SEC. 2. DEFINITIONS AND FINDINGS. 
(a) DEFINITIONS.—In this Act: 
(1) The term ‘‘Commission’’ means the Fannie 
Mae and Freddie Mac Investigative Commission es-
tablished under section 3. 
(2) The term ‘‘Fannie Mae’’ means the Federal 
National Mortgage Corporation. 
(3) The term ‘‘Freddie Mac’’ means the Fed-
eral Home Loan Mortgage Corporation. 
(b) FINDINGS.—Congress finds the following: 
(1) With foreclosure activity increasing 81 per-
cent in 2008, the mortgage foreclosure crisis has 
triggered the Nation’s most significant economic 
downturn in recent history during which the stock 
market has dipped to record lows. While neighbor-
hoods continue to deteriorate due to a loss of value, 
an estimated 8,000,000 homes are projected to enter 
foreclosure in the next 4 years. 
(2) There is a need to fully document what 
went wrong in the management of secondary market 
activities at Fannie Mae and Freddie Mac that con-
tributed to the misguided, potentially fraudulent 
policies and practices that ultimately led to the Fed-
eral conservatorship of such enterprises so that simi-
lar mismanagement and risky behavior will not be 
repeated in the future. 
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(3) The people of the United States have suf-
fered tremendous harm from the irresponsible, high 
risk, and unregulated practices of the mortgage in-
dustry under the policies of Fannie Mae and Freddie 
Mac. 
(4) The Federal conservatorship of Fannie Mae 
and Freddie Mac may cost the American people hun-
dreds of billions of dollars, likely exceeding 
$200,000,000,000, making it potentially the largest 
debt unjustly imposed on the taxpayers of the 
United States in our Nation’s history. 
(5) The American people, forced to shoulder the 
financial burden of the damage done to the economy 
of the United States, deserve to know who made the 
decisions that contributed to the crisis, what went 
wrong, and why. 
(6) Any executive officers and members of the 
boards of directors at Fannie Mae and Freddie Mac 
who may have exercised poor judgment, or com-
mitted wrongdoing, should be held accountable for 
such judgments and actions. 
(7) In June 2003, Freddie Mac disclosed that 
it 
had 
misstated 
its 
earnings 
by 
roughly 
$5,000,000,000 between the years 2000 and 2002 to 
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smooth the appearance of quarterly volatility in 
earnings and to meet Wall Street expectations. 
(8) In December 2004, the Securities and Ex-
change Commission found that Fannie Mae had vio-
lated accounting rules and needed to restate its 
earnings 
by 
recording 
a 
loss 
of 
up 
to 
$9,000,000,000 from 2001 to 2004. 
(9) For nearly two decades the shareholders of 
Fannie Mae and Freddie Mac and the employees 
and directors of the boards of these enterprises have 
enjoyed large dividends, bonuses, salaries, and other 
compensation based on policies and practices that 
may have been misguided or fraudulent. 
(10) In 2007, former Freddie Mac Chairman 
and Chief Executive Richard Syron received millions 
of dollars in compensation, despite the fact that the 
enterprise’s stock lost half its value. 
(11) In 2007, former Fannie Mae President 
and Chief Executive Daniel Mudd received millions 
of dollars in compensation. 
(12) Previous investigations of Fannie Mae and 
Freddie Mac have focused on accounting fraud, but 
there have not been any investigations on the full 
range of policies, practices, and high risk board deci-
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sions that contributed to and exacerbated our Na-
tion’s housing crisis. 
(13) According to the Office of Federal Hous-
ing Enterprise Oversight, regulation allowed Freddie 
Mac and Fannie Mae to operate with just $83.2 bil-
lion of capital at the end of 2007, even though it 
supported $5.2 trillion of debt and guarantees. 
(14) The boards of directors of Fannie Mae and 
Freddie Mac have been held harmless throughout 
the Nation’s housing crisis, despite having the au-
thority to create and influence many of the policies 
of such enterprises. 
(15) The involvement of the boards of directors 
in the policies of Fannie Mae and Freddie Mac has 
been shrouded in secrecy, as their policymaking deci-
sions have not been publicly disclosed, despite the 
public protections and public benefits their enter-
prises receive. 
SEC. 3. ESTABLISHMENT. 
There is established a commission to be known as the 
‘‘Fannie Mae and Freddie Mac Investigative Commis-
sion’’. 
SEC. 4. DUTY OF THE COMMISSION. 
(a) IN GENERAL.—The Commission shall investigate, 
determine, and make recommendations to Congress with 
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respect to the policies, practices, and board decisions of 
Fannie Mae and Freddie Mac subsequent to the actions 
of the Resolution Trust Corporation during the late 1980s 
and from the 1990s through the present that led to the 
enterprises’ financial instability and the subsequent Fed-
eral conservatorship of such enterprises. 
(b) SPECIFIC TOPICS.—In carrying out its duty 
under subsection (a), the Commission shall address and 
analyze, by year, beginning in 1990 and through the 
present, the following: 
(1) The appropriate role of Fannie Mae and 
Freddie Mac in expanding homeownership and the 
appropriate role in helping the housing market re-
cover nationwide. 
(2) Fannie Mae and Freddie Mac’s involve-
ment, if any, in the development of faulty risk 
standards and accounting practices and the creation 
and proliferation of the securitized mortgage instru-
ment, and how such instrument affected the solvency 
of such enterprises. 
(3) The role of the boards of directors of 
Fannie Mae and Freddie Mac in developing and vot-
ing for the investment, accounting, and contracting 
policies of such enterprises, particularly as they re-
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late to risk assessments, subprime mortgages, and 
the international securitization of mortgages. 
(4) Any board members, working committees, 
or executive officers responsible for making the deci-
sions to adapt or change risk assessments or grow 
Fannie Mae and Freddie Mac’s portfolios of 
subprime mortgage loans, a summary of actual 
board votes on the same, and the process that led 
to such decisions. 
(5) The decisions of the boards or executive of-
ficers of Fannie Mae and Freddie Mac that contrib-
uted or may have contributed to the overvaluation of 
risky mortgage investments in the stock market and, 
later, to the growth of the subprime mortgage indus-
try. 
(6) The annual compensation, including all 
forms of compensation, stock options, and other fi-
nancial benefits accrued to each of Fannie Mae and 
Freddie Mac’s executive officers and members of the 
boards of directors. 
(7) Such other matters that the Congress may 
place before the Commission. 
SEC. 5. MEMBERSHIP. 
(a) NUMBER AND APPOINTMENT.— 
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(1) IN
GENERAL.—The Commission shall be 
composed of 8 members, appointed as follows: 
(A) Two members appointed by the Speak-
er of the House of Representatives. 
(B) Two members appointed by the minor-
ity leader of the House of Representatives. 
(C) Two members appointed by the major-
ity leader of the Senate. 
(D) Two members appointed by the minor-
ity leader of the Senate. 
(2) QUALIFICATIONS.—Members of the Com-
mission shall be individuals who are of recognized 
standing and distinction in the areas of banking, se-
curities, and finance regulation, consumer advocacy 
and fair housing programs, and in the mortgage in-
dustry. 
(3) CONFLICT OF INTEREST.—Members of the 
Commission shall not have a conflict of interest that 
is relevant to any matter the Commission is required 
to investigate under section 4. 
(4) DEADLINE FOR APPOINTMENT.—Members 
of the Commission shall be appointed not later than 
90 days after the date of enactment of this Act. 
(5) CHAIRPERSON.—The Chairperson of the 
Commission shall be designated by the Speaker of 
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the House of Representatives at the time of appoint-
ment. 
(b) TERMS.— 
(1) IN GENERAL.—Each member shall be ap-
pointed for the life of the Commission. 
(2) VACANCIES.—A vacancy on the Commission 
shall— 
(A) not affect the power of the remaining 
members to execute the duty of the Commis-
sion; and 
(B) be filled in the manner in which the 
original appointment was made. 
(c) COMPENSATION.— 
(1) RATES OF PAY; TRAVEL EXPENSES.—Each 
member shall serve without pay, except that each 
member shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with appli-
cable provisions under subchapter I of chapter 57 of 
title 5, United States Code. 
(2) PROHIBITION OF COMPENSATION OF FED-
ERAL EMPLOYEES.—Notwithstanding paragraph (1), 
any member of the Commission who is a full-time of-
ficer or employee of the United States may not re-
ceive additional pay, allowances, or benefits because 
of service on the Commission. 
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(d) MEETING REQUIREMENTS.— 
(1) FREQUENCY.— 
(A) QUARTERLY
MEETINGS.—The Com-
mission shall meet at least quarterly. 
(B) ADDITIONAL MEETINGS.—In addition 
to quarterly meetings, the Commission shall 
meet at the call of the Chairperson or a major-
ity of its members. 
(2) QUORUM.—Five members of the Commis-
sion shall constitute a quorum, but a lesser number 
may hold hearings. 
(3) MEETING BY TELEPHONE OR OTHER AP-
PROPRIATE
TECHNOLOGY.—Members of the Com-
mission are permitted to meet using telephones or 
other suitable telecommunications technologies pro-
vided that all members of the Commission can fully 
communicate with all other members simultaneously. 
SEC. 6. DIRECTOR AND STAFF OF COMMISSION; EXPERTS 
AND CONSULTANTS. 
(a) DIRECTOR.— 
(1) APPOINTMENT.—The Commission shall 
have a Director who shall be appointed by the Chair-
person with the approval of the Commission. 
(2) CREDENTIALS.—The Director shall have ex-
perience in the areas of banking, securities, and fi-
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nance regulation, specifically in the mortgage indus-
try, consumer advocacy, and fair housing programs. 
(3) SALARY.—The Director shall be paid at a 
rate determined by the Chairperson with the ap-
proval of the Commission, except that such rate may 
not exceed the rate of basic pay for GS–15 of the 
General Schedule. 
(b) STAFF.—With the approval of the Chairperson, 
the Director may appoint and fix the pay of additional 
qualified personnel as the Director considers appropriate. 
(c) EXPERTS
AND CONSULTANTS.—With the ap-
proval of the Commission, the Director may procure tem-
porary and intermittent services under section 3109(b) of 
title 5, United States Code, but at rates for individuals 
not to exceed the daily equivalent of the maximum annual 
rate of basic pay for GS–15 of the General Schedule. 
(d) STAFF OF FEDERAL AGENCIES.—Upon request 
of the Commission, Chairperson, or Director, the head of 
any Federal department or agency may detail, on a nonre-
imbursable basis, any of the personnel of that department 
or agency to the Commission to assist the Commission in 
carrying out its duty under this Act. 
SEC. 7. POWERS OF COMMISSION. 
(a) HEARINGS
AND SESSIONS.—The Commission 
may, for the purposes of carrying out this Act, hold hear-
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ings, sit and act at such times and such places, take testi-
mony, and receive evidence as the Commission considers 
appropriate. 
(b) SUBPOENA POWER.— 
(1) IN GENERAL.—The Commission may issue 
a subpoena to require the attendance and testimony 
of witnesses and the production of evidence relating 
to any matter under investigation by the Commis-
sion. 
(2) ISSUANCE
AND
SIGNATURE.—Subpoenas 
issued under paragraph (1) shall bear the signature 
of the Chairperson of the Commission and shall be 
served by any person or class of persons designated 
by the Chairperson for that purpose. 
(3) ENFORCEMENT.—If a person refuses to 
obey a subpoena issued under paragraph (1), the 
Commission may apply to a United States district 
court for an order requiring that person to appear 
before the Commission to give testimony, produce 
evidence, or both, relating to the matter under inves-
tigation. The application may be made within the ju-
dicial district where the hearing is conducted or 
where that person is found, resides, or transacts 
business. Any failure to obey the order of the court 
may be punished by the court as civil contempt. 
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(c) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Commission may, if authorized by the 
Commission, take any action which the Commission is au-
thorized to take under this Act. 
(d) OBTAINING OFFICIAL DATA.—The Commission 
may secure directly from any department or agency of the 
United States information necessary to enable it to carry 
out its duty under this Act. Upon request of the Chair-
person, the head of that department or agency shall fur-
nish that information to the Commission. 
(e) PHYSICAL FACILITIES AND EQUIPMENT.—The 
Architect of the Capitol, in consultation with the appro-
priate entities in the legislative branch, shall locate and 
provide suitable facilities and equipment for the operation 
of the Commission on a nonreimbursable basis. 
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon re-
quest of the Commission, the Architect of the Capitol and 
the Administrator of the General Services shall provide to 
the Commission on a nonreimbursable basis such adminis-
trative support services as the Commission may request 
in order for the Commission to carry out its duty under 
this Act. 
(g) BYLAWS, RULES, AND
REGULATIONS.—The 
Commission may adopt, amend, and repeal bylaws, rules, 
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and regulations governing the conduct of its business and 
the performance of its duties. 
(h) COMMISSION RECORDS.—The Commission shall 
keep accurate and complete records of its doings and 
transactions which shall be made available for public in-
spection, and for the purpose of audit and examination 
by the Comptroller General or his designee. 
SEC. 8. INFORMATION FROM FREDDIE MAC, FANNIE MAE, 
AND THE FHFA. 
(a) ENTERPRISES.—Fannie Mae and Freddie Mac 
shall provide full and prompt access to the Commission 
to any books, records, and other information requested for 
the purposes of carrying out its duty under this Act. 
(b) FHFA.—Upon request of the Commission, the 
Director of the Federal Housing Finance Agency shall 
provide access to any information necessary to assist the 
Commission in carrying out its duty under this Act. 
SEC. 9. REPORT. 
Not later than 12 months after the date on which 
all initial members are appointed, the Commission shall 
submit to Congress a final report containing a detailed 
statement of the findings, conclusions, and recommenda-
tions of the Commission. 
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SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to the Com-
mission such sums as may be necessary for fiscal year 
2010 to carry out this Act. 
SEC. 11. TERMINATION. 
The Commission shall terminate following the sub-
mission and presentation of its final report and rec-
ommendations under section 9, but not later than 30 days 
after such submission and presentation. 
Æ 
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