I 
114TH CONGRESS 
1ST SESSION H. R. 1673 
To amend the Federal Housing Enterprises Financial Safety and Soundness 
Act of 1992 to establish a secondary reserve fund for a housing enter-
prise under conservatorship to protect taxpayers against loss in the 
event of a housing downturn, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 26, 2015 
Mrs. BLACKBURN introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 to establish a secondary 
reserve fund for a housing enterprise under conservator-
ship to protect taxpayers against loss in the event of 
a housing downturn, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Enterprise Secondary 
Reserve Taxpayer Protection and Government Account-
ability Act of 2015’’. 
VerDate Sep 11 2014 
01:08 Apr 03, 2015
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1673.IH
H1673
SSpencer on DSK4SPTVN1PROD with BILLS
SEC. 2. SECONDARY RESERVE. 
Section 1362 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 U.S.C. 
4612) is amended— 
(1) by striking the section designation and 
heading and inserting the following: 
‘‘SEC. 1362. MINIMUM CAPITAL LEVELS AND SECONDARY 
RESERVE.’’; 
(2) by redesignating subsections (e) and (f) as 
subsections (f) and (g), respectively; and 
(3) by inserting after subsection (d) the fol-
lowing new subsection: 
‘‘(e) SECONDARY RESERVE.— 
‘‘(1) ESTABLISHMENT.—Notwithstanding any 
other provision of law, rule, regulation, order, or 
agreement, the Director shall, by regulation, estab-
lish for any enterprise operating in conservatorship 
pursuant to section 1367 a secondary reserve fund 
and shall deposit in such fund from any revenues of 
the enterprise an amount equal to the amounts enu-
merated under subsection (a) for the enterprise. 
‘‘(2) MAINTENANCE.—Amounts in the sec-
ondary reserve fund shall be held in escrow by the 
enterprise until— 
‘‘(A) the Director uses such amounts pur-
suant to paragraph (3); or 
VerDate Sep 11 2014 
01:08 Apr 03, 2015
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1673.IH
H1673
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(B) the Director abolishes the secondary 
reserve fund pursuant to paragraph (4). 
‘‘(3) AVAILABILITY OF AMOUNTS.—If the Di-
rector determines, in accordance with regulations 
issued under paragraph (5), that losses of an enter-
prise operating in conservatorship pursuant to sec-
tion 1367 will exceed amounts available for the en-
terprise under subsection (a), (c), (d), or (f), the Di-
rector shall make a determination, in accordance 
with such regulation, whether to use funds held in 
the secondary reserve for the enterprise. 
‘‘(4) ABOLISHMENT.—Upon the dissolution of 
the conservatorship of an enterprise, the Director 
shall abolish any secondary reserve established under 
paragraph (1) for the enterprise and amounts re-
maining in such reserve upon such abolishment shall 
revert to meet capital requirements under sub-
sections (a), (c), (d), and (f) and then to earnings 
of the enterprise. 
‘‘(5) REGULATIONS.—The Director shall issue 
regulations establishing— 
‘‘(A) standards and procedures for the es-
tablishment of a secondary reserve under para-
graph (1); 
VerDate Sep 11 2014 
02:00 Apr 03, 2015
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1673.IH
H1673
SSpencer on DSK4SPTVN1PROD with BILLS
‘‘(B) standards and procedures that the 
Director will use to make the determinations 
under paragraph (3); and 
‘‘(C) procedures for abolishment of a sec-
ondary reserve under paragraph (4). 
‘‘(6) TREATMENT OF SECONDARY RESERVE.— 
Any secondary reserve established under this Act for 
an enterprise shall not be considered capital, a cap-
ital reserve, or otherwise an asset of the enterprise, 
other than as part of a capital restoration plan for 
the enterprise approved under section 1369C, during 
the pendency of a conservatorship for the enter-
prise.’’. 
SEC. 3. EFFECTIVE DATE. 
The amendments made by section 2 of this Act shall 
take effect upon the expiration of the 90-day period begin-
ning on the date of the enactment of this Act and the 
Director of the Federal Housing Finance Agency shall 
issue the regulations required under section 1362(e)(5) of 
the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992, added by the amendment made 
by such section 2, before the expiration of such period. 
Æ 
VerDate Sep 11 2014 
01:08 Apr 03, 2015
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H1673.IH
H1673
SSpencer on DSK4SPTVN1PROD with BILLS