(A) in subsection (a)(1), by inserting
‘‘under this title’’ after ‘‘redressed’’; and
(B) in subsection (b), by inserting ‘‘under
this title’’ after ‘‘issued’’;
(5) in section 1319D (12 U.S.C. 4523), by in-
serting ‘‘to conduct duties relating to the regulation
and supervision of the enterprises’’ before the second
comma;
(6) in section 1319E (12 U.S.C. 4524)—
(A) by inserting ‘‘relating to regulation
and supervision of the enterprises’’ before ‘‘in
accordance with’’; and
(B) by inserting ‘‘in functions relating to
the regulation and supervision of the enter-
prises’’ before ‘‘shall be made available’’;
(7) in section 1319F (12 U.S.C. 4525), by
striking ‘‘Code’’ and all that follows through ‘‘agen-
cies’’ and inserting ‘‘Code, the Board, to the extent
only of its functions, activities, and employees in-
volved in the regulation and supervision of the enter-
prises, shall be considered an agency’’;
(8) in the section heading for section 1328, by
striking ‘‘SECRETARY’’ and inserting ‘‘BOARD OF
GOVERNORS’’;
(9) in section 1361 (12 U.S.C. 4611)—
(A) in subsection (e)—
(i) in paragraph (1), by striking the
first sentence and inserting the following
new sentence: ‘‘The Board shall establish
the risk-based capital test under this sec-
tion by regulation.’’; and
(ii) in paragraph (2), by striking ‘‘in-
dividual other than the Director to apply
the test in the same manner as the Direc-
tor’’ and inserting ‘‘individual (who is not
a member of the Board) to apply the test
in the same manner as the Board’’; and
(B) in subsection (f), by striking ‘‘the Sec-
retary, the Board of Governors of the Federal
Reserve System’’; and
(10) in section 1364(c) (12 U.S.C. 4614(c)), by
striking the last sentence;
(11) 
in 
section 
1367(a)(2) 
(12 
U.S.C.
4617(a)(2)), by striking ‘‘with the written concur-
rence of the Secretary of the Treasury,’’;
(12) in section 1369A (12 U.S.C. 4620)—
(A) in the subsection heading for sub-
section (c) by striking ‘‘DIRECTOR’’ and insert-
ing ‘‘BOARD’’; and
(B) in subsection (i), by inserting ‘‘having
duties relating to regulation and supervision of
the enterprises’’ before the period at the end;
(13) in the section heading for section 1369D
(12 U.S.C. 4623), by striking ‘‘DIRECTOR’’ and in-
serting ‘‘BOARD’’;
(14) in the subsection heading for subsection
(e) of section 1376 (12 U.S.C. 4636(e)), by striking
‘‘DIRECTOR’’ and inserting ‘‘BOARD’’;
(15) by striking section 1383;
(16) by striking ‘‘Director’’ each place such
term appears (except the second place such term ap-
pears in each of paragraphs (1) and (2) of section
1316(g), the third place such term appears in sec-
tion 1317(c), in section 1361(a)(3)(C), and the sec-
ond and third places such term appears in sub-
section (f) of section 1361) and inserting ‘‘Board’’;
(17) by striking ‘‘Director’s’’ each place such
term appears and inserting ‘‘Board’s’’;
(18) by striking ‘‘Office’’ each place such term
appears (except each place such term appears in sec-
tion 1315(b), in section 1316(g)(1), the second place
such term appears in section 1316(g)(2), in section
1317(c), 
in 
section 
1334(d)(3), 
in 
section
1361(a)(3)(C), and each place such term appears in
section 1361(f)) and inserting ‘‘Board’’;
(19) by striking ‘‘Committee on Banking, Fi-
nance and Urban Affairs’’ and inserting ‘‘Committee
on Financial Services’’ each place such term appears
in 
sections 
1319B, 
1319G(c), 
1328(a),
1336(b)(3)(C), 1337, and 1369(a)(3); and
(20) by striking ‘‘Secretary’’ and inserting
‘‘Board’’ each place such term appears in —
(A) part 1 of subtitle A;
(B) subpart A of part 2 of subtitle A (ex-
cept in sections 1324 and 1325);
(C) 
subtitle 
B 
(except 
in 
section
1361(d)(1)); and
(D) subtitle C.
(b) AMENDMENTS TO FANNIE MAE CHARTER ACT.—
The Federal National Mortgage Association Charter Act
(12 U.S.C. 1716 et seq.) is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ each
place such term appears, and inserting ‘‘Board of
Governors of the Federal Reserve System’’, in—
(A) 
section 
303(c)(2) 
(12 
U.S.C.
1718(c)(2));
(B) section 309(d)(3)(B) (12 U.S.C.
1723a(d)(3)(B)); and
(C) section 309(k)(1);
(2) in section 309 (12 U.S.C. 1723a)—
(A) in the second sentence of subsection
(d)(3)(B), by striking ‘‘Director’’ each place
such term appears and inserting ‘‘Board of
Governors’’;
(B) in subsection (k)—
(i) in paragraph (1), by striking ‘‘Di-
rector shall’’ and inserting ‘‘Board of Gov-
ernors shall’’; and
(ii) in paragraphs (2) and (3), by
striking ‘‘Director’’ each place such term
appears and inserting ‘‘Board of Governors
of the Federal Reserve System’’; and
(C) in subsection (l)(2), by striking ‘‘Di-
rector’’ and inserting ‘‘Board of Governors of
the Federal Reserve System’’; and
(3) in section 309(n)—
(A) in paragraph (1), by inserting ‘‘the
Board of Governors of the Federal Reserve Sys-
tem,’’ after ‘‘House of Representatives,’’; and
(B) in paragraph (3)(B), by striking ‘‘Sec-
retary’’ and inserting ‘‘Board of Governors of
the Federal Reserve System’’.
(c) AMENDMENTS TO FREDDIE MAC ACT.—The Fed-
eral Home Loan Mortgage Corporation Act is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ each
place such term appears, and inserting ‘‘Board of
Governors of the Federal Reserve System’’, in—
(A) 
section 
303(b)(2) 
(12 
U.S.C.
1452(b)(2));
(B) 
section 
303(h)(2) 
(12 
U.S.C.
1452(h)(2)); and
(C) 
section 
307(c)(1) 
(12 
U.S.C.
1456(c)(1));
(2) in the second sentence of section 303(h)(2)
(12 U.S.C. 1452(h)(2)), by striking ‘‘Director’’ each
place such term appears and inserting ‘‘Board of
Governors’’;
(3) in section 306(i) (12 U.S.C. 1455(i))—
(A) by striking ‘‘section 1316(c)’’ and in-
serting ‘‘section 306(c)’’; and
(B) by striking ‘‘section 106’’ and insert-
ing ‘‘section 1316’’; and
(4) in section 307 (12 U.S.C. 1456)—
(A) in subsection (c)(1), by striking ‘‘Di-
rector shall’’ and inserting ‘‘Board of Governors
shall’’;
(B) in subsection (c), in paragraphs (2)
and (3), by striking ‘‘Director’’ each place such
term appears and inserting ‘‘Board of Gov-
ernors of the Federal Reserve System’’;
(C) in subsection (d)(2), by striking ‘‘Di-
rector’’ and inserting ‘‘Board of Governors of
the Federal Reserve System’’; and
(D) in subsection (f)—
(i) in paragraph (1), by inserting ‘‘the
Board of Governors of the Federal Reserve
System,’’ after ‘‘House of Representa-
tives,’’;
(ii) in paragraph (3)(B), by striking
‘‘Secretary’’ and inserting ‘‘Board of Gov-
ernors of the Federal Reserve System’’.
(d) AMENDMENT
TO TITLE 18, UNITED STATES
CODE.—Section 1905 of title 18, United States Code, is
amended by striking ‘‘Office of Federal Housing Enter-
prise Oversight’’ and inserting ‘‘Board of Governors of the
Federal Reserve System in its capacity under title XIII
of the Housing and Community Development Act of
1992’’.
(e) AMENDMENTS TO FLOOD DISASTER PROTECTION
ACT OF 1973.—Section 102(f)(3)(A) of the Flood Dis-
aster Protection Act of 1973 (42 U.S.C. 4012a(f)(3)(A))
is amended—
(1) by striking ‘‘Director of the Office of Fed-
eral Housing Enterprise Oversight of the Depart-
ment of Housing and Urban Development’’ and in-
serting ‘‘Board of Governors of the Federal Reserve
System’’; and
(2) by striking ‘‘Director of such Office’’ and
inserting ‘‘Board’’.
(f) AMENDMENT TO DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT ACT.—Section 5 of the Depart-
ment of Housing and Urban Development Act (42 U.S.C.
3534) is amended by striking subsection (d).
(g) AMENDMENTS
TO TITLE 5, UNITED STATES
CODE.—
(1) EXECUTIVE SCHEDULE PAY RATE.—Section
5315 of title 5, United States Code, is amended by
striking the item relating to the Director of the Of-
fice of Federal Housing Enterprise Oversight, De-
partment of Housing and Urban Development.
(2) 
DEFINITION
OF
AGENCY.—Section
3132(a)(1)(D) of title 5, United States Code, is
amended by striking ‘‘the Office of Federal Housing
Enterprise Oversight of the Department of Housing
and Urban Development’’ and inserting ‘‘the Board
of Governors of the Federal Reserve System, to the
extent of the duties of such Board relating to regula-
tion and supervision of the Federal National Mort-
gage Association and the Federal Home Loan Mort-
gage Corporation’’.
SEC. 172. EFFECTIVE DATE.
Except as specifically provided otherwise in this title,
the amendments made by this title shall take effect on,
and shall apply beginning on, the expiration of the 1-year
period beginning on the date of the enactment of this Act.
TITLE II—TRANSFER OF FUNC-
TIONS, 
PERSONNEL, 
AND
PROPERTY
SEC. 201. ABOLISHMENT OF OFHEO.
(a) IN GENERAL.—Effective at the end of the 1-year
period beginning on the date of the enactment of this Act,
the Office of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development and the
positions of the Director and Deputy Director of such Of-
fice are abolished.
(b) DISPOSITION OF AFFAIRS.—During the 1-year
period beginning on the date of the enactment of this Act,
the Director of the Office of Federal Housing Enterprise
Oversight shall, solely for the purpose of winding up the
affairs of the Office of Federal Housing Enterprise
Oversight—
(1) manage the employees of such Office and
provide for the payment of the compensation and
benefits of any such employee which accrue before
the effective date of the transfer of such employee
pursuant to section 203; and
(2) may take any other action necessary for the
purpose of winding up the affairs of the Office.
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—
The amendments made by title I and the abolishment of
the Office of Federal Housing Enterprise Oversight under
subsection (a) of this section may not be construed to af-
fect the status of any employee of such Office as employ-
ees of an agency of the United States for purposes of any
other provision of law before the effective date of the
transfer of any such employee pursuant to section 203.
(d) USE OF PROPERTY AND SERVICES.—
(1) PROPERTY.—The Chairman of the Board of
Governors of the Federal Reserve System may use
the property of the Office of Federal Housing Enter-
prise Oversight to perform functions which have
been transferred to the Board of Governors of the
Federal Reserve System for such time as is reason-
able to facilitate the orderly transfer of functions
transferred pursuant to any other provision of this
Act or any amendment made by this Act to any
other provision of law.
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States,
and any successor to any such agency, department,
or instrumentality, which was providing supporting
services to the Office of Federal Housing Enterprise
Oversight before the expiration of the period under
subsection (a) in connection with functions that are
transferred to the Board of Governors of the Fed-
eral Reserve System shall—
(A) continue to provide such services, on a
reimbursable basis, until the transfer of such
functions is complete; and
(B) consult with any such agency to co-
ordinate and facilitate a prompt and reasonable
transition.
(e) SAVINGS PROVISIONS.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not af-
fect the validity of any right, duty, or obligation of
the United States, the Director of the Office of Fed-
eral Housing Enterprise Oversight, or any other per-
son, which—
(A) arises under or pursuant to the title
XIII of the Housing and Community Develop-
ment Act of 1992, the Federal National Mort-
gage Association Charter Act, the Federal
Home Loan Mortgage Corporation Act, or any
other provision of law applicable with respect to
such Office; and
(B) existed on the day before the abolish-
ment under subsection (a) of this section.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Di-
rector of the Office of Federal Housing Enterprise
Oversight shall abate by reason of the enactment of
this Act, except that the Board of Governors of the
Federal Reserve System shall be substituted for the
Director as a party to any such action or pro-
ceeding.
SEC. 202. CONTINUATION AND COORDINATION OF CERTAIN
REGULATIONS.
All regulations, orders, determinations, and resolu-
tions that—
(1) were issued, made, prescribed, or allowed to
become effective by—
(A) the Office of Federal Housing Enter-
prise Oversight;
(B) the Secretary of Housing and Urban
Development and that relate to the Secretary’s
authority under—
(i) title XIII of the Housing and Com-
munity Development Act of 1992;
(ii) under the Federal National Mort-
gage Association Charter Act, with respect
to the Federal National Mortgage Associa-
tion; or
(iii) the Federal Home Loan Mort-
gage Corporation Act; or
(C) a court of competent jurisdiction and
that relate to functions transferred by this Act;
and
(2) are in effect on the date of the abolishment
under section 201(a) of this Act,
shall remain in effect according to the terms of such regu-
lations, orders, determinations, and resolutions and shall
be enforceable by or against the Board of Governors of
the Federal Reserve System until modified, terminated,
set aside, or superseded in accordance with applicable law
by such Board, any court of competent jurisdiction, or op-
eration of law.
SEC. 203. TRANSFER AND RIGHTS OF EMPLOYEES OF
OFHEO.
(a) TRANSFER.—Each employee of the Office of Fed-
eral Housing Enterprise Oversight shall be transferred to
the Board of Governors of the Federal Reserve System
for employment no later than the date of the abolishment
under section 201(a) of this Act and such transfer shall
be deemed a transfer of function for the purpose of section
3503 of title 5, United States Code.
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position
with the same status, tenure, grade, and pay as that held
on the day immediately preceding the transfer. Each such
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation
for 18 months after the date of transfer, except for cause
or, if the employee is a temporary employee, separated in
accordance with the terms of the appointment.
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND
SENIOR EXECUTIVE SERVICE EMPLOYEES.—
(1) IN GENERAL.—In the case of employees oc-
cupying positions in the excepted service or the Sen-
ior Executive Service, any appointment authority es-
tablished pursuant to law or regulations of the Of-
fice of Personnel Management for filling such posi-
tions shall be transferred, subject to paragraph (2).
(2) DECLINE
OF
TRANSFER.—The Board of
Governors of the Federal Reserve System may de-
cline a transfer of authority under paragraph (1)
(and the employees appointed pursuant thereto) to
the extent that such authority relates to positions
excepted from the competitive service because of
their confidential, policy-making, policy-determining,
or policy-advocating character, and noncareer posi-
tions in the Senior Executive Service (within the
meaning of section 3132(a)(7) of title 5, United
States Code).
(d) REORGANIZATION.—If the Board of Governors of
the Federal Reserve System determines, after the end of
the 1-year period beginning on the date the transfer of
functions to the Board is completed, that a reorganization
of the combined work force is required, that reorganization
shall be deemed a major reorganization for purposes of
affording affected employees retirement under section
8336(d)(2) or 8414(b)(1)(B) of title 5, United States
Code.
(e) EMPLOYEE BENEFIT PROGRAMS.—Any employee
accepting employment with the Board of Governors of the
Federal Reserve System as a result of such transfer may
retain for 18 months after the date such transfer occurs
membership in any employee benefit program of the Board
of Governors of the Federal Reserve System or the Office
of Federal Housing Enterprise Oversight, as applicable,
including insurance, to which such employee belongs on
the date of the abolishment under section 201(a) if—
(1) the employee does not elect to give up the
benefit or membership in the program; and
(2) the benefit or program is continued by the
Board of Governors of the Federal Reserve System.
The difference in the costs between the benefits which
would have been provided by such agency and those pro-
vided by this section shall be paid by the Board of Gov-
ernors of the Federal Reserve System. If any employee
elects to give up membership in a health insurance pro-
gram or the health insurance program is not continued
by such Board, the employee shall be permitted to select
an alternate Federal health insurance program within 30
days of such election or notice, without regard to any other
regularly scheduled open season.
(f) SENIOR EXECUTIVE SERVICE EMPLOYEES.—A
transferring employee in the Senior Executive Service
shall be placed in a comparable position at the agency or
entity to which such employee is transferred.