(2) by striking ‘‘the enterprise’’ each place such 
term appears in such part (except in section 
1316(b)(3)) and inserting ‘‘the regulated entity’’; 
(3) by striking ‘‘the enterprises’’ each place 
such term appears in such part (except in sections 
1312(c)(2), 1312(e)(2), and 1319B(a)(4)(D)) and 
inserting ‘‘the regulated entities’’; 
(4) by striking ‘‘each enterprise’’ each place 
such term appears in such part and inserting ‘‘each 
regulated entity’’; 
(5) by striking ‘‘Office’’ each place such term 
appears in such part (except in sections 1312(b)(5), 
1315(b), and 1316(g), and section 1317(c)) and in-
serting ‘‘Agency’’; 
(6) in section 1315 (12 U.S.C. 4515)—
(A) in subsection (a)—
(i) in the subsection heading, by strik-
ing ‘‘Office Personnel’’ and inserting ‘‘In 
General’’; and 
(ii) by striking ‘‘The’’ and inserting 
‘‘Subject to titles III and IV of the Federal 
Housing Finance Reform Act of 2005, 
the’’; 
(B) by striking subsections (d) and (f); 
and
(C) by redesignating subsection (e) as sub-
section (d); 
(7) in section 1319A (12 U.S.C. 4520)—
(A) by striking ‘‘(a) In General.—Each en-
terprise’’ and inserting ‘‘Each regulated enti-
ty’’; and 
(B) by striking subsection (b); 
(8) in section 1319B (12 U.S.C. 4521), by 
striking ‘‘Committee on Banking, Finance and 
Urban Affairs’’ each place such term appears and 
inserting ‘‘Committee on Financial Services’’; and 
(9) in section 1319F (12 U.S.C. 4525), striking 
all that follows ‘‘United States Code’’ and inserting 
‘‘, the Agency shall be considered an agency respon-
sible for the regulation or supervision of financial in-
stitutions.’’. 
(b) AMENDMENTS TO FANNIE MAE CHARTER ACT.—
The Federal National 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 ‘‘Director of 
the Federal Housing Finance Agency’’, 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 309—
(A) in subsections (d)(3)(A) and (n)(1), by 
striking ‘‘Banking, Finance and Urban Affairs’’ 
each place such term appears and inserting 
‘‘Financial Services’’; and 
(B) in subsection (m)—
(i) in paragraph (1), by striking ‘‘Sec-
retary’’ the second place such term ap-
pears and inserting ‘‘Director’’; 
(ii) in paragraph (2), by striking 
‘‘Secretary’’ the second place such term 
appears and inserting ‘‘Director’’; and 
(iii) by striking ‘‘Secretary’’ each 
other place such term appears and insert-
ing ‘‘Director of the Federal Housing Fi-
nance Agency’’; and 
(C) in subsection (n), by striking ‘‘Sec-
retary’’ each place such term appears and in-
serting ‘‘Director of the Federal Housing Fi-
nance Agency’’.
(c) AMENDMENTS TO FREDDIE MAC ACT.—The Fed-
eral 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 ‘‘Director of 
the Federal Housing Finance Agency’’, 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 sections 303(h)(1) and 307(f)(1) (12 
U.S.C. 1452(h)(1), 1456(f)(1)), by striking ‘‘Bank-
ing, Finance and Urban Affairs’’ each place such 
term appears and inserting ‘‘Financial Services’’; 
(3) in section 306(i) (12 U.S.C. 1455(i))—
(A) by striking ‘‘1316(c)’’ and inserting 
‘‘306(c)’’; and 
(B) by striking ‘‘section 106’’ and insert-
ing ‘‘section 1316’’; and 
(4) in section 307 (12 U.S.C. 1456))—
(A) in subsection (e)—
(i) in paragraph (1), by striking ‘‘Sec-
retary’’ the second place such term ap-
pears and inserting ‘‘Director’’; 
(ii) in paragraph (2), by striking 
‘‘Secretary’’ the second place such term 
appears and inserting ‘‘Director’’; and 
(iii) by striking ‘‘Secretary’’ each 
other place such term appears and insert-
ing ‘‘Director of the Federal Housing Fi-
nance Agency’’; and 
(B) in subsection (f), by striking ‘‘Sec-
retary’’ each place such term appears and in-
serting ‘‘Director of the Federal Housing Fi-
nance Agency’’. 
Subtitle B—Improvement of 
Mission Supervision 
SEC. 121. TRANSFER OF PROGRAM AND ACTIVITIES AP-
PROVAL AND HOUSING GOAL OVERSIGHT. 
Part 2 of subtitle A of title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4541 et 
seq.) is amended—
(1) by striking the designation and heading for 
the part and inserting the following:
‘‘PART 2—PROGRAM AND ACTIVITIES APPROVAL 
BY DIRECTOR, CORPORATE GOVERNANCE, 
AND ESTABLISHMENT OF HOUSING GOALS’’; 
and 
(2) by striking sections 1321 and 1322. 
SEC. 122. REVIEW BY DIRECTOR OF NEW PROGRAMS AND 
ACTIVITIES OF ENTERPRISES. 
(a) IN GENERAL.—Part 2 of subtitle A of title XIII 
of the Housing and Community Development Act of 1992 
is amended by inserting before section 1323 (12 U.S.C. 
4543) the following new section: 
‘‘SEC. 1321. REVIEW AND APPROVAL BY DIRECTOR OF NEW 
PROGRAMS AND BUSINESS ACTIVITIES OF 
ENTERPRISES. 
‘‘(a) LIMITATION ON AUTHORITY TO UNDERTAKE 
PROGRAMS AND ACTIVITIES.—An enterprise may not un-
dertake any new program, including a pilot program, or 
any new business activity except in accordance with the 
procedures set forth in this section and orders and regula-
tions issued under this section. 
‘‘(b) NEW PROGRAMS.—
‘‘(1) PRIOR APPROVAL REQUIREMENT.—An en-
terprise may not commence any new program before 
it has obtained the approval of the Director, pursu-
ant to this subsection, for the new program.
‘‘(2) APPLICATION.—The Director shall, by 
order or regulation, require that an enterprise shall, 
to obtain a determination by the Director regarding 
approval of a new program by the enterprise, submit 
to the Director a written application for the new 
program in a format as prescribed by the Director. 
‘‘(3) NOTICE.—Immediately upon receipt of a 
complete application for a new program, the Direc-
tor shall cause to be published in the Federal Reg-
ister notice of the receipt of such application and of 
the period for public comment pursuant to para-
graph (4) regarding such new program, and a de-
scription of the new program proposed by the appli-
cation. 
‘‘(4) PUBLIC COMMENT PERIOD.—During the 
30-day period beginning upon publication pursuant 
to paragraph (3) of a notice regarding such an ap-
plication, the Director shall receive public comments 
regarding the new program. 
‘‘(5) DETERMINATION.—Not less than 15 days 
after the conclusion of the public comment period 
pursuant to paragraph (4) regarding an application 
but not more than 30 days after the conclusion of 
such comment period, the Director shall approve,
conditionally approve, or reject such program, in 
writing. 
‘‘(6) STANDARD FOR APPROVAL.—The Director 
may approve, or conditionally approve, a new pro-
gram of an enterprise only if the Director deter-
mines, taking into consideration any relevant infor-
mation and comments received during the public 
comment period, that such new program—
‘‘(A) does not contravene and is not incon-
sistent with the purposes of this title, the Fed-
eral National Mortgage Association Charter 
Act, or the Federal Home Loan Mortgage Cor-
poration Act, as such purposes are determined 
taking into consideration the definitions of the 
terms ‘mortgage loan origination’ and ‘sec-
ondary mortgage market’ pursuant to section 
1303; 
‘‘(B) is not otherwise inconsistent with the 
safety and soundness of the enterprise; and 
‘‘(C) is in the public interest. 
‘‘(7) LIMITATION.—The Director, in imple-
menting this subsection, may not prevent an enter-
prise from continuing to offer the automated loan 
underwriting system in existence on the date of the 
enactment of the Federal Housing Finance Reform
Act of 2005 or continuing to engage in counseling 
and education activities. 
‘‘(c) NEW BUSINESS ACTIVITIES.—
‘‘(1) AUTHORITY OF DIRECTOR TO PROHIBIT 
NEW
BUSINESS
ACTIVITIES.—The Director shall 
have authority to prohibit any new business activity 
by an enterprise if the Director determines, in writ-
ing, that such activity—
‘‘(A) contravenes or is inconsistent with 
the purposes of this title, the Federal National 
Mortgage Association Charter Act, or the Fed-
eral Home Loan Mortgage Corporation Act; 
‘‘(B) is otherwise inconsistent with the 
safety and soundness of the enterprise; or 
‘‘(C) is not in the public interest. 
‘‘(2) NOTIFICATION OF NEW BUSINESS ACTIVI-
TIES.—An enterprise that undertakes any new busi-
ness activity shall provide written notice of the activ-
ity to the Director and may commence the new busi-
ness activity only in accordance with paragraph (4). 
‘‘(3) DIRECTOR DETERMINATION OF APPLICA-
BLE PROCEDURE.—
‘‘(A) TIMING.—Immediately upon receipt 
of any notice under paragraph (2) regarding a 
new business activity, the Director shall under-
take a determination under subparagraph (B) 
of this paragraph regarding the new business 
activity. 
‘‘(B) DETERMINATION
AND
TREATMENT 
AS NEW PROGRAM.—If the Director determines 
that any new business activity consists of, re-
lates to, or involves any new program—
‘‘(i) the Director shall notify the en-
terprise of the determination; 
‘‘(ii) the new business activity de-
scribed in the notice shall be considered a 
new program for purposes of this section; 
and 
‘‘(iii) the Director shall prohibit the 
enterprise from carrying out the activity 
except to the extent that approval for the 
activity is obtained pursuant to subsection 
(b). 
‘‘(4) COMMENCEMENT.—An enterprise may 
commence a new business activity—
‘‘(A) if the Director issues a written ap-
proval regarding such new business activity, im-
mediately upon such issuance or at such other 
time as provided by the Director in such letter; 
or
‘‘(B) if, during the 30-day period begin-
ning upon receipt by the Director of notice pur-
suant to paragraph (2) regarding a new busi-
ness activity, the Director has not issued to the 
enterprise a written approval or denial of the 
new business activity, upon the expiration of 
such 30-day period. 
‘‘(d) APPROVAL AND CONDITIONAL APPROVAL.—The 
Director may at any time conditionally approve the under-
taking of a particular new program or new business activ-
ity by an enterprise and set forth the terms and conditions 
that apply to the program or activity with which the enter-
prise shall comply if it undertakes the new program or 
activity. Such approval may, in the discretion of the Direc-
tor, be in the form of a written agreement between the 
enterprise and the Director and shall be subject to such 
terms and conditions therein. Such a written agreement 
or conditional approval shall be enforceable under subtitle 
C. 
‘‘(e) DETERMINATION AND TREATMENT OF ACTIVITY 
AS NEW BUSINESS ACTIVITY.—If the Director determines 
that any activity of an enterprise consists of, relates to, 
or involves any new business activity—
‘‘(1) the Director shall notify the enterprise of 
the determination;
‘‘(2) such activity shall be considered a new 
business activity for purposes of this section; and 
‘‘(3) the Director shall prohibit the enterprise 
from carrying out the activity except to the extent 
that approval for the activity is obtained pursuant to 
subsection (c). 
‘‘(f) EFFECT ON OTHER AUTHORITIES.—
‘‘(1) EXAMINATIONS.—Nothing in this section 
may be construed to limit, in any manner, any other 
authority or right the Director may have under 
other provisions of law to conduct an examination of 
an enterprise. 
‘‘(2) REQUESTS FOR INFORMATION.—Nothing 
in this section may be construed to limit the right 
of the Director at any time to request additional in-
formation from an enterprise concerning any busi-
ness activity. 
‘‘(3) NO IMPLIED RIGHT OF ACTION.—This sec-
tion shall not create any private right of action 
against an enterprise or any director or executive of-
ficer of an enterprise, or impair any private right of 
action under other applicable law. 
‘‘(4) NO LIMITATION.—Nothing in this section 
may be construed to restrict the general supervisory 
and regulatory authority of the Director over all pro-
grams, products, activities, or business operations of 
any kind. 
‘‘(g) REPORT ON PROGRAMS AND BUSINESS ACTIVI-
TIES.—Not later than the expiration of the 180-day period 
beginning on the effective date under section 185 of the 
Federal Housing Finance Reform Act of 2005, each enter-
prise shall submit to the Director a report identifying and 
describing each program and business activity of the en-
terprise engaged in or existing as of the submission of the 
report. 
‘‘(h) REGULATIONS.—The Director shall by order or 
regulation issue rules and procedures to implement this 
section, including in the discretion of the Director, such 
definitions, interpretations, forms, and other guidances as 
the Director considers appropriate.’’. 
(b) DEFINITIONS.—Section 1303 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4502), 
as amended by section 2 of this Act, is further amended—
(1) by redesignating paragraphs (17) through 
(23) as paragraphs (20) through (26), respectively; 
(2) by inserting after paragraph (16) the fol-
lowing new paragraph: 
‘‘(19) NEW
BUSINESS
ACTIVITY.—The term 
‘new business activity’ means, with respect to an en-
terprise, a business activity that—
‘‘(A) is materially changed or materially 
different from any of the business activities 
that the enterprise was engaging in on the ef-
fective date under section 185 of the Federal 
Housing Finance Reform Act of 2005; and 
‘‘(B) the enterprise has not previously ob-
tained authorization, pursuant to the provisions 
of section 1321(c), to offer, undertake, trans-
act, conduct, or engage in.’’; 
(3) by redesignating paragraphs (15) and (16) 
as paragraphs (17) and (18), respectively; 
(4) by inserting after paragraph (14) the fol-
lowing new paragraph: 
‘‘(16) MORTGAGE MARKETS.—The terms ‘mort-
gage loan origination’ and ‘secondary mortgage mar-
ket’ shall have such meanings as the Director shall, 
by regulation, prescribe consistent with the Federal 
National Mortgage Association Charter Act and the 
Federal Home Loan Mortgage Corporation Act. The 
Director shall issue such regulations not later than 
the expiration of the 12-month period beginning on 
the effective date under section 185 of the Federal 
Housing Finance Reform Act of 2005, and the Di-
rector shall review such regulations on a periodic 
basis.’’;
(5) by redesignating paragraphs (5) through 
(14) as paragraphs (6) through (15), respectively; 
and 
(6) by inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) BUSINESS ACTIVITY.—The term ‘business 
activity’ means, with respect to an enterprise, any 
offering, undertaking, transacting, conducting, or 
engaging in any conduct, activity, or product by the 
enterprise, as the Director shall provide.’’. 
(c) CONFORMING AMENDMENTS.—
(1) FANNIE
MAE.—Section 302(b)(6) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(6)) is amended—
(A) by striking ‘‘new program (as such 
term is’’ and inserting ‘‘new program or new 
business activity (as such terms are’’; and 
(B) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ 
and inserting ‘‘except in accordance with sec-
tion 1321’’. 
(2) FREDDIE MAC.—Section 305(c) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(c)) is amended—
(A) by striking ‘‘new program (as such 
term is’’ and inserting ‘‘new program or new 
business activity (as such terms are’’; and 
(B) by striking ‘‘before obtaining the ap-
proval of the Secretary under section 1322’’ 
and inserting ‘‘except in accordance with sec-
tion 1321’’. 
SEC. 123. CONFORMING LOAN LIMITS. 
(a) FANNIE MAE.—
(1) GENERAL LIMIT.—Section 302(b)(2) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1717(b)(2)) is amended by striking the 
7th and 8th sentences and inserting the following 
new sentences: ‘‘Such limitations shall not exceed 
$359,650 for a mortgage secured by a single-family 
residence, $460,400 for a mortgage secured by a 2-
family residence, $556,500 for a mortgage secured 
by a 3-family residence, and $691,600 for a mort-
gage secured by a 4-family residence, except that 
such maximum limitations shall be adjusted effective 
January 1 of each year beginning after the effective 
date under section 185 of the Federal Housing Fi-
nance Reform Act of 2005, subject to the limitations 
in this paragraph. Each adjustment shall be made 
by adding to or subtracting from each such amount
(as it may have been previously adjusted) a percent-
age thereof equal to the percentage increase or de-
crease, during the most recent 12-month or fourth-
quarter period ending before the time of determining 
such annual adjustment, in the housing price index 
maintained by the Director of the Federal Housing 
Finance Agency (pursuant to section 1322 of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 4541)).’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Char-
ter Act is (12 U.S.C. 1717(b)(2)) is amended by 
adding after the period at the end the following: 
‘‘Such foregoing limitations shall also be increased 
with respect to properties of a particular size located 
in any area for which the median price for such size 
residence exceeds the foregoing limitation for such 
size residence, to the lesser of 150 percent of such 
foregoing limitation for such size residence or the 
amount that is equal to the median price in such 
area for such size residence, except that, subject to 
the order, if any, issued by the Director of the Fed-
eral Housing Finance Agency pursuant to section 
123(d)(3) of the Federal Housing Finance Reform 
Act of 2005, such increase shall apply only with re-