ment of this Act, as the duration of such period may 
be adjusted pursuant to subsection (c). 
(2) PLATFORM
CERTIFIED
AS
FUNCTIONAL; 
COMPETITIVE ACCESS FOR SMALL LENDERS; FHLB 
CAPACITY.—The certification date has occurred and 
the Director has determined that— 
(A) a competitive private housing finance 
market has been established; 
(B) competitive and equitable access to the 
Platform for smaller mortgage lenders is avail-
able; 
(C) the pooling services offered by Federal 
Home Loan Banks pursuant to section 11(m) 
of the Federal Home Loan Bank Act are com-
petitive with services made available by the en-
terprises before the certification date; 
(D) the Federal Home Loan Banks are ca-
pable of meeting the cash window needs of cred-
it unions, community and mid-sized depository 
institutions, and non-depository mortgage origi-
nators with competitive rates and terms; and 
(E) the Federal Home Loan Banks have 
created a ‘‘to be announced’’ market that is via-
ble in all economic cycles. 
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(b) GOALS AND TERMS.—Ginnie Mae shall carry out 
the receivership referred to in subsection (a) for the enter-
prise under the authority of such section 1367, subject 
to the following requirements: 
(1) GOALS.—In carrying out the receivership of 
each enterprise, Ginnie Mae shall strive to achieve 
both of the following goals: 
(A) RETURN
TO
TAXPAYERS.—Obtaining 
an adequate return of taxpayer investment in 
the enterprise, taking into consideration the 
total cost to the taxpayers, the value provided 
to the enterprise, and the risk and exposure to 
the Federal Government involved, together with 
interest on such investment at a rate deter-
mined by the Director, in consultation with the 
Board of Governors of the Federal Reserve Sys-
tem and the Secretary of the Treasury. 
(B) COMPETITIVE
PRIVATE
HOUSING
FI-
NANCE MARKET.—Removing barriers to private 
sector competition in the housing finance mar-
ket by providing for the transfer of the assets 
of the enterprise into the private sector to com-
pete in a functioning housing finance market. 
(2) FULL PRIVATIZATION.—Any entities emerg-
ing from such receivership shall be fully private and 
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any obligations and securities of such entities shall 
not constitute a debt or obligation of the United 
States nor or any agency or instrumentality thereof. 
(3) MULTIFAMILY
HOUSING
BUSINESS.—The 
receivership shall provide, notwithstanding any other 
provision of this Act, for the transfer of the multi-
family housing mortgage guarantee business of the 
enterprises in accordance with section 401 of this 
Act. 
(4) AVAILABILITY
OF
ASSETS.—The receiver-
ship shall provide for— 
(A) the identification of any assets of the 
enterprise that are not necessary for the oper-
ation of the limited-life entities established pur-
suant to paragraph (6); and 
(B) making such assets available at auc-
tion for acquisition by any private entities, 
which shall include the private entities estab-
lished pursuant to paragraph (6)(C). 
(5) RESTRUCTURING OF SPSPA.—The receiver-
ship shall provide for the restructuring of the Senior 
Preferred Stock Purchase Agreements entered into 
between the Department of the Treasury and the en-
terprise on September 26, 2008, as amended and re-
stated thereafter, to— 
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(A) permit the redemption of senior pre-
ferred shares of the Department of the Treas-
ury; 
(B) provide for the cancellation of the war-
rants for the purchase of common stock of the 
enterprises issued to the Department of the 
Treasury; and 
(C) provide for the appropriate level of 
compensation to the Federal Government for 
the financial support and commitment provided 
to the enterprise. 
(6) WIND-DOWN; LIMITED-LIFE ENTERPRISES; 
RESTRUCTURING.—Under the receivership— 
(A) the receiver shall organize a limited-life 
regulated entity for the enterprise in accordance 
with section 1367(i) of the Federal Housing 
Enterprises Financial Safety and Soundness 
Act of 1992 (12 U.S.C. 4617(i)), except that— 
(i) any assets and liabilities of the en-
terprise that the receiver determines are 
necessary to allow the limited-life regulated 
entity to operate independent from the res-
olution of the enterprise shall be trans-
ferred to the limited-life regulated entity; 
and 
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(ii) in winding up the affairs of the 
limited-life regulated entity, the remaining 
assets of the limited-life regulated entity 
shall be made available to the successor en-
tities established pursuant to subparagraph 
(C) of this paragraph and to other private 
guarantors engaged in providing insurance 
for eligible mortgage-backed securities in 
accordance with section 202; 
(B) the charter of the enterprise shall be 
repealed pursuant to section 1367(k) of the 
Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 
4617(k)), as amended by section 305; and 
(C) the receiver shall provide for reorga-
nization and chartering of the successor entity 
to the limited life regulated entity for the enter-
prise as an entity established to operate as an 
insurer under section 202(b)(2)(A) of this Act 
or a participating aggregator of eligible mort-
gages for securitization pursuant to section 201 
if such eligible mortgages are originated by 
originators whose volume of such business is in-
sufficient to allow for such originators to aggre-
gate and securitize such mortgages. 
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(c) ADJUSTMENT OF TIMING.—Ginnie Mae may ad-
just the duration of the period referred to in subsection 
(a)(1) by establishing requirements to be met by market 
participants before such period may be considered to be 
concluded. Such requirements may include requirements 
regarding— 
(1) ensuring that there is an adequate level of 
private capital available for efficient financing of sin-
gle-family 
and 
multifamily 
housing 
mortgages 
through— 
(A) the market for initial public offerings; 
and 
(B) retained earnings of market partici-
pants; and 
(2) ensuring that any anticompetitive liquidity 
advantages in mortgage-backed securities are ade-
quately protected against. 
SEC. 305. REPEAL OF ENTERPRISE CHARTERS. 
Section 1367 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 U.S.C. 
4617) is amended by striking subsection (k) and inserting 
the following new subsection: 
‘‘(k) REPEAL OF ENTERPRISE CHARTERS.— 
‘‘(1) FANNIE MAE.—Effective upon the certifi-
cation date (as such term is defined in section 2 of 
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‘‘(2) FREDDIE MAC.—Effective upon the certifi-
cation date, the charter of the Federal Home Loan 
Mortgage Corporation is repealed and the Federal 
Home Loan Mortgage Corporation shall have no au-
thority to conduct new business under such charter, 
except that the provisions of such charter in effect 
immediately before such repeal shall continue to 
apply with respect to the rights and obligations of 
any holders of— 
‘‘(A) outstanding debt obligations of the 
Federal Home Loan Mortgage Corporation, in-
cluding any— 
‘‘(i) bonds, debentures, notes, or other 
similar instruments; 
‘‘(ii) capital lease obligations; or 
‘‘(iii) obligations in respect of letters 
of credit, bankers’ acceptances, or other 
similar instruments; or 
‘‘(B) mortgage-backed securities guaran-
teed by the Federal Home Loan Mortgage Cor-
poration that are not eligible mortgage-backed 
securities insured by Ginnie Mae pursuant to 
section 202 of the Partnership to Strengthen 
Homeownership Act of 2014. 
‘‘(3) EXISTING GUARANTEE OBLIGATIONS.— 
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‘‘(A) EXPLICIT
GUARANTEE.—The full 
faith and credit of the United States is pledged 
to the payment of all amounts which may be re-
quired to be paid under any obligation de-
scribed in paragraph (1) or (2). 
‘‘(B) CONTINUED DIVIDEND PAYMENTS.— 
Notwithstanding any other provision of law, 
provision 2(a) (relating to Dividend Payment 
Dates and Dividend Periods) and provision 2(c) 
(relating to Dividend Rates and Dividend 
Amount) of the Senior Preferred Stock Pur-
chase Agreement, or any provision of any cer-
tificate in connection with such Agreement cre-
ating or designating the terms, powers, pref-
erences, privileges, limitations, or any other 
conditions of the Variable Liquidation Pref-
erence Senior Preferred Stock of an enterprise 
issued pursuant to such Agreement— 
‘‘(i) shall not be amended, restated, or 
otherwise changed to reduce the rate or 
amount of dividends in effect pursuant to 
such Agreement as of the Third Amend-
ment to such Agreement dated August 17, 
2012, except that any amendment to such 
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Agreement to facilitate the sale of assets of 
the enterprises shall be permitted; and 
‘‘(ii) shall remain in effect until the 
guarantee 
obligations 
described 
under 
paragraphs (1)(B) and (2)(B) of this sub-
section are fully extinguished. 
‘‘(C) APPLICABILITY.—All guarantee fee 
amounts derived from the single-family mort-
gage guarantee business of the enterprises in 
existence as of the certification date shall be 
subject to the Senior Preferred Stock Purchase 
Agreement. 
‘‘(D) SENIOR
PREFERRED
STOCK
PUR-
CHASE
AGREEMENT.—For purposes of this 
paragraph, the term ‘Senior Preferred Stock 
Purchase Agreement’ means— 
‘‘(i) the Amended and Restated Senior 
Preferred 
Stock 
Purchase 
Agreement, 
dated September 26, 2008, as such Agree-
ment has been amended on May 6, 2009, 
December 24, 2009, and August 17, 2012, 
respectively, and as such Agreement may 
be further amended and restated, entered 
into between the Department of the Treas-
ury and each enterprise, as applicable; and 
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‘‘(ii) any provision of any certificate in 
connection with such Agreement creating 
or designating the terms, powers, pref-
erences, privileges, limitations, or any 
other conditions of the Variable Liquida-
tion Preference Senior Preferred Stock of 
an enterprise issued or sold pursuant to 
such Agreement. 
‘‘(4) SWAP
OPTION
FOR
NEW
SECURITIES.— 
Notwithstanding any other provision of this sub-
section, Ginnie Mae shall provide that during the 
30-year period beginning upon the certification date, 
any securities described in paragraph (1)(B) or 
(2)(B) may be exchanged, at the request of the hold-
er of such security, for securities insured under sec-
tion 202 of the Partnership to Strengthen Home-
ownership Act of 2014, and Ginnie Mae shall ensure 
fungibility between such securities exchanged. Ginnie 
Mae may establish such terms and conditions for 
such exchanges as Ginnie Mae considers appro-
priate, except that Ginnie Mae shall provide that in 
such exchanges such securities described in para-
graph (1)(B) or (2)(B) shall receive a risk weight of 
zero.’’. 
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SEC. 306. GINNIE MAE AUTHORITY REGARDING TIMING. 
(a) AUTHORITY.—The Director may extend any 
deadline referred to in section 301, 303(a), 304(a), or the 
provisions amended by section 305, as provided in such 
subsection (b) of this section, but only if the Director— 
(1) makes a determination, after consultation 
with the Board of Governors of the Federal Reserve 
System, that such deadline is posing significant risk 
to the housing market; and 
(2) causes notice of such determination to be 
published in the Federal Register. 
(b) EXTENSIONS.— 
(1) FIRST EXTENSION.—The first extension of 
any deadline pursuant to subsection (a) shall be for 
a period of an additional 2 years. 
(2) SECOND EXTENSION.—If, after the expira-
tion of a first extension of a deadline of 2 years, the 
Director makes a determination as provided in sub-
section (a)(1), the Director may extend the deadline 
an additional 2 years. 
(3) ADDITIONAL EXTENSIONS.—If, after the ex-
piration of the second extension of a deadline of 2 
years, the Director makes a determination as pro-
vided in subsection (a)(1), the Director may, upon 
the written agreement of the Chairman of the Board 
of Governors of the Federal Reserve System and the 
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Secretary of the Treasury, and in consultation with 
the Secretary of the Housing and Urban Develop-
ment, extend the deadline an additional year, and 
annually thereafter utilizing the same process de-
scribed in this paragraph until such time as the Di-
rector makes a determination that such deadline 
does not pose a significant risk to the housing mar-
ket. 
(c) REPORTS.—If the Director extends any deadline 
period pursuant to the authority under subsection (a), the 
Director shall thereafter, until the expiration of the peri-
ods referred to in paragraphs (1) and (2) of section 
1367(k) of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992 (as such period may 
be extended pursuant to this section), submit a report to 
the Congress on a monthly basis regarding the transition 
of the enterprises pursuant to this section, the status of 
the business of the enterprises, and the market share of 
the enterprises. 
TITLE IV—MULTIFAMILY 
HOUSING FINANCE 
SEC. 401. ESTABLISHMENT OF MULTIFAMILY SUBSIDI-
ARIES. 
(a) FORMATION AND GOVERNANCE OF MULTIFAMILY 
SUBSIDIARIES.— 
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(1) FEDERAL NATIONAL MORTGAGE ASSOCIA-
TION.— 
(A) MULTIFAMILY
SUBSIDIARY
PLAN.— 
The Director of Ginnie Mae, in consultation 
with the Secretary of the Treasury, shall direct 
the Federal National Mortgage Association to 
develop a plan, not later than 180 days after 
the date of enactment of this Act, to establish 
a multifamily subsidiary for purposes of expedi-
tiously— 
(i) providing sufficient multifamily fi-
nancing in the primary, secondary, and 
tertiary geographical markets, including in 
rural markets and through a diversity of 
experienced multifamily lenders; and 
(ii) establishing a competitive multi-
family market for multifamily housing 
guarantors engaging in multifamily covered 
securities. 
(B) ESTABLISHMENT
OF
MULTIFAMILY 
SUBSIDIARY.—The Director shall direct the 
Federal National Mortgage Association to es-
tablish a multifamily subsidiary not later than 
1 year after the date of enactment of this Act. 
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(2) FEDERAL
HOME
LOAN
MORTGAGE
COR-
PORATION.— 
(A) MULTIFAMILY
SUBSIDIARY
PLAN.— 
The Director, in consultation with the Secretary 
of the Treasury, shall direct the Federal Home 
Loan Mortgage Corporation to develop a plan, 
not later than 180 days after the date of enact-
ment of this Act, to establish a multifamily sub-
sidiary for purposes of expeditiously— 
(i) providing sufficient multifamily fi-
nancing in the primary, secondary, and 
tertiary geographical markets, including in 
rural markets and through a diversity of 
experienced multifamily lenders; and 
(ii) establishing a competitive multi-
family market for multifamily housing 
guarantors engaging in multifamily covered 
securities. 
(B) ESTABLISHMENT
OF
MULTIFAMILY 
SUBSIDIARY.—The Director shall direct the 
Federal Home Loan Mortgage Corporation to 
establish a multifamily subsidiary not later than 
1 year after the date of enactment of this Act. 
(b) TRANSFER OF FUNCTIONS.— 
(1) FANNIE MAE MULTIFAMILY SUBSIDIARY.— 
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(A) IN
GENERAL.—Notwithstanding the 
provisions under title III or any other provision 
of law, effective on the date on which the multi-
family subsidiary is established under sub-
section (a)(1)(B), all employees, functions, ac-
tivities, infrastructure, property, including the 
Delegated Underwriting and Servicing Lender 
Program and other intellectual property, plat-
forms, technology, or any other object or service 
of the Federal National Mortgage Association 
necessary to the support, maintenance, and op-
eration of the multifamily business of the Fed-
eral National Mortgage Association shall be 
transferred and contributed, without cost, to 
the multifamily subsidiary. 
(B) CAPITAL CONTRIBUTION.—In connec-
tion with the transfer required under subpara-
graph (A), the Federal National Mortgage As-
sociation shall contribute, in any form or man-
ner the Director may determine, subject to the 
approval right of the Secretary of the Treasury 
in the Senior Preferred Stock Purchase Agree-
ment, any capital necessary to ensure that the 
multifamily subsidiary established under sub-
section (a)(1)(B) has, in the determination of 
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the Director, sufficient capital to carry out its 
multifamily business, including the ability to ob-
tain warehouse lines of credit. 
(C) ENSURING CONTINUATION OF ONGO-
ING OPERATION OF MULTIFAMILY BUSINESS.— 
(i) IN GENERAL.—In carrying out the 
multifamily business transferred pursuant 
to subparagraph (A), the multifamily sub-
sidiary 
established 
under 
subsection 
(a)(1)(B) shall ensure that any such busi-
ness continues to operate, as applicable, 
consistent with— 
(I) the Delegated Underwriting 
and Servicing Lender Program estab-
lished by the Federal National Mort-
gage Association; 
(II) any other programs, activi-
ties, and contractual agreements of 
the enterprises that support the enter-
prises’ provision of liquidity to the 
multifamily housing market; and 
(III) the provisions of this title. 
(2) FREDDIE MAC MULTIFAMILY SUBSIDIARY.— 
(A) IN
GENERAL.—Notwithstanding the 
provisions under title VI or any other provision 
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of law, effective on the date on which the multi-
family subsidiary is established under sub-
section (a)(2)(B), all employees, functions, ac-
tivities, infrastructure, property, including the 
Capital Market Execution Program Series K 
Structured 2Pass-Through Certificates origi-
nated and offered under the Program Plus 
Lender Program and other intellectual prop-
erty, platforms, technology, or any other object 
or service of the Federal Home Loan Mortgage 
Corporation necessary to the support, mainte-
nance, and operation of the multifamily busi-
ness of the Federal Home Loan Mortgage Cor-
poration shall be transferred and contributed, 
without cost, to the multifamily subsidiary. 
(B) CAPITAL CONTRIBUTION.—In connec-
tion with the transfer required under subpara-
graph (A), the Federal Home Loan Mortgage 
Corporation shall contribute, in any form or 
manner the Director may determine, subject to 
the approval right of the Secretary of the 
Treasury in the Senior Preferred Stock Pur-
chase Agreement, any capital necessary to en-
sure that the multifamily subsidiary established 
under subsection (a)(2)(B) has, in the deter-
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mination of the Director, sufficient capital to 
carry out its multifamily business, including the 
ability to obtain warehouse lines of credit. 
(C) ENSURING CONTINUATION OF ONGO-
ING OPERATION OF MULTIFAMILY BUSINESS.— 
(i) IN GENERAL.—In carrying out the 
multifamily business transferred pursuant 
to subparagraph (A), the multifamily sub-
sidiary 
established 
under 
subsection 
(a)(2)(B) shall ensure that any such busi-
ness continues to operate, as applicable, 
consistent with— 
(I) the Capital Market Execution 
Program Series K Structured 2Pass- 
Through Certificates originated and 
offered under the Program Plus 
Lender Program established by the 
Federal Home Loan Mortgage Cor-
poration; 
(II) any other programs, activi-
ties, and contractual agreements of 
the enterprises that support the enter-
prises’ provision of liquidity to the 
multifamily housing market; and 
(III) the provisions of this title. 
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(c) MULTIFAMILY SUBSIDIARIES.— 
(1) IN GENERAL.—The multifamily subsidiaries 
established by the Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration under subsection (a) may retain a limited 
multifamily mortgage loan portfolio to— 
(A) aggregate mortgage loans for pooled 
securities executions; 
(B) implement pilot mortgage loan pro-
grams and other risk-sharing transactions and 
product modification testing; 
(C) engage in the financing of properties 
with rent-regulatory restrictions, off-campus 
student housing, and senior and assisted living 
developments; and 
(D) perform additional activities as may be 
established by the Director for the purpose of 
facilitating the continuation of existing multi-
family activities. 
(2) PORTFOLIO REDUCTION APPLICABILITY.— 
For purposes of expeditiously meeting the criteria 
under clauses (i) and (ii) of paragraphs (1)(A) and 
(2)(A) of subsection (a), the multifamily subsidiaries 
established under subsection (a) shall not be subject 
to any portfolio reduction required under title III. 
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SEC. 402. DISPOSITION OF MULTIFAMILY BUSINESSES. 
(a) AUTHORITY TO MANAGE DISPOSITION OF MUL-
TIFAMILY BUSINESSES.—Notwithstanding any provision 
of title III or any other provision of law, the Director may, 
on or before the certification date, manage the sale, trans-
fer, or disposition for value of property, including intellec-
tual property, technology, platforms, and legacy systems, 
infrastructure and processes of an enterprise relating to 
the operation and maintenance of the multifamily business 
of an enterprise. 
(b) REQUIRED ESTABLISHMENT
OF WELL-FUNC-
TIONING MULTIFAMILY COVERED SECURITY MARKET.— 
In exercising the authority in subsection (a), the Director 
shall manage any disposition of the multifamily business 
of an enterprise in a manner consistent with— 
(1) the establishment of a well-functioning mul-
tifamily covered security market; 
(2) the provision of broad access to multifamily 
financing; and 
(3) facilitating competition in the multifamily 
covered security market by— 
(A) providing open access to performance 
information on the legacy multifamily business 
of an enterprise; 
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(B) providing for reasonable licensing of 
the multifamily proprietary systems of an enter-
prise; and 
(C) setting market share limitations, fees, 
or additional capital standards on multifamily 
business assets that were sold, transferred, or 
disposed. 
SEC. 403. APPROVAL AND SUPERVISION OF MULTIFAMILY 
GUARANTORS. 
(a) IN GENERAL.—The Director shall develop, adopt, 
publish, and enforce standards for the approval by the Di-
rector of multifamily guarantors to— 
(1) issue securities collateralized by eligible 
multifamily mortgage loans; and 
(2) guarantee the timely payment of principal 
and interest on such securities collateralized by eligi-
ble multifamily mortgage loans and insured by 
Ginnie Mae. 
(b) REQUIRED STANDARDS.—The standards required 
under paragraph (1) shall include standards sufficient to 
ensure that— 
(1) each multifamily guarantor is well-capital-
ized; and 
(2) credit risk-sharing levels under any such 
guarantees are commensurate with such levels under 
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the Delegated Underwriting and Servicing Lender 
Program of the Federal National Mortgage Associa-
tion and the Capital Market Execution Program Se-
ries K Structured 2Pass-Through Certificates origi-
nated and offered under the Program Plus Lender 
Program of the Federal Home Loan Mortgage Cor-
poration. 
(c) PRICING.—Ginnie Mae shall charge a guarantee 
fee for guarantees provided pursuant to this section and 
such fee shall be determined by Ginnie Mae— 
(1) in the same manner and using the same 
procedures used pursuant to title II to determine 
guarantee fees for securities backed by single-family 
housing mortgages, with such changes as Ginnie 
Mae determines to be necessary to account for the 
differences between the single-family guarantee busi-
ness and the multifamily guarantee business; and 
(2) taking into account the differences between 
the guarantee fees structures of the Federal Na-
tional Mortgage Association and the Federal Home 
Loan Mortgage Corporation. 
(d) DISTINCTIONS.—The Director shall take into ac-
count, in carrying out this section, in providing any 
issuing platform, and in establishing any requirements re-
lating to the guarantee of securities collateralized by eligi-
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ble multifamily mortgage loans, the particular nature and 
characteristics of such securities and loans, as distin-
guished from eligible mortgages and securities guaranteed 
pursuant to title II, and as may be necessary to accommo-
date the multifamily housing financing market. 
SEC. 404. OTHER FORMS OF MULTIFAMILY RISK-SHARING. 
The Director may establish such other methods and 
manner of risk-sharing and risk transfer relating eligible 
multifamily mortgage loans, in addition to the methods 
and manners authorized under this title, as may be appro-
priate taking into consideration the particular nature and 
characteristics of the multifamily housing finance market, 
which may include any risk-sharing activities of the Fed-
eral National Mortgage Association and the Federal Home 
Loan Mortgage Corporation relating to the multifamily 
housing business. 
SEC. 405. GINNIE MAE SECURITIZATION OF FHA RISK-SHAR-
ING LOANS. 
(a) QUALIFIED
PARTICIPATING
ENTITIES
RISK- 
SHARING PROGRAM.—Paragraph (8) of section 542(b) of 
the Housing and Community Development Act of 1992 
(12 U.S.C. 1715z–22(b)(8)) is amended to read as follows: 
‘‘(8) GINNIE MAE SECURITIZATION.— 
‘‘(A) PROHIBITION.—The Government Na-
tional Mortgage Association shall not securitize 
VerDate Mar 15 2010 
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