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‘‘(1) FEDERAL HOME LOAN BANK; MEMBER.— 
The terms ‘Federal Home Loan Bank’ and ‘member’, 
have the same meanings as in section 2 of the Federal 
Home Loan Bank Act. 
‘‘(2) FEDERAL
NATIONAL
MORTGAGE
ASSOCIA-
TION.—The term ‘Federal National Mortgage Associa-
tion’ means the corporation created by the Federal 
National Mortgage Association Charter Act. 
‘‘(3) FEDERAL HOME LOAN MORTGAGE CORPORA-
TION.—The term ‘Federal Home Loan Mortgage Cor-
poration’ means the corporation created by the Fed-
eral Home Loan Mortgage Corporation Act.’’. 
SEC. 1113. PROHIBITION AND WITHHOLDING OF EXECUTIVE 
COMPENSATION. 
(a) IN GENERAL.—Section 1318 of the Federal Hous-
ing Enterprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4518) is amended— 
(1) in the section heading, by striking ‘‘OF EX-
CESSIVE’’ and inserting ‘‘AND WITHHOLDING OF 
EXECUTIVE’’; 
(2) in subsection (a)— 
(A) by striking ‘‘enterprise’’ and inserting 
‘‘regulated entity’’; and 
(B) by striking ‘‘enterprises’’ and inserting 
‘‘regulated entities’’;
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(3) by redesignating subsection (b) as subsection 
(d); and 
(4) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) FACTORS.—In making any determination under 
subsection (a), the Director may take into consideration 
any factors the Director considers relevant, including any 
wrongdoing on the part of the executive officer, and such 
wrongdoing shall include any fraudulent act or omission, 
breach of trust or fiduciary duty, violation of law, rule, reg-
ulation, order, or written agreement, and insider abuse with 
respect to the regulated entity. The approval of an agree-
ment or contract pursuant to section 309(d)(3)(B) of the 
Federal National Mortgage Association Charter Act (12 
U.S.C. 1723a(d)(3)(B)) or section 303(h)(2) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1452(h)(2)) shall not preclude the Director from making 
any subsequent determination under subsection (a). 
‘‘(c) WITHHOLDING OF COMPENSATION.—In carrying 
out subsection (a), the Director may require a regulated en-
tity to withhold any payment, transfer, or disbursement of 
compensation to an executive officer, or to place such com-
pensation in an escrow account, during the review of the 
reasonableness and comparability of compensation.’’. 
(b) CONFORMING AMENDMENTS.—
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(1) FANNIE MAE.—Section 309(d) of the Federal 
National Mortgage Association Charter Act (12 
U.S.C. 1723a(d)) is amended by adding at the end 
the following new paragraph: 
‘‘(4) Notwithstanding any other provision of this sec-
tion, the corporation shall not transfer, disburse, or pay 
compensation to any executive officer, or enter into an 
agreement with such executive officer, without the approval 
of the Director, for matters being reviewed under section 
1318 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4518).’’. 
(2) FREDDIE MAC.—Section 303(h) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1452(h)) is amended by adding at the end the 
following new paragraph: 
‘‘(4) Notwithstanding any other provision of this sec-
tion, the Corporation shall not transfer, disburse, or pay 
compensation to any executive officer, or enter into an 
agreement with such executive officer, without the approval 
of the Director, for matters being reviewed under section 
1318 of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4518).’’. 
(3) FEDERAL HOME LOAN BANKS.—Section 7 of 
the Federal Home Loan Bank Act (12 U.S.C. 1427)
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is amended by adding at the end the following new 
subsection: 
‘‘(l) WITHHOLDING
OF
COMPENSATION.—Notwith-
standing any other provision of this section, a Federal 
Home Loan Bank shall not transfer, disburse, or pay com-
pensation to any executive officer, or enter into an agree-
ment with such executive officer, without the approval of 
the Director, for matters being reviewed under section 1318 
of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992 (12 U.S.C. 4518).’’. 
SEC. 1114. LIMIT ON GOLDEN PARACHUTES. 
Section 1318 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 U.S.C. 4518) 
is amended by adding at the end the following: 
‘‘(e) AUTHORITY TO REGULATE OR PROHIBIT CER-
TAIN FORMS OF BENEFITS TO AFFILIATED PARTIES.— 
‘‘(1) GOLDEN
PARACHUTES
AND
INDEMNIFICA-
TION
PAYMENTS.—The Director may prohibit or 
limit, by regulation or order, any golden parachute 
payment or indemnification payment. 
‘‘(2) FACTORS TO BE TAKEN INTO ACCOUNT.— 
The Director shall prescribe, by regulation, the factors 
to be considered by the Director in taking any action 
pursuant to paragraph (1), which may include such 
factors as—
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‘‘(A) whether there is a reasonable basis to 
believe that the affiliated party has committed 
any fraudulent act or omission, breach of trust 
or fiduciary duty, or insider abuse with regard 
to the regulated entity that has had a material 
effect on the financial condition of the regulated 
entity; 
‘‘(B) whether there is a reasonable basis to 
believe that the affiliated party is substantially 
responsible for the insolvency of the regulated en-
tity, the appointment of a conservator or receiver 
for the regulated entity, or the troubled condition 
of the regulated entity (as defined in regulations 
prescribed by the Director); 
‘‘(C) whether there is a reasonable basis to 
believe that the affiliated party has materially 
violated any applicable provision of Federal or 
State law or regulation that has had a material 
effect on the financial condition of the regulated 
entity; 
‘‘(D) whether the affiliated party was in a 
position of managerial or fiduciary responsi-
bility; and
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‘‘(E) the length of time that the party was 
affiliated with the regulated entity, and the de-
gree to which— 
‘‘(i) the payment reasonably reflects 
compensation earned over the period of em-
ployment; and 
‘‘(ii) the compensation involved rep-
resents a reasonable payment for services 
rendered. 
‘‘(3) CERTAIN PAYMENTS PROHIBITED.—No reg-
ulated entity may prepay the salary or any liability 
or legal expense of any affiliated party if such pay-
ment is made— 
‘‘(A) in contemplation of the insolvency of 
such regulated entity, or after the commission of 
an act of insolvency; and 
‘‘(B) with a view to, or having the result 
of— 
‘‘(i) preventing the proper application 
of the assets of the regulated entity to credi-
tors; or 
‘‘(ii) preferring one creditor over an-
other. 
‘‘(4) GOLDEN PARACHUTE PAYMENT DEFINED.—
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‘‘(2) RIGHTS; SALE OF OBLIGATIONS AND SECU-
RITIES.— 
‘‘(A) EXERCISE OF RIGHTS.—The Secretary 
of the Treasury may, at any time, exercise any 
rights received in connection with such pur-
chases. 
‘‘(B) SALE
OF
OBLIGATION
AND
SECURI-
TIES.—The Secretary of the Treasury may, at 
any time, subject to the terms of the security or 
otherwise upon terms and conditions and at 
prices determined by the Secretary, sell any obli-
gation or security acquired by the Secretary 
under this subsection. 
‘‘(C) APPLICATION
OF
SUNSET
TO
PUR-
CHASED OBLIGATIONS OR SECURITIES.—The au-
thority of the Secretary of the Treasury to hold, 
exercise any rights received in connection with, 
or sell, any obligations or securities purchased is 
not subject to the provisions of paragraph (4). 
‘‘(3) FUNDING.—For the purpose of the authori-
ties granted in this subsection, the Secretary of the 
Treasury may use the proceeds of the sale of any secu-
rities issued under chapter 31 of Title 31, and the 
purposes for which securities may be issued under 
chapter 31 of Title 31 are extended to include such
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purchases and the exercise of any rights in connection 
with such purchases. Any funds expended for the pur-
chase of, or modifications to, obligations and securi-
ties, or the exercise of any rights received in connec-
tion with such purchases under this subsection shall 
be deemed appropriated at the time of such purchase, 
modification, or exercise. 
‘‘(4) TERMINATION OF AUTHORITY.—The author-
ity under this subsection (g), with the exception of 
paragraphs (2) and (3) of this subsection, shall expire 
December 31, 2009. 
‘‘(5) AUTHORITY OF THE DIRECTOR WITH RE-
SPECT TO EXECUTIVE COMPENSATION.—The Director 
shall have the power to approve, disapprove, or mod-
ify the executive compensation of the corporation, as 
defined under Regulation S-K, 17 C.F.R. 229.’’. 
(b) FREDDIE MAC.—Section 306 of the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 1455) is 
amended by adding at the end the following new subsection: 
‘‘(l) TEMPORARY AUTHORITY OF TREASURY TO PUR-
CHASE OBLIGATIONS AND SECURITIES; CONDITIONS.— 
‘‘(1) AUTHORITY TO PURCHASE.— 
‘‘(A) GENERAL AUTHORITY.—In addition to 
the authority under subsection (c) of this section, 
the Secretary of the Treasury is authorized to
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purchase any obligations and other securities 
issued by the Corporation under any section of 
this Act, on such terms and conditions as the 
Secretary may determine and in such amounts 
as the Secretary may determine. Nothing in this 
subsection requires the Corporation to issue obli-
gations or securities to the Secretary without 
mutual agreement between the Secretary and the 
Corporation. Nothing in this subsection permits 
or authorizes the Secretary, without the agree-
ment of the Corporation, to engage in open mar-
ket purchases of the common securities of the 
Corporation. 
‘‘(B) 
EMERGENCY
DETERMINATION
RE-
QUIRED.—In connection with any use of this au-
thority, the Secretary must determine that such 
actions are necessary to— 
‘‘(i) provide stability to the financial 
markets; 
‘‘(ii) prevent disruptions in the avail-
ability of mortgage finance; and 
‘‘(iii) protect the taxpayer. 
‘‘(C) CONSIDERATIONS.—To protect the tax-
payers, the Secretary of the Treasury shall take 
into consideration the following in connection
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with exercising the authority contained in this 
paragraph: 
‘‘(i) The need for preferences or prior-
ities regarding payments to the Govern-
ment. 
‘‘(ii) Limits on maturity or disposi-
tion of obligations or securities to be pur-
chased. 
‘‘(iii) The Corporation’s plan for the 
orderly resumption of private market fund-
ing or capital market access. 
‘‘(iv) The probability of the Corpora-
tion fulfilling the terms of any such obliga-
tion or other security, including repayment. 
‘‘(v) The need to maintain the Cor-
poration’s status as a private shareholder- 
owned company. 
‘‘(vi) Restrictions on the use of Cor-
poration resources, including limitations on 
the payment of dividends and executive 
compensation and any such other terms and 
conditions as appropriate for those pur-
poses. 
‘‘(D) REPORTS TO CONGRESS.—Upon exer-
cise of this authority, the Secretary shall report
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to the Committees on the Budget, Financial 
Services, and Ways and Means of the House of 
Representatives and the Committees on the 
Budget, Finance, and Banking, Housing, and 
Urban Affairs of the Senate as to the necessity 
for the purchase and the determinations made by 
the Secretary under subparagraph (B) and with 
respect to the considerations required under sub-
paragraph (C), and the size, terms, and prob-
ability of repayment or fulfillment of other terms 
of such purchase. 
‘‘(2) RIGHTS; SALE OF OBLIGATIONS AND SECU-
RITIES.— 
‘‘(A) EXERCISE OF RIGHTS.—The Secretary 
of the Treasury may, at any time, exercise any 
rights received in connection with such pur-
chases. 
‘‘(B) SALE
OF
OBLIGATION
AND
SECURI-
TIES.—The Secretary of the Treasury may, at 
any time, subject to the terms of the security or 
otherwise upon terms and conditions and at 
prices determined by the Secretary, sell any obli-
gation or security acquired by the Secretary 
under this subsection.
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‘‘(C) APPLICATION
OF
SUNSET
TO
PUR-
CHASED OBLIGATIONS OR SECURITIES.—The au-
thority of the Secretary of the Treasury to hold, 
exercise any rights received in connection with, 
or sell, any obligations or securities purchased is 
not subject to the provisions of paragraph (4). 
‘‘(3) FUNDING.—For the purpose of the authori-
ties granted in this subsection, the Secretary of the 
Treasury may use the proceeds of the sale of any secu-
rities issued under chapter 31 of Title 31, and the 
purposes for which securities may be issued under 
chapter 31 of Title 31 are extended to include such 
purchases and the exercise of any rights in connection 
with such purchases. Any funds expended for the pur-
chase of, or modifications to, obligations and securi-
ties, or the exercise of any rights received in connec-
tion with such purchases under this subsection shall 
be deemed appropriated at the time of such purchase, 
modification, or exercise. 
‘‘(4) TERMINATION OF AUTHORITY.—The author-
ity under this subsection (l), with the exception of 
paragraphs (2) and (3) of this subsection, shall expire 
December 31, 2009. 
‘‘(5) AUTHORITY OF THE DIRECTOR WITH RE-
SPECT TO EXECUTIVE COMPENSATION.—The Director
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ability of repayment or fulfillment of other terms 
of such purchase. 
‘‘(2) RIGHTS; SALE OF OBLIGATIONS AND SECU-
RITIES.— 
‘‘(A) EXERCISE OF RIGHTS.—The Secretary 
of the Treasury may, at any time, exercise any 
rights received in connection with such pur-
chases. 
‘‘(B) SALE
OF
OBLIGATIONS.—The Sec-
retary of the Treasury may, at any time, subject 
to the terms of the security or otherwise upon 
terms and conditions and at prices determined 
by the Secretary, sell any obligation acquired by 
the Secretary under this subsection. 
‘‘(C) APPLICATION
OF
SUNSET
TO
PUR-
CHASED
OBLIGATIONS.—The authority of the 
Secretary of the Treasury to hold, exercise any 
rights received in connection with, or sell, any 
obligations purchased is not subject to the provi-
sions of paragraph (4). 
‘‘(3) FUNDING.—For the purpose of the authori-
ties granted in this subsection, the Secretary of the 
Treasury may use the proceeds of the sale of any secu-
rities issued under chapter 31 of Title 31, and the 
purposes for which securities may be issued under
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chapter 31 of Title 31 are extended to include such 
purchases and the exercise of any rights in connection 
with such purchases. Any funds expended for the pur-
chase of, or modifications to, obligations and securi-
ties, or the exercise of any rights received in connec-
tion with such purchases under this subsection shall 
be deemed appropriated at the time of such purchase, 
modification, or exercise. 
‘‘(4) TERMINATION OF AUTHORITY.—The author-
ity under this subsection (l), with the exception of 
paragraphs (2) and (3) of this subsection, shall expire 
December 31, 2009. 
‘‘(5) AUTHORITY OF THE DIRECTOR WITH RE-
SPECT TO EXECUTIVE COMPENSATION.—The Director 
shall have the power to approve, disapprove, or mod-
ify the executive compensation of the Federal Home 
Loan Bank, as defined under Regulation S-K, 17 
C.F.R. 229.’’. 
SEC. 1118. CONSULTATION BETWEEN THE DIRECTOR OF 
THE FEDERAL HOUSING FINANCE AGENCY 
AND THE BOARD OF GOVERNORS OF THE 
FEDERAL RESERVE SYSTEM TO ENSURE FI-
NANCIAL MARKET STABILITY . 
Subsection (a) of section 1313 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992
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(12 U.S.C. 4513), as amended by the preceding provisions 
of this Act, is further amended by adding at the end the 
following new paragraph: 
‘‘(3) COORDINATION
WITH
THE
CHAIRMAN
OF 
THE BOARD OF GOVERNORS OF THE FEDERAL RE-
SERVE SYSTEM.— 
‘‘(A) CONSULTATION.— The Director shall 
consult with, and consider the views of, the 
Chairman of the Board of Governors of the Fed-
eral Reserve System, with respect to the risks 
posed by the regulated entities to the financial 
system, prior to issuing any proposed or final 
regulations, orders, and guidelines with respect 
to the exercise of the additional authority pro-
vided in this Act regarding prudential manage-
ment and operations standards, safe and sound 
operations of, and capital requirements and 
portfolio standards applicable to the regulated 
entities (as such term is defined in section 1303). 
The Director also shall consult with the Chair-
man regarding any decision to place a regulated 
entity into conservatorship or receivership. 
‘‘(B) INFORMATION SHARING.—To facilitate 
the consultative process, the Director shall share 
information with the Board of Governors of the
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Federal Reserve System on a regular, periodic 
basis as determined by the Director and the 
Board regarding the capital, asset and liabil-
ities, financial condition, and risk management 
practices of the regulated entities as well as any 
information related to financial market stability. 
‘‘(C) TERMINATION OF CONSULTATION RE-
QUIREMENT.—The requirement of the Director to 
consult with the Board of Governors of the Fed-
eral Reserve System under this paragraph shall 
expire at the conclusion of December 31, 2009.’’. 
Subtitle B—Improvement of Mission 
Supervision 
SEC. 1121. TRANSFER OF PROGRAM APPROVAL AND HOUS-
ING GOAL OVERSIGHT. 
Part 2 of subtitle A of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4541 et seq.) is amended— 
(1) by striking the heading for the part and in-
serting the following: 
‘‘PART 2—ADDITIONAL AUTHORITIES OF THE 
DIRECTOR’’; 
and 
(2) by striking sections 1321 and 1322.
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SEC. 1122. ASSUMPTION BY THE DIRECTOR OF CERTAIN 
OTHER HUD RESPONSIBILITIES. 
(a) IN GENERAL.—Part 2 of subtitle A of the Federal 
Housing Enterprises Financial Safety and Soundness Act 
of 1992 (12 U.S.C. 4541 et seq.) is amended— 
(1) by striking ‘‘Secretary’’ each place that term 
appears and inserting ‘‘Director’’ in each of sections 
1323, 1326, 1327, 1328, and 1336; and 
(2) by striking sections 1338 and 1349 (12 
U.S.C. 4562 note and 4589). 
(b) RETENTION
OF FAIR HOUSING RESPONSIBIL-
ITIES.—Section 1325 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4545) is amended in the matter preceding paragraph (1), 
by inserting ‘‘of Housing and Urban Development’’ after 
‘‘The Secretary’’. 
SEC. 1123. REVIEW OF ENTERPRISE PRODUCTS. 
Part 2 of subtitle A of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4541 et seq.) is amended by inserting before section 1323 
the following: 
‘‘SEC. 1321. PRIOR APPROVAL AUTHORITY FOR PRODUCTS. 
‘‘(a) IN GENERAL.—The Director shall require each 
enterprise to obtain the approval of the Director for any 
product of the enterprise before initially offering the prod-
uct.
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‘‘(b) STANDARD FOR APPROVAL.—In considering any 
request for approval of a product pursuant to subsection 
(a), the Director shall make a determination that— 
‘‘(1) in the case of a product of the Federal Na-
tional Mortgage Association, the product is authorized 
under paragraph (2), (3), (4), or (5) of section 302(b) 
or section 304 of the Federal National Mortgage Asso-
ciation Charter Act (12 U.S.C. 1717(b), 1719); 
‘‘(2) in the case of a product of the Federal 
Home Loan Mortgage Corporation, the product is au-
thorized under paragraph (1), (4), or (5) of section 
305(a) of the Federal Home Loan Mortgage Corpora-
tion Act (12 U.S.C. 1454(a)); 
‘‘(3) the product is in the public interest; and 
‘‘(4) the product is consistent with the safety and 
soundness of the enterprise or the mortgage finance 
system. 
‘‘(c) PROCEDURE FOR APPROVAL.— 
‘‘(1) SUBMISSION OF REQUEST.—An enterprise 
shall submit to the Director a written request for ap-
proval of a product that describes the product in such 
form as prescribed by order or regulation of the Di-
rector. 
‘‘(2) REQUEST FOR PUBLIC COMMENT.—Imme-
diately upon receipt of a request for approval of a
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nancing, other than residential mortgage financ-
ing; or 
‘‘(C) any other activity that is substantially 
similar, as determined by rule of the Director 
to— 
‘‘(i) the activities described in subpara-
graphs (A) and (B); and 
‘‘(ii) other activities that have been ap-
proved by the Director in accordance with 
this section. 
‘‘(2) EXPEDITED REVIEW.— 
‘‘(A) ENTERPRISE NOTICE.—For any new 
activity that an enterprise considers not to be a 
product, the enterprise shall provide written no-
tice to the Director of such activity, and may not 
commence such activity until the date of receipt 
of a notice under subparagraph (B) or the expi-
ration of the period described in subparagraph 
(C). The Director shall establish, by regulation, 
the form and content of such written notice. 
‘‘(B) 
DIRECTOR
DETERMINATION.—Not 
later than 15 days after the date of receipt of a 
notice under subparagraph (A), the Director 
shall determine whether such activity is a prod-
uct subject to approval under this section. The
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Director shall, immediately upon so determining, 
notify the enterprise. 
‘‘(C) FAILURE TO ACT.—If the Director fails 
to determine whether such activity is a product 
within the 15-day period described in subpara-
graph (B), the enterprise may commence the new 
activity in accordance with subparagraph (A). 
‘‘(f) NO LIMITATION.—Nothing in this section may be 
construed to restrict— 
‘‘(1) the safety and soundness authority of the 
Director over all new and existing products or activi-
ties; or 
‘‘(2) the authority of the Director to review all 
new and existing products or activities to determine 
that such products or activities are consistent with 
the statutory mission of an enterprise.’’. 
SEC. 1124. 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 $417,000 
for a mortgage secured by a single-family residence, 
$533,850 for a mortgage secured by a 2-family resi-
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dence, $645,300 for a mortgage secured by a 3-family 
residence, and $801,950 for a mortgage secured by a 
4-family residence, except that such maximum limita-
tions shall be adjusted effective January 1 of each 
year beginning after the effective date of the Federal 
Housing Finance Regulatory Reform Act of 2008, 
subject to the limitations in this paragraph. Each ad-
justment shall be made by adding to each such 
amount (as it may have been previously adjusted) a 
percentage thereof equal to the percentage increase, 
during the most recent 12-month or 4-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 Federal Housing En-
terprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4541)). If the change in such house price 
index during the most recent 12-month or 4-quarter 
period ending before the time of determining such an-
nual adjustment is a decrease, then no adjustment 
shall be made for the next year, and the next adjust-
ment shall take into account prior declines in the 
house price index, so that any adjustment shall reflect 
the net change in the house price index since the last 
adjustment. Declines in the house price index shall be
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accumulated and then reduce increases until subse-
quent increases exceed prior declines.’’. 
(2) HIGH-COST AREA LIMIT.—Section 302(b)(2) 
of the Federal National Mortgage Association Charter 
Act (12 U.S.C. 1717(b)(2)) is amended by adding 
after the period at the end the following: ‘‘Such fore-
going limitations shall also be increased, with respect 
to properties of a particular size located in any area 
for which 115 percent of the median house price for 
such size residence exceeds the foregoing limitation for 
such size residence, to the lesser of 150 percent of such 
limitation for such size residence or the amount that 
is equal to 115 percent of the median house price in 
such area for such size residence.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by paragraphs (1) and (2) of this subsection shall 
take effect upon the expiration of the date described 
in section 201(a) of the Economic Stimulus Act of 
2008 (Public Law 110–185). 
(b) FREDDIE MAC.— 
(1) GENERAL LIMIT.—Section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act (12 
U.S.C. 1454(a)(2)) is amended by striking the 6th 
and 7th sentences and inserting the following new 
sentences: ‘‘Such limitations shall not exceed $417,000
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for a mortgage secured by a single-family residence, 
$533,850 for a mortgage secured by a 2-family resi-
dence, $645,300 for a mortgage secured by a 3-family 
residence, and $801,950 for a mortgage secured by a 
4-family residence, except that such maximum limita-
tions shall be adjusted effective January 1 of each 
year beginning after the effective date of the Federal 
Housing Finance Regulatory Reform Act of 2008, 
subject to the limitations in this paragraph. Each ad-
justment shall be made by adding to each such 
amount (as it may have been previously adjusted) a 
percentage thereof equal to the percentage increase, 
during the most recent 12-month or 4-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 Federal Housing En-
terprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4541)). If the change in such house price 
index during the most recent 12-month or 4-quarter 
period ending before the time of determining such an-
nual adjustment is a decrease, then no adjustment 
shall be made for the next year, and the next adjust-
ment shall take into account prior declines in the 
house price index, so that any adjustment shall reflect
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the net change in the house price index since the last 
adjustment. Declines in the house price index shall be 
accumulated and then reduce increases until subse-
quent increases exceed prior declines.’’. 
(2) HIGH-COST AREA LIMIT.—Section 305(a)(2) 
of the Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1454(a)(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 115 percent of the median house price for such 
size residence exceeds the foregoing limitation for such 
size residence, to the lesser of 150 percent of such lim-
itation for such size residence or the amount that is 
equal to 115 percent of the median house price in 
such area for such size residence.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by paragraphs (1) and (2) of this subsection shall 
take effect upon the expiration of the date described 
in section 201(a) of the Economic Stimulus Act of 
2008 (Public Law 110–185). 
(c) SENSE OF CONGRESS.—It is the sense of the Con-
gress that the securitization of mortgages by the Federal Na-
tional Mortgage Association and the Federal Home Loan 
Mortgage Corporation plays an important role in providing
101 
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market activities involving subprime and nontradi-
tional loans; 
‘‘(5) compare the characteristics of subprime and 
nontraditional loans both purchased and securitized 
by each enterprise to other loans purchased and 
securitized by each enterprise; and 
‘‘(6) compare the characteristics of high-cost 
loans purchased and securitized, where such securities 
are not held on portfolio to loans purchased and 
securitized, where such securities are either retained 
on portfolio or repurchased by the enterprise, includ-
ing such characteristics as— 
‘‘(A) the purchase price of the property that 
secures the mortgage; 
‘‘(B) the loan-to-value ratio of the mortgage, 
which shall reflect any secondary liens on the 
relevant property; 
‘‘(C) the terms of the mortgage; 
‘‘(D) the creditworthiness of the borrower; 
and 
‘‘(E) any other relevant data, as determined 
by the Director. 
‘‘(c) DATA COLLECTION AND REPORTING.— 
‘‘(1) IN
GENERAL.—To assist the Director in 
analyzing the matters described in subsection (b), the
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Director shall conduct, on a monthly basis, a survey 
of mortgage markets in accordance with this sub-
section. 
‘‘(2) DATA POINTS.—Each monthly survey con-
ducted by the Director under paragraph (1) shall col-
lect data on— 
‘‘(A) the characteristics of individual mort-
gages that are eligible for purchase by the enter-
prises and the characteristics of individual mort-
gages that are not eligible for purchase by the en-
terprises including, in both cases, information 
concerning— 
‘‘(i) the price of the house that secures 
the mortgage; 
‘‘(ii) the loan-to-value ratio of the 
mortgage, which shall reflect any secondary 
liens on the relevant property; 
‘‘(iii) the terms of the mortgage; 
‘‘(iv) the creditworthiness of the bor-
rower or borrowers; and 
‘‘(v) whether the mortgage, in the case 
of a conforming mortgage, was purchased 
by an enterprise; 
‘‘(B) 
the 
characteristics 
of 
individual 
subprime and nontraditional mortgages that are
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eligible for purchase by the enterprises and the 
characteristics of borrowers under such mort-
gages, including the creditworthiness of such bor-
rowers and determination whether such bor-
rowers would qualify for prime lending; and 
‘‘(C) such other matters as the Director de-
termines to be appropriate. 
‘‘(3) PUBLIC AVAILABILITY.—The Director shall 
make any data collected by the Director in connection 
with the conduct of a monthly survey available to the 
public in a timely manner, provided that the Director 
may modify the data released to the public to ensure 
that the data— 
‘‘(A) is not released in an identifiable form; 
and 
‘‘(B) is not otherwise obtainable from other 
publicly available data sets. 
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘identifiable form’ means any rep-
resentation of information that permits the identity of 
a borrower to which the information relates to be rea-
sonably inferred by either direct or indirect means.’’.
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SEC. 1126. PUBLIC USE DATABASE. 
Section 1323 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (42 U.S.C. 4543) 
is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(a) IN GENERAL.—The 
Secretary’’ and inserting the following: 
‘‘(a) AVAILABILITY.— 
‘‘(1) IN GENERAL.—The Director’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) CENSUS TRACT LEVEL REPORTING.—Such 
data shall include the data elements required to be re-
ported under the Home Mortgage Disclosure Act of 
1975, at the census tract level.’’; 
(2) in subsection (b)(2), by inserting before the 
period at the end the following: ‘‘or with subsection 
(a)(2)’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(d) TIMING.—Data submitted under this section by 
an enterprise in connection with a provision referred to in 
subsection (a) shall be made publicly available in accord-
ance with this section not later than September 30 of the 
year following the year to which the data relates.’’.
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SEC. 1127. REPORTING OF MORTGAGE DATA. 
Section 1326 of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 U.S.C. 4546) 
is amended— 
(1) in subsection (a), by striking ‘‘The Director’’ 
and inserting ‘‘Subject to subsection (d), the Direc-
tor’’; and 
(2) by adding at the end the following: 
‘‘(d) MORTGAGE INFORMATION.—Subject to privacy 
considerations, as described in section 304(j) of the Home 
Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(j)), the 
Director shall, by regulation or order, provide that certain 
information relating to single family mortgage data of the 
enterprises shall be disclosed to the public, in order to make 
available to the public— 
‘‘(1) the same data from the enterprises that is 
required of insured depository institutions under the 
Home Mortgage Disclosure Act of 1975; and 
‘‘(2) information collected by the Director under 
section 1324(b)(6).’’. 
SEC. 1128. REVISION OF HOUSING GOALS. 
(a) REPEAL.—Sections 1331 through 1334 of the Fed-
eral Housing Enterprises Financial Safety and Soundness 
Act of 1992 (12 U.S.C. 4561 through 4564) are hereby re-
pealed.
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(b) HOUSING GOALS.—The Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 is 
amended by inserting before section 1335 the following: 
‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall, by regulation, 
establish effective for 2010 and each year thereafter, annual 
housing goals, with respect to the mortgage purchases by 
the enterprises, as follows: 
‘‘(1) SINGLE-FAMILY
HOUSING
GOALS.—Four 
single-family housing goals under section 1332. 
‘‘(2) MULTIFAMILY SPECIAL AFFORDABLE HOUS-
ING GOAL.—One multifamily special affordable hous-
ing goal under section 1333. 
‘‘(b) TIMING.—The Director shall, by regulation, estab-
lish an annual deadline by which the Director shall estab-
lish the annual housing goals under this subpart for each 
year, taking into consideration the need for the enterprises 
to reasonably and sufficiently plan their operations and ac-
tivities in advance, including operations and activities nec-
essary to meet such annual goals. 
‘‘(c) TRANSITION.—The annual housing goals effective 
for 2008 pursuant to this subpart, as in effect before the 
enactment of the Federal Housing Finance Regulatory Re-
form Act of 2008, shall remain in effect for 2009, except 
that not later than the expiration of the 270-day period be-
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Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4565) is amended— 
(1) in the section heading, by inserting ‘‘DUTY 
TO SERVE UNDERSERVED MARKETS AND’’ before 
‘‘OTHER’’; 
(2) by striking subsection (b); 
(3) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘and to carry out the duty under 
subsection (a) of this section’’ before ‘‘, each en-
terprise shall’’; 
(B) in paragraph (3), by inserting ‘‘and’’ 
after the semicolon at the end; 
(C) in paragraph (4), by striking ‘‘; and’’ 
and inserting a period; 
(D) by striking paragraph (5); and 
(E) by redesignating such subsection as sub-
section (b); 
(4) by inserting before subsection (b) (as so re-
designated by paragraph (3)(E) of this subsection) the 
following new subsection: 
‘‘(a) DUTY TO SERVE UNDERSERVED MARKETS.— 
‘‘(1) DUTY.—To increase the liquidity of mort-
gage investments and improve the distribution of in-
vestment capital available for mortgage financing for
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underserved markets, each enterprise shall provide 
leadership to the market in developing loan products 
and flexible underwriting guidelines to facilitate a 
secondary market for mortgages for very low-, low-, 
and moderate-income families with respect to the fol-
lowing underserved markets: 
‘‘(A) MANUFACTURED
HOUSING.—The en-
terprise shall develop loan products and flexible 
underwriting guidelines to facilitate a secondary 
market for mortgages on manufactured homes for 
very low-, low-, and moderate-income families. 
‘‘(B) AFFORDABLE
HOUSING
PRESERVA-
TION.—The enterprise shall develop loan prod-
ucts and flexible underwriting guidelines to fa-
cilitate a secondary market to preserve housing 
affordable to very low-, low-, and moderate-in-
come families, including housing projects sub-
sidized underl 
‘‘(i) the project-based and tenant-based 
rental assistance programs under section 8 
of the United States Housing Act of 1937; 
‘‘(ii) the program under section 236 of 
the National Housing Act;
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‘‘(iii) the below-market interest rate 
mortgage program under section 221(d)(4) 
of the National Housing Act; 
‘‘(iv) the supportive housing for the el-
derly program under section 202 of the 
Housing Act of 1959; 
‘‘(v) the supportive housing program 
for persons with disabilities under section 
811 of the Cranston-Gonzalez National Af-
fordable Housing Act; 
‘‘(vi) the programs under title IV of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361 et seq.), but only perma-
nent supportive housing projects subsidized 
under such programs; 
‘‘(vii) the rural rental housing pro-
gram under section 515 of the Housing Act 
of 1949; 
‘‘(viii) the low-income housing tax 
credit under section 42 of the Internal Rev-
enue Code of 1986; and 
‘‘(ix) comparable state and local af-
fordable housing programs. 
‘‘(C) RURAL
MARKETS.—The enterprise 
shall develop loan products and flexible under-
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writing guidelines to facilitate a secondary mar-
ket for mortgages on housing for very low-, and 
low-, and moderate-income families in rural 
areas.’’; and 
(5) by adding at the end the following new sub-
sections: 
‘‘(c) ADDITIONAL CATEGORIES.—The Director may 
submit recommendations to the Committee on Financial 
Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate for 
the establishment of additional categories under subsection 
(a), provided that the Director makes a preliminary deter-
mination that any such category is important to the mis-
sion of the enterprises, that the category is an underserved 
market, and that the establishment of such category is war-
ranted. 
‘‘(d) EVALUATION AND REPORTING OF COMPLIANCE.— 
‘‘(1) IN GENERAL.—The Director shall, by regu-
lation, establish effective for 2010 and thereafter a 
manner for evaluating whether, and the extent to 
which, the enterprises have complied with the duty 
under subsection (a) to serve underserved markets and 
for rating the extent of such compliance. Using such 
method, the Director shall, for 2010 and each year 
thereafter, evaluate such compliance and rate the per-
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formance of each enterprise as to extent of compli-
ance. The Director shall include such evaluation and 
rating for each enterprise for a year in the report for 
that year submitted pursuant to section 1319B(a). 
‘‘(2) SEPARATE EVALUATIONS.—In determining 
whether an enterprise has complied with the duty re-
ferred to in paragraph (1), the Director shall sepa-
rately evaluate whether the enterprise has complied 
with such duty with respect to each of the underserved 
markets identified in subsection (a), taking into con-
siderationl 
‘‘(A) the development of loan products, more 
flexible underwriting guidelines, and other inno-
vative approaches to providing financing to each 
of such underserved markets; 
‘‘(B) the extent of outreach to qualified loan 
sellers and other market participants in each of 
such underserved markets; 
‘‘(C) the volume of loans purchased in each 
of such underserved markets relative to the mar-
ket opportunities available to the enterprise, ex-
cept that the Director shall not establish specific 
quantitative targets nor evaluate the enterprises 
based solely on the volume of loans purchased; 
and
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‘‘(D) the amount of investments and grants 
in projects which assist in meeting the needs of 
such underserved markets. 
‘‘(3) MANUFACTURED HOUSING MARKET.—In de-
termining whether an enterprise has complied with 
the duty under subparagraph (A) of subsection (a)(1), 
the Director may consider loans secured by both real 
and personal property. 
‘‘(4) PROHIBITION
OF
CONSIDERATION
OF
AF-
FORDABLE
HOUSING
FUND
GRANTS
FOR
MEETING 
DUTY TO SERVE.— In determining whether an enter-
prise has complied with the duty referred to in para-
graph (1), the Director may not consider any afford-
able housing fund grant amounts used under section 
1337 for eligible activities under subsection (g) of 
such section.’’. 
(b) ENFORCEMENT.—Subsection (a) of section 1336 of 
the Housing and Community Development Act of 1992 (12 
U.S.C. 4566(a)) is amended— 
(1) in paragraph (1), by inserting ‘‘and with the 
duty under section 1335(a) of each enterprise with re-
spect to underserved markets,’’ before ‘‘as provided in 
this section’’; and
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‘‘(2) RESPONSE PERIOD.— 
‘‘(A) IN GENERAL.—During the 30-day pe-
riod beginning on the date on which an enter-
prise is provided notice under paragraph (1), the 
enterprise may submit to the Director any writ-
ten information that the enterprise considers ap-
propriate for consideration by the Director in fi-
nally determining whether such failure has oc-
curred or whether the achievement of such goal 
was or is feasible. 
‘‘(B) EXTENDED
PERIOD.—The Director 
may extend the period under subparagraph (A) 
for good cause for not more than 30 additional 
days. 
‘‘(C) SHORTENED
PERIOD.—The Director 
may shorten the period under subparagraph (A) 
for good cause. 
‘‘(D) FAILURE TO RESPOND.—The failure of 
an enterprise to provide information during the 
30-day period under this paragraph (as extended 
or shortened) shall waive any right of the enter-
prise to comment on the proposed determination 
or action of the Director. 
‘‘(3) CONSIDERATION
OF
INFORMATION
AND 
FINAL DETERMINATION.—
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•HR 3221 EAH2 
‘‘(A) IN GENERAL.—After the expiration of 
the response period under paragraph (2), or 
upon receipt of information provided during 
such period by the enterprise, whichever occurs 
earlier, the Director shall issue a final deter-
mination on— 
‘‘(i) whether the enterprise has failed, 
or there is a substantial probability that the 
enterprise will fail, to meet the housing 
goal; and 
‘‘(ii) whether (taking into consider-
ation market and economic conditions and 
the financial condition of the enterprise) the 
achievement of the housing goal was or is 
feasible. 
‘‘(B) CONSIDERATIONS.—In making a final 
determination under subparagraph (A), the Di-
rector shall take into consideration any relevant 
information submitted by the enterprise during 
the response period. 
‘‘(C) NOTICE.—The Director shall provide 
written notice, including a response to any in-
formation submitted during the response period, 
to the enterprise, the Committee on Banking, 
Housing, and Urban Affairs of the Senate, and
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the Committee on Financial Services of the 
House of Representatives, of— 
‘‘(i) each final determination under 
this paragraph that an enterprise has 
failed, or that there is a substantial prob-
ability that the enterprise will fail, to meet 
a housing goal; 
‘‘(ii) each final determination that the 
achievement of a housing goal was or is fea-
sible; and 
‘‘(iii) the reasons for each such final 
determination. 
‘‘(c) CEASE AND DESIST, CIVIL MONEY PENALTIES, 
AND REMEDIES INCLUDING HOUSING PLANS.— 
‘‘(1) REQUIREMENT.—If the Director finds, pur-
suant to subsection (b), that there is a substantial 
probability that an enterprise will fail, or has actu-
ally failed, to meet any housing goal under this sub-
part, and that the achievement of the housing goal 
was or is feasible, the Director may require that the 
enterprise submit a housing plan under this sub-
section. If the Director makes such a finding and the 
enterprise refuses to submit such a plan, submits an 
unacceptable plan, or fails to comply with the plan, 
the Director may issue a cease and desist order in ac-
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cordance with section 1341 and impose civil money 
penalties in accordance with section 1345. 
‘‘(2) HOUSING PLAN.—If the Director requires a 
housing plan under this subsection, such a plan shall 
be— 
‘‘(A) a feasible plan describing the specific 
actions the enterprise will take— 
‘‘(i) to achieve the goal for the next cal-
endar year; and 
‘‘(ii) if the Director determines that 
there is a substantial probability that the 
enterprise will fail to meet a goal in the 
current year, to make such improvements 
and changes in its operations as are reason-
able in the remainder of such year; and 
‘‘(B) sufficiently specific to enable the Di-
rector to monitor compliance periodically. 
‘‘(3) DEADLINE FOR SUBMISSION.—The Director 
shall establish a deadline for an enterprise to submit 
a housing plan to the Director, which may not be 
more than 45 days after the enterprise is provided no-
tice. The Director may extend the deadline to the ex-
tent that the Director determines necessary. Any ex-
tension of the deadline shall be in writing and for a 
time certain.