continuing fi-
nancial and project reporting, record 
retention, and audit requirements for 
the duration of the grant to the recipi-
ent to ensure compliance with the limi-
tations and requirements of this section 
and the regulations under this section; 
and 
‘‘(II) any other requirements that 
the Director determines are necessary 
to ensure appropriate grant adminis-
tration and compliance. 
‘‘(B) MISUSE OF FUNDS.— 
‘‘(i) 
REIMBURSEMENT
REQUIRE-
MENT.—If any recipient of assistance from 
affordable housing fund grant amounts of a 
grantee is determined, in accordance with 
clause (ii), to have used any such amounts 
in a manner that is materially in violation 
of this section, the regulations issued under