(A) in paragraph (4), by inserting a
comma after ‘‘Supervision’’;
(B) in paragraph (5), by striking the pe-
riod at the end and inserting ‘‘, and’’; and
(C) by adding at the end the following new
paragraph:
‘‘(6) the Chairman of the Housing Finance
Oversight Board.’’.
SEC. 138. ELIMINATION OF SUPER-LIEN FOR FEDERAL
HOME LOAN BANKS.
Section 10 of the Federal Home Loan Bank Act (12
U.S.C. 1430) is amended by striking subsection (e), as
added by section 306(d) of the Competitive Equality
Banking Act of 1987 (Public Law 100–86; 101 Stat. 601;
relating to priority of certain secured interests).
SEC. 139. FEDERAL HOME LOAN BANK FINANCE CORPORA-
TION.
(a) ESTABLISHMENT OF FINANCE CORPORATION.—
The Federal Home Loan Bank Act (12 U.S.C. 1421 et
seq.) is amended by inserting after section 4 the following
new section:
‘‘SEC. 5. FEDERAL HOME LOAN BANK FINANCE CORPORA-
TION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN
GENERAL.—There is established the
Federal Home Loan Bank Finance Corporation
(hereafter in this section referred to as the ‘Corpora-
tion’), which shall be a federally chartered instru-
mentality of the United States.
‘‘(2) PURPOSES.—The purposes of the Corpora-
tion shall be—
‘‘(A) to act as the only entity authorized to
issue and service the notes, bonds, debentures,
and other debt obligations which shall be the
joint and several liability of the Federal home
loan banks in accordance with this Act; and
‘‘(B) to perform or cause to be performed
all other necessary and proper functions in rela-
tion to the issuance and servicing of obligations
referred to in subparagraph (A), as fiscal agent
on behalf of the Federal home loan banks, and
any functions performed by the Office of Fi-
nance on behalf of the Financing Corporation
(established pursuant to section 21) and the
Resolution Funding Corporation (established
pursuant to section 21B) before the date of en-
actment of the Housing Finance Regulatory
Improvement Act.
‘‘(b) POWERS.—Subject to the other provisions of
this Act and to such regulations as the Board may pre-
scribe, the Corporation shall have only the following pow-
ers:
‘‘(1) To issue voting capital stock to the Fed-
eral home loan banks.
‘‘(2) To issue and service Federal Home loan
bank notes, bonds, debentures, and other obligations
pursuant to section 11 on behalf of the Federal
home loan banks.
‘‘(3) To determine the amount, maturities, rate
of interest, terms, and other conditions of Federal
home loan bank notes, bonds, debentures, and other
obligations.
‘‘(4) To adopt, alter, and use a corporate seal.
‘‘(5) To make contracts.
‘‘(6) To sue and be sued, by and through its
own attorneys, in the corporate capacity of the Cor-
poration, and to complain and defend in any action
brought by or against the Corporation in any court
of competent jurisdiction.
‘‘(7) To determine the terms and conditions
under which the Corporation shall indemnify its di-
rectors, officers, employees, and agents.
‘‘(8) To exercise such incidental powers not in-
consistent with the provisions of this Act as are nec-
essary or advisable to carry out this Act.
‘‘(c) BOARD OF DIRECTORS.—
‘‘(1) ESTABLISHMENT.—The management of
the Corporation shall be vested in a board of direc-
tors composed of directors elected by the Federal
home loan banks in accordance with paragraph (2).
‘‘(2) COMPOSITION
OF
BOARD.—Each Bank
shall annually elect 1 individual who, as of the time
of the election, is an officer or director of the Bank
to serve as a member of the board of directors of the
Corporation.
‘‘(3) DUTIES.—The board of directors shall ad-
minister the affairs of the Corporation in accordance
with this Act.
‘‘(4) TERMS.—
‘‘(A) IN GENERAL.—Each member of the
board of directors of the Corporation shall be
elected for a term of 1 year, and shall serve at
the pleasure of the board of directors of the
Federal home loan bank that elected that mem-
ber.
‘‘(B) INTERIM
APPOINTMENTS.—Any di-
rector elected to fill a vacancy on the board of
directors of the Corporation occurring before
the expiration of the term for which the prede-
cessor of that director was elected shall be
elected only for the remainder of the unexpired
term.
‘‘(C) CONTINUATION OF SERVICE.—Each
director may continue to serve after the expira-
tion of the term to which that director was
elected until a successor has been elected and
qualified.
‘‘(5) POWERS.—The board of directors shall ex-
ercise such powers as may be necessary and appro-
priate to carry out this section, including the
power—
‘‘(A) to review, adopt, and monitor the an-
nual budget of the Corporation;
‘‘(B) to set policies for the Corporation;
‘‘(C) to impose assessments on the Federal
home loan banks to fund the expenditures of
the Corporation; and
‘‘(D) to appoint, establish the duties of,
and compensate the employees of the Corpora-
tion, and to dismiss at will the employees of the
Corporation.
‘‘(6) PAY.—The members of the board of direc-
tors shall serve without additional compensation, but
shall be reimbursed for reasonable expenses of trav-
el, lodging, and subsistence incurred in performing
the business of the Corporation.
‘‘(7) QUORUM
REQUIREMENT.—No business
may be conducted by the board of directors unless
a quorum of the members of the board of directors
is present in person or by telephone, or through ac-
tion taken by unanimous written consent executed
by the members of the board of directors.
‘‘(8) APPOINTMENT OF OFFICERS AND ADOP-
TIONS OF RULES OF PROCEDURE.—The board of di-
rectors shall—
‘‘(A) select, from among the members of
the board, a Chairperson and a Vice Chair-
person; and
‘‘(B) adopt bylaws and other rules of pro-
cedure for actions before the board of directors,
including the establishment of 1 or more com-
mittees to take action on behalf of the board of
directors and the delegation of powers of the
board of directors to any such committee or of-
ficer of the Corporation.
‘‘(d) STOCK.—
be treated as a Federal home loan bank for purposes of
any law.
‘‘(f) JURISDICTION; REMOVAL POWER.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, any civil action or proceeding to
which the Corporation is a party shall be deemed to
arise under the laws of the United States.
‘‘(2) VENUE.—The United States District
Court for the District of Columbia shall have exclu-
sive jurisdiction over any action to which the Cor-
poration is a party.
‘‘(3) REMOVAL.—The Corporation may, without
bond or security, remove any action or proceeding to
which the Corporation is or becomes a party from a
State court to the United States District Court for
the District of Columbia.’’.
(b) BONDS AND DEBENTURES.—Section 11(a) of the
Federal Home Loan Bank Act (12 U.S.C. 1431(a)) is
amended—
(1) by inserting ‘‘through the Federal Home
Loan Bank Finance Corporation’’ after ‘‘to issue’’;
and
(2) by striking ‘‘Board may approve’’ and in-
serting ‘‘board of directors of the Bank may ap-
prove’’.
(c) ISSUANCE OF CONSOLIDATED OBLIGATIONS.—
Section 11(b) of the Federal Home Loan Bank Act (12
U.S.C. 1431(b)) is amended to read as follows:
‘‘(b) ISSUANCE
OF FEDERAL HOME LOAN BANK
CONSOLIDATED OBLIGATIONS.—
‘‘(1) IN GENERAL.—The Federal Home Loan
Bank Finance Corporation may issue consolidated
Federal home loan bank bonds and other consoli-
dated obligations on behalf of the Banks.
‘‘(2) JOINT AND SEVERAL OBLIGATION; TERMS
AND CONDITIONS.—Consolidated obligations issued
by the Federal Home Loan Bank Finance Corpora-
tion under paragraph (1) shall—
‘‘(A) be the joint and several obligations of
all of the Federal home loan banks; and
‘‘(B) shall be issued upon such terms and
conditions as shall be established by the Federal
Home Loan Bank Finance Corporation, subject
to such rules and regulations as the Finance
Board may prescribe.’’.
(d) REDISCOUNTING OF NOTES.—Section 11(f) of
the Federal Home Loan Bank Act (12 U.S.C. 1431(f))
is amended by striking ‘‘permit,, to require,’’ and inserting
‘‘permit or to require’’.
(e) TREASURY PURCHASE OF BANK OBLIGATIONS.—
Section 11(i) of the Federal Home Loan Bank Act (12
U.S.C. 1431(i)) is amended by striking the second undes-
ignated paragraph.
(f) TECHNICAL AMENDMENTS.—The Federal Home
Loan Bank Act (12 U.S.C. 1421 et seq.) is amended—
(1) in section 11 (12 U.S.C. 1431)—
(A) by striking subsection (c); and
(B) 
by 
redesignating 
subsections 
(d)
through (k) as subsections (c) through (j), re-
spectively.
(2) in section 21(b)(1), by striking subpara-
graph (A) and inserting the following:
‘‘(A) The Chairperson of the Federal
Home Loan Bank Finance Corporation estab-
lished under section 5.’’; and
(3) in section 21B(c)(1), by striking subpara-
graph (A) and inserting the following:
‘‘(A) The Chairperson of the Federal
Home Loan Bank Finance Corporation estab-
lished under section 5.’’.
(g) TRANSFER OF FUNCTIONS AND SAVINGS PROVI-
SION.—
(1) TRANSFER OF FUNCTIONS.—The functions
of the Office of Finance of the Federal Home Loan
Banks (in this subsection referred to as the ‘‘Office
of Finance’’) relating to the issuance and servicing
of consolidated obligations of the Banks and any
functions performed by the Office of Finance on be-
half of the Financing Corporation and the Resolu-
tion Funding Corporation shall be transferred to the
Federal Home Loan Bank Finance Corporation (in
this section referred to as the ‘‘Corporation’’) estab-
lished under section 5 of the Federal Home Loan
Bank Act, as added by this section, before the end
of the 6-month period beginning on the date of the
enactment of this Act.
(2) SAVINGS PROVISION.—The transfer of func-
tions from the Office of Finance to the Corporation
in accordance with this section shall not affect the
validity of any right, duty, contract, or obligation of
the Office of Finance (with respect to any person or
entity) that existed on the day before the effective
date of the transfer of functions.
SEC. 140. CAPITAL TREATMENT OF PRIVATE LABEL MORT-
GAGE-BACKED SECURITIES.
It is the sense of the Congress that, with respect to
the provisions of proposed rules issued jointly by the
Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, the Comptroller
of the Currency, and the Office of Thrift Supervision
(Federal Reserve, Docket No. R–1055; FDIC, RIN 3064–
AB31; OCC, Docket No 00–06; OTS Docket No. 2000–
15) that address treatment of privately issued mortgage
backed securities under risk-based capital requirements—
(1) such proposed rules are appropriate
because—
(A) such securities having a rating of AAA
should be treated, for risk-based capital pur-
poses, in the same manner as similar securities
issued by Government-sponsored enterprises;
and
(B) such parity in treatment eliminates a
substantial impediment to greater portfolio di-
versity by banking institutions; and
(2) the final rules regarding such treat-
ment should not be significantly altered from
such proposed rules.
SEC. 141. STUDY OF EFFECTS OF GSE FAILURE ON DEPOSI-
TORY INSTITUTIONS.
(a) IN GENERAL.—The Federal Deposit Insurance
Corporation, in consultation with the Board of Governors
of the Federal Reserve System, shall conduct a study of
the existing exposure of depository institutions to default
or failure of each of the Government-sponsored enterprises
(7) in the subsection heading for section
1369A(c) (12 U.S.C. 4620(c)), by striking ‘‘DIREC-
TOR’’ and inserting ‘‘BOARD’’;
(8) in the section heading for section 1369D
(12 U.S.C. 4623), by striking ‘‘DIRECTOR’’ and in-
serting ‘‘BOARD’’;
(9) in the subsection heading for section
1376(e) (12 U.S.C. 4636(e)), by striking ‘‘DIREC-
TOR’’ and inserting ‘‘BOARD’’;
(10) by striking section 1383;
(11) by striking ‘‘Director’’ each place such
term appears (except the second place such term ap-
pears in each of paragraphs (1) and (2) of section
1316(g), the third place such term appears in sec-
tion 1317(c), in section 1361(a)(3)(C), and the sec-
ond and third places such term appears in sub-
section (f) of section 1361) and inserting ‘‘Board’’;
(12) by striking ‘‘Director’s’’ each place such
term appears and inserting ‘‘Board’s’’;
(13) by striking ‘‘Office’’ each place such term
appears (except each place such term appears in sec-
tion 1315(b), in section 1316(g)(1), the second place
such term appears in section 1316(g)(2), in section
1317(c), 
in 
section 
1334(d)(3), 
in 
section
1361(a)(3)(C), and each place such term appears in
section 1361(f)) and inserting ‘‘Board’’; and
(14) by striking ‘‘Secretary’’ each place such
term appears (except in section 1325, section
1361(d)(1), and section 1367(a)(2)) and inserting
‘‘Board’’.
(b) AMENDMENTS TO FEDERAL NATIONAL MORT-
GAGE ASSOCIATION CHARTER ACT.—The Federal Na-
tional Mortgage Association Charter Act (12 U.S.C. 1716
et seq.) is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ each
place such term appears, and inserting ‘‘Housing Fi-
nance Oversight Board’’, 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 301 (12 U.S.C. 1716)—
(A) in the section heading, by inserting
‘‘AND DEFINITION’’ after ‘‘PURPOSES’’;
(B) by inserting ‘‘(a) PURPOSES.—’’ after
the section designation; and
(C) by adding at the end the following new
subsection:
‘‘(b) DEFINITION.—For purposes of this title, the
term ‘Housing Finance Oversight Board’ means the Hous-
ing Finance Oversight Board established under title XIII
of the Housing and Community Development Act of 1992
(12 U.S.C. 4501 et seq.).’’;
(3) in section 302(b)(1), by striking ‘‘Sec-
retary’’ each place such term appears and inserting
‘‘Housing Finance Oversight Board’’;
(4) 
in 
section 
309 
(12 
U.S.C.
1723a(d)(3)(B))—
(A) in the second sentence of subsection
(d)(3)(B), by striking ‘‘Director’’ each place
such term appears and inserting ‘‘Housing Fi-
nance Oversight Board’’;
(B) in subsection (k)—
(i) in paragraph (1), by striking ‘‘Di-
rector shall’’ and inserting ‘‘Housing Fi-
nance Oversight Board shall’’; and
(ii) in paragraphs (2) and (3), by
striking ‘‘Director’’ each place such term
appears and inserting ‘‘Housing Finance
Oversight Board’’; and
(C) in subsection (l)(2), by striking ‘‘Di-
rector’’ and inserting ‘‘Housing Finance Over-
sight Board’’; and
(5) in section 309, by striking ‘‘Secretary’’ each
place such term appears in subsections (m) and (n)
and inserting ‘‘Housing Finance Oversight Board’’.
(c) AMENDMENTS TO FEDERAL HOME LOAN MORT-
GAGE CORPORATION ACT.—The Federal Home Loan
Mortgage Corporation Act is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ each
place such term appears, and inserting ‘‘Housing Fi-
nance Oversight Board’’, 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
(C) 
section 
307(c)(1) 
(12 
U.S.C.
1456(c)(1));
(2) in section 302 (12 U.S.C. 1415), by adding
at the end the following new subsection:
‘‘(m) The term ‘Housing Finance Oversight Board’
means the Housing Finance Oversight Board established
under title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4501 et seq.).’’;
(3) in the second sentence of section 303(h)(2)
(12 U.S.C. 1452(h)(2), by striking ‘‘Director’’ each
place such term appears and inserting ‘‘Housing Fi-
nance Oversight Board’’;
(4) in section 307, by striking ‘‘Secretary’’ each
place such term appears in subsections (e) and (f)
and inserting ‘‘Housing Finance Oversight Board’’;
(5) in section 306(i) (12 U.S.C. 1455(i))—
(A) by striking ‘‘section 1316(c)’’ and in-
serting ‘‘section 306(c)’’; and
(B) by striking ‘‘section 106’’ and insert-
ing ‘‘section 1316’’; and
(6) in section 307 (12 U.S.C. 1456)—
(A) in subsection (c)(1), by striking ‘‘Di-
rector shall’’ and inserting ‘‘Housing Finance
Oversight Board shall’’;
(B) in subsection (c), in paragraphs (2)
and (3), by striking ‘‘Director’’ each place such
term appears and inserting ‘‘Housing Finance
Oversight Board’’; and
(C) in subsection (d)(2), by striking ‘‘Di-
rector’’ and inserting ‘‘Housing Finance Over-
sight Board’’.
(d) AMENDMENT TO DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT ACT.—Section 5 of the Depart-
ment of Housing and Urban Development Act (42 U.S.C.
3534) is amended by striking subsection (d).
(e) AMENDMENT
TO TITLE 18, UNITED STATES
CODE.—Section 1905 of title 18, United States Code, is
amended by striking ‘‘Office of Federal Housing Enter-
prise Oversight’’ and inserting ‘‘Housing Finance Over-
sight Board’’.
(f) AMENDMENTS TO FLOOD DISASTER PROTECTION
ACT OF 1973.—Section 102(f)(3)(A) of the Flood Dis-
aster Protection Act of 1973 (42 U.S.C. 4012a is
amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ and in-
serting ‘‘Housing Finance Oversight Board’’; and
(2) by striking ‘‘Director of such Office’’ and
inserting ‘‘Board’’.
SEC. 162. EFFECTIVE DATE.
Except as specifically provided otherwise in this title,
the amendments made by this title shall take effect on,
and shall apply beginning on, the expiration of the 270-
day period beginning on the date of the enactment of this
Act.
TITLE II—TRANSFER OF FUNC-
TIONS, 
PERSONNEL, 
AND
PROPERTY
SEC. 201. ABOLISHMENT OF OFHEO AND FEDERAL HOUS-
ING FINANCE BOARD.
(a) IN GENERAL.—Effective at the end of the 270-
day period beginning on the date of the enactment of this
Act, the following entities and positions are abolished:
(1) The Office of Federal Housing Enterprise
Oversight of the Department of Housing and Urban
Development and the positions of the Director and
Deputy Director of such Office.
(2) The Federal Housing Finance Board and
the Board of Directors of such Board.
(b) DISPOSITION OF AFFAIRS.—
(1) IN GENERAL.—During the 270-day period
beginning on the date of the enactment of this Act,
the Director of the Office of Federal Housing Enter-
prise Oversight and the Chairperson of the Federal
Housing Finance Board shall, solely for the purpose
of winding up the affairs of the Office of Federal
Housing Enterprise Oversight and the Federal
Housing Finance Board, respectively—
(A) manage the employees of such Office
and Board and provide for the payment of the
compensation and benefits of any such em-
ployee which accrue before the effective date of
the transfer of such employee pursuant to sec-
tion 203; and
(B) may take any other action necessary
for the purpose of winding up the affairs of the
Office and the Board.
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by title I and the abolishment of
the Office of Federal Housing Enterprise Oversight and
the Federal Housing Finance Board under subsection (a)
of this section may not be construed to affect the status
of any employee of such Office or Board as employees of
an agency of the United States for purposes of any other
provision of law before the effective date of the transfer
of any such employee pursuant to section 203.
(d) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Chairperson of the Hous-
ing Finance Oversight Board may use the property
of the Office of Federal Housing Enterprise Over-
sight and the Federal Housing Finance Board, to
perform functions which have been transferred to
the Housing Finance Oversight Board for such time
as is reasonable to facilitate the orderly transfer of
functions transferred pursuant to any other provi-
sion of this Act or any amendment made by this Act
to any other provision of law.
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States
(including any Federal home loan bank), and any
successor to any such agency, department, or instru-
mentality, which was providing supporting services
to the Office of Federal Housing Enterprise Over-
sight or the Federal Housing Finance Board before
the expiration of the period under subsection (a) in
connection with functions that are transferred to the
Housing Finance Oversight Board shall—
(A) continue to provide such services, on a
reimbursable basis, until the transfer of such
functions is complete; and
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable
transition.
(e) SAVINGS PROVISIONS RELATING TO FHFB.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of
the United States, the Federal Housing Finance
Board, or any other person, which—
(A) arises under or pursuant to the Fed-
eral Home Loan Bank Act or any other provi-
sion of law applicable with respect to such
Board; and
(B) existed on the day before the abolish-
ment under subsection (a) of this section.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Fed-
eral Housing Finance Board, or any Federal home
loan bank with respect to any function of the Board
which was delegated to employees of such bank,
shall abate by reason of the enactment of this Act,
except that the Housing Finance Oversight Board
shall be substituted for the Federal Housing Fi-
nance Board or the Federal home loan bank as a
party to any such action or proceeding.
(f) SAVINGS PROVISIONS RELATING TO OFHEO.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of
the United States, the Director of the Office of Fed-
eral Housing Enterprise Oversight, or any other per-
son, which—
(A) arises under or pursuant to the title
XIII of the Housing and Community Develop-
ment Act of 1992, the Federal National Mort-
gage Association Charter Act, the Federal
Home Loan Mortgage Corporation Act, or any
other provision of law applicable with respect to
such Office; and
(B) existed on the day before the abolish-
ment under subsection (a) of this section.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Di-
rector of the Office of Federal Housing Enterprise
Oversight shall abate by reason of the enactment of
this Act, except that the Housing Finance Oversight
Board shall be substituted for the Director as a
party to any such action or proceeding.
SEC. 202. CONTINUATION AND COORDINATION OF CERTAIN
REGULATIONS.
All regulations, orders, determinations, and resolu-
tions that—
(1) were issued, made, prescribed, or allowed to
become effective by—
(A) the Office of Federal Housing Enter-
prise Oversight;
(B) the Federal Housing Finance Board;
(C) the Secretary of Housing and Urban
Development and that relate to the Secretary’s
authority under title XIII of the Housing and
Community Development Act of 1992, the Fed-
eral National Mortgage Association Charter
Act, or the Federal Home Loan Mortgage Cor-
poration Act; or
(D) a court of competent jurisdiction and
that relate to functions transferred by this Act;
and
(2) are in effect on the date of the abolishment
under section 201(a) of this Act,
shall remain in effect according to the terms of such regu-
lations, orders, determinations, and resolutions and shall
be enforceable by or against the Housing Finance Over-
sight Board until modified, terminated, set aside, or su-
perseded in accordance with applicable law by such Board,
any court of competent jurisdiction, or operation of law.
SEC. 203. TRANSFER AND RIGHTS OF EMPLOYEES OF ABOL-
ISHED AGENCIES.
(a) TRANSFER.—Each employee of the Office of Fed-
eral Housing Enterprise Oversight and each employee of
the Federal Housing Finance Board shall be transferred
to the Housing Finance Oversight Board for employment
no later than the date of the abolishment under section
201(a) of this Act and such transfer shall be deemed a
transfer of function for the purpose of section 3503 of title
5, United States Code.
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position
with the same status, tenure, grade, and pay as that held
on the day immediately preceding the transfer. Each such
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation
for 18 months after the date of transfer, except for cause
or, if the employee is a temporary employee, separated in
accordance with the terms of the appointment.
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND
SENIOR EXECUTIVE SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service or the Sen-
ior Executive Service, any appointment authority es-
tablished pursuant to law or regulations of the Of-
fice of Personnel Management for filling such posi-
tions shall be transferred, subject to paragraph (2).
(2) DECLINE OF TRANSFER.—The Housing Fi-
nance Oversight Board may decline a transfer of au-
thority under paragraph (1) (and the employees ap-
pointed pursuant thereto) to the extent that such
authority relates to positions excepted from the com-
petitive service because of their confidential, policy-
making, policy-determining, or policy-advocating
character, and noncareer positions in the Senior Ex-
ecutive Service (within the meaning of section
3132(a)(7) of title 5, United States Code).
(d) REORGANIZATION.—If the Housing Finance
Oversight Board determines, after the end of the 1-year
period beginning on the date the transfer of functions to
the Board is completed, that a reorganization of the com-
bined work force is required, that reorganization shall be
deemed a major reorganization for purposes of affording
affected employees retirement under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code.
(e) EMPLOYEE BENEFIT PROGRAMS.—Any employee
accepting employment with the Housing Finance Over-
sight Board as a result of such transfer may retain for
18 months after the date such transfer occurs membership
in any employee benefit program of the Federal Housing
Finance Board or the Office of Federal Housing Enter-
prise Oversight, as applicable, including insurance, to
which such employee belongs on the date of the abolish-
ment under section 201(a) if—
(1) the employee does not elect to give up the
benefit or membership in the program; and
(2) the benefit or program is continued by the
Housing Finance Oversight Board.
The difference in the costs between the benefits which
would have been provided by such agency or entity and
those provided by this section shall be paid by the Housing
Finance Oversight Board. If any employee elects to give
up membership in a health insurance program or the
health insurance program is not continued by such Board,
the employee shall be permitted to select an alternate Fed-
eral health insurance program within 30 days of such elec-
tion or notice, without regard to any other regularly sched-
uled open season.
(f) SENIOR EXECUTIVE SERVICE EMPLOYEES.—A
transferring employee in the Senior Executive Service
shall be placed in a comparable position at the agency or
entity to which such employee is transferred.
(g) NOTICE OF POSITIONS.—Transferring employees
shall receive notice of their position assignments not later
than 120 days after the effective date of their transfer.
(h) FEDERAL HOME LOAN BANK PERSONNEL.—
Employees of the Federal home loan banks or the joint
offices of such banks who, on the day before the abolish-
ment under section 201(a), are performing functions or
activities on behalf of the Federal Housing Finance Board
shall be treated as employees of the Federal Housing Fi-
nance Board for purposes of determining, pursuant to
subsection (b)(1), the number of employees performing or
supporting functions or activities of such Board to the ex-
tent such functions or activities are transferred to the
Housing Finance Oversight Board.
SEC. 204. TRANSFER OF PROPERTY AND FACILITIES.
Upon the abolishment under section 201(a), all prop-
erty of the Office of Federal Housing Enterprise Oversight
and the Federal Housing Finance Board shall transfer to
the Housing Finance Oversight Board.
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