tees of Congress and the public audited financial 
statements prepared in accordance with generally ac-
cepted accounting principles, and the Comptroller 
General shall annually audit such statements in ac-
cordance with generally accepted auditing standards. 
The Treasury shall reimburse the Government Ac-
countability Office for the full cost of any such audit 
as billed therefore by the Comptroller General. Such 
reimbursements shall be credited to the appropria-
tion account ‘Salaries and Expenses, Government 
Accountability Office’ current when payment is re-
ceived and remain available until expended. The fi-
nancial statements under this paragraph shall be on 
the fiscal year basis prescribed under section 1102 
of title 31, United States Code. 
‘‘(2) AUTHORITY.—The Comptroller General 
may audit the programs, activities, receipts, expendi-
tures, and financial transactions of the Secretary 
and any agents and representatives of the Secretary 
(as related to the agent or representative’s activities 
on behalf of or under the authority of the Sec-
retary), including vehicles established by the Sec-
retary under this subtitle. 
‘‘(3) CORRECTIVE RESPONSES TO AUDIT PROB-
LEMS.—The Secretary shall— 
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‘‘(A) take action to address deficiencies 
identified by the Comptroller General or other 
auditor engaged by the Secretary; or 
‘‘(B) certify to appropriate committees of 
Congress that no action is necessary or appro-
priate. 
‘‘(c) INTERNAL CONTROL.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish and maintain an effective system of internal 
control, consistent with the standards prescribed 
under section 3512(c) of title 31, United States 
Code, that provides reasonable assurance of— 
‘‘(A) the effectiveness and efficiency of op-
erations, including the use of the resources of 
the Secretary; 
‘‘(B) the reliability of financial reporting, 
including financial statements and other reports 
for internal and external use; and 
‘‘(C) compliance with applicable laws and 
regulations. 
‘‘(2) REPORTING.—In conjunction with each 
annual financial statement issued under this section, 
the Secretary shall— 
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‘‘(A) state the responsibility of manage-
ment for establishing and maintaining adequate 
internal control over financial reporting; and 
‘‘(B) state its assessment, as of the end of 
the most recent year covered by such financial 
statement of the Secretary, of the effectiveness 
of the internal control over financial reporting. 
‘‘(d) SHARING
OF INFORMATION.—Any report or 
audit required under this section shall also be submitted 
to the Congressional Oversight Panel established under 
section 125. 
‘‘(e) TERMINATION.—Any oversight, reporting, or 
audit requirement under this section shall terminate on 
the later of— 
‘‘(1) the date that the last asset acquired by the 
Secretary under section; or 
‘‘(2) the date of expiration of the last insurance 
contract issued under section 152. 
‘‘SEC. 164. JUDICIAL REVIEW AND RELATED MATTERS. 
‘‘(a) JUDICIAL REVIEW.— 
‘‘(1) STANDARD.—Actions by the Secretary 
pursuant to the authority of this subtitle shall be 
subject to chapter 7 of title 5, United States Code, 
including that such final actions shall be held unlaw-
ful and set aside if found to be arbitrary, capricious, 
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an abuse of discretion, or not in accordance with 
law. 
‘‘(2) LIMITATIONS ON EQUITABLE RELIEF.— 
‘‘(A) INJUNCTION.—No injunction or other 
form of equitable relief shall be issued against 
the Secretary for actions pursuant to section 
151, 152, 156, and 159, other than to remedy 
a violation of the Constitution. 
‘‘(B) TEMPORARY RESTRAINING ORDER.— 
Any request for a temporary restraining order 
against the Secretary for actions pursuant to 
this subtitle shall be considered and granted or 
denied by the court within 3 days of the date 
of the request. 
‘‘(C) PRELIMINARY INJUNCTION.—Any re-
quest for a preliminary injunction against the 
Secretary for actions pursuant to this subtitle 
shall be considered and granted or denied by 
the court on an expedited basis consistent with 
the provisions of rule 65(b)(3) of the Federal 
Rules of Civil Procedure, or any successor 
thereto. 
‘‘(D) PERMANENT INJUNCTION.—Any re-
quest for a permanent injunction against the 
Secretary for actions pursuant to this subtitle 
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shall be considered and granted or denied by 
the court on an expedited basis. Whenever pos-
sible, the court shall consolidate trial on the 
merits with any hearing on a request for a pre-
liminary injunction, consistent with the provi-
sions of rule 65(a)(2) of the Federal Rules of 
Civil Procedure, or any successor thereto. 
‘‘(3) LIMITATION
ON
ACTIONS
BY
PARTICI-
PATING COMPANIES.—Unless expressly provided in a 
written contract with the Secretary, no action or 
claim, other than one brought under chapter 7 of 
Title 5, United States Code, may be brought against 
the Secretary by any person that divests its assets 
under a program under this subtitle. 
‘‘(4) STAYS.—Any injunction or other form of 
equitable relief issued against the Secretary for ac-
tions pursuant to section 151, 152, 156, and 159, 
shall be automatically stayed. The stay shall be lift-
ed unless the Secretary seeks a stay from a higher 
court within 3 calendar days after the date on which 
the relief is issued. 
‘‘(b) RELATED MATTERS.— 
‘‘(1) TREATMENT OF HOMEOWNERS’ RIGHTS.— 
The terms of any residential mortgage loan that is 
part of any purchase by the Secretary under this 
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subtitle shall remain subject to all claims and de-
fenses that would otherwise apply, notwithstanding 
the exercise of authority by the Secretary under this 
subtitle. 
‘‘(2) SAVINGS CLAUSE.—Any exercise of the au-
thority of the Secretary pursuant to this subtitle 
shall not impair the claims or defenses that would 
otherwise apply with respect to persons other than 
the Secretary. 
‘‘(3) TREATMENT OF INVESTORS’ RIGHTS.—(A) 
Under existing standard industry practice, if a 
servicer of pooled residential mortgages owes a duty 
to determine whether the net present value of the 
payments on a mortgage loan, as modified, sold, re-
financed or otherwise disposed of, is likely to be 
greater than the anticipated net recovery that would 
result from default or foreclosure, such servicer owes 
such duty to all investors and holders of beneficial 
interests in such loan, but not to any individual or 
group of investors or beneficial interest holders. 
‘‘(B) Any servicer of pooled residential mort-
gages shall be deemed to have satisfied the duty 
specified in subsection (A) if the servicer agrees to 
or implements a modification, sale, refinancing, or 
other disposition, including acceptance of partial 
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payments, interest rate reductions, principal write 
downs, short sales, and other measures to mitigate 
loss, so long as the servicer reasonably determines 
that the net present value of the payments on a 
mortgage loan, as modified, sold, refinanced or oth-
erwise disposed of, is likely to be greater than the 
anticipated net recovery that would result from de-
fault or foreclosure. 
‘‘SEC. 165. TERMINATION OF AUTHORITY. 
‘‘(a) TERMINATION.—The authorities provided under 
sections 151(a) and 152 shall terminate on December 31, 
2009. 
‘‘(b) EXTENSION UPON CERTIFICATION.—The Sec-
retary, upon submission of a written certification to Con-
gress, may extend the authority provided under this sub-
title to expire not later than 2 years from the date of en-
actment of this subtitle. Such certification shall include 
a justification of why the extension is necessary to assist 
American families and stabilize financial markets, as well 
as the expected cost to the taxpayers for such an exten-
sion. 
‘‘SEC. 166. CREDIT REFORM. 
‘‘(a) IN GENERAL.—Subject to subsection (b), the 
costs of purchases of assets made under section 151(a) 
and guarantees of assets under section 152, and any cash 
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flows associated with the activities authorized in section 
102 and subsections (a), (b), and (c) of section 156 shall 
be determined as provided under the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661 et seq.), as applicable. 
‘‘(b) COSTS.—For the purposes of section 502(5) of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a(5))— 
‘‘(1) the cost of assets and guarantees of assets 
shall be calculated by adjusting the discount rate in 
section 502(5)(E) (2 U.S.C. 661a(5)(E)) for market 
risks; and 
‘‘(2) the cost of a modification of a asset or 
guarantee of a asset shall be the difference between 
the current estimate consistent with paragraph (1) 
under the terms of the asset or guarantee of the 
asset and the current estimate consistent with para-
graph (1) under the terms of the asset or guarantee 
of the asset, as modified. 
‘‘SEC. 167. PRESERVATION OF QUALIFIED SPECIAL PUR-
POSE ENTITY STATUS. 
‘‘Notwithstanding Statement Number 140 of the Fi-
nancial Accounting Standards Board or and any other 
provision of law, a Qualified Special Purpose Entity (in 
this section referred to as a ‘QSPE’) may participate in 
a program established by the Secretary under this subtitle, 
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in the discretion of the servicer or trustee of the QSPE, 
by selling, disposing of or modifying any home mortgage 
loan from the assets of the QSPE, as provided by the Sec-
retary, and such participation shall not alter the status 
of the entity selling, modifying or disposing of such loans 
as a QSPE for purposes of Statement 140 or any other 
provision of law. 
‘‘SEC. 168. DEFINITIONS. 
‘‘For purposes of this subtitle, the following defini-
tions shall apply: 
‘‘(1) APPROPRIATE
COMMITTEES
OF
CON-
GRESS.—The term ‘appropriate committees of Con-
gress’ means— 
‘‘(A) the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Finance, 
the Committee on the Budget, and the Com-
mittee on Appropriations of the Senate; and 
‘‘(B) the Committee on Financial Services, 
the Committee on Ways and Means, the Com-
mittee on the Budget, and the Committee on 
Appropriations of the House of Representatives. 
‘‘(2) BOARD.—The term ‘Board’ means the 
Board of Governors of the Federal Reserve System. 
‘‘(3) CONGRESSIONAL
SUPPORT
AGENCIES.— 
The term ‘congressional support agencies’ means the 
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Congressional Budget Office and the Joint Com-
mittee on Taxation. 
‘‘(4) CORPORATION.—The term ‘Corporation’ 
means the Federal Deposit Insurance Corporation. 
‘‘(5) FAMILY FORECLOSURE RESCUE CORPORA-
TION.—The term ‘Family Foreclosure Rescue Cor-
poration’ mean the entity established by the Sec-
retary under section 151. 
‘‘(6) FINANCIAL INSTITUTION.—The term ‘fi-
nancial institution’ means any institution, trust, 
partnership, incorporated entity or other legal form, 
including but not limited to, any bank, savings asso-
ciation, credit union, security broker or dealer, in-
surance company, or securitization trust. 
‘‘(7) FUND.—The term ‘Fund’ means the 
Home Mortgage Insurance Financing Fund estab-
lished under section 102. 
‘‘(8) HOME
MORTGAGES.—The term ‘home 
mortgages’ means residential mortgages originated 
on or before the date of enactment of this subtitle, 
including residential mortgages held in securitization 
trusts, residential mortgages held by financial insti-
tutions, mortgages supporting multifamily housing, 
servicing rights with respect to home mortgages, 
other real estate owned by financial institutions, and 
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residential mortgage-backed securities, the purchase, 
guarantee, modification or disposition of which the 
Secretary determines promotes financial market sta-
bility. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
‘‘(10) FFRC PROGRAM.—The term ‘FFRC pro-
gram’ means the home mortgage relief program es-
tablished under section 151(a)(3). 
‘‘(11) SHARED EQUITY MORTGAGE.—The term 
‘shared equity mortgage’ means a mortgage product 
through which increases in the equity in a home re-
alized upon sale or disposition are shared among the 
homeowner, the Secretary, or other parties. 
‘‘SEC. 169. PRESERVATION OF AUTHORITY. 
‘‘Nothing in this subtitle may be construed to limit 
the authority of the Secretary under any other provision 
of law.’’. 
(b) CLERICAL AMENDMENTS.— 
(1) TITLE 5.—Section 5314 of title 5, United 
States Code, is amended by adding at the end the 
following new item: 
‘‘Chairman, Family Foreclosure Rescue Cor-
poration.’’. 
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