To establish the Fannie Mae and Freddie Mac Investigative Commission to investigate the policies and practices engaged in by officers and directors at Fannie Mae and Freddie Mac responsible for making the decisions that led to the enterprises' financial instability and the subsequent Federal conservatorship of such enterprises.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fannie Mae and Freddie Mac 
Investigative Commission Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) The term ``Commission'' means the Fannie Mae and 
        Freddie Mac Investigative Commission established under section 
        3.
            (2) The term ``Fannie Mae'' means the Federal National 
        Mortgage Corporation.
            (3) The term ``Freddie Mac'' means the Federal Home Loan 
        Mortgage Corporation.

SEC. 3. ESTABLISHMENT.

    There is established a commission to be known as the ``Fannie Mae 
and Freddie Mac Investigative Commission''.

SEC. 4. DUTY OF THE COMMISSION.

    (a) In General.--The Commission shall investigate, determine, and 
make recommendations to Congress with respect to the policies, 
practices, and board decisions of Fannie Mae and Freddie Mac subsequent 
to the actions of the Resolution Trust Corporation during the late 
1980s and from the 1990s through the present that led to the 
enterprises' financial instability and the subsequent Federal 
conservatorship of such enterprises.
    (b) Specific Topics.--In carrying out its duty under subsection 
(a), the Commission shall address and analyze, by year, beginning in 
1990 and through the present, the following:
            (1) The appropriate role of Fannie Mae and Freddie Mac in 
        expanding homeownership and the appropriate role in helping the 
        housing market recover nationwide.
            (2) Fannie Mae and Freddie Mac's involvement, if any, in 
        the development of faulty risk standards and accounting 
        practices and the creation and proliferation of the securitized 
        mortgage instrument, and how such instrument affected the 
        solvency of such enterprises.
            (3) The role of the boards of directors of Fannie Mae and 
        Freddie Mac in developing and voting for the investment, 
        accounting, and contracting policies of such enterprises, 
        particularly as they relate to risk assessments, subprime 
        mortgages, and the international securitization of mortgages.
            (4) Any board members, working committees, or executive 
        officers responsible for making the decisions to adapt or 
        change risk assessments or grow Fannie Mae and Freddie Mac's 
        portfolios of subprime mortgage loans, a summary of actual 
        board votes on the same, and the process that led to such 
        decisions.
            (5) The decisions of the boards or executive officers of 
        Fannie Mae and Freddie Mac that contributed or may have 
        contributed to the overvaluation of risky mortgage investments 
        in the stock market and, later, to the growth of the subprime 
        mortgage industry.
            (6) The annual compensation, including all forms of 
        compensation, stock options, and other financial benefits 
        accrued to each of Fannie Mae and Freddie Mac's executive 
        officers and members of the boards of directors.
            (7) Such other matters that the Congress may place before 
        the Commission.

SEC. 5. MEMBERSHIP.

    (a) Number and Appointment.--
            (1) In general.--The Commission shall be composed of 8 
        members, appointed as follows:
                    (A) Two members appointed by the Speaker of the 
                House of Representatives.
                    (B) Two members appointed by the minority leader of 
                the House of Representatives.
                    (C) Two members appointed by the majority leader of 
                the Senate.
                    (D) Two members appointed by the minority leader of 
                the Senate.
            (2) Qualifications.--Members of the Commission shall be 
        individuals who are of recognized standing and distinction in 
        the areas of banking, securities and finance regulation, 
        consumer advocacy and fair housing programs, and the mortgage 
        industry.
            (3) Conflict of interest.--Members of the Commission shall 
        not have a conflict of interest that is relevant to any matter 
        the Commission is required to investigate under section 4.
            (4) Deadline for appointment.--Members of the Commission 
        shall be appointed not later than 90 days after the date of 
        enactment of this Act.
            (5) Chairperson.--The Chairperson of the Commission shall 
        be designated by the Speaker of the House of Representatives at 
        the time of appointment.
    (b) Terms.--
            (1) In general.--Each member shall be appointed for the 
        life of the Commission.
            (2) Vacancies.--A vacancy on the Commission shall--
                    (A) not affect the power of the remaining members 
                to execute the duty of the Commission; and
                    (B) be filled in the manner in which the original 
                appointment was made.
    (c) Compensation.--
            (1) Rates of pay; travel expenses.--Each member shall serve 
        without pay, except that each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with applicable provisions under subchapter I of 
        chapter 57 of title 5, United States Code.
            (2) Prohibition of compensation of federal employees.--
        Notwithstanding paragraph (1), any member of the Commission who 
        is a full-time officer or employee of the United States may not 
        receive additional pay, allowances, or benefits because of 
        service on the Commission.
    (d) Meeting Requirements.--
            (1) Frequency.--
                    (A) Quarterly meetings.--The Commission shall meet 
                at least quarterly.
                    (B) Additional meetings.--In addition to quarterly 
                meetings, the Commission shall meet at the call of the 
                Chairperson or a majority of its members.
            (2) Quorum.--Five members of the Commission shall 
        constitute a quorum, but a lesser number may hold hearings.
            (3) Meeting by telephone or other appropriate technology.--
        Members of the Commission are permitted to meet using 
        telephones or other suitable telecommunications technologies 
        provided that all members of the Commission can fully 
        communicate with all other members simultaneously.

SEC. 6. DIRECTOR AND STAFF OF COMMISSION; EXPERTS AND CONSULTANTS.

    (a) Director.--
            (1) Appointment.--The Commission shall have a Director who 
        shall be appointed by the Chairperson with the approval of the 
        Commission.
            (2) Credentials.--The Director shall have experience in the 
        areas of banking, securities and finance regulation, consumer 
        advocacy and fair housing programs, and the mortgage industry.
            (3) Salary.--The Director shall be paid at a rate 
        determined by the Chairperson with the approval of the 
        Commission, except that such rate may not exceed the rate of 
        basic pay for GS-15 of the General Schedule.
    (b) Staff.--With the approval of the Chairperson, the Director may 
appoint and fix the pay of additional qualified personnel as the 
Director considers appropriate.
    (c) Experts and Consultants.--With the approval of the Commission, 
the Director may procure temporary and intermittent services under 
section 3109(b) of title 5, United States Code, but at rates for 
individuals not to exceed the daily equivalent of the maximum annual 
rate of basic pay for GS-15 of the General Schedule.
    (d) Staff of Federal Agencies.--Upon request of the Commission, 
Chairperson, or Director, the head of any Federal department or agency 
may detail, on a nonreimbursable basis, any of the personnel of that 
department or agency to the Commission to assist the Commission in 
carrying out its duty under this Act.

SEC. 7. POWERS OF COMMISSION.

    (a) Hearings and Sessions.--The Commission may, for the purposes of 
carrying out this Act, hold hearings, sit and act at such times and 
such places, take testimony, and receive evidence as the Commission 
considers appropriate.
    (b) Subpoena Power.--
            (1) In general.--The Commission may issue a subpoena to 
        require the attendance and testimony of witnesses and the 
        production of evidence relating to any matter under 
        investigation by the Commission.
            (2) Issuance and signature.--Subpoenas issued under 
        paragraph (1) shall bear the signature of the Chairperson of 
        the Commission and shall be served by any person or class of 
        persons designated by the Chairperson for that purpose.
            (3) Enforcement.--If a person refuses to obey a subpoena 
        issued under paragraph (1), the Commission may apply to a 
        United States district court for an order requiring that person 
        to appear before the Commission to give testimony, produce 
        evidence, or both, relating to the matter under investigation. 
        The application may be made within the judicial district where 
        the hearing is conducted or where that person is found, 
        resides, or transacts business. Any failure to obey the order 
        of the court may be punished by the court as civil contempt.
    (c) Powers of Members and Agents.--Any member or agent of the 
Commission may, if authorized by the Commission, take any action which 
the Commission is authorized to take under this Act.
    (d) Obtaining Official Data.--The Commission may secure directly 
from any department or agency of the United States information 
necessary to enable it to carry out its duty under this Act. Upon 
request of the Chairperson, the head of that department or agency shall 
furnish that information to the Commission.
    (e) Physical Facilities and Equipment.--The Architect of the 
Capitol, in consultation with the appropriate entities in the 
legislative branch, shall locate and provide suitable facilities and 
equipment for the operation of the Commission on a nonreimbursable 
basis.
    (f) Administrative Support Services.--Upon request of the 
Commission, the Architect of the Capitol and the Administrator of the 
General Services shall provide to the Commission on a nonreimbursable 
basis such administrative support services as the Commission may 
request in order for the Commission to carry out its duty under this 
Act.
    (g) Bylaws, Rules, and Regulations.--The Commission may adopt, 
amend, and repeal bylaws, rules, and regulations governing the conduct 
of its business and the performance of its duties.
    (h) Commission Records.--The Commission shall keep accurate and 
complete records of its doings and transactions which shall be made 
available for public inspection, and for the purpose of audit and 
examination by the Comptroller General or his designee.

SEC. 8. INFORMATION FROM FREDDIE MAC, FANNIE MAE, AND THE FHFA.

    (a) Enterprises.--Fannie Mae and Freddie Mac shall provide full and 
prompt access to the Commission to any books, records, and other 
information requested for the purposes of carrying out its duty under 
this Act.
    (b) FHFA.--Upon request of the Commission, the Director of the 
Federal Housing Finance Agency shall provide access to any information 
necessary to assist the Commission in carrying out its duty under this 
Act.

SEC. 9. REPORT.

    Not later than 12 months after the date on which all initial 
members are appointed, the Commission shall submit to Congress a final 
report containing a detailed statement of the findings, conclusions, 
and recommendations of the Commission.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums 
as may be necessary for fiscal year 2011 to carry out this Act.

SEC. 11. TERMINATION.

    The Commission shall terminate following the submission and 
presentation of its final report and recommendations under section 9, 
but not later than 30 days after such submission and presentation.

Summary: Fannie Mae and Freddie Mac Investigative Commission Act - Establishes the Fannie Mae and Freddie Mac Investigative Commission to investigate and make recommendations to Congress regarding certain decisions of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (enterprises) that led to financial instability and federal conservatorship.

Requires the Commission to analyze specified topics, including: (1) the role of the enterprises in expanding homeownership and in helping housing market recovery; (2) enterprise involvement in the development of faulty risk standards, accounting practices, and the creation and proliferation of the securitized mortgage instrument, and how such instrument affected the solvency of such enterprises; (3) the role of the respective boards of directors in voting for the policies relating to risk assessments, subprime mortgages, and the international securitization of mortgages; and (4) compensation, stock options, and financial benefits that accrued to executive officers and members of the boards of directors.

Requires the enterprises and the Director of the Federal Housing Finance Agency to grant the Commission access to requested records and information.