and which shall have authority to sue and to be sued in 
any court of competent jurisdiction, Federal or State. 
(b) TREATMENT OF CORPORATION.—The Corpora-
tion, including its franchise, its capital, reserves, and sur-
plus, and its loans and income, shall be exempt from tax-
ation referred to in section 6(c), except that any real prop-
erty of the Corporation shall be subject to taxation to the 
same extent, according to its value, as other real property 
is taxed. 
SEC. 3. BOARD. 
(a) IN GENERAL.—The Corporation shall be under 
the direction of a Board of Directors and shall be operated 
by the Board under such bylaws, rules, and regulations 
as the Board may prescribe for the accomplishment of the 
purposes and intent of this Act and the prudent use of 
the capital and authority of the Corporation. 
(b) MEMBERS.—The Board shall consist of five mem-
bers, as follows: 
(1) The Secretary of the Treasury, or the des-
ignee of the Secretary. 
(2) The Comptroller General of the United 
States, or the designee of the Comptroller. 
(3) A designee of the Board of Directors of the 
Federal Deposit Insurance Corporation. 
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(4) The Secretary of Housing and Urban Devel-
opment, or the designee of the Secretary. 
(5) The Director of the Office of Federal Hous-
ing Enterprise Oversight of the Department of 
Housing and Urban Development (or any successor 
agency of such Office responsible for supervision and 
regulation of the Federal National Mortgage Asso-
ciation and the Federal Home Loan Mortgage Cor-
poration), or the designee of the Director. 
(c) NO COMPENSATION.—Members of the Board 
shall serve as such directors without additional compensa-
tion. 
SEC. 4. CAPITAL STOCK. 
(a) IN GENERAL.—The Corporation shall have cap-
ital stock, $25,000,000,000, which shall be subscribed to 
by the Secretary of the Treasury on behalf of the United 
States Government. The Corporation shall issue to the 
Secretary of the Treasury receipts for payments by the 
Secretary for or on account of such stock, and such re-
ceipts shall be evidence of the stock ownership of the 
United States. Payments for such subscriptions shall be 
subject to call in whole or in part by the Board and shall 
be made at such time or times as the Secretary of the 
Treasury deems advisable. 
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(b) PUBLIC DEBT TRANSACTION.—For the purpose 
of purchasing shares of capital stock of the Corporation, 
the Secretary may use as a public-debt transaction the 
proceeds of any securities issued under chapter 31 of title 
31, United States Code. 
SEC. 5. MINIMUM CAPITAL RATIO REQUIREMENTS. 
The Board shall on an annual basis establish a min-
imum capital ratio requirement for the Corporation and 
the Corporation shall at all times hold such capital as may 
be required to comply with the applicable annual ratio. 
Such ratio shall be risk-adjusted to reflect the Corpora-
tion’s direct and indirect credit exposure, and may not be 
lower than the minimum capital ratio required for similar 
financial institutions under the international guidelines 
and standards for capital adequacy issued by the Basel 
Committee on Banking Supervision established by the 
Bank for International Settlements. 
SEC. 6. BORROWING AUTHORITY. 
(a) ISSUANCE.— 
(1) AUTHORITY.—The Corporation may issue 
bonds in an aggregate amount not to exceed 
$300,000,000,000, which may be sold by the Cor-
poration to obtain funds for carrying out the pur-
poses of this Act, or exchanged as hereinafter pro-
vided. 
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(2) TERMS.—Such bonds shall be issued in 
such denominations as the Board shall prescribe, 
shall mature within a period of not more than 10 
years from the date of their issue, and shall be fully 
and unconditionally guaranteed as to interest only 
by the United States, and such guaranty shall be ex-
pressed on the face thereof. The bonds shall bear in-
terest at a rate determined by the Board and ap-
proved by the Secretary of the Treasury prior to 
issue. 
(3) ISSUANCE
THROUGH
GINNIE
MAE.—The 
Corporation may issue bonds under this subsection 
through the Government National Mortgage Associa-
tion and the Association is hereby authorized to pro-
vide for such issuance, subject to the aggregate 
amount limitation under paragraph (1). 
(b) TREASURY BORROWING.—In the event that the 
Corporation is unable to pay upon demand, when due, the 
interest or principal on any such bonds, the Secretary of 
the Treasury shall pay to the Corporation the amount of 
such interest or principal, which is hereby authorized to 
be appropriated to the Corporation, and the Corporation 
shall pay the amount of such interest or principal to the 
holders of the bonds. Upon the payment of such interest 
or principal by the Secretary, the amount so paid shall 
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become an obligation of the Corporation to the United 
States and shall bear interest at the same rate as that 
borne by the bonds upon which the interest or principal 
has been so paid. 
(c) TREATMENT.—The bonds issued by the Corpora-
tion under this section shall be exempt, both as to prin-
cipal and interest, from all taxation (except surtaxes, es-
tate, inheritance, and gift taxes) now or hereafter imposed 
by the United States or any District, Territory, depend-
ency, or possession thereof, or by any State, county, mu-
nicipality, or local taxing authority. 
SEC. 7. MORTGAGE RELIEF. 
(a) ACQUISITION OF MORTGAGES.— 
(1) AUTHORITY.—The Corporation may, during 
the three-year period beginning upon the date of the 
enactment of this Act— 
(A) to acquire in exchange for bonds 
issued by the Corporation, home mortgages and 
other obligations and liens secured by real es-
tate (including the interest of a vendor under a 
purchase-money mortgage or contract) recorded 
or filed in the proper office or executed before 
the date of the enactment of this Act; and 
(B) in connection with any such exchange, 
to make advances in cash to pay the taxes and 
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assessments on the real estate, to provide for 
necessary maintenance and make necessary re-
pairs, to meet the incidental expenses of the 
transaction, and to pay such amounts, not ex-
ceeding $200 or such greater amount as may be 
approved by the Board, to the holder of the 
mortgage, obligation, or lien acquired as may be 
the difference between the face value of the 
bonds exchanged plus accrued interest thereon 
and the purchase price of the mortgage, obliga-
tion, or lien. 
(2) LIMITATIONS.— 
(A) IN GENERAL.—The face value of bonds 
exchanged pursuant to paragraph (1) for any 
home mortgage or other obligation or lien se-
cured by real estate, plus accrued interest 
thereon and any cash advanced pursuant to 
paragraph (1)(B), shall not exceed such limits 
as the Board may establish, but shall not in 
any case exceed the lesser of— 
(i) $900,000; or 
(ii) 90 percent of the fair market 
value of the real estate involved, as deter-
mined by an appraisal made by the Cor-
poration. 
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(B) UPSIDE-DOWN
MORTGAGES.—In any 
case in which the amount of the face value of 
the bonds exchanged plus accrued interest 
thereon and the cash advanced is less than the 
amount the home owner owes with respect to 
the home mortgage or other obligation or lien 
so acquired by the Corporation, the Corporation 
shall 
credit 
the 
difference 
between 
such 
amounts to the home owner and shall reduce 
the amount owed by the home owner to the 
Corporation to that extent. 
(3) AMORTIZATION.—Each home mortgage or 
other obligation or lien acquired by the Corporation 
pursuant to this section shall be carried as a first 
lien or refinanced as a home mortgage by the Cor-
poration on the basis of the price paid by the Cor-
poration for the mortgage, obligation, or lien, and 
shall be amortized by means of monthly payments 
sufficient to retire the interest and principal within 
a period of not to exceed 40 years. 
(4) PAYMENTS BY HOME OWNER.— 
(A) TIMING.—Notwithstanding paragraph 
(3), the amortization payments of any home 
owner may be made quarterly, semiannually, or 
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annually, if in the judgment of the Corporation 
the situation of the home owner so requires. 
(B) FHA CONFORMING INTEREST RATES 
AND TERMS.—The Corporation shall set terms 
for repayment of the unpaid balance of the obli-
gation of the home owner to the Corporation 
that are consistent with the rates and terms 
being offered at the time for mortgages on real 
estate of a similar type that are insured under 
title II of the National Housing Act (12 U.S.C. 
1707 et seq.), as adjusted for risk premiums to 
be established by the Board. 
(C) EXTENSION.—The Corporation may at 
any time grant an extension of time to any 
home owner for the payment of any installment 
of principal or interest owed by the home owner 
to the Corporation if, in the judgment of the 
Corporation, the circumstances of the home 
owner and the condition of the security justify 
such extension, and no payment of any install-
ment of principal shall be required during the 
three-year period beginning upon the date of 
the enactment of this Act if the home owner is 
not in default with respect to any other condi-
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tion or covenant of the mortgage of the home 
owner. 
(b) NONDISCRIMINATION.—No discrimination shall 
be made under this Act against any home mortgage by 
reason of the fact that the real estate securing such mort-
gage is located in a municipality, county, or taxing district 
which is in default upon any of its obligations. 
(c) CASH LOANS ON UNENCUMBERED PROPERTY.— 
(1) AUTHORITY.—The Corporation may, during 
the three-year period beginning upon the date of the 
enactment of this Act, make loans in cash subject to 
the same limitations and for the same purposes for 
which cash advances may be made under subsection 
(a), in cases in which the property is not otherwise 
encumbered. 
(2) LIMITATION ON AMOUNT.—A loan pursuant 
to this subsection may not exceed 50 percent of the 
value of the property securing the loan, as deter-
mined upon an appraisal made by the Corporation. 
(3) TERMS.—Each such loan shall— 
(A) be secured by a duly recorded home 
mortgage; 
(B) bear interest at the same rate; and 
(C) be subject to the same provisions with 
respect to amortization and extensions as are 
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applicable in the case of obligations refinanced 
under subsection (a). 
(d) CASH ADVANCES FOR REDEMPTION OF FORE-
CLOSED
HOMES.—The Corporation may, during the 
three-year period beginning upon the date of the enact-
ment of this Act, exchange bonds and advance cash, sub-
ject to the limitations provided in subsection (a), to re-
deem or recover homes lost by the owners by foreclosure 
or forced sale by a trustee under a deed of trust or under 
power of attorney, or by voluntary surrender to the mort-
gagee within two years prior to such exchange or advance. 
(e) APPRAISALS.—The Board shall establish rules for 
the appraisal of the property on which loans are made 
under this section to accomplish the purposes of this Act. 
(f) BONDS ACCEPTED IN PAYMENT.—Any person in-
debted to the Corporation may make payment to the Cor-
poration in part or in full by delivery to the Corporation 
of its bonds, which shall be accepted by the Corporation 
for such purpose at face value. 
SEC. 8. OTHER PROVISIONS. 
(a) OFFICERS AND EMPLOYEES.—The Corporation 
shall have power to select, employ, and fix the compensa-
tion of such officers, employees, attorneys, or agents as 
shall be necessary for the performance of its duties under 
this Act, without regard to the provisions of other laws 
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applicable to the employment or compensation of officers, 
employees, attorneys, or agents of the United States. No 
such officer, employee, attorney, or agent shall be paid 
compensation at a rate in excess of market rates as docu-
mented by the Corporation. In carrying out its duties 
under this section, the Corporation shall utilize the serv-
ices of private persons, including real estate and loan port-
folio asset management, property management, auction 
marketing, and brokerage services, if such services are 
available in the private sector and the Corporation deter-
mines utilization of such services is practicable and effi-
cient. Compensation paid to members of the Board shall 
not exceed the rate provided by law. 
(b) USE OF MAILS.—The Corporation may use the 
United States mails in the same manner and under the 
same conditions as other departments and agencies of the 
United States. 
(c) SALARIES
AND EXPENSES.—The Corporation 
shall pay such proportion of the expenses of the members 
of the Board, and such proportion of the salaries and ex-
penses of its officers and employees, as the Board deter-
mines to be equitable, and may use the facilities of Federal 
Home Loan Banks, upon making reasonable compensation 
for such use, as determined by the Board. 
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(d) BYLAWS, RULES, AND
REGULATIONS.—The 
Board may make such bylaws, rules, and regulations, not 
inconsistent with the provisions of this Act, as may be nec-
essary for the proper conduct of the affairs of the Corpora-
tion. 
(e) RETIREMENT OF STOCK.—The Corporation shall 
retire and cancel the bonds and stock of the Corporation 
as rapidly as the resources of the Corporation will permit. 
Upon the retirement of such stock, the reasonable value 
of the stock as determined by the Board shall be paid into 
the Treasury of the United States and the receipts issued 
therefor shall be canceled. 
(f) OPERATING EXPENSES.—The Board shall provide 
for the operating expenses of the Corporation to be met 
through use of any returns on investments and loans of 
the Corporation. 
SEC. 9. LIQUIDATION. 
The Board shall proceed to liquidate the Corporation 
when its purposes have been accomplished, and shall pay 
any surplus or accumulated funds into the Treasury of 
the United States. The Corporation may declare and pay 
such dividends to the United States as may be earned and 
the Board, in its judgment, determines it is proper for 
the Corporation to pay. 
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SEC. 10. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) CORPORATION.—The term ‘‘Corporation’’ 
means the Home Owners’ Loan Corporation estab-
lished under section 2. 
(2) BOARD.—The term ‘‘Board’’ means the 
Board of Directors of the Corporation. 
(3) REAL
ESTATE.—The term ‘‘real estate’’ 
means real estate— 
(A)(i) upon which there is located a dwell-
ing— 
(I) for not more than four families; 
and 
(II) that is used by the owner of the 
dwelling as a principal residence; and 
(ii) that is held in fee simple or on a lease-
hold under a renewable lease for not less than 
99 years; and 
(iii) that has a value not exceeding 
$1,000,000; or 
(B)(i) consisting of a one-family unit in a 
multifamily project, including a project in which 
the dwelling units are attached or are manufac-
tured housing units, semi-detached, or de-
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tached, that is used by the owner as a principal 
residence; 
(ii) that is held in fee simple or on a long- 
term leasehold, together with an undivided in-
terest in the common areas and facilities that 
serve the project; and 
(iii) that has a value not exceeding 
$500,000. 
Æ 
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