‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN-
TERPRISES. 
‘‘(a) RESTRICTION.—No enterprise shall own, as of 
any applicable date in this subsection or thereafter, mort-
gage assets in excess of— 
‘‘(1) upon the expiration of the period referred 
to in section 3(b) of the Government-Sponsored En-
terprises Free Market Reform Act of 2008, 
$850,000,000,000; or 
‘‘(2) on December 31 of each year thereafter, 
80.0 percent of the aggregate amount of mortgage 
assets of the enterprise as of December 31 of the 
immediately preceding calendar year; 
except that in no event shall an enterprise be required 
under this section to own less than $250,000,000,000 in 
mortgage assets. 
‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur-
poses of this section, the term ‘mortgage assets’ means, 
with respect to an enterprise, assets of such enterprise 
consisting of mortgages, mortgage loans, mortgage-related 
securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage in-
vestment conduits and similar assets, in each case to the 
extent such assets would appear on the balance sheet of 
such enterprise in accordance with generally accepted ac-
counting principles in effect in the United States as of 
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September 7, 2008 (as set forth in the opinions and pro-
nouncements of the Accounting Principles Board and the 
American Institute of Certified Public Accountants and 
statements and pronouncements of the Financial Account-
ing Standards Board from time to time; and without giv-
ing any effect to any change that may be made after Sep-
tember 7, 2008, in respect of Statement of Financial Ac-
counting Standards No. 140 or any similar accounting 
standard).’’. 
(2) INCREASE IN MINIMUM CAPITAL REQUIRE-
MENT.—Section 1362 of the Federal Housing En-
terprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4612), as amended by section 1111 
of the Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is amended— 
(A) in subsection (a), by striking ‘‘For 
purposes of this subtitle, the minimum capital 
level for each enterprise shall be’’ and inserting 
‘‘The minimum capital level established under 
subsection (g) for each enterprise may not be 
lower than’’; 
(B) in subsection (c)— 
(i) by striking ‘‘subsections (a) and’’ 
and inserting ‘‘subsection’’; 
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(ii) by striking ‘‘regulated entities’’ 
the first place such term appears and in-
serting ‘‘Federal Home Loan Banks’’; 
(iii) by striking ‘‘for the enterprises,’’; 
(iv) by striking ‘‘, or for both the en-
terprises and the banks,’’; 
(v) by striking ‘‘the level specified in 
subsection (a) for the enterprises or’’; and 
(vi) by striking ‘‘the regulated entities 
operate’’ and inserting ‘‘such banks oper-
ate’’; 
(C) in subsection (d)(1)— 
(i) by striking ‘‘subsections (a) and’’ 
and inserting ‘‘subsection’’; and 
(ii) by striking ‘‘regulated entity’’ 
each place such term appears and inserting 
‘‘Federal home loan bank’’; 
(D) in subsection (e), by striking ‘‘regu-
lated entity’’ each place such term appears and 
inserting ‘‘Federal home loan bank’’; 
(E) in subsection (f)— 
(i) by striking ‘‘the amount of core 
capital maintained by the enterprises,’’; 
and 
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(ii) by striking ‘‘regulated entities’’ 
and inserting ‘‘banks’’; and 
(F) by adding at the end the following new 
subsection: 
‘‘(g) ESTABLISHMENT OF REVISED MINIMUM CAP-
ITAL LEVELS.— 
‘‘(1) IN GENERAL.—The Director shall cause 
the enterprises to achieve and maintain adequate 
capital by establishing minimum levels of capital for 
such the enterprises and by using such other meth-
ods as the Director deems appropriate. 
‘‘(2) AUTHORITY.—The Director shall have the 
authority to establish such minimum level of capital 
for an enterprise in excess of the level specified 
under subsection (a) as the Director, in the Direc-
tor’s discretion, deems to be necessary or appro-
priate in light of the particular circumstances of the 
enterprise. 
‘‘(h) FAILURE TO MAINTAIN REVISED MINIMUM 
CAPITAL LEVELS.— 
‘‘(1) UNSAFE AND UNSOUND PRACTICE OR CON-
DITION.—Failure of a enterprise to maintain capital 
at or above its minimum level as established pursu-
ant to subsection (c) of this section may be deemed 
by the Director, in his discretion, to constitute an 
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unsafe and unsound practice or condition within the 
meaning of this title. 
‘‘(2) 
DIRECTIVE
TO
ACHIEVE
CAPITAL 
LEVEL.— 
‘‘(A) AUTHORITY.—In addition to, or in 
lieu of, any other action authorized by law, in-
cluding paragraph (1), the Director may issue 
a directive to an enterprise that fails to main-
tain capital at or above its required level as es-
tablished pursuant to subsection (c) of this sec-
tion. 
‘‘(B) PLAN.—Such directive may require 
the enterprise to submit and adhere to a plan 
acceptable to the Director describing the means 
and timing by which the enterprise shall achieve 
its required capital level. 
‘‘(C) ENFORCEMENT.—Any such directive 
issued pursuant to this paragraph, including 
plans submitted pursuant thereto, shall be en-
forceable under the provisions of subtitle C of 
this title to the same extent as an effective and 
outstanding order issued pursuant to subtitle C 
of this title which has become final. 
‘‘(3) ADHERENCE TO PLAN.— 
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‘‘(A) CONSIDERATION.—The Director may 
consider such enterprise’s progress in adhering 
to any plan required under this subsection 
whenever such enterprise seeks the requisite ap-
proval of the Director for any proposal which 
would divert earnings, diminish capital, or oth-
erwise impede such enterprise’s progress in 
achieving its minimum capital level. 
‘‘(B) DENIAL.—The Director may deny 
such approval where it determines that such 
proposal would adversely affect the ability of 
the enterprise to comply with such plan.’’. 
(3) REPEAL
OF
INCREASES
TO
CONFORMING 
LOAN LIMITS.— 
(A) REPEAL OF TEMPORARY INCREASE IN 
ECONOMIC STIMULUS ACT.—Section 201 of the 
Economic Stimulus Act of 2008 (Public Law 
110–185) is hereby repealed. 
(B) REPEAL OF GENERAL LIMIT AND PER-
MANENT
HIGH-COST
AREA
INCREASE.—Para-
graph (2) of section 302(b) of the Federal Na-
tional Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)) and paragraph (2) of sec-
tion 305(a) of the Federal Home Loan Mort-
gage Corporation Act (12 U.S.C. 1454(a)(2)) 
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are each amended to read as such sections were 
in effect immediately before the enactment of 
the Housing and Economic Recovery Act of 
2008 (Public Law 110–289). 
(C) REPEAL
OF
NEW
HOUSING
PRICE 
INDEX.—Section 1322 of the Federal Housing 
Enterprises Financial Safety and Soundness 
Act of 1992, as added by section 1124(d) of the 
Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is hereby repealed. 
(D) REPEAL.—Section 1124 of the Hous-
ing and Economic Recovery Act of 2008 (Public 
Law 110–289) is hereby repealed. 
(E) ESTABLISHMENT
OF
CONFORMING 
LOAN LIMIT.—For the year in which the expira-
tion of the period referred to in section 3(b) of 
this section occurs, the limitations governing 
the maximum original principal obligation of 
conventional mortgages that may be purchased 
by the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Cor-
poration, referred to in section 302(b)(2) of the 
Federal National Mortgage Association Charter 
Act (12 U.S.C. 1717(b)(2)) and section 
305(a)(2) of the Federal Home Loan Mortgage 
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Corporation Act (12 U.S.C. 1454(a)(2)), re-
spectively, shall be considered to be— 
(i) $417,000 for a mortgage secured 
by a single-family residence, 
(ii) $533,850 for a mortgage secured 
by a 2-family residence, 
(iii) $645,300 for a mortgage secured 
by a 3-family residence, and 
(iv) $801,950 for a mortgage secured 
by a 4-family residence, 
and such limits shall be adjusted effective each 
January 1 thereafter in accordance with such 
sections 302(b)(2) and 305(a)(2). 
(F) PROHIBITION OF PURCHASE OF MORT-
GAGES
EXCEEDING
MEDIAN
AREA
HOME 
PRICE.— 
(i) FANNIE MAE.—Section 302(b)(2) 
of the Federal National Mortgage Associa-
tion Charter Act (12 U.S.C. 1717(b)(2)) is 
amended by adding at the end the fol-
lowing new sentence: ‘‘Notwithstanding 
any other provision of this title, the cor-
poration may not purchase any mortgage 
for a property having a principal obligation 
that exceeds the median home price, for 
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properties of the same size, for the area in 
which such property subject to the mort-
gage is located.’’. 
(ii) 
FREDDIE
MAC.—Section 
305(a)(2) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 
1454(a)(2)) is amended by adding at the 
end the following new sentence: ‘‘Notwith-
standing any other provision of this title, 
the Corporation may not purchase any 
mortgage for a property having a principal 
obligation that exceeds the median home 
price, for properties of the same size, for 
the area in which such property subject to 
the mortgage is located.’’. 
(4) REQUIREMENT TO PAY STATE AND LOCAL 
TAXES.— 
(A) FANNIE MAE.—Paragraph (2) of sec-
tion 309(c) of the Federal National Mortgage 
Association 
Charter 
Act 
(12 
U.S.C. 
1723a(c)(2)) is amended— 
(i) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(ii) by striking ‘‘except that any’’ and 
inserting ‘‘and any’’. 
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(B) FREDDIE MAC.—Section 303(e) of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1452(e)) is amended— 
(i) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(ii) by striking ‘‘except that any’’ and 
inserting ‘‘and any’’. 
(5) REPEALS RELATING TO REGISTRATION OF 
SECURITIES.— 
(A) FANNIE MAE.— 
(i) 
MORTGAGE-BACKED
SECURI-
TIES.—Section 304(d) of the Federal Na-
tional Mortgage Association Charter Act 
(12 U.S.C. 1719(d)) is amended by strik-
ing the fourth sentence. 
(ii) SUBORDINATE
OBLIGATIONS.— 
Section 304(e) of the Federal National 
Mortgage Association Charter Act (12 
U.S.C. 1719(e)) is amended by striking the 
fourth sentence. 
(B) FREDDIE
MAC.—Section 306 of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1455) is amended by striking sub-
section (g). 
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(6) RECOUPMENT
OF
COSTS
FOR
FEDERAL 
GUARANTEE.— 
(A) ASSESSMENTS.—The Director of the 
Federal Housing Finance Agency shall establish 
and collect from each enterprise assessments in 
the amount determined under subparagraph 
(B). In determining the method and timing for 
making such assessments, the Director shall 
take into consideration the determinations and 
conclusions of the study under subsection (b) of 
this section. 
(B) DETERMINATION OF COSTS OF GUAR-
ANTEE.—Assessments under subparagraph (A) 
with respect to an enterprise shall be in such 
amount as the Director determines necessary to 
recoup to the Federal Government the full value 
of the benefit the enterprise receives from the 
guarantee provided by the Federal Government 
for the obligations and financial viability of the 
enterprise, based upon the dollar value of such 
benefit in the market to such enterprise when 
not operating under conservatorship or receiver-
ship. To determine such amount, the Director 
shall establish a risk-based pricing mechanism 
as the Director considers appropriate, taking 
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into consideration the determinations and con-
clusions of the study under subsection (b) of 
this section. 
(C) 
TREATMENT
OF
RECOUPED 
AMOUNTS.—The Director shall cover into the 
general fund of the Treasury any amounts re-
ceived from assessments made under this para-
graph. 
(b) GAO STUDY
REGARDING
RECOUPMENT
OF 
COSTS FOR FEDERAL GOVERNMENT GUARANTEE.—The 
Comptroller General of the United States shall conduct 
a study to determine a risk-based pricing mechanism to 
accurately determine the value of the benefit the enter-
prises receive from the guarantee provided by the Federal 
Government for the obligations and financial viability of 
the enterprises. Such study shall establish a dollar value 
of such benefit in the market to each enterprise when not 
operating under conservatorship or receivership, shall ana-
lyze various methods of the Federal Government assessing 
a charge for such value received (including methods involv-
ing an annual fee or a fee for each mortgage purchased 
or securitized), and shall make a recommendation of the 
best such method for assessing such charge. Not later 
than 12 months after the date of the enactment of this 
Act, the Comptroller General shall submit to the Congress 
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a report setting forth the determinations and conclusions 
of such study. 
SEC. 5. REQUIREMENT TO PERIODICALLY RENEW CHAR-
TER UNTIL WIND DOWN AND DISSOLUTION. 
(a) REQUIRED RENEWAL; WIND DOWN AND DIS-
SOLUTION UPON NON-RENEWAL.—Upon the expiration of 
the 3-year period that begins upon the expiration of the 
period referred to in section 3(b), unless the charter of 
an enterprise is renewed pursuant to subsection (b) of this 
section, section 6 (relating to wind down of operations and 
dissolution of enterprise) shall apply to the enterprise. 
(b) RENEWAL PROCEDURE.— 
(1) APPLICATION; TIMING.—The Director shall 
provide for each enterprise to apply to the Director, 
before the expiration of the 3-year period under sub-
section (a), for renewal of the charter of the enter-
prise. 
(2) STANDARD.—The Director shall approve 
the application of an enterprise for the renewal of 
the charter of the enterprise if— 
(A) the application includes a certification 
by the enterprise that the enterprise is finan-
cially sound and is complying with all provisions 
of, and amendments made by, section 4 of this 
Act applicable to such enterprise; and 
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(B) the Director verifies that the certifi-
cation made pursuant to subparagraph (A) is 
accurate. 
(c) OPTION TO REAPPLY.—Nothing in this section 
may be construed to require an enterprise to apply under 
this section for renewal of the charter of the enterprise. 
SEC. 6. REQUIRED WIND DOWN OF OPERATIONS AND DIS-
SOLUTION OF ENTERPRISE. 
(a) APPLICABILITY.—This section shall apply to an 
enterprise— 
(1) upon the expiration of the 3-year period re-
ferred to in such section 5(a), to the extent provided 
in such section; and 
(2) if this section has not previously applied to 
the enterprise, upon the expiration of the 6-year pe-
riod that begins upon the expiration of the period re-
ferred to in section 3(b). 
(b) WIND DOWN.—Upon the applicability of this sec-
tion to an enterprise, the Director and the Secretary of 
the Treasury shall jointly take such action, and may pre-
scribe such regulations and procedures, as may be nec-
essary to wind down the operations of an enterprise as 
an entity chartered by the United States Government over 
the duration of the 10-year period beginning upon the ap-
plicability of this section to the enterprise (pursuant to 
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subsection (a)) in an orderly manner consistent with this 
Act and the ongoing obligations of the enterprise. 
(c) DIVISION OF ASSETS AND LIABILITIES; AUTHOR-
ITY TO ESTABLISH HOLDING CORPORATION AND DIS-
SOLUTION TRUST FUND.—The action and procedures re-
quired under subsection (b)— 
(1) shall include the establishment and execu-
tion of plans to provide for an equitable division and 
distribution of assets and liabilities of the enterprise, 
including any liability of the enterprise to the United 
States Government or a Federal reserve bank that 
may continue after the end of the period described 
in subsection(b); and 
(2) may provide for establishment of— 
(A) a holding corporation organized under 
the laws of any State of the United States or 
the District of Columbia for the purposes of the 
reorganization and restructuring of the enter-
prise; and 
(B) one or more trusts to which to trans-
fer— 
(i) remaining debt obligations of the 
enterprise, for the benefit of holders of 
such remaining obligations; or 
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(ii) remaining mortgages held for the 
purpose of backing mortgage-backed secu-
rities, for the benefit of holders of such re-
maining securities. 
(d) REPEAL OF CHARTER.—Effective upon the expi-
ration of the 10-year period referred to in subsection (b) 
for an enterprise, the charter for the enterprise is re-
pealed, 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 outstanding debt obligations and mortgage-backed secu-
rities of the enterprise. 
Æ 
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