(i) $417,000 for a mortgage secured 
by a single-family residence, 
(ii) $533,850 for a mortgage secured 
by a 2-family residence, 
(iii) $645,300 for a mortgage secured 
by a 3-family residence, and 
(iv) $801,950 for a mortgage secured 
by a 4-family residence, 
and such limits shall be adjusted effective each 
January 1 thereafter in accordance with such 
sections 302(b)(2) and 305(a)(2). 
(4) INCREASE IN GUARANTEE FEES.—Subpart 
A of part 2 of subtitle A of Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
is amended by adding after section 1326 (12 U.S.C. 
4546) the following new section: 
‘‘SEC. 1327. ENTERPRISE GUARANTEE FEES. 
‘‘(a) INCREASE.—Subject to subsection (b), the Di-
rector shall, by regulation or order, require that each en-
terprise charge a guarantee fee, in connection with any 
mortgage guaranteed after the expiration of the 3-year pe-
riod beginning on the date of the enactment of the GSE 
Bailout Elimination and Taxpayer Protection Act, in an 
amount that the Director determines is equivalent to the 
amount that the enterprise would charge for such a fee 
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if the enterprise were held to the same capital standards 
as private banks or financial institutions. 
‘‘(b) OPTION TO PHASE-IN OVER 3 YEARS.—The Di-
rector may, at the discretion of the Director, by regulation 
or order, provide for compliance with subsection (a) by re-
quiring each enterprise to increase the guarantee fee 
charged by the enterprise incrementally during the 3-year 
period specified in subsection (a) in a manner sufficient 
to comply with subsection (a) upon the expiration of the 
period specified in subsection (a). 
‘‘(c) FLEXIBILITY
IN
DETERMINATION
OF
IN-
CREASE.—To determine the amount of the increase under 
subsection (a), the Director shall establish a pricing mech-
anism as the Director considers appropriate, taking into 
consideration current market conditions and any data col-
lected pursuant to section 1601 of the Housing and Eco-
nomic Recovery Act of 2008 (12 U.S.C. 4514a). 
‘‘(d) DEFINITION OF GUARANTEE FEE.—For pur-
poses of this section, the term ‘guarantee fee’ means a 
fee charged by an enterprise in connection with any guar-
antee, issued by the enterprise, of the timely payment of 
principal and interest on securities, notes, and other obli-
gations based on or backed by mortgages on residential 
real properties. Such term includes— 
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‘‘(1) the guaranty fee charged by the Federal 
National Mortgage Association with respect to mort-
gage-backed securities; and 
‘‘(2) the management and guarantee fee 
charged by the Federal Home Loan Mortgage Cor-
poration with respect to participation certificates.’’. 
(5) PROHIBITION OF REDUCTION IN RATE OF 
DIVIDENDS.— 
(A) FANNIE
MAE.—Section 304 of the 
Federal National Mortgage Association Charter 
Act (12 U.S.C. 1719) is amended by adding at 
the end the following new subsection: 
‘‘(h) PROHIBITION OF REDUCTION IN RATE OF DIVI-
DENDS
ON
SENIOR
PREFERRED
STOCK.—Notwith-
standing any other provision of law, any provision of the 
Senior Preferred Stock Purchase Agreement entered into 
between the Department of the Treasury and the corpora-
tion in September 2008 (as such Agreement may be 
amended and restated), or any provision of any certificate 
in connection with such Agreement creating or designating 
the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Pref-
erence Senior Preferred Stock of the corporation issued 
pursuant to such Agreement, the rate of dividends paid 
on the Variable Liquidation Preference Senior Preferred 
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Stock of the corporation issued pursuant to such Agree-
ment shall not be reduced from the rate in effect pursuant 
to such Agreement as of March 1, 2011.’’. 
(B) FREDDIE
MAC.—Section 306 of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1455) is amended by adding at the 
end the following new subsection: 
‘‘(m) PROHIBITION
OF REDUCTION
IN RATE
OF 
DIVIDENDS ON SENIOR PREFERRED STOCK.—Notwith-
standing any other provision of law, any provision of the 
Senior Preferred Stock Purchase Agreement entered into 
between the Department of the Treasury and the Corpora-
tion in September 2008 (as such Agreement may be 
amended and restated), or any provision of any certificate 
in connection with such Agreement creating or designating 
the terms, powers, preferences, privileges, limitations, or 
any other conditions of the Variable Liquidation Pref-
erence Senior Preferred Stock of the Corporation issued 
pursuant to such Agreement, the rate of dividends paid 
on the Variable Liquidation Preference Senior Preferred 
Stock of the Corporation issued pursuant to such Agree-
ment shall not be reduced from the rate in effect pursuant 
to such Agreement as of March 1, 2011.’’. 
(b) REVISED AUTHORITY.—Upon the expiration of 
the period referred to in section 3(b), if the Director 
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makes the determination under section 3(a)(1), the fol-
lowing provisions shall take effect: 
(1) 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) 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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such the enterprises and by using such other meth-
ods 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 (g) 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-
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-
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tablished pursuant to subsection (g) 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-
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 
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proposal would adversely affect the ability of 
the enterprise to comply with such plan.’’. 
(2) REQUIREMENT OF MINIMUM DOWNPAYMENT 
FOR MORTGAGES PURCHASED.— 
(A) FANNIE MAE.—Subsection (b) of sec-
tion 302 of the Federal National Mortgage As-
sociation Charter Act (12 U.S.C. 1717(b)) is 
amended by adding at the end the following 
new paragraph: 
‘‘(7) Notwithstanding any other provision of this Act, 
the corporation may not newly purchase any mortgage un-
less the mortgagor has paid, in cash or its equivalent on 
account of the property securing repayment such mort-
gage, in accordance with regulations issued by the Direc-
tor of the Federal Housing Finance Agency, not less 
than— 
‘‘(A) for any mortgage purchased during the 
12-month period beginning upon the expiration of 
the period referred to in section 3(b) of the GSE 
Bailout Elimination and Taxpayer Protection Act, 5 
percent of the appraised value of the property; 
‘‘(B) for any mortgage purchased during the 
12-month period beginning upon the expiration of 
the 12-month period referred to in subparagraph (A) 
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of this paragraph, 7.5 percent of the appraised value 
of the property; and 
‘‘(C) for any mortgage purchased during the 
12-month period beginning upon the expiration of 
the 12-month period referred to in subparagraph 
(B) of this paragraph, 10 percent of the appraised 
value of the property.’’. 
(B) FREDDIE MAC.—Subsection (a) of sec-
tion 305 of the Federal Home Loan Mortgage 
Corporation Act (12 U.S.C. 1454(a)) is amend-
ed by adding at the end the following new para-
graph: 
‘‘(6) Notwithstanding any other provision of this Act, 
the Corporation may not newly purchase any mortgage 
unless the mortgagor has paid, in cash or its equivalent 
on account of the property securing repayment such mort-
gage, in accordance with regulations issued by the Direc-
tor of the Federal Housing Finance Agency, not less 
than— 
‘‘(A) for any mortgage purchased during the 
12-month period beginning upon the expiration of 
the period referred to in section 3(b) of the GSE 
Bailout Elimination and Taxpayer Protection Act, 5 
percent of the appraised value of the property; 
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‘‘(B) for any mortgage purchased during the 
12-month period beginning upon the expiration of 
the 12-month period referred to in subparagraph (A) 
of this paragraph, 7.5 percent of the appraised value 
of the property; and 
‘‘(C) for any mortgage purchased during the 
12-month period beginning upon the expiration of 
the 12-month period referred to in subparagraph 
(B) of this paragraph, 10 percent of the appraised 
value of the property.’’. 
(3) REQUIREMENT TO PAY STATE AND LOCAL 
TAXES.— 
(A) FANNIE MAE.—Paragraph (2) of sec-
tion 309(c) of the Federal National Mortgage 
Association 
Charter 
Act 
(12 
U.S.C. 
1723a(c)(2)) is amended— 
(i) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
(ii) by striking ‘‘except that any’’ and 
inserting ‘‘and any’’. 
(B) FREDDIE MAC.—Section 303(e) of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1452(e)) is amended— 
(i) by striking ‘‘shall be exempt from’’ 
and inserting ‘‘shall be subject to’’; and 
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(ii) by striking ‘‘except that any’’ and 
inserting ‘‘and any’’. 
(4) REPEALS RELATING TO REGISTRATION OF 
SECURITIES.— 
(A) FANNIE MAE.— 
(i) 
MORTGAGE-BACKED
SECURI-
TIES.—Section 304(d) of the Federal Na-
tional Mortgage Association Charter Act 
(12 U.S.C. 1719(d)) is amended by strik-
ing the fourth sentence. 
(ii) SUBORDINATE
OBLIGATIONS.— 
Section 304(e) of the Federal National 
Mortgage Association Charter Act (12 
U.S.C. 1719(e)) is amended by striking the 
fourth sentence. 
(B) FREDDIE
MAC.—Section 306 of the 
Federal Home Loan Mortgage Corporation Act 
(12 U.S.C. 1455) is amended by striking sub-
section (g). 
SEC. 5. REQUIRED WIND DOWN OF OPERATIONS AND DIS-
SOLUTION OF ENTERPRISE. 
(a) APPLICABILITY.—This section shall apply to an 
enterprise upon the expiration of the 3-year period that 
begins upon the expiration of the period referred to in sec-
tion 3(b). 
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