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‘‘(C) any independent contractor for a reg-
ulated entity (including any attorney, appraiser, 
or accountant), if— 
‘‘(i) the independent contractor know-
ingly or recklessly participates in— 
‘‘(I) any violation of any law or 
regulation; 
‘‘(II) any breach of fiduciary 
duty; or 
‘‘(III) any unsafe or unsound 
practice; and 
‘‘(ii) such violation, breach, or prac-
tice caused, or is likely to cause, more than 
a minimal financial loss to, or a significant 
adverse effect on, the regulated entity; and 
‘‘(D) any not-for-profit corporation that re-
ceives its principal funding, on an ongoing 
basis, from any regulated entity.’’. 
(8) by redesignating paragraphs (8) through 
(13) as paragraphs (12) through (17), respectively; 
and 
(9) by inserting after paragraph (7) the fol-
lowing new paragraph: 
‘‘(11) FEDERAL HOME LOAN BANK.—The term 
‘Federal home loan bank’ means a bank established 
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under the authority of the Federal Home Loan 
Bank Act.’’; 
(10) by redesignating paragraphs (2) through 
(7) as paragraphs (5) through (10), respectively; 
and 
(11) by inserting after paragraph (1) the fol-
lowing new paragraphs: 
‘‘(2) AGENCY.—The term ‘Agency’ means the 
Federal Housing Finance Agency. 
‘‘(3) AUTHORIZING STATUTES.—The term ‘au-
thorizing statutes’ means— 
‘‘(A) the Federal National Mortgage Asso-
ciation Charter Act; 
‘‘(B) the Federal Home Loan Mortgage 
Corporation Act; and 
‘‘(C) the Federal Home Loan Bank Act. 
‘‘(4) BOARD.—The term ‘Board’ means the 
Federal Housing Enterprise Board established under 
section 1313B.’’. 
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TITLE I—REFORM OF REGULA-
TION OF ENTERPRISES AND 
FEDERAL HOME LOAN BANKS 
Subtitle A—Improvement of Safety 
and Soundness 
SEC. 101. ESTABLISHMENT OF THE FEDERAL HOUSING FI-
NANCE AGENCY. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 (12 U.S.C. 4501 et seq.) is amend-
ed by striking sections 1311 and 1312 and inserting the 
following: 
‘‘SEC. 1311. ESTABLISHMENT OF THE FEDERAL HOUSING 
FINANCE AGENCY. 
‘‘(a) ESTABLISHMENT.—There is established the 
Federal Housing Finance Agency, which shall be an inde-
pendent agency of the Federal Government. 
‘‘(b) GENERAL SUPERVISORY AND REGULATORY AU-
THORITY.— 
‘‘(1) IN GENERAL.—Each regulated entity shall, 
to the extent provided in this title, be subject to the 
supervision and regulation of the Agency. 
‘‘(2) AUTHORITY OVER FANNIE MAE, FREDDIE 
MAC, AND FEDERAL HOME LOAN BANKS.—The Di-
rector of the Federal Housing Finance Agency shall 
have general supervisory and regulatory authority 
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over each regulated entity and shall exercise such 
general regulatory and supervisory authority, includ-
ing such duties and authorities set forth under sec-
tion 1313 of this Act, to ensure that the purposes 
of this Act, the authorizing statutes, and any other 
applicable law are carried out. The Director shall 
have the same supervisory and regulatory authority 
over any joint office of the Federal home loan banks, 
including the Office of Finance of the Federal Home 
Loan Banks, as the Director has over the individual 
Federal home loan banks. 
‘‘(c) SAVINGS PROVISION.—The authority of the Di-
rector to take actions under subtitles B and C shall not 
in any way limit the general supervisory and regulatory 
authority granted to the Director. 
‘‘SEC. 1312. DIRECTOR. 
‘‘(a) ESTABLISHMENT OF POSITION.—There is estab-
lished the position of the Director of the Federal Housing 
Finance Agency, who shall be the head of the Agency. 
‘‘(b) APPOINTMENT; TERM.— 
‘‘(1) APPOINTMENT.—The Director shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, from among individuals who 
are citizens of the United States, have a dem-
onstrated understanding of financial management or 
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