spect to implement a plan accepted by the Director, 
the following shall apply: 
‘‘(A) REQUIRED
CORRECTION
OF
DEFI-
CIENCY.—The Director shall, by order, require 
the regulated entity to correct the deficiency. 
‘‘(B) OTHER
AUTHORITY.—The Director 
may, by order, take one or more of the following 
actions until the deficiency is corrected: 
‘‘(i) Prohibit the regulated entity from 
permitting its average total assets (as such 
term is defined in section 1316(b)) during 
any calendar quarter to exceed its average 
total assets during the preceding calendar 
quarter, or restrict the rate at which the av-
erage total assets of the entity may increase 
from one calendar quarter to another. 
‘‘(ii) Require the regulated entity— 
‘‘(I) in the case of an enterprise, 
to increase its ratio of core capital to 
assets. 
‘‘(II) in the case of a Federal 
home loan bank, to increase its ratio of 
total capital (as such term is defined 
in section 6(a)(5) of the Federal Home
Loan Bank Act (12 U.S.C. 1426(a)(5)) 
to assets. 
‘‘(iii) Require the regulated entity to 
take any other action that the Director de-
termines will better carry out the purposes 
of this section than any of the actions de-
scribed in this subparagraph 
‘‘(3) MANDATORY RESTRICTIONS.—In complying 
with paragraph (2), the Director shall take one or 
more of the actions described in clauses (i) through 
(iii) of paragraph (2)(B) if— 
‘‘(A) the Director determines that the regu-
lated entity fails to meet any standard pre-
scribed under subsection (a); 
‘‘(B) the regulated entity has not corrected 
the deficiency; and 
‘‘(C) during the 18-month period before the 
date on which the regulated entity first failed to 
meet the standard, the entity underwent extraor-
dinary growth, as defined by the Director. 
‘‘(c) OTHER ENFORCEMENT AUTHORITY
NOT AF-
FECTED.—The authority of the Director under this section 
is in addition to any other authority of the Director.’’. 
(b) INDEPENDENCE IN CONGRESSIONAL TESTIMONY 
AND RECOMMENDATIONS.—Section 111 of Public Law 93–
495 (12 U.S.C. 250) is amended by striking ‘‘the Federal 
Housing Finance Board’’ and inserting ‘‘the Director of the 
Federal Housing Finance Agency’’. 
SEC. 103. HOUSING FINANCE OVERSIGHT BOARD. 
(a) IN GENERAL.—Title XIII of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4501 et 
seq.) is amended by inserting after section 1313A, as added 
by section 102 of this Act, the following new section: 
‘‘SEC. 1313B. HOUSING FINANCE OVERSIGHT BOARD. 
‘‘(a) IN GENERAL.—There is established the Housing 
Finance Oversight Board. 
‘‘(b) DUTIES.— 
‘‘(1) IN GENERAL.—The Board shall advise the 
Director with respect to overall strategies and policies 
in carrying out the duties of the Director under this 
title, at the request of the Director and at the initia-
tive of the Board, and shall carry out such functions 
as otherwise provided by law. 
‘‘(2) LIMITATION.—The Director may not dele-
gate to the Board any of the functions, powers, or du-
ties of the Director. 
‘‘(c) COMPOSITION.—The Board shall be comprised of 
5 members, as follows: 
‘‘(1) One member shall be the Director, who shall 
serve as the Chairperson of the Board.
‘‘(2) One member shall be the Secretary of the 
Treasury or the designee of the Secretary. 
‘‘(3) One member shall be the Secretary of Hous-
ing and Urban Development or the designee of the 
Secretary. 
‘‘(4) Two members shall be appointed by the 
President, by and with the advice and consent of the 
Senate, who shall include— 
‘‘(A) one individual who has extensive expe-
rience and expertise in the capital markets (in-
cluding debt markets), the secondary mortgage 
market, and mortgage-backed securities; and 
‘‘(B) one individual who has extensive expe-
rience and expertise in mortgage finance (includ-
ing single family and multifamily housing mort-
gage finance), development of affordable housing, 
and economic development and revitalization. 
‘‘(d) TERMS AND VACANCIES.— 
‘‘(1) TERMS.—Each member of the Board pursu-
ant to paragraph (4) shall be appointed for a term 
of 3 years, and may be removed by the President only 
for cause. 
‘‘(2) VACANCIES.—A member of the Board ap-
pointed to fill a vacancy occurring before the expira-
tion of the term for which the member’s predecessor
was appointed shall be appointed only for the re-
mainder of that term. A member of the Board may 
serve after the expiration of the member’s term until 
a successor has been appointed. 
‘‘(e) PROHIBITION OF ADDITIONAL COMPENSATION.— 
Notwithstanding any other provision of law, members of 
Board pursuant to paragraphs (1), (2), and (3) shall not 
receive additional compensation by reason of service on the 
Board. 
‘‘(f) LIMITATIONS.—Each member of the Board may 
not— 
‘‘(1) have any direct or indirect financial inter-
est in any regulated entity or regulated entity-affili-
ated party; or 
‘‘(2) hold any office, position, or employment in 
any regulated entity or regulated entity-affiliated 
party. 
‘‘(g) FULL-TIME MEMBERS AND STAFF.— 
‘‘(1) FULL-TIME MEMBERS.—The members of the 
Board pursuant to subsection (c)(4) shall serve on a 
full-time basis. 
‘‘(2) STAFF.—The staff of the Board shall be ap-
pointed subject to the provisions of title 5, United 
States Code, governing appointments in the competi-
tive service, and shall be paid in accordance with the
provisions of chapter 51 and subchapter III of chap-
ter 53 of that title relating to classification and Gen-
eral Schedule pay rates, except that each member of 
the Board pursuant to paragraph (4) may appoint 
one staff member without regard to the such provi-
sions governing appointments in the competitive serv-
ice and such staff members may be paid by the Board 
without regard to the such provisions relating to clas-
sification and General Schedule pay rates. 
‘‘(h) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet upon 
notice by the Director, but in no event shall the Board 
meet less frequently than once every 3 months. 
‘‘(2) SPECIAL MEETINGS.—Any member of the 
Board may, upon giving written notice to the Direc-
tor, require a special meeting of the Board, which 
shall be convened by the Director within 30 days after 
such notice. 
‘‘(i) TESTIMONY.—On an annual basis, the Board 
shall testify before Congress regarding— 
‘‘(1) the safety and soundness of the regulated en-
tities; 
‘‘(2) any material deficiencies in the conduct of 
the operations of the regulated entities;