(A) create and supply, alone or in coopera-
tion with public or private entities or persons, 
any product or service consistent with its cor-
porate purposes; and 
(B) assess fees and charges for such prod-
ucts, information, and services in amounts, as 
determined by the FHA, that— 
(i) do not exceed their value in the 
market; 
(ii) permit the FHA to recover its 
fully allocated long-term costs; and 
(iii) permit the FHA to maintain the 
level of capital determined by the FHA to 
be necessary and sufficient to carry out the 
public purposes of the FHA and as re-
quired under subtitle C; 
(8) may create distinct insurance funds or other 
devices to segregate or permit limitations on liability 
for business activities or accounts; 
(9) may qualify any person or entity to engage 
in business with the FHA and may enforce and im-
pose penalties for the breach of any duties, obliga-
tions, and other commitments made by such persons 
or entities; 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
(10) shall take actions necessary to administer 
its business in a nondiscriminatory manner; 
(11) may use the services or obtain the goods 
of any Federal agency, including the Department of 
Housing and Urban Development, under working or 
cooperation agreements or contracts with such agen-
cies and make or receive payment for the cost of 
such activities; 
(12) shall have the power, in its corporate 
name, to sue and be sued, and to complain and de-
fend, in any court of competent jurisdiction, State or 
Federal, but no attachment, garnishment, injunc-
tion, or other similar process, mesne or final, shall 
be issued against the property of the FHA or 
against the FHA with respect to its property, and 
the FHA shall not be liable for interest prior to 
judgment, for punitive or exemplary damages, for 
penalties, or for claims based upon unjust enrich-
ment, quasi-contract, or contracts implied-in-law, 
nor shall the FHA be subject to trial by jury; 
(13) notwithstanding any other provision of 
law— 
(A) shall be an agency of the United 
States Government and the officers and employ-
ees of the FHA shall be officers and employees 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
of the United States Government for purposes 
of part IV of title 28, United States Code; 
(B) shall have all civil actions to which the 
FHA is a party deemed to arise under the laws 
of the United States; and 
(C) may, at any time before trial and with-
out bond or security, remove any civil or crimi-
nal action or proceeding in a State court to 
which the FHA is a party to the United States 
district court for the District of Columbia or to 
the United States district court with jurisdic-
tion over the place where the civil action or pro-
ceeding is pending, by following any procedure 
for removal of actions in effect at the time of 
such removal; 
(14) may— 
(A) accept and use voluntary and uncom-
pensated services and accept, hold, administer, 
and use gifts and bequests of property, both 
real and personal, for the purpose of aiding or 
facilitating the work of the FHA, and 
(B) hold gifts and bequests of money and 
the proceeds from sales of other property re-
ceived as gifts or bequests in a separate ac-
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
count, and such amounts shall be disbursed as 
provided by the FHA; 
except that property accepted pursuant to this para-
graph, and the proceeds thereof, shall be used as 
nearly as possible in accordance with the terms of 
the gift or bequest and, for the purpose of Federal 
income, estate, and gift taxes, property accepted 
under this paragraph shall be considered as a gift or 
bequest to or for the use of the United States; 
(15) shall have any transaction in which it par-
ticipates be exempt from the terms of any State or 
other law or prohibition against payment of usurious 
interest; 
(16) may act as a fiduciary in connection with 
any of its undertakings; 
(17) may foreclose any single family mortgages 
held by the FHA pursuant to the same procedures 
and authority applicable to the Secretary under the 
Single Family Mortgage Foreclosure Act of 1994; 
(18) may foreclose any multifamily housing 
mortgages held by the FHA pursuant to the same 
procedures and authority applicable to the Secretary 
under the Multifamily Mortgage Foreclosure Act of 
1981; 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
(19) shall have the priority of the United States 
with respect to the payment of debts out of bank-
rupt, insolvent, and decedents’ estates; 
(20) may invest in systems, technology, or other 
capital resources, to enhance its ability to carry out 
the purposes of this title; and 
(21) shall have and exercise all powers nec-
essary or appropriate to effect any of the purposes 
of this title, including the power to carry out any au-
thority delegated to the FHA by the Secretary. 
SEC. 214. BOARD OF DIRECTORS. 
(a) IN GENERAL.—The powers of the FHA shall be 
vested in the Board of Directors of the FHA. 
(b) MEMBERS AND APPOINTMENT.—The Board of 
Directors shall consist of 9 individuals appointed by the 
President, who shall include the following individuals: 
(1) The Secretary of Housing and Urban Devel-
opment. 
(2) The Secretary of Agriculture. 
(3) Not less than 5 individuals who have exper-
tise in mortgage finance. 
(4) Not less than 2 individuals who have exper-
tise in affordable housing serving low- and mod-
erate-income populations. 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
(c) CHAIRPERSON.—The Secretary of Housing and 
Urban Development shall serve as the chairperson of the 
Board. 
(d) TERMS.— 
(1) IN GENERAL.—Each member of the Board 
appointed under paragraph (3) or (4) of subsection 
(b) shall be appointed for a term of 3 years, except 
as provided in paragraphs (2) and (3). 
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment, 
of the members first appointed to the Board pursu-
ant to paragraphs (3) and (4) of subsection (b)— 
(A) 3 shall be appointed for terms of 1 
year; and 
(B) 4 shall be appointed for terms of 2 
years. 
(3) VACANCIES.—Any member appointed to fill 
a vacancy on the Board 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 may serve after the 
expiration of that member’s term until a successor 
has taken office. A vacancy on the Board shall be 
filled in the manner in which the original appoint-
ment was made. 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
(e) MEETINGS AND QUORUM.—The Board shall meet 
at any time pursuant to the call of the Chairperson or 
a majority of its members and as provided by the bylaws 
of the FHA, but not less than quarterly. A majority of 
the members of the Board shall constitute a quorum. 
(f) POWERS.—The Board shall be responsible for the 
general management of the FHA and shall have the same 
authority, privileges, and responsibilities as the board of 
directors of a private corporation incorporated under the 
District of Columbia Business Corporation Act. 
(g) DUTIES.—In performing its duties, the Board 
shall— 
(1) obtain guidance from participants in the 
mortgage markets served by the FHA; 
(2) assess the housing and mortgage insurance 
needs of consumers and providers of single family 
and multifamily housing and communities, and the 
mortgage insurance needs of providers of residential 
health care facilities; 
(3) obtain information concerning housing fi-
nance markets in order to better assess how the 
FHA can complement the roles of public and private 
participants in such markets; and 
(4) assist the Secretary of Housing and Urban 
Development and the Secretary of Agriculture in co-
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
ordinating the roles of Federal housing, banking, 
and credit agencies generally, and particularly in the 
delivery of housing credit enhancement to families, 
communities, and hard-to-serve markets. 
(h) COMPENSATION.—Members of the Board shall 
serve on a part-time basis and shall serve without pay. 
(i) TRAVEL EXPENSES.—Each member shall receive 
travel expenses, including per diem in lieu of subsistence, 
in accordance with sections 5702 and 5703 of title 5, 
United States Code. 
SEC. 215. OFFICERS AND PERSONNEL. 
(a) APPOINTMENT OF OFFICERS.—The Board shall 
appoint a president and vice president of the FHA, and, 
except as provided in subsections (b) and (c), such other 
officers as are provided for in the bylaws of the FHA. 
(b) CHIEF RISK OFFICER.—There shall be in the 
FHA a Chief Risk Officer, who— 
(1) shall be appointed by the Board of Direc-
tors of the FHA; 
(2) shall be selected from among individuals 
who possess demonstrated ability in the general 
management of, and knowledge of and extensive 
practical experience in, risk evaluation practices in 
large governmental or business entities; 
(3) shall be— 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
(A) responsible for all matters relating to 
managing and mitigating risk to the mortgage 
insurance programs of the FHA and ensuring 
the performance of mortgages insured by the 
FHA; and 
(B) responsible for all matters relating to 
managing and mitigating risk to the housing 
loans made, insured, or guaranteed under title 
V of the Housing Act of 1949 (42 U.S.C. 1471 
et seq.) and ensuring the performance of such 
housing loans; 
(4) shall not be subject to the review or ap-
proval of the Board of Directors of the FHA or the 
Secretary of Agriculture with respect to the exercise 
of the responsibilities under subparagraph (A) or 
(B), respectively, of paragraph (3); and 
(5) shall not be required to obtain the prior ap-
proval, comment, or review of any officer or agency 
of the United States before submitting to the Con-
gress, or any committee or subcommittee thereof, 
any reports, recommendations, testimony, or com-
ments if such submissions include a statement indi-
cating that the views expressed therein are those of 
the Chief Risk Officer of the FHA and do not nec-
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
essarily represent the views of the Board of Direc-
tors of the FHA or the Secretary of Agriculture. 
(c) CHIEF TECHNOLOGY OFFICER.—There shall be 
in the FHA a Chief Technology Officer, who— 
(1) shall be appointed by the Board of Direc-
tors of the FHA; 
(2) shall be selected from among individuals 
who possess demonstrated ability in the general 
management of, and knowledge of and extensive 
practical experience in, information technology man-
agement practices in, large governmental or business 
entities; 
(3) shall be— 
(A) responsible for all matters relating to 
information technology management relating to 
the mortgage insurance programs of the FHA; 
and 
(B) responsible for all matters relating to 
information technology management relating to 
the programs for making, insuring, and guaran-
teeing housing loans under title V of the Hous-
ing Act of 1949 (42 U.S.C. 1471 et seq.); 
including analysis and assessment of the information 
technology infrastructures, information technology 
strategy, and use of information technology, ensur-
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
ing the security and privacy of information tech-
nology infrastructure and networks, and promoting 
technological innovation; 
(4) shall not be subject to the review or ap-
proval of the Board of Directors of the FHA or the 
Secretary of Agriculture with respect to the exercise 
of the responsibilities under subparagraph (A) or 
(B), respectively of paragraph (3); and 
(5) shall not be required to obtain the prior ap-
proval, comment, or review of any officer or agency 
of the United States before submitting to the Con-
gress, or any committee or subcommittee thereof, 
any reports, recommendations, testimony, or com-
ments if such submissions include a statement indi-
cating that the views expressed therein are those of 
the Chief Technology Officer of the FHA and do not 
necessarily represent the views of the Board of Di-
rectors of the FHA or the Secretary of Agriculture. 
(d) APPOINTMENT OF EMPLOYEES.—Subject to sub-
title D, the Board shall appoint such other employees of 
the FHA as the Board considers necessary for the trans-
action of the FHA’s business. 
(e) COMPENSATION, DUTIES, AND REMOVAL.— 
(1) IN GENERAL.—The Board shall fix the com-
pensation of all officers and employees of the FHA 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
and define their duties. Officers and employees shall 
be appointed, promoted, assigned, and removed on 
the basis of qualifications, and any such actions 
taken shall be consistent with the principles of fair-
ness, nondiscrimination, and due process. 
(2) CONSIDERATIONS
IN
FIXING
COMPENSA-
TION.—In fixing and directing compensation for offi-
cers and employees of the FHA, the Board shall 
consult and maintain comparability with the com-
pensation provided by the Government National 
Mortgage Association, the Federal Housing Finance 
Agency, the Comptroller of Currency, the Board of 
Governors of the Federal Reserve System, and the 
Federal Deposit Insurance Corporation to officers 
and employees of such entities. 
(f) APPLICABILITY
OF CERTAIN CIVIL SERVICE 
LAWS.—The officers and employees of the FHA shall be 
appointed without regard to the provisions of title 5, 
United States Code, governing appointments in the com-
petitive service, and may be paid without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 
of that title relating to classification and General Schedule 
pay rates. 
(g) USE OF FEDERAL AGENCIES.—In carrying out 
its purposes, the FHA may use information, services, 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
staff, and facilities of any executive agency, independent 
agency, or department (including the Department of 
Housing and Urban Development), with the consent of the 
agency or department, and shall reimburse the agency or 
department for the cost of such information, services, 
staff, and facilities. 
(h) INDEMNIFICATION.—The FHA may provide for 
the indemnification of any officer, employee, contractor, 
or agent of the FHA on such terms as the FHA deter-
mines proper, except that, to the extent that the FHA self- 
insures for any indemnification— 
(1) the aggregate maximum amount of indem-
nification outstanding at any time shall not exceed 
5 percent of the amount of capital required under 
section 256 to be maintained by the Mutual Mort-
gage Insurance Fund; and 
(2) not more than $1,000,000 may be paid as 
an indemnity for any single event. 
(i) AMENDMENTS TO HOUSING ACT OF 1949.—Sec-
tion 501 of the Housing Act of 1949 (42 U.S.C. 1471) 
is amended by adding at the end the following new sub-
sections: 
‘‘(k) AUTHORITY
OF CHIEF RISK OFFICER
OF 
FHA.—The Chief Risk Officer of the FHA appointed pur-
suant to section 215(b) of the FHA Reform and Mod-
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
ernization Act of 2013 shall be solely responsible for all 
matters relating to evaluating, managing, and mitigating 
risk to the programs under this title for making, insuring, 
and guaranteeing housing loans and ensuring the perform-
ance of such housing loans, and such authority shall not 
be subject to the review or approval of the Secretary. 
‘‘(l) AUTHORITY OF CHIEF TECHNOLOGY OFFICER 
OF FHA.—The Chief Technology Officer of the FHA ap-
pointed pursuant to section 215(c) of the FHA Reform 
and Modernization Act of 2013 shall be solely responsible 
for all matters relating to information technology manage-
ment relating to the programs under this title for making, 
insuring, and guaranteeing housing loans, and such au-
thority shall not be subject to the review or approval of 
the Secretary.’’. 
SEC. 216. FINANCIAL, UNDERWRITING, AND OPERATIONS 
SYSTEMS. 
(a) IN GENERAL.—The FHA shall develop and main-
tain such financial, underwriting, and operations systems 
as may be necessary to carry out the responsibilities of 
the FHA. Such systems shall be designed and developed 
in a manner so that such systems shall also be used for 
the financial, underwriting, and operations systems, re-
spectively, of the programs under title V of the Housing 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
Act of 1949 for making, guaranteeing, and insuring rural 
housing loan programs. 
(b) USE BY RURAL HOUSING SERVICE PROGRAMS.— 
(1) AVAILABILITY.—All financial, underwriting, 
and operations systems of the FHA shall be avail-
able to the Secretary of Agriculture to the extent 
necessary to ensure compliance with section 501(m) 
of the Housing Act of 1949 (42 U.S.C. 1471(l)). 
(2) USE.—Section 501 of the Housing Act of 
1949 (42 U.S.C. 1471), as amended by the pre-
ceding provisions of this title, is further amended by 
adding at the end the following new subsection: 
‘‘(m) USE OF FHA SYSTEMS.—The Secretary, the 
Chief Risk Officer of the FHA, and the Chief Technology 
Officer of the FHA shall utilize the financial, under-
writing, and operations systems of the FHA in carrying 
out all financial, underwriting, and operations functions 
with respect to the programs under this title for making, 
insuring, or guaranteeing housing loans.’’. 
SEC. 217. PROCUREMENT. 
(a) IN GENERAL.—The FHA shall establish an eco-
nomical and results-oriented system for the procurement, 
supply, and disposition by the FHA of personal property 
and services, which shall include performance measures 
and standards for determining the extent to which the 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
FHA’s procurement of property and services satisfies the 
objective for which the procurement was undertaken. The 
system shall be consistent with the principles of impar-
tiality and competitiveness. 
(b) EXEMPTION FROM FEDERAL PROPERTY AND AD-
MINISTRATIVE SERVICE ACT REQUIREMENTS.—Section 
113(e) of title 40, United States Code, is amended— 
(1) in paragraph (19), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (20), by striking the period at 
the end and inserting ‘‘; or’’ ; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(21) The Federal Housing Administration; 
and’’. 
(c) EXEMPTION FROM PROCUREMENT PROTEST SYS-
TEM.—Subchapter V of chapter 35 of title 31, United 
States Code, relating to the procurement protest system, 
shall not apply to the FHA. 
SEC. 218. APPLICABILITY OF LAWS. 
(a) EXEMPTION
FROM
NOTICE
AND
COMMENT 
RULEMAKING.—Any matter relating to credit enhance-
ment or other business activities of the FHA authorized 
under this title shall be considered a matter relating to 
agency management or personnel or to public property, 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS
(i) MAXIMUM
LIMIT.—The lesser of 
the following amounts: 
(I) In the case of— 
(aa) a 1-family residence, 
115 percent of the median 1-fam-
ily house price in the area in 
which such residence is located, 
as determined by the FHA; and 
(bb) in the case of a 2-, 3- 
, or 4-family residence, the per-
centage of such median price 
that bears the same ratio to such 
median 
price 
as 
the 
dollar 
amount 
limitation 
determined 
under the sixth sentence of sec-
tion 305(a)(2) of the Federal 
Home Loan Mortgage Corpora-
tion Act (12 U.S.C. 1454(a)(2)) 
for a 2-, 3-, or 4-family resi-
dence, respectively, bears to the 
dollar amount limitation deter-
mined under such section for a 1- 
family residence; or 
(II) 150 percent of the dollar 
amount limitation determined under 
VerDate Mar 15 2010 
21:05 Jul 24, 2013
Jkt 029200
PO 00000
Frm 00062
Fmt 6652
Sfmt 6201
E:\BILLS\H2767.IH
H2767
emcdonald on DSK67QTVN1PROD with BILLS