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(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
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(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—
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(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’’.
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(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)—
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(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:
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‘‘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.
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‘‘(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,
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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
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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-
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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
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‘‘(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;
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‘‘(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-
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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—
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‘‘(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.’’;
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(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—
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(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
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(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-
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spect to mortgages on which are based securities 
issued and sold by the corporation.’’. 
(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 
$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
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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 305(a)(2) 
of the Federal Home Loan Mortgage Corporation 
Act 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 par-
ticular 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 me-
dian price in such area for such size residence, ex-
cept that, subject to the order, if any, issued by the 
Director of the Federal Housing Finance Agency 
pursuant to section 123(d)(3) of the Federal Hous-
ing Finance Reform Act of 2005, such increase shall 
apply only with respect to mortgages on which are 
based securities issued and sold by the Corpora-
tion.’’. 
(c) HOUSING PRICE INDEX.—Subpart A of part 2 of 
subtitle A of title XIII of the Housing and Community 
Development Act of 1992 (as amended by the preceding 
provisions of this Act) is amended by inserting after sec-
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tion 1321 (as added by section 122 of this Act) the fol-
lowing new section: 
‘‘SEC. 1322. HOUSING PRICE INDEX. 
‘‘(a) IN GENERAL.—The Director shall establish and 
maintain a method of assessing the national average 1- 
family house price for use for adjusting the conforming 
loan limitations of the enterprises. In establishing such 
method, the Director shall take into consideration the 
monthly survey of all major lenders conducted by the Fed-
eral Housing Finance Agency to determine the national 
average 1-family house price, the House Price Index main-
tained by the Office of Federal Housing Enterprise Over-
sight of the Department of Housing and Urban Develop-
ment before the effective date under section 185 of the 
Federal Housing Finance Reform Act of 2005, any appro-
priate house price indexes of the Bureau of the Census 
of the Department of Commerce, and any other indexes 
or measures that the Director considers appropriate. 
‘‘(b) GAO AUDIT.— 
‘‘(1) IN GENERAL.—At such times as are re-
quired under paragraph (2), the Comptroller Gen-
eral of the United States shall conduct an audit of 
the methodology established by the Director under 
subsection (a) to determine whether the methodology 
established is an accurate and appropriate means of
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measuring changes to the national average 1-family 
house price. 
‘‘(2) TIMING.—An audit referred to in para-
graph (1) shall be conducted and completed not later 
than the expiration of the 180-day period that be-
gins upon each of the following dates: 
‘‘(A) ESTABLISHMENT.—The date upon 
which such methodology is initially established 
under subsection (a) in final form by the Direc-
tor. 
‘‘(B) MODIFICATION
OR
AMENDMENT.— 
Each date upon which any modification or 
amendment to such methodology is adopted in 
final form by the Director. 
‘‘(3) REPORT.—Within 30 days of the comple-
tion of any audit conducted under this subsection, 
the Comptroller General shall submit a report detail-
ing the results and conclusions of the audit to the 
Director, the Committee on Financial Services of the 
House of Representatives, and the Committee on 
Banking, Housing, and Urban Affairs of the Sen-
ate.’’. 
(d) CONDITIONS ON CONFORMING LOAN LIMIT FOR 
HIGH-COST AREAS.—
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(1) STUDY.—The Director of the Federal 
Housing Finance Agency shall conduct a study 
under this subsection during the six-month period 
beginning on the effective date under section 185 of 
this Act. 
(2) ISSUES.—The study under this subsection 
shall determine— 
(A) the effect that restricting the con-
forming loan limits for high-cost areas only to 
mortgages on which are based securities issued 
and sold by the Federal National Mortgage As-
sociation and the Federal Home Loan Mortgage 
Corporation (as provided in the last sentence of 
section 302(b)(2) of the Federal National Mort-
gage Association Charter Act and the last sen-
tence of section 305(a)(2) of the Federal Home 
Loan Mortgage Corporation Act, pursuant to 
the amendments made by subsections (a)(2) 
and (b)(2) of this section) would have on the 
cost to borrowers for mortgages on housing in 
such high-cost areas; 
(B) the effects that such restrictions would 
have on the availability of mortgages for hous-
ing in such high-cost areas; and
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(C) the extent to which the Federal Na-
tional Mortgage Association and the Federal 
Home Loan Mortgage Corporation will be able 
to issue and sell securities based on mortgages 
for housing located in such high-cost areas. 
(3) DETERMINATION.— 
(A) IN GENERAL.—Not later than the ex-
piration of the six-month period specified in 
paragraph (1), the Director of the Federal 
Housing Finance Agency shall make a deter-
mination, based on the results of the study 
under this subsection, of whether the restriction 
of conforming loan limits for high-cost areas 
only to mortgages on which are based securities 
issued and sold by the Federal National Mort-
gage Association and the Federal Home Loan 
Mortgage Corporation (as provided in the 
amendments made by subsections (a)(2) and 
(b)(2) of this section) will result in an increase 
in the cost to borrowers for mortgages on hous-
ing in such high-cost areas. 
(B) ORDER.— If such determination is 
that costs to borrowers on housing in such 
high-cost areas will be increased by such re-
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strictions, the Director may issue an order ter-
minating such restrictions, in whole or in part. 
(4) PUBLICATION.— Not later than the expira-
tion of the six-month period specified in paragraph 
(1), the Director of the Federal Housing Finance 
Agency shall cause to be published in the Federal 
Register— 
(A) a report that— 
(i) describes the study under this sub-
section; and 
(ii) sets forth the conclusions of the 
study regarding the issues to be deter-
mined under paragraph (2); and 
(B) notice of the determination of the Di-
rector under paragraph (3); and 
(C) the order of the Director under para-
graph (3). 
(5) DEFINITION.—For purposes of this sub-
section, the term ‘‘conforming loan limits for high- 
cost areas’’ means the dollar amount limitations ap-
plicable under the section 302(b)(2) of the Federal 
National Mortgage Association Charter Act and sec-
tion 305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (as amended by subsections (a) and
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(b) of this section) for areas described in the last 
sentence of such sections (as so amended). 
(e) REGULAR ADJUSTMENT OF CONFORMING LOAN 
LIMITS.— 
(1) ADJUSTMENT FOR YEAR INTERVENING BE-
FORE
EFFECTIVE
DATE.—Notwithstanding section 
302(b)(2) of the Federal National Mortgage Asso-
ciation Charter Act and section 305(a)(2) of the 
Federal Home Loan Mortgage Corporation Act, as 
amended by this section, the maximum dollar 
amount limitations in such sections shall be adjusted 
on the effective date under section 185 of this Act, 
and the limitations as so adjusted shall be imme-
diately effective, so that the limitations under such 
sections applicable to the year in which such effec-
tive date occurs are equal to the limitations in effect 
under such sections immediately before such effec-
tive date. 
(2) FURTHER ADJUSTMENTS.—After such ef-
fective date, the dollar amount limitations as ad-
justed pursuant to paragraph (1) shall be considered 
‘‘such amount (as it may have been previously ad-
justed’’ for purposes of section 302(b)(2) of the Fed-
eral National Mortgage Association Charter Act and
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section 305(a)(2) of the Federal Home Loan Mort-
gage Corporation Act. 
SEC. 124. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking section 
1324 (12 U.S.C. 4544) and inserting the following new 
section: 
‘‘SEC. 1324. ANNUAL HOUSING REPORT REGARDING REGU-
LATED ENTITIES. 
‘‘(a) IN GENERAL.—After reviewing and analyzing 
the reports submitted under section 309(n) of the Federal 
National Mortgage Association Charter Act, section 
307(f) of the Federal Home Loan Mortgage Corporation 
Act, and section 10(j)(11) of the Federal Home Loan 
Bank Act (12 U.S.C. 1430(j)(11)), the Director shall sub-
mit a report, not later than October 30 of each year, to 
the Committee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, on the activities of each regu-
lated entity. 
‘‘(b) CONTENTS.—The report shall— 
‘‘(1) discuss the extent to which—
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‘‘(A) each enterprise is achieving the an-
nual housing goals established under subpart B 
of this part; 
‘‘(B) each enterprise is complying with sec-
tion 1337; 
‘‘(C) each Federal home loan bank is com-
plying with section 10(j) of the Federal Home 
Loan Bank Act; and 
‘‘(D) each regulated entity is achieving the 
purposes of the regulated entity established by 
law; 
‘‘(2) aggregate and analyze relevant data on in-
come to assess the compliance by each enterprise 
with the housing goals established under subpart B; 
‘‘(3) aggregate and analyze data on income, 
race, and gender by census tract and other relevant 
classifications, and compare such data with larger 
demographic, housing, and economic trends; 
‘‘(4) examine actions that— 
‘‘(A) each enterprise has undertaken or 
could undertake to promote and expand the an-
nual goals established under subpart B and the 
purposes of the enterprise established by law; 
and
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‘‘(B) each Federal home loan bank has 
taken or could undertake to promote and ex-
pand the community investment program and 
affordable housing program of the bank estab-
lished under section subsections (i) and (j) of 
section 10 of the Federal Home Loan Bank 
Act; 
‘‘(5) examine the primary and secondary multi-
family housing mortgage markets and describe— 
‘‘(A) the availability and liquidity of mort-
gage credit; 
‘‘(B) the status of efforts to provide stand-
ard credit terms and underwriting guidelines 
for multifamily housing and to securitize such 
mortgage products; and 
‘‘(C) any factors inhibiting such standard-
ization and securitization; 
‘‘(6) examine actions each regulated entity has 
undertaken and could undertake to promote and ex-
pand opportunities for first-time homebuyers, includ-
ing the use of alternative credit scoring; 
‘‘(7) describe any actions taken under section 
1325(5) with respect to originators found to violate 
fair lending procedures;
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‘‘(8) discuss and analyze existing conditions and 
trends, including conditions and trends relating to 
pricing, in the housing markets and mortgage mar-
kets; and 
‘‘(9) identify the extent to which each enter-
prise is involved in mortgage purchases and sec-
ondary market activities involving subprime loans 
(as identified in accordance with the regulations 
issued pursuant to section 124(b) of the Federal 
Housing Finance Reform Act of 2005) and compare 
the characteristics of subprime loans purchased and 
securitized by the enterprises to other loans pur-
chased and securitized by the enterprises. 
‘‘(c) DATA COLLECTION AND REPORTING.— 
‘‘(1) IN GENERAL.—To assist the Director in 
analyzing the matters described in subsection (b) 
and establishing the methodology described in sec-
tion 1322, the Director shall conduct, on a monthly 
basis, a survey of mortgage markets in accordance 
with this subsection. 
‘‘(2) DATA POINTS.—Each monthly survey con-
ducted by the Director under paragraph (1) shall 
collect data on— 
‘‘(A) the characteristics of individual mort-
gages that are eligible for purchase by the en-
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terprises and the characteristics of individual 
mortgages that are not eligible for purchase by 
the enterprises including, in both cases, infor-
mation concerning— 
‘‘(i) the price of the house that se-
cures the mortgage; 
‘‘(ii) the loan-to-value ratio of the 
mortgage, which shall reflect any sec-
ondary 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 pur-
chased by an enterprise; and 
‘‘(B) such other matters as the Director 
determines to be appropriate. 
‘‘(3) PUBLIC
AVAILABILITY.—The Director 
shall make any data collected by the Director in con-
nection with the conduct of a monthly survey avail-
able to the public in a timely manner, provided that 
the Director may modify the data released to the 
public to ensure that the data is not released in an 
identifiable form.
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‘‘(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 
reasonably inferred by either direct or indirect 
means.’’. 
(b) STANDARDS FOR SUBPRIME LOANS.—The Direc-
tor shall, not later than one year after the effective date 
under section 185, by regulations issued under section 
1316G of the Housing and Community Development Act 
of 1992, establish standards by which mortgages pur-
chased and mortgages purchased and securitized shall be 
characterized as subprime for the purpose of, and only for 
the purpose of, complying with the reporting requirement 
under section 1324(b)(9) of such Act. 
SEC. 125. REVISION OF HOUSING GOALS. 
(a) HOUSING GOALS.—The Housing and Community 
Development Act of 1992 is amended by striking sections 
1331 through 1334 (12 U.S.C. 4561–4) and inserting the 
following new sections: 
‘‘SEC. 1331. ESTABLISHMENT OF HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish, ef-
fective for the first year that begins after the effective date 
under section 185 of the Federal Housing Finance Reform 
Act of 2005 and each year thereafter, annual housing
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goals, with respect to the mortgage purchases by the en-
terprises, as follows: 
‘‘(1) SINGLE FAMILY HOUSING GOALS.—Three 
single-family housing goals under section 1332. 
‘‘(2) 
MULTIFAMILY
SPECIAL
AFFORDABLE 
HOUSING GOALS.—A multifamily special affordable 
housing goal under section 1333. 
‘‘(b) ELIMINATING INTEREST RATE DISPARITIES.— 
‘‘(1) IN GENERAL.—In establishing and imple-
menting the housing goals under this subpart, the 
Director shall require the enterprises to disclose ap-
propriate information to allow the Director to assess 
if there are any disparities in interest rates charged 
on mortgages to borrowers who are minorities as 
compared with borrowers of similar creditworthiness 
who are not minorities, as evidenced in reports pur-
suant to the Home Mortgage Disclosure Act of 
1975. 
‘‘(2) REPORT AND REMEDY.—Upon a finding 
by the Director, pursuant to the information pro-
vided by an enterprise in paragraph (1), that a pat-
tern of disparities in interest rates exists, the Direc-
tor shall— 
‘‘(A) submit to the Committee on Finan-
cial Services of the House of Representatives
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and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report detailing 
the disparities; and 
‘‘(B) require the enterprise to take such 
action as the Director deems appropriate pursu-
ant to this Act to remedy the interest rate dis-
parities identified. 
‘‘(3) PROTECTION OF IDENTITY.—In carrying 
out this subsection, the Director shall ensure that no 
information is made public that would reasonably 
allow identification, directly or indirectly, of an indi-
vidual borrower. 
‘‘(c) TIMING.—The Director shall establish an annual 
deadline by which the Director shall establish 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 activities in ad-
vance, including operations and activities necessary to 
meet such annual goals. 
‘‘SEC. 1332. SINGLE-FAMILY HOUSING GOALS. 
‘‘(a) IN GENERAL.—The Director shall establish an 
annual goal for the purchase by each enterprise of conven-
tional, conforming, single-family, owner-occupied, pur-
chase money mortgages financing housing for each of the 
following categories of families:
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‘‘(1) Low-income families. 
‘‘(2) Families that reside in low-income areas. 
‘‘(3) Very low-income families. 
‘‘(b) DETERMINATION OF COMPLIANCE.—The Direc-
tor shall determine, for each year that the housing goal 
under this section is in effect pursuant to section 1331(a), 
whether each enterprise has complied with the single-fam-
ily housing goal established under this section for such 
year. An enterprise shall be considered to be in compliance 
with such a goal for a year only if— 
‘‘(1) for each of the types of families described 
in subsection (a), the percentage of the number of 
conventional, conforming, single-family, owner-occu-
pied, purchase money mortgages purchased by each 
enterprise in such year that serve such families, 
meets or exceeds 
‘‘(2) the target for the year for such type of 
family that is established under subsection (c). 
‘‘(c) ANNUAL TARGETS.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), for each of the types of families described 
in subsection (a), the target under this subsection 
for a year shall be the average percentage, for the 
three years that most recently precede such year and 
for which information under the Home Mortgage
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Disclosure Act of 1975 is publicly available, of the 
number of conventional, conforming, single-family, 
owner-occupied, purchase money mortgages origi-
nated in such year that serves such type of family, 
as determined by the Director using the information 
obtained and determined pursuant to paragraphs (3) 
and (4). 
‘‘(2) AUTHORITY TO INCREASE TARGETS.— 
‘‘(A) IN GENERAL.—The Director may, for 
any year, establish by regulation, for any or all 
of the types of families described in subsection 
(a), percentage targets that are higher than the 
percentages for such year determined pursuant 
to paragraph (1), to reflect expected changes in 
market performance related to such information 
under the Home Mortgage Disclosure Act of 
1975. 
‘‘(B) FACTORS.—In establishing any tar-
gets pursuant to subparagraph (A), the Direc-
tor shall consider the following factors: 
‘‘(i) National housing needs. 
‘‘(ii) Economic, housing, and demo-
graphic conditions. 
‘‘(iii) The performance and effort of 
the enterprises toward achieving the hous-
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ing goals under this section in previous 
years. 
‘‘(iv) The size of the conventional 
mortgage market serving each of the types 
of families described in subsection (a) rel-
ative to the size of the overall conventional 
mortgage market. 
‘‘(v) The need to maintain the sound 
financial condition of the enterprises. 
‘‘(3) 
HMDA 
INFORMATION.—The 
Director 
shall annually obtain information submitted in com-
pliance with the Home Mortgage Disclosure Act of 
1975 regarding conventional, conforming, single- 
family, owner-occupied, purchase money mortgages 
originated and purchased for the previous year. 
‘‘(4) CONFORMING
MORTGAGES.—In deter-
mining whether a mortgage is a conforming mort-
gage for purposes of this paragraph, the Director 
shall consider the original principal balance of the 
mortgage loan to be the principal balance as re-
ported in the information referred to in paragraph 
(3), as rounded to the nearest thousand dollars. 
‘‘(d) NOTICE OF DETERMINATION AND ENTERPRISE 
COMMENT.—
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‘‘(1) NOTICE.—Within 30 days of making a de-
termination under subsection (b) regarding a compli-
ance of an enterprise for a year with the housing 
goal established under this section and before any 
public disclosure thereof, the Director shall provide 
notice of the determination to the enterprise, which 
shall include an analysis and comparison, by the Di-
rector, of the performance of the enterprise for the 
year and the targets for the year under subsection 
(c). 
‘‘(2) COMMENT
PERIOD.—The Director shall 
provide each enterprise an opportunity to comment 
on the determination during the 30-day period be-
ginning upon receipt by the enterprise of the notice. 
‘‘(e) USE OF BORROWER INCOME.—In monitoring 
the performance of each enterprise pursuant to the hous-
ing goals under this section and evaluating such perform-
ance (for purposes of section 1336), the Director shall 
consider a mortgagor’s income to be such income at the 
time of origination of the mortgage. 
‘‘SEC. 1333. MULTIFAMILY SPECIAL AFFORDABLE GOAL. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN GENERAL.—The Director shall estab-
lish, by regulation, an annual goal for the purchase
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by each enterprise of each of the following types of 
mortgages on multifamily housing: 
‘‘(A) Mortgages that finance dwelling units 
for low-income families. 
‘‘(B) Mortgages that finance dwelling units 
for very low-income families. 
‘‘(C) Mortgages that finance dwelling units 
assisted by the low-income housing tax credit 
under section 42 of the Internal Revenue Code 
of 1986. 
‘‘(2) ADDITIONAL REQUIREMENTS FOR SMALL-
ER PROJECTS.—The Director shall establish, within 
the goal under this section, additional requirements 
for the purchase by each enterprise of mortgages de-
scribed in paragraph (1) for multifamily housing 
projects of a smaller or limited size, which may be 
based on the number of dwelling units in the project 
or the amount of the mortgage, or both, and shall 
include multifamily housing projects of such smaller 
sizes as are typical among such projects that serve 
rural areas. 
‘‘(3) FACTORS.—In establishing the goal under 
this section relating to mortgages on multifamily 
housing for an enterprise, the Director shall con-
sider—
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‘‘(A) national multifamily mortgage credit 
needs; 
‘‘(B) the performance and effort of the en-
terprise in making mortgage credit available for 
multifamily housing in previous years; 
‘‘(C) the size of the multifamily mortgage 
market; 
‘‘(D) the ability of the enterprise to lead 
the industry in making mortgage credit avail-
able, especially for underserved markets, such 
as for small multifamily projects of 5 to 50 
units, multifamily properties in need of rehabili-
tation, and multifamily properties located in 
rural areas; and 
‘‘(E) the need to maintain the sound finan-
cial condition of the enterprise. 
‘‘(b) UNITS FINANCED BY HOUSING FINANCE AGEN-
CY BONDS.—The Director shall give full credit toward the 
achievement of the multifamily special affordable housing 
goal under this section (for purposes of section 1336) to 
dwelling units in multifamily housing that otherwise quali-
fies under such goal and that is financed by tax-exempt 
or taxable bonds issued by a State or local housing finance 
agency, but only if—
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‘‘(1) such bonds are secured by a guarantee of 
the enterprise; or 
‘‘(2) are not investment grade and are pur-
chased by the enterprise. 
‘‘(c) USE OF TENANT INCOME OR RENT.—The Di-
rector shall monitor the performance of each enterprise 
in meeting the goals established under this section and 
shall evaluate such performance (for purposes of section 
1336) based on— 
‘‘(1) the income of the prospective or actual 
tenants of the property, where such data are avail-
able; or 
‘‘(2) where the data referred to in paragraph 
(1) are not available, rent levels affordable to low- 
income and very low-income families. 
A rent level shall be considered to be affordable for pur-
poses of this subsection for an income category referred 
to in this subsection if it does not exceed 30 percent of 
the maximum income level of such income category, with 
appropriate adjustments for unit size as measured by the 
number of bedrooms. 
‘‘(d) DETERMINATION OF COMPLIANCE.—The Direc-
tor shall, for each year that the housing goal under this 
section is in effect pursuant to section 1331(a), determine
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whether each enterprise has complied with such goal and 
the additional requirements under subsection (a)(2). 
‘‘SEC. 1334. DISCRETIONARY ADJUSTMENT OF HOUSING 
GOALS. 
‘‘(a) AUTHORITY.—An enterprise may petition the 
Director in writing at any time during a year to reduce 
the level of any goal for such year established pursuant 
to this subpart. 
‘‘(b) STANDARD
FOR REDUCTION.—The Director 
may reduce the level for a goal pursuant to such a petition 
only if— 
‘‘(1) market and economic conditions or the fi-
nancial condition of the enterprise require such ac-
tion; or 
‘‘(2) efforts to meet the goal would result in the 
constraint of liquidity, over-investment in certain 
market segments, or other consequences contrary to 
the intent of this subpart, or section 301(3) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1716(3)) or section 301(3) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1451 note), as applicable. 
‘‘(c) DETERMINATION.—The Director shall make a 
determination regarding any proposed reduction within 30 
days of receipt of the petition regarding the reduction. The
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Director may extend such period for a single additional 
15-day period, but only if the Director requests additional 
information from the enterprise. A denial by the Director 
to reduce the level of any goal under this section may be 
appealed to the United States District Court for the Dis-
trict of Columbia or the United States district court in 
the jurisdiction in which the headquarters of an enterprise 
is located.’’. 
(b) CONFORMING AMENDMENTS.—The Housing and 
Community Development Act of 1992 is amended— 
(1) in section 1335(a) (12 U.S.C. 4565(a)), in 
the matter preceding paragraph (1), by striking 
‘‘low- and moderate-income housing goal’’ and all 
that follows through ‘‘section 1334’’ and inserting 
‘‘housing goals established under this subpart’’; and 
(2) 
in 
section 
1336(a)(1) 
(12 
U.S.C. 
4566(a)(1)), by striking ‘‘sections 1332, 1333, and 
1334,’’ and inserting ‘‘this subpart’’. 
(c) DEFINITIONS.—Section 1303 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4502), 
as amended by the preceding provisions of this Act, is fur-
ther amended— 
(1) in paragraph (26), by striking ‘‘60 percent’’ 
each place such term appears and inserting ‘‘50 per-
cent’’;
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(2) by redesignating paragraphs (23) through 
(26) as paragraphs (27) through (30), respectively; 
(3) by inserting after paragraph (22) the fol-
lowing new paragraph: 
‘‘(26) RURAL AREA.—The term ‘rural area’ has 
the meaning given such term in section 520 of the 
Housing Act of 1949 (42 U.S.C. 1490), except that 
such term includes micropolitan areas and tribal 
trust lands.’’. 
(4) by redesignating paragraphs (14) through 
(22) as paragraphs (17) through (25), respectively; 
and 
(5) by inserting after paragraph (13) the fol-
lowing new paragraph: 
‘‘(16) LOW-INCOME AREA.—The term ‘low in-
come area’ means a census tract or block numbering 
area in which the median income does not exceed 80 
percent of the median income for the area in which 
such census tract or block numbering area is lo-
cated, and, for the purposes of section 1332(a)(2), 
shall include families having incomes not greater 
than 100 percent of the area median income who re-
side in minority census tracts.’’; 
(6) by redesignating paragraphs (12) and (13) 
as paragraphs (14) and (15), respectively;
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(7) by inserting after paragraph (11) the fol-
lowing new paragraph: 
‘‘(13) EXTREMELY
LOW-INCOME.—The term 
‘extremely low-income’ means— 
‘‘(A) in the case of owner-occupied units, 
income not in excess of 30 percent of the area 
median income; and 
‘‘(B) in the case of rental units, income 
not in excess of 30 percent of the area median 
income, with adjustments for smaller and larger 
families, as determined by the Secretary.’’; 
(8) by redesignating paragraphs (8) through 
(11) as paragraphs (9) through (12), respectively; 
and 
(9) by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(8) CONFORMING MORTGAGE.—The term ‘con-
forming mortgage’ means, with respect to an enter-
prise, a conventional mortgage having an original 
principal obligation that does not exceed the dollar 
limitation, in effect at the time of such origination, 
under, as applicable— 
‘‘(A) section 302(b)(2) of the Federal Na-
tional Mortgage Association Charter Act; or
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‘‘(B) section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act.’’. 
SEC. 126. DUTY TO SERVE UNDERSERVED MARKETS. 
(a) ESTABLISHMENT
AND EVALUATION
OF PER-
FORMANCE.—Section 1335 of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 4565) is amend-
ed— 
(1) in the section heading, by inserting ‘‘DUTY 
TO SERVE UNDERSERVED MARKETS AND’’ be-
fore ‘‘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 
enterprise 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 
subsection (b);
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(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.—In accordance with the purpose of 
the enterprises under section 301(3) of the Federal 
National Mortgage Association Charter Act (12 
U.S.C. 1716) and section 301(b)(3) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1451 note) to undertake activities relating to mort-
gages on housing for very low-, low-, and moderate- 
income families involving a reasonable economic re-
turn that may be less than the return earned on 
other activities, each enterprise shall have the duty 
to increase the liquidity of mortgage investments 
and improve the distribution of investment capital 
available for mortgage financing for underserved 
markets. 
‘‘(2) UNDERSERVED
MARKETS.—To meet its 
duty under paragraph (1), each enterprise shall com-
ply with the following requirements with respect to 
the following underserved markets: 
‘‘(A) MANUFACTURED HOUSING.—The en-
terprise shall lead the industry in developing 
loan products and flexible underwriting guide-
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lines to facilitate a secondary market for mort-
gages on manufactured homes for very low-, 
low-, and moderate-income families. 
‘‘(B) AFFORDABLE
HOUSING
PRESERVA-
TION.—The enterprise shall lead the industry in 
developing loan products and flexible under-
writing guidelines to facilitate a secondary mar-
ket to preserve housing affordable to very low- 
, low-, and moderate-income families, including 
housing projects subsidized under— 
‘‘(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; 
‘‘(iii) the below-market interest rate 
mortgage program under section 221(d)(4) 
of the National Housing Act; 
‘‘(iv) the supportive housing for the 
elderly program under section 202 of the 
Housing Act of 1959; 
‘‘(v) the supportive housing program 
for persons with disabilities under section
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811 of the Cranston-Gonzalez National Af-
fordable Housing Act; and 
‘‘(vi) the rural rental housing program 
under section 515 of the Housing Act of 
1949. 
‘‘(C) RURAL
AND
OTHER
UNDERSERVED 
MARKETS.—The enterprise shall lead the indus-
try in developing loan products and flexible un-
derwriting guidelines to facilitate a secondary 
market for mortgages on housing for very low- 
, low-, and moderate-income families in rural 
areas, and for mortgages for housing for any 
other underserved market for very low-, low-, 
and moderate-income families that the Sec-
retary identifies as lacking adequate credit 
through conventional lending sources. Such un-
derserved markets may be identified by bor-
rower type, market segment, or geographic 
area.’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(c) EVALUATION
AND REPORTING
OF COMPLI-
ANCE.— 
‘‘(1) IN GENERAL.—Not later than 6 months 
after the effective date under section 185 of the
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Federal Housing Finance Reform Act of 2005, the 
Director shall establish 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 each year, evaluate such compliance and 
rate the performance of each enterprise as to extent 
of compliance. The Director shall include such eval-
uation and rating for each enterprise for a year in 
the report for that year submitted pursuant to sec-
tion 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 under-
served markets identified in subsection (a), taking 
into consideration— 
‘‘(A) the development of loan products and 
more flexible underwriting guidelines; 
‘‘(B) the extent of outreach to qualified 
loan sellers in each of such underserved mar-
kets; and
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‘‘(C) the volume of loans purchased in each 
of such underserved markets. 
‘‘(3) MANUFACTURED
HOUSING
MARKET.—In 
determining whether an enterprise has complied with 
the duty under subparagraph (A) of subsection 
(a)(2), the Director may consider loans secured by 
both real and personal property.’’. 
(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 1335A of each enterprise 
with respect to underserved markets,’’ before ‘‘as 
provided in this section,’’; and 
(2) by adding at the end of such subsection, as 
amended by the preceding provisions of this title, the 
following new paragraph: 
‘‘(4) ENFORCEMENT
OF
DUTY
TO
PROVIDE 
MORTGAGE CREDIT TO UNDERSERVED MARKETS.— 
The duty under section 1335(a) of each enterprise 
to serve underserved markets (as determined in ac-
cordance with section 1335(c)) shall be enforceable 
under this section to the same extent and under the 
same provisions that the housing goals established 
under sections 1332, 1333, and 1334 are enforce-
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able. Such duty shall not be enforceable under any 
other provision of this title (including subpart C of 
this part) other than this section or under any provi-
sion of the Federal National Mortgage Association 
Charter Act or the Federal Home Loan Mortgage 
Corporation Act.’’. 
SEC. 127. MONITORING AND ENFORCING COMPLIANCE 
WITH HOUSING GOALS. 
Section 1336 of the Housing and Community Devel-
opment Act of 1992 (12 U.S.C. 4566) is amended— 
(1) in subsection (b)— 
(A) in the subsection heading, by inserting 
‘‘Preliminary’’ before ‘‘Determination’’; 
(B) by striking paragraph (1) and insert-
ing the following new paragraph: 
‘‘(1) NOTICE.—If the Director preliminarily de-
termines that an enterprise has failed, or that there 
is a substantial probability that an enterprise will 
fail, to meet any housing goal established under this 
subpart, the Director shall provide written notice to 
the enterprise of such a preliminary determination, 
the reasons for such determination, and the informa-
tion on which the Director based the determina-
tion.’’; 
(C) in paragraph (2)—
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(i) in subparagraph (A), by inserting 
‘‘finally’’ before ‘‘determining’’; 
(ii) by striking subparagraphs (B) and 
(C) and inserting the following new sub-
paragraph: 
‘‘(B) EXTENSION OR SHORTENING OF PE-
RIOD.—The Director may— 
‘‘(i) extend the period under subpara-
graph (A) for good cause for not more 
than 30 additional days; and 
‘‘(ii) shorten the period under sub-
paragraph (A) for good cause.’’; and 
(iii) by redesignating subparagraph 
(D) as subparagraph (C); and 
(D) in paragraph (3)— 
(i) in subparagraph (A), by striking 
‘‘determine’’ and inserting ‘‘issue a final 
determination of’’; 
(ii) in subparagraph (B), by inserting 
‘‘final’’ before ‘‘determinations’’; and 
(iii) in subparagraph (C)— 
(I) by striking ‘‘Committee on 
Banking, Finance and Urban Affairs’’ 
and inserting ‘‘Committee on Finan-
cial Services’’; and
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(II) by inserting ‘‘final’’ before 
‘‘determination’’ each place such term 
appears; and 
(2) in subsection (c)— 
(A) by striking the subsection designation 
and heading and all that follows through the 
end of paragraph (1) and inserting the fol-
lowing: 
‘‘(c) CEASE
AND DESIST ORDERS, CIVIL MONEY 
PENALTIES, 
AND
REMEDIES
INCLUDING
HOUSING 
PLANS.— 
‘‘(1) REQUIREMENT.—If the Director finds, 
pursuant to subsection (b), that there is a substan-
tial probability that an enterprise will fail, or has ac-
tually failed, to meet any housing goal under this 
subpart 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, sub-
mits an unacceptable plan, fails to comply with the 
plan or the Director finds that the enterprise has 
failed to meet any housing goal under this subpart, 
in addition to requiring an enterprise to submit a 
housing plan, the Director may issue a cease and de-
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sist order in accordance with section 1341, impose 
civil money penalties in accordance with section 
1345, or order other remedies as set forth in para-
graph (7) of this subsection.’’; 
(B) in paragraph (2)— 
(i) by striking ‘‘CONTENTS.—Each 
housing plan’’ and inserting ‘‘HOUSING 
PLAN.—If the Director requires a housing 
plan under this section, such a plan’’; and 
(ii) in subparagraph (B), by inserting 
‘‘and changes in its operations’’ after ‘‘im-
provements’’; 
(C) in paragraph (3)— 
(i) by inserting ‘‘comply with any re-
medial action or’’ before ‘‘submit a housing 
plan’’; and 
(ii) by striking ‘‘under subsection 
(b)(3) that a housing plan is required’’; 
(D) in paragraph (4), by striking the first 
two sentences and inserting the following: ‘‘The 
Director shall review each submission by an en-
terprise, including a housing plan submitted 
under this subsection, and not later than 30 
days after submission, approve or disapprove 
the plan or other action. The Director may ex-
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tend the period for approval or disapproval for 
a single additional 30-day period if the Director 
determines such extension necessary.’’; and 
(E) by adding at the end the following new 
paragraph: 
‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO 
MEET GOALS.—In addition to ordering a housing 
plan under this section, issuing cease and desist or-
ders under section 1341, and ordering civil money 
penalties under section 1345, the Director may seek 
other actions when an enterprise fails to meet a 
goal, and exercise appropriate enforcement authority 
available to the Director under this Act to prohibit 
the enterprise from entering into new programs and 
new business activities and to order the enterprise to 
suspend programs and business activities pending its 
achievement of the goal.’’. 
SEC. 128. AFFORDABLE HOUSING FUND. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking sections 
1337 and 1338 (12 U.S.C. 4562 note) and inserting the 
following new section: 
‘‘SEC. 1337. AFFORDABLE HOUSING FUND. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—Each enter-
prise shall establish and manage an affordable housing