the close of the taxable year for which the elec-
tion under this section is in effect, over 
‘‘(B) the amount of indebtedness of the 
controlled foreign corporation to any related 
person (as so defined) as of the close of Sep-
tember 26, 2008. 
All controlled foreign corporations with respect to 
which the taxpayer is a United States shareholder 
shall be treated as 1 controlled foreign corporation 
for purposes of this paragraph. The Secretary may 
prescribe such regulations as may be necessary or 
appropriate to prevent the avoidance of the purposes 
of this paragraph, including regulations which pro-
vide that cash dividends shall not be taken into ac-
count under subsection (a) to the extent such divi-
dends are attributable to the direct or indirect trans-
fer (including through the use of intervening entities 
or capital contributions) of cash or other property 
from a related person (as so defined) to a controlled 
foreign corporation. 
‘‘(4) REQUIREMENTS.— 
‘‘(A) REQUIREMENT TO INVEST IN UNITED 
STATES.—Except as provided by subparagraph 
(B), subsection (a) shall not apply to any divi-
dend received by a United States shareholder 
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unless the amount of the dividend is invested in 
the United States pursuant to a domestic rein-
vestment plan which— 
‘‘(i) is approved by the taxpayer’s 
president, chief executive officer, or com-
parable official before the payment of such 
dividend and subsequently approved by the 
taxpayer’s board of directors, management 
committee, executive committee, or similar 
body, and 
‘‘(ii) provides for the reinvestment of 
such dividend in the United States (other 
than as payment for executive compensa-
tion), including as a source for the funding 
of worker hiring and training, infrastruc-
ture, research and development, capital in-
vestments, or the financial stabilization of 
the corporation for the purposes of job re-
tention or creation. 
‘‘(B) DISTRESSED
DEBT.—The require-
ments of this subparagraph are met if amounts 
repatriated are invested in distressed debt (as 
defined by the Secretary) for at least one year. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
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‘‘(1) APPLICABLE
FINANCIAL
STATEMENT.— 
The term ‘applicable financial statement’ means— 
‘‘(A) with respect to a United States 
shareholder which is required to file a financial 
statement with the Securities and Exchange 
Commission (or which is included in such a 
statement so filed by another person), the most 
recent audited annual financial statement (in-
cluding the notes which form an integral part 
of such statement) of such shareholder (or 
which includes such shareholder)— 
‘‘(i) which was so filed on or before 
June 30, 2007, and 
‘‘(ii) which was certified on or before 
June 30, 2007, as being prepared in ac-
cordance with generally accepted account-
ing principles, and 
‘‘(B) with respect to any other United 
States shareholder, the most recent audited fi-
nancial statement (including the notes which 
form an integral part of such statement) of 
such shareholder (or which includes such share-
holder)— 
‘‘(i) which was certified on or before 
June 30, 2007, as being prepared in ac-
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cordance with generally accepted account-
ing principles, and 
‘‘(ii) which is used for the purposes of 
a statement or report— 
‘‘(I) to creditors, 
‘‘(II) to shareholders, or 
‘‘(III) for any other substantial 
nontax purpose. 
‘‘(2) BASE PERIOD YEAR.— 
‘‘(A) IN GENERAL.—The base period year 
is the first taxable year ending in 2007. 
‘‘(B) MERGERS, ACQUISITIONS, ETC..— 
‘‘(i) IN
GENERAL.—Rules similar to 
the rules of subparagraphs (A) and (B) of 
section 41(f)(3) shall apply for purposes of 
this paragraph. 
‘‘(ii) SPIN-OFFS, ETC.—If there is a 
distribution to which section 355 (or so 
much of section 356 as relates to section 
355) applies during the base period year 
and the controlled corporation (within the 
meaning of section 355) is a United States 
shareholder— 
‘‘(I) the controlled corporation 
shall be treated as being in existence 
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during the period that the distributing 
corporation (within the meaning of 
section 355) is in existence, and 
‘‘(II) for purposes of applying 
subsection (b)(2) to the controlled cor-
poration and the distributing corpora-
tion, amounts described in subsection 
(b)(2)(B) which are received or in-
cludible by the distributing corpora-
tion or controlled corporation (as the 
case may be) before the distribution 
referred to in subclause (I) from a 
controlled foreign corporation shall be 
allocated between such corporations in 
proportion to their respective interests 
as United States shareholders of such 
controlled foreign corporation imme-
diately after such distribution. 
Subclause (II) shall not apply if neither 
the controlled corporation nor the distrib-
uting corporation is a United States share-
holder of such controlled foreign corpora-
tion immediately after such distribution. 
‘‘(3) DIVIDEND.—The term ‘dividend’ shall not 
include amounts includible in gross income as a divi-
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dend under section 78, 367, or 1248. In the case of 
a liquidation under section 332 to which section 
367(b) applies, the preceding sentence shall not 
apply to the extent the United States shareholder 
actually receives cash as part of the liquidation. 
‘‘(4) COORDINATION
WITH
DIVIDENDS
RE-
CEIVED DEDUCTION.—No deduction shall be allowed 
under section 243 or 245 for any dividend for which 
a deduction is allowed under this section. 
‘‘(5) CONTROLLED GROUPS.— 
‘‘(A) IN
GENERAL.—All United States 
shareholders which are members of an affiliated 
group filing a consolidated return under section 
1501 shall be treated as one United States 
shareholder. 
‘‘(B) 
APPLICATION
OF
$500,000,000 
LIMIT.—All corporations which are treated as a 
single employer under section 52(a) shall be 
limited to one $500,000,000 amount in sub-
section (b)(1)(A), and such amount shall be di-
vided among such corporations under regula-
tions prescribed by the Secretary. 
‘‘(C) PERMANENTLY
REINVESTED
EARN-
INGS.—If a financial statement is an applicable 
financial statement for more than 1 United 
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States shareholder, the amount applicable 
under subparagraph (B) or (C) of subsection 
(b)(1) shall be divided among such shareholders 
under regulations prescribed by the Secretary. 
‘‘(d) DENIAL OF FOREIGN TAX CREDIT; DENIAL OF 
CERTAIN EXPENSES.— 
‘‘(1) FOREIGN TAX CREDIT.—No credit shall be 
allowed under section 901 for any taxes paid or ac-
crued (or treated as paid or accrued) with respect to 
the deductible portion of— 
‘‘(A) any dividend, or 
‘‘(B) any amount described in subsection 
(a)(2) which is included in income under section 
951(a)(1)(A). 
No deduction shall be allowed under this chapter for 
any tax for which credit is not allowable by reason 
of the preceding sentence. 
‘‘(2) EXPENSES.—No deduction shall be al-
lowed for expenses properly allocated and appor-
tioned to the deductible portion described in para-
graph (1). 
‘‘(3) DEDUCTIBLE PORTION.—For purposes of 
paragraph (1), unless the taxpayer otherwise speci-
fies, the deductible portion of any dividend or other 
amount is the amount which bears the same ratio to 
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the amount of such dividend or other amount as the 
amount allowed as a deduction under subsection (a) 
for the taxable year bears to the amount described 
in subsection (b)(2)(A) for such year. 
‘‘(4) COORDINATION WITH SECTION 78.—Sec-
tion 78 shall not apply to any tax which is not allow-
able as a credit under section 901 by reason of this 
subsection. 
‘‘(e) INCREASE IN TAX ON INCLUDED AMOUNTS NOT 
REDUCED BY CREDITS, ETC.— 
‘‘(1) IN GENERAL.—Any tax under this chapter 
by reason of nondeductible CFC dividends shall not 
be treated as tax imposed by this chapter for pur-
poses of determining— 
‘‘(A) the amount of any credit allowable 
under this chapter, or 
‘‘(B) the amount of the tax imposed by 
section 55. 
Subparagraph (A) shall not apply to the credit 
under section 53 or to the credit under section 27(a) 
with respect to taxes which are imposed by foreign 
countries and possessions of the United States and 
are attributable to such dividends. 
‘‘(2) LIMITATION ON REDUCTION IN TAXABLE 
INCOME, ETC.— 
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‘‘(A) IN GENERAL.—The taxable income of 
any United States shareholder for any taxable 
year shall in no event be less than the amount 
of nondeductible CFC dividends received during 
such year. 
‘‘(B) COORDINATION WITH SECTION 172.— 
The nondeductible CFC dividends for any tax-
able year shall not be taken into account— 
‘‘(i) in determining under section 172 
the amount of any net operating loss for 
such taxable year, and 
‘‘(ii) in determining taxable income 
for such taxable year for purposes of the 
2nd sentence of section 172(b)(2). 
‘‘(3) NONDEDUCTIBLE
CFC
DIVIDENDS.—For 
purposes of this subsection, the term ‘nondeductible 
CFC dividends’ means the excess of the amount of 
dividends taken into account under subsection (a) 
over the deduction allowed under subsection (a) for 
such dividends. 
‘‘(f) ELECTION.—The taxpayer may elect to apply 
this section to— 
‘‘(1) the taxpayer’s last taxable year which be-
gins before the date of the enactment of this section, 
or 
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‘‘(2) the taxpayer’s first taxable year which be-
gins during the 1-year period beginning on such 
date. 
Such election may be made for a taxable year only if made 
before the due date (including extensions) for filing the 
return of tax for such taxable year.’’. 
(b) CLERICAL AMENDMENT.—The item in the table 
of sections for subpart F of part III of subchapter N of 
chapter 1 of such Code relating to section 965 is amended 
to read as follows: 
‘‘Sec. 965. Deduction for dividends received.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending on or after 
the date of the enactment of this Act. 
SEC. 104. GAIN OR LOSS FROM SALE OR EXCHANGE OF 
CERTAIN PREFERRED STOCK. 
(a) IN GENERAL.—For purposes of the Internal Rev-
enue Code of 1986, gain or loss from the sale or exchange 
of any applicable preferred stock by any applicable finan-
cial institution shall be treated as ordinary income or loss. 
(b) APPLICABLE PREFERRED STOCK.—For purposes 
of this section, the term ‘‘applicable preferred stock’’ 
means any stock— 
(1) which is preferred stock in— 
(A) the Federal National Mortgage Asso-
ciation, established pursuant to the Federal Na-
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tional Mortgage Association Charter Act (12 
U.S.C. 1716 et seq.), or 
(B) the Federal Home Loan Mortgage 
Corporation, established pursuant to the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1451 et seq.), and 
(2) which— 
(A) was held by the applicable financial in-
stitution on September 6, 2008, or 
(B) was sold or exchanged by the applica-
ble financial institution on or after January 1, 
2008, and before September 7, 2008. 
(c) APPLICABLE FINANCIAL INSTITUTION.—For pur-
poses of this section: 
(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘‘applicable financial institution’’ 
means— 
(A) a financial institution referred to in 
section 582(c)(2) of the Internal Revenue Code 
of 1986, or 
(B) a depository institution holding com-
pany (as defined in section 3(w)(1) of the Fed-
eral 
Deposit 
Insurance 
Act 
(12 
U.S.C. 
1813(w)(1))). 
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(2) SPECIAL RULES FOR CERTAIN SALES.—In 
the case of— 
(A) a sale or exchange described in sub-
section (b)(2)(B), an entity shall be treated as 
an applicable financial institution only if it was 
an entity described in subparagraph (A) or (B) 
of paragraph (1) at the time of the sale or ex-
change, and 
(B) a sale or exchange after September 6, 
2008, of preferred stock described in subsection 
(b)(2)(A), an entity shall be treated as an appli-
cable financial institution only if it was an enti-
ty described in subparagraph (A) or (B) of 
paragraph (1) at all times during the period be-
ginning on September 6, 2008, and ending on 
the date of the sale or exchange of the pre-
ferred stock. 
(d) SPECIAL RULE FOR CERTAIN PROPERTY NOT 
HELD ON SEPTEMBER 6, 2008.—The Secretary of the 
Treasury or the Secretary’s delegate may extend the appli-
cation of this section to all or a portion of the gain or 
loss from a sale or exchange in any case where— 
(1) an applicable financial institution sells or 
exchanges applicable preferred stock after Sep-
tember 6, 2008, which the applicable financial insti-
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tution did not hold on such date, but the basis of 
which in the hands of the applicable financial insti-
tution at the time of the sale or exchange is the 
same as the basis in the hands of the person which 
held such stock on such date, or 
(2) the applicable financial institution is a part-
ner in a partnership which— 
(A) held such stock on September 6, 2008, 
and later sold or exchanged such stock, or 
(B) sold or exchanged such stock during 
the period described in subsection (b)(2)(B). 
(e) REGULATORY AUTHORITY.—The Secretary of the 
Treasury or the Secretary’s delegate may prescribe such 
guidance, rules, or regulations as are necessary to carry 
out the purposes of this section. 
(f) EFFECTIVE DATE.—This section shall apply to 
sales or exchanges occurring after December 31, 2007, in 
taxable years ending after such date. 
SEC. 105. REPEAL OF COMMUNITY REINVESTMENT ACT. 
The Community Reinvestment Act of 1977 (12 
U.S.C. 2901 et seq.) is hereby repealed. 
SEC. 106. NET WORTH CERTIFICATE PROGRAM. 
(a) ESTABLISHMENT; PURPOSES.— 
(1) ESTABLISHMENT.—As soon as possible 
after the date of the enactment of this Act, the 
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pository Institutions Act of 1982 (Public Law 97– 
320; 96 Stat. 1489); 
(2) be made available only for troubled financial 
depository institutions that the Corporation deter-
mines could be financially viable if provided solvency 
assistance under the program; 
(3) provide for the Corporation to purchase 
capital in troubled insured depository institutions in 
the form of subordinated debentures or net worth 
certificates in such institutions; 
(4) provide that insured depository institutions 
participating in the program shall agree to such reg-
ulations and terms of the program as the Corpora-
tion shall provide, which shall include strict over-
sight and supervision, including limitations on the 
compensation of senior executive officers of such in-
stitutions and terms for removal of officers for poor 
management; 
(5) provide that the Corporation shall fund net 
worth certificates under the program by issuance of 
Corporation senior notes and obligations to partici-
pating insured depository institutions; 
(6) provide that the interest rate on net worth 
certificates issued under the program and the senior 
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notes and obligations issued under the program by 
the Corporation shall be identical; 
(7) not involve any subsidy, appropriation of 
funds, or other cash outlay or use of taxpayer funds; 
and 
(8) provide that asset sale transactions under 
the program be held in the private market. 
(c) REGULATIONS.—The Board of Directors of the 
Corporation shall issue any regulations necessary to carry 
out the net worth certificate program under this section. 
TITLE 
II—GOVERNMENT-SPON-
SORED ENTERPRISES FREE 
MARKET REFORM 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Government-Spon-
sored Enterprises Free Market Reform Act of 2008’’. 
SEC. 202. DEFINITIONS. 
For purposes of this title, the following definitions 
shall apply: 
(1) CHARTER.—The term ‘‘charter’’ means— 
(A) with respect to the Federal National 
Mortgage Association, the Federal National 
Mortgage Association Charter Act (12 U.S.C. 
1716 et seq.); and 
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(B) with respect to the Federal Home 
Loan Mortgage Corporation, the Federal Home 
Loan Mortgage Corporation Act (12 U.S.C. 
1451 et seq.). 
(2) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Federal Housing Finance Agency 
(3) 
ENTERPRISE.—The 
term 
‘‘enterprise’’ 
means— 
(A) the Federal National Mortgage Asso-
ciation; and 
(B) the Federal Home Loan Mortgage 
Corporation. 
(4) 
GUARANTEE.—The 
term 
‘‘guarantee’’ 
means, with respect to an enterprise, the credit sup-
port of the enterprise that is provided by the Fed-
eral Government through its charter as a govern-
ment-sponsored enterprise. 
SEC. 203. TERMINATION OF CURRENT CONSERVATORSHIP. 
(a) IN GENERAL.—Upon the expiration of the period 
referred to in subsection (b), the Director of the Federal 
Housing Finance Agency shall determine, with respect to 
each enterprise, if the enterprise is financially viable at 
that time and— 
(1) if the Director determines that the enter-
prise is financially viable, immediately take all ac-
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tions necessary to terminate the conservatorship for 
each of the enterprises; or 
(2) if the Director determines that the enter-
prise is not financially viable, immediately appoint 
the Federal Housing Finance Agency as receiver 
under section 1367 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
and carry out such receivership under the authority 
of such section. 
(b) TIMING.—The period referred to in this sub-
section is, with respect to an enterprise— 
(1) except as provided in paragraph (2), the 24- 
month beginning upon the date of the enactment of 
this Act; or 
(2) if the Director determines before the expira-
tion of the period referred to in paragraph (1) that 
the financial markets would be adversely affected 
without the extension of such period under this 
paragraph with respect to that enterprise, the 30- 
month period beginning upon the date of the enact-
ment of this Act. 
(c) FINANCIAL VIABILITY.—The Director may not 
determine that an enterprise is financially viable for pur-
poses of subsection (a) if the Director determines that any 
of the conditions for receivership set forth in paragraph 
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(3) or (4) of section 1367(a) of the Federal Housing En-
terprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4617(a)) exists at the time with respect to the en-
terprise. 
SEC. 204. LIMITATION OF ENTERPRISE AUTHORITY UPON 
EMERGENCE FROM CONSERVATORSHIP. 
(a) REVISED AUTHORITY.—Upon the expiration of 
the period referred to in section 203(b), if the Director 
makes the determination under section 203(a)(1), the fol-
lowing provisions shall take effect: 
(1) PORTFOLIO
LIMITATIONS.—Subtitle B of 
title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4611 et seq.) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 1369E. RESTRICTION ON MORTGAGE ASSETS OF EN-
TERPRISES. 
‘‘(a) RESTRICTION.—No enterprise shall own, as of 
any applicable date in this subsection or thereafter, mort-
gage assets in excess of— 
‘‘(1) upon the expiration of the period referred 
to in section 203(b) of the Government-Sponsored 
Enterprises Free Market Reform Act of 2008, 
$850,000,000,000; or 
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‘‘(2) on December 31 of each year thereafter, 
80.0 percent of the aggregate amount of mortgage 
assets of the enterprise as of December 31 of the 
immediately preceding calendar year; 
except that in no event shall an enterprise be required 
under this section to own less than $250,000,000,000 in 
mortgage assets. 
‘‘(b) DEFINITION OF MORTGAGE ASSETS.—For pur-
poses of this section, the term ‘mortgage assets’ means, 
with respect to an enterprise, assets of such enterprise 
consisting of mortgages, mortgage loans, mortgage-related 
securities, participation certificates, mortgage-backed 
commercial paper, obligations of real estate mortgage in-
vestment conduits and similar assets, in each case to the 
extent such assets would appear on the balance sheet of 
such enterprise in accordance with generally accepted ac-
counting principles in effect in the United States as of 
September 7, 2008 (as set forth in the opinions and pro-
nouncements of the Accounting Principles Board and the 
American Institute of Certified Public Accountants and 
statements and pronouncements of the Financial Account-
ing Standards Board from time to time; and without giv-
ing any effect to any change that may be made after Sep-
tember 7, 2008, in respect of Statement of Financial Ac-
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counting Standards No. 140 or any similar accounting 
standard).’’. 
(2) INCREASE IN MINIMUM CAPITAL REQUIRE-
MENT.—Section 1362 of the Federal Housing En-
terprises Financial Safety and Soundness Act of 
1992 (12 U.S.C. 4612), as amended by section 1111 
of the Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is amended— 
(A) in subsection (a), by striking ‘‘For 
purposes of this subtitle, the minimum capital 
level for each enterprise shall be’’ and inserting 
‘‘The minimum capital level established under 
subsection (g) for each enterprise may not be 
lower than’’; 
(B) in subsection (c)— 
(i) by striking ‘‘subsections (a) and’’ 
and inserting ‘‘subsection’’; 
(ii) by striking ‘‘regulated entities’’ 
the first place such term appears and in-
serting ‘‘Federal Home Loan Banks’’; 
(iii) by striking ‘‘for the enterprises,’’; 
(iv) by striking ‘‘, or for both the en-
terprises and the banks,’’; 
(v) by striking ‘‘the level specified in 
subsection (a) for the enterprises or’’; and 
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(vi) by striking ‘‘the regulated entities 
operate’’ and inserting ‘‘such banks oper-
ate’’; 
(C) in subsection (d)(1)— 
(i) by striking ‘‘subsections (a) and’’ 
and inserting ‘‘subsection’’; and 
(ii) by striking ‘‘regulated entity’’ 
each place such term appears and inserting 
‘‘Federal home loan bank’’; 
(D) in subsection (e), by striking ‘‘regu-
lated entity’’ each place such term appears and 
inserting ‘‘Federal home loan bank’’; 
(E) in subsection (f)— 
(i) by striking ‘‘the amount of core 
capital maintained by the enterprises,’’; 
and 
(ii) by striking ‘‘regulated entities’’ 
and inserting ‘‘banks’’; and 
(F) by adding at the end the following new 
subsection: 
‘‘(g) ESTABLISHMENT OF REVISED MINIMUM CAP-
ITAL LEVELS.— 
‘‘(1) IN GENERAL.—The Director shall cause 
the enterprises to achieve and maintain adequate 
capital by establishing minimum levels of capital for 
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the enterprises,which may include any prudential 
standards necessary to ensure long-term institutional 
viability and competitive equity in the market, and 
by using such other methods as the Director deems 
appropriate. 
‘‘(2) AUTHORITY.—The Director shall have the 
authority to establish such minimum level of capital 
for an enterprise in excess of the level specified 
under subsection (a) as the Director, in the Direc-
tor’s discretion, deems to be necessary or appro-
priate in light of the particular circumstances of the 
enterprise. 
‘‘(h) FAILURE TO MAINTAIN REVISED MINIMUM 
CAPITAL LEVELS.— 
‘‘(1) UNSAFE AND UNSOUND PRACTICE OR CON-
DITION.—Failure of a enterprise to maintain capital 
at or above its minimum level as established pursu-
ant to subsection (c) of this section may be deemed 
by the Director, in his discretion, to constitute an 
unsafe and unsound practice or condition within the 
meaning of this title. 
‘‘(2) 
DIRECTIVE
TO
ACHIEVE
CAPITAL 
LEVEL.— 
‘‘(A) AUTHORITY.—In addition to, or in 
lieu of, any other action authorized by law, in-
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cluding paragraph (1), the Director may issue 
a directive to an enterprise that fails to main-
tain capital at or above its required level as es-
tablished pursuant to subsection (c) of this sec-
tion. 
‘‘(B) PLAN.—Such directive may require 
the enterprise to submit and adhere to a plan 
acceptable to the Director describing the means 
and timing by which the enterprise shall achieve 
its required capital level. 
‘‘(C) ENFORCEMENT.—Any such directive 
issued pursuant to this paragraph, including 
plans submitted pursuant thereto, shall be en-
forceable under the provisions of subtitle C of 
this title to the same extent as an effective and 
outstanding order issued pursuant to subtitle C 
of this title which has become final. 
‘‘(3) ADHERENCE TO PLAN.— 
‘‘(A) CONSIDERATION.—The Director may 
consider such enterprise’s progress in adhering 
to any plan required under this subsection 
whenever such enterprise seeks the requisite ap-
proval of the Director for any proposal which 
would divert earnings, diminish capital, or oth-
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erwise impede such enterprise’s progress in 
achieving its minimum capital level. 
‘‘(B) DENIAL.—The Director may deny 
such approval where it determines that such 
proposal would adversely affect the ability of 
the enterprise to comply with such plan.’’. 
(3) REPEAL
OF
INCREASES
TO
CONFORMING 
LOAN LIMITS.— 
(A) REPEAL OF TEMPORARY INCREASE IN 
ECONOMIC STIMULUS ACT.—Section 201 of the 
Economic Stimulus Act of 2008 (Public Law 
110–185) is hereby repealed. 
(B) REPEAL OF GENERAL LIMIT AND PER-
MANENT
HIGH-COST
AREA
INCREASE.—Para-
graph (2) of section 302(b) of the Federal Na-
tional Mortgage Association Charter Act (12 
U.S.C. 1717(b)(2)) and paragraph (2) of sec-
tion 305(a) of the Federal Home Loan Mort-
gage Corporation Act (12 U.S.C. 1454(a)(2)) 
are each amended to read as such sections were 
in effect immediately before the enactment of 
the Housing and Economic Recovery Act of 
2008 (Public Law 110–289). 
(C) REPEAL
OF
NEW
HOUSING
PRICE 
INDEX.—Section 1322 of the Federal Housing 
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Enterprises Financial Safety and Soundness 
Act of 1992, as added by section 1124(d) of the 
Housing and Economic Recovery Act of 2008 
(Public Law 110–289), is hereby repealed. 
(D) REPEAL.—Section 1124 of the Hous-
ing and Economic Recovery Act of 2008 (Public 
Law 110–289) is hereby repealed. 
(E) ESTABLISHMENT
OF
CONFORMING 
LOAN LIMIT.—For the year in which the expira-
tion of the period referred to in section 203(b) 
of this section occurs, the limitations governing 
the maximum original principal obligation of 
conventional mortgages that may be purchased 
by the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Cor-
poration, referred to in section 302(b)(2) of the 
Federal National Mortgage Association Charter 
Act (12 U.S.C. 1717(b)(2)) and section 
305(a)(2) of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)(2)), re-
spectively, shall be considered to be— 
(i) $417,000 for a mortgage secured 
by a single-family residence, 
(ii) $533,850 for a mortgage secured 
by a 2-family residence, 
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