I 
110TH CONGRESS 
2D SESSION 
H. R. 6164 
To establish a risk-reduction and accountability pilot program for the housing- 
related government-sponsored enterprises. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 22, 2008 
Mr. WATT (for himself, Mrs. MYRICK, and Mr. EMANUEL) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To establish a risk-reduction and accountability pilot pro-
gram for the housing-related government-sponsored en-
terprises. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Housing En-
terprises Transparency and Accountability Act of 2008’’. 
SEC. 2. PILOT PROGRAM TO ENCOURAGE RISK REDUCTION 
AND ACCOUNTABILITY. 
(a) ESTABLISHMENT.—The Federal Housing Fi-
nance Board shall require each Federal Home Loan Bank, 
and the Director of the Office of Federal Housing Enter-
VerDate Aug 31 2005 
03:56 May 28, 2008
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6164.IH
H6164
smartinez on PROD1PC64 with BILLS
prise Oversight of the Department of Housing and Urban 
Development shall require the Federal National Mortgage 
Association and the Federal Home Loan Mortgage Cor-
poration, to carry out a pilot program to reduce risk 
through the use of electronic platforms to conduct trans-
actions in interest rate swaps and forward rate agree-
ments. The pilot program required under this section shall 
commence not later than the expiration of the 180-day pe-
riod beginning on the date of the enactment of this Act. 
(b) REQUIREMENTS.—In carrying out the pilot pro-
gram required under subsection (a), the Federal Housing 
Finance Board and the Director of the Office of Federal 
Housing Enterprise Oversight shall require that— 
(1) the Federal Home Loan Banks, and the 
Federal National Mortgage Association and Federal 
Home Loan Mortgage Corporation, respectively, con-
duct at least 5 percent of their transactions in inter-
est rate swaps and forward rate agreements for the 
calendar years 2009 and 2010 on an electronic plat-
form or platforms; and 
(2) in selecting the electronic platform or plat-
forms, the Federal Home Loan Banks, and the Fed-
eral National Mortgage Association and Federal 
Home Loan Mortgage Corporation shall consider the 
VerDate Aug 31 2005 
03:56 May 28, 2008
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6164.IH
H6164
smartinez on PROD1PC64 with BILLS
extent to which such electronic platform or plat-
forms— 
(A) keep accurate records and provide an 
accurate audit trail for transactions executed on 
each such platform; 
(B) enable users to identify and net their 
mutually offsetting short term interest rate 
risks; 
(C) are owned and located in the United 
States and utilize technologies patented in the 
United States; and 
(D) are not an organized exchange, board 
of trade, or trading facility as those terms are 
defined in the Commodity Exchange Act (7 
U.S.C. 1 et seq.). 
(c) STUDY AND REPORT.—Not later than March 1, 
2011, the Federal Housing Finance Board and the Direc-
tor of the Office of Federal Housing Enterprise Oversight 
shall each conduct a study of the pilot program required 
under subsection (a) and shall submit a report regarding 
the results and conclusions of the study to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate. 
Æ 
VerDate Aug 31 2005 
03:56 May 28, 2008
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6301
E:\BILLS\H6164.IH
H6164
smartinez on PROD1PC64 with BILLS