jurisdiction: US

text:
 113 S1217 RS: Housing Finance Reform and Taxpayer Protection Act of 2013
 U.S. Senate
 2013-06-25
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 IICalendar No. 579113th CONGRESS2d SessionS. 1217IN THE SENATE OF THE UNITED STATESJune 25, 2013Mr. Corker (for himself, Mr. Warner, Mr. Johanns, Mr. Tester, Mr. Heller, Ms. Heitkamp, Mr. Moran, Mrs. Hagan, Mr. Kirk, Mr. Manchin, Mr. Chambliss, and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban AffairsSeptember 18, 2014Reported by Mr. Johnson of South Dakota, with an amendmentStrike out all after the enacting clause and insert the part printed in italicA BILLTo provide secondary mortgage market reform, and for
 other purposes.1.Short
 title; table of contents(a)Short
 titleThis Act may be cited
 as the Housing Finance Reform and
 Taxpayer Protection Act of 2013.(b)Table of
 ContentsThe table of contents for this Act is as follows:Sec. 1. Short title; table of
 contents.Sec. 2. Definitions.TITLE I—Federal Mortgage Insurance CorporationSec. 101. Establishment.Sec. 102. Director.Sec. 103. Board of Directors.Sec. 104. Office of the Inspector General.Sec. 105. Staff, experts, and consultants.Sec. 106. Reports; testimony; audits.Sec. 107. Initial funding.TITLE II—Duties, Responsibilities, and Structure of the
 FMICSubtitle A—Duties and AuthoritiesSec. 201. Duties and responsibilities of the FMIC.Sec. 202. Standard form credit risk-sharing mechanisms,
 products, structures, contracts, or other security agreements.Sec. 203. Mortgage Insurance Fund.Sec. 204. Insurance.Sec. 205. Authority to protect taxpayers in unusual and exigent
 market conditions.Sec. 206. General powers.Sec. 207. Exemptions.Subtitle B—Oversight of market participantsSec. 211. Approval of private mortgage insurers.Sec. 212. Approval of servicers.Sec. 213. Approval of issuers.Sec. 214. Approval of bond guarantors.Sec. 215. Authority to establish FMIC Mutual Securitization
 Company.Sec. 216. Additional authority relating to oversight of market
 participants.Sec. 217. Civil money penalties.Sec. 218. Protection of privilege and other matters relating to
 disclosures by market participants.Subtitle C—Transparency in market operationsSec. 221. Review of loan documents; disclosures.Sec. 222. Investor immunity.Sec. 223. Uniform securitization agreements.Sec. 224. Uniform mortgage database.Sec. 225. Electronic registration of eligible
 mortgages.Subtitle D—FMIC StructureSec. 231. Office of Underwriting.Sec. 232. Office of Securitization.Sec. 233. Office of Federal Home Loan Bank
 Supervision.TITLE III—Transfer of powers, personnel, and property to FMIC
 from FHFASec. 301. Powers and duties transferred.Sec. 302. Transfer and rights of employees of the
 FHFA.Sec. 303. Abolishment of FHFA.Sec. 304. Transfer of property and facilities.Sec. 305. Technical and conforming amendments.TITLE IV—Improving transparency, accountability, and efficacy
 within affordable housingSec. 401. Affordable housing allocations.Sec. 402. Housing Trust Fund.Sec. 403. Capital Magnet Fund.Sec. 404. Additional taxpayer protections.TITLE V—Wind Down of Fannie Mae and Freddie MacSec. 501. Repeal of GSE charters.Sec. 502. Wind down.Sec. 503. Aligning purpose of conservatorship with
 FMIC.Sec. 504. Conforming loan limits.Sec. 505. Portfolio reduction.Sec. 506. Repeal of mandatory housing goals.TITLE VI—Improvements to functioning of housing
 marketSec. 601. Continuation of multifamily business of the
 enterprises.Sec. 602. Multiple lender issues.Sec. 603. GAO report on full privatization of secondary
 mortgage market.TITLE VII—General provisionsSec. 701. Authority to issue regulations.Sec. 702. Fair value accounting.Sec. 703. Rule of construction.Sec. 704. Severability.2.DefinitionsAs used in this Act, the following
 definitions shall apply:(1)Approved bond
 guarantorThe term
 approved bond guarantor means any entity that provides credit
 enhancement that is approved by the Corporation pursuant to section 214 to
 guarantee the timely payment of principal and interest on securities
 collateralized by eligible mortgages and insured by the Corporation.(2)Approved
 issuerThe term approved issuer means an issuer
 that is approved by the Corporation pursuant to section 213—(A)to issue covered
 securities; and(B)to purchase
 insurance offered by the Corporation pursuant to title II on a covered
 security
 for which first loss credit enhancement has been secured.(3)Approved
 private mortgage insurerThe term approved private
 mortgage insurer means an insurer that is approved by the Corporation
 pursuant to section 211 to provide private mortgage insurance on eligible
 mortgages.(4)Approved
 servicerThe term approved servicer means a
 servicer that is approved by the Corporation pursuant to section 212 to
 administer eligible mortgages.(5)AreaThe
 term area—(A)means a
 metropolitan statistical area as established by the Office of Management
 and
 Budget; and(B)for purposes of
 paragraph (11)(A)(ii), the median 1-family house price for an area shall
 be
 equal to the median 1-family house price of the county within the area
 that has
 the highest such median price.(6)Board; Board of
 DirectorsThe terms Board and Board of
 Directors mean the Board of Directors of the Federal Mortgage Insurance
 Corporation.(7)CharterThe term charter means—(A)with respect to the Federal National
 Mortgage Association, the Federal National Mortgage Association Charter
 Act (12
 U.S.C. 1716 et seq.); and(B)with respect to the Federal Home Loan
 Mortgage Corporation, the Federal Home Loan Mortgage Corporation Act (12
 U.S.C.
 1451 et seq.).(8)CorporationThe
 term Corporation means the Federal Mortgage Insurance
 Corporation established under title I.(9)Covered
 securityThe term covered security means a
 mortgage-backed security—(A)collateralized by
 eligible mortgages;(B)which is issued
 subject to a standard form credit-risk sharing mechanism, product,
 structure,
 contract, or other securitization agreement developed by the Corporation
 pursuant to title II; and(C)which is eligible
 for insurance by the Corporation pursuant to title II, which insurance is
 purchased by an approved issuer who issues covered securities.(10)DirectorThe
 term Director means the Director of the Federal Mortgage
 Insurance Corporation, unless the context otherwise requires.(11)Eligible
 mortgageThe term eligible mortgage means a
 mortgage—(A)that is a
 residential real estate loan secured by a property with 1 to 4 single
 family
 units that has been originated in compliance with the provisions of
 section
 1026 of title 12 of the Code of Federal Regulations, as promulgated by the
 Bureau of Consumer Financial Protection pursuant to section 129C(b) of the
 Truth in Lending Act (15 U.S.C. 1639c(b)) (commonly referred to as the
 Ability-to-Repay and Qualified Mortgage Rule);(B)has a maximum
 original principal obligation amount that does not exceed the conforming
 loan
 limitation determined under section 504;(C)the outstanding
 principal balance of which at the time of purchase of insurance available
 under
 title II—(i)is
 less than 80 percent of the value of the property securing the mortgage;(ii)is
 not less than 80 percent but not more than 85 percent of the value of the
 property securing the mortgage, provided that not less than 12 percent of
 the
 unpaid principal balance of the mortgage, accounting for any downpayment
 required under subparagraph (D), is insured by—(I)an approved
 private mortgage insurer; or(II)lender recourse
 or other credit enhancement that—(aa)meets standards
 comparable to the standards required of private mortgage insurers under
 section
 211; and(bb)is
 approved by the Corporation;(iii)is not less
 than 85 percent but not more than 90 percent of the value of the property
 securing the mortgage, provided that not less than 25 percent of the
 unpaid
 principal balance of the mortgage, accounting for any downpayment required
 under subparagraph (D), is insured by—(I)an approved
 private mortgage insurer; or(II)lender recourse
 or other credit enhancement that—(aa)meets standards
 comparable to the standards required of private mortgage insurers under
 section
 211; and(bb)is approved by
 the Corporation; or(iv)is
 not less than 90 percent but not more than 95 percent of the value of the
 property securing the mortgage, provided that not less than 30 percent of
 the
 unpaid principal balance of the mortgage, accounting for any downpayment
 required under subparagraph (D), is insured by—(I)an approved
 private mortgage insurer; or(II)lender recourse
 or other credit enhancement that—(aa)meets standards
 comparable to the standards required of private mortgage insurers under
 section
 211; and(bb)is approved by
 the Corporation;(D)having a
 downpayment which shall be equal to not less than 5 percent of purchase
 price
 of the property securing the mortgage;(E)that is insured
 by an approved State licensed title insurance company;(F)that contains
 such terms and provisions with respect to insurance, property maintenance,
 repairs, alterations, payment of taxes, default, reserves, delinquency
 charges,
 foreclosure proceedings, anticipation of maturity, additional and
 secondary
 liens, and other matters, including matters that set forth terms and
 provisions
 for establishing escrow accounts, performing financial assessments, or
 limiting
 the amount of any payment made available under the mortgage as the
 Corporation
 may prescribe; and(G)that contains
 such other terms or characteristics as the Corporation, in consultation
 with
 the Bureau of Consumer Financial Protection, may determine necessary or
 appropriate.(12)EnterpriseThe
 term enterprise means—(A)the Federal
 National Mortgage Association and any affiliate thereof; and(B)the Federal Home
 Loan Mortgage Corporation and any affiliate thereof.(13)Federal
 banking agenciesThe term—(A)Federal
 banking agency means, individually, the Board of Governors of the
 Federal Reserve System, the Office of the Comptroller of the Currency, the
 Federal Deposit Insurance Corporation, the Bureau of Consumer Financial
 Protection, the National Credit Union Administration, the Securities and
 Exchange Commission, the Commodities Futures Trading Commission, the
 Federal
 Housing Finance Agency, and the Secretary of the Treasury; and(B)Federal
 banking agencies means all of the agencies referred to in subparagraph
 (A), collectively.(14)Federal Home
 Loan BankThe term Federal Home Loan Bank means a
 bank established under the authority of the Federal Home Loan Bank Act (12
 U.S.C. 1421 et seq.).(15)Federal Home
 Loan Bank SystemThe term Federal Home Loan Bank
 System means the Federal Home Loan Banks and the Office of Finance and
 any authorized subsidiary of one or more Federal Home Loan Banks.(16)FMIC
 certification dateThe term FMIC certification
 date means the date on which the Board of Directors certifies that the
 Corporation is operational and able to perform the insurance functions for
 covered securities as provided in this Act, which date shall be not later
 than
 5 years after the date of enactment of this Act.(17)Insured
 depository institutionThe term insured depository
 institution means—(A)an insured
 depository institution, as defined under section 3 of the Federal Deposit
 Insurance Act (12 U.S.C. 1813); and(B)a credit union
 that meets the definition of depository institution as that term
 is defined under section 19(b) of the Federal Reserve Act (12 U.S.C.
 461).(18)Senior
 Preferred Stock Purchase Agreement definedThe term Senior
 Preferred Stock Purchase Agreement means—(A)the Amended and
 Restated Senior Preferred Stock Purchase Agreement, dated September 26,
 2008,
 as such Agreement has been amended on May 6, 2009, December 24, 2009, and
 August 17, 2012, respectively, and as such Agreement may be further
 amended and
 restated, entered into between the Department of the Treasury and each
 enterprise, as applicable; and(B)any provision of
 any certificate in connection with such Agreement creating or designating
 the
 terms, powers, preferences, privileges, limitations, or any other
 conditions of
 the Variable Liquidation Preference Senior Preferred Stock of an
 enterprise
 issued or sold pursuant to such Agreement.(19)Transfer
 dateThe term transfer date means the date that is
 1 year after the date of enactment of this Act.IFederal Mortgage
 Insurance Corporation101.Establishment(a)EstablishmentThere
 is hereby established the Federal Mortgage Insurance Corporation which
 shall
 have the powers hereinafter granted.(b)PurposeThe
 purpose of the Corporation shall be to—(1)provide
 liquidity, transparency, and access to mortgage credit by supporting a
 robust
 secondary mortgage market and the production of residential
 mortgage-backed
 securities; and(2)protect the
 taxpayer from having to absorb losses incurred in the secondary mortgage
 market
 during periods of economic stress.(c)Federal
 StatusThe Corporation shall be an independent agency of the
 Federal Government.(d)SuccessionThe
 Corporation shall have succession until dissolved by Act of Congress.(e)Principal
 officeThe Corporation shall maintain its principal office in the
 District of Columbia and shall be deemed, for purposes of venue in civil
 actions, to be a resident thereof.(f)Authority To
 establish other officesThe Corporation may establish such other
 offices in such other place or places as the Corporation may deem
 necessary or
 appropriate in the conduct of its business.(g)ProhibitionThe
 Corporation shall not engage in mortgage origination.102.Director(a)Establishment
 of positionThere is established the position of the Director of
 the Corporation, who shall be the head of the Corporation.(b)Appointment;
 term(1)AppointmentThe
 Director shall be appointed by the President, by and with the advice and
 consent of the Senate, from among individuals who—(A)are citizens of
 the United States; and(B)have a
 demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience working in,
 the
 mortgage securities markets and housing finance.(2)TermThe
 Director shall be appointed for a term of 5 years, unless removed before
 the
 end of such term for cause by the President.(3)Vacancy(A)In
 generalA vacancy in the position of Director that occurs before
 the expiration of the term for which a Director was appointed shall be
 filled
 in the manner established under paragraph (1), and the Director appointed
 to
 fill such vacancy shall be appointed only for the remainder of such
 term.(B)Acting
 Director(i)Designation by
 the President(I)Eligible
 individualsIf the Senate has not confirmed a Director, the
 President may designate either the individual nominated, but not yet
 confirmed,
 for the position of Director or a member of the Board of Directors to
 serve as
 the Acting Director, and such Acting Director shall have all the rights,
 duties, powers, and responsibilities of the Director, until such time as a
 Director is confirmed by the Senate.(II)LimitationNo
 individual may serve concurrently as the Acting Director of the
 Corporation and
 the Director of the Federal Housing Finance Agency.(4)Service after
 end of termAn individual may serve as the Director after the
 expiration of the term for which appointed until a successor has been
 appointed.(5)CompensationThe
 Director shall be compensated at the rate prescribed for level II of the
 Executive Schedule under section 5313 of title 5, United States Code.(6)Rules of
 constructionNo individual—(A)may serve
 concurrently as the Director of the Corporation and the Director of the
 Federal
 Housing Finance Agency; and(B)that has, at any
 time prior to, on, or after the date of enactment of this Act, served as
 the
 Director of the Federal Housing Finance Agency may serve as the Director
 of the
 Corporation.(c)Membership on
 FSOCThe Dodd-Frank Wall Street Reform and Consumer Protection
 Act is amended—(1)in section 2, by
 amending paragraph (12)(E) to read as follows:(E)the Federal
 Mortgage Insurance Corporation, with respect to—(i)the Mortgage
 Insurance Fund established under title II of the
 Housing Finance Reform and Taxpayer
 Protection Act of 2013; and(ii)the Federal Home
 Loan Banks or the Federal Home Loan Bank
 System.;
 and(2)in section
 111(b)(1)(H), by striking Director of the Federal Housing Finance
 Agency and inserting Chairperson of the Federal Mortgage
 Insurance Corporation.103.Board of
 Directors(a)Board of
 Directors(1)Voting
 membersThe management of the Corporation shall be vested in a
 Board of Directors consisting of 5 voting members—(A)1 of whom shall
 be the Director, who shall serve as Chairperson of the Board; and(B)4 of whom shall
 be appointed by the President, by and with the advice and consent of the
 Senate, from among individuals who are citizens of the United States—(i)1
 of whom shall have demonstrated technical, academic, or professional
 understanding of, and practical, disciplinary, vocational, or regulatory
 experience working in, the field of asset management;(ii)1
 of whom shall have demonstrated technical, academic, or professional
 understanding of, and practical, disciplinary, vocational, or regulatory
 experience working in, mortgage insurance markets;(iii)1
 of whom shall have a demonstrated technical, academic, or professional
 understanding of, and practical, disciplinary, vocational, or regulatory
 experience working with, lenders having less than $10,000,000,000 in total
 assets; and(iv)1
 of whom shall have a demonstrated technical, academic, or professional
 understanding of, and practical, disciplinary, vocational, or regulatory
 experience working with, multifamily housing development.(2)Non-voting
 memberThe President shall appoint the Director of the Federal
 Housing Finance Agency as an additional non-voting member of the Board of
 Directors. The Director of the Federal Housing Finance Agency shall serve
 as
 non-voting member of the Board of Directors until such time as that
 position is
 abolished pursuant to title III.(3)Independence(A)In
 generalEach voting member of the Board of Directors shall be
 independent and neutral and maintain a fiduciary relationship to the
 Corporation in performing his or her duties.(B)Independence
 determinationIn order to be considered independent for purposes
 of this paragraph, a voting member of the Board of Directors—(i)may
 not, other than in his or her capacity as a member of the Board of
 Directors or
 any committee thereof—(I)accept any
 consulting, advisory, or other compensatory fee from the Corporation; or(II)be a person
 associated with the Corporation or with any affiliated company thereof;
 and(ii)shall be
 disqualified from any deliberation involving any transaction of the
 Corporation
 in which the member has a financial interest in the outcome of the
 transaction.(4)Rule of
 constructionNo individual that has, at any time prior to, on, or
 after the date of enactment of this Act, served as the Director or Acting
 Director of the Federal Housing Finance Agency may serve as a voting
 member of
 the Board of Directors.(b)AdministrationExcept
 as otherwise may provided in this Act, the Board of Directors shall
 administer
 the affairs of the Corporation fairly and impartially and without
 discrimination.(c)ConsultationThe
 Board of Directors may, in carrying out any duty, responsibility,
 requirement,
 or action authorized under this Act, consult with the Federal banking
 agencies
 or any individual Federal banking agency, as the Board determines
 necessary and
 appropriate.(d)Terms(1)Appointed
 membersEach appointed voting member shall be appointed for a
 term of 5 years and shall serve on a full-time basis.(2)Interim
 appointmentsAny voting member appointed to fill a vacancy
 occurring before the expiration of the term for which such member's
 predecessor
 was appointed shall be appointed only for the remainder of such term.(3)Continuation of
 serviceThe Chairperson and each appointed voting member may
 continue to serve after the expiration of the term of office to which such
 member was appointed until a successor has been appointed and qualified.(e)VacancyA
 vacancy in the voting membership of the Board of Directors shall not
 affect the
 powers of the Board, and shall be filled in the manner in which the
 original
 appointment was made.(f)VotingA
 majority vote of all voting members of the Board of Directors is necessary
 to
 resolve all voting issues of the Corporation.(g)MeetingsThe
 Board of Directors shall meet in accordance with the bylaws of the
 Corporation—(1)at the call of the
 Chairperson; and(2)not less
 frequently than once each month.(h)QuorumThree
 voting members of the Board of Directors then in office shall constitute a
 quorum.(i)BylawsA
 majority of the voting members of the Board of Directors may amend the
 bylaws
 of the Corporation.(j)AttendanceMembers
 of the Board of Directors may attend meetings of the Corporation and vote
 in
 person, via telephone conference, or via video conference.(k)Ineligibility
 for other offices during service(1)In
 generalNo voting member of the Board of Directors may during the
 time such member is in office—(A)be an officer or
 director of any insured depository institution, depository institution
 holding
 company, Federal Reserve bank, Federal home loan bank, approved servicer,
 approved private mortgage insurer, institution that originates eligible
 mortgages, or institution that issues a covered security; or(B)hold stock or a
 controlling interest in any insured depository institution or depository
 institution holding company, approved servicer, approved private mortgage
 insurer, institution that originates eligible mortgages, or institution
 that
 issues a covered security.(2)CertificationUpon
 taking office, each voting member of the Board of Directors shall certify
 under
 oath that such member has complied with this subsection and such
 certification
 shall be filed with the secretary of the Board of Directors.(l)Status of
 employees(1)In
 generalA director, member, officer, or employee of the
 Corporation has no liability under the Securities Act of 1933 (15 U.S.C.
 77a et
 seq.) with respect to any claim arising out of or resulting from any act
 or
 omission by such person within the scope of such person's employment in
 connection with any transaction involving the Corporation. This subsection
 shall not be construed to limit personal liability for criminal acts or
 omissions, willful or malicious misconduct, acts or omissions for private
 gain,
 or any other acts or omissions outside the scope of such person's
 employment.(2)Effect on other
 law(A)In
 generalThis subsection does not affect—(i)any
 other immunities and protections that may be available to such person
 under
 applicable law with respect to such transactions; or(ii)any other right
 or remedy against the Corporation, against the United States under
 applicable
 law, or against any person other than a person described in paragraph (1)
 participating in such transactions.(B)Rule of
 constructionThis subsection shall not be construed to limit or
 alter in any way the immunities that are available under applicable law
 for
 Federal officials and employees not described in this subsection.104.Office of the
 Inspector General(a)Office of
 Inspector General(1)In
 generalThere is established the Office of the Inspector General
 of the Federal Mortgage Insurance Corporation. The head of the Office of
 the
 Inspector General of the Federal Mortgage Insurance Corporation is the
 Inspector General of the Federal Mortgage Insurance Corporation (in this
 section referred to as the Inspector General), who shall be
 appointed by the President, by and with the advice and consent of the
 Senate.(2)Additional
 responsibilitiesIn addition to carrying out the requirements
 established under the Inspector General Act of 1978 (5 U.S.C. App.), the
 Inspector General shall—(A)conduct,
 supervise, and coordinate audits and investigations relating to the
 programs
 and operations of the Corporation—(i)to
 ensure that the first loss position that the Corporation requires of
 private
 market holders of covered securities insured under this Act is adequate to
 cover losses that might be incurred as a result of adverse economic
 conditions,
 wherein such conditions are generally consistent with the economic
 conditions,
 including national home price declines, observed in the United States
 during
 moderate to severe recessions experienced during the last 100 years; and(ii)with respect to
 the—(I)oversight and
 supervision of the Federal Home Loan Banks and the Federal Home Loan Bank
 System; and(II)the contracting
 practices and procedures of the Corporation; and(B)recommend
 policies for the purpose of addressing any deficiencies, inefficiencies,
 gaps,
 or failures in the administration of such programs and operations.(3)Inspector
 General report; report of independent actuaryBeginning 1 year
 after the FMIC certification date, and annually thereafter, the Inspector
 General and an independent actuary contracted for by the Director shall
 each
 conduct an examination and issue a separate report regarding—(A)the adequacy of
 insurance fees charged by the Board of Directors under title II; and(B)the adequacy of
 the Mortgage Insurance Fund established under title II.(b)Amendments to
 Inspector General Act of 1978Section 11 of the Inspector General
 Act of 1978 (5 U.S.C. App.) is amended—(1)in paragraph (1),
 by inserting Chairperson of the Federal Mortgage Insurance
 Corporation; after the Director of the Federal Housing Finance
 Agency;; and(2)in paragraph (2),
 by inserting the Federal Mortgage Insurance Corporation, after
 the Federal Housing Finance Agency,.(c)CompensationThe
 annual rate of basic pay of the Inspector General shall be the annual rate
 of
 basic pay provided for positions at level III of the Executive Schedule
 under
 section 5314 of title 5, United States Code.105.Staff,
 experts, and consultants(a)Compensation(1)In
 generalThe Board of Directors may appoint and fix the
 compensation of such officers, attorneys, economists, examiners, and other
 employees as may be necessary for carrying out the functions of the
 Corporation.(2)Rates of
 payRates of basic pay and the total amount of compensation and
 benefits for all employees of the Corporation may be—(A)set and adjusted
 by the Board of Directors without regard to the provisions of chapter 51
 or
 subchapter III of chapter 53 of title 5, United States Code; and(B)reasonably
 increased, notwithstanding any limitation set forth in paragraph (3), if
 the
 Board of Directors determines such increases are necessary to attract and
 hire
 qualified employees.(3)ParityThe
 Board of Directors may provide additional compensation and benefits to
 employees of the Corporation, of the same type of compensation or benefits
 that
 are then being provided by any agency referred to under section 1206 of
 the
 Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
 U.S.C.
 1833b) or, if not then being provided, could be provided by such an agency
 under applicable provisions of law, rule, or regulation. In setting and
 adjusting the total amount of compensation and benefits for employees, the
 Board of Directors shall consult with and seek to maintain comparability
 with
 the agencies referred to under section 1206 of the Financial Institutions
 Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833b).(b)Detail of
 government employeesUpon the request of the Board of Directors,
 any Federal Government employee may be detailed to the Corporation without
 reimbursement, and such detail shall be without interruption or loss of
 civil
 service status or privilege.(c)Experts and
 consultantsThe Board of Directors may procure the services of
 experts and consultants as the Board considers necessary or appropriate.(d)Technical and
 professional advisory committeesThe Board of Directors may
 appoint such special advisory, technical, or professional committees as
 may be
 useful in carrying out the functions of the Corporation.106.Reports;
 testimony; audits(a)Reports(1)In
 generalThe Corporation shall submit, on an annual basis, to the
 Committee on Banking, Housing, and Urban Affairs of the Senate and the
 Committee on Financial Services of the House of Representatives a written
 report of its operations, activities, budget, receipts, and expenditures
 for
 the preceding 12-month period.(2)Contents of
 reportThe report required under subsection (a) shall include an
 analysis of—(A)with respect to
 the Mortgage Insurance Fund established under section 203—(i)the
 current financial condition of the Mortgage Insurance Fund;(ii)the exposure of
 the Mortgage Insurance Fund to changes in those economic factors most
 likely to
 affect the condition of that fund;(iii)a
 current estimate of the resources needed for the Mortgage Insurance Fund
 to
 achieve the purposes of this Act; and(iv)any findings,
 conclusions, and recommendations for legislative and administrative
 actions
 considered appropriate to the future activities of the Corporation;(B)the secondary
 mortgage market, the housing market, and the economy, including through
 use of
 stress tests, and how such analysis was used to determine and set the
 reserve
 ratio for the Mortgage Insurance Fund for the preceding 12-month period;(C)whether or not
 the actual reserve ratio of the Mortgage Insurance Fund met—(i)the
 reserve ratio set for the preceding 12-month period; or(ii)the reserve
 ratio goals established in section 203(e);(D)how the
 Corporation intends to ensure that the goals set for the reserve ratio for
 the
 Mortgage Insurance Fund are to be met and maintained for the next 12-month
 period, and such analysis shall include a detailed and descriptive plan of
 the
 actions that the Corporation intends to take pursuant to its authorities
 under
 this Act;(E)how the
 Corporation has provided liquidity, transparency, and access to mortgage
 credit
 in its support of a robust secondary mortgage market and the production of
 residential mortgage-backed securities;(F)the state of the
 private label mortgage-backed securities market, and such analysis shall
 include the submission of a reasonable set of administrative, regulatory,
 and
 legislative proposals on how to limit the Federal Government's footprint
 in the
 secondary mortgage market;(G)the effect that
 further decreases in loan limits would have on the secondary mortgage
 market,
 the housing market, and the economy; and(H)the state of the
 global covered bond market.(b)TestimonyThe
 Chairperson of the Corporation, on a biannual basis, shall provide
 testimony to
 the Committee on Banking, Housing, and Urban Affairs of the Senate and the
 Committee on Financial Services of the House of Representatives.(c)Audit of
 Corporation(1)Annual
 auditThe Comptroller General of the United States shall annually
 audit the financial transactions of the Corporation in accordance with the
 United States generally accepted government auditing standards as may be
 prescribed by the Comptroller General.(2)Place of
 auditThe audit required under this subsection shall be conducted
 at the place or places where accounts of the Corporation are normally
 kept.(3)AccessThe
 representatives of the Comptroller General shall have access to the
 personnel
 and to all books, accounts, documents, papers, records (including
 electronic
 records), reports, files, and all other papers, automated data, or
 property
 belonging to or under the control of or used or employed by the
 Corporation
 pertaining to its financial transactions and necessary to facilitate the
 audit
 required under this subsection, and such representatives shall be afforded
 full
 facilities for verifying transactions with the balances or securities held
 by
 depositories, fiscal agents, and custodians.(4)Possession and
 custodyAll such books, accounts, documents, records, reports,
 files, papers, and property of the Corporation used to carry out the audit
 required under this subsection shall remain in the possession and custody
 of
 the Corporation.(5)Permissible
 duplicationThe Comptroller General may obtain and duplicate any
 such books, accounts, documents, records, working papers, automated data
 and
 files, or other information relevant to such audit without cost to the
 Comptroller General and the Comptroller General’s right of access to such
 information shall be enforceable pursuant to section 716(c) of title 31,
 United
 States Code.(6)Report(A)Submission to
 CongressThe Comptroller General shall submit to Congress a
 report of each annual audit conducted under this subsection.(B)Required
 contentThe report to Congress required under subparagraph (A)
 shall—(i)set
 forth the scope of the audit; and(ii)include—(I)the statement of
 assets and liabilities and surplus or deficit;(II)the statement of
 income and expenses;(III)the statement
 of sources and application of funds; and(IV)such comments
 and information as the Comptroller General may deem necessary to inform
 Congress of the financial operations and condition of the Corporation,
 together
 with such recommendations with respect thereto as the Comptroller General
 may
 deem advisable.(C)CopiesA
 copy of each report required under subparagraph (A) shall be furnished to
 the
 President and to the Chairperson of the Corporation at the time such
 report is
 submitted to the Congress.(7)Assistance and
 costs(A)Permitted use
 of outside assistanceFor the purpose of conducting an audit
 under this subsection, the Comptroller General may employ by contract,
 without
 regard to section 3709 of the Revised Statutes of the United States (41
 U.S.C.
 5), professional services of firms and organizations of certified public
 accountants for temporary periods or for special purposes.(B)Cost of audit
 covered by Corporation(i)In
 generalUpon the request of the Comptroller General, the
 Chairperson of the Corporation shall transfer to the Comptroller General
 from
 funds available, the amount requested by the Comptroller General to cover
 the
 reasonable costs of any audit and report conducted by the Comptroller
 General
 pursuant to this subsection.(ii)Credit of
 fundsThe Comptroller General shall credit funds transferred
 under clause (i) to the account at the Treasury established for salaries
 and
 expenses of the Government Accountability Office, and such amounts shall
 be
 available upon receipt and without fiscal year limitation to cover the
 full
 costs of the audit and report.107.Initial
 funding(a)In
 generalSection 1316 of the
 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
 U.S.C. 4516) is amended by adding at the end the following:(i)Annual
 assessments relating to initial funding of the
 FMICNotwithstanding title V of the
 Housing Finance Reform and Taxpayer
 Protection Act of 2013 or any other provision of law, for the
 period beginning on the date of enactment of this subsection and
 ending on the
 FMIC certification date (as that date is set forth under section
 2(16) of the
 Housing Finance Reform and Taxpayer
 Protection Act of 2013, the Director, in consultation with the
 Chairperson of the Federal Mortgage Insurance Corporation, shall
 establish and
 collect from the enterprises annual assessments in addition to
 those required
 under subsection (a) in an amount not exceeding the amount
 sufficient to
 provide for the reasonable costs (including administrative costs)
 and expenses
 of the Corporation. All amounts collected under this subsection
 shall be
 transferred to the Federal Mortgage Insurance Corporation. The
 annual
 assessment shall be payable semiannually for each fiscal year, on
 October 1 and
 April 1..
 (b)Treatment of
 assessments(1)DepositAmounts
 received by the Corporation from assessments imposed under section 1316(i)
 of
 the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
 shall be deposited by the Corporation in the manner provided in section
 5234 of
 the Revised Statutes of the United States (12 U.S.C. 192) for monies
 deposited
 by the Comptroller of the Currency.(2)Not government
 fundsThe amounts received by the Corporation from any assessment
 imposed under section 1316(i) of the Federal Housing Enterprises Financial
 Safety and Soundness Act of 1992 shall not be construed to be Government
 or
 public funds or appropriated money.(3)No
 apportionment of fundsNotwithstanding any other provision of
 law, the amounts received by the Corporation from any assessment imposed
 under
 section 1316(i) of the Federal Housing Enterprises Financial Safety and
 Soundness Act of 1992 shall not be subject to apportionment for the
 purpose of
 chapter 15 of title 31, United States Code, or under any other
 authority.(4)Use of
 funds(A)In
 generalThe Corporation may use any amounts received from
 assessments imposed under section 1316(i) of the Federal Housing
 Enterprises
 Financial Safety and Soundness Act of 1992—(i)for
 compensation of the employees of the Corporation; and(ii)for all other
 expenses of the Corporation.(B)Treasury
 investmentsThe Corporation may request the Secretary of the
 Treasury to invest such portions of amounts received from assessments
 imposed
 under section 1316(i) of the Federal Housing Enterprises Financial Safety
 and
 Soundness Act of 1992 that, in the discretion of the Corporation, are not
 required to meet the current working needs of the Corporation.(C)Government
 obligationsPursuant to a request under subparagraph (B), the
 Secretary of the Treasury shall invest such amounts in Government
 obligations—(i)guaranteed as to
 principal and interest by the United States with maturities suitable to
 the
 needs of the Corporation; and(ii)bearing interest
 at a rate determined by the Secretary of the Treasury taking into
 consideration
 current market yields on outstanding marketable obligations of the United
 States of comparable maturity.IIDuties,
 Responsibilities, and Structure of the FMICADuties and
 Authorities201.Duties and
 responsibilities of the FMIC(a)DutiesThe
 principal duties of the Corporation shall be to—(1)carry out this
 Act in a manner that—(A)minimizes any
 potential long-term negative cost on the taxpayer; and(B)ensures, to the
 maximum extent possible—(i)a
 liquid and resilient housing finance market; and(ii)the availability
 of mortgage credit;(2)develop standard
 form credit risk-sharing mechanisms, products, structures, contracts, or
 other
 security agreements that require private market holders of a covered
 security
 insured under this Act to assume the first loss position with respect to
 losses
 incurred on such securities;(3)provide insurance
 on any covered security for which private market holders of such security
 have
 assumed the first loss position with respect to losses that may be
 incurred on
 such security in order to provide a liquid and resilient housing finance
 market;(4)provide
 leadership to the housing finance market to help ensure that all
 geographic
 locations have access to mortgage credit;(5)charge and
 collect fees in exchange for providing such insurance, whereby such fees
 shall
 be sufficient to protect the taxpayer from the risk of providing such
 insurance
 and to fund the activities and operations of the Corporation;(6)establish and
 maintain a Mortgage Insurance Fund;(7)facilitate
 securitization of eligible mortgages originated by credit unions and
 community
 and mid-size banks without securitization capabilities;(8)ensure discipline
 and integrity in the market for covered securities by setting standards
 for the
 approval of private mortgage insurers, servicers, issuers, and bond
 guarantors;(9)establish,
 operate, and maintain a database for the collection, public use, and
 dissemination of uniform loan level information on eligible mortgages;(10)develop, adopt,
 and publish standard uniform securitization agreements for covered
 securities;(11)establish,
 operate, and maintain an electronic registry system for eligible mortgages
 that
 collateralize covered securities insured under this Act;(12)oversee and
 supervise the common securitization platform developed by the business
 entity
 announced by the Federal Housing Finance Agency and established by the
 enterprises; and(13)ensure that
 credit unions and community and mid-size banks—(A)have equal access
 to any such common securitization platform and any other securitization
 platforms; and(B)are not, in their
 access or use of such platforms, discriminated against through discounts
 for
 volume pricing or other mechanisms.(b)Scope of
 authorityThe authority of the Corporation shall include the
 authority to exercise such incidental powers as may be necessary or
 appropriate
 to fulfill the duties and responsibilities of the Corporation set forth
 under
 subsection (a).(c)Delegation of
 authorityThe Board of Directors may delegate to officers and
 employees of the Corporation any of the functions, powers, or duties of
 the
 Corporation, as the Board of Directors determines appropriate.202.Standard form
 credit risk-sharing mechanisms, products, structures, contracts, or other
 security agreements(a)Requirements;
 share of loss; diversityPursuant to section 201(a)(2), the
 Corporation shall develop standard form credit-risk sharing mechanisms,
 products, structures, contracts, or other security agreements which shall
 require that the first loss position of private market holders of a
 covered
 security insured under this Act—(1)is adequate to
 cover losses that might be incurred as a result of adverse economic
 conditions,
 wherein such conditions are generally consistent with the economic
 conditions,
 including national home price declines, observed in the United States
 during
 moderate to severe recessions experienced during the last 100 years; and(2)is not less than
 10 percent of the principal or face value of the covered security.(b)Development
 window for risk-Sharing mechanisms(1)In
 generalThe Corporation shall complete the development and
 implementation of the mechanisms, products, structures, contracts, or
 other
 security agreements required under subsection (a) not later than 5 years
 after
 the date of enactment of this Act.(2)Examination of
 various mechanismsIn developing the mechanisms, products,
 structures, contracts, or other security agreements required under
 subsection
 (a), the Corporation shall—(A)examine proposals
 that include a senior-subordinated deal structure, credit-linked
 structures,
 and the use of regulated guarantors with sufficient equity capital to
 absorb
 losses associated with moderate or severe economic downturns;(B)consider any
 risk-sharing mechanisms, products, structures, contracts, or other
 security
 agreements undertaken by the business entity announced by the Federal
 Housing
 Finance Agency and established by the enterprises to provide a common
 securitization platform for issuers in the secondary mortgage market;(C)consider how each
 proposed mechanism, product, structure, contract, or other security
 agreement—(i)minimizes any
 potential long-term negative cost to the taxpayer;(ii)impacts the
 availability of mortgage credit for—(I)small financial
 institutions, such as credit unions and community and mid-size banks;
 and(II)consumers;(iii)influences
 mortgage affordability;(iv)allows for loan
 modifications and foreclosure prevention alternatives;(v)interacts with
 the To-Be-Announced market; and(vi)facilitates
 market liquidity and resiliency; and(D)ensure that
 lenders of all sizes and from all geographic locations, including rural
 locations, have equitable access to secondary mortgage market financing.(3)Report(A)In
 generalNot later than 1 year after the date of enactment of this
 Act, and annually thereafter until the end of the 5-year period provided
 in
 paragraph (1), the Corporation shall submit a report to the Committee on
 Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives that—(i)details the
 benefits and drawbacks of each mechanism, product, structure, contract, or
 other security agreement that the Director considered in carrying out the
 requirement of this section;(ii)describes the
 operation and execution of any mechanisms, products, structures,
 contracts, or
 other security agreements that the Director determines best fulfills the
 requirements of this section; and(iii)explains how
 the Corporation arrived at the determination made under clause (ii).(B)Subsequent
 reportsAfter the expiration of the 5-year period provided in
 paragraph (1) and the submission of the report required under subparagraph
 (A),
 each time the Corporation develops an additional standard form credit
 risk-sharing mechanism, product, structure, contract, or other security
 agreement that fulfills the requirements of this section, the Corporation
 shall
 submit a report to the Committee on Banking, Housing, and Urban Affairs of
 the
 Senate and the Committee on Financial Services of the House of
 Representatives
 addressing the identical concerns set forth under clauses (i) through
 (iii) of
 subparagraph (A).203.Mortgage
 Insurance Fund(a)EstablishmentThere
 is established the Mortgage Insurance Fund, which the Corporation shall—(1)maintain and
 administer; and(2)use to cover
 losses incurred on covered securities insured under this Act, when such
 losses
 exceed the first position losses absorbed by private market holders of
 such
 securities.(b)DepositsThe
 Mortgage Insurance Fund shall be credited with any—(1)insurance fee
 amounts required to be deposited in the Fund under this section;(2)guarantee fee
 amounts collected under section 601; and(3)amounts earned on
 investments pursuant to subsection (h).(c)Fiduciary
 responsibilityThe Corporation has the responsibility to ensure
 that the Mortgage Insurance Fund remains financially sound.(d)Use(1)In
 generalThe Mortgage Insurance Fund shall be solely available to
 the Corporation for use by the Corporation to carry out the functions
 authorized by this Act and may not be used or otherwise diverted to cover
 any
 other expense of the Federal Government.(2)Exemption from
 apportionmentNotwithstanding any other provision of law, amounts
 received by the Mortgage Insurance Fund pursuant to any fees collected
 under
 this section shall not be subject to apportionment for the purposes of
 chapter
 15 of title 31, United States Code, or under any other authority.(e)Reserve ratio
 goals for Mortgage Insurance FundThe Corporation shall endeavor
 to ensure that the Mortgage Insurance Fund attains a reserve balance—(1)of 1.25 percent
 of the sum of the outstanding principal balance of the covered securities
 for
 which insurance is being provided under this title within 5 years of the
 FMIC
 certification date, and to strive to maintain such ratio thereafter,
 subject to
 subparagraph (B); and(2)of 2.50 percent
 of the sum of the outstanding principal balance of the covered securities
 for
 which insurance is being provided under this title within 10 years of the
 FMIC
 certification date, and to strive to maintain such ratio at all times
 thereafter.(f)Maintenance of
 reserve ratio; establishment of fees(1)Establishment
 of feesThe Corporation shall charge and collect a fee, and may
 in its discretion increase or decrease such fee, in connection with any
 insurance provided under this title to—(A)achieve and
 maintain the reserve ratio goals established under subsection (e);(B)achieve such
 reserve ratio goals, if the actual balance of such reserve is below the
 goal
 amounts established under subsection (e); and(C)fund the
 operations of the Corporation.(2)Fee
 considerationsIn exercising the authority granted under
 paragraph (1), the Corporation shall consider—(A)the expected
 operating expenses of the Mortgage Insurance Fund;(B)the risk of loss
 to the Mortgage Insurance Fund in carrying out the requirements under this
 Act;(C)the risk
 presented by, and the loss absorption capacity of, the credit enhancement
 that
 is provided on the pool of eligible mortgages collateralizing the covered
 security to be insured under this title;(D)economic
 conditions generally affecting the mortgage markets;(E)the extent to
 which the reserve ratio of the Mortgage Insurance Fund met—(i)the
 reserve ratio set for the preceding 12-month period; or(ii)the reserve
 ratio goals established in subsection (e); and(F)any other factor
 that the Corporation determines appropriate.(3)Fee
 UniformityThe fee required under paragraph (1)—(A)shall be set at a
 uniform amount applicable to all institutions purchasing insurance under
 this
 title;(B)may not
 vary—(i)by
 geographic location; or(ii)by
 the size of the institution to which the fee is charged; and(C)may not be based
 on the volume of insurance to be purchased by an approved issuer.(4)Deposit into
 Mortgage Insurance FundAny fee amounts collected under this
 subsection shall be deposited in the Mortgage Insurance Fund.(g)Full Faith and
 CreditThe full faith and credit of the United States is pledged
 to the payment of all amounts from the Mortgage Insurance Fund which may
 be
 required to be paid under any insurance provided under this title.(h)InvestmentsAmounts
 in the Mortgage Insurance Fund that are not otherwise employed—(1)shall be invested
 in obligations of the United States; and(2)may not be
 invested in any covered security insured under this Act.204.Insurance(a)AuthorityThe
 Corporation shall, upon application and in exchange for a fee in
 accordance
 with section 203(f), insure the payment of principal and interest on a
 covered
 security with respect to losses that may be incurred on such security.(b)Precondition;
 ensuring placement of first loss capitalThe Corporation shall
 develop standards and processes to ensure that prior to making any
 commitment
 to provide insurance under this section that private market holders have
 taken
 first loss position in a covered security and that such holders have
 sufficient
 capital to cover their risk-sharing obligations.(c)Cash payments;
 continued operationsIn the event of a payment default on an
 eligible mortgage that collateralizes a covered security insured under
 this
 section that exceeds the first loss position assumed by a private market
 holder
 or that, in the case of an approved bond guarantor, if the guarantor has
 become
 insolvent, the Corporation shall—(1)pay, in cash when
 due, any shortfalls in payment of principal and interest under the
 eligible
 mortgage; and(2)continue to
 charge and collect any fees for the provision of insurance (in accordance
 with
 section 203(f)) relating to the covered security.(d)Full faith and
 creditThe full faith and credit of the United States is pledged
 to the payment of all amounts which may be required to be paid under any
 insurance provided under this section.(e)Prohibition on
 Federal assistanceNotwithstanding any other provision of law, no
 Federal funds may be used to purchase or guarantee obligations of, issue
 lines
 of credit to, provide direct or indirect access to any financing provided
 by
 the United States Government to, or provide direct or indirect grants and
 aid
 to any private market holder of the first loss position on a covered
 security
 which, on or after the date of enactment of this Act, has defaulted on its
 obligations, is at risk of defaulting, or is likely to default, absent
 such
 assistance from the United States Government.205.Authority to
 protect taxpayers in unusual and exigent market conditions(a)In
 generalIf the Corporation,
 upon the written agreement of the Chairman of the Board of Governors of
 the
 Federal Reserve System and the Secretary of the Treasury, and in
 consultation
 with the Secretary of Housing and Urban Development, determines that
 unusual
 and exigent circumstances have created or threatened to create an
 anomalous
 lack of mortgage credit availability within the housing markets that could
 materially and severely disrupt the functioning of the housing finance
 system
 of the United States, the Corporation may, for a period not to exceed 6
 months,
 provide insurance in accord with section 204 to any covered security
 regardless
 of whether such security has satisfied the requirements of section
 202(a).(b)ConsiderationsIn
 exercising the authority granted under subsection (a), the Corporation
 shall
 consider the severity of the conditions present in the housing markets and
 the
 risks presented to the Mortgage Insurance Fund in exercising such
 authority.(c)LimitationThe
 authority granted to the Corporation under subsection (a) may not be
 exercised
 more than once in any given 3-year period.206.General
 powers(a)Corporate
 powersThe Federal Mortgage Insurance Corporation shall have
 power—(1)to adopt, alter,
 and use a corporate seal, which shall be judicially noticed;(2)to enter into and
 perform contracts, leases, cooperative agreements, or other transactions,
 on
 such terms as it may deem appropriate, with any agency or instrumentality
 of
 the United States, or with any State, Territory, or possession, or the
 Commonwealth of Puerto Rico, or with any political subdivision thereof, or
 with
 any person, firm, association, or corporation;(3)to execute, in
 accordance with its bylaws, all instruments necessary or appropriate in
 the
 exercise of any of its powers;(4)in its corporate
 name, to sue and to be sued, and to complain and to defend, in any court
 of
 competent jurisdiction, State or Federal, but no attachment, injunction,
 or
 other similar process, mesne or final, shall be issued against the
 property of
 the Corporation;(5)to conduct its
 business without regard to any qualification or similar statute in any
 State of
 the United States, including the District of Columbia, the Commonwealth of
 Puerto Rico, and the Territories and possessions of the United States;(6)to lease,
 purchase, or acquire any property, real, personal, or mixed, or any
 interest
 therein, to hold, rent, maintain, modernize, renovate, improve, use, and
 operate such property, and to sell, for cash or credit, lease, or
 otherwise
 dispose of the same, at such time and in such manner as and to the extent
 that
 it may deem necessary or appropriate;(7)to prescribe,
 repeal, and amend or modify, rules, regulations, or requirements governing
 the
 manner in which its general business may be conducted;(8)to accept gifts
 or donations of services, or of property, real, personal, or mixed,
 tangible,
 or intangible, in aid of any of its purposes; and(9)to do all things
 as are necessary or incidental to the proper management of its affairs and
 the
 proper conduct of its business.(b)ExpendituresExcept
 as may be otherwise provided in this title, in chapter 91 of title 31,
 United
 States Code, or in other laws specifically applicable to Government
 corporations, the Corporation shall determine the necessity for, and the
 character and amount of its obligations and expenditures, and the manner
 in
 which they shall be incurred, allowed, paid, and accounted for.(c)Exemption from
 certain taxesThe Corporation, including its franchise, capital,
 reserves, surplus, mortgages or other security holdings, and income shall
 be
 exempt from all taxation now or hereafter imposed by the United States, by
 any
 territory, dependency, or possession thereof, or by any State, county,
 municipality, or local taxing authority, except that any real property of
 the
 Corporation shall be subject to State, territorial, county, municipal, or
 local
 taxation to the same extent according to its value as other real property
 is
 taxed.(d)Exclusive use
 of nameNo individual, association, partnership, or corporation,
 except the bodies corporate named under section 101, shall hereafter use
 the
 words Federal Mortgage Insurance Corporation or any combination
 of such words, as the name or a part thereof under which the individual,
 association, partnership, or corporation shall do business. Violations of
 the
 foregoing sentence may be enjoined by any court of general jurisdiction at
 the
 suit of the proper body corporate. In any such suit, the plaintiff may
 recover
 any actual damages flowing from such violation, and, in addition, shall be
 entitled to punitive damages (regardless of the existence or nonexistence
 of
 actual damages) of not exceeding $100 for each day during which such
 violation
 is committed or repeated.(e)Fiscal
 agentsThe Federal Reserve banks are authorized and directed to
 act as depositories, custodians, and fiscal agents for each of the bodies
 corporate named in section 101, for its own account or as fiduciary, and
 such
 banks shall be reimbursed for such services in such manner as may be
 agreed
 upon; and each of such bodies corporate may itself act in such capacities,
 for
 its own account or as fiduciary, and for the account of others.207.Exemptions(a)Securities
 exempt from SEC regulation(1)In
 generalAll covered securities insured or guaranteed by the
 Corporation shall, to the same extent as securities that are direct
 obligations
 of or obligations guaranteed as to principal or interest by the United
 States,
 be deemed to be exempt securities within the meaning of the laws
 administered
 by the Securities and Exchange Commission.(2)Conforming
 amendmentThe first sentence
 of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is
 amended by inserting or any covered security, as such term is defined
 under section 2(9) of the Housing Finance
 Reform and Taxpayer Protection Act of 2013; after
 Federal Reserve bank;.(b)QRM
 exemptionSection 15G(e) of the Securities Exchange Act of 1934
 (15 U.S.C. 78o–11(e)) is amended—(1)in paragraph
 (3)(B)—(A)by striking
 Association, the and inserting Association and
 the; and(B)by striking
 and the Federal home loan banks; and(2)by adding at the
 end the following:(7)Covered
 securities insured by the Federal Mortgage Insurance
 CorporationNotwithstanding any other provision of this section,
 the requirements of this section shall not apply to any covered
 security, as
 such term is defined under section 2(9) of the
 Housing Finance Reform and Taxpayer
 Protection Act of 2013, insured or guaranteed by the Federal
 Mortgage Insurance Corporation or any institution that is subject
 to the
 supervision of the Federal Mortgage Insurance
 Corporation..BOversight of
 market participants211.Approval of
 private mortgage insurers(a)Standards for
 approval of private mortgage insurers(1)In
 generalThe Corporation shall develop, adopt, and publish
 standards for the approval by the Corporation of private mortgage insurers
 to
 provide private mortgage insurance on eligible mortgages.(2)Required
 standardsThe standards required under paragraph (1) shall
 include—(A)the financial
 history and condition of the insurer;(B)the adequacy of
 the insurer's capital structure, including whether the insurer has
 sufficient
 capital to cover the first loss insurance obligations it assumes under
 this Act
 and that might be incurred in a period of economic stress, including, but
 not
 limited to, any period of economic stress that would result in a 30
 percent (or
 greater) national home price decline;(C)the general
 character and fitness of the management of the insurer, including
 compliance
 history with Federal and State laws;(D)the risk
 presented by such insurer to the Mortgage Insurance Fund;(E)the adequacy of
 insurance and fidelity coverage of the insurer;(F)a requirement
 that the insurer submit audited financial statements to the Director;
 and(G)any other
 standard the Corporation determines necessary or appropriate.(b)Application and
 approval(1)Application
 processThe Corporation shall establish an application process,
 in such form and manner and requiring such information as the Corporation
 may
 require, for the approval of private mortgage insurers under this
 section.(2)ApprovalThe
 Corporation may approve any application made pursuant to paragraph (1)
 provided
 the private mortgage insurer meets the standards adopted under subsection
 (a).(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of newly approved private mortgage insurers; and(B)maintain an
 updated list of approved private mortgage insurers on the website of the
 Corporation.(c)Review,
 suspension, and revocation of approved status(1)In
 generalThe Corporation may review the status of any approved
 private mortgage insurer if the Corporation is notified of or becomes
 aware of
 any violation by the insurer of this Act or the rules promulgated pursuant
 to
 this Act.(2)Suspension or
 Revocation(A)Corporation
 authorityIf the Corporation determines, in a review pursuant to
 paragraph (1), that an approved private mortgage insurer no longer meets
 the
 standards for approval, the Corporation may suspend or revoke the approved
 status of such insurer.(B)Rule of
 constructionThe suspension or revocation of an approved private
 mortgage insurer's approved status under this paragraph shall have no
 effect on
 the status of any covered security.(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of any approved private mortgage insurers who lost
 their approved status; and(B)maintain an
 updated list of such insurers on the website of the Corporation.(d)Appeals(1)In
 general(A)Appeals of
 denials of applicationA private mortgage insurer who submits an
 application under subsection (b)(1) to become an approved private mortgage
 insurer may appeal a decision of the Corporation denying such
 application.(B)Appeals of
 denials of benefits or suspensions of participationAn approved
 private mortgage insurer may appeal a decision of the Corporation
 suspending or
 revoking the approved status of such insurer.(2)Filing of
 appealAny insurer who files an appeal under paragraph (1) shall
 file the appeal with the Corporation not later than 90 days after the date
 on
 which the person receives notice of the decision of the Corporation being
 appealed.(3)Final
 determinationThe Corporation shall make a final determination
 with respect to an appeal under paragraph (1) not later than 180 days
 after the
 date on which the appeal is filed under paragraph (2).(e)Avoidance of
 conflicts of interestWith respect to any eligible mortgage
 collateralizing a covered security insured under this Act, an approved
 private
 mortgage insurer may not provide insurance both—(1)in satisfaction
 of the credit enhancement required under section 2(11)(C); and(2)to cover the
 first loss position of private market holders of such covered security.212.Approval of
 servicers(a)Standards for
 approval of servicers(1)In
 generalThe Corporation shall develop, adopt, and publish
 standards for the approval by the Corporation of servicers to administer
 eligible mortgages, including standards with respect to—(A)the collection
 and forwarding of principal and interest payments;(B)the maintenance
 of escrow accounts;(C)the collection
 and payment of taxes and insurance premiums;(D)the maintenance
 of records on eligible mortgages;(E)the establishment
 of foreclosure loss mitigation programs that seek to enhance investor
 value and
 prevent, to greatest extent possible, the need to trigger any claim on
 insurance offered by the Corporation pursuant to this title;(F)the advancement
 of principal and interest payments to investors in the case of a
 delinquency by
 a borrower until such time as the borrower has made all payments in
 arrears or
 the property securing the eligible mortgage has been liquidated; and(G)implementing the
 terms of any loss mitigation and foreclosure prevention as required by a
 uniform securitization agreement developed under section 223.(2)Additional
 required standardsThe standards required under paragraph (1)
 shall also include—(A)the financial
 history and condition of the servicer;(B)the general
 character and fitness of the management of the servicer, including
 compliance
 history with Federal and State laws;(C)the risk
 presented by such servicer to the Mortgage Insurance Fund;(D)a requirement
 that the servicer submit audited financial statements to the Corporation;
 and(E)any other
 standard the Corporation determines necessary or appropriate.(3)Coordination
 with other regulatorsIn developing the standards required under
 paragraph (1), the Corporation shall—(A)coordinate with
 the Bureau of Consumer Financial Protection; and(B)to the extent the
 Corporation determines practical and appropriate, shall coordinate with
 the
 other Federal banking agencies.(b)Application and
 approval(1)Application
 processThe Corporation shall establish an application
 process—(A)in such form and
 manner and requiring such information as the Corporation may require, for
 the
 approval of servicers under this section; and(B)that does not
 discriminate against or otherwise disadvantage small servicers.(2)ApprovalThe
 Corporation may approve any application made pursuant to paragraph (1)
 provided
 the servicer meets the standards adopted under subsection (a).(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of newly approved servicers; and(B)maintain an
 updated list of approved servicers on the website of the Corporation.(c)Review,
 suspension, and revocation of approved status(1)In
 generalThe Corporation may review the status of any approved
 servicer if the Corporation is notified of or becomes aware of any
 violation by
 the servicer of this Act or the rules promulgated pursuant to this Act,
 including any failure by an approved servicer to comply with terms set
 forth in
 any uniform securitization agreement developed under section 223.(2)Suspension or
 Revocation(A)Corporation
 authorityIf the Corporation determines, in a review pursuant to
 paragraph (1), that an approved servicer no longer meets the standards for
 approval, the Corporation may suspend or revoke the approved status of
 such
 servicer.(B)Rule of
 constructionThe suspension or revocation of an approved
 servicer's approved status under this paragraph shall have no effect on
 the
 status of any covered security.(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of any approved servicers who lost their approved
 status; and(B)maintain an
 updated list of such servicers on the website of the Corporation.(d)Appeals(1)In
 general(A)Appeals of
 denials of applicationA servicer who submits an application
 under subsection (b)(1) to become an approved servicer may appeal a
 decision of
 the Corporation denying such application.(B)Appeals of
 denials of benefits or suspensions of participationAn approved
 servicer may appeal a decision of the Corporation suspending or revoking
 the
 approved status of such servicer.(2)Filing of
 appealAny servicer who files an appeal under paragraph (1) shall
 file the appeal with the Corporation not later than 90 days after the date
 on
 which the person receives notice of the decision of the Corporation being
 appealed.(3)Final
 determinationThe Corporation shall make a final determination
 with respect to an appeal under paragraph (1) not later than 180 days
 after the
 date on which the appeal is filed under paragraph (2).(e)Petitions for
 change of servicer by private market holdersThe Corporation
 shall develop a process by which private market holders of the first loss
 position in a covered security may petition the Corporation for a change
 in
 approved servicers if the private market holders can demonstrate that
 their
 current approved servicer has failed to appropriately protect their
 investment,
 including by failing to meet any standard identified under subsection
 (a)(1).213.Approval of
 issuers(a)Standards for
 approval of issuers(1)In
 generalThe Corporation shall develop, adopt, and publish
 standards for the approval by the Corporation of issuers to issue covered
 securities, including standards with respect to an issuer's ability to—(A)aggregate
 eligible mortgage loans into pools;(B)securitize
 eligible mortgage loans for sale to private investors as a covered
 security;(C)transfer
 investment risk and credit to private market participants in accordance
 with
 the risk-sharing mechanisms developed by the Corporation under section
 202;(D)ensure equitable
 access to the secondary mortgage market for covered securities for all
 institutions regardless of size or geographic location;(E)create mechanisms
 for multi-lender pools; and(F)ensure that
 eligible mortgage loans that collateralize a covered security insured
 under
 this title are originated in compliance with the requirements of this
 Act.(2)Additional
 required standardsThe standards required under paragraph (1)
 shall also include—(A)the financial
 history and condition of the issuer;(B)the adequacy of
 the capital structure of the issuer;(C)the general
 character and fitness of the management of the issuer, including
 compliance
 history with Federal and State laws;(D)the risk
 presented by such issuer to the Mortgage Insurance Fund;(E)the adequacy of
 insurance and fidelity coverage of the issuer;(F)a requirement
 that the issuer submit audited financial statements to the Corporation;(G)the capacity of
 the issuer to secure first loss credit enhancement; and(H)any other
 standard the Corporation determines necessary or appropriate.(b)Application and
 approval(1)Application
 process(A)In
 generalThe Corporation shall establish an application process,
 in such form and manner and requiring such information as the Corporation
 may
 require, for the approval of issuers under this section.(B)Application process for insured depository
 institutionsIf an insured
 depository institution seeks to become an approved issuer under this
 section,
 such institution may only submit its application via a separately
 capitalized
 affiliate or subsidiary.(2)ApprovalThe
 Corporation—(A)may
 approve—(i)any
 application made pursuant to paragraph (1) provided the issuer meets the
 standards adopted under subsection (a); and(ii)any application
 to become an approved issuer made by the Federal Home Loan Bank System;
 and(B)shall ensure that
 at least one issuer approved to issue covered securities under this
 section is
 dedicated to serving the securitization needs of credit unions and
 community
 and mid-size banks without securitization capabilities.(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of newly approved issuers; and(B)maintain an
 updated list of approved issuers on the website of the Corporation.(c)Federal Home
 Loan Bank System(1)In
 generalIf the Federal Home Loan Bank System is approved by the
 Corporation to become an approved issuer under this section, the
 Corporation
 shall—(A)develop a process
 by which each individual Federal Home Loan Bank may elect not to engage or
 otherwise contribute to any activity practiced by the Federal Home Loan
 Bank
 System as an approved issuer;(B)ensure that,
 notwithstanding section 11 of the Federal Home Loan Bank Act (12 U.S.C.
 1431),
 any covered securities issued by the Federal Home Loan Bank System as an
 approved issuer are not issued as consolidated Federal Home Loan Bank
 debentures and are explicitly designated or otherwise treated as not being
 the
 joint and several obligations of any individual Federal Home Loan Bank
 that has
 made an election under subparagraph (A); and(C)ensure that in
 establishing the capital standards set forth under subsection (a)(2)(B)
 with
 respect to the Federal Home Loan Bank System, that such standards shall—(i)not be applicable
 to any individual Federal Home Loan Bank that has made an election under
 subparagraph (A);(ii)be
 based on the volume of eligible mortgage loan originations made by the
 Federal
 Home Loan Banks that have not made an election under subparagraph (A);
 and(iii)not adversely
 impact the traditional liquidity and advance business of the Federal Home
 Loan
 Banks or the Federal Home Loan Bank System.(2)Federal Home
 Loan Bank Act(A)AmendmentSection
 12 of the Federal Home Loan Bank Act (12 U.S.C. 1432) is amended by adding
 at
 the end the following:(c)Subject to such
 regulations as may be prescribed by the Corporation, one or more
 Federal Home
 Loan Banks may establish a subsidiary. Any subsidiary established
 under this
 subsection shall be subject to supervision by the Office of Federal
 Home Loan
 Bank Supervision of the Corporation and shall be restricted to
 engaging in
 activities related to being an approved issuer, as that term is
 defined under
 section 2(2) of the Housing Finance Reform
 and Taxpayer Protection Act of
 2013..
 (B)Effective
 dateThe amendment made by subparagraph (A) shall take effect on
 the transfer date.(d)Review,
 suspension, and revocation of approved status(1)In
 generalThe Corporation may review the status of any approved
 issuer if the Corporation is notified of or becomes aware of any violation
 by
 the issuer of this Act or the rules promulgated pursuant to this Act.(2)Suspension or
 Revocation(A)Corporation
 authorityIf the Corporation determines, in a review pursuant to
 paragraph (1), that an approved issuer no longer meets the standards for
 approval, the Corporation may suspend or revoke the approved status of
 such
 issuer.(B)Rule of
 constructionThe suspension or revocation of an approved issuer's
 approved status under this paragraph shall have no effect on the status of
 any
 covered security.(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of any approved issuers who lost their approved
 status;
 and(B)maintain an
 updated list of such issuers on the website of the Corporation.(e)Appeals(1)In
 general(A)Appeals of
 denials of applicationAn issuer who submits an application under
 subsection (b)(1) to become an approved issuer may appeal a decision of
 the
 Corporation denying such application.(B)Appeals of
 denials of benefits or suspensions of participationAn approved
 issuer may appeal a decision of the Corporation suspending or revoking the
 approved status of such issuer.(2)Filing of
 appealAny issuer who files an appeal under paragraph (1) shall
 file the appeal with the Corporation not later than 90 days after the date
 on
 which the person receives notice of the decision of the Corporation being
 appealed.(3)Final
 determinationThe Corporation shall make a final determination
 with respect to an appeal under paragraph (1) not later than 180 days
 after the
 date on which the appeal is filed under paragraph (2).(f)Limitation on
 market share(1)In
 generalThe Corporation may not enter into any contract,
 covenant, or other agreement with an approved issuer, if such contract,
 covenant, or agreement would provide the issuer a share of the covered
 security
 issuer market in excess of 15 percent of the total market, as such market
 is
 measured by the total outstanding principal balance at origination of
 eligible
 mortgages collateralizing covered securities issued in the previous
 12-month
 period.(2)ExceptionThe
 limitation set forth under paragraph (1) shall not apply to—(A)an approved
 issuer described under subsection (b)(2)(A)(ii);(B)the FMIC Mutual
 Securitization Company;(C)any approved
 issuer which securitizes only eligible mortgage loans originated by the
 issuer
 or an affiliate of the issuer; or(D)any approved
 issuer to which the Corporation grants a waiver pursuant to paragraph
 (3).(3)WaiverThe
 Corporation may, during the 3-year period beginning on the FMIC
 certification
 date, grant a waiver from the limitation set forth under paragraph (1) to
 an
 approved issuer if the Corporation determines that the number of approved
 issuers is insufficient, such that imposition of the limitation would
 adversely
 affect the availability of mortgage credit.(g)Limited
 authority To hold eligible mortgage loansAn approved issuer may,
 for a period not to exceed 6-months, hold—(1)eligible mortgage
 loans on the balance sheet of such issuer; and(2)the first loss
 position in a covered security for purposes of obtaining insurance under
 this
 title.214.Approval of
 bond guarantors(a)Standards for
 approval of bond guarantors(1)In
 generalThe Corporation shall develop, adopt, and publish
 standards for the approval by the Corporation of bond guarantors to
 guarantee
 the timely payment of principal and interest on securities collateralized
 by
 eligible mortgages and insured by the Corporation.(2)Required
 standardsThe standards required under paragraph (1) shall
 include—(A)the financial
 history and condition of the guarantor;(B)that the
 guarantor maintain a minimum capital level equal to not less than 10
 percent of
 the unpaid principal balance of outstanding mortgage-backed securities for
 which the guarantor is providing insurance, net of any transactions,
 including
 derivative transactions, repurchase agreements, reverse repurchase
 agreements,
 securities lending transactions, or securities borrowing transactions,
 that in
 the determination of the Corporation are used by the guarantor to hedge or
 mitigate against credit risk, provided that any such hedging transaction
 does
 not diminish the total amount of loss absorption capital in the secondary
 mortgage market that stands in front of the insurance provided by the
 Corporation under this title;(C)the general
 character and fitness of the management of the guarantor, including
 compliance
 history with Federal and State laws;(D)the risk
 presented by such guarantor to the Mortgage Insurance Fund;(E)the adequacy of
 insurance and fidelity coverage of the guarantor;(F)a requirement
 that the guarantor submit audited financial statements to the Director;(G)a requirement
 that the guarantor meet a minimum tangible common equity level, or other
 minimum capital threshold as the Corporation determines necessary; and(H)any other
 standard the Corporation determines necessary or appropriate.(b)Rule of
 constructionAny covered security issued by an approved issuer
 and insured by an approved bond guarantor shall be deemed to have
 satisfied the
 credit-risk sharing requirements under section 202(a)(1) with respect to
 the
 eligibility of that security to obtain insurance under this title.(c)Application and
 approval(1)Application
 process(A)In
 generalThe Corporation shall establish an application process,
 in such form and manner and requiring such information as the Corporation
 may
 require, for the approval of bond guarantors under this section.(B)Application process by insured depository
 institutionsIf an insured
 depository institution seeks to become an approved bond guarantor under
 this
 section, such institution may only submit its application via a separately
 capitalized affiliate or subsidiary.(2)ApprovalThe
 Corporation may approve any application made pursuant to paragraph (1)
 provided
 the bond guarantor meets the standards adopted under subsection (a).(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of newly approved bond guarantors; and(B)maintain an
 updated list of approved bond guarantors on the website of the
 Corporation.(d)Review,
 suspension, and revocation of approved status(1)In
 generalThe Corporation may review the status of any approved
 bond guarantor if the Corporation is notified of or becomes aware of any
 violation by the insurer of this Act or the rules promulgated pursuant to
 this
 Act.(2)Suspension or
 Revocation(A)Corporation
 authorityIf the Corporation determines, in a review pursuant to
 paragraph (1), that an approved bond guarantor no longer meets the
 standards
 for approval, the Corporation shall revoke the approved status of such
 guarantor.(B)rule of
 constructionThe revocation of an approved bond guarantor's
 approved status under this paragraph shall have no effect on the status of
 any
 covered security.(3)PublicationThe
 Corporation shall—(A)publish in the
 Federal Register a list of any approved bond guarantors who lost their
 approved
 status; and(B)maintain an
 updated list of such guarantors on the website of the Corporation.(e)Appeals(1)In
 general(A)Appeals of
 denials of applicationA bond guarantor who submits an
 application under subsection (c)(1) to become an approved bond guarantor
 may
 appeal a decision of the Corporation denying such application.(B)Appeals of
 denials of benefits or suspensions of participationAn approved
 bond guarantor may appeal a decision of the Corporation suspending or
 revoking
 the approved status of such guarantor.(2)Filing of
 appealAny bond guarantor who files an appeal under paragraph (1)
 shall file the appeal with the Corporation not later than 90 days after
 the
 date on which the person receives notice of the decision of the
 Corporation
 being appealed.(3)Final
 determinationThe Corporation shall make a final determination
 with respect to an appeal under paragraph (1) not later than 180 days
 after the
 date on which the appeal is filed under paragraph (2).(f)Limitations on
 approved bond guarantorsWith respect to any eligible mortgage
 collateralizing a covered security insured under this Act, an approved
 bond
 guarantor may not provide insurance—(1)in satisfaction
 of the credit enhancement required under section 2(11)(C) or as an
 approved
 private mortgage insurer pursuant to section 211; and(2)as an approved
 bond guarantor under this section.(g)Permission To
 carry out other activitiesNothing in this Act prohibits an
 approved bond guarantor from being or controlling an approved issuer,
 provided
 that each issuer and bond guarantor, independent of each other, meet the
 approval standards established by the Corporation under this title.215.Authority to
 establish FMIC Mutual Securitization Company(a)In
 generalThe Corporation shall establish a mutual corporation to
 be known as the FMIC Mutual Securitization Company.(b)PurposeThe
 purpose of the FMIC Mutual Securitization Company is to—(1)develop,
 securitize, sell, and otherwise meet the issuing needs of credit unions,
 community and mid-size banks, and non-depository mortgage originators with
 respect to covered securities; and(2)purchase from its
 member participants for cash, on a single loan basis, eligible mortgage
 loans
 to securitize in a covered security.(c)Sale of
 necessary technologyUpon the FMIC certification date, the
 enterprises shall sell to the FMIC Mutual Securitization Company any
 function,
 activity, infrastructure, property, including intellectual property,
 platform,
 or any other object or service of an enterprise that the Corporation
 determines
 necessary for the FMIC Mutual Securitization Company to carry out its
 activities and operations.(d)Designation as
 an approved issuerThe FMIC Mutual Securitization Company shall
 be an approved issuer for purposes of section 213.(e)EligibilityEligibility
 to participate as a member in the FMIC Mutual Securitization Company shall
 be
 limited to—(1)insured
 depository institutions having less than $15,000,000,000 in total
 consolidated
 assets at the time of the institution's initial participation in the
 Company;
 or(2)any
 non-depository mortgage originator having a minimum net worth of
 $2,500,000.(f)Governance(1)Recognition of
 important role of smaller institutionsThe Corporation shall take
 all necessary steps to ensure that the governance provisions of the FMIC
 Mutual
 Securitization Company reflect the important role in the mortgage market
 played
 by the small and mid-sized member participants of the FMIC Mutual
 Securitization Company.(2)Establishment
 of position of DirectorThere is established the position of the
 Director of the FMIC Mutual Securitization Company who shall be the head
 of the
 Company.(3)Board of
 Directors(A)In
 generalThe management of the FMIC Mutual Securitization Company
 shall be vested in a Board of Directors (hereafter referred to as the
 Mutual Board), which shall include representatives of member
 participants of the Company, including representatives of—(i)mortgage
 bankers;(ii)community banks;
 and(iii)credit
 unions.(B)Initial
 appointmentThe Corporation shall make initial appointments of
 the members of the Mutual Board. Each such initial appointment shall be
 for a
 term 1 year.(C)AppointmentsFollowing
 the initial 1-year appointment of the members of the Mutual Board, member
 participants in the FMIC Mutual Securitization Company shall elect the
 members
 of the Mutual Board from within the membership of the Company.(D)AdministrationThe
 Mutual Board shall administer the affairs of the FMIC Mutual
 Securitization
 Company fairly and impartially and without discrimination.(4)No preferences
 for sizeMember participants of the FMIC Mutual Securitization
 Company shall have equal voting rights on any matters before the Company,
 regardless of the size of the individual member participant.(g)Approval of
 member participants(1)In
 generalThe Mutual Board shall develop standards and procedures
 to approve the application of member participants in the FMIC Mutual
 Securitization Company.(2)Content of
 standardsThe standards required under paragraph (1) shall
 include standards relating to the safety and soundness of prospective
 member
 participants, including standards regarding the underwriting practices of
 such
 prospective members.(3)Coordination
 with other regulators(A)ConsultationIn
 approving any prospective member to become a member participant in the
 FMIC
 Mutual Securitization Company, the Mutual Board may consult and share
 information with the primary prudential regulator of the prospective
 member.(B)Privilege
 preservedInformation shared pursuant to subparagraph (A) shall
 not be construed as waiving, destroying, or otherwise affecting any
 privilege
 or confidential status that a prospective member may claim with respect to
 such
 information under Federal or State law as to any person or entity other
 than
 the Mutual Board or its primary prudential regulator.(C)Rule of
 constructionNo provision of this subsection may be construed as
 implying or establishing that—(i)any
 prospective member waives any privilege applicable to information that is
 shared or transferred under any circumstance to which this subsection does
 not
 apply; or(ii)any prospective
 would waive any privilege applicable to any information by submitting the
 information directly to its primary prudential regulator, but for this
 subsection.(h)Funding
 authority(1)Authority to
 establish membership feesThe Mutual Board shall have the
 authority to charge and collect fees, and may in its discretion increase
 or
 decrease such fee, on its member participants for membership in the FMIC
 Mutual
 Securitization Company, including to cover the costs of—(A)the initial
 capitalization of the Company;(B)the purchase of
 any function, activity, infrastructure, property, including intellectual
 property, platform, or any other object or service from an enterprise
 pursuant
 to subsection (c); and(C)the continued
 operation of the Company.(2)LimitationThe
 fees authorized under paragraph (1)—(A)shall be
 equitably assessed; and(B)may be based on
 the volume of eligible mortgages that the member participant sells to the
 FMIC
 Mutual Securitization Company.(i)Coordination of
 servicer approvalThe Mutual Board may coordinate with the
 Corporation to facilitate the application process for its member
 participants
 to become approved servicers of the Corporation pursuant to section 212.216.Additional
 authority relating to oversight of market participantsIn carrying out its authorities under this
 subtitle, the Corporation may, in its discretion, develop, publish, and
 adopt
 such other additional standards or requirements as the Corporation
 determines
 necessary to ensure—(1)competition among approved private mortgage
 insurers, servicers, issuers, and bond guarantors and other market
 participants
 in the secondary mortgage market;(2)competitive
 pricing among approved private mortgage insurers, servicers, issuers, and
 bond
 guarantors and other market participants in the secondary mortgage market;
 and(3)liquidity,
 transparency, and access to mortgage credit in the secondary mortgage
 market.217.Civil money
 penalties(a)AuthorityIn addition to any suspension or revocation
 of the approved status of an approved private mortgage insurer, servicer,
 issuer, or bond guarantor under this subtitle, the Corporation may, in its
 discretion, impose a civil money penalty on any such approved private
 mortgage
 insurer, servicer, issuer, or bond guarantor that has failed to comply
 with or
 otherwise violates—(1)any standard adopted by the Corporation
 pursuant to this subtitle; or(2)any other requirement or provision of this
 Act, or any order, condition, rule, or regulation issued pursuant to this
 Act,
 applicable to such private mortgage insurer, servicer, issuer, or bond
 guarantor, as the case may be.(b)Procedures(1)EstablishmentThe
 Corporation shall establish standards and procedures governing the
 imposition
 of civil money penalties under this section. Such standards and
 procedures—(A)shall provide for
 the Corporation to notify the approved private mortgage insurer, servicer,
 issuer, or bond guarantor, as the case may be, in writing of the
 determination
 of the Corporation to impose the penalty, which shall be made on the
 record;(B)shall provide for
 the imposition of a penalty only after the approved private mortgage
 insurer,
 servicer, issuer, or bond guarantor, as the case may be, has been given an
 opportunity for a hearing on the record; and(C)may provide for
 review by the Corporation of any determination or order, or interlocutory
 ruling, arising from a hearing.(2)Factors
 determining amount of penaltyIn determining the amount of a
 penalty under this section, the Corporation shall give consideration to
 factors
 including—(A)the gravity of
 the offense;(B)any history of
 prior offenses;(C)ability to pay
 the penalty;(D)injury to the
 public;(E)benefits
 received;(F)deterrence of
 future violations; and(G)such other
 factors as the Corporation may determine, by regulation, to be
 appropriate.(c)Action To
 collect penaltyIf the approved private mortgage insurer,
 servicer, issuer, or bond guarantor, as the case may be, fails to comply
 with
 an order by the Corporation imposing a civil money penalty under this
 section,
 the Corporation may bring an action in the United States District Court
 for the
 District of Columbia to obtain a monetary judgment against the approved
 private
 mortgage insurer, servicer, issuer, or bond guarantor, as the case may be,
 and
 such other relief as may be available. The monetary judgment may, in the
 court's discretion, include the attorneys' fees and other expenses
 incurred by
 the United States in connection with the action. In an action under this
 subsection, the validity and appropriateness of the order imposing the
 penalty
 shall not be subject to review.(d)SettlementsThe
 Corporation may compromise, modify, or remit any civil money penalty which
 may
 be, or has been, imposed under this section.(e)Deposit of
 PenaltiesThe Corporation shall use any civil money penalties
 collected under this section to help fund the Mortgage Insurance Fund
 established under section 203.218.Protection of
 privilege and other matters relating to disclosures by market
 participants(a)Information
 sharing and maintenance of privilegeThe Federal Deposit Insurance Act (12
 U.S.C. 1811 et seq.) is amended—(1)in section
 11(t)(2)(A) (12 U.S.C. 1821(t)(2)(A)), by inserting after clause (v) the
 following:(vii)The Federal
 Mortgage Insurance Corporation.;
 and(2)in section 18(x)
 (12 U.S.C. 1828(x))—(A)by inserting
 the Federal Mortgage Insurance Corporation, before any
 Federal banking agency each place that term appears; and(B)by striking
 such agency each place that term appears and inserting
 Corporation, agency.(b)Permissible
 consultation with Federal banking agencies(1)In
 generalPursuant to its authority under section 103(c), to
 facilitate the consultive process, the Corporation may share information
 with
 the Federal banking agencies, or any individual Federal banking agency, or
 any
 State bank supervisor, or foreign banking authority, on a one-time,
 regular, or
 periodic basis as determined by the Corporation regarding the capital,
 asset
 and liabilities, financial condition, risk management practices or any
 other
 practice of any approved private mortgage insurer, servicer, issuer, or
 bond
 guarantor.(2)Privilege
 preservedInformation shared by the Corporation pursuant to
 paragraph (1) shall not be construed as waiving, destroying, or otherwise
 affecting any privilege or confidential status that any approved private
 mortgage insurer, servicer, issuer, or bond guarantor or any other person
 may
 claim with respect to such information under Federal or State law as to
 any
 person or entity other than such agencies, agency, supervisor, or
 authority.(3)Rule of
 constructionNo provision of this subsection may be construed as
 implying or establishing that—(A)any person waives
 any privilege applicable to information that is shared or transferred
 under any
 circumstance to which this subsection does not apply; or(B)any person would
 waive any privilege applicable to any information by submitting the
 information
 directly to the Federal banking agencies, or any individual Federal
 banking
 agency, or any State bank supervisor, or foreign banking authority, but
 for
 this subsection.CTransparency in
 market operations221.Review of loan
 documents; disclosures(a)In
 generalThe Corporation
 shall, by rule—(1)require that approved issuers—(A)grant access to private market investors
 seeking to take the first loss position in a covered security to all—(i)documents relating to eligible mortgage
 loans collateralizing that covered security; and(ii)servicing reports of the approved servicer
 relating to such mortgages; and(B)disclose any
 other material information that a reasonable investor would want to know,
 and
 make no material omission of such information, relating to eligible
 mortgage
 loans collateralizing a covered security; and(2)establish the
 timing, frequency, and manner in which such access and disclosures are
 made.(b)Privacy
 protectionsIn prescribing the rules required under this section,
 the Corporation shall take into consideration issues of consumer privacy
 and
 all statutes, rules, and regulations related to privacy of consumer credit
 information and personally identifiable information. Such rules shall
 expressly
 prohibit the identification of specific borrowers.222.Investor
 immunityAny private market
 investor that has taken the first loss position in a covered security or
 that
 has otherwise invested in any covered security insured under this Act
 shall
 have immunity and protection from civil liability under Federal and State
 law,
 and no cause of action may be brought under Federal or State law against
 such
 investor, with respect to whether or not eligible mortgages that
 collateralize
 a covered security insured under this Act have complied with the
 requirements
 of this Act, including, but not limited to, with respect to any
 underwriting
 requirements applicable to such mortgage, any representations or
 warranties
 made by an approved issuer or an approved bond guarantor with respect to
 such
 mortgages, or whether or not the terms of any uniform securitization
 agreement
 have been met.223.Uniform
 securitization agreements(a)In
 generalThe Corporation shall develop, adopt, and publish
 standard uniform securitization agreements for covered securities which
 are
 insured under this Act.(b)Required
 contentThe standard uniform securitization agreements required
 to be developed under subsection (a) shall include terms relating to—(1)pooling and
 servicing, including the development of uniform standards and practices—(A)regarding
 remittance schedules and payment delays; and(B)permitting the
 transfer of servicing rights, if such transfer is determined to be in the
 best
 financial interest of the investor, as such interest is calculated on a
 net
 present value basis;(2)representations
 and warranties, including representations and warranties as to compliance
 or
 conformity with the requirements of this Act;(3)indemnification
 and remedies, including for the restitution or indemnification of the
 Corporation with respect to early term delinquencies of eligible mortgages
 collateralizing a covered security;(4)the
 qualification, responsibilities, and duties of trustees; and(5)any other terms
 or standards the Corporation determines necessary or appropriate.(c)Defining
 representation and warranty violationsIn developing the uniform
 securitization agreements required under subsection (a), the Corporation
 shall
 also develop, adopt, and publish clear and uniform standards that define
 and
 illustrate what actions, or omissions to act, comprise a violation of the
 representations and warranties clauses that are made a part of such
 agreements.(d)ConsultationThe
 Corporation shall work with industry groups, including servicers,
 originators,
 issuers, and mortgage investors to develop the uniform securitization
 agreements required under subsection (a).224.Uniform
 mortgage database(a)Uniform
 Mortgage DatabaseThe Corporation shall establish, operate, and
 maintain a database for the collection, public use, and dissemination of
 uniform loan level information on eligible mortgages relating to—(1)loan
 characteristics;(2)borrower
 information;(3)the property
 securing the eligible mortgages;(4)loan data
 required at the time of application for insurance from the Corporation
 under
 this title;(5)the quality and
 consistency of appraisal and collateral data on eligible mortgages;(6)industry-wide
 servicing data standards; and(7)such other data,
 datasets, information, facts, or measurements as the Corporation
 determines
 appropriate to improve and enhance loan quality and operational
 efficiencies
 within the secondary mortgage market.(b)ConsiderationsIn
 establishing the database required under subsection (a), the Corporation
 shall
 take into consideration, build upon, and adopt to the extent the
 Corporation
 determines appropriate, the existing data standards set forth under the
 Uniform
 Mortgage Data Program initiative established by the Federal Housing
 Finance
 Agency.(c)RegulationsThe
 Corporation shall, by regulation—(1)establish the
 manner and form by which any loan level information collected under
 subsection
 (a) may be accessed by the public, including whether or not to establish a
 fee
 for such access;(2)require that such
 loan level information be made available to the public in a uniform
 manner, in
 a form designed for ease and speed of access, ease and speed of
 downloading,
 and ease and speed of use; and(3)ensure the
 protection of any personally identifiable information contained in any
 information, or mix of information, collected and made available for
 public
 access.(d)Monthly
 updateThe database required under subsection (a) shall be
 updated not less frequently than once a month.225.Electronic
 registration of eligible mortgages(a)Establishment
 of electronic registration systemThe Corporation shall establish, operate,
 and maintain an electronic registry system for eligible mortgages that
 collateralize a covered security insured under this Act in order to
 automate,
 centralize, standardize, and improve the process of tracking changes in
 servicing rights and beneficial ownership interests in such eligible
 mortgages.(b)ConsiderationsIn
 establishing the electronic registry system required under subsection (a),
 the
 Corporation shall take into consideration, build upon, and adopt to the
 extent
 the Corporation determines appropriate, any existing efforts of the
 Federal
 Housing Finance Agency or expertise among the private sector to develop a
 sound, efficient system for document custody and electronic registration
 of
 mortgages, notes, titles, and liens.DFMIC
 Structure231.Office of
 Underwriting(a)EstablishmentThere
 is established within the Federal Mortgage Insurance Corporation an Office
 of
 Underwriting which shall be headed by the Deputy Director of Underwriting,
 who
 shall be appointed by the Board of Directors.(b)ResponsibilitiesThe
 Office of Underwriting shall ensure, through oversight, analysis, and
 examination, that eligible mortgages that collateralize a covered security
 insured under this Act comply with the requirements of this Act, including
 with
 respect to—(1)the submission of
 complete and accurate loan data on eligible mortgages;(2)the
 identification of ineligible mortgage loans;(3)assisting lenders
 with originating high-quality, lower-risk eligible mortgages; and(4)any other
 activity that the Director determines appropriate.232.Office of
 Securitization(a)EstablishmentThere is established within the Federal
 Mortgage Insurance Corporation an Office of Securitization which shall be
 headed by the Deputy Director of Securitization, who shall be appointed by
 the
 Board of Directors.(b)Responsibilities(1)In
 generalThe Office of Securitization shall—(A)oversee and
 supervise the common securitization platform developed by the business
 entity
 announced by the Federal Housing Finance Agency and established by the
 enterprises, including by requiring that the platform have system
 capabilities
 to permit the issuance of multi-lender covered securities;(B)ensure that
 credit unions, community and mid-size banks, and small non-depository
 lenders
 have equitable access to any such platform, including through the
 development
 and facilitation of options for multi-lender pools of eligible mortgages
 to be
 securitized and issued as covered securities through such platform; and(C)coordinate and
 consult with the Federal Home Loan Bank System to establish a
 securitization
 platform that addresses the needs of its members.(2)Rules for use
 of common securitization platform(A)In
 generalThe Corporation, acting through the Office of
 Securitization, may promulgate rules—(i)regarding the use
 of the common securitization platform described under paragraph (1)(A);
 and(ii)to permit
 securities other than covered securities to be issued through such
 platform for
 reasonable compensation.(B)Content of
 rulesAny rule that may be promulgated under subparagraph (A) may
 include a requirement that any security to be issued through the common
 securitization platform be subject to a uniform securitization agreement
 developed under section 223.(c)Establishment
 of database To provide notice to different classes of lien
 holdersThe Office of Securitization shall establish, operate,
 and maintain a database that—(1)can be accessed
 by any holder of a lien on an eligible mortgage;(2)identifies and
 tracks if a junior lien or any other subordinate lien has been issued on
 the
 property securing an eligible mortgage;(3)notifies, to the
 extent feasible, any senior or first lien holder of the existence of such
 junior or subordinate lien; and(4)informs—(A)the senior or
 first lien holder of the monthly performance of the junior or subordinate
 lien;
 and(B)the junior or
 subordinate lien holder of the monthly performance of the senior or first
 lien.233.Office of
 Federal Home Loan Bank Supervision(a)EstablishmentThere
 is established within the Federal Mortgage Insurance Corporation an Office
 of
 Federal Home Loan Bank Supervision which shall be headed by the Deputy
 Director
 of Federal Home Loan Bank Supervision, who shall be appointed by the Board
 of
 Directors.(b)ResponsibilitiesThe
 Office of Federal Home Loan Bank Supervision shall—(1)oversee,
 coordinate, and supervise the Federal Home Loan Banks and the Federal Home
 Loan
 Bank System, including the transition of all activities transferred to the
 Corporation pursuant to section 301; and(2)supervise any
 authorized subsidiary of one or more Federal Home Loan Banks that is
 approved
 as an approved issuer pursuant to section 213(b)(2)(A)(ii), including with
 respect to the initial capitalization of any such subsidiary.IIITransfer of
 powers, personnel, and property to FMIC from FHFA301.Powers and
 duties transferred(a)Federal Home
 Loan Bank functions transferred(1)Transfer of
 functionsThere are
 transferred to the Corporation all functions of the Federal Housing
 Finance
 Agency and the Director of the Federal Housing Finance Agency relating
 to—(A)the supervision of the Federal Home Loan
 Banks and the Federal Home Loan Bank System; and(B)all rulemaking authority of the Federal
 Housing Finance Agency and the Director of the Federal Housing Finance
 Agency
 relating to the Federal Home Loan Banks and the Federal Home Loan Bank
 System.(2)Powers,
 authorities, rights, and dutiesThe Corporation shall succeed to
 all powers, authorities, rights, and duties that were vested in the
 Federal
 Housing Finance Agency and the Director of the Federal Housing Finance
 Agency,
 including all conservatorship or receivership authorities, on the day
 before
 the transfer date in connection with the functions and authorities
 transferred
 under paragraph (1).(3)Effective
 dateThe transfer of functions under this paragraph shall take
 effect on the transfer date.(b)Continuation
 and coordination of certain actions(1)In
 generalAll regulations, orders, determinations, and resolutions
 described under paragraph (2) shall remain in effect according to the
 terms of
 such regulations, orders, determinations, and resolutions, and shall be
 enforceable by or against the Corporation until modified, terminated, set
 aside, or superseded in accordance with applicable law by the Corporation,
 any
 court of competent jurisdiction, or operation of law.(2)ApplicabilityA
 regulation, order, determination, or resolution is described under this
 subsection if it—(A)was issued, made,
 prescribed, or allowed to become effective by—(i)the
 Federal Housing Finance Agency; or(ii)a
 court of competent jurisdiction, and relates to functions transferred by
 this
 Act;(B)relates to the
 performance of functions that are transferred by this section; and(C)is in effect on
 the transfer date.(c)Disposition of
 affairsDuring the period preceding the transfer date, the
 Director of the Federal Housing Finance Agency, for the purpose of winding
 up
 the affairs of the Federal Housing Finance Agency in connection with the
 performance of functions that are transferred by this section—(1)shall manage the
 employees of such Agency and provide for the payment of the compensation
 and
 benefits of any such employees which accrue before the transfer date;
 and(2)may take any
 other action necessary for the purpose of winding up the affairs of the
 Office.(d)Use of property
 and services(1)PropertyThe
 Corporation may use the property and services of the Federal Housing
 Finance
 Agency to perform functions which have been transferred to the Corporation
 until such time as the Agency is abolished under section 303 to facilitate
 the
 orderly transfer of functions transferred under this section, any other
 provision of this Act, or any amendment made by this Act to any other
 provision
 of law.(2)Agency
 servicesAny agency, department, or other instrumentality of the
 United States, and any successor to any such agency, department, or
 instrumentality, that was providing supporting services to the Agency
 before
 the transfer date in connection with functions that are transferred to the
 Corporation 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 coordinate and facilitate a prompt and reasonable
 transition.(e)Continuation of
 servicesThe Corporation may use the services of employees and
 other personnel of the Federal Housing Finance Agency, on a reimbursable
 basis,
 to perform functions which have been transferred to the Corporation for
 such
 time as is reasonable to facilitate the orderly transfer of functions
 pursuant
 to this section, any other provision of this Act, or any amendment made by
 this
 Act to any other provision of law.(f)Savings
 provisions(1)Existing
 rights, duties, and obligations not affectedSubsection (a) and
 section 303 shall not affect the validity of any right, duty, or
 obligation of
 the United States, the Director of the Federal Housing Finance Agency, the
 Federal Housing Finance Agency, or any other person, that existed on the
 day
 before transfer date.(2)Continuation of
 suitsNo action or other proceeding commenced by or against the
 Director of the Federal Housing Finance Agency in connection with the
 functions
 that are transferred to the Corporation under this section shall abate by
 reason of the enactment of this Act, except that the Corporation shall be
 substituted for the Director of the Federal Housing Finance Agency as a
 party
 to any such action or proceeding.(g)Conforming
 amendments(1)Federal Home
 Loan Bank ActThe Federal
 Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended—(A)by striking
 the Director and inserting the Corporation each
 place that term appears;(B)by striking
 The Director and inserting The Corporation each
 place that term appears;(C)by striking
 Chairman of the Director of Governors and inserting
 Chairman of the Board of Governors each place that term
 appears;(D)by striking
 the Agency and inserting the Corporation each
 place that term appears;(E)in section 2, by
 striking paragraphs (11) and (12) and inserting the following:(11)CorporationThe
 term Corporation means the Federal Mortgage Insurance
 Corporation established under title I of the Housing Finance Reform and Taxpayer Protection Act of
 2013.;
 and(F)in section
 11(l)(5), in the header to such paragraph, by striking of the director.(2)Federal Housing
 Enterprises Financial Safety and Soundness ActSection 1316 of
 the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
 (12
 U.S.C. 4516) is amended—(A)in subsection
 (a)—(i)in
 the matter preceding paragraph (1), by striking the regulated
 entities and inserting each enterprise; and(ii)in
 paragraph (1), by striking and under section 20 of the Federal Home Loan
 Bank Act;(B)in subsection
 (b), by striking paragraph (2);(C)in subsection
 (c)—(i)by
 striking any regulated entity and inserting any
 enterprise;(ii)by
 striking the regulated entity and inserting the
 enterprise;(iii)by striking
 a regulated entity and inserting an enterprise
 each place that term appears;(iv)by
 striking such regulated entity and inserting such
 enterprise each place that term appears; and(v)by
 striking such entity and inserting such
 enterprise; and(D)in subsection
 (e)—(i)by
 striking each regulated entity and inserting each
 enterprise; and(ii)by
 striking such regulated entity and inserting such
 enterprise.(3)Right to
 Financial Privacy Act of 1978Section 1113(o) of the Right to
 Financial Privacy Act of 1978 (12 U.S.C. 3413(o)) is amended—(A)in the heading to
 the subsection, by Federal Housing Finance Agency and
 inserting Federal
 Mortgage Insurance Corporation;(B)by striking
 Federal Housing Finance Agency and inserting Federal
 Mortgage Insurance Corporation; and(C)by striking
 Federal Housing Finance Agency's and inserting Federal
 Mortgage Insurance Corporation's.(4)Effective
 dateThe amendments made by this subsection shall take effect on
 the transfer date.302.Transfer and
 rights of employees of the FHFA(a)TransferEach
 employee of the Federal Housing Finance Agency that is employed in
 connection
 with functions that are transferred to the Corporation under section 301
 shall
 be transferred to the Corporation for employment, not later than the
 transfer
 date, and such transfer shall be deemed a transfer of function for
 purposes of
 section 3503 of title 5, United States Code.(b)Status of
 employeesThe transfer of
 functions under this title, and the abolishment of the Federal Housing
 Finance
 Agency under section 303, may not be construed to affect the status of any
 transferred employee as an employee of an agency of the United States for
 purposes of any other provision of law.(c)Guaranteed
 positionsEach employee transferred 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.(d)Appointment
 authority for excepted employees(1)In
 generalIn the case of an employee occupying a position in the
 excepted service, any appointment authority established under law or by
 regulations of the Office of Personnel Management for filling such
 position
 shall be transferred, subject to paragraph (2).(2)Decline of
 transferThe Corporation may decline a transfer of authority
 under paragraph (1), to the extent that such authority relates to a
 position
 excepted from the competitive service because of its confidential,
 policymaking, policy-determining, or policy-advocating character.(e)ReorganizationIf
 the Corporation determines, after the end of the 1-year period beginning
 on the
 transfer date, that a reorganization of the combined workforce is
 required,
 that reorganization shall be deemed a major reorganization for purposes of
 affording affected employee retirement under section 8336(d)(2) or
 8414(b)(1)(B) of title 5, United States Code.(f)Employee
 benefit programs(1)In
 generalAny employee of the Federal Housing Finance Agency
 accepting employment with the Corporation as a result of a transfer under
 subsection (a) may retain, for 12 months after the date on which such
 transfer
 occurs, membership in any employee benefit program of the Agency or the
 Corporation, as applicable, including insurance, to which such employee
 belongs
 on the transfer date if—(A)the employee does
 not elect to give up the benefit or membership in the program; and(B)the benefit or
 program is continued by the Corporation.(2)Cost
 differential(A)In
 generalThe difference in the costs between the benefits which
 would have been provided by the Federal Housing Finance Agency and those
 provided by this section shall be paid by the Corporation.(B)Health
 InsuranceIf any employee elects to give up membership in a
 health insurance program or the health insurance program is not continued
 by
 the Corporation, the employee shall be permitted to select an alternate
 Federal
 health insurance program not later than 30 days after the date of such
 election
 or notice, without regard to any other regularly scheduled open season.303.Abolishment of
 FHFAEffective upon the FMIC
 certification date, the Federal Housing Finance Agency and the position of
 the
 Director of the Federal Housing Finance Agency are abolished.304.Transfer of
 property and facilitiesEffective upon the FMIC certification date
 all property of the Federal Housing Finance Agency shall transfer to the
 Corporation.305.Technical and
 conforming amendments(a)Effective
 dateThe amendments made by this section shall take effect on the
 date of enactment of this Act.(b)References in
 Federal lawOn and after the date of enactment of this Act, any
 reference in Federal law to the Director of the Federal Housing Finance
 Agency
 or the Federal Housing Finance Agency, in connection with any function of
 the
 Director of the Federal Housing Finance Agency or the Federal Housing
 Finance
 Agency transferred under section 301, shall be deemed a reference to the
 Chairperson of the Federal Mortgage Insurance Corporation or the Federal
 Mortgage Insurance Corporation, as appropriate and consistent with the
 amendments made by this Act.(c)Title 18,
 United States CodeTitle 18, United States Code, is
 amended—(1)in section 1905,
 by inserting or the Federal Mortgage Insurance Corporation after
 Federal Housing Finance Agency;(2)in section
 212(c)(2)—(A)in subparagraph
 (F), by striking ; and and inserting a semicolon;(B)in subparagraph
 (G), by striking the period at the end and inserting ; and;
 and(C)by adding at the
 end the following:(H)the Federal
 Mortgage Insurance
 Corporation.;(3)in section 657,
 by inserting the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency,;(4)in section 1006,
 by inserting the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency,; and(5)in section 1014,
 by inserting the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency,.(d)Flood Disaster
 Protection Act of 1973Section 102(b)(5) of the Flood Disaster
 Protection Act of 1973 (42 U.S.C. 4012a(b)(5)) is amended in subsection
 (b)(5),
 by inserting the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency,.(e)Title 5, United
 States CodeTitle 5, United States Code, is amended—(1)in section 5313,
 by inserting the following new item after the item relating to the
 Director of
 the Federal Housing Finance Agency:Director of
 the Federal Mortgage Insurance
 Corporation.;
 and(2)in section
 3132(a)(1)(D), by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency,.(f)Sarbanes-Oxley
 ActSection 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of
 2002 (15 U.S.C. 7215(b)(5)(B)(ii)(II)) is amended by inserting or the
 Chairperson of the Federal Mortgage Insurance Corporation after
 Director of the Federal Housing Finance Agency.(g)Federal Deposit
 Insurance ActThe Federal Deposit Insurance Act (12 U.S.C. 1811
 et seq.) is amended—(1)in section
 7(a)(2)(A), by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance Agency, each
 place that term appears;(2)in section
 8(e)(7)(A)(vi), by inserting , the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency;(3)in section
 11(t)(2)(A), by adding at the end the following:(viii)The Federal
 Mortgage Insurance Corporation.;
 and(4)in section 33(e),
 by inserting , the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency.(h)Riegle
 Community Development and Regulatory Improvement Act of
 1994Section 117(e) of the Riegle Community Development and
 Regulatory Improvement Act of 1994 (12 U.S.C. 4716(e)) is amended by
 inserting
 the Federal Mortgage Insurance Corporation, after Federal
 Housing Finance Agency,.(i)MAHRA Act of
 1997Section 517(b)(4) of the Multifamily Assisted Housing Reform
 and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by
 inserting
 the Federal Mortgage Insurance Corporation, after Federal
 Housing Finance Agency,.(j)Title 44,
 United States CodeSection 3502(5) of title 44, United States
 Code, is amended by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency,.(k)Access to local
 TV Act of 2000Section 1004(d)(2)(D)(iii) of the Launching Our
 Communities' Access to Local Television Act of 2000 (47 U.S.C.
 1103(d)(2)(D)(iii)) is amended by inserting or the Federal Mortgage
 Insurance Corporation, after Federal Housing Finance
 Agency.(l)FIRREAThe
 Financial Institutions Reform, Recovery, and Enhancement Act of 1989 is
 amended—(1)in section
 1216—(A)in subsection
 (a)—(i)in
 paragraph (2), by striking ; and and inserting a
 semicolon;(ii)in
 paragraph (3), by striking the period and inserting ; and;
 and(iii)by adding at
 the end the following:(4)the Federal
 Mortgage Insurance Corporation.;
 and(B)in subsection
 (c), by inserting the Federal Mortgage Insurance Corporation,
 before and the Federal Housing Finance Agency,;(2)in section
 402(e), by striking Federal Housing Finance Agency each place
 that term appears and inserting Federal Mortgage Insurance
 Corporation;(3)in section 1124,
 by inserting the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency, each place that term appears;
 and(4)in section
 1125(b), by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency,.(m)EESAThe
 Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 note) is
 amended—(1)in section
 104(b)—(A)in paragraph (4),
 by striking ; and and inserting a semicolon;(B)in paragraph (5),
 by striking the period and inserting ; and; and(C)by adding at the
 end the following:(6)the Federal
 Mortgage Insurance Corporation.;
 and(2)in section
 109(b), by inserting the Federal Mortgage Insurance Corporation,
 after Federal Housing Finance Agency,.(n)Dodd-Frank
 ActThe Dodd-Frank Wall Street Reform and Consumer Protection Act
 (Public Law 111–203) is amended—(1)in section
 342(g)(1)—(A)in subparagraph
 (H), by striking ; and and inserting a semicolon;(B)in subparagraph
 (I), by striking the period and inserting ; and; and(C)by adding at the
 end the following:(J)the Federal
 Mortgage Insurance Corporation.;
 (2)in section
 989E(a)(1), by adding at the end the following:(J)The Federal
 Mortgage Insurance Corporation.;
 and(3)in section
 1481(b), by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency,.(o)Housing and
 Urban-Rural Recovery ActSection 469 of the Housing and
 Urban-Rural Recovery Act of 1983 (12 U.S.C. 1701p–1) is amended, in the
 first
 sentence, by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency,.(p)Neighborhood
 Reinvestment Corporation ActSection 606(c)(3) of the
 Neighborhood Reinvestment Corporation Act (42 U.S.C. 8105(c)(3)) is
 amended by
 inserting , the Federal Mortgage Insurance Corporation, after
 Federal Housing Finance Agency.(q)Federal
 Insurance Office ActSection 313(r)(4) of title 31, United States
 Code, is amended by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance
 Agency,.(r)Commodity
 Exchange ActSection 1a(39)(E) of the Commodity Exchange Act (7
 U.S.C. 1a(39)(E)) is amended—(1)by striking
 a regulated entity and inserting an enterprise;
 and(2)by inserting
 before the period at the end the Federal Mortgage Insurance Corporation
 in the case of a swap dealer, major swap participant, security-based swap
 dealer, or major security-based swap participant that is a Federal Home
 Loan
 Bank.(s)Truth in
 Lending ActThe Truth in Lending Act (15 U.S.C. 1601 et seq.) is
 amended—(1)section
 129H(b)(4), by inserting the Federal Mortgage Insurance
 Corporation, after Federal Housing Finance Agency,;
 and(2)in section
 129E—(A)in subsection
 (g)(1), by inserting the Federal Mortgage Insurance Corporation,
 after Federal Housing Finance Agency,; and(B)in subsection
 (h), by inserting the Federal Mortgage Insurance Corporation,
 after Federal Housing Finance Agency,.(t)FFIECThe
 first sentence of section 1011 of the Federal Financial Institutions
 Examination Council Act of 1978 (12 U.S.C. 3310) is amended by inserting
 the Federal Mortgage Insurance Corporation, before and
 the Federal Housing Finance Agency.IVImproving
 transparency, accountability, and efficacy within affordable housing401.Affordable
 housing allocations(a)Fee and
 allocation of amountsSubject
 to subsection (b), and in addition to any fees for the provision of
 insurance
 established in accordance with title II, in each fiscal year the
 Corporation
 shall—(1)charge and
 collect a fee in an amount equal to not less than 5 basis points and not
 more
 than 10 basis points for each dollar of the outstanding principal balance
 of
 eligible mortgages collateralizing covered securities for which insurance
 is
 being provided under title II; and(2)allocate or
 otherwise transfer—(A)80 percent of
 such fee amounts to the Secretary of Housing and Urban Development to fund
 the
 Housing Trust Fund established under section 1338 of the Federal Housing
 Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568);
 and(B)20 percent of
 such fee amounts to the Secretary of the Treasury to fund the Capital
 Magnet
 Fund established under section 1339 of the Federal Housing Enterprises
 Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569).(b)Suspension of
 contributionsThe Corporation may temporarily suspend allocations
 under subsection (a) upon a finding by the Corporation that such
 allocations
 are contributing, or would contribute, to the financial instability of the
 Mortgage Insurance Fund established under section 203.402.Housing Trust
 FundSection 1338 of the
 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
 U.S.C. 4568) is amended—(1)in subsection (a), by striking by
 the enterprises under section 1337 and inserting pursuant to
 section 401 of the Housing Finance Reform and
 Taxpayer Protection Act of 2013;(2)by repealing subsection (b); and(3)in subsection
 (c)—(A)in paragraph (1),
 by striking Except as provided in subsection (b), the and
 inserting The;(B)in paragraph
 (4)(B), by striking other than fiscal year 2009;(C)in paragraph
 (7)—(i)in
 subparagraph (A), by striking ; and and inserting a
 semicolon;(ii)in
 subparagraph (B)(iv)—(I)by striking
 section 132 and inserting section 1132;
 and(II)by striking the
 period at the end and inserting a semicolon; and(iii)by adding at
 the end the following:(C)grants and loans,
 including through the use of pilot programs of sufficient scale, to
 support the
 research and development of sustainable homeownership and
 affordable rental
 programs, provided that such grant or loan amounts are used only
 for the
 benefit of families whose income does not exceed 120 percent of the
 area median
 income as determined by the Secretary, with adjustments for family
 size;
 and(D)provide limited
 credit enhancement, and other forms of credit support, for product
 and services
 that—(i)will increase the
 rate of sustainable homeownership and affordable rental by
 individuals or
 families whose income does not exceed 120 percent of the area
 median income as
 determined by the Secretary, with adjustments for family size; and(ii)might not
 otherwise be offered or supported by a pilot program of sufficient
 scale to
 determine the viability of such products and services in the
 private
 market.;
 and(D)in paragraph
 (10)—(i)by
 amending subparagraph (A) to read as follows:(A)Ensuring
 efficient use of grant amounts(i)Use for certain
 eligible activitiesIn each fiscal year, of the aggregate amount
 allocated to a State or State designated entity under this
 subsection—(I)35 percent shall
 be used for activities under subparagraph (A) of paragraph (7);(II)5 percent shall
 be used for activities under subparagraph (B) of paragraph (7); and(III)60 percent
 shall be used for activities under subparagraphs (C) and (D) of
 paragraph
 (7).(ii)Ensuring
 benefits for rural communities(I)In
 generalIn each fiscal year, of the aggregate amount allocated to
 a State or State designated entity under this subsection, the State
 or State
 designated entity shall ensure that, at a minimum, such amounts are
 distributed
 for the benefit of nonentitlement areas in that State in the same
 proportion
 that the total amount of nonentitlement areas in that State bears
 to the total
 amount of all areas in that State.(II)Targeted
 outreach to smaller communitiesIn carrying out the requirement
 under subclause (I), each State or State designated entity shall in
 distributing amounts allocated to that State or State designated
 entity give
 priority to nonentitlement areas with a population of less than
 20,000.(III)Definition of
 nonentitlement areaFor purposes of this clause, the term
 nonentitlement area has the same meaning given that term under
 section 102(a)(7) of the Housing and Community Development Act of
 1974 (42
 U.S.C. 5302(a)(7)).;
 and(ii)by
 striking subparagraph (E).403.Capital Magnet
 FundSection 1339 of the
 Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
 U.S.C. 4569) is amended—(1)in subsection (b)(1), by striking
 pursuant to section 1337 and inserting pursuant to
 section 401 of the Housing Finance Reform and
 Taxpayer Protection Act of 2013; and(2)in subsection
 (h), by striking paragraph (7).404.Additional
 taxpayer protections(a)Ensuring
 benefits support citizens and lawful permanent residentsThe Secretary of Housing and Urban
 Development and the Secretary of the Treasury, respectively, shall ensure
 that
 grant amounts allocated to covered grantees, allocated by covered grantees
 to
 eligible recipients, or allocated to individuals by such eligible
 recipients
 are used for the benefit of only lawful permanent residents and citizens
 of the
 United States in carrying out the activities of—(1)the Housing Trust Fund; and(2)the Capital
 Magnet Fund.(b)Not To be used
 for political activitiesConsistent with the existing
 requirements under sections 1338(c)(10)(D) and section 1339(h)(5) of the
 Federal Housing Enterprises Financial Safety and Soundness Act of 1992,
 the
 Secretary of Housing and Urban Development and the Secretary of the
 Treasury,
 respectively, shall ensure that grant amounts allocated by covered
 grantees to
 eligible recipients or allocated to individuals by such eligible
 recipients are
 not used for—(1)political
 activities;(2)advocacy;(3)lobbying, whether
 directly or through other parties;(4)influencing the
 selection, nomination, election, or appointment of one or more candidates
 to
 any Federal, State or local office;(5)personal
 counseling services;(6)travel expenses;
 and(7)preparing or
 providing advice on tax returns.(c)Penalties(1)Civil money
 penaltyIf an eligible recipient or any other individual in
 receipt of grant amounts described by this section violates any provision
 of
 subsection (a) or (b), the Secretary of Housing and Urban Development or
 the
 Secretary of the Treasury, as the case may be, may impose a civil penalty
 on
 such recipient or individual, as the case may be, of not more than
 $1,000,000
 for each violation.(2)Criminal
 penaltiesWhoever, being subject to the provisions of subsection
 (a) or (b), knowingly participates, directly or indirectly, in any manner
 in
 conduct that results in a violation of such provisions shall,
 notwithstanding
 section 3571 of title 18, United States Code, be fined not more than
 $1,000,000
 for each violation, imprisoned for not more than 5 years, or both.(3)Rule of
 constructionThe penalties imposed under paragraphs (1) or (2)
 shall be in addition to any other available civil remedy or any other
 available
 criminal penalty and may be imposed whether or not the Secretary of
 Housing and
 Urban Development or the Secretary of the Treasury, as the case may be,
 imposes
 other administrative sanctions.(d)DefinitionAs
 used in this section—(1)the term
 covered grantee means—(A)for purposes of
 the Housing Trust Fund, a State or State designated entity; and(B)for purposes of
 the Capital Magnet Fund, an eligible grantee as described under section
 1339(e)
 of the Federal Housing Enterprises Financial Safety and Soundness Act of
 1992;(2)the term
 eligible recipient means—(A)for purposes of
 the Housing Trust Fund, a recipient as described under section 1338(c)(9)
 of
 the Federal Housing Enterprises Financial Safety and Soundness Act of
 1992t;
 and(B)for purposes of
 the Capital Magnet Fund, a recipient of assistance from the Capital Magnet
 Fund;(3)the term
 Capital Magnet Fund means the Capital Magnet Fund established
 under section 1339 of the Federal Housing Enterprises Financial Safety and
 Soundness Act of 1992 (12 U.S.C. 4569); and(4)the term
 Housing Trust Fund means the Housing Trust Fund established
 under section 1338 of the Federal Housing Enterprises Financial Safety and
 Soundness Act of 1992 (12 U.S.C. 4568).VWind
 Down of Fannie Mae and Freddie Mac501.Repeal of GSE
 charters(a)Fannie
 MaeEffective on the FMIC certification date, the charter of the
 Federal National Mortgage Association is repealed and the Federal National
 Mortgage Association shall have no authority to conduct new business under
 such
 charter, except that the provisions of such charter in effect immediately
 before such repeal shall continue to apply with respect to the rights and
 obligations of any holders of—(1)outstanding debt
 obligations of the Federal National Mortgage Association, including any—(A)bonds,
 debentures, notes, or other similar instruments;(B)capital lease
 obligations; or(C)obligations in
 respect of letters of credit, bankers' acceptances, or other similar
 instruments; or(2)mortgage-backed
 securities guaranteed by the Federal National Mortgage Association.(b)Freddie
 MacEffective on the FMIC certification date, the charter of the
 Federal Home Loan Mortgage Corporation is repealed and the Federal Home
 Loan
 Mortgage Corporation shall have no authority to conduct new business under
 such
 charter, except that the provisions of such charter in effect immediately
 before such repeal shall continue to apply with respect to the rights and
 obligations of any holders of—(1)outstanding debt
 obligations of the Federal Home Loan Mortgage Corporation, including
 any—(A)bonds,
 debentures, notes, or other similar instruments;(B)capital lease
 obligations; or(C)obligations in
 respect of letters of credit, bankers' acceptances, or other similar
 instruments; or(2)mortgage-backed
 securities guaranteed by the Federal Home Loan Mortgage Corporation.(c)Existing
 guarantee obligations(1)Explicit
 guaranteeThe full faith and credit of the United States is
 pledged to the payment of all amounts which may be required to be paid
 under
 any obligation described under subsections (a) and (b).(2)Continued
 dividend paymentsNotwithstanding section 502 or any other
 provision of law, and subject to section 601, provision 2(a) (relating to
 Dividend Payment Dates and Dividend Periods) and provision 2(c) (relating
 to
 Dividend Rates and Dividend Amount) of the Senior Preferred Stock Purchase
 Agreement, or any provision of any certificate in connection with such
 Agreement creating or designating the terms, powers, preferences,
 privileges,
 limitations, or any other conditions of the Variable Liquidation
 Preference
 Senior Preferred Stock of an enterprise issued pursuant to such
 Agreement—(A)shall not be
 amended, restated, or otherwise changed to reduce the rate or amount of
 dividends in effect pursuant to such Agreement as of the Third Amendment
 to
 such Agreement dated August 17, 2012, except that any amendment to such
 Agreement to facilitate the sale of assets of the enterprises to
 facilitate
 compliance with the provisions of section 502(b) shall be permitted; and(B)shall remain in
 effect until the guarantee obligations described under subsections (a)(2)
 and
 (b)(2) are fully extinguished.(3)ApplicabilityNotwithstanding
 section 502, all guarantee fee amounts derived from the single-family
 mortgage
 guarantee business of the enterprises in existence as of the FMIC
 certification
 date shall be subject to the terms of the Senior Preferred Stock Purchase
 Agreement.(d)Federal Safety
 and Soundness Act(1)In
 generalThe Federal Housing Enterprises Financial Safety and
 Soundness Act of 1992 (12 U.S.C. 4501 et seq.) is amended—(A)in section
 1303—(i)in paragraph (2),
 by striking 'Federal Housing Finance Agency and inserting
 Federal Mortgage Insurance Corporation;(ii)in paragraph
 (3), by striking means and all that follows through the period
 at the end, and inserting means the Federal Home Loan Bank
 Act.;(iii)by repealing
 paragraph (4); and(iv)in paragraph
 (9), by striking Director of the Federal Housing Finance Agency
 and inserting Board of Directors of the Federal Mortgage Insurance
 Corporation;(B)by repealing
 section 1313A; and(C)by repealing
 section 1317(d).(2)Effective
 dateThe amendments made by paragraph (1) shall take effect on
 the FMIC certification date.502.Wind
 down(a)Wind
 down(1)Authority of
 FHFABeginning on the date of
 enactment of this Act and ending on the FMIC certification date, the
 Director
 of the Federal Housing Finance Agency, in consultation with the
 Corporation and
 the Secretary of the Treasury, shall take such action, and may prescribe
 such
 regulations and procedures, as may be necessary to wind down the
 operations of
 the enterprises in an orderly manner that complies with the requirements
 of
 this Act and any amendments made by this Act.(2)LimitationNotwithstanding
 any authority granted to the Director of the Federal Housing Finance
 Agency
 under paragraph (1), the sale, transfer, exchange, or other disposition of
 any
 asset subject to the wind down required under this section shall be
 prohibited,
 if the Corporation—(A)in its discretion
 determines that such sale, transfer, exchange, or disposition would
 materially
 interfere with the ability of the Corporation to carry out the
 requirements of
 this Act; and(B)notifies, in
 writing, the Director of the Federal Housing Finance Agency within 14 days
 of
 such determination.(3)Rule of
 constructionNotwithstanding any authority granted to the
 Director of the Federal Housing Finance Agency under paragraph (1), the
 Director of the Federal Housing Finance Agency—(A)shall have no
 authority to sell, transfer, exchange, or otherwise dispose of any
 guarantee
 obligations described under subsections (a)(2) and (b)(2) of section 501;
 and(B)shall have no
 rights, claims, or title to, nor any authority to sell, transfer,
 exchange, or
 otherwise dispose of, guarantee fee amounts derived from the single-family
 mortgage guarantee business of the enterprises in existence as of the FMIC
 certification date.(b)Division of
 assets and liabilities; authority To establish holding corporation and
 dissolution trust fundThe action and procedures required under
 subsection (a)—(1)shall include the
 establishment and execution of plans to provide for an equitable division,
 distribution, and liquidation of the assets and liabilities of an
 enterprise,
 including any infrastructure, property, including intellectual property,
 platforms, or any other thing or object of value, provided such plan
 complies
 with the requirements of this Act and any amendments made by this Act;
 and(2)may provide for establishment of—(A)a holding
 corporation organized under the laws of any State of the United States or
 the
 District of Columbia for the purpose of winding down an enterprise; and(B)one or more trusts
 to which to transfer—(i)outstanding debt
 obligations of an enterprise; or(ii)outstanding
 mortgages held for the purpose of collateralizing mortgage-backed
 securities
 guaranteed by an enterprise.(c)Recoupment by
 senior preferred shareholders(1)In
 generalSubject to the requirements of this Act, any proceeds
 from the wind down of an enterprise shall be paid first to the senior
 preferred
 shareholders of each such enterprise, then to the preferred shareholders
 of
 each such enterprise, and then to the common shareholders of each such
 enterprise.(2)Joint
 determinationThe amount of any proceeds to be paid pursuant to
 paragraph (1) shall be jointly determined by the Director of the Federal
 Housing Finance Agency, the Corporation, and the Secretary of the
 Treasury.(3)Maximum return
 to shareholdersThe wind down of each enterprise required under
 this section shall be managed by the Director of the Federal Housing
 Finance
 Agency, in consultation with the Corporation and the Secretary of the
 Treasury,
 to obtain resolutions that maximize the return for the senior preferred
 shareholders under paragraph (1), to the extent that such resolutions—(A)are consistent
 with the goal of supporting a sound, stable, and liquid housing market;(B)are consistent
 with applicable Federal and State law;(C)comply with the
 requirements of this Act and any amendments made by this Act; and(D)protect the
 taxpayer.(4)Sale of certain
 assets as a going concernExcept as provided in section 601 or
 elsewhere as required in this Act, if the Director of the Federal Housing
 Finance Agency, in consultation with the Corporation and the Secretary of
 the
 Treasury, determines that the sale of any line of business, or any
 function,
 activity, or service of an enterprise as a going concern will maximize the
 return for the senior preferred shareholders as required under paragraph
 (3),
 the Director may conduct such sale, provided that—(A)under no
 circumstance, shall such sale transfer, convey, or authorize, or be deemed
 to
 transfer, convey, or authorize, any guarantee or Federal support,
 assistance,
 or backing, implicit or explicit, related to any such line of business,
 function, activity, or service; and(B)such sale does
 not impede or otherwise interfere with the ability of the Federal Mortgage
 Insurance Corporation to carry out the functions and requirements of this
 Act.(5)Rule of
 constructionFor purposes of this subsection, the term
 proceeds does not include any guarantee fee amounts derived from
 the single-family mortgage guarantee business of the enterprises in
 existence
 as of the FMIC certification date.503.Aligning
 purpose of conservatorship with FMIC(a)Power as
 conservatorSection
 1367(b)(2)(D) of the Federal Housing Enterprises Financial Safety and
 Soundness
 Act of 1992 (12 U.S.C. 4617(b)(2)(D)) is amended to read as follows:(D)Power as
 conservatorAfter the date of enactment of the
 Housing Finance Reform and Taxpayer
 Protection Act of 2013 the Agency shall, as conservator, take
 such actions as are necessary—(i)to ensure the
 efficient, effective, and expeditious wind down of the enterprises;(ii)to manage the
 affairs, assets, and obligations of the enterprises and to operate
 the
 enterprises in compliance with the requirements of the
 Housing Finance Reform and Taxpayer
 Protection Act of 2013;(iii)to assist the
 Federal Mortgage Insurance Corporation, in a consultative capacity,
 in carrying
 out the requirements under the Housing
 Finance Reform and Taxpayer Protection Act of 2013; and(iv)to maintain
 liquidity and stability in the secondary mortgage market until such
 as time as
 the charters of the enterprises are revoked pursuant to title V of
 such
 Act..(b)Rule of
 constructionNothing in this Act, or any amendments made by this
 Act, except as may be explicitly provided for in this Act, or any
 amendment
 made by this Act, shall be deemed to alter the powers, authorities,
 rights, and
 duties that are vested in the Federal Housing Finance Agency and the
 Director
 of the Federal Housing Finance Agency with respect to its supervision and
 regulation of the enterprises.504.Conforming
 loan limits(a)In
 generalBeginning on the date
 of enactment of this Act, the limitations governing the maximum original
 principal obligation of conventional mortgages that may be purchased by
 the
 Federal National Mortgage Association and the Federal Home Loan Mortgage
 Corporation, referred to in section 302(b)(2) of the Federal National
 Mortgage
 Association Charter Act (12 U.S.C. 1717(b)(2)) and section 305(a)(2) of
 the
 Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)),
 respectively, shall not exceed $417,000 for a mortgage secured by a
 single-family residence, $533,850 for a mortgage secured by a 2-family
 residence, $645,300 for a mortgage secured by a 3-family residence, and
 $801,950 for a mortgage secured by a 4-family residence, except that such
 maximum limitations shall be adjusted effective January 1 of each year
 beginning after the date of enactment of this Act, subject to the
 limitations
 in this paragraph. Each adjustment shall be made by adding to each such
 amount
 (as it may have been previously adjusted) a percentage thereof equal to
 the
 percentage increase, during the most recent 12-month or 4-quarter period
 ending
 before the time of determining such annual adjustment, in the housing
 price
 index maintained pursuant to section 1322 of the Federal Housing
 Enterprises
 Financial Safety and Soundness Act of 1992 (12 U.S.C. 4542). If the change
 in
 such house price index during the most recent 12-month or 4-quarter period
 ending before the time of determining such annual adjustment is a
 decrease,
 then no adjustment shall be made for the next year, and the next
 adjustment
 shall take into account prior declines in the house price index, so that
 any
 adjustment shall reflect the net change in the house price index since the
 last
 adjustment. Declines in the house price index shall be accumulated and
 then
 reduce increases until subsequent increases exceed prior declines.(b)Special
 exception for Alaska, Hawaii, Guam, and USVIThe limitations set
 forth under subsection (a) shall be increased by not to exceed 50 per
 centum
 with respect to properties located in Alaska, Guam, Hawaii, and the Virgin
 Islands.(c)High-Cost area
 limitThe limitations set forth under subsection (a) shall also
 be increased, with respect to properties of a particular size located in
 any
 area for which 115 percent of the median house price for such size
 residence
 exceeds the limitation under subsection (a) for such size residence—(1)for the first
 year following the date of enactment of this Act, to the lesser of 150
 percent
 of such limitation for such size residence or the amount that is equal to
 115
 percent of the median house price in such area for such size residence;(2)for the second
 year following the date of enactment of this Act, to the lesser of 145
 percent
 of such limitation for such size residence or the amount that is equal to
 115
 percent of the median house price in such area for such size residence;(3)for the third
 year following the date of enactment of this Act, to the lesser of 135
 percent
 of such limitation for such size residence or the amount that is equal to
 115
 percent of the median house price in such area for such size residence;(4)for the fourth
 year following the date of enactment of this Act, to the lesser of 130
 percent
 of such limitation for such size residence or the amount that is equal to
 115
 percent of the median house price in such area for such size residence;
 and(5)for the fifth
 year following the date of enactment of this Act, and each year
 thereafter, to
 the lesser of 125 percent of such limitation for such size residence or
 the
 amount that is equal to 115 percent of the median house price in such area
 for
 such size residence.505.Portfolio
 reduction(a)Graduated
 reduction(1)In
 generalEach enterprise shall not own, as of any applicable date,
 mortgage assets in excess of—(A)as of December
 31, 2013, $552,500,000,000; and(B)on December 31 of
 each year thereafter until the FMIC certification date, 85 percent of the
 aggregate amount of the mortgage assets that the enterprise was permitted
 to
 own as of December 31 of the immediately preceding calendar year.(2)Retained
 portfolio to facilitate orderly wind downOn December 31 of the
 year in which the FMIC certification date occurs, the Corporation shall
 establish an allowable amount of enterprise owned mortgage assets in an
 amount
 equal to the amount necessary to facilitate—(A)the orderly wind
 down of the enterprises; and(B)appropriate loss
 mitigation on any legacy guarantees of the enterprises.(b)Mortgage assets
 definedFor purposes of this section, the term mortgage
 assets means, with respect to an enterprise, assets of such enterprise
 consisting of mortgages, mortgage loans, mortgage-related securities,
 participation certificates, mortgage-backed commercial paper, obligations
 of
 real estate mortgage investment conduits and similar assets, in each case
 to
 the extent such assets would appear on the balance sheet of such
 enterprise in
 accordance with generally accepted accounting principles in effect in the
 United States as of September 7, 2008 (as set forth in the opinions and
 pronouncements of the Accounting Principles Board and the American
 Institute of
 Certified Public Accountants and statements and pronouncements of the
 Financial
 Accounting Standards Board from time to time; and without giving any
 effect to
 any change that may be made after September 7, 2008, in respect of
 Statement of
 Financial Accounting Standards No. 140 or any similar accounting
 standard).506.Repeal of
 mandatory housing goals(a)Repeal of
 housing goalsThe Federal
 Housing Enterprises Financial Safety and Soundness Act of 1992 is amended
 by
 striking sections 1331 through 1336 (12 U.S.C. 4561–6).(b)Conforming
 amendmentsThe Federal
 Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
 4501
 et seq.) is amended—(1)in section
 1303(28), by striking , and, for the purposes and all that
 follows through designated disaster areas;(2)in section
 1324(b)(1)(A), by striking clauses (i), (ii), and (iv);(3)in section
 1341—(A)in subsection
 (a)—(i)in
 paragraph (1), by inserting or after the semicolon at the
 end;(ii)in
 paragraph (2), by striking the semicolon at the end and inserting a
 period;
 and(iii)by
 striking paragraphs (3) and (4); and(B)in subsection
 (b)(2)—(i)in subparagraph (A), by inserting
 or after the semicolon at the end;(ii)by
 striking subparagraphs (B) and (C); and(iii)by
 redesignating subparagraph (D) as subparagraph (B);(4)in section
 1345(a)—(A)in paragraph (1),
 by inserting or after the semicolon at the end;(B)in paragraph (2),
 by striking the semicolon at the end and inserting a period; and(C)by striking
 paragraphs (3) and (4); and(5)in section
 1371(a)(2), by striking with any housing goal established under subpart
 B of part 2 of subtitle A of this title, with section 1336 or 1337 of this
 title,.VIImprovements to
 functioning of housing market601.Continuation
 of multifamily business of the enterprises(a)In
 generalNotwithstanding any provision of title V, or any other
 provision of law, effective on the FMIC certification date, all functions,
 activities, infrastructure, property, including intellectual property,
 platforms, or any other object or service of an enterprise relating to the
 maintenance and operation of the multifamily guarantee business of an
 enterprise shall be transferred, without cost, to the Corporation.(b)Authority of
 DirectorThe Corporation is authorized, upon such terms and
 conditions as it may deem appropriate, to guarantee the timely payment of
 principal of and interest, on any mortgage on multifamily housing
 purchased by
 the Corporation pursuant to the transfer of an enterprise's multifamily
 guarantee business under subsection (a).(c)Limitation on
 ongoing operation of multifamily businessIn carrying out the
 multifamily guarantee business of an enterprise transferred pursuant to
 subsection (a), the Corporation shall ensure that any such business
 continues
 to operate, as applicable, consistent with—(1)the Delegated
 Underwriting and Servicing Lender Program established by the Federal
 National
 Mortgage Association; and(2)the Program Plus
 Lender Program established by the Federal Home Loan Mortgage Corporation,
 especially the Series K Structured Pass-Through Certificates offered by
 the
 enterprise.(d)Explicit
 guaranteeThe full faith and credit of the United States is
 pledged to the payment of all amounts which may be required to be paid
 under
 any guaranty—(1)issued by the
 Corporation pursuant to this subsection; and(2)obligation
 assumed by the Corporation pursuant to the transfer of an enterprise's
 multifamily guarantee business under subsection (a).(e)Guarantee
 fee(1)In
 generalThe Corporation shall collect a reasonable fee for any
 guaranty under this subsection and shall make such charges as it may
 determine
 to be reasonable for the analysis of any trust or other security
 arrangement
 proposed by an issuer of a security backed by multifamily mortgages
 guaranteed
 under this section.(2)Deposit into
 Mortgage Insurance FundAny guarantee fee amounts collected under
 this subsection shall be deposited in the Mortgage Insurance Fund.602.Multiple
 lender issuesWith respect to
 the dwelling of a borrower that serves as security for an eligible
 mortgage, if
 the borrower enters into any credit transaction that would result in the
 creation of a new mortgage or other lien on such dwelling where the
 loan-to-value ratio of such credit transaction amount is 80 percent or
 more,
 the creditor of such new mortgage or other lien shall seek and obtain the
 approval of the creditor of the senior eligible mortgage loan before any
 such
 credit transaction becomes valid and enforceable.603.GAO report on
 full privatization of secondary mortgage market(a)GAO
 reportNot later than 8 years
 after the date of enactment of this Act, the Comptroller General of the
 United
 States shall submit a report to the Committee on Banking, Housing, and
 Urban
 Affairs of the Senate and the Committee on Financial Services of the House
 of
 Representatives on the feasibility of maintaining a fully privatized
 secondary
 mortgage market, including recommendations on how to best carry out any
 displacement of the insurance model established under this Act.(b)Corporation
 plan To transition to a fully private secondary mortgage market(1)Required
 submission to CongressNot
 later than 6 months after the date on which the report required under
 subsection (a) is submitted, the Corporation shall submit to the Committee
 on
 Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives a plan to transition to
 a
 fully privatized secondary mortgage market.(2)Required
 content of planThe plan required to be submitted under paragraph
 (1) shall describe, chronicle, and specify all the legislative,
 administrative,
 and regulatory actions necessary to carry out a transition to a fully
 private
 secondary mortgage market, including all actions necessary to dissolve the
 Corporation and successfully displace the insurance model established
 under
 this Act.VIIGeneral
 provisions701.Authority to
 issue regulationsThe
 Corporation may prescribe such regulations and issue such guidelines,
 orders,
 requirements, or standards as are necessary to carry out this Act, or any
 amendment made by this Act.702.Fair value
 accountingIn any evaluation,
 oversight, audit, or analysis by the Corporation of the cost of the
 Mortgage
 Insurance Fund, the insurance or guarantee activities of the Corporation
 required under this Act, including any fee or charge in connection with
 the
 provision of such insurance or guarantee, or the financial transactions of
 the
 Corporation, the Corporation shall conduct any such evaluation, oversight,
 audit, or analysis based on the fair-value accrual accounting method.703.Rule of
 constructionNothing in this
 Act shall be construed to prohibit or otherwise restrict the ability of a
 holder of any loss position in any covered security insured under this Act
 from
 restructuring, retranching, or resecuritizing such position.704.SeverabilityIf any provision of this Act or the
 application of any provision of this Act to any person or circumstance, is
 held
 invalid, the application of such provision to other persons or
 circumstances,
 and the remainder of this Act, shall not be affected thereby.1.Short
 title; table of contents(a)Short
 titleThis Act may be cited
 as the Housing Finance Reform and Taxpayer Protection Act of 2014.(b)Table of contentsThe table of contents for this Act is as follows:Sec. 1. Short title; table of contents.Sec. 2. Definitions.TITLE I—Elimination of Fannie Mae and Freddie MacSec. 101. Elimination of Fannie Mae and Freddie Mac.TITLE II—Federal Mortgage Insurance CorporationSec. 201. Establishment.Sec. 202. Management of Corporation.Sec. 203. Advisory Committee.Sec. 204. Office of the Inspector General.Sec. 205. Staff, experts, and consultants.Sec. 206. Reports; testimony; audits.Sec. 207. Specific offices.Sec. 208. Office of Consumer and Market Access.Sec. 209. Office of Multifamily Housing.Sec. 210. Equitable access for lenders and borrowers.Sec. 211. Office of Taxpayer Protection.TITLE III—Duties and responsibilities of the FMICSubtitle A—Duties and authoritiesSec. 301. Duties and responsibilities.Sec. 302. Standards for credit risk-sharing mechanisms.Sec. 303. Insurance; Mortgage Insurance Fund.Sec. 304. Loan limits; Housing Price Index.Sec. 305. Authority to protect taxpayers in unusual and exigent market conditions.Sec. 306. General powers.Sec. 307. Exemptions.Sec. 308. Regulatory consultation and coordination.Sec. 309. Authority to issue regulations.Sec. 310. Equivalency in protection of the Mortgage Insurance Fund.Subtitle B—Approval and supervision of approved entities for single-family activitiesSec. 311. Approval and supervision of guarantors.Sec. 312. Approval and supervision of aggregators.Sec. 313. Approval of private mortgage insurers.Sec. 314. Approval of servicers.Sec. 315. Authority to establish and approve small lender mutuals.Sec. 316. Supervisory actions related to capital and solvency.Sec. 317. Ownership, acquisitions, and operations of covered entities.Subtitle C—Securitization Platform and Transparency in Market OperationsPART I—Securitization PlatformSec. 321. Establishment of the Securitization Platform.Sec. 322. Management of the Platform.Sec. 323. Membership in the Platform.Sec. 324. Fees.Sec. 325. Purposes and obligations of the Platform.Sec. 326. Uniform securitization agreements for covered securities and required contractual terms
 for noncovered securities.Sec. 327. Approval and standards for collateral risk managers.PART II—Transparency in market operationsSec. 331. Review of loan documents; disclosures.Sec. 332. National mortgage database.Sec. 333. Working group on electronic registration of mortgage loans.Sec. 334. Multiple lender issues.Sec. 335. Required harmonization of standards within eligible mortgage criteria.TITLE IV—FHFA and FMIC TransitionSec. 401. Definitions.Sec. 402. FHFA transition.Sec. 403. Transfer and rights of employees of the FHFA.Sec. 404. Transition Committee.Sec. 405. Transition assessments.Sec. 406. Transfer of powers and duties on the system certification date; continuation and
 coordination of certain actions.Sec. 407. Technical and conforming amendments relating to abolishment of FHFA.Sec. 408. Repeal of mandatory housing goals.TITLE V—Improving transparency, accountability, and efficacy within affordable housingSec. 501. Affordable housing allocations.Sec. 502. Housing Trust Fund.Sec. 503. Capital Magnet Fund.Sec. 504. Market Access Fund.Sec. 505. Additional taxpayer protections.Sec. 506. Promoting affordable housing investment.TITLE VI—Transition and termination of Fannie Mae and Freddie MacSec. 601. Minimum housing finance system criteria to be met prior to system certification date.Sec. 602. Transition of the housing finance system.Sec. 603. Resolution authority; technical amendments.Sec. 604. Wind down.Sec. 605. Portfolio reduction.Sec. 606. Oversight of transition of the housing finance system.Sec. 607. Authority to establish provisional standards.Sec. 608. Initial fund level for the Mortgage Insurance Fund.Sec. 609. GAO report on full privatization of secondary mortgage market.TITLE VII—MultifamilySec. 701. Establishment of multifamily subsidiaries.Sec. 702. Disposition of multifamily businesses.Sec. 703. Approval and supervision of multifamily guarantors.Sec. 704. Multifamily housing requirement.Sec. 705. Establishment of small multifamily property program.Sec. 706. Multifamily housing study.Sec. 707. Multifamily platform study.Sec. 708. Short-term residential housing.TITLE VIII—General provisionsSec. 801. Rule of construction.Sec. 802. Severability.Sec. 803. Transfer notification under TILA.Sec. 804. Investment authority to support rural infrastructure.Sec. 805. Consolidation of similar housing assistance programs.Sec. 806. Bureau of Consumer Financial Protection review; GAO report.Sec. 807. Determination of budgetary effects.2.DefinitionsAs used in this Act, the following
 definitions shall apply:(1)AffiliateThe term affiliate means any person that controls, is controlled by, or is under common control with another person.(2)Affordable rental housingThe term affordable rental housing means a rental housing unit that is considered affordable for extremely low-, very low-, low-, and
 moderate-income families if the rent charged, including utilities or a
 utility allowance, does not exceed 30 percent of the respective income
 limit in that market area for extremely low-, very low-, low-, or
 moderate-income families, respectively, of the size appropriate for the
 number of bedrooms in the unit, as established by the Secretary of Housing
 and Urban Development.(3)Agency transfer dateThe term agency transfer date means the date that is 6 months after the date of enactment of this Act.(4)Appropriate Federal banking agencyThe term appropriate Federal banking agency has the same meaning as in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)),
 and includes the National Credit Union Administration in the case of any
 credit union.(5)Approved aggregatorThe term approved aggregator means an entity that is approved by the Corporation pursuant to section 312.(6)Approved entityThe term approved entity means—(A)an approved guarantor;(B)an approved multifamily guarantor;(C)an approved aggregator;(D)an approved private mortgage insurer; and(E)an approved servicer.(7)Approved guarantorThe term
 approved guarantor means an entity that is approved by the Corporation pursuant to section 311.(8)Approved multifamily guarantorThe term approved multifamily guarantor means an entity that is approved by the Corporation pursuant to section 703.(9)Approved
 private mortgage insurerThe term approved private
 mortgage insurer means an entity that is approved by the Corporation
 pursuant to section 313.(10)Approved
 servicerThe term approved servicer means an
 entity that is approved by the Corporation pursuant to section 314.(11)AreaThe term area means a metropolitan statistical area, a micropolitan statistical area, and a noncore area, as
 such areas may be established by the Office of Management and Budget.(12)Board; Board of
 DirectorsThe terms Board and Board of
 Directors mean the Board of Directors of the Federal Mortgage Insurance
 Corporation, unless the context otherwise requires.(13)ChairpersonThe term Chairperson means the Chairperson of Board of Directors of the Federal Mortgage Insurance Corporation, unless
 the context otherwise
 requires.(14)CharterThe term charter means—(A)with respect to the Federal National
 Mortgage Association, the Federal National Mortgage Association Charter
 Act (12
 U.S.C. 1716 et seq.); and(B)with respect to the Federal Home Loan
 Mortgage Corporation, the Federal Home Loan Mortgage Corporation Act (12
 U.S.C.
 1451 et seq.).(15)Community Development Financial InstitutionThe term Community Development Financial Institution has the same meaning as in section 103 of the Riegle Community Development and Regulatory
 Improvement Act of 1994 (12 U.S.C. 4702).(16)Community land trustThe term community land trust means a nonprofit organization or State or local government that owns real property and leases the
 land through homeownership programs that—(A)use a ground lease to—(i)make real property affordable to low- or moderate-income borrowers; and(ii)stipulate a preemptive option to purchase the real property from the home owner at resale so that
 the affordability of the real property is preserved for successive low-
 and moderate-income borrowers;(B)monitor properties to ensure affordability is preserved over resales; and(C)support homeowners to promote successful homeownership and prevent foreclosure.(17)CorporationThe
 term Corporation means the Federal Mortgage Insurance
 Corporation established under title II.(18)Covered entityThe term covered entity means—(A)an approved guarantor;(B)an approved multifamily guarantor; and(C)an approved aggregator that is neither an insured depository institution nor an affiliate of an
 insured depository institution.(19)Covered guarantee transaction(A)DefinitionThe term covered guarantee transaction means a transaction, as that term shall be defined by the Corporation by regulation, involving
 the agreement to
 guarantee—(i)any eligible mortgage loan;(ii)any pool of such eligible
 mortgage loans; or(iii)the payment of principal and interest on covered
 securities collateralized by eligible mortgage loans before payments
 insured
 by
 the Corporation are made.(B)Rules of constructionA covered guarantee transaction—(i)shall not be construed to be—(I)a contract for sale of a commodity for future delivery or a swap under the Commodity Exchange Act;
 or(II)a contract of insurance or reinsurance under any Federal or State law regulating the sale,
 underwriting, provision, or brokerage of insurance;(ii)shall not be subject to
 any requirement of the Commodity Exchange Act; and(iii)shall not be subject to any requirement imposed under State law pertaining to the sale,
 underwriting, provision, or brokerage of insurance or reinsurance.(20)Covered market-based risk-sharing transaction(A)DefinitionThe term covered market-based risk-sharing transaction means any private market transaction, as that term shall be defined by the Corporation by
 regulation, involving a covered security issued subject to a standard
 risk-sharing mechanism, product, contract, or
 other security agreement approved by the Corporation under
 section 302.(B)Rules of constructionA covered market-based risk-sharing transaction—(i)shall not be construed to be a contract of insurance or reinsurance under any Federal or State law
 regulating the sale, underwriting, provision, or brokerage of insurance;
 and(ii)shall not be subject to any requirement imposed under State law pertaining to the sale,
 underwriting, provision, or brokerage of insurance or reinsurance.(21)Covered
 securityThe term covered security means—(A)a single-family covered security; and(B)a multifamily covered security.(22)Credit risk-sharing mechanismThe term credit risk-sharing mechanism means any mechanism, product, structure, contract, or security agreement by which a private market
 holder assumes the first loss position, or any
 part of such position, associated with the pool of eligible mortgage loans
 collateralizing a covered security, or by which an approved guarantor or
 approved
 multifamily guarantor manages the credit risk related to guarantees
 provided for covered securities.(23)CSPThe term CSP means the securitization infrastructure announced by the Federal Housing Finance Agency on October
 4, 2012, and developed by the enterprises while under conservatorship,
 under the authority of the Federal Housing Finance Agency pursuant to the
 Safety and Soundness Act,
 and commonly referred to as the common securitization platform.(24)DaysThe term days means—(A)with respect to any period of time less than or equal to 10 days, business days; and(B)with respect to any period of time greater than 10 days, calendar days.(25)Depository institution holding companyThe term depository institution holding company has the same meaning as section 3(w)(1) of the Federal Deposit
 Insurance Act (12 U.S.C. 1813(w)(1)).(26)Eligible borrowerThe term eligible borrower means a borrower who—(A)applies for an eligible mortgage loan; and(B)meets the standards required of a borrower to be approved for an eligible mortgage loan.(27)Eligible
 mortgage loanThe term eligible mortgage loan means—(A)an eligible single-family mortgage loan; and(B)an eligible multifamily mortgage loan.(28)Eligible multifamily mortgage loanThe term eligible multifamily mortgage loan means a commercial real estate loan—(A)secured by a property with—(i)5 or more residential units; or(ii)2 or more residential units, if the requirement under clause (i) is waived by the Corporation for
 purposes of carrying out a demonstration or pilot program;(B)the primary source of repayment for which is expected to be derived from rental income generated by
 the property;(C)the term of which may not be less than 5 years but not more than 40 years, except that the term may
 be less than 5 years subject to standards set by the Corporation;(D)that satisfies any additional underwriting criteria established by the Corporation to balance
 supporting access to capital with managing credit risk to the Mortgage
 Insurance Fund, including—(i)a maximum loan-to-value ratio;(ii)a minimum debt service coverage ratio; and(iii)considerations for restrictive or special uses of a property, including non-residential uses,
 properties for seniors, manufactured housing, and affordability
 restrictions, and the impact of such uses on clauses (i) and (ii); and(E)that satisfies any additional underwriting criteria that may be established by the Corporation.(29)Eligible single-family mortgage loanThe term eligible single-family mortgage loan means—(A)a loan that—(i)has been originated in compliance with minimum standards issued by the Corporation by regulation,
 provided that such standards—(I)are uniform and equal in kind, nature, and application regardless of—(aa)the originator of the mortgage loan; or(bb)the role performed by an approved entity with respect to the mortgage loan;(II)are, to the greatest extent possible, substantially similar to the regulations issued by the
 Bureau of Consumer Financial Protection under section 129C(b) of the Truth
 in
 Lending Act (15 U.S.C. 1639c); and(III)permit—(aa)residential real estate loans secured by a property with 1 to 4 single-family units, including
 units that are not owner-occupied;(bb)loans secured by manufactured homes, as defined in section 603(6) of the National Manufactured
 Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402(6));(cc)residential real estate loans secured by a property with 1 to 4 single-family units that are
 originated by a State housing finance agency, as defined in section 106 of
 the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x);(dd)loans originated by a Community Development Financial Institution;(ee)loans originated by a mission-based nonprofit lender;(ff)loans secured by real property in a permanently affordable homeownership program or community land
 trust; and(gg)loans to entities that provide non-owner occupied rental housing with care providers for
 individuals with intellectual and developmental disabilities;(ii)has a maximum
 original principal obligation amount that does not exceed the applicable
 loan limitation established under section 304;(iii)has an outstanding principal balance at the time of purchase of insurance available under title II
 that does not exceed 80 percent of the value of the property securing the
 loan, unless—(I)for such period and under such circumstances as the Corporation may require, the seller agrees to
 repurchase or replace the loan upon demand of the Corporation in the event
 the loan is in default;(II)an approved private mortgage insurer guarantees or insures—(aa)not less than 12 percent of the unpaid principal balance of the loan, accounting for any
 down payment required under clause (iv), for loans in which the
 unpaid
 principal balance exceeds 80 percent but not more than 85 percent of the
 value of the property securing the loan;(bb)not less than 25 percent of the unpaid principal balance of the loan, accounting for any
 down payment required under clause (iv), for loans in which the
 unpaid
 principal balance exceeds 85 percent but not more than 90 percent of the
 value of the property securing the loan;(cc)not less than 30 percent of the unpaid principal balance of the loan, accounting for any
 down payment required under clause (iv), for loans in which the
 unpaid
 principal balance exceeds 90 percent but not more than 95 percent of the
 value of the property securing
 the loan; and(dd)not less than 35 percent of the unpaid principal balance of the loan, accounting for any down
 payment required under clause (iv), for loans in which the unpaid
 principal balance exceeds 95 percent of the value of the property securing
 the loan; or(III)that portion of the unpaid principal balance of the loan which exceeds 80 percent of the value of
 the property securing the loan is subject to other credit enhancement
 that—(aa)meets standards comparable to the standards required of private mortgage insurers under
 subclause (II);
 and(bb)is approved by the Corporation;(iv)has a down payment that is—(I)for a first-time homebuyer, as that term shall be defined by the Corporation by regulation, equal
 to not less than 3.5 percent of the purchase price of the property
 securing the loan; or(II)for non first-time homebuyers, equal to—(aa)not less than 3.5 percent of the purchase price of the property securing the loan, if such purchase
 occurs prior to the system certification date or less than 1 year after
 the system certification date;(bb)not less than 4 percent of the purchase price of the property securing the loan, if such purchase
 occurs during the period that begins 1 year after the system certification
 date and ends less than 2 years after the system certification date;(cc)not less than 4.5 percent of the purchase price of the property securing the loan, if such purchase
 occurs during the period that begins 2 years after the system
 certification date and ends less than 3 years after the system
 certification date; or(dd)not less than 5 percent of the purchase price of the property securing the loan, if such purchase
 occurs during any period after the period set forth in item (cc);(v)satisfies standards related to establishing title or marketability of title, as may be required by
 the Corporation, which standards may include the required purchase of
 title insurance on the property securing the loan;(vi)contains
 such terms and provisions with respect to insurance, property maintenance,
 repairs, alterations, payment of taxes, default, reserves, delinquency
 charges,
 foreclosure proceedings, anticipation of maturity, additional and
 secondary
 liens, and other matters, including matters that set forth terms and
 provisions
 for establishing escrow accounts, performing financial assessments, or
 limiting
 the amount of any payment made available under the loan as the
 Corporation
 may prescribe; and(vii)contains
 such other terms, characteristics, or underwriting criteria as the
 Corporation, in consultation with
 the Bureau of Consumer Financial Protection, may determine necessary or
 appropriate; or(B)a loan refinanced pursuant to the authority granted under section 305(i).(30)EnterpriseThe
 term enterprise means—(A)the Federal
 National Mortgage Association and any affiliate thereof; and(B)the Federal Home
 Loan Mortgage Corporation and any affiliate thereof.(31)Extremely low-incomeThe term extremely low-income means—(A)in the case of owner-occupied units, income not in excess of 30 percent of the median income of the
 area; and(B)in the case of rental units, income not in excess of 30 percent of the median income of the area,
 with adjustments for smaller and larger families, as determined by the
 Secretary of Housing and Urban Development.(32)Federal Home
 Loan BankThe term Federal Home Loan Bank means a
 bank established under the authority of the Federal Home Loan Bank Act (12
 U.S.C. 1421 et seq.).(33)Federal Home
 Loan Bank SystemThe term Federal Home Loan Bank
 System means the Federal Home Loan Banks and the Office of Finance and
 any authorized subsidiary of one or more Federal Home Loan Banks.(34)FHFA related terms(A)Federal Housing Finance AgencyThe term Federal Housing Finance Agency shall mean—(i)prior to the agency transfer date, the Federal Housing Finance Agency established under section
 1311 of the Safety and Soundness Act (12 U.S.C. 4511);(ii)on and after the agency transfer date but prior to the system certification date, the Federal
 Housing Finance Agency established within the Corporation under title IV;
 and(iii)on and after the system certification date, the Corporation.(B)FHFA DirectorThe
 term FHFA Director has the same meaning as the term Director in section 401(1).(35)Federal
 regulatory agenciesThe term—(A)Federal
 regulatory agency means, individually, the Board of Governors of the
 Federal Reserve System, the Office of the Comptroller of the Currency, the
 Federal Deposit Insurance Corporation, the Bureau of Consumer Financial
 Protection, the National Credit Union Administration, the Securities and
 Exchange Commission, the Commodity Futures Trading Commission, and the
 Federal
 Housing Finance Agency; and(B)Federal
 regulatory agencies means all of the agencies referred to in subparagraph
 (A), collectively.(36)First loss positionThe term first loss position means, with regard to a covered security—(A)either—(i)the fully-funded position to which any credit loss on such covered security resulting from the
 nonperformance of underlying mortgage loans will accrue and be
 absorbed, to the full
 extent of the holder’s interest in such position; or(ii)the guarantee provided by an approved guarantor or approved multifamily guarantor with respect to
 an eligible
 single-family mortgage loan, pool of eligible single-family mortgage
 loans, or a single-family covered security or eligible multifamily
 mortgage loan, pool
 of eligible multifamily mortgage loans, or a multifamily covered security,
 as
 applicable; and(B)the position or guarantee described under subparagraph (A), as applicable, which is required to
 absorb any initial credit loss on a covered security prior to the
 Corporation becoming obligated to make any payment of insurance in
 accordance with this Act.(37)HUD-approved housing counseling agencyThe term HUD-approved housing counseling agency means an agency certified by the Secretary of Housing and Urban Development under section 106(e)
 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701x(e)).(38)Insured
 depository institutionThe term insured depository
 institution means—(A)an insured
 depository institution, as defined under section 3 of the Federal Deposit
 Insurance Act (12 U.S.C. 1813); and(B)an insured credit union, as defined under section 101 of the Federal Credit Union Act (12 U.S.C.
 1752).(39)IssuerFor a noncovered security, the term issuer shall have the same meaning as under the Securities Act of 1933 (15 U.S.C. 77b) and the rules and
 regulations promulgated thereunder. The Platform shall not be deemed to
 be an issuer of noncovered securities for purposes
 of the Securities Act of 1933.(40)Low-incomeThe term low-income means—(A)in the case of owner-occupied units, income not in excess of 80 percent of median income of the
 area; and(B)in the case of rental units, income not in excess of 80 percent of median income of the area, with
 adjustments for smaller and larger families, as determined by the
 Secretary of Housing and Urban Development.(41)Market participantThe term market participant means any—(A)approved entity;(B)private market holder; and(C)member of the Securitization Platform.(42)Median incomeThe term median income means, with respect to an area, the unadjusted median family income for the area, as determined
 and published annually by the Secretary of Housing and Urban Development.(43)Mission-based nonprofit lenderThe term mission-based nonprofit lender means an organization that—(A)is exempt from taxation pursuant to section 501(c)(3) of the Internal Revenue Code of 1986;(B)makes—(i)residential real estate loans for the purpose of promoting or facilitating homeownership for poor
 or low- or moderate-income, disabled, or other disadvantaged persons or
 families; or(ii)real estate loans for the purpose of promoting or facilitating affordable rental housing for
 low-income
 persons or families and subject to any other additional criteria
 established by the
 Corporation;(C)sets interest rates on such loans that—(i)are lower than the bank prime loan rate, as determined under the Federal Reserve Statistical
 Release of selected interest rates (commonly referred to as the H.15) by
 the Board of Governors of the Federal Reserve System, for the last day of
 the most recent weekly release of such rates; or(ii)are, after adjusting for inflation, no-interest loans or loans with interest rates at or
 below the interest rates for mortgage loans generally available in the
 market;(D)except as described under subparagraph (B), does not engage in the business of a mortgage
 originator or mortgage broker;(E)conducts its activities in a manner that serves public or charitable purposes;(F)receives funding and revenue and charges fees in a manner that does not incentivize the
 organization or its employees to act other than in the best interests of
 its clients;(G)compensates employees in a manner that does not incentivize employees to act other than in the best
 interests of its clients; and(H)meets such other requirements as the Corporation determines
 appropriate.(44)Moderate-incomeThe term moderate-income means(A)in the case of owner-occupied units, income not in excess of median income of the area; and(B)in the case of rental units, income not in excess of median income of the area, with adjustments
 for smaller and larger families, as determined by the Secretary of Housing
 and Urban Development.(45)Mortgage aggregatorThe term mortgage aggregator means a person that—(A)arranges, in connection with a single-family covered security, a credit-risk sharing mechanism that
 is approved by the Corporation pursuant to section 302;(B)issues such single-family covered security through the Securitization Platform;(C)does not originate eligible single-family mortgage loans; and(D)is not affiliated with a person that actively engages in the business of originating eligible
 single-family mortgage loans.(46)Mortgage-backed securityThe term mortgage-backed security means an asset-backed security, as defined in section 3(a) of the Securities Exchange Act of 1934
 (15 U.S.C. 78c(a)), that is collateralized by—(A)a mortgage loan, including any residential real estate loan or commercial real estate loan; or(B)a collateralized mortgage obligation of mortgage-backed securities.(47)Mortgage originatorThe term mortgage originator has the same meaning as in section 103(cc)(2) of the Truth in Lending Act (15 U.S.C. 1602(cc)(2)).(48)Multifamily businessThe term multifamily business means the activities and processes of the enterprises of—(A)purchasing, selling, lending on the security of, or otherwise dealing in multifamily
 mortgage loans;(B)securitizing a pool of multifamily mortgage loans; and(C)issuing multifamily securities.(49)Multifamily covered securityThe term multifamily covered security means a multifamily mortgage-backed security—(A)collateralized by eligible multifamily mortgage loans; and(B)that is insured by the Corporation pursuant to section 303.(50)Multifamily mortgage-backed securityThe term multifamily mortgage-backed security means a mortgage-backed security collateralized by commercial real estate loans secured by
 properties with 5 or more residential units in accordance with the
 requirements of this Act.(51)Noncovered securityThe term noncovered security means any mortgage-backed security other than a covered security.(52)Noneligible mortgage loanThe term noneligible mortgage loan means any mortgage loan other than an eligible mortgage loan.(53)Office of FinanceThe term Office of Finance means the Office of Finance in the Federal Home Loan Bank System.(54)Permanently affordable homeownership programThe term permanently affordable homeownership program includes programs administered by community land trusts, nonprofit organizations, or State or
 local governments that—(A)use a ground lease, deed restriction, subordinate loan, or similar legal mechanism to—(i)make real property affordable to low- or moderate-income borrowers; and(ii)stipulate a preemptive option to purchase the real property from the homeowner at resale to
 preserve the affordability of the real property for successive low- and
 moderate-income borrowers;(B)monitor properties to ensure affordability is preserved over resales; and(C)support homeowners to promote successful homeownership and prevent foreclosure.(55)PersonThe term person means an individual, corporation, company (including a limited liability company or joint stock
 company), association (incorporated or unincorporated), mutual or
 cooperative organization, partnership, trust, estate, society, or any
 other legal entity.(56)Platform; Securitization PlatformThe terms Platform and Securitization Platform mean the securitization infrastructure established under part I of subtitle C of title III.(57)Platform DirectorsThe term Platform Directors means the board of directors of the Securitization Platform.(58)Platform securityThe term Platform security means a mortgage-backed security issued through the Securitization
 Platform.(59)Private label mortgage-backed securities marketThe term private label mortgage-backed securities market means the market in which noncovered securities are issued, bought, and sold.(60)Private market holderThe term private market holder means the holder or holders, other than an approved guarantor or an approved multifamily
 guarantor, of the first loss position with respect to eligible mortgage
 loans collateralizing any covered security insured in accordance with this
 Act.(61)Regulated entityThe term regulated entity means—(A)the Federal National Mortgage Association and any affiliate thereof;(B)the Federal Home Loan Mortgage Corporation and any affiliate thereof;(C)any Federal Home Loan Bank; and(D)the Securitization Platform.(62)Residential real estate loanThe term residential real estate loan includes any—(A)real estate mortgage loan;(B)personal property loan secured solely by the home itself;(C)hybrid land-home loan for a manufactured home, as defined in section 603(6) of the National
 Manufactured Housing Construction and Safety Standards Act of 1974 (42
 U.S.C. 5402(6)), to
 which the requirements of paragraph (29)(A)(v) shall not apply; and(D)mortgage loan secured by real property in a community land trust or permanently affordable
 homeownership program.(63)Safety and Soundness ActThe term Safety and Soundness Act means the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501
 et seq.).(64)Senior
 Preferred Stock Purchase AgreementThe term Senior
 Preferred Stock Purchase Agreement means—(A)the Amended and
 Restated Senior Preferred Stock Purchase Agreement, dated September 26,
 2008,
 as such Agreement has been amended on May 6, 2009, December 24, 2009, and
 August 17, 2012, respectively, and as such Agreement may be further
 amended and
 restated, entered into between the Department of the Treasury and each
 enterprise, as applicable; and(B)any provision of
 any certificate in connection with such Agreement creating or designating
 the
 terms, powers, preferences, privileges, limitations, or any other
 conditions of
 the Variable Liquidation Preference Senior Preferred Stock of an
 enterprise
 issued or sold pursuant to such Agreement.(65)Single-family activitiesThe term single-family activities means the activities and processes of the Corporation in providing insurance for single-family
 covered securities as provided in this Act.(66)Single-family covered securityThe term single-family covered security means a single-family mortgage-backed security—(A)collateralized by eligible single-family mortgage loans; and(B)that is insured by the Corporation pursuant to section 303.(67)Small mortgage lenderThe term small mortgage lender means a community bank, credit union, mid-sized bank, non-depository institution, Community
 Development Financial Institution, mission-based nonprofit lender,
 or housing finance agency that originates residential real estate loans or
 commercial real estate loans.(68)Standardized covered security; standardized security for single-family covered securitiesThe terms standardized covered security and standardized single-family covered security mean a single-family covered security that is—(A)issued through the Platform; and(B)in a form, and includes the standardized and uniform terms for the security and transaction that
 have been, developed by the Platform
 Directors and approved by the Corporation for use across various
 issuances.(69)Standardized noncovered security; standardized security for single-family noncovered securitiesThe terms standardized noncovered security and standardized single-family noncovered security mean a single-family noncovered security that is—(A)issued through the Platform; and(B)in a form, and includes the standardized and uniform terms for the security and transaction that
 have been, developed by the Platform
 Directors for use across various issuances.(70)StateThe term State means any State, territory, or possession of the United States, the District of Columbia, the
 Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana
 Islands, Guam, American Samoa, or the United States Virgin Islands or any
 Federally recognized Indian tribe, as defined by the Secretary of the
 Interior under section 104(a) of the Federally Recognized Indian Tribe
 List Act of 1994 (25 U.S.C. 479a–1(a)).(71)System certification dateThe term system certification
 date means the date on which the Board of Directors certifies that the requirements of section 601 have
 been met.(72)Very low-income(A)In generalThe term very low-income means—(i)in the case of owner-occupied units, families having incomes not greater than 50 percent of the
 median income of the area; and(ii)in the case of rental units, families having incomes not greater than 50 percent of the median
 income of the area, with adjustments for smaller and larger families, as
 determined by the Secretary of Housing and Urban Development.(B)Rule of constructionFor purposes of the Housing Trust Fund established under section 1338 of the Safety and Soundness
 Act (12 U.S.C. 4568),
 the Capital Magnet Fund established under section 1339 of the Safety and
 Soundness Act (12 U.S.C.
 4569), and the Market Access Fund established under section 504, the term very low-income means—(i)in the case of owner-occupied units, income in excess of 30 percent but not greater than 50 percent
 of the median income of the area; and(ii)in the case of rental units, income in excess of 30 percent but not greater than 50 percent of the
 median income of the area, with adjustments for smaller and larger
 families, as determined by the Secretary of Housing and Urban Development.IElimination of Fannie Mae and Freddie Mac101.Elimination of Fannie Mae and Freddie Mac(a)Fannie MaeEffective on the agency transfer date, the Corporation shall take all steps necessary to dissolve
 and eliminate the Federal National Mortgage Association pursuant to the
 provisions of this Act. The charter for the Federal National Mortgage
 Association shall be repealed pursuant to title VI.(b)Freddie MacEffective on the agency transfer date, the Corporation shall take all steps necessary to dissolve
 and eliminate the Federal Home Loan Mortgage Corporation pursuant to the
 provisions of this Act. The charter for the Federal Home Loan Mortgage
 Corporation shall be repealed pursuant to title VI.IIFederal Mortgage Insurance Corporation201.Establishment(a)EstablishmentEffective on the agency transfer date, there is established the Federal Mortgage Insurance
 Corporation, which is charged with ensuring the safety and soundness of,
 and compliance with laws and regulations, fair access to financial
 services, and fair treatment of customers by the institutions and other
 persons subject to its jurisdiction and which shall have the powers
 hereinafter granted.(b)PurposeThe purpose of the Corporation shall be to—(1)facilitate a liquid, transparent, and resilient single-family and multifamily mortgage credit
 market by supporting a robust secondary mortgage market, including during
 the transition to the new housing finance system;(2)provide insurance on any mortgage-backed security that satisfies the requirements under this Act to
 become a covered security;(3)monitor and supervise approved entities to the extent provided in this Act;(4)supervise the regulated entities;(5)facilitate the broad availability of mortgage credit and secondary mortgage market financing
 through
 fluctuations in the business cycle for eligible single-family and
 multifamily lending across all—(A)regions;(B)localities;(C)institutions;(D)property
 types, including housing serving renters; and(E)eligible borrowers;(6)ensure continued, widespread availability of an affordable, long-term, fixed rate, prepayable
 mortgage, such as a 30-year fixed rate mortgage; and(7)preserve and maintain a liquid forward execution market for eligible single-family mortgage loans
 and single-family covered securities, such as the To-Be-Announced market.(c)General supervisory and regulatory authority(1)In generalEach approved entity shall, to the extent provided in this Act, be subject to the supervision and
 regulation of the Corporation.(2)Regulated entities; Office of FinanceThe Corporation shall have general regulatory authority over each regulated entity and the Office
 of Finance, and shall exercise such general regulatory authority to ensure
 that the purposes of this Act, any amendments made by this Act, and any
 other applicable law as to which the Corporation has responsibility under
 this Act are carried out.(d)Federal statusThe Corporation shall be an independent agency and an instrumentality of the Federal Government.(e)SuccessionThe Corporation shall have succession until dissolved by an Act of Congress.(f)Principal officeThe Corporation shall maintain its principal office in the District of Columbia and shall be
 deemed, for purposes of venue in civil actions, to be a resident thereof.(g)Authority to establish other officesThe Corporation may establish such other offices in such other place or places as the Corporation
 may deem necessary or appropriate in the conduct of its business.(h)ProhibitionThe Corporation shall not engage in mortgage loan origination.202.Management of Corporation(a)Board of Directors(1)MembersThe management of the Corporation shall be vested in a Board of Directors consisting of 5 members
 who shall be appointed by the President, by and with the advice and
 consent of the Senate, from among individuals who—(A)are citizens of the United States; and(B)have demonstrated technical, academic, or professional understanding of, and practical,
 disciplinary, vocational, or regulatory experience working in, housing and
 housing finance.(2)Political affiliationNot more than 3 of the members of the Board of Directors may be members of the same political
 party.(3)DutiesThe Board of Directors shall advise the Chairperson regarding overall strategies and policies to
 carry out the duties and purposes of this Act.(b)Chairperson and Vice Chairperson(1)Chairperson(A)Designation1 of the members appointed pursuant to subsection (a)(1) shall be designated by the President to
 serve as Chairperson of the Board of Directors.(B)TermExcept as provided in subsection (c)(1)(A), the Chairperson shall be appointed for a term of 5
 years, unless removed before the end of
 such term by the President under subparagraph (C).(C)Removal for causeThe President may remove the Chairperson for inefficiency, neglect of duty, or malfeasance in
 office.(D)Duties and authorities(i)In generalThe Chairperson—(I)shall—(aa)be the active executive officer of the Corporation, subject to supervision by the Board of
 Directors;(bb)oversee the prudential operations of each regulated entity; and(cc)ensure that each approved entity and regulated entity operates in a safe and sound manner,
 including—(AA)through the maintenance of adequate capital, standards, and internal controls; and(BB)by ensuring compliance with the rules, regulations, guidelines, and orders issued pursuant to this
 Act; and(II)may exercise such incidental powers as may be necessary or appropriate to assist the Corporation in
 fulfilling the duties and responsibilities of the Corporation in the
 supervision and regulation of each approved entity and regulated entity.(ii)DelegationThe Chairperson may delegate to officers and employees of the Corporation any of the functions,
 powers, or duties of the Chairperson, as the Chairperson considers
 appropriate.(2)Vice Chairperson(A)Designation1 of the members appointed pursuant to subsection (a)(1) shall be designated by the President to
 serve as Vice Chairperson of the Board of Directors.(B)TermExcept as provided in subsection (c)(1)(B), the Vice Chairperson shall be appointed for a term of 5
 years, unless removed before the end of
 such term by the President under subparagraph (C).(C)Removal for causeThe President may remove the Vice Chairperson for inefficiency, neglect of duty, or malfeasance in
 office.(3)Acting Chairperson(A)During vacancy in the position of ChairpersonExcept as provided in section 402, in the event of a vacancy in the position of Chairperson of
 the Board of Directors or during the absence or disability of the
 Chairperson, the Vice Chairperson shall act as Chairperson.(B)During vacancies in the position of Chairperson and Vice ChairpersonExcept as provided in section 402, in the event of vacancies in the positions of Chairperson
 and Vice Chairperson, or during the absence or disability of both the
 Chairperson and the Vice Chairperson, the President shall designate 1 of
 the other members appointed pursuant to subsection (a)(1) as Acting
 Chairperson.(C)Retention of authorityAny person confirmed to serve as Chairperson, or acting as Chairperson, whether designated to act
 as such by the President under this paragraph or acting in such capacity
 by operation of this paragraph or section 402, shall for the period that
 such person is
 serving as Chairperson or acting as Chairperson—(i)act for all purposes as the Chairperson; and(ii)have all the rights, duties, powers, and responsibilities of the Chairperson.(c)Staggered terms; term continuation(1)Terms(A)Term of initial ChairpersonThe initial member of the Board of Directors appointed pursuant to subsection (a)(1) and designated
 as Chairperson under subsection (b)(1) shall serve a term of 30
 months.(B)Term of initial Vice ChairpersonThe initial member of the Board of Directors appointed pursuant to subsection (a)(1) and designated
 as Vice Chairperson under subsection (b)(2) shall serve a term of
 30 months.(C)Term of other appointed members1 of the other initial members of the Board of Directors appointed pursuant to subsection (a)(1)
 and not designated as Chairperson or Vice Chairperson under subsection (b)
 shall serve a term of 30 months and the other 2 initial members
 shall serve a term of 4 years.(D)All other termsAfter the expiration of the initial terms under subparagraphs (A) through (C), all subsequent
 members of the
 Board of Directors appointed pursuant to subsection (a)(1) shall serve for
 a term of 5 years.(2)Continuation of serviceEach member of the Board of Directors appointed pursuant to subsection (a)(1), including any member
 appointed to serve as Chairperson or Vice Chairperson, may continue to
 serve after the expiration of the term of office to which such member was
 appointed until the expiration of the next session of Congress subsequent
 to the expiration of said fixed term of office.(d)Vacancy; manner of fulfillmentAny vacancy on the Board of Directors shall be filled in the manner in which the original
 appointment was made, and the person appointed to fill such vacancy shall
 be appointed only for the remainder of such term.(e)Compensation of members(1)ChairpersonThe Chairperson shall receive compensation at the rate prescribed for Level II of the Executive
 Schedule under section 5313 of title 5, United States Code.(2)Other appointed membersAll members of the Board of Directors not described in paragraph (1) shall receive compensation at
 the rate prescribed for Level III of the Executive Schedule under section
 5314 of title 5, United States Code.(f)Ineligibility for other offices during service; postservice restriction(1)Restrictions during serviceNo member of the Board of Directors may, during the time such member is serving in such capacity
 and for the 2-year period beginning on the date such member ceases to
 serve as a member of the Board of Directors—(A)be an officer, employee, or director of any—(i)insured depository institution;(ii)insured depository institution holding company;(iii)Federal Reserve bank;(iv)regulated entity;(v)approved entity; or(vi)non-bank financial institution or company that originates eligible mortgage loans; or(B)hold stock or have beneficial ownership in any—(i)insured depository institution;(ii)insured depository institution holding company;(iii)regulated entity;(iv)approved entity; or(v)non-bank financial institution or company that originates eligible mortgage loans.(2)CertificationUpon taking office, each member of the Board of Directors shall certify under oath that such member
 has complied, and will comply, with this subsection and such certification
 shall be filed with the secretary of the Board of Directors.(g)Status of directors, officers, and employees(1)In generalA member of the Board of Directors, officer, or employee of the Corporation has no liability under
 the Securities Act of 1933 (15 U.S.C. 77b et seq.) with respect to any
 claim arising out of or
 resulting from any act or omission by such person within the scope of such
 person’s employment in connection with any transaction involving the
 disposition of assets (or any interests in any assets or any obligations
 backed by any assets) by the Corporation. This subsection shall not be
 construed to limit personal liability for criminal acts or omissions,
 willful or malicious misconduct, acts or omissions for private gain, or
 any other acts or omissions outside the scope of such person’s employment.(2)Effect on other lawThis subsection does not affect—(A)any other immunities and protections that may be available to such person under applicable law with
 respect to such transactions; or(B)any other right or remedy against the Corporation, against the United States under applicable law,
 or against any person other than a person described in paragraph (1)
 participating in such transactions.(3)Rule of constructionThis subsection shall not be construed to limit or alter in any way the immunities that are
 available under applicable law for Federal officials and employees not
 described in this subsection.(h)Independence(1)In generalEach member of the Board of Directors shall be independent in performing his or her duties.(2)Independence determinationIn order to be considered independent for purposes of this subsection, a member of the Board of
 Directors—(A)may not, other than in his or her capacity as a member of the Board of Directors or any committee
 thereof—(i)accept any consulting, advisory, or other compensatory fee from the Corporation; or(ii)be a person associated with the Corporation or with any affiliate of the Corporation; and(B)shall be disqualified from any deliberation involving any transaction of the Corporation in which
 the member has a financial interest in the outcome of the transaction.(i)AdministrationExcept as may be otherwise provided in this Act, the Board of Directors shall administer the
 affairs of the Corporation fairly and impartially and without
 discrimination.(j)VotingA majority vote of all members of the Board of Directors is necessary to resolve all
 voting issues of the Corporation.(k)MeetingsThe Board of Directors shall meet in accordance with the bylaws of the Corporation—(1)at the call of the Chairperson; and(2)not less frequently than once each quarter.(l)Quorum3 members of the Board of Directors then in office shall constitute a quorum.(m)BylawsA majority of the members of the Board of Directors may amend the bylaws of the Corporation.203.Advisory Committee(a)Establishment(1)In generalThe Corporation shall establish an Advisory Committee for the purpose of advising the Office of
 Consumer and Market Access and the Board of Directors on developments
 in the primary and secondary mortgage markets that have material effects
 on the ongoing mission of the Corporation.(2)DutiesThe Advisory Committee shall provide advice and recommendations to the Office of Consumer and
 Market Access and the Board of Directors as to material developments in
 the following areas:(A)Housing prices and affordability.(B)The effectiveness of consumer protections in the housing market.(C)Volume and characteristics of eligible mortgage loan originations.(D)The condition of the rental housing market.(E)Small lender participation in the secondary mortgage market.(F)Access to credit in rural and underserved communities.(G)Competition among approved entities.(H)Fair, equitable, and nondiscriminatory access to mortgage credit for individuals and communities.(b)Composition and qualifications(1)In generalThe Advisory Committee shall be composed of 14 members as follows:(A)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience working
 with, non-depository mortgage originators having less than $10,000,000,000
 in total assets.(B)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience working
 with, credit unions having less than $10,000,000,000 in total assets.(C)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience working
 with, banks having less than $10,000,000,000 in total assets.(D)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience working
 with, banks having more than $500,000,000,000 in total assets.(E)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocation, or regulatory experience working with,
 regional banks having more than $10,000,000,000 and less than
 $500,000,000,000 in total assets.(F)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience with private
 mortgage insurance.(G)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience with
 securitization.(H)1 member who shall have a demonstrated technical, academic, or professional understanding of, and
 practical, disciplinary, vocational, or regulatory experience with
 investor protection and institutional investors.(I)1 member who shall have a demonstrated technical, academic, or professional understanding of, or
 practical, disciplinary, or vocational experience with consumer
 protection.(J)1 member who shall have a demonstrated technical, academic, or professional understanding of, or
 practical, disciplinary, or vocational experience with policies and
 programs to support sustainable homeownership.(K)1 member who shall have a demonstrated technical, academic, or professional understanding of, or
 practical, disciplinary, or vocational experience with multifamily housing
 development.(L)1 member who shall have a demonstrated technical, academic, or professional understanding of, or
 practical, disciplinary, or vocational experience with affordable rental
 housing.(M)1 member who shall have a demonstrated technical, academic, or professional understanding of, or
 practical, disciplinary, or vocational experience with asset management.(N)1 member who shall have a demonstrated professional understanding of and vocational experience with
 State bank,
 non-bank, or insurance regulation.(2)Experience with rural housingOf the members of the Advisory Committee identified under subparagraphs (B) and (C) of paragraph
 (1), at least 1 shall be required to have practical, disciplinary, or
 vocational experience working in rural areas and with rural borrowers.(3)Experience with fair lendingOf the members of the Advisory Committee identified under paragraph (1), at least 1 shall be
 required to have demonstrated practical, academic, disciplinary, or
 vocational experience with fair lending practices and policies and
 programs that promote fair, equitable, and nondiscriminatory access to
 credit in underserved markets.(c)Member selectionMembers of the Advisory Committee shall be appointed to the Committee by the Chairperson, subject
 to approval by a majority of the Board of Directors.(d)MeetingsThe Advisory Committee shall meet no less frequently than once during each calendar quarter.204.Office of the Inspector General(a)Office of Inspector General(1)EstablishmentOn the agency transfer date, there is established the Office of the Inspector General of the
 Federal Mortgage Insurance Corporation.(2)Head of office(A)In generalThe head of the Office of the Inspector General of the Federal Mortgage Insurance Corporation shall
 be the Inspector General of the Federal Mortgage Insurance Corporation,
 who shall be appointed by the President, by and with the advice and
 consent of the Senate, in accordance with section 3(a) of the Inspector
 General Act of 1978 (5 U.S.C. App.).(B)Transitional provisionNotwithstanding subparagraph (A), during the period beginning on the
 agency transfer date and ending on the date on which the Inspector
 General of the Federal Mortgage Insurance Corporation is confirmed, the
 person serving as the Inspector General or the Acting Inspector
 General for the Office of the Inspector General within the Federal Housing
 Finance Agency on the date that is 1 day
 prior to the agency transfer date
 shall act for all purposes as, and with the
 full powers of, the Inspector General of the
 Federal Mortgage Insurance Corporation.(3)Office of the Inspector General authoritiesBeginning on the agency transfer date, the authority of the Office of the Inspector General of the
 Federal Mortgage Insurance Corporation shall include all rights and
 responsibilities of the Office of the Inspector General of the Federal
 Housing Finance
 Agency as such rights and responsibilities existed on the date that is 1
 day prior to the agency transfer date.(b)Provision of property and facilitiesThe Chairperson shall provide the Office of the Inspector General of the
 Federal Mortgage Insurance Corporation with—(1)appropriate and adequate office space at each central and field office location established by the
 Corporation, together with such equipment, office supplies, and
 communications facilities and services as may be necessary for the
 Inspector General of the Federal Mortgage Insurance Corporation to operate
 such offices; and(2)the necessary maintenance services for—(A)any office provided under paragraph (1); and(B)the equipment and facilities located in any such office.(c)Hiring of employees, experts, and consultantsNotwithstanding paragraphs (7) and (8) of section 6(a) of the Inspector General Act of 1978 (5
 U.S.C. App.), the
 Inspector General of the Federal Mortgage Insurance Corporation may
 select, appoint, and employ such officers and employees as may be
 necessary—(1)for carrying out the functions, powers, and duties of the Office of the Inspector General; and(2)to obtain the temporary or intermittent services of experts or consultants or an organization of
 experts or consultants, subject to the applicable laws and regulations
 that govern such selections, appointments, and employment, and the
 obtaining of such services, within the Corporation.(d)Submission of budget(1)In generalFor each fiscal year, the Inspector General of the Federal Mortgage Insurance Corporation shall
 transmit a budget estimate and request for funds to the Chairperson.(2)Required contentThe budget request required under paragraph (1) shall—(A)specify—(i)the aggregate amount of funds requested for such fiscal year for the operations of the Office of
 the Inspector
 General of the Federal Mortgage Insurance Corporation; and(ii)the amount requested for all training needs, including a certification from the Inspector General
 that the amount requested satisfies all training requirements for the
 Office of the Inspector General of the Federal Mortgage Insurance
 Corporation for that fiscal year;
 and(B)specifically—(i)identify and specify any resources necessary to support the Council of the Inspectors General on
 Integrity and Efficiency; and(ii)justify the need for any resources identified and specified under clause (i).(e)Amendments to Inspector General Act of 1978The Inspector General Act of 1978 (5 U.S.C. App.) is amended—(1)in section 6(e)(3), by inserting Federal Mortgage Insurance Corporation after Federal Emergency Management Agency;(2)in section 8G(a)(2), by striking the Federal Housing Finance Board; and(3)in section 12—(A)in paragraph (1), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(B)in paragraph (2), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(f)Effective dateThe amendments made by this section shall take effect on the agency transfer date.205.Staff, experts, and consultants(a)Compensation(1)In generalThe Board of Directors may appoint and fix the compensation of such officers, attorneys,
 economists, examiners, and other employees as may be necessary for
 carrying out the functions of the Corporation.(2)Rates of payRates of basic pay and the total amount of compensation and benefits for all employees of the
 Corporation may be—(A)set and adjusted by the Board of Directors without regard to the provisions of chapter 51 or
 subchapter III of chapter 53 of title 5, United States Code; and(B)reasonably increased, notwithstanding any limitation set forth in paragraph (3), if the Board of
 Directors determines such increases are necessary to attract and hire
 qualified employees.(3)ParityThe Board of Directors may provide additional compensation and benefits to employees of the
 Corporation, of the same type of compensation or benefits that are then
 being provided by any agency referred to under section 1206 of the
 Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
 U.S.C. 1833b) or, if not then being provided, could be provided by such an
 agency under applicable provisions of law, rule, or regulation. In setting
 and adjusting the total amount of compensation and benefits for employees,
 the Board of Directors shall consult with and seek to maintain
 comparability with the agencies referred to under section 1206 of the
 Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
 U.S.C. 1833b).(b)Detail of government employeesUpon the request of the Board of Directors, any Federal Government employee may be detailed to the
 Corporation without reimbursement from the Corporation, and such detail
 shall be without
 interruption or loss of civil service status or privilege.(c)Experts and consultantsThe Corporation may procure the services of experts and consultants as the Corporation considers
 necessary or appropriate.(d)Technical and professional advisory committeesThe Board of Directors may appoint such special advisory, technical, or professional committees as
 may be useful in carrying out the functions of the Corporation.206.Reports; testimony; audits(a)Reports(1)In generalAfter the system certification date, the Corporation shall submit, on an annual basis, to the
 Committee on Banking, Housing, and Urban Affairs of the Senate and the
 Committee on Financial Services of the House of Representatives a written
 report of its operations, activities, budget, receipts, and expenditures
 for the preceding 12-month period.(2)Contents of reportThe report required under subsection (a) shall include—(A)an analysis of—(i)with respect to the Mortgage Insurance Fund established under section 303(e)—(I)the current financial condition of the Mortgage Insurance Fund;(II)the exposure of the Mortgage Insurance Fund to economic conditions and an analysis of any stress
 tests conducted with respect to the Fund;(III)an estimate of the resources needed for the Mortgage Insurance Fund to achieve the purposes of this
 Act; and(IV)any findings, conclusions, and recommendations for legislative and administrative actions
 considered appropriate to the future activities of the Corporation;(ii)whether or not the actual reserve ratio of the Mortgage Insurance Fund met—(I)the reserve ratio set for the preceding 12-month period; or(II)the reserve ratio goals established in section 303(e)(7);(iii)the detailed plan of the Corporation to ensure that the goals set for the reserve ratio for the
 Mortgage Insurance Fund are met and maintained for the next 12-month
 period;(iv)the state of the private label mortgage-backed securities market, including the submission of a
 reasonable set of administrative, regulatory, and legislative proposals on
 how to limit the Federal Government’s footprint in the secondary mortgage
 market;(v)how and the extent to which the Corporation and the Small Lender Mutual established under section
 315(a)(1) has fulfilled its obligations to ensure that community and
 mid-size banks, credit unions, and other small lenders have equitable and
 meaningful access to the secondary mortgage market; and(vi)the report required under section 208(b)(2)(B);(B)a discussion of the significant problems faced by consumers in shopping for or obtaining mortgage
 credit or services;(C)a justification of the Corporation’s budget for the preceding 12-month period;(D)a list of the significant rules and orders adopted by the Corporation, as well as other significant
 initiatives conducted by the Corporation, during the preceding 12-month
 period and
 the plan of the Corporation for rules, orders, or other initiatives to be
 undertaken during the next 12-month period;(E)a list, with a brief statement of the issues, of the public supervisory and enforcement actions to
 which the Corporation was a party during the preceding 12-month period;(F)the actions of the Corporation taken regarding rules, orders, and supervisory actions with respect
 to covered entities; and(G)an assessment of significant actions by State attorneys general or State regulators relating to
 Federal law within the Corporation’s jurisdiction.(b)TestimonyAfter the system certification date, the Chairperson shall appear annually before the Committee on
 Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives to provide testimony on
 the report submitted under subsection (a).(c)Reports to the Office of Management and Budget(1)Financial operating plans and forecastsThe Corporation shall provide to the Director of the Office of Management and Budget copies of the—(A)Corporation’s financial operating plans and forecasts as prepared by the Corporation in the
 ordinary course of its operations; and(B)quarterly reports of the Corporation’s financial condition and results of operations as prepared by
 the Corporation in the ordinary course of its operations.(2)Rule of constructionThis subsection shall not be construed to—(A)require any obligation on the part of the Corporation to
 consult with, or obtain the consent or approval of, the Director of the
 Office of Management and Budget with respect to any reports, plans,
 forecasts, or other information referred to in paragraph (1); or(B)authorize any
 jurisdiction or oversight by the Director of the Office of Management and
 Budget over the affairs or operations of the
 Corporation.(d)Audit(1)Annual auditThe Comptroller General of the United States shall annually audit—(A)the financial transactions of the Corporation; and(B)the Mortgage Insurance Fund.(2)Auditing standardsThe audit required under this subsection shall be completed in accordance with the United States
 generally accepted government auditing standards as may be prescribed by
 the Comptroller General.(3)Place of auditThe audit required under this subsection shall be conducted at the place or places where accounts
 of the Corporation are normally kept.(4)AccessNotwithstanding any other provision of law, upon request and in such reasonable form as the
 Comptroller General may request, the Comptroller General shall have access
 to—(A)any records, books, accounts, documents, reports, files, papers, property, or other information
 under the control of or used by the Corporation;(B)any records or other information under the control of a person or entity acting on behalf of or
 under the authority of the Corporation, to the extent that such records or
 other information are relevant to an audit required under this subsection;
 and(C)the officers, directors, employees, financial advisors, staff, working groups, and agents and
 representatives of the Corporation (relating to the activities on behalf
 of the Corporation of such agent or representative).(5)Rule of constructionAll records, books, accounts, documents, reports, files, papers, property, or other information
 referred to in paragraph (4) shall remain in the possession and custody of
 the
 Corporation.(6)CopiesThe Comptroller General may, as the Comptroller General considers appropriate, make and retain
 copies of the records, books, accounts, documents, reports, files, papers,
 property, or other information to which the Comptroller General is granted
 access under paragraph (3).(7)Report(A)Submission to CongressThe Comptroller General shall submit to Congress a report of each annual audit conducted under this
 subsection not later than six and one-half months following the close of
 the year covered by such audit.(B)Required contentThe report required under subparagraph (A) shall—(i)set forth the scope of the audit; and(ii)include—(I)the statement of assets and liabilities, as well as any surplus or deficit;(II)the statement of income and expenses;(III)the statement of sources and application of funds;(IV)such comments and information as the Comptroller General may deem necessary to inform Congress of
 the financial operations and condition of the Corporation and the Mortgage
 Insurance Fund, together with
 such recommendations with respect thereto as the Comptroller General may
 deem advisable; and(V)a description of any program, expenditure, or other financial transaction or undertaking observed
 in the course of the audit, which, in the opinion of the Comptroller
 General, has been carried on or made without authority of law.(C)CopiesA copy of each report required under subparagraph (A) shall be furnished to the President and to
 the Chairperson at the time such report is submitted to Congress.(8)Assistance and costs(A)Permitted use of outside assistanceFor the purpose of conducting an audit under this subsection, the Comptroller General may employ by
 contract, without regard to section 3709 of the Revised Statutes of the
 United States (41 U.S.C. 6101), professional services of firms and
 organizations of certified public accountants for temporary periods or for
 special purposes.(B)Cost of audit covered by Corporation(i)In generalUpon the request of the Comptroller General, the Chairperson shall transfer to the Comptroller
 General from funds available the amount requested by the Comptroller
 General to cover the reasonable costs of any audit and report conducted by
 the Comptroller General pursuant to this subsection.(ii)Credit of fundsThe Comptroller General shall credit funds transferred under clause (i) to the account at the
 United States Treasury established for salaries and expenses of the
 Government Accountability Office, and such amounts shall be available upon
 receipt and without fiscal year limitation to cover the full costs of the
 audit and report.207.Specific offices(a)Establishment(1)General authorityThe Corporation—(A)shall establish within the Corporation any office required to be established by this Act;(B)may establish such other offices or suboffices as are necessary and proper for the functioning of
 the
 Corporation; and(C)may eliminate or consolidate any office or suboffice established under subparagraph (B).(2)AppointmentsExcept as may otherwise be specifically provided, the head of any office established pursuant to
 paragraph (1) shall be appointed by the Board of
 Directors.(b)UnderwritingThe Corporation shall establish an Office of Underwriting in the Corporation, whose functions shall
 include ensuring that eligible single-family mortgage loans that
 collateralize single-family covered securities insured under this Act
 comply with the
 requirements of
 this Act and minimize risk to the Mortgage Insurance Fund.(c)SecuritizationThe Corporation shall establish an Office of Securitization in the Corporation, whose functions
 shall include—(1)overseeing and supervising the Securitization Platform established under part I of subtitle C of
 title III;
 and(2)ensuring that small mortgage lenders have equitable access to—(A)the Securitization Platform, including through the development and facilitation of options such as
 multi-guarantor pools and multi-lender pools of eligible single-family
 mortgage loans to be securitized and issued
 as single-family covered securities through such Platform; and(B)any small lender mutual established or approved under section 315.(d)Federal Home Loan Banks(1)In generalUpon the system certification date, the Corporation shall establish an Office of Federal Home Loan
 Bank Supervision in the Corporation, whose functions shall include—(A)overseeing, coordinating, and supervising the Federal Home Loan Banks and the Federal Home Loan
 Bank System;(B)supervising any authorized subsidiary of 1 or more Federal Home Loan Banks that is an approved
 aggregator pursuant to section 312(m), including with respect to the
 capitalization of any such subsidiary;(C)serving as the central point of coordination within the Corporation with respect to any regulations
 or regulatory actions relating to the role of a Federal Home Loan Bank, or
 subsidiary or joint office thereof, as a covered entity; and(D)monitoring whether any regulation or regulatory action taken with respect to a Federal Home Loan
 Bank, or subsidiary or joint office thereof, approved under section 312 in
 its role as a covered entity does not adversely impact the traditional
 liquidity and advance mission of the Federal Home Loan Banks and Federal
 Home Loan Bank System.(2)Transfer of functionsEffective on the system certification date, there are transferred to the Office of Federal Home
 Loan
 Bank Supervision in the Corporation all functions
 of
 the Federal Housing Finance Agency of the Corporation relating to—(A)the supervision of the Federal Home Loan Banks and the Federal Home Loan Bank System; and(B)all rulemaking authority of the Federal Housing Finance Agency of the Corporation relating to the
 Federal Home Loan Banks and the Federal Home Loan Bank System.208.Office of Consumer and Market Access(a)EstablishmentThe Corporation shall establish an Office of Consumer and Market Access in the Corporation, whose
 functions shall include the responsibilities set forth under subsection
 (b).(b)Responsibilities(1)Administering the Market Access FundThe Office of Consumer and Market Access shall administer the Market Access Fund established under
 section 504.(2)Monitoring, coordinating, and facilitating the needs of underserved markets(A)In generalThe Office of Consumer and Market Access shall—(i)monitor, on a macro level, the national, regional, and area single-family and multifamily housing
 finance markets to identify underserved markets, communities, and
 consumers in accordance with the market segments identified and defined
 under
 section 210;(ii)coordinate with Federal and State agencies regarding existing policies and initiatives that
 address—(I)the housing needs of underserved markets, communities, and consumers; and(II)the affordable housing needs of markets, communities, and consumers; and(iii)provide information on business practices and technical assistance to market participants regarding
 communities identified as underserved with
 regards to addressing the housing needs of consumers in that community.(B)Annual state of covered securities market report(i)In generalThe Office of Consumer and Market Access shall, on an annual basis, submit a report to Congress
 on the state of the covered securities market, and make such report
 available to the public.(ii)Required contentThe report required under clause (i) shall include—(I)an assessment of the extent to which the covered securities market is providing liquidity to
 eligible borrowers in all segments of the mortgage origination primary
 market, including underserved segments identified and defined by the
 Corporation under section 210; and(II)recommendations for such legislative, regulatory, or administrative actions as may be
 necessary to address any deficiencies in the availability of mortgage
 credit in any market or region identified pursuant to clause (i) via
 existing Federal programs or the covered securities market.(iii)Reliance on public dataIn preparing each report required under this subparagraph, the Office of Consumer and Market
 Access—(I)shall use, to the maximum extent practicable, publicly available data and data otherwise collected
 under this Act; and(II)shall not include or review any confidential information or information collected by the
 Corporation as part of its supervisory or examination authorities that is
 confidential.(C)Incentive studyThe Office of Consumer and Market Access shall, on a biennial basis, conduct a study on incentives
 to encourage mortgage lenders and mortgage originators to address the
 housing needs of underserved markets and communities.(D)Inclusion in annual reportThe Corporation shall include the report required in subparagraph (B) and the study required in
 subparagraph (C) in the annual report required under section 206.(E)ConsultationThe Office of Consumer and Market Access shall consult with the Federal Home Loan Banks and any
 small lender mutual established or approved under section 315 on
 approaches,
 methods, and practices designed to address the housing needs of
 underserved markets and communities.209.Office of Multifamily HousingThe Corporation shall establish an Office of Multifamily Housing in the Corporation, whose
 functions shall include—(1)developing, adopting, and publishing specific eligibility criteria to ensure that eligible
 multifamily mortgage loans that collateralize multifamily covered
 securities insured under this Act comply with the requirements of this
 Act;
 and(2)performing any other activity relating to the multifamily housing finance system that the
 Corporation may determine appropriate to fulfill the requirements of this
 Act.210.Equitable access for lenders and borrowers(a)Equitable access in underserved market segments(1)In generalSubject to subsection (b), the Corporation shall seek to support the primary mortgage market for
 eligible mortgage loans on
 an equitable, nondiscriminatory, and non-exclusionary basis to help ensure
 that all eligible
 borrowers have access to mortgage credit, including underserved
 segments of the primary mortgage market as identified and defined by the
 Corporation under paragraph (2).(2)Underserved market segmentsThe Corporation shall, by regulation, identify and define not more than 8 segments of the primary
 mortgage market in which lenders and eligible borrowers have been
 determined to lack equitable access to the housing finance system
 facilitated by the Corporation. The regulation required under this
 paragraph shall set forth the criteria by which the Corporation identified
 such underserved market segments. The identified underserved market
 segments required to be identified and defined under this paragraph may
 include the following:(A)Historically underserved communities, including rural and urban areas.(B)Manufactured housing.(C)Small balance loans.(D)Low- and moderate-income creditworthy borrowers.(E)Preservation of existing housing stock created by State or Federal laws.(F)Affordable rental housing.(3)Reports on serving underserved market segments(A)Annual reportsThe Corporation shall require that each approved guarantor and approved aggregator engaged in a
 covered guarantee transaction or in a covered market-based risk-sharing
 transaction submit on annual basis a public report describing the
 actions taken by such approved guarantor or approved aggregator during the
 year, consistent
 with its business judgment, to provide credit to the underserved market
 segments identified and defined by the Corporation pursuant to this
 subsection, including corporate practices designed to serve such
 identified market segments. The annual report required under this
 subparagraph shall be approved by the board of directors and signed by the
 chief executive officer of the approved guarantor or approved aggregator
 submitting the report.(B)Report templateThe Corporation may establish an optional template for the annual report required under
 subparagraph (A).(C)Report not subject to prior review or approvalAn annual report required under subparagraph (A) shall not be subject to prior review
 or approval by the Corporation.(D)Coordination with other Federal and State agenciesThe Corporation shall, in establishing the requirements for the annual report required under
 subparagraph (A), coordinate with other Federal and State agencies, as
 necessary, to
 reduce
 duplicative reporting requirements.(b)Limitations(1)Limitation on use of authorities and informationIn carrying out this title, the Corporation shall not interfere with the exercise of business
 judgment of an approved aggregator or approved guarantor in determining
 which specific mortgage loans to include in a covered guarantee
 transaction or a covered market-based risk-sharing transaction, including
 through the Corporation’s use of—(A)the approval process for a guarantor or an aggregator established under subtitle B of title III;(B)its general supervisory and examination authorities under subtitle B of title III; or(C)information collected under this section, section 501, or section 208.(2)Rule of constructionNothing in this subsection shall prevent the imposition of the variable incentive-based fees
 authorized in section
 501 nor shall it exempt covered entities from compliance with the Fair
 Housing Act (42 U.S.C. 3601 et
 seq.) and the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.) as
 required in section 408(d).(3)Consistency with safety and soundnessThe Corporation shall take appropriate measures designed to ensure that the requirements under
 this section are implemented in a manner consistent with safety and
 soundness
 principles.211.Office of Taxpayer Protection(a)EstablishmentThe Corporation shall establish an Office of Taxpayer Protection
 whose functions shall include the responsibilities set forth under
 subsection (b).(b)Responsibilities(1)Study on market concentration and the impact of the FMIC guaranteeThe Office of Taxpayer Protection shall, on a semi-annual basis, conduct a study and submit to
 the Committee on Banking, Housing, and Urban Affairs of the Senate and the
 Committee on Financial Services of the House of Representatives a report
 on—(A)market concentration in the secondary mortgage markets, including the exposure of the Mortgage
 Insurance Fund to the top 10 largest approved aggregators and approved
 guarantors,
 as measured by the total outstanding principal balance at origination of
 eligible single-family mortgage loans collateralizing single-family
 covered securities for which such aggregator or guarantor has obtained
 insurance provided under this Act in the previous 6 months;(B)the general state of underwriting standards in the origination of eligible single-family mortgage
 loans and the effect of insurance provided under this Act on such
 underwriting standards;(C)whether the insurance provided under this Act produces a subsidy to any approved entity or
 approved entities;(D)a comparison of the treatment in the secondary mortgage markets of mortgage-backed securities
 guaranteed by the Government National Mortgage Association and
 single-family covered securities insured under this Act, which shall
 include—(i)a discussion of the characteristics of—(I)mortgage loans collateralizing mortgage-backed securities guaranteed by the Government National
 Mortgage Association; and(II)eligible single-family mortgage loans collateralizing single-family covered securities insured
 under this Act; and(ii)an analysis of any actions taken in the secondary mortgage markets to manipulate the guarantee
 provided by the Government National Mortgage Association and the insurance
 provided under this Act to the advantage of the secondary mortgage
 markets; and(E)what steps the Corporation has taken to minimize any potential long-term costs to the taxpayers and
 the Mortgage Insurance Fund relating to risks identified in subparagraphs
 (A) through (D).(2)Annual report on taxpayer protection and the exposure of the Mortgage Insurance Fund(A)In generalThe Office of Taxpayer Protection shall, on an annual basis, submit a report to the Committee on
 Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives containing
 the information required under subparagraph (B).(B)Required contentThe report required under subparagraph (A) shall—(i)include an analysis of the adequacy of—(I)the first loss position required under this Act, including the sufficiency of any permissible
 risk-sharing or risk mitigation permitted as a substitute for equity
 capital intended to cover the initial credit losses on a covered security
 prior to use of any amounts in the Mortgage Insurance Fund, the ability
 of the first loss position to absorb credit loss on
 covered securities, and to protect taxpayers; and(II)the performance of eligible single-family mortgage loans collateralizing single-family covered
 securities insured under this Act based upon current underwriting
 standards and how that performance differs from the performance of
 noneligible mortgage loans based upon the underwriting
 standards for such noneligible mortgage loans, including with respect to—(aa)debt to income ratio;(bb)loan to value ratios;(cc)credit history;(dd)loan documentation;(ee)occupancy status;(ff)credit enhancements;(gg)housing counseling by a HUD-approved housing counseling agency;(hh)loan payments;(ii)the purpose of the loan, such as to refinance or purchase a home;(jj)the type of loan product, such as a 30-year fixed interest rate mortgage loan, a 15-year fixed
 interest rate mortgage loan, or an adjustable interest rate mortgage loan;(kk)the mortgage loan origination channel; and(ll)such other underwriting criteria that would be useful to the Director of Taxpayer Protection; and(ii)provide recommendations for such legislative, regulatory, or administrative actions to—(I)address any need to further limit overexposure of the Mortgage Insurance Fund to any 1 approved
 entity or business practice;(II)foster and encourage a robust private secondary mortgage market for noneligible mortgage loans and
 mortgage-backed securities that are not
 guaranteed by the Government National Mortgage Association; and(III)assist the Corporation in protecting taxpayers, including
 a
 recommendation as to whether a counter-cyclical increase of the reserve
 ratio of the Mortgage
 Insurance Fund or of the capital standards required of individual approved
 guarantors is necessary to protect taxpayers.(3)Annual report on system-wide leverageThe Office of Taxpayer Protection shall, on an annual basis, submit to the Committee on Banking,
 Housing, and Urban Affairs of the Senate and the Committee on Financial
 Services of the House of Representatives a report on
 system-wide leverage in the secondary mortgage market.(4)Annual report on early payment defaultsThe Office of Taxpayer Protection shall, on an annual basis, submit to the Committee on Banking,
 Housing, and Urban Affairs of the Senate and the Committee on Financial
 Services of the House of Representatives a report on early
 payment defaults on eligible single-family mortgage loans for the
 preceding year, which shall include any eligible single-family mortgage
 loan that becomes delinquent or that is in default within 24 months of the
 origination of
 the loan.(5)Inclusion in annual reportThe Corporation shall include the reports required under paragraphs (2) and (3) in the annual
 report required under section 206.(6)Reliance on public dataIn preparing each report required under this section, the Office of Taxpayer Protection—(A)shall use, to the maximum extent practicable, publicly available data and data otherwise collected
 under this Act; and(B)shall not include or review any confidential information or information collected by the
 Corporation as part of its supervisory or examination authorities that is
 confidential.IIIDuties and responsibilities of the FMICADuties and authorities301.Duties and responsibilities(a)DutiesThe principal duties of the Corporation shall be to—(1)carry out this Act in a manner that fulfills the purposes of the Corporation as described in
 section 201(b);(2)minimize any potential long-term cost to the taxpayer, including through the use of the Mortgage
 Insurance Fund, the assessment of insurance fees, and the approval of
 approved entities and credit risk-sharing mechanisms;(3)facilitate fair access to the secondary mortgage market for small mortgage lenders originating
 eligible single-family and multifamily mortgage loans, including through
 the
 establishment, approval, and oversight of small lender mutuals;(4)ensure integrity and discipline in the mortgage market, particularly by monitoring the safety and
 soundness of regulated entities and approved entities;(5)ensure that approved entities maintain the capacity to further the requirements of the Corporation
 pursuant to section 201(b)(5) and that approved guarantors, approved
 multifamily
 guarantors, and approved aggregators are in compliance with section
 210(a)(3);(6)promote the standardization of the secondary mortgage market through the use of uniform
 securitization agreements, servicing agreements, and the Securitization
 Platform;(7)increase transparency in single-family and multifamily mortgage markets, including through the
 National Mortgage Database; and(8)ensure continued, widespread availability of an affordable, long-term, fixed rate, prepayable
 mortgage, such as a 30-year fixed rate mortgage.(b)Scope of authorityThe authority of the Corporation shall include the authority to exercise such incidental powers as
 may be necessary or appropriate to fulfill the duties and responsibilities
 of the Corporation set forth in this Act.(c)Delegation of authorityThe Board of Directors may delegate to any duly authorized employee or representative any
 power vested in the Corporation by law.302.Standards for credit risk-sharing mechanisms(a)Approval(1)AuthorityThe Corporation shall develop, adopt, and publish, after notice and comment, standards for the
 consideration and, as
 appropriate, the approval of credit risk-sharing mechanisms that shall
 require that the first loss
 position of private market holders on single-family
 covered securities is—(A)adequate to cover losses that might be incurred in a
 period of economic stress, including national and regional
 home price declines, such as those observed during moderate to
 severe recessions in the United States; and(B)not less than 10 percent of the principal or face value of the single-family covered security at
 the time of
 issuance.(2)Fraud prohibition(A)ProhibitionIt shall be unlawful for any person to intentionally create and issue any instrument or security
 as a first loss position on a single-family covered security that such
 person knows or in the exercise of reasonable care should have known does
 not satisfy the requirements of this section.(B)PenaltyViolations of subparagraph (A) shall be punishable in accordance with section 1343 of title 18,
 United States
 Code.(b)Approval of credit risk-sharing mechanisms(1)Considerations for approval of
 various mechanismsIn approving credit risk-sharing mechanisms under subsection
 (a), the Corporation shall—(A)consider proposals
 that include credit-linked structures or other instruments that are
 designed to absorb credit losses on single-family covered securities;(B)consider any
 credit risk-sharing mechanisms undertaken by the enterprises;(C)ensure that the first loss position is fully funded to meet the requirements of subsection
 (a)(1)(B);(D)ensure that each type of
 proposed mechanism—(i)enables the Corporation to verify that the first loss position is fully funded;(ii)minimizes any
 potential long-term cost to the taxpayer;(iii)accommodates the availability of mortgage credit on equal and transparent terms in the
 secondary mortgage market for—(I)small mortgage lenders; and(II)lenders from all geographic locations, including rural locations;(iv)allows for broad availability of mortgage credit and secondary mortgage market financing through
 fluctuations in the business cycle for eligible single-family lending
 across all—(I)regions;(II)localities;(III)institutions;(IV)property
 types, including housing serving renters; and(V)eligible borrowers;(v)fulfills the requirements under section 314 with respect to loan modifications and foreclosure
 prevention;(vi)does not prevent the securitization of refinanced or modified eligible single-family mortgage loans
 within
 single-family covered securities during a period when the authority under
 section 305(i) is exercised;(vii)does not diminish
 market liquidity and resiliency;(viii)does not prevent the refinancing of underwater eligible single-family mortgage loans; and(ix)does not present an unnecessary risk to the Mortgage Insurance Fund;(E)consider whether the approval of any credit risk-sharing mechanism will impair the operation and
 liquidity of forward market executions for eligible single-family mortgage
 loans and
 single-family covered securities, such as the To-Be-Announced market,
 taking into consideration other risk-sharing options available to market
 participants; and(F)take necessary steps to prevent abuse and deceptive practices in the use of the credit risk-sharing
 mechanisms, including by—(i)creating appropriate standards relating to—(I)the vintages or categories of covered securities that are referenced by a credit risk-sharing
 mechanism;(II)standardization of the terms and features of credit risk-sharing structures; and(III)measures that prevent the duplicative sale by a guarantor of the same mortgage credit risk in the
 same pool of eligible single-family mortgage loans; and(ii)requiring additional disclosures and affirmative representations that must be made by entities that
 create and issue credit risk-sharing mechanisms.(2)Notice and publicationThe Corporation shall—(A)provide prompt notice to any person seeking approval for a credit risk-sharing mechanism of the
 approval or denial of that credit risk-sharing mechanism; and(B)make available detailed information regarding approved mechanisms on the website of the
 Corporation.(3)Review of approved credit risk-sharing mechanisms(A)Authority to suspendThe Corporation may, from time to time and in its discretion—(i)conduct reviews of approved credit risk-sharing mechanisms to determine whether such credit
 risk-sharing mechanisms continue to satisfy the considerations for
 approval under paragraph (1);(ii)assess the functioning of the forward market for eligible single-family mortgage loans and
 single-family covered
 securities, including the To-Be-Announced market, to determine whether any
 approved credit risk-sharing mechanism has adversely affected the
 liquidity or resiliency of such market; and(iii)suspend the approval of—(I)any credit risk-sharing mechanism that it determines does not satisfy the
 considerations for approval under paragraph (1); or(II)any credit risk-sharing mechanism that it determines has adversely affected the liquidity or
 resiliency of the forward market for eligible single-family mortgage loans
 and
 single-family covered securities, including the To-Be-Announced market.(B)Reconsideration(i)Development of expedited processThe Corporation shall develop an expedited process for the reinstatement of the approval of any
 credit risk-sharing mechanism that is suspended under subparagraph
 (A)(iii).(ii)Revision of mechanismIf a credit risk-sharing mechanism is suspended under subparagraph (A)(iii), the
 credit risk-sharing mechanism may be adapted or revised, as necessary, for
 reconsideration for reinstatement of the approval of the credit
 risk-sharing mechanism under the expedited process developed under clause
 (i).(C)No effect on existing mechanismsThe suspension of the approval of any credit risk-sharing mechanism under subparagraph (A)(iii)
 shall have no effect on the status of single-family covered securities and
 related instruments using the credit risk-sharing mechanism that were
 issued prior to the suspension.(4)Additional credit risk-sharing mechanisms(A)ApprovalIn addition to credit risk-sharing mechanisms approved by the Corporation under subsection (a), the
 Corporation shall consider and may approve additional fully-funded credit
 risk-sharing
 mechanisms that—(i)may be employed by an approved guarantor to manage the credit risk relating to guarantees provided
 for single-family covered securities; and(ii)do not represent the first loss position with respect to single-family covered securities.(B)Rule of constructionNothing in this paragraph shall be construed to limit an approved guarantor from engaging in other
 forms of risk-sharing or risk mitigation using mechanisms that have not
 been considered or approved by the Corporation.(5)Reports(A)In
 generalNot later than 1 year after the agency transfer date, and annually thereafter until the system
 certification date, the
 Corporation shall submit a report to the Committee on
 Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives that—(i)discusses each credit risk-sharing mechanism that the Chairperson considered in carrying out the
 requirements of this section;(ii)describes how the
 operation and execution of each approved credit risk-sharing mechanism
 fulfills the
 requirements of this section; and(iii)explains how
 the Corporation arrived at the determinations made under clause (ii),
 including a discussion of the data considered.(B)Subsequent
 reportsOn the system certification date and annually thereafter, the Corporation shall publish in the
 Federal Register a list of the credit risk-sharing mechanisms that the
 Corporation approved or suspended,
 addressing the identical concerns set forth under clauses (i) through
 (iii)
 of subparagraph (A) and, with respect to any suspension, the
 considerations under paragraph (1) that are no longer satisfied.(C)Multifamily reportsThe Corporation shall include in the reports prepared under subparagraphs (A) and (B) a description
 of the credit risk-sharing mechanisms approved by the Corporation for
 multifamily guarantors pursuant to section 703.(c)Collateral diversification standardsThe Corporation shall establish standards, after notice and comment, for the appropriate minimum
 level of diversification for
 eligible single-family mortgage loans that collateralize single-family
 covered securities that are issued subject to an approved credit
 risk-sharing mechanism in order to reduce the credit risk such
 single-family covered securities could pose to the Mortgage Insurance
 Fund.(d)Rule of constructionNothing in this section shall be construed to require the Corporation to approve any credit
 risk-sharing mechanism.(e)Applicability of the Commodity Exchange Act and Securities Act of 1933(1)Exemption from the Commodity Exchange Act; prior consultation required(A)ExemptionNo counterparty that enters into a swap, as that term is defined in section 1a of the Commodity
 Exchange Act (7 U.S.C. 1a), for purposes of structuring any credit
 risk-sharing mechanism that is approved by the Corporation pursuant to
 this
 section, which credit risk-sharing mechanism is designed to be used or is
 used by a private market holder to assume losses and to reduce the
 specific risks arising from losses realized under such credit risk-sharing
 mechanism associated
 with any single-family covered security insured in accordance with section
 303 or section 305, shall be deemed, by reason of such swap transaction,
 to be a commodity pool, as that term is defined in section 1a of the
 Commodity Exchange Act (7 U.S.C. 1a).(B)Prior consultation requiredBefore approving any credit risk-sharing mechanism that would be exempt from the Commodity Exchange
 Act pursuant to subparagraph (A), the Corporation shall consult with the
 Commodity Futures Trading Commission.(2)Exemption from section 27B of the Securities Act of 1933; prior consultation required(A)ExemptionAny credit risk-sharing mechanism that is approved by the Corporation pursuant to this section,
 which credit risk-sharing mechanism is designed to be used or is used by a
 private market holder to assume losses and to reduce the
 specific risks arising from losses realized under such credit risk-sharing
 mechanism associated with any
 single-family covered security
 insured in accordance with section 303 or section 305, shall be exempt
 from section 27B of the Securities Act of 1933 (15 U.S.C. 77z-2a).(B)Prior consultation requiredBefore approving any credit risk-sharing mechanism that would be exempt from section 27B of the
 Securities Act of 1933 pursuant to subparagraph (A), the Corporation shall
 consult with the Securities and Exchange Commission.303.Insurance; Mortgage Insurance Fund(a)AuthorityThe Corporation shall, in exchange for a fee in accordance with subsection (e)(8), insure the
 payment of principal and interest on a covered security with respect to
 any failure to pay on such covered security subject to the
 requirements of this section.(b)Terms and conditions(1)In generalThe Corporation shall, by regulation, establish terms and conditions for the provision of insurance
 under this Act.(2)Single-familyThe terms and conditions required to be established under paragraph (1) shall, for single-family
 covered securities, include terms and conditions that ensure—(A)eligible single-family mortgage loans collateralizing single-family covered securities have been
 delivered to the
 Platform; and(B)with respect to each single-family covered security, either—(i)private market holders have taken a first loss position that satisfies the requirements of section
 302; or(ii)an approved guarantor has provided a guarantee in satisfaction of the requirements of section 311.(3)MultifamilyThe terms and conditions required to be established under paragraph (1) shall, for multifamily
 covered securities, include terms and conditions that ensure, with respect
 to each multifamily covered security, that an approved multifamily
 guarantor
 has provided a guarantee in satisfaction of the requirements of section
 703.(c)Cash payments; continued operationsThe Corporation shall facilitate the timely and unconditional payment of principal and interest on
 covered securities
 insured under this Act by paying, in cash when due, any shortfalls in
 principal and interest due on the covered
 security, and continuing to charge and collect any fees for the provision
 of insurance (in accordance with
 subsection (e)(8)) relating to the covered security in the event of any
 losses that may be incurred (1) in excess of a payment default on the
 covered security that exceeds the first loss position assumed by a private
 market holder, (2) in the case of a covered security that
 is guaranteed by an approved guarantor or approved
 multifamily guarantor as a result of the insolvency of the guarantor, or
 (3) upon the failure of the servicer or guarantor to transfer to the bond
 administrator for the covered security
 funds in amounts necessary to make timely payment of principal and
 interest due on the covered security.(d)Cost recoveryIn the event the Corporation makes a payment on a covered security based on subsection (c)(3), the
 Corporation shall recover such amount paid, and reasonable costs and
 expenses, from the servicer or guarantor.(e)Mortgage Insurance Fund(1)EstablishmentOn the agency transfer date, there shall be established the Mortgage Insurance Fund, which the
 Corporation shall—(A)maintain and administer;(B)use to carry out the insurance functions authorized under this Act, including any function or
 action authorized under section 305; and(C)invest in accordance with the requirements of paragraph (10).(2)DepositsThe Mortgage Insurance Fund shall be credited with any—(A)fee amounts required to be deposited in the Fund under this section;(B)amounts earned on investments pursuant to paragraph (10);(C)assessment amounts authorized to be deposited into the Fund under section 405(b); and(D)assessment amounts required to be deposited into the Fund under section 608(c).(3)Fees for single-family and multifamily covered securitiesIn determining the amount of any fee to be charged by the Corporation under this section, the
 Corporation shall charge a separate fee for single-family covered
 securities and multifamily covered securities, as appropriate for each
 asset class.(4)Separate accounting requiredThe Corporation shall keep and maintain separate accounting for deposits in the Mortgage Insurance
 Fund related to fee amounts charged and collected for the insurance of
 single-family covered securities and multifamily covered securities.(5)Fiduciary responsibilityThe Corporation has the responsibility to ensure that the Mortgage Insurance Fund remains
 financially sound.(6)Use and treatment of amounts in the Fund(A)In generalThe Mortgage Insurance Fund shall be solely available to the Corporation for use by the Corporation
 to carry out the functions authorized by this Act, for the expenses of
 the Corporation, and for—(i)compensation of the employees of the Corporation;(ii)purposes of—(I)funding the CSP; and(II)establishing the Securitization Platform under section 321, multifamily subsidiaries under section
 701, the initial Small
 Lender Mutual under section 315, and any other entity authorized by this
 Act
 that facilitates an orderly transition to the new housing finance system;
 and(iii)covering all other expenses of the Corporation.(B)ProhibitionThe Mortgage Insurance Fund may not be used or otherwise diverted to cover any other expense of the
 Federal Government.(C)Exemption from apportionmentNotwithstanding any other provision of law, amounts in the Mortgage Insurance Fund shall not be
 subject to
 apportionment for the purposes of chapter 15 of title 31, United States
 Code, or under any other authority.(D)Not Government fundsAmounts in the Mortgage Insurance Fund shall not be construed to be Government or public funds or
 appropriated money.(7)Reserve ratio goals for Mortgage Insurance FundThe Corporation shall—(A)endeavor to ensure that the Mortgage Insurance Fund attains a reserve ratio—(i)of 1.25 percent of the sum of the outstanding principal balance of the covered securities for which
 insurance is being provided under this title within 5 years of the system
 certification date; and(ii)of 2.50 percent of the sum of the outstanding principal balance of the covered securities for which
 insurance is being provided under this title within 10 years of the system
 certification date; and(B)after the expiration of the period referred to in subparagraph (A)(ii), endeavor to ensure that the
 Mortgage Insurance Fund maintains a reserve ratio of not less than 2.50
 percent of the sum of the outstanding principal balance of the covered
 securities for which insurance is being provided under this title.(8)Maintenance of reserve ratio; establishment of fees(A)Establishment of feesThe Corporation shall charge and collect a fee, and may in its discretion increase or decrease such
 fee, in connection with any insurance provided under this title to—(i)achieve and maintain the reserve ratio goals established under paragraph (7); and(ii)fund the operations of the Corporation.(B)Fee considerationsIn establishing fees under subparagraph (A), the Corporation shall consider—(i)the expected operating expenses of the Mortgage Insurance Fund;(ii)the risk of loss to the Mortgage Insurance Fund in carrying out the requirements under this Act;(iii)the risk presented by, and the loss absorption capacity of, the credit risk-sharing mechanism or
 guarantee
 that is provided on the pool of eligible mortgage loans collateralizing
 the covered security to be insured under this title;(iv)economic conditions generally affecting the mortgage markets;(v)the extent to which the reserve ratio of the Mortgage Insurance Fund met—(I)the reserve ratio set for the preceding 12-month period; or(II)the reserve ratio goals established in paragraph (7); and(vi)any other factors that the Corporation determines appropriate.(C)Fee uniformityThe fee required under subparagraph (A)—(i)except as provided in subparagraph (D), shall be set at a uniform amount applicable to all
 institutions purchasing insurance under this
 title;(ii)may not vary—(I)by geographic location; or(II)by the size of the institution to which the fee is charged; and(iii)may not be based on the volume of insurance to be purchased.(D)Separate and distinct fees based on credit risk-sharing mechanismsNothing in subparagraph (C) shall prohibit or be construed to prohibit the Corporation from
 charging separate and distinct fees under this paragraph based on the type
 or form of credit risk-sharing mechanism applicable to the covered
 security to be insured under this title.(E)Deposit into Mortgage Insurance FundAny fee amounts collected under this paragraph shall be deposited in the Mortgage Insurance Fund.(9)Full faith and creditThe full faith and credit of the United States is pledged to the payment of all amounts from the
 Mortgage Insurance Fund which may be required to be paid under any
 insurance provided under this title.(10)Investments(A)In generalThe Board of Directors may request the Secretary of the Treasury to invest such portion of amounts
 in the Mortgage Insurance Fund that, in the judgment of the Board, is not
 required to meet the current needs of the Corporation.(B)Eligible investmentsPursuant to a request under subparagraph (A), the Secretary of the Treasury shall invest such
 portions in obligations of the United States with maturities suitable to
 the needs of the Corporation, as determined by the Board, and bearing
 interest at a rate
 determined by the Secretary of the Treasury, taking into consideration, at
 the time of the investment, market yields on outstanding marketable
 obligations of the United States of comparable maturity.(C)Prohibited investmentsAmounts in the Mortgage Insurance Fund may not be invested in any—(i)covered security insured under this title; or(ii)mortgage-backed security issued by the enterprises.(f)Mandatory loss review by the Inspector General of
 the Federal Mortgage Insurance Corporation(1)In generalIf the Mortgage Insurance Fund is required to make any payment of principal or interest, or both,
 on a covered security with respect to losses incurred on such covered
 security to any holder of such covered security, the Inspector General of
 the Federal Mortgage Insurance Corporation shall—(A)review and make a written report to the Corporation regarding the decision of the Corporation to
 insure such covered security and the supervision by the Corporation of all
 market participants involved in the creation, issuance, servicing,
 guarantee of, or insurance of such covered security, which shall—(i)ascertain why the covered security resulted in a loss to the Mortgage Insurance Fund; and(ii)make recommendations for preventing any such loss in the future; and(B)provide a copy of the report required under subparagraph (A) to—(i)the Comptroller General of the United States;(ii)the appropriate Federal banking agency or State regulatory authority, as appropriate, of any market
 participant involved in the creation,
 issuance, servicing, guarantee of, or insurance of such covered security;
 and(iii)the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial
 Services of the House of Representatives.(2)Deadline for reportThe Inspector General of the Federal Mortgage Insurance Corporation shall comply with paragraph (1)
 as expeditiously as possible, but in no event shall the report required
 under paragraph (1) be submitted later than 6 months after the date on
 which the loss was incurred.(3)Public disclosure required(A)In generalThe Corporation shall disclose any report on losses required under this subsection, upon request
 under section 552 of title 5, United States Code, without excising—(i)any portion under section 552(b)(5) of that title; or(ii)any information under paragraph (4) (other than trade secrets) or paragraph (8) of section 552(b)
 of that title.(B)ExceptionSubparagraph (A) does not require the Corporation to disclose the name of any holder of the covered
 security, or information from which the identity of such a person could
 reasonably be ascertained.(4)Review by Comptroller GeneralThe Comptroller General of the United States shall, under such conditions as the Comptroller
 General determines to be appropriate, review any report made under
 paragraph (1) and recommend to the Corporation improvements in the
 supervision of market
 participants.304.Loan limits; Housing Price Index(a)EstablishmentThe Corporation shall establish limitations governing the maximum original principal obligation of
 eligible single-family mortgage loans that may collateralize a covered
 security to be insured by the Corporation under this title.(b)Calculation of amountThe limitation set forth under subsection (a) shall be calculated with respect to the total
 original principal obligation of the eligible single-family mortgage loan
 and not merely
 with
 respect to the amount insured by the Corporation.(c)Maximum limits(1)In generalExcept as provided in paragraph (2), the maximum limitation amount under this subsection shall not
 exceed $417,000 for a mortgage loan secured by a 1-family residence, for a
 mortgage loan secured by a 2-family residence the limit shall equal 128
 percent of the limit for a mortgage loan secured by a 1-family residence,
 for a mortgage loan secured by a 3-family residence the limit shall equal
 155 percent of the limit for a mortgage loan secured by a 1-family
 residence, and for a mortgage loan secured by a 4-family residence the
 limit shall equal 192 percent of the limit for a mortgage loan secured by
 a 1-family residence, except that such maximum limitations shall be
 adjusted effective January 1 of each year beginning after the effective
 date of this Act, subject to the limitations in this paragraph. Each
 adjustment shall be made by adding to each such amount (as it may have
 been previously adjusted) a percentage thereof equal to the percentage
 increase, during the most recent 12-month or 4-quarter period ending
 before the time of determining such annual adjustment, in the housing
 price index maintained by the Chairperson pursuant to subsection (d). If
 the change in such house price index during the most recent 12-month or
 4-quarter period ending before the time of determining such annual
 adjustment is a decrease, then no adjustment shall be made for the next
 year, and the next upward adjustment shall take into account prior
 declines in
 the house price index, so that any adjustment shall reflect the net change
 in the house price index since the last adjustment. Declines in the house
 price index shall be accumulated and then reduce increases until
 subsequent increases exceed prior declines.(2)High-cost area limitsThe limitations set forth in paragraph (1) may be increased by not more than 50 percent
 with
 respect to properties located in Alaska, Guam, Hawaii, and the Virgin
 Islands. Such foregoing limitations shall also be increased, with respect
 to properties of a particular size located in any area for which 115
 percent of the median house price for such size residence exceeds the
 limitation for such size residence set forth under paragraph (1), to the
 lesser of 150 percent of such limitation for such size residence or the
 amount that is equal to 115 percent of the median house price in such area
 for such size residence.(d)Housing Price Index(1)National IndexThe Corporation shall establish and maintain a method of assessing a national average single-family
 house price for use in calculating the loan limits for eligible
 single-family mortgage loans under subsection (c), and other averages as
 the
 Corporation considers appropriate, including—(A)averages based on different geographic regions; and(B)an average for houses whose mortgage collateralized single-family covered securities.(2)ConsiderationsIn establishing the method described under subsection (a), the Corporation may take into
 consideration the data collected in carrying out the functions described
 under section 332, and such other data, existing house price indexes, and
 other measures as the Corporation considers appropriate.305.Authority to protect taxpayers in unusual and exigent market conditions(a)In generalIf the Corporation, upon the written agreement of the Chairman of the Board of Governors of the
 Federal Reserve System and the Secretary of the Treasury, and in
 consultation with the Secretary of Housing and Urban Development,
 determines that unusual and exigent circumstances have created or threaten
 to create an anomalous lack of mortgage credit availability within
 the single-family housing market, multifamily housing market, or entire
 United States housing market that could
 materially and severely disrupt the functioning of the housing finance
 system of the United States, the Corporation may, for a period of 6
 months—(1)provide insurance in accordance with section 303 to any single-family covered security regardless
 of whether such
 security has satisfied the requirements of
 section 302; and(2)establish provisional standards for approved entities, notwithstanding any standard required under
 subtitle B or section 703, pursuant to section 607.(b)ConsiderationsIn exercising the authority granted under subsection (a), the Corporation shall consider the
 severity of the conditions present in the housing markets and the risks
 presented to the Mortgage Insurance Fund in exercising such authority.(c)Terms and conditionsInsurance provided under subsection (a) shall be subject to such additional or different
 limitations, restrictions, and regulations as the Corporation may
 prescribe.(d)Bailout strictly prohibitedIn exercising the authority granted under subsection (a), the Corporation may not—(1)provide aid to an approved entity or an affiliate of the approved entity, if such approved entity
 is in bankruptcy or any other Federal or State insolvency proceeding; or(2)provide aid for the purpose of assisting a single and specific company to avoid bankruptcy or any
 other Federal or State insolvency proceeding.(e)NoticeNot later than 7 days after authorizing insurance or establishing provisional standards under
 subsection (a), the Corporation shall
 submit to the Committee on Banking, Housing, and Urban Affairs of the
 Senate and the Committee on Financial Services of the House of
 Representatives a report that includes—(1)the justification for the exercise of authority to provide such insurance or establish such
 provisional standards;(2)evidence that unusual and exigent circumstances have created or threatened to create an anomalous
 lack of mortgage credit availability within the single-family housing
 market, multifamily housing market, or entire United States housing market
 that could materially and severely disrupt the functioning of the housing
 finance
 system of the United States; and(3)evidence that failure to exercise such authority would have undermined the safety and soundness of
 the housing finance system.(f)Additional exercise of authority(1)In generalSubject to the limitation under subsection (g), the authority granted to the Corporation under
 subsection (a) may be exercised for 2 additional
 9-month periods within any given 3-year period,
 provided that the Corporation, upon the written agreement of the
 Chairman of the Board of Governors of the Federal Reserve System and the
 Secretary of the Treasury, and in consultation with the Secretary of
 Housing and Urban Development—(A)determines—(i)for a second exercise of authority under subsection (a), by an affirmative vote of 2/3 or more of the Board of Directors then serving, that a
 second
 exercise of authority under subsection (a) is necessary; or(ii)for a third exercise of authority under subsection (a), by an affirmative vote of 2/3 or more of the Board of Directors then serving, and an
 affirmative vote of 2/3 or more of the Board of Governors of the Federal Reserve
 System then serving, that a third exercise of authority under this section
 is necessary; and(B)provides notice to Congress, as provided under subsection (e).(2)Order of exercise of authorityAny additional exercise of authority under this subsection may occur consecutively or
 non-consecutively.(g)LimitationThe authority granted to the Corporation under this section may not be exercised more than 3 times
 in any given 3-year period, which 3-year period shall commence upon the
 initial exercise of authority under subsection (a).(h)Normalization and reduction of riskFollowing any exercise of authority under this section, the Corporation shall—(1)establish a timeline for approved entities to meet the
 approval standards set forth in this Act; and(2)in a manner and pursuant to a timeline that will minimize losses to the Mortgage Insurance Fund,
 establish a program to either—(A)sell, in whole or in part, the first loss position on covered securities issued pursuant to this
 section to private market holders; or(B)transfer for value to approved entities, or work with approved entities to sell, in whole or in
 part, the first lost position on covered securities issued pursuant to
 this section.(i)Authority to respond to sustained national home price decline(1)AuthorityIn the event of a significant decline of national home prices, in at least 2 consecutive calendar
 quarters, the Corporation, by an affirmative vote of 2/3 or more of the Board of Directors then serving, may for a
 period of 6 months permit the transfer of guarantees of eligible mortgage
 loans that secure covered securities if such eligible mortgage loans are
 refinanced, regardless of the value of the underlying collateral securing
 such eligible mortgage loans.(2)Additional exercise of authorityThe authority granted to the Corporation under paragraph (1) may be exercised for additional
 6-month periods, if upon each additional extension of such authority there
 is an affirmative vote of 2/3 or more of the Board of Directors then serving.(3)LimitationThe Corporation shall not provide insurance under this section to any covered security that
 includes mortgage loans that do not meet the definition of an eligible
 mortgage loan, as defined in this Act, except for mortgage loans
 refinanced from eligible mortgage loans in covered securities.(4)Rule of constructionNo provision in this section shall be construed as permitting the Corporation to lower any other
 requirement related to the requirements set forth under the definition of
 an eligible
 mortgage loan.306.General powers(a)Corporate powersThe Federal Mortgage Insurance Corporation shall have the power—(1)to adopt, alter, and use a corporate seal, which shall be judicially noticed;(2)to enter into, execute, and perform contracts, leases, cooperative agreements, or other
 transactions, on such
 terms as it may deem appropriate, with any agency or instrumentality of
 the United States, or with any political subdivision thereof, or with any
 person, firm, association, or corporation;(3)to execute, in accordance with its bylaws, all instruments necessary or appropriate in the exercise
 of any of its powers;(4)in its corporate name, to sue and to be sued, and to complain and to defend, in any court or
 tribunal of
 competent jurisdiction, Federal or State, but no attachment, injunction,
 or other similar process, mesne or final, shall be issued against the
 property of the Corporation;(5)to conduct its business without regard to any qualification or similar statute in any State of the
 United States;(6)to lease, purchase, or acquire any property, real, personal, or mixed, or any interest therein, to
 hold, rent, maintain, modernize, renovate, improve, use, and operate such
 property, and to sell, for cash or credit, lease, or otherwise dispose of
 the same, at such time and in such manner as and to the extent that it may
 deem necessary or appropriate;(7)to prescribe, repeal, and amend or modify, rules, regulations, or requirements governing the manner
 in which its general business may be conducted;(8)to accept gifts or donations of services, or of property, real, personal, or mixed, tangible, or
 intangible, in aid of any of its purposes;(9)to appoint and supervise personnel employed by the Corporation;(10)to establish and maintain divisions, units, or other offices within the Corporation, including
 those established in sections 207, 208, 209, and 211 in order to carry
 out
 the
 responsibilities of this Act, and to satisfy the requirements of other
 applicable law; and(11)to manage the affairs of the Corporation and conduct the
 business of the Corporation, as necessary.(b)Litigation authority(1)In generalIn enforcing any provision of this Act, any regulation or order prescribed under this Act, or any
 other provision of law, rule, regulation, or order, or in any other
 action, suit, or proceeding to which the Corporation is a party or in
 which the Corporation is interested, and in the administration of
 conservatorships and receiverships, the Corporation may act in the
 Corporation’s own name and through attorneys or other agents acting on
 behalf of the
 Corporation.(2)Subject to suitExcept as otherwise provided by law, the Corporation shall be subject to suit (other than suits for
 claims for money damages) by a regulated entity or market participant with
 respect to any matter under this Act or any other applicable provision of
 law, rule, order, or regulation under this Act, in the United States
 district court for the judicial district in which the regulated entity or
 market participant has its principal place of business, or in the United
 States District Court for the District of Columbia, and the Corporation
 may be served with process in the manner prescribed by the Federal Rules
 of Civil Procedure.(c)ExpendituresExcept as may be otherwise provided in this title, the Corporation shall determine the necessity
 for, and the character and amount of its obligations and expenditures, and
 the manner in which they shall be incurred, allowed, paid, and accounted
 for.(d)Exemption from certain taxesThe Corporation, including its franchise, capital, reserves, surplus, mortgage loans or other
 security holdings, and income shall be exempt from all taxation now or
 hereafter imposed by the United States, by any territory, dependency, or
 possession thereof, or by any State, county, municipality, or local taxing
 authority, except that any real property of the Corporation shall be
 subject to State, county, municipal, or local taxation to the same extent
 according to its value as other real property is taxed.(e)Exclusive use of nameNo individual, association, partnership, or corporation, except the body corporate named under
 section 201, shall hereafter use the words Federal Mortgage Insurance Corporation or any combination of such words, as the name or a part thereof under which such individual,
 association, partnership, or corporation shall do business. Violations of
 the foregoing sentence may be enjoined by any court of general
 jurisdiction at the suit of the proper body corporate named under section
 201. In any such suit,
 the plaintiff may recover any actual damages flowing from such violation,
 and, in addition, shall be entitled to punitive damages (regardless of the
 existence or nonexistence of actual damages) of not exceeding $1,000 for
 each day during which such violation is committed or repeated.(f)Fiscal agentsThe Federal Reserve banks are authorized and directed to act as depositories, custodians, and
 fiscal agents for the Corporation, for its own account or as fiduciary,
 and such banks shall be reimbursed for such services in such manner as may
 be agreed upon, and the Corporation may itself act in such capacities, for
 its own account or as fiduciary, and for the account of others.(g)Other powersThe Corporation is authorized to assess and collect fees on regulated entities and approved
 entities, including for applications, examinations, and other purposes, as
 authorized by this Act.(h)Federal Home Loan Bank assessmentThe Corporation shall have the authority to assess a fee on the Federal Home Loan Banks to cover
 the necessary costs related to supervising the Federal Home Loan Banks.
 The costs associated with the secondary market activities of the Federal
 Home Loan Banks pursuant to section 312 shall be covered by the fee
 charged pursuant to this subsection.(i)Rule of construction related to fair housingNothing in this Act shall be construed as authorizing the Corporation to waive, repeal, amend,
 or modify requirements relating to fair housing law, including those
 requirements under the Fair Housing Act (42 U.S.C. 3601 et seq.) and the
 Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.).307.Exemptions(a)Securities exempt from Securities and Exchange Commission regulation(1)Covered securities(A)In generalAll securities insured or guaranteed by the Corporation shall, to the same extent as securities
 that are direct obligations of or obligations guaranteed as to principal
 or interest by the United States, be deemed to be exempt securities within
 the meaning of the laws administered by the Securities and Exchange
 Commission.(B)Conforming amendmentThe first sentence of section 3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is
 amended by inserting or any security insured or guaranteed by the Federal Mortgage Insurance Corporation; after Federal Reserve bank;.(2)Credit risk-sharing mechanismsSection 27B(c) of the Securities Act of 1933 (15 U.S.C. 77z-2a(c)) is amended—(A)in paragraph (1), by striking or at the end;(B)in paragraph (2), by striking the period at the end and inserting ; or; and(C)by adding at the end the following:(3)purchases or sales of any asset-backed security that is a credit risk-sharing mechanism approved by
 the Federal Mortgage Insurance Corporation in accordance with section 302
 or section 703(c) of the Housing Finance Reform and Taxpayer Protection Act of 2014, which credit risk-sharing
 mechanism is designed to be used or is used, as determined by the Federal
 Mortgage Insurance Corporation, by
 a private market holder to assume losses and to reduce the specific risks
 arising from losses realized under such credit risk-sharing mechanism
 associated
 with any pool of eligible mortgage loans that collateralizes a covered
 security insured in accordance with section 303 or 305 of that Act..(b)QRM exemptionSection 15G(e) of the Securities Exchange Act of 1934 (15 U.S.C. 78o–11(e)) is amended—(1)in paragraph (3)(B)—(A)by striking Association, the and inserting Association and the; and(B)by striking and the Federal home loan banks; and(2)by adding at the end the following:(7)Covered securities insured by the Federal Mortgage Insurance CorporationNotwithstanding any other provision of this section, the requirements of this section shall not
 apply to any covered security, as such term is defined under section 2 of
 the Housing Finance Reform and Taxpayer Protection Act of 2014, insured or
 guaranteed by the
 Federal Mortgage Insurance Corporation or any institution that is subject
 to the supervision of the Federal Mortgage Insurance Corporation..(c)Counterparties exempt from the Commodity Exchange ActSection 1a(10) of the Commodity Exchange Act (7 U.S.C. 1a(10)) is amended by adding at the end the
 following:(C)ExemptionSolely as it relates to the specific role of a counterparty in connection with the swap transaction
 described in this paragraph, the term commodity pool does not include any counterparty that enters into any swap for purposes of structuring a
 credit risk-sharing mechanism that is approved by the Federal
 Mortgage Insurance Corporation in accordance with section 302 or section
 703(c) of the Housing Finance Reform and Taxpayer Protection Act of 2014, which credit risk-sharing
 mechanism is designed to be used or is used, as determined by the Federal
 Mortgage Insurance Corporation, by
 a private market holder to assume losses and to reduce the specific risks
 arising from losses realized under such credit risk-sharing mechanism
 associated
 with any pool of eligible mortgage loans that collateralizes a covered
 security insured in accordance with section 303 or 305 of that Act.. 308.Regulatory consultation and coordination(a)Consultation permittedThe Corporation may, in carrying out any duty, responsibility, requirement, or action authorized
 under this Act, consult with the Federal regulatory agencies, any
 individual Federal regulatory agency, the Secretary of the Treasury, the
 Secretary of Housing and Urban Development, any
 State banking regulator, any
 State insurance regulator, and any other State agency, as the Corporation
 determines necessary and appropriate.(b)Coordination requiredThe Corporation shall, as required by this Act, in carrying out any duty, responsibility,
 requirement, or
 action authorized
 under this Act, coordinate with the Federal regulatory agencies, any
 individual Federal regulatory agency, the Secretary of the Treasury, the
 Secretary of Housing and Urban Development, any
 State banking regulator, any State
 insurance regulator, and any other State agency.(c)Avoidance of duplicationTo the fullest extent possible, the Corporation shall—(1)avoid duplication of examination activities, reporting requirements, and requests for information;(2)rely on examination reports made by other Federal or State regulatory agencies relating to an
 approved entity and its subsidiaries, if any; and(3)ensure that approved entities are not subject to conflicting supervisory demands by the Corporation
 and other Federal regulatory agencies.(d)Protection of privileges(1)In generalPursuant to the authorities provided under subsections (a) and (b), to facilitate the consultative
 process and coordination, the Corporation may share information with the
 Federal regulatory agencies, any individual Federal regulatory agency, the
 Secretary of the Treasury, the Secretary of Housing and Urban Development,
 any
 State bank supervisor, any State insurance regulator, any other State
 agency, or any foreign banking authority, on a one-time, regular, or
 periodic basis, as determined by the Corporation, regarding the capital
 assets and liabilities, financial condition, risk management practices, or
 any other practice of any market participant.(2)Privilege preservedInformation shared by the Corporation pursuant to paragraph (1) shall not be construed as waiving,
 destroying, or otherwise affecting any privilege or confidential status
 that any market participant or any other person may
 claim with respect to such information under Federal or State law as to
 any person or entity other than such agencies, agency, supervisor, or
 authority.(3)Rule of constructionNo provision of this subsection may be construed as implying or establishing that—(A)any person waives any privilege applicable to information that is shared or transferred under any
 circumstance to which this subsection does not apply; or(B)any person would waive any privilege applicable to any information by submitting the information
 directly to the Federal regulatory agencies, any individual Federal
 regulatory agency, any State bank supervisor, any State insurance
 regulator, any other State agency, or any foreign banking authority,
 but for this subsection.(e)Federal and State authority preservedUnless otherwise expressly provided by this section, no provision of this section shall limit or be
 construed to limit, in any way, the existing authority of any Federal
 agency or State regulatory authority.309.Authority to issue regulations(a)General authorityThe
 Corporation may prescribe such regulations and issue such guidelines,
 orders,
 requirements, or standards as are necessary to—(1)carry out this Act, or any
 amendment made by this Act; and(2)ensure—(A)competition among approved entities in the secondary mortgage market;(B)liquidity in the secondary mortgage market and the forward execution market for eligible
 single-family
 mortgage loans and single-family
 covered securities, such as the To-Be-Announced market; and(C)mitigation of systemic risk in the secondary mortgage market.(b)Capital standards(1)In generalFor each type of covered entity the Corporation shall establish, by regulation, capital standards
 and related solvency standards necessary to implement the provisions of
 this Act.(2)Definitions(A)In generalThe regulations required under this subsection shall define all such terms as are necessary to
 carry out the purposes of this subsection.(B)Considerations in defining instruments and contracts that qualify as capitalIn defining instruments and contracts that qualify as capital pursuant to subparagraph (A), the
 Corporation—(i)shall include such instruments and contracts that will absorb losses before the Mortgage Insurance
 Fund; and(ii)may assign significance to those instruments and contracts based on the nature and risks of such
 instruments and contracts.(C)Considerations in defining capital ratiosSolely for the purposes of calculating a capital ratio appropriate to the business model of the
 applicable entity pursuant to subparagraph (A), the Corporation shall
 consider
 for the denominator—(i)total assets;(ii)total liabilities;(iii)risk in force; or(iv)unpaid
 principal balance.(3)Designed to ensure safety and soundnessThe capital and related solvency standards established under this subsection shall be designed to—(A)ensure the safety and soundness of a covered entity;(B)minimize the risk of loss to the Mortgage Insurance Fund;(C)in consultation and coordination with the Board of Governors of the Federal Reserve System, the
 Federal Deposit
 Insurance Corporation, the Office of the Comptroller of the Currency,
 and the National Credit Union Administration, reduce the potential for
 regulatory arbitrage between capital standards
 for covered entities and capital standards promulgated by Federal
 regulatory agencies for insured depository
 institutions and their affiliates; and(D)be specifically tailored to accommodate a diverse range of business models that may be employed by
 covered entities.(4)Supplemental capital requirementsIn order to prevent or mitigate risks to the secondary mortgage market of the United States that
 could arise from the material financial distress or failure, or ongoing
 activities, of covered entities that are large approved aggregators or
 large approved guarantors that
 engage in covered guarantee transactions, the Corporation, by regulation—(A)shall establish supplemental capital requirements for covered entities that are large
 approved aggregators or large approved guarantors; and(B)may establish such other standards for covered entities that are large
 approved aggregators or large approved guarantors that
 the Corporation determines necessary or appropriate.(c)Market share limitation for certain large entitiesThe Corporation shall establish, by regulation, market share limitations for large approved
 aggregators and large approved guarantors that would take effect only in
 the
 event the Corporation has reason to believe the supplemental standards
 established
 under subsection (b)(4) are insufficient to prevent or mitigate risks to
 the secondary mortgage market of the United States that could arise from
 the material financial distress or failure, or ongoing activities, of such
 approved aggregators and approved guarantors.(d)Recognition of distinctions between the approved entities and the Federal Home Loan Banks(1)In generalPrior to promulgating any regulation or taking any other formal or informal action of general
 applicability and future effect relating to the Federal Home Loan Banks,
 including the issuance of an advisory document or examination guidance,
 the Chairperson, in consultation with the Office of Federal Home Loan Bank
 Supervision, shall consider the differences between the Federal Home
 Loan Banks and approved entities with respect to—(A)the Banks’—(i)cooperative ownership structure;(ii)mission of providing liquidity to its members;(iii)affordable housing and community development mission;(iv)capital structure; and(v)joint and several liability; and(B)any other differences that the Corporation considers appropriate.(2)Capital considerationsThe Corporation, in coordination with the Office of Federal Home Loan Bank Supervision, shall
 establish capital standards, as required under section 309(b), with
 respect to a Federal Home Loan Bank, or subsidiary or joint office
 thereof, that is approved as an aggregator under section 312, that—(A)are adequate to support the role of a Federal Home Loan Bank as a covered entity, consistent with
 the safe and sound operations of the Bank or Banks involved; and(B)do not adversely impact the traditional liquidity and advance business of the Federal Home Loan
 Bank System or the marketability or creditworthiness of Federal Home Loan
 Bank consolidated obligations.(e)Regulations relating to force-placed insurance(1)In generalThe Corporation shall, by regulation, set standards for the purchase of force-placed insurance by
 market participants.(2)LimitationNo standards developed, adopted, or published under paragraph (1) shall concern the regulation of
 the business of insurance or preempt any State law, regulation, or
 procedure concerning the regulation of the business of insurance.(f)Use and protection of personally identifiable information(1)Privacy considerationsIn collecting information from any person, in publicly releasing information held by the
 Corporation, or in requiring approved entities to publicly report
 information, the Corporation shall take steps to ensure that proprietary,
 personal, or confidential consumer information that is protected from
 public disclosure under section 552(b) or 552a of title 5, United States
 Code, or any other provision of law, is not made public.(2)Treatment of approved entitiesWith respect to the application of any provision of the Right to Financial Privacy Act of 1978 to a
 disclosure by an approved entity subject to this subsection, the approved
 entity shall be treated as if it were a financial institution as defined in section 1101 of that Act (12 U.S.C. 3401).(3)Non disclosure(A)In generalUnless otherwise specified by this Act, any personally identifiable information obtained or
 maintained by the Corporation in connection with any supervision or
 enforcement authority or function, including the Office of General Counsel
 and Office of the Inspector General of the Federal Mortgage Insurance
 Corporation, may not be disclosed to any non supervisory or non
 enforcement office, division, or employee of the Corporation, or to any
 other Federal or State agency unless—(i)the information is necessary and appropriate for such office, division, or employee of the
 Corporation to comply with this Act, and the office, division, or employee
 cannot reasonably obtain the information through the normal course of
 business of such office, division, or employee;(ii)the other Federal or State agency has satisfied any conditions of information sharing that the
 Corporation may establish, including treatment of personally identifiable
 information and sharing of information that shall conform to the standards
 for protection of the confidentiality of personally identifiable
 information and for data integrity and security that are applicable to
 Federal agencies; or(iii)the records are relevant to a legitimate law enforcement inquiry, or intelligence or
 counterintelligence activity, investigation, or analysis related to
 international terrorism within the jurisdiction of the receiving entity.(B)Protection of personally identifiable information by specific officesAny office created under section 207(a)(1)(B) shall—(i)develop standards regarding treatment and confidentiality of personally identifiable information
 and the collection and sharing of information that are tailored to the
 purpose or mission of the office; and(ii)obtain approval from the Chairperson of the standards developed under clause (i) prior to the
 operation of the office.(g)Consumer PrivacyThe Corporation shall not obtain from an approved entity any personally identifiable financial
 information about a consumer from the financial records of the approved
 entity, except—(1)if the financial records are reasonably described in a request by the Corporation and the consumer
 provides written permission for the disclosure of such information by an
 approved entity to the Corporation; or(2)as may be specifically permitted or required under other applicable provisions of law and in
 accordance with the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401
 et seq.).(h)Option for approved guarantors and approved aggregators(1)Establishment of process for approvalThe Corporation may, if it determines necessary or appropriate, establish a process and criteria
 for approved guarantors and approved aggregators to apply to the
 Corporation for approval to operate a cash window for the purchase of
 individual eligible single-family mortgage loans.(2)RequirementsIf the Corporation establishes a process and criteria under paragraph (1), the Corporation—(A)may grant approval to an approved guarantor or an approved aggregator that applies to operate a
 cash window for the purchase of individual eligible single-family mortgage
 loans only if the Corporation determines that—(i)the approved guarantor or approved aggregator meets the criteria established under paragraph (1);
 and(ii)the operation of the cash window would not pose a risk to the Mortgage Insurance Fund; and(B)to ensure the safety and soundness of each approved guarantor and approved aggregator, shall
 establish standards for the regulation, supervision, and operation of each
 cash window that an approved guarantor or approved aggregator is approved
 to operate under this paragraph.310.Equivalency in protection of the Mortgage Insurance FundIn order to protect the Mortgage Insurance Fund and promote multiple sources of first loss
 positions, the Corporation shall seek to ensure equivalent
 loss absorption capacity between approved credit risk-sharing mechanisms
 pursuant to section 302 and capital standards for approved guarantors
 pursuant to section 311.BApproval and supervision of approved entities for single-family activities311.Approval and supervision of guarantors(a)Standards for approval of guarantors(1)In generalThe Corporation shall develop, adopt, and publish standards for the approval by the Corporation of
 guarantors to guarantee the timely payment of principal and interest on
 securities collateralized by eligible single-family mortgage loans and
 insured by the
 Corporation.(2)Required standardsThe standards required under paragraph (1) shall include—(A)the financial history and condition of the guarantor;(B)a requirement that the guarantor maintain capital levels as defined by the Corporation, pursuant to
 subsection (g);(C)the capability of the management of the guarantor;(D)the general character and fitness of the officers and directors of the guarantor, including the
 compliance history of the guarantor’s officers and directors with Federal
 and State laws and the rules and regulations promulgated by
 self-regulatory organizations (as defined in section 3(a)(26) of the
 Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as applicable;(E)the risk presented by the guarantor to the Mortgage Insurance Fund;(F)the adequacy of insurance and fidelity coverage of the guarantor;(G)the ability of the guarantor to—(i)at the discretion of the guarantor, transfer investment risk and credit risk to private market
 holders in the single-family market in accordance with the credit
 risk-sharing mechanisms approved by the Corporation under
 section 302;(ii)create mechanisms to guarantee multi-lender pools; and(iii)ensure that eligible single-family mortgage loans that collateralize a single-family covered
 security insured under this title are originated in compliance with the
 requirements of this Act;(H)the capacity of the guarantor to take the first loss position;(I)that the guarantor has the capacity to guarantee eligible single-family mortgage loans in a manner
 that furthers
 the
 purposes of the Corporation described in section 201(b)(5);(J)a requirement that the guarantor timely issue publicly available audited financial statements on an
 annual basis prepared in accordance with generally accepted accounting
 principles used in the industry;(K)that the guarantor is in compliance with section 210(a)(3);(L)that the guarantor has substantial analytical capabilities to effectively manage credit risk;(M)that the guarantor does not originate eligible single-family mortgage loans and is not an affiliate
 of a person that actively engages in the business of originating eligible
 single-family mortgage loans; and(N)any other standard the Corporation determines necessary to protect the Mortgage Insurance Fund.(3)Rule of constructionNothing in subparagraph (I) of paragraph (2) shall be construed to prevent the Corporation from
 approving a small or
 specialty guarantor, provided that the guarantor has the capacity to
 adequately diversify its risk to meet appropriate safety and soundness
 concerns.(4)Consultation and coordinationTo promote consistency and minimize regulatory conflict, the Corporation shall consult and
 coordinate with appropriate Federal and State regulators and officials
 when developing standards pursuant to this subsection.(b)Application and approval(1)Application process(A)In generalThe Corporation shall establish an application process, in such form and manner and requiring such
 information as the Corporation may require, for the approval of a
 guarantor
 under this section.(B)Application reviewThe Corporation shall establish internal timelines for its processing of an application under this
 section, including timelines for any action to approve or to deny an
 application under this section.(C)Prohibition on control by insured depository institutions or affiliates of insured depository
 institutions(i)In generalIt shall be unlawful for an insured depository institution or an affiliate of an insured depository
 institution to control an approved guarantor.(ii)Rule of construction regarding controlFor purposes of this subparagraph, any insured depository institution or affiliate of an insured
 depository institution has control over an approved guarantor if the
 company directly or indirectly or acting through 1 or more other persons
 owns, controls, or has power to vote 10 percent or more of any class of
 voting shares of the approved guarantor.(2)ApprovalThe Corporation may approve any application made pursuant to paragraph (1), provided the guarantor
 meets the standards established under subsection (a).(3)DenialThe Corporation shall have the authority to deny any application made pursuant to paragraph (1) if
 an officer or director of the guarantor has, at any time prior to the date
 of the approval of such application, been—(A)subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act
 of 1934 (15 U.S.C. 78c(a)(39)); or(B)suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited from certain action
 pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit
 Insurance Act (12 U.S.C. 1818(e)), subject to an action resulting in a
 written agreement or other written statement under section 8(u)(1) of the
 Federal Deposit Insurance Act (12 U.S.C. 1818(u)(1)), for which a
 violation may be enforced by an appropriate Federal banking agency, or
 subject to any final order issued with respect to any administrative
 enforcement proceeding initiated by such agency under section 8 of the
 Federal Deposit Insurance Act (12 U.S.C. 1818).(4)Notice and publicationThe Corporation shall—(A)provide prompt notice to a guarantor of the approval or denial of any application of the guarantor
 to become an approved guarantor under this section;(B)publish a notice in the Federal Register upon approval of any guarantor; and(C)maintain an updated list of approved guarantors on the website of the Corporation.(c)Requirement to maintain approval status(1)Authority to issue orderIf the Corporation determines that an approved guarantor no longer
 meets the standards for such approval or violates a requirement under
 this Act, including any standard, regulation, or order promulgated in
 accordance with this Act, the Corporation may—(A)suspend or revoke the approved status of the approved guarantor; or(B)take any other action with respect to such approved guarantor as may be authorized under this Act.(2)Rule of constructionThe suspension or revocation of the approved status of an approved guarantor under this section
 shall have no effect on the status as a covered security of any covered
 security collateralized by eligible mortgage loans with which the approved
 guarantor contracted prior to the suspension or revocation.(3)PublicationThe Corporation shall—(A)promptly publish a notice in the Federal Register upon suspension or revocation of the approval of
 any approved guarantor; and(B)maintain an updated list of such approved guarantors on the website of the Corporation.(4)DefinitionIn this subsection, the term violate includes any action, taken alone or with others, for or toward causing, bringing about,
 participating in, counseling, or aiding or abetting, a violation of the
 requirements under this Act.(d)Prudential standards for supervisionThe Corporation shall prescribe prudential standards for approved guarantors in order to—(1)ensure—(A)the safety and soundness of approved guarantors; and(B)the maintenance of approval standards by approved guarantors; and(2)minimize the risk presented to the Mortgage Insurance Fund.(e)Reports and examinationsFor purposes of determining whether an approved guarantor is fulfilling the requirements under this
 Act, the Corporation shall have the authority to require reports from and
 examine an approved guarantor,
 in the same manner and to the same extent as the Federal Deposit Insurance
 Corporation has with respect to an insured depository institution under
 the
 provisions of subsection (a) of section 9 of the Federal Deposit Insurance
 Act (12 U.S.C. 1819).(f)EnforcementThe Corporation shall have the authority to enforce the provisions of this Act with respect to
 an approved guarantor, in the same manner and to the same extent as the
 Federal Deposit Insurance Corporation has with respect to an insured
 depository institution under the provisions of subsections (b) through
 (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818).(g)Capital standards(1)In generalPursuant to the requirement to establish capital and related solvency standards under section
 309(b), the Corporation shall establish standards for approved guarantors
 that require an approved
 guarantor to—(A)hold 10 percent capital; and(B)maintain solvency levels adequate for the approved guarantor to withstand losses that might be
 incurred by the approved guarantor in a period of economic stress,
 including national and regional home price declines, such as those
 observed during moderate to severe recessions in the United States.(2)Risk-sharing considerationsFor purposes of paragraph (1), the Corporation shall consider the extent, amount, and form of
 risk-sharing and risk mitigation through the use by approved guarantors of
 credit risk-sharing mechanisms approved pursuant to section 302(b)(4).
 The Corporation shall allow such risk-sharing and risk mitigation to
 fulfill
 required amounts of capital to be held under paragraph (1)(A) such that it
 ensures an equivalent amount of loss absorption capacity as required under
 section 302(a)(1)(B) while maintaining an appropriate structure of capital
 as determined by the Corporation.(3)Stress testsThe Corporation shall conduct appropriate stress tests of each approved guarantor that has total
 assets of more than $10,000,000,000, provided that such stress tests shall
 be—(A)specifically tailored to the business model of the approved guarantor; and(B)utilized to—(i)ensure the safety and soundness of the approved guarantor; and(ii)minimize the risk the approved guarantor may present to the Mortgage Insurance Fund.(h)Resolution authority for failing guarantors(1)In generalNotwithstanding any other provision of Federal law, the law of any State, or the constitution of
 any State, the Corporation shall—(A)have the authority to act, in the same manner and to the same extent, with respect to an approved
 guarantor as the Federal Deposit Insurance Corporation has with
 respect to an insured depository institution under subsections (c) through
 (s) of section 11 of the Federal Deposit Insurance Act (12 U.S.C.
 1821), section 12 of the Federal Deposit Insurance Act (12 U.S.C. 1822),
 and section 13 of the Federal Deposit Insurance Act (12 U.S.C. 1823),
 while tailoring such actions to the specific business model of the
 approved guarantor, as may be necessary to properly exercise such
 authority under this subsection;(B)in carrying out any authority provided in subparagraph (A), act, in the same manner and to the same
 extent, with respect to the Mortgage Insurance Fund as the Federal Deposit
 Insurance Corporation may act with respect to the Deposit Insurance Fund
 under the provisions of the Federal Deposit Insurance Act set forth in
 subparagraph (A);(C)prescribe regulations governing the applicable rights, duties, and obligations of an approved
 guarantor placed into resolution under this subsection, its creditors,
 counterparties, and other persons, as the Corporation deems necessary to
 properly exercise the authority provided in subparagraph (A);(D)consistent with the authorities provided in subparagraph (A), immediately place an insolvent
 approved guarantor into receivership; and(E)upon placing an approved guarantor into receivership, treat single-family covered securities
 insured by the Corporation under section 303 in the same manner as the
 Federal Deposit Insurance Corporation treats deposit liabilities under
 section 11(d)(11)(A)(ii) of the Federal Deposit Insurance Act and insured
 deposits under section 11(f) of the Federal Deposit Insurance Act, where
 the Corporation shall have the same right of subrogation as the Federal
 Deposit Insurance Corporation has under section 11(g) of the Federal
 Deposit Insurance Act.(2)Least-cost resolution requiredThe Corporation may not exercise any authority under paragraph (1) with respect to any approved
 guarantor unless the total amount of the expenditures by the Corporation
 and obligations incurred by the Corporation
 in connection with the exercise of any such authority with respect to such
 approved guarantor is the least costly to the Mortgage Insurance Fund,
 consistent with the least cost approach specified in the Federal Deposit
 Insurance Act (12 U.S.C. 1811 et seq.), of all possible
 methods for meeting the Corporation's obligations under this Act and
 expeditiously concluding its resolution activities, subject to section 13
 of the Federal Deposit Insurance Act where the Corporation and the Board
 of
 Directors shall have the same authority as the Federal Deposit Insurance
 Corporation and the Federal Deposit Insurance Corporation’s board of
 directors.(3)Taxpayer protectionThe Corporation, in carrying out any authority provided in this subsection, shall prescribe
 regulations to ensure that any
 amounts owed to the United States, unless the United States agrees or
 consents otherwise, shall have priority following administrative expenses
 of the receiver when satisfying unsecured claims against an approved
 guarantor, or the receiver therefor, that are proven to the satisfaction
 of the receiver.(i)HearingUpon notice of denial of an application for approval under subsection (b) or upon a notice of
 suspension or revocation of the approved status of an approved guarantor
 under subsection (c), the applicant or approved guarantor shall be
 afforded a hearing under subsection (h) of section 8 of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(h)), in the same manner and to the
 same extent as if the Corporation were the appropriate Federal banking
 agency, provided that the approved guarantor submits a request to the
 Corporation for a hearing not later than 10 days after the date on which
 the notice is published under subsection (b)(3) or (c)(3).(j)Other activitiesAn approved guarantor shall be prohibited from being an approved aggregator.(k)Provision of pool level insuranceSubject to such standards as the Corporation may provide, an approved guarantor may provide
 insurance or other credit enhancement on a pool of eligible single-family
 mortgage loans
 collateralizing a single-family covered security insured under this title.(l)Prohibited activityAn approved guarantor may not—(1)originate eligible single-family mortgage loans; or(2)be an affiliate of a person that actively engages in the business of originating eligible
 single-family mortgage loans.(m)Guarantors required to pay claimsSubject to such standards as the Corporation may provide, an approved guarantor may not for any
 reason withhold payment of funds that would ensure holders of
 single-family covered securities receive timely payment of principal and
 interest on single-family covered securities. The Corporation shall by
 regulation develop a process for the mediation and resolution of disputed
 payment amounts.312.Approval and supervision of aggregators(a)Standards for approval of mortgage aggregators(1)In generalThe Corporation shall develop, adopt, and publish standards for the approval by the Corporation of
 mortgage aggregators to deliver eligible single-family mortgage loans to
 the Securitization Platform for securitization by such aggregator as a
 single-family covered
 security.(2)Required standardsThe standards required under paragraph (1) shall include standards with respect to the ability of
 mortgage aggregator to—(A)aggregate eligible single-family mortgage loans into pools, including multi-lender pools, as
 appropriate;(B)transfer investment risk and credit risk to private market participants in accordance with the
 credit risk-sharing mechanisms approved by the Corporation
 under section
 302;(C)ensure equitable access to the secondary mortgage market for single-family covered securities for
 all institutions regardless of size or geographic location; and(D)ensure that eligible single-family mortgage loans that collateralize a single-family covered
 security insured under this title are originated in compliance with the
 requirements of this Act.(3)Additional required standardsThe standards required under paragraph (1) shall also include—(A)the financial history and condition of the mortgage aggregator;(B)the adequacy of the capital structure of the mortgage aggregator;(C)the capability of the management of the mortgage aggregator;(D)the general character and fitness of the officers and directors of the mortgage aggregator,
 including the compliance history of the mortgage aggregator’s officers and
 directors with Federal and State laws and the rules and regulations
 promulgated by self-regulatory organizations (as defined in section
 3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as
 applicable;(E)the risk presented by the mortgage aggregator to the Mortgage Insurance Fund;(F)the adequacy of insurance and fidelity coverage of the mortgage aggregator;(G)a requirement that the mortgage aggregator submit audited financial statements to the Corporation;(H)that the mortgage aggregator has the capacity to aggregate mortgage loans in a manner that furthers
 purposes
 of the Corporation described in section 201(b)(5);(I)that the mortgage aggregator is in compliance with section 210(a)(3); and(J)any other standard the Corporation determines necessary to protect the Mortgage Insurance Fund.(4)Rule of constructionNothing in subparagraph (H) of paragraph (3) shall be construed to prevent the Corporation from
 approving a small or
 specialty mortgage aggregator, provided that the mortgage aggregator has
 the capacity to
 adequately diversify its risk to meet appropriate safety and soundness
 concerns of the Corporation.(5)Consultation and coordinationTo promote consistency and minimize regulatory conflict, the Corporation shall consult and
 coordinate with appropriate Federal and State regulators and officials
 when developing standards pursuant to this subsection.(b)Application and approval(1)Application process(A)In generalThe Corporation shall establish an application process, in such form and manner and requiring such
 information as the Corporation may require, for the approval of a mortgage
 aggregator under this section.(B)Application reviewThe Corporation shall establish internal timelines for its processing of an application under this
 section, including timelines for any action to approve or to deny an
 application under this section.(2)ApprovalThe Corporation may approve any application made pursuant to paragraph (1), provided the mortgage
 aggregator meets the standards established under subsection (a).(3)DenialThe Corporation shall have the authority to deny any application made pursuant to paragraph (1) if
 an officer or director of the mortgage aggregator has, at any time prior
 to the date of the approval of such application, been—(A)subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act
 of 1934 (15 U.S.C. 78c(a)(39)); or(B)suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited from certain action
 pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit
 Insurance Act (12 U.S.C. 1818(e)), subject to an action resulting in a
 written agreement or other written statement under section 8(u)(1) of the
 Federal Deposit Insurance Act (12 U.S.C. 1818(u)(1)), for which a
 violation may be enforced by an appropriate Federal banking agency, or
 subject to any final order issued with respect to any administrative
 enforcement proceeding initiated by such agency under section 8 of the
 Federal Deposit Insurance Act (12 U.S.C. 1818).(4)Notice and publicationThe Corporation shall—(A)provide prompt notice to a mortgage aggregator of the approval or denial of any application of the
 mortgage aggregator to become an approved aggregator under this section;(B)publish a notice in the Federal Register upon approval of any mortgage aggregator; and(C)maintain an updated list of approved aggregators on the website of the Corporation.(c)Requirement to maintain approval status(1)Authority to issue orderIf the Corporation determines that an approved aggregator no longer
 meets the standards for such approval or violates a requirement under
 this Act, including any standard, regulation, or order promulgated in
 accordance with this Act, the Corporation may—(A)suspend or revoke the approved status of the approved aggregator; or(B)take any other action with respect to such approved aggregator as may be authorized under this Act.(2)Rule of constructionThe suspension or revocation of the approved status of an approved aggregator under this section
 shall have no effect on the status as a covered security of any covered
 security collateralized by eligible mortgage loans with which the approved
 aggregator contracted prior to the suspension or revocation.(3)PublicationThe Corporation shall—(A)promptly publish a notice in the Federal Register upon suspension or revocation of the approval of
 any approved aggregator; and(B)maintain an updated list of such approved aggregators on the website of the Corporation.(4)DefinitionIn this subsection, the term violate includes any action, taken alone or with others, for or toward causing, bringing about,
 participating in, counseling, or aiding or abetting, a violation of the
 requirements under this Act.(d)Prudential standards for supervision(1)In generalSubject to subsection (k)(1), the Corporation shall prescribe prudential standards for approved
 aggregators in order to—(A)ensure—(i)the safety and soundness of approved aggregators; and(ii)the maintenance of approval standards by approved aggregators; and(B)minimize the risk presented to the Mortgage Insurance Fund.(2)Recognition of distinctions between aggregators that are insured depository institutions,
 affiliates of insured depository institutions, and those
 that are notIn carrying out the requirements under paragraph (1), the Corporation shall—(A)distinguish between
 prudential standards for approved aggregators that are insured depository
 institutions, approved aggregators that are affiliates of insured
 depository institutions, and approved aggregators that are neither insured
 depository institutions nor affiliates of insured depository
 institutions; and(B)consult and coordinate with Federal and State banking agencies when establishing prudential
 standards for
 approved aggregators that are insured depository institutions and approved
 aggregators that are affiliates of insured depository institutions, in
 order to minimize duplication of and conflicts with the prudential
 standards set by the appropriate Federal or State banking agencies of
 insured
 depository
 institutions or the affiliates of insured depository institutions.(3)Rule of constructionNothing in this section shall supersede the prudential standards established by the appropriate
 Federal banking agencies.(e)Reports and examinationsFor purposes of gathering information to determine whether an approved aggregator is fulfilling the
 requirements under this Act, the Corporation shall have the authority to
 require reports from and
 examine an approved aggregator as follows:(1)Not insured depository institutions or affiliatesFor an approved aggregator that is neither an insured depository institution nor an affiliate of an
 insured depository institution, the Corporation shall have the
 authority to require reports from and examine an approved aggregator, in
 the
 same manner and to the same extent as the Federal Deposit Insurance
 Corporation has with respect to an insured depository institution under
 the
 provisions of subsection (a) of section 9 of the Federal Deposit Insurance
 Act (12 U.S.C. 1819).(2)Insured depository institutions and affiliatesFor an approved aggregator that is an insured depository institution or an affiliate of an insured
 depository institutions:(A)Use of existing reports to reduce examinationsTo the fullest extent possible, the Corporation shall—(i)rely on the examinations, inspections, and reports of the appropriate Federal or State banking
 agencies;(ii)avoid duplication of examination activities, reporting requirements, and requests for information;
 and(iii)ensure that the depository institution holding company and the subsidiaries of the depository
 institution holding company are not subject to conflicting supervisory
 demands by the Corporation and appropriate Federal and State banking
 agencies.(B)Examination authorityIf the Corporation determines that the examinations, inspections, and reports obtained pursuant to
 subparagraph (A) are insufficient for the
 Corporation to adequately supervise an approved aggregator for compliance
 with this Act, the Corporation
 shall have the authority to require reports from and examine the approved
 aggregator for compliance with this Act, in the same manner and to the
 same extent as the Board of
 Governors of the Federal Reserve System has with respect to a subsidiary
 of a bank holding companyunder the provisions of paragraphs
 (1) and (2) of subsection (c) of section 5 of the Bank Holding Company Act
 (12 U.S.C. 1844).(C)Regulatory notice(i)Regulatory noticeBefore commencing an examination of an approved aggregator under this paragraph, the Corporation
 shall provide reasonable notice to, and coordinate with, the appropriate
 Federal or State banking agency or State regulatory agency.(ii)Rule of constructionNothing in this Act shall limit the authority of the Corporation to require reports of and examine
 an approved aggregator—(I)to verify the sale of, and funds received from, the first loss position; and(II)when the Corporation becomes aware—(aa)of a material threat to the safety and soundness of the approved aggregator;(bb)that the approved aggregator is in material violation of this Act or the rules promulgated by the
 Corporation pursuant to this Act; or(cc)that the activities of the approved aggregator threaten the financial stability of the housing
 finance system or the Mortgage Insurance Fund.(f)EnforcementThe Corporation shall have the authority to enforce the provisions of this Act with respect to
 an approved aggregator, in the same manner and to the same extent as the
 Federal Deposit Insurance Corporation has with respect to an insured
 depository institution under the provisions of subsections (b) through
 (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818),
 provided that to the extent that the Corporation and an appropriate
 Federal banking agency are
 each authorized to enforce prudential standards with respect to an
 approved aggregator that is an insured depository institution or an
 affiliate of an insured depository institution, the appropriate Federal
 banking agency shall have primary authority to enforce such standards.(g)Capital standardsFor approved aggregators that are neither an insured depository institution nor an affiliate of an
 insured depository institution the following shall apply:(1)In generalPursuant to the requirement to establish capital and related solvency standards under section
 309(b), the Corporation shall establish standards for approved aggregators
 that require an approved
 aggregator—(A)to hold capital in an amount comparable to that which is required to be held by insured depository
 institutions and their affiliates with respect to their applicable
 aggregating activities; and(B)to maintain solvency levels adequate for the approved aggregator to withstand losses that might be
 incurred by the approved aggregator in a period of economic stress,
 including national and regional home price declines, such as those
 observed during moderate to severe recessions in the United States.(2)Stress testsThe Corporation shall conduct appropriate stress tests of each approved aggregator that has total
 assets of more than $10,000,000,000, provided that such stress tests shall
 be—(A)specifically tailored to the business model of the approved aggregator;(B)utilized to—(i)ensure the safety and soundness of the approved aggregator; and(ii)minimize the risk the approved aggregator may present to the Mortgage Insurance Fund; and(C)coordinated with the Board of Governors of the Federal Reserve System, if the approved aggregator
 is an affiliate of an insured depository institution.(h)Resolution authority for failing aggregators(1)In generalNotwithstanding any other provision of Federal law, the law of any State, or the constitution of
 any State, the Corporation shall—(A)have the authority to act, in the same manner and to the same extent, with respect to an approved
 aggregator that is not an insured depository institution as the
 Federal Deposit Insurance Corporation has with respect to an insured
 depository institution under subsections (c) through (s) of section 11 of
 the Federal Deposit Insurance Act (12 U.S.C. 1821), section 12 of the
 Federal Deposit Insurance Act (12 U.S.C. 1822), and section 13 of the
 Federal Deposit Insurance Act (12 U.S.C. 1823), while tailoring such
 actions to the specific business model of the approved aggregator, as may
 be necessary to properly exercise such authority under this subsection;(B)in carrying out any authority provided under subparagraph (A), act, in the same manner and to the
 same extent, with respect to the Mortgage Insurance Fund as the Federal
 Deposit Insurance Corporation may act with respect to the Deposit
 Insurance Fund under the provisions of the Federal Deposit Insurance Act
 set forth in subparagraph (A);(C)prescribe regulations governing the applicable rights, duties, and obligations of an approved
 aggregator that is not an insured depository institution placed into
 resolution under this subsection, its creditors, counterparties, and other
 persons, as the Corporation deems necessary to properly exercise the
 authority provided in subparagraph (A); and(D)consistent with the authorities provided in subparagraph (A), immediately place an insolvent
 approved aggregator that is not an insured depository institution into
 receivership.(2)Rule of constructionIf an insolvent approved aggregator is an insured depository institution, the Corporation shall
 recommend, in
 writing, to such approved aggregator’s appropriate Federal banking agency
 or State banking regulator to resolve such approved aggregator, which
 agency shall have sole authority to resolve such aggregator pursuant to
 section 11(c) of the Federal Deposit Insurance Act (12 U.S.C. 1821(c)) and
 other appropriate sections of the Federal Deposit Insurance Act (12 U.S.C.
 1811 et seq.) or appropriate Federal or State law, as applicable.(3)Least-cost resolution requiredThe Corporation may not exercise any authority under paragraph (1) with respect to any approved
 aggregator that is not an insured depository institution unless the total
 amount of the
 expenditures by the Corporation and obligations incurred by the
 Corporation
 in connection with the exercise of any such authority with respect to such
 approved aggregator is the least costly to the Mortgage Insurance Fund,
 consistent with the least cost approach specified in the Federal Deposit
 Insurance Act (12 U.S.C. 1811 et seq.), of all possible methods for
 meeting the Corporation’s obligations under this Act and expeditiously
 concluding its resolution activities, subject to section 13 of the Federal
 Deposit Insurance Act where the Corporation and the Board of
 Directors shall have the same authority as the Federal Deposit Insurance
 Corporation and the Federal Deposit Insurance Corporation’s board of
 directors.(4)Taxpayer protectionThe Corporation, in carrying out any authority provided in this subsection, shall prescribe
 regulations to ensure that any
 amounts owed to the United States, unless the United States agrees or
 consents otherwise, shall have priority following administrative expenses
 of the receiver when satisfying unsecured claims against an approved
 aggregator, or the receiver therefor, that are proven to the satisfaction
 of the receiver.(i)HearingUpon notice of denial of an application for approval under subsection (b) or upon a notice of
 suspension or revocation of the approved status of an approved aggregator
 under subsection (c), the applicant or approved aggregator shall be
 afforded a hearing under subsection (h) of section 8 of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(h)), in the same manner and to the
 same extent as if the Corporation were the appropriate Federal banking
 agency, provided that the approved aggregator submits a request to the
 Corporation for a hearing not later than 10 days after the date on which
 the notice is published under subsection (b)(3) or (c)(3).(j)Other activitiesAn approved aggregator shall be prohibited from being an approved guarantor.(k)Information sharing regarding insured depository institutions and affiliates of insured depository
 institutions(1)By the CorporationTo the extent the Corporation has relevant information indicating that an approved aggregator that
 is an insured depository institution or an affiliate of an insured
 depository institution (A) faces a material threat to its safety and
 soundness, including insufficient capital, (B) may be in material
 violation of
 Federal banking law, or (C) may threaten the financial stability of the
 housing finance system or the Mortgage Insurance Fund, the Corporation
 shall notify, in writing, such appropriate Federal banking agency that
 such conditions exist. The Corporation shall have no authority to enforce
 prudential standards established by an appropriate Federal banking agency
 pursuant to the appropriate Federal banking agency’s authority.(2)By Federal and State banking agenciesTo the extent an appropriate Federal banking agency or State banking agency has relevant
 information indicating that an
 approved aggregator that is an insured depository institution or an
 affiliate of an insured depository institution (A) faces a material
 threat to its safety and soundness, including insufficient capital, (B)
 may be in material violation of this Act or the rules promulgated by the
 Corporation pursuant to this Act, or (C) may threaten the financial
 stability of the housing finance system or the Mortgage Insurance Fund,
 such appropriate Federal banking agency or State banking agency shall
 notify, in writing, the
 Corporation that such conditions exist.(l)Rule of construction regarding preservation of Corporation authorityNothing in this section limits, or shall be construed to limit, the authority of the Corporation to
 provide exemptions to, or adjustments for, the provisions of this section
 based on the asset size of an approved aggregator, or other criteria, as
 the
 Corporation deems appropriate, in order to reduce regulatory burdens while
 appropriately balancing protection of the Mortgage Insurance Fund.(m)Federal Home Loan Banks, joint offices, and bank subsidiaries as aggregators(1)Federal Home Loan Bank Act(A)Establishment of joint offices and subsidiaries(i)AmendmentSection 12 of the Federal Home Loan Bank Act (12 U.S.C. 1432) is amended by adding at the end the
 following:(c)Subject to such regulations as may be prescribed by the Agency, in coordination with the Federal
 Mortgage Insurance Corporation, 1 or more Federal Home Loan
 Banks may establish a subsidiary or joint office in any form under the
 laws of any State, subject to the approval of the Corporation. Any
 subsidiary or joint office established under this
 subsection shall be restricted to
 engaging in activities related to being an approved aggregator, as that
 term is defined under section 2 of Housing Finance Reform and Taxpayer Protection Act of 2014.(d)Subject to such regulations as may be prescribed by the Agency, in coordination with the Federal
 Mortgage Insurance Corporation, 1 or more Federal Home Loan
 Banks or any subsidiary or joint office of a Federal Home Loan Bank
 established under
 subsection (c) may apply to become, and may become, an approved
 aggregator, as that term is defined under section 2 of the Housing Finance Reform and Taxpayer Protection Act of 2014..(ii)Effective dateThe amendments made by clause (i) shall take effect on the system certification date.(B)CDFIs(i)AmendmentSection 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) is amended—(I)in paragraph (2)(B), by inserting or community development financial institution (as defined in section 103 of the Riegle Community
 Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)) after community financial institution; and(II)in paragraph (3)(E), by inserting or community development financial institution (as defined in section 103 of the Riegle Community
 Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4702)) after community financial institution.(ii)Effective dateThe amendment made by clause (i) shall take effect on the agency transfer date.(2)Not consolidated debtNotwithstanding section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431), any covered
 security secured by eligible mortgage loans transferred to the Platform by
 a Federal Home Loan Bank or subsidiary or joint office thereof, acting as
 an approved aggregator, shall not be designated as, or considered to be
 the joint and several obligations of the Federal Home Loan Banks.313.Approval of private mortgage insurers(a)Standards for approval of private mortgage insurers(1)In generalThe Corporation shall develop, adopt, and publish standards for the approval by the Corporation of
 private mortgage insurers to provide private mortgage loan insurance on
 eligible single-family mortgage loans that collateralize single-family
 covered
 securities.(2)Required standardsThe standards required under paragraph (1) shall include—(A)the financial history and current financial condition, including capital and loss reserves to
 comply with any applicable State law or regulation, of the private
 mortgage insurer;(B)the capability of the management of the private mortgage insurer;(C)the general character and fitness of the officers and directors of the private mortgage insurer,
 including the compliance history of the private mortgage insurer’s
 officers and directors with Federal and State laws and the rules and
 regulations promulgated by self-regulatory organizations (as defined in
 section 3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C.
 78c(a)(26)), as applicable;(D)that the private mortgage insurer has the capacity to insure eligible single-family mortgage loans
 in a manner to comply with any applicable State law or regulation and
 that
 furthers the purposes of the Corporation as described in section
 201(b)(5);(E)the risk presented by the private mortgage insurer to the Mortgage Insurance Fund;(F)the adequacy of insurance and fidelity coverage of the private mortgage insurer;(G)a requirement that the private mortgage insurer submit audited financial statements to the
 Corporation; and(H)any other standard the Corporation, after notice and public comment, determines necessary to avoid
 significant risk to the Mortgage
 Insurance Fund, provided the standard does not materially conflict with
 State law.(3)Rule of constructionNothing in subparagraph (D) of paragraph (2) shall be construed to prevent the Corporation from
 approving a small or
 specialty private mortgage insurer, provided that the private mortgage
 insurer has the
 capacity to adequately diversify its risk to meet solvency standards
 required by any applicable State law or regulation.(4)Consultation and coordinationTo promote consistency and minimize regulatory conflict, the Corporation shall consult and
 coordinate with appropriate Federal regulators and State regulators and
 officials
 when developing standards pursuant to this subsection.(b)Application and approval(1)Application process(A)In generalThe Corporation shall establish an application process, in such form and manner and requiring such
 information as the Corporation may require, for the approval of a private
 mortgage insurer under this section.(B)Application reviewThe Corporation shall establish internal timelines for its processing of an application under this
 section, including timelines for any action to approve or to deny an
 application under this section.(C)NotificationThe Corporation shall notify the appropriate State insurance regulator upon receipt of any
 application by a private mortgage insurer to become an approved
 private mortgage insurer under this section.(2)ApprovalThe Corporation may approve any application made pursuant to paragraph (1), provided the private
 mortgage insurer meets the standards established under subsection (a).(3)DenialThe Corporation shall have the authority to deny any application made pursuant to paragraph (1) if
 an officer or director of the private mortgage insurer has, at any time
 prior to the date of the approval of such application, been—(A)subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act
 of 1934 (15 U.S.C. 78c(a)(39)); or(B)suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited from certain action
 pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit
 Insurance Act (12 U.S.C. 1818(e)), subject to an action resulting in a
 written agreement or other written statement under section 8(u)(1) of the
 Federal Deposit Insurance Act (12 U.S.C. 1818(u)(1)), for which a
 violation may be enforced by an appropriate Federal banking agency, or
 subject to any final order issued with respect to any administrative
 enforcement proceeding initiated by such agency under section 8 of the
 Federal Deposit Insurance Act (12 U.S.C. 1818).(4)Notice and publicationThe Corporation shall—(A)provide prompt notice to a private mortgage insurer of the approval or denial of any application of
 the private mortgage insurer to become an approved private mortgage
 insurer under this section;(B)publish a notice in the Federal Register upon approval of any private mortgage insurer;(C)maintain an updated list of approved private mortgage insurers on the website of the Corporation;
 and(D)provide prompt notice to the appropriate State insurance regulator upon the approval or denial of
 any application of a private mortgage insurer to
 become an approved private mortgage insurer under this section.(5)Grandfathered insurers of the enterprisesAny private mortgage insurer who was approved to insure mortgage loans for an enterprise on the
 date that is 1 day before the date the Corporation publishes the
 provisional
 standards for the approval of private mortgage insurers required under
 section 607(a)(2), and was in
 good standing as of such date—(A)shall be deemed conditionally approved for a period of 1 year from the date on which the
 Corporation publishes the provisional standards for the approval of
 private mortgage insurers required under section 607(a)(2);(B)shall, not later than the date which is 6 months after date on which the Corporation publishes the
 standards required under subsection (a), apply for approved status via
 the application process described in this subsection to be eligible for
 approved status; and(C)shall, provided the private mortgage insurer has complied with subparagraph (B), receive a
 determination from the Corporation as to the approval or denial of its
 application to become an approved private mortgage insurer prior to the
 expiration of the
 1-year period described under subparagraph (A).(c)Requirement to maintain approval status(1)Authority to issue orderIf the Corporation determines that an approved private mortgage insurer no longer meets the
 standards for such approval or violates a
 requirement under this section, including any standard, regulation, or
 order promulgated in accordance with this Act, the Corporation may—(A)provide prompt notice to the appropriate State insurance regulator that the Corporation determines
 that an approved private mortgage insurer no longer meets the standard for
 such approval;(B)suspend or revoke the approved status of the approved private mortgage insurer; or(C)take any other action with respect to such approved private mortgage insurer as may be authorized
 under this Act.(2)Rule of constructionThe suspension or revocation of the approved status of an approved private mortgage insurer under
 this section shall have no effect on the status as a covered security of
 any covered security collateralized by eligible mortgage loans with which
 the approved private mortgage insurer contracted prior to the suspension
 or revocation.(3)PublicationThe Corporation shall—(A)promptly publish a notice in the Federal Register upon suspension or revocation of the approval of
 any approved private mortgage insurer; and(B)maintain an updated list of such approved private mortgage insurers on the website of the
 Corporation.(4)DefinitionIn this subsection, the term violate includes any action, taken alone or with others, for or toward causing, bringing about,
 participating in, counseling, or aiding or abetting, a violation of the
 requirements under this Act.(d)State regulationThe appropriate State insurance regulator of an approved private mortgage insurer has primary
 authority to examine and supervise
 the approved private mortgage insurer.(e)Reports and examinations(1)In generalFor purposes of determining whether an approved private mortgage insurer is fulfilling the
 requirements under this Act, the Corporation may, in coordination with the
 appropriate State insurance regulator of the approved private mortgage
 insurer, including providing the appropriate State insurance regulator the
 opportunity to join the Corporation in an on-site examination, examine or
 review any
 approved private mortgage
 insurer if the Corporation has substantial reason to believe—(A)that an approved private mortgage insurer has engaged in a material violation or pattern of
 violations of this Act or the rules promulgated pursuant to this Act; or(B)that the activities of an approved private mortgage insurer may threaten the financial stability of
 the housing finance system or the Mortgage Insurance Fund.(2)3-year compliance examinationIn addition to the authority under paragraph (1), the Corporation shall conduct an examination of
 an approved private mortgage insurer once, but not more than once, every 3
 years,
 provided the approved private mortgage insurer has not been examined
 on-site by an
 appropriate State insurance regulator.(3)CoordinationIn conducting an exam or review authorized pursuant to paragraph (1) or paragraph (2), the
 Corporation shall—(A)provide reasonable notice to, and coordinate with, the appropriate State insurance regulator for an
 approved private mortgage insurer before commencing an examination of the
 approved private mortgage insurer under this section;(B)to the fullest extent possible, avoid duplication of examination activities, reporting
 requirements, and requests for information, including by relying on
 existing examinations, inspections, and reports of the appropriate State
 insurance regulator; and(C)ensure that the approved private mortgage insurer is not subject to conflicting supervisory demands
 by the Corporation and State
 insurance regulators, as appropriate.(4)Notice of determinationThe State insurance regulator of an approved private mortgage insurer shall notify the Corporation
 if there has been
 a final determination that the approved private mortgage insurer is in a
 hazardous financial condition provided that the Corporation
 agrees to maintain the
 confidentiality
 or privileged status of the document, material, or other information
 received from the State insurance regulator of the approved private
 mortgage insurer.(f)Enforcement(1)In generalThe Corporation shall have the authority to enforce the provisions of this section with respect to
 a private mortgage insurer, in the same manner and to the same extent as
 the Federal Deposit Insurance Corporation has with respect to an insured
 depository institution under the provisions of subsections (b) through
 (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818),
 provided the Corporation demonstrates that such enforcement action is
 necessary to avoid
 significant risk to the Mortgage Insurance Fund.(2)NotificationPrior to taking any enforcement action against an approved private mortgage insurer, the
 Corporation shall promptly notify, consult, and coordinate with the
 appropriate State insurance regulator.(g)Resolution authority(1)In generalFor any approved private mortgage insurer that the Corporation has substantial reason to believe is
 insolvent, as defined by applicable State law,
 and would otherwise be subject to receivership proceedings under such
 applicable State law, the Corporation shall recommend,
 in writing, that the State insurance regulator for such approved private
 mortgage insurer take such actions as are necessary and authorized under
 applicable State law to resolve such approved private mortgage insurer.(2)Backup authorityNotwithstanding the requirement under paragraph (1), if, after the end of the 60-day period
 beginning on the date on which the Corporation provides its written
 recommendation pursuant to paragraph (1), the appropriate State insurance
 regulator has not filed the appropriate judicial action in the appropriate
 State court to place such approved private mortgage insurer into
 receivership under
 the laws and requirements of the State, the Corporation
 shall have the authority to stand in the place of the appropriate
 regulatory agency and file the appropriate judicial action in the
 appropriate State court to place such approved private mortgage insurer
 into
 receivership under the laws and requirements of the State.(h)HearingUpon notice of denial of an application for approval under subsection (b) or upon a notice of
 suspension or revocation of the approved status of an approved private
 mortgage insurer under subsection (c), the applicant or approved private
 mortgage insurer shall be afforded a hearing under subsection (h) of
 section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818(h)), in the
 same manner and to the same extent as if the Corporation were the
 appropriate Federal banking agency, provided that the approved private
 mortgage insurer submits a request to the Corporation for a hearing not
 later than 10 days after the date on which the notice is published under
 subsection (b)(3) or (c)(3).(i)Rule of construction regarding preservation of Corporation authorityNothing in this section limits, or shall be construed to limit, the authority of the Corporation
 to provide exemptions to, or adjustments for, the provisions of this
 section based on the asset size of approved private mortgage insurers, or
 other criteria, as the Corporation deems appropriate, in order to reduce
 regulatory burdens while appropriately balancing the protection of the
 Mortgage Insurance Fund.314.Approval of servicers(a)Standards for approval of servicers(1)In generalThe Corporation shall, by regulation, establish standards for the approval by the Corporation of
 servicers to administer eligible single-family mortgage loans, including
 standards with
 respect to—(A)the collection and forwarding of principal and interest payments;(B)the maintenance of escrow accounts;(C)the collection and payment of taxes and bona fide insurance premiums;(D)the maintenance of records on eligible single-family mortgage loans;(E)the establishment of loss mitigation options that seek to enhance value and prevent, to greatest
 extent possible, the need to trigger a claim on insurance offered by the
 Corporation pursuant to this title, including by—(i)establishing, by rule, a consistent process through which borrowers, who have submitted an initial
 loan modification request, will be evaluated by servicers
 and the securitization trust for an affordable loan modification; and(ii)providing clear guidance regarding the treatment of second lien holders, taking into consideration
 the priority and subordination of liens under Federal and State laws;(F)the advancement of principal and interest payments to investors in the case of a delinquency by a
 borrower until such time as the borrower has made all payments in arrears,
 the borrower has entered into a repayment plan or modification,
 an approved entity or regulated entity has purchased the loan, or the
 property securing the
 eligible single-family mortgage loan has been liquidated, including
 specification that the servicer shall recover advances upon permanent
 modification of a
 borrower’s mortgage loan;(G)the establishment of procedures under which the servicer may initiate or continue a foreclosure, in
 accordance with applicable Federal and State laws and regulations that—(i)take into account—(I)the servicer’s evaluation of, and agreements with, borrowers for loss mitigation options pursuant
 to subparagraph (E);(II)potential losses caused by delays in collateral recovery; and(III)the need to minimize risks to the Mortgage Insurance Fund; and(ii)provide the borrower, upon request, documentation establishing the right of the mortgagee to
 foreclose;(H)the provision of eligible single-family mortgage loan information to borrowers, upon request,
 including a copy of
 the pooling and servicing agreement and securitization trust requirements
 that address the ability of the servicer to offer loss mitigation
 options; and(I)implementing the terms of any loss mitigation and foreclosure prevention as required by any
 uniform securitization agreement developed under section 326.(2)Additional required standardsThe standards required under paragraph (1) shall also include—(A)the financial history and condition of the servicer;(B)the capability of the management of the servicer;(C)the general character and fitness of the officers and directors of the servicer, including the
 compliance history of the servicer’s officers and directors with Federal
 and State laws and the rules and regulations promulgated by
 self-regulatory organizations (as defined in section 3(a)(26) of the
 Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as applicable;(D)the risk presented by such servicer to the Mortgage Insurance Fund; and(E)minimum operational and management standards for the servicer, including with respect to—(i)internal controls;(ii)recordkeeping;(iii)internal audit systems;(iv)the maintenance of adequate liquidity and reserves; and(v)reporting standards to the Corporation and investors, including audited financial statements.(3)Coordination, consistency, and comparabilityTo promote consistency and minimize regulatory conflict, the Comptroller of the Currency, the Board
 of Governors of the Federal Reserve System, the Federal Deposit Insurance
 Corporation, the Bureau of Consumer Financial Protection, the National
 Credit Union Administration, and the
 Corporation shall—(A)consult and coordinate with each other in developing and issuing regulations with respect to the
 rules and standards for the servicing of eligible single-family mortgage
 loans; and(B)review existing regulations with respect to mortgage loan servicing rules and standards.(4)Consultation and coordination with State regulatorsTo promote consistency and minimize regulatory conflict, the Corporation shall consult and
 coordinate with appropriate State regulators in developing and
 issuing regulations with respect to the rules and standards for the
 servicing of eligible single-family mortgage loans.(b)Application and approval(1)Application processThe Corporation shall establish an application process—(A)in such form and manner and requiring such information as the Corporation may require, for the
 approval of a servicer under this section; and(B)that does not discriminate against or otherwise disadvantage small servicers.(2)Approval(A)In generalThe Corporation may approve any application made pursuant to paragraph (1) provided the servicer
 meets the standards adopted under subsection (a).(B)Prompt noticeThe Corporation shall notify any applicant seeking to become an approved servicer under this
 section of the decision of the Corporation with respect to such approval
 as promptly as practicable.(3)DenialThe Corporation shall have the authority to deny any application made pursuant to paragraph (1) if
 an officer or director of the servicer has, at any time prior to the date
 of the approval of such application, been—(A)subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act
 of 1934 (15 U.S.C. 78c(a)(39)); or(B)suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited from certain action
 pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit
 Insurance Act (12 U.S.C. 1818(e)), subject to an action resulting in a
 written agreement or other written statement under section 8(u)(1) of the
 Federal Deposit Insurance Act (12 U.S.C. 1818(u)(1)), for which a
 violation may be enforced by an appropriate Federal banking agency, or
 subject to any final order issued with respect to any administrative
 enforcement proceeding initiated by such agency under section 8 of the
 Federal Deposit Insurance Act (12 U.S.C. 1818).(4)Grandfathered servicers of the enterprisesAny servicer who was approved to service mortgage loans for an enterprise on the date that is 1
 day before the date of enactment of this Act, and was in good standing
 as of such date, shall be deemed to be an approved servicer for purposes
 of initial servicer approval by the Corporation and thereafter subject to
 the requirements of this section as an approved
 servicer.(5)Small servicer exemption(A)In generalThe Corporation shall, by regulation, provide exemptions to, or adjustments for, the provisions of
 this section for approved servicers that service 7,500 or fewer eligible
 single-family mortgage loans, in order to reduce regulatory burdens while
 appropriately
 balancing protection of the Mortgage Insurance Fund.(B)Limitation of exemption eligibilityAn approved servicer and its subsidiaries and affiliates shall be considered a single entity for
 purposes of the exemption under subparagraph (A).(6)RESPA amendmentSection 6 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2605) is amended by
 adding at the end the following:(n)Small servicer exemption(1)In generalThe Bureau shall, by regulation, provide exemptions to, or adjustments for, the provisions of this
 section for servicers that service 7,500 or fewer mortgage loans, in order
 to reduce regulatory burdens while appropriately balancing consumer
 protections.(2)Limitation of exemption eligibilityAn approved servicer and its subsidiaries and affiliates shall be considered a single entity for
 purposes of the exemption under paragraph (1)..(7)PublicationThe Corporation shall—(A)publish a notice in the Federal Register upon approving any servicer under this section; and(B)maintain an updated list of approved servicers on the website of the Corporation.(c)Review, suspension, and revocation of approved status(1)Review(A)In generalThe Corporation may examine or review any approved servicer if the Corporation has substantial
 reason to believe that a servicer has engaged in a material violation or
 pattern of violations of this Act or the rules promulgated pursuant to
 this Act, including—(i)any failure by an approved servicer to comply with terms set forth in any uniform securitization
 agreement developed under section 326; or(ii)through the identification of any information indicating abnormal eligible single-family mortgage
 loan
 performance within the loan portfolio of the approved servicer.(B)2-year compliance examinationIn addition to the authority under subparagraph (A), the Corporation shall conduct an examination
 or review of an approved servicer once, but not more than once, every 2
 years, provided however that such examination or review shall be limited
 to compliance with this Act or regulations promulgated under this Act.(C)CoordinationIn conducting an exam or review authorized pursuant to subparagraph (A) or subparagraph (B), the
 Corporation shall—(i)provide reasonable notice to, and coordinate with, the appropriate Federal banking agency, the
 Bureau of Consumer Financial Protection, or State
 regulatory agency, as appropriate, for an approved servicer that is
 regulated by such Federal banking agency, the Bureau of Consumer Financial
 Protection, or State regulatory agency before
 commencing an examination of the approved servicer under this section; and(ii)to the fullest extent possible—(I)rely on the examinations, inspections, and reports of the appropriate Federal banking agency, the
 Bureau of Consumer Financial Protection, or
 State regulatory agency, as appropriate, for an approved servicer that is
 regulated by such Federal banking agency, the Bureau of Consumer Financial
 Protection, or State regulatory agency;(II)avoid duplication of examination activities, reporting requirements, and requests for information;
 and(III)ensure that approved servicers are not subject to conflicting supervisory demands by the
 Corporation, appropriate Federal banking agencies, the Bureau of Consumer
 Financial Protection, or State regulatory
 agencies, as appropriate.(D)Self certification(i)In generalTo facilitate any exam or review authorized pursuant to subparagraph (A) or subparagraph (B), each
 approved servicer shall, on an annual basis and in accordance with such
 requirements as the Corporation may establish, certify in writing to the
 Corporation that the approved servicer is in compliance with the standards
 identified under paragraphs (1) and (2) of subsection (a), all other
 requirements of this Act, and any rules promulgated pursuant to this Act.(ii)Penalty for false or misleading certifications(I)EnforcementThe Corporation shall have the authority to impose enforcement penalties with respect to an
 approved servicer who submits a certification under clause (i) that
 contains false or misleading information, in the same manner and to the
 same extent as the Federal Deposit Insurance Corporation has with respect
 to insured depository institutions under the provisions of subsections (b)
 through (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C.
 1818), except that the penalties under subsection (j) of such section 8
 shall not apply.(II)NotificationIf the Corporation takes any enforcement action against an approved servicer, the Corporation shall
 notify the approved servicer’s appropriate Federal banking agency, the
 Bureau of Consumer Financial Protection, or State regulator, if
 applicable.(2)Suspension or revocation(A)Corporation authorityIf the Corporation determines, in any exam or review authorized pursuant to paragraph (1), that an
 approved servicer no longer meets the standards for approval, the
 Corporation may suspend or revoke the approved status of such servicer.(B)Rule of constructionThe suspension or revocation of an approved servicer’s approved status under this paragraph shall
 have no effect on the status of any covered security.(3)PublicationThe Corporation shall—(A)publish in the Federal Register a list of any approved servicers who have their approved status
 suspended or revoked;
 and(B)maintain an updated list of such servicers on the website of the Corporation.(d)Appeals(1)In general(A)Appeals of denials of applicationA servicer who submits an application under subsection (b)(1) to become an approved servicer may
 appeal a decision of the Corporation denying such application.(B)Appeals of denials of benefits or suspensions of participationAn approved servicer may appeal a decision of the Corporation suspending or revoking the approved
 status of such servicer.(2)Filing of appealAny servicer who files an appeal under paragraph (1) shall file the appeal with the Corporation not
 later than 90 days after the date on which the person receives notice of
 the decision of the Corporation being appealed.(3)Final determinationThe Corporation shall make a final determination with respect to an appeal under paragraph (1) not
 later than 180 days after the date on which the appeal is filed under
 paragraph (2).(e)Transfer of mortgage servicing duties(1)In generalFor any eligible single-family mortgage loan or pool of eligible single-family mortgage loans
 collateralizing a single-family covered security insured by the
 Corporation under
 this title
 and in accordance with rules promulgated by the Corporation, the
 Corporation may require the approved servicer of any such eligible
 single-family mortgage loan or pool of eligible single-family mortgage
 loans to enter into a
 subservicing
 arrangement with any independent specialty servicer approved by the
 Corporation.(2)RulesThe rules required under paragraph (1) shall—(A)set forth with clarity the performance conditions of an approved servicer that would warrant or
 necessitate the use of the authority granted to the Corporation under this
 subsection;(B)require that the performance condition warranting or necessitating the use of such authority be of
 such type or character so as to materially and adversely affect the
 ability of the Corporation to recover any amounts owed to the Corporation;(C)for purposes of subparagraph (B), define the term materially and adversely affect;(D)require that any approved servicer whose servicing duties are subject to this subsection be
 provided a reasonable amount of time, provided that such time does not
 present a risk to the Mortgage Insurance Fund, to rebut, address, or
 correct any determination of the Corporation regarding a performance
 condition described under subparagraph (A);(E)only permit the Corporation to carry out the authority granted under this subsection upon
 expiration of the time-period allowed under subparagraph (D);(F)limit the scope of any such authority to eligible single-family mortgage loans that share similar
 underwriting,
 borrower, and performance characteristics;(G)ensure that the scope of any such authority is not applied broadly and without further limitation;
 and(H)notwithstanding subparagraphs (B) through (G), provide that an approved servicer may be subject to
 more extensive programmatic discipline or correction measures, as
 determined by the Corporation, if, during any 5-year period—(i)the servicing duties that are the subject of the current use of the Corporation’s authority under
 this subsection marks the third instance of the use of such authority with
 respect to the same approved servicer; and(ii)with respect to the prior 2 separate and individual instances of the use of such authority, the
 same approved servicer failed to cure any identified performance
 conditions or implement corrective measures as determined by the
 Corporation pursuant to subparagraph (D).(3)Cessation of compensationIf a transfer of servicing duties occurs under paragraph (1), the approved servicer from whom such
 servicing duties are extinguished shall cease to receive compensation for
 any such servicing activities related to those duties.(4)Servicer succession plans(A)In generalThe Corporation may establish a succession plan for each approved servicer, including provisions
 for—(i)a specialized servicer to replace the approved servicer if the performance of the eligible
 single-family mortgage
 loan pool serviced by such approved servicer deteriorates to specified
 levels; and(ii)a plan to achieve continuity of contact for borrowers upon the replacement of the approved
 servicer.(B)Rule of constructionNothing in this paragraph shall be construed as authorizing the Corporation to circumvent, evade,
 or otherwise disregard the rules established in paragraphs (1) and (2)
 when facilitating a transfer of servicing rights.(f)Petitions for change of servicer by private market holders(1)Development of processThe Corporation shall develop a process by which private market holders of
 the first loss position in a single-family covered security may petition
 the Corporation
 for a change in approved servicers, including specialized servicers for
 individual eligible single-family mortgage loans, if the private market
 holders can demonstrate that its investment
 was not appropriately protected by the current approved servicer,
 including by failing to meet any standard or requirement identified under
 paragraphs (1) and (2) of subsection (a).(2)Cessation of compensationIf a change in approved servicers is approved under paragraph (1)—(A)the change must occur within 30 days after the petition is approved by the Corporation; and(B)once the change required under subparagraph (A) has occurred, the approved servicer from whom such
 servicing rights are extinguished shall cease to receive compensation for
 any such servicing activities related to those rights.(g)Notice of transfer of servicing rights by current servicer(1)Notice to FMICThe Corporation shall develop a process by which an approved servicer shall provide notice to the
 Corporation of any transfer of any servicing rights of such approved
 servicer to another approved servicer.(2)Authority of FMIC to prevent, halt, or rescind a transferThe process required to be developed under paragraph (1) shall include the development of
 procedures to permit the Corporation to prevent, halt, or rescind any
 transfer of servicing rights from an approved servicer to a servicer that
 is not approved to service eligible single-family mortgage loans under
 this section or
 to any
 servicer whose approved status has been suspended or revoked pursuant to
 subsection (c)(2).(h)General authority with respect to the transfer of servicing rightsThe Corporation may develop such other standards with respect to the transfer of servicing rights
 by approved servicers as the Corporation determines necessary and
 appropriate to facilitate an orderly transfer of servicing rights after
 the suspension or revocation of the approved status of a servicer pursuant
 to subsection (c)(2).(i)Study of servicer compensation related to non-performing single-family mortgage loans(1)In generalThe Corporation shall carry out a study of servicing compensation for non-performing single-family
 mortgage loans, including alternatives to existing servicing compensation
 structures.(2)RecommendationsThe study required under paragraph (1) shall include recommendations for the optimal structure of
 servicer compensation, in order to—(A)improve service for borrowers;(B)reduce financial risk to servicers; and(C)provide flexibility for guarantors to better manage non-performing single-family mortgage loans.(3)ReportNot later than 1 year after the date of enactment of this Act, the Chairperson shall issue a report
 to the Congress containing any findings and determinations made in
 carrying out the study required under paragraph (1).(j)Rule of constructionNothing in this section shall prohibit a mortgage originator from retaining rights to service the
 eligible single-family mortgage loans it originated, provided that the
 mortgage originator—(1)meets the standards to be an approved servicer under subsection (a); or(2)qualifies for an exemption under subsection (b)(5).315.Authority to establish and approve small lender mutuals(a)Establishment of small lender mutuals(1)In generalThe Corporation shall establish 1 entity known as the Small Lender Mutual, which shall be an approved small
 lender mutual, owned by and operated for the benefit of its members, for
 the purposes of subsection (b).(2)Approval of other small lender mutualsThe Corporation shall, by regulation, establish standards for the approval by the Corporation of
 such other small lender mutuals as may be necessary to facilitate the
 purposes described in subsection
 (b).(b)PurposesThe purpose of the Small Lender Mutual established under subsection (a)(1) and any small lender
 mutual approved under
 subsection (a)(2) (in this section collectively referred to as a small lender mutual) shall be as follows:(1)To address the needs of small mortgage lenders with respect to covered securities.(2)To purchase eligible mortgage loans to securitize a covered security from its member
 participants—(A)for cash, on a single loan basis; or(B)through the sale of a portion of a multi-lender pool or multi-guarantor pool collateralized by
 eligible mortgage loans
 securitized in a covered security.(3)To obtain all necessary and appropriate credit enhancements for covered securities to support the
 lending activities of small mortgage lenders.(4)To implement policies and procedures that ensure that the access rules and fees of any small lender
 mutual are not prohibitive and do not discriminate against originators of
 eligible mortgage loans or any entity that aggregates eligible mortgage
 loans on the basis of size,
 composition, business line, or loan volume.(5)To appropriately manage the risk of the Small Lender Mutual to ensure the continued safety and
 soundness of such mutual.(c)Provisions to ensure the effective operations of small lender mutuals(1)Requirement to assess needs of small lender mutualNot later than 1 year after the date of enactment of this Act, the Federal Housing Finance Agency
 shall conduct an
 assessment of the intellectual property, technology, infrastructure, and
 processes of the enterprises relating to the operation and maintenance of
 the systems needed to ensure small mortgage lender access to the secondary
 mortgage market to determine the needs of the Small Lender
 Mutual established under subsection (a)(1). The assessment required under
 this paragraph shall be submitted to the Transition Committee established
 under section 404, or the Board if confirmed pursuant to section 404(d),
 and
 included in the transition plan required under section 602.(2)Authority to manage disposition of enterprise infrastructureAfter the agency transfer date and before the system certification date, the Federal Housing
 Finance Agency,
 consistent with title VI—(A)shall dispose of the intellectual property, technology, infrastructure, and processes of the
 enterprises relating to the operation and maintenance of the systems
 needed for small mortgage lenders to access the secondary mortgage market;
 and(B)may manage such disposition through the sale, transfer, licensing, or leasing of such intellectual
 property, technology, infrastructure, and processes of an enterprise to
 the Small Lender Mutual established under subsection (a)(1) to
 ensure that the Small Lender Mutual can access the secondary
 mortgage market and fulfill the purposes of the section.(3)Transfer of necessary technologyAfter the agency transfer date and before the system certification date, the Federal Housing
 Finance Agency,
 consistent with section 604(h), may transfer to a subsidiary or
 subsidiaries of the enterprises any function, activity,
 infrastructure, property, including intellectual property, technology, or
 any other object or service of an enterprise that the Corporation
 determines is necessary and available for the Small Lender Mutual
 established under subsection (a)(1) to carry out its activities
 and operations.(4)Initial capitalization(A)In generalThe initial capital necessary for the Small Lender Mutual to be established under subsection
 (a)(1) to purchase a subsidiary established under paragraph (3) or to
 purchase, lease, or license the systems under paragraph (2)(B), and to
 perform all other activities and functions of the Small Lender Mutual,
 including the ability of the Small Lender Mutual to
 operate a cash window for the purchase of individual eligible mortgage
 loans, shall be provided by the enterprises.(B)Determination of amountThe amount of any initial capital required to be provided by the enterprises under subparagraph (A)
 shall be determined by the Corporation based on the needs of the Small
 Lender Mutual to carry out its activities and functions, as well as
 by the current volume of business from the enterprise-approved sellers
 that are eligible to participate, pursuant to subsection (e), as a member
 of the Small Lender Mutual.(C)Repayment(i)In generalThe amount of any initial capital required to be provided by the enterprises under subparagraph (A)
 shall be repaid by the Small Lender Mutual established under
 subsection (a)(1) on a schedule jointly agreed to by the Small Lender
 Mutual and the Corporation.(ii)Repayment period(I)In generalThe repayment of any amounts required under clause (i) shall be completed within 7 years from the
 system certification date.(II)Authority to extend repayment periodThe Corporation, after consultation with the mutual board of the Small Lender Mutual established
 under subsection (a)(1), may extend the repayment period set
 forth under subclause (I) for an additional 3 years, if, in the sole
 discretion of the Corporation, the Corporation deems such extension
 necessary.(d)Ensuring fair competitionThe Federal Housing Finance Agency may, consistent with the public interest, for the maintenance of
 fair competition
 among all small lender mutuals, and for the purposes set forth in this
 section, provide, through a licensing agreement or other agreement, access
 to any
 technology or platform transferred pursuant to subsection (c)(3).(e)Eligibility(1)In generalEligibility to participate as a member in any small lender mutual shall be limited to any—(A)insured depository institution having less than $500,000,000,000 in total consolidated assets at
 the time of the initial participation of the institution in the small
 lender mutual;(B)non-depository mortgage originator that—(i)has a minimum net worth of $2,500,000;(ii)has annual eligible mortgage loan production of less than $100,000,000,000; and(iii)(I)prior to the system certification date, was approved to sell mortgage loans to an enterprise on the
 date that is 1 day prior to the establishment or approval of the small
 lender mutual, provided that such originator was in good standing as of
 such date; or(II)meets the standards established by the small lender mutual pursuant to subsection (l);(C)Community Development Financial Institution that meets the standards established by the small
 lender mutual pursuant to subsection (l);(D)mission-based nonprofit lender that meets the standards established by the small lender mutual
 pursuant to subsection (l);(E)housing finance agency that meets the standards established by the small lender mutual pursuant to
 subsection (l); and(F)Federal Home Loan Bank.(2)Access of originatorsAn entity eligible to participate as a member of a small lender mutual may not be required to
 become an approved entity under this Act to access any function or
 operation of a small lender mutual.(3)Rule of constructionEach entity eligible to participate as a member of a small lender mutual under this section shall
 meet all applicable standards and requirements under this Act.(f)ReportNot later than 2 years after the date on which the Small Lender Mutual is established under
 subsection (a)(1), the Corporation shall—(1)conduct and complete a study evaluating the criteria for eligibility as a member of the Small
 Lender Mutual under subparagraphs (A) and (B) of subsection (e)(1); and(2)submit a report to Congress, which shall include an evaluation of—(A)whether the participation levels of members of the Small Lender Mutual under subparagraphs (A) and
 (B) of subsection (e)(1) are sufficient to create the economies of scale
 and liquidity necessary for competitive pricing in the secondary mortgage
 market;(B)the ability of the Small Lender Mutual to ensure access for small mortgage lenders to the secondary
 mortgage market;(C)the impact of the asset and net worth eligibility criteria established in subparagraphs (A) and (B)
 of subsection (e)(1) on the size, competitiveness, and membership of the
 Small Lender Mutual;(D)whether the eligibility thresholds established in subparagraphs (A) and (B) of subsection (e)(1)
 are facilitating or impeding the creation of a robust market for approved
 guarantors;(E)whether the establishment of other eligibility criteria in subparagraphs (A)
 and (B) of subsection (e)(1) would better serve members of the Small
 Lender Mutual, including such other criteria as—(i)a different asset threshold;(ii)an annual mortgage loan origination threshold; or(iii)a mortgage loan production cap;(F)whether the Small Lender Mutual is fully meeting the cash window needs of small mortgage lenders;
 and(G)whether the Small Lender Mutual is adequately capitalized to meet the needs of members of the Small
 Lender Mutual and protect the Mortgage Insurance Fund.(g)Eligibility thresholdsBeginning on the date on which the Corporation submits the report required under subsection (f),
 the Corporation may adjust the eligibility thresholds established in
 subparagraphs (A) and (B) of
 subsection (e)(1) if the Corporation, in consultation with the mutual
 board of a small lender mutual, determines that—(1)the thresholds do not facilitate the purposes of the small lender mutual as described in subsection
 (b);(2)the thresholds restrict small multifamily lenders’ participation in the small lender mutual;(3)the thresholds do not foster competition in the secondary mortgage market; or(4)the thresholds pose a risk to the Mortgage Insurance Fund.(h)ReassessmentBeginning on the date on which the Corporation submits the report required under subsection (f),
 the Corporation shall, on an annual basis, reassess the Small Lender
 Mutual’s eligibility thresholds.(i)Platform membershipEach small lender mutual shall be a member of the Securitization Platform.(j)Funding authority(1)Authority to establish membership feesThe mutual board of each small lender mutual shall charge and collect fees from its
 member participants—(A)for membership in the small lender mutual; and(B)to cover the costs of—(i)in the case of the Small Lender Mutual established under subsection (a)(1)—(I)the purchase of any function, activity, infrastructure, property, including intellectual property,
 technology, or any other object or service from an enterprise pursuant to
 subsection (c);(II)any initial capital for the establishment of a cash window; and(III)the repayment of amounts required under subsection (c)(4)(C), provided that any fee charged to
 cover such repayment amounts is applicable only to those member
 participants identified and approved after the establishment date of the
 Small Lender Mutual and before the repayment date established
 under subsection (c)(4)(C)(ii); and(ii)the continued operation of the small lender mutual, including to build capital reserves and to
 manage risks.(2)Equitable compensation of certain member participants of Small Lender MutualThe mutual board of the Small Lender Mutual established under subsection (a)(1) may, in
 addition to any fee required under paragraph (1), charge and collect a
 fee from member participants identified and approved after the repayment
 date established under subsection (c)(4)(C)(ii) to compensate member
 participants identified and approved prior to such repayment date for the
 share of the fees paid by such member participants to cover the cost of
 repayment amounts
 pursuant to paragraph (1)(B)(i)(III).(3)Authority to increase or decrease feesThe mutual board of each small lender mutual may, in its discretion and upon
 consultation with the Corporation, increase or decrease any fee authorized
 under paragraph (1).(4)Provision of fee schedule to FMICThe mutual board of each small lender mutual shall, on an annual basis and upon any
 increase or decrease of any fee authorized under paragraph (1), provide
 the Corporation with a schedule of the fees charged by the small lender
 mutual to its member participants.(5)LimitationThe fees authorized under paragraph (1)—(A)shall be equitably assessed; and(B)shall not discriminate against originators of eligible mortgage loans or any entity that aggregates
 eligible mortgage loans on
 the basis of size, composition, business line, or loan volume.(6)Authority to reduce fees(A)In generalIf a small lender mutual, in consultation with the Corporation, determines that
 any fee or fees authorized under this subsection are prohibitive or
 discriminatory, the small lender mutual may, in the interest of building
 the membership of the small lender mutual, lower any such fee or fees.(B)Reasonableness and considerationsEach small lender mutual shall, in consultation with the Corporation, set
 reasonable criteria for any determination authorized under subparagraph
 (A). The criteria required to be set forth under this subparagraph shall
 consider the potential impact on the financial safety and soundness of the
 small lender mutual.(k)Governance(1)Recognition of important role of smaller institutionsThe mutual board of each small lender mutual, in consultation with the Corporation,
 shall take all reasonable steps necessary to establish governance
 provisions that reflect the important role in the mortgage market played
 by the member participants of small lender mutuals.(2)Mutual board(A)In generalThe management of each small lender mutual shall be vested in a board of 15
 directors (in this section referred to as the mutual board), which shall include representatives of approved member participants of the small lender mutual.(B)Appointment of mutual board of Small Lender Mutual(i)Initial appointmentThe Corporation shall make initial appointments of the members of the mutual board for the Small
 Lender Mutual established under subsection (a)(1). Each such
 initial appointment shall be for a term of 1 year.(ii)AppointmentsUpon expiration of the 1-year period set forth under clause (i), the member participants of the
 Small Lender Mutual established under subsection (a)(1) shall
 elect the members of the mutual board of the Small Lender Mutual
 from within the membership of the Small Lender Mutual.(C)Independent directorsThe mutual board of each small lender mutual shall have at least 1
 independent director to serve the public interest. The independent
 director required under this subparagraph shall have a history of
 representing consumer or community interests on banking services, credit
 needs, housing, or financial consumer protections.(D)Representation on BoardNo more than 1/3 of the directors of the mutual board of the Small Lender Mutual may be held by a single category
 of member participants, which shall be defined for purposes of this
 subsection as community banks, credit unions, non-depository mortgage
 originators, Federal Home Loan Banks, housing finance agencies, Community
 Development Financial Institutions, and mission-based nonprofit lenders.(3)Representation to the PlatformThe mutual board of the Small Lender Mutual shall select, on a rotating basis from representative
 of its directors, an individual to serve as a Platform Director under
 section 322.(4)Representation of multiple small lender mutualsIf more than 1 small lender mutual is approved under this section, each small lender mutual shall
 rotate the representation position under section 322.(5)No preferences for sizeMember participants of each small lender mutual shall have equal voting rights on
 any matters before the small lender mutual of which it is a member,
 regardless of the size of the individual member participant.(6)Rule of constructionFor purposes of this subsection, a member participant and its subsidiaries, joint offices, and
 affiliates shall be treated as a single entity and shall be entitled to
 cast a single vote on any matters before the small lender mutual of which
 it is a member.(l)Approval of member participants(1)In generalEach mutual board established under subsection (k) shall develop standards and procedures to
 approve the application of member participants in the small lender mutual.(2)Content of standardsThe standards required under paragraph (1) shall include standards relating to the—(A)prospective members’ compliance history with Federal and State law;(B)safety and soundness of prospective member participants; and(C)mortgage underwriting practices of the prospective member.(3)Coordination with other regulators(A)ConsultationIn approving any prospective member to become a member participant in a small lender mutual, the
 mutual board of that small lender mutual may
 consult and share information with—(i)the appropriate Federal banking agency and State regulator of the prospective member; or(ii)the Bureau of Consumer Financial Protection, if the Bureau of Consumer Financial Protection has
 supervisory authority over the prospective member.(B)Privilege preservedInformation shared pursuant to subparagraph (A) shall not be construed as waiving, destroying, or
 otherwise affecting any privilege or confidential status that a
 prospective member may claim with respect to such information under
 Federal or State law as to any person or entity other than the board of
 directors or its appropriate Federal banking agency.(C)Rule of constructionNo provision of this subsection may be construed as implying or establishing that—(i)any prospective member waives any privilege applicable to information that is shared or transferred
 under any circumstance to which this subsection does not apply; or(ii)any prospective would waive any privilege applicable to any information by submitting the
 information directly to its primary Federal or State regulator, but for
 this
 subsection.(4)Streamlining for existing lenders approved by the enterprisesEach mutual board established under subsection (k) shall develop streamlined membership standards
 and procedures for any lender who was approved to sell mortgage loans to
 an enterprise on the date that is 1 day before the date of enactment of
 this Act, and was in good standing as of such date.(m)Cash window(1)Requirement for small lender mutualsEach small lender mutual shall have the ability to operate a cash window for the
 purchase of individual eligible single-family mortgage loans.(2)Standards to ensure safety and soundnessTo ensure the safety and soundness of each small lender mutual, the Corporation
 shall establish standards for the regulation, supervision, and operation
 of each cash window required under paragraph (1).(3)Licensing of cash window technologyThe Federal Housing Finance Agency may, consistent with the public interest and for the maintenance
 of fair
 competition
 among entities providing cash window services, provide, through a
 licensing agreement or other agreement, access to any technology or
 platform relating to a cash window transferred under paragraph (3) of
 subsection (c).(n)Recognition of distinction between small lender mutual companies and other aggregatorsPrior to promulgating any regulation or taking any other formal or informal action of general
 applicability, including the issuance of an advisory document or
 examination guidance, the Corporation shall consider the differences
 between small lender mutuals and other approved
 aggregators with respect to—(1)the cooperative ownership structure of small lender mutuals;(2)the purposes of small lender mutuals as set forth in subsection (b);(3)the capital structure of small lender mutuals; and(4)any other differences that the Corporation considers appropriate.(o)Coordination of servicer approvalEach mutual board established under subsection (k) may coordinate with the Corporation to
 facilitate the application process for its member participants to become
 approved servicers of the Corporation pursuant to section 314.(p)Multifamily studyNot later than 1 year after the agency transfer date, the Corporation shall conduct and complete a
 study to determine—(1)the access needs of small multifamily mortgage lenders to the secondary multifamily mortgage
 market; and(2)whether the Small Lender Mutual established under subsection (a)(1) can meet the access needs of
 small multifamily
 mortgage lenders.(q)Prohibited activitiesA small lender mutual may not guarantee any mortgage loans or mortgage-backed securities.316.Supervisory actions related to capital and solvency(a)Capital classifications(1)EstablishmentThe Corporation shall establish, by regulation, capital classifications regarding the levels of
 capital maintained by each type of covered entity.(2)ClassesIn carrying out the requirement under paragraph (1), the Corporation shall classify covered
 entities according to the following capital classifications:(A)Well capitalizedA covered entity shall be classified as well capitalized if the entity meets or exceeds all of the
 capital and solvency standards required under section
 309(b).(B)Adequately capitalizedA covered entity shall be classified as adequately capitalized if the entity meets or exceeds
 some, but not all, of the capital and solvency standards required under
 section 309(b).(C)UndercapitalizedA covered entity shall be classified as undercapitalized if the entity fails to meet any of the
 capital and solvency standards required under section
 309(b).(D)Significantly undercapitalizedA covered entity shall be classified as significantly undercapitalized if the entity is
 significantly below any of the capital and solvency standards required
 under section
 309(b).(E)Critically undercapitalizedA covered entity shall be classified as critically undercapitalized if the entity is critically
 below any of the capital and solvency standards required under section
 309(b).(3)Discretionary classification(A)Grounds for reclassificationThe Corporation may reclassify the capital classification of a covered entity if—(i)at any time, the Corporation determines, in writing, that the covered entity is engaging in conduct
 that could result in a rapid depletion of capital held by the covered
 entity;(ii)after notice and an opportunity for hearing, the Corporation determines that the covered entity is
 in an unsafe or unsound condition;(iii)pursuant to the requirements of this title, the Corporation deems the covered entity to be engaging
 in an unsafe or unsound practice;(iv)the covered entity does not submit a capital restoration plan within the applicable time period
 that is substantially in compliance with regulations for such plans
 adopted by the Corporation;(v)the Corporation does not approve the capital restoration plan submitted by the covered entity; or(vi)the Corporation determines that the covered entity has failed to comply with the capital
 restoration plan and fulfill the schedule for the plan approved by the
 Corporation in any material respect.(B)ReclassificationIn addition to any other action authorized under this title, including the reclassification of a
 covered entity for any reason not specified in this subsection, if the
 Corporation takes any action described in subparagraph (A), the
 Corporation may classify a covered entity as appropriate.(4)Restriction on capital distributions(A)In generalA covered entity shall make no capital distribution if, after making the distribution, the covered
 entity would be classified as anything other than well capitalized or
 adequately capitalized.(B)ExceptionNotwithstanding subparagraph (A), the Corporation may permit a covered entity, to the extent
 appropriate or applicable, to repurchase, redeem, retire, or otherwise
 acquire shares or ownership interests if the repurchase, redemption,
 retirement, or other acquisition—(i)is made in connection with the issuance of additional shares or obligations of the covered entity
 in at least an equivalent amount;(ii)will reduce the financial obligations of the covered entity or otherwise improve the financial
 condition of the covered entity;(iii)will enhance the ability of the covered entity to promptly meet the minimum capital level for the
 covered entity;(iv)contributes to the long-term financial safety and soundness of the covered entity; or(v)furthers the public interest.(b)Adequately capitalizedIf a covered entity is classified as adequately capitalized:(1)Mandatory capital restoration planThe Corporation shall require the covered entity to—(A)submit to the Corporation a capital restoration plan; and(B)implement the plan after approval.(2)Discretionary safeguardsThe Corporation may take, with respect to an adequately capitalized covered entity, any of the
 actions authorized to be taken under subsection (c) with respect to an
 undercapitalized covered entity, if the Corporation determines that such
 actions are necessary to carry out the purposes of this subtitle.(c)UndercapitalizedIf a covered entity is classified as undercapitalized:(1)Mandatory capital restoration planThe Corporation shall require the covered entity to—(A)submit to the Corporation a capital restoration plan; and(B)implement the plan after approval.(2)Restriction on asset growthAn undercapitalized covered entity shall not permit its average total assets during any calendar
 quarter to exceed its average total assets during the preceding calendar
 quarter, unless—(A)the Corporation has accepted the capital restoration plan of the covered entity;(B)any increase in total assets is consistent with the capital restoration plan; and(C)the ratio of capital to total assets of the covered entity increases during the calendar quarter at
 a rate sufficient to enable the covered entity to become adequately
 capitalized within a reasonable time.(3)Prior approval of acquisitions and new activitiesAn undercapitalized covered entity shall not, directly or indirectly, acquire any interest in any
 entity or engage in a new activity, unless—(A)the Corporation has accepted the capital restoration plan of the covered entity, the covered entity
 is implementing the plan, and the Corporation determines that the proposed
 action is consistent with and will further the achievement of the plan; or(B)the Corporation determines that the proposed action will further the purpose of this section.(4)Required monitoringThe Corporation shall—(A)closely monitor the condition of any undercapitalized covered entity;(B)closely monitor compliance with the capital restoration plan, restrictions, and requirements
 imposed on an undercapitalized covered entity under this section; and(C)periodically review the capital restoration plan, restrictions, and requirements applicable to an
 undercapitalized covered entity to determine whether the plan,
 restrictions, and requirements are achieving the purpose of this section.(5)Discretionary safeguardsThe Corporation may take, with respect to an undercapitalized covered entity, any of the actions
 authorized to be taken under subsection (d) with respect to a
 significantly undercapitalized covered entity, if the Corporation
 determines that such actions are necessary to carry out the purpose of
 this subtitle.(d)Significantly undercapitalizedIf a covered entity is classified as significantly undercapitalized:(1)Mandatory capital restoration planThe Corporation shall require the covered entity
 to—(A)submit to the Corporation a capital restoration plan; and(B)implement the plan after approval.(2)Discretionary supervisory actions for significantly undercapitalized covered entitiesIn addition to any other actions taken by the Corporation, the Corporation may, at any time, take
 any of the following actions with respect to a covered entity that is
 classified as significantly undercapitalized:(A)Limitation on obligationsLimit any increase in, or order the reduction of, any obligations of the covered entity, including
 off-balance sheet obligations.(B)Limitation on growthLimit or prohibit the growth of the assets of the covered entity, or require reduction of the
 assets of the covered entity.(C)Acquisition of new capitalRequire the covered entity to raise new capital in a form and amount determined by the Corporation.(D)Restriction on activitiesRequire the covered entity to terminate, reduce, or modify any activity that creates excessive risk
 to the covered entity, as determined by the Corporation.(E)Improvement of managementTake 1 or more of the following actions:(i)New election of BoardOrder or hold a new election for the board of directors of the covered entity.(ii)Dismissal of directors or executive officersRequire the covered entity to dismiss from office any director or executive officer who had held
 office for more than 180 days immediately before the date on which the
 covered entity became undercapitalized.(iii)Employ qualified executive officersRequire the covered entity to employ qualified executive officers (who, if the Corporation so
 specifies, shall be subject to approval by the Corporation).(e)Critically undercapitalized(1)Regulated entityThe Corporation shall have the authority to resolve a critically undercapitalized regulated entity
 pursuant to section 1367 of the Safety and
 Soundness Act (12 U.S.C. 4617), as amended by this Act.(2)Covered entityThe Corporation shall have the authority to resolve a covered entity that is classified as failing
 or critically undercapitalized pursuant to
 the resolution authority granted to the Corporation under section 311(h),
 section 312(h), section 313(g), and section 703(i), as applicable.317.Ownership, acquisitions, and operations of covered entities(a)Ownership and acquisitions of covered entitiesIt shall be unlawful, except with the prior approval of the Corporation, for any person to—(1)directly or indirectly own, control, or have power to vote 10 percent of any class of voting shares
 of any covered entity (except to the extent that voting stock is required
 to be purchased by Federal statute as a
 condition to participate in the programs of the covered entity);(2)control in any manner the election of a majority of the directors or trustees of any covered
 entity;(3)exercise a controlling influence over the management or policies of any covered entity;(4)merge or consolidate with any covered entity; or(5)divest a covered entity, or any substantial line of business of a covered entity, into any
 surviving entity.(b)Application and approval process(1)In generalThe Corporation shall establish, by regulation, an application, in such form and manner and
 requiring such information as the Corporation may require, for the
 approval of acquisitions, mergers, consolidations, or divestitures under
 subsection (a).(2)Application reviewThe Corporation shall—(A)establish internal timelines for its processing of applications under this section, including
 timelines for any action to approve or to deny an application under this
 section; and(B)notify any applicant seeking to undertake an action described under subsection (a) of the decision
 of the Corporation to approve or to deny their application as promptly as
 practicable.(c)Standards for approval of applicationThe Corporation shall establish, by regulation, standards for the approval by the Corporation of
 acquisitions, mergers, consolidations, or divestitures under subsection
 (a). The standards required under this subsection shall, at a minimum, be
 based on—(1)the application process established by the Corporation under subsection (b)(1);(2)the financial history and condition of the applicant;(3)the capability of the management of the applicant;(4)the general character and fitness of the officers and directors of the applicant, including the
 compliance history of the applicant’s officers and directors with Federal
 and State laws and the rules and regulations promulgated by
 self-regulatory organizations (as defined in section 3(a)(26) of the
 Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as applicable;(5)the risk presented by such acquisition, merger, consolidation, or divestiture to the Mortgage
 Insurance Fund;(6)any other standard the Corporation determines necessary to promote competition and mitigate market
 dislocations among covered entities in the secondary mortgage market; and(7)any other standard the Corporation determines necessary or appropriate.(d)ApprovalThe Corporation—(1)may approve any application made pursuant to this section if the applicant meets the standards
 established under subsection (c);(2)may not approve—(A)any application under this section which would result in a monopoly; or(B)any other proposed acquisition or merger or consolidation under this section whose effect in any
 area of the United States may be substantially to lessen competition, or
 to tend to create a monopoly, or which in any other manner would be in
 restraint of trade, unless the Corporation finds that the anticompetitive
 effects of the proposed transaction are clearly outweighed in the public
 interest by the probable effect of the transaction in meeting the needs of
 consumers and the communities served; and(3)shall have the authority to deny any application made pursuant to paragraph (1) if an officer or
 director of the applicant has, at any time prior to the date of the
 approval of such application, been—(A)subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act
 of 1934 (15 U.S.C. 78c(a)(39)); or(B)suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited from certain action
 pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit
 Insurance Act (12 U.S.C. 1818(e)), subject to an action resulting in a
 written agreement or other written statement under section 8(u)(1) of the
 Federal Deposit Insurance Act (12 U.S.C. 1818(u)(1)), for which a
 violation may be enforced by an appropriate Federal banking agency, or
 subject to any final order issued with respect to any administrative
 enforcement proceeding initiated by such agency under section 8 of the
 Federal Deposit Insurance Act (12 U.S.C. 1818).(e)Restrictions on engaging in other lines of business(1)For approved guarantors and approved multifamily guarantorsAn approved guarantor or approved multifamily guarantor may not engage in any activity relating to
 the business of insurance, other than any activity carried out by an
 approved guarantor or approved multifamily guarantor and approved by the
 Corporation pursuant to sections 311 or 703.(2)Other activitiesAn approved guarantor or approved multifamily guarantor may engage in any business activity
 unrelated to the business of insurance, subject to—(A)the prior approval of the Corporation; and(B)any terms and conditions set forth by the Corporation.(3)Rule of constructionNothing in paragraph (1) or (2) shall be construed to prevent an approved guarantor from being an
 affiliate of a private mortgage insurer if approved by the Corporation.(f)Limits on support or guarantee arrangement(1)In generalAn approved guarantor or approved multifamily guarantor may not enter into any agreement, covenant,
 or other arrangement (including any credit risk-sharing arrangement) with
 an affiliate or other person to support, guarantee, or finance
 any operation or activity of that affiliate.(2)SupportSubject to any terms and conditions established by the Corporation, by regulation or order, an
 approved guarantor or approved multifamily guarantor may enter into an
 agreement, covenant, or other arrangement with an affiliate solely for the
 purpose of supporting, guaranteeing, or financing an operation or activity
 of the approved guarantor or approved multifamily guarantor.(3)Rule of constructionNothing in this section shall supersede the requirements under sections 23A and 23B of the Federal
 Reserve Act (12 U.S.C. 371c, 371c-1).(g)Anti-steering requirement(1)In generalThe Corporation shall, by regulation, prohibit discounts made by an approved guarantor for any
 mortgage originator that is an investor, or an affiliate of an investor,
 in the approved guarantor that are not otherwise available to other
 similar mortgage originators.(2)ReportThe Office of the Inspector General of the Federal Mortgage Insurance Corporation shall, on an
 annual basis, submit a report to the Corporation and to Congress on the
 practices and internal controls of approved guarantors with respect to
 steering or preferential treatment for their investors prohibited by this
 section.CSecuritization Platform and Transparency in Market OperationsISecuritization Platform321.Establishment of the Securitization Platform(a)In generalThe Corporation shall establish an entity known as the Securitization Platform (in this part referred to as the Platform) that shall be a utility owned by and operated for the benefit of its members as—(1)a nonprofit cooperative; or(2)a cooperative entity other than as described under paragraph (1) that—(A)best
 achieves the purposes and obligations of the Platform under
 section 325; and(B)serves the public interest.(b)Regulated by the CorporationThe Platform shall be regulated and supervised by the Corporation.(c)Incorporation(1)Non Federal statusThe Platform shall not be an agency or instrumentality of the Federal Government.(2)Discretion as to legal formThe Corporation shall determine the legal form of incorporation of the Platform.(3)Situs of incorporationThe Corporation shall—(A)determine in which of the several States to incorporate the Platform; and(B)have the authority to amend the State of incorporation to best effectuate the purposes and
 obligations of this part
 and other provisions of this Act.(4)Timing of incorporationNot later than 1 year after the agency transfer date, the Corporation shall file and submit the
 necessary documents to incorporate the Platform in the State determined
 under paragraph (3)(A).(d)Funding by the Corporation and transfer of property(1)Transfer of funds from the CorporationAt a time established by the Corporation, the Corporation shall transfer to the Platform such funds
 as the Corporation, in consultation with the Platform Directors,
 determines may be reasonably necessary for the Platform to begin carrying
 out the activities and operations of the Platform.(2)Transfer of property(A)In generalConsistent with title VI, the Federal Housing Finance Agency, in consultation with the Corporation
 and, as appropriate, the enterprises, may direct
 the enterprises to transfer or sell to the Platform any property,
 including but not limited to, intellectual property, technology, systems,
 and infrastructure (including technology, systems, and infrastructure
 developed by the enterprises for the CSP), as well as any other legacy
 systems, infrastructure, and processes that may be necessary for the
 Platform to carry out the functions and operations of the Platform.(B)Contractual and other legal obligationsAs may be necessary for the Corporation, the Federal Housing Finance Agency, and the enterprises to
 comply with legal, contractual, or other obligations, the Federal Housing
 Finance Agency
 shall have the authority to require that any transfer authorized pursuant
 to subparagraph (A) occurs as an exchange for value, including through the
 provision of appropriate compensation to the enterprises (including as
 provided in subparagraphs (C) and (D)), or other entities responsible for
 creating, or contracting with, the CSP.(C)Maximum return to senior preferred shareholders of the enterprisesThe transfer or sale of property to the Platform under this paragraph shall, as appropriate, be
 managed by the Federal Housing Finance Agency to obtain resolutions that
 maximize the return
 for the senior preferred shareholders of the enterprises to the extent
 that such resolutions—(i)are consistent with facilitating—(I)a deep, liquid, and resilient secondary mortgage market for single-family and multifamily
 mortgage-backed
 securities to support access to mortgage credit in the primary
 mortgage market; and(II)an orderly transition from housing finance markets facilitated by the enterprises to housing
 finance markets facilitated by the Corporation with minimum disruption in
 the availability of loan credit;(ii)are consistent with applicable Federal and State law;(iii)comply with the requirements of this Act and the amendments made by this Act; and(iv)protect the taxpayer from having to absorb losses incurred in the secondary mortgage market.(D)Required determinations for sale of assets to the PlatformThe Federal Housing Finance Agency may not require the enterprises to make a sale to the Platform
 under subparagraph
 (A) that involves the disposition of the property or assets of the
 enterprises unless the Federal Housing Finance Agency determines that the
 sale—(i)is consistent with an orderly transition from housing finance markets facilitated by
 the enterprises to efficient housing finance markets facilitated by the
 Corporation with minimum disruption in the availability of loan credit;(ii)does not impede or otherwise interfere with the ability of the Federal Housing Finance Agency or
 the Corporation to carry out the
 functions and requirements of this Act;(iii)does not transfer, convey, or authorize any guarantee or Federal support, assistance, or backing,
 implicit or explicit, related to any such property or assets being sold;
 and(iv)will maximize the return for the senior preferred shareholders as required under subparagraph (C).(e)Platform operabilityThe Corporation shall establish sufficient redundancies in the Platform so that in the event of
 operational disruption of the Platform, there is sufficient back-up
 capacity to—(1)process payments on existing securities issued through the Platform; and(2)structure, form, and issue new securities through the Platform.(f)Use by other entities in exigent circumstance(1)In generalOn and after the system certification date, if the Corporation determines that operational or
 other problems with the Platform do not permit the Platform to operate in
 a manner that allows the Platform to achieve the purposes and
 obligations of the Platform under section 325, the Corporation shall have
 the authority to
 permit the Platform Directors to use entities other than the Platform to
 perform the issuance functions required to be performed through the
 Platform and
 that are
 necessary for the proper functioning of the secondary mortgage
 market.(2)Rule of constructionAny entity permitted to perform issuance functions that would ordinarily be expected to be
 performed by the Platform under paragraph (1) shall be regulated and
 supervised, as appropriate, by the Corporation as if such entity were the
 Platform itself.322.Management of the Platform(a)Platform Directors(1)Authority of the Board(A)In generalThe Platform Directors shall have all the powers necessary to carry out the purposes, powers, and
 functions of the Platform, and in the exercise of such purposes, powers,
 and functions, and upon approval of the Corporation, shall adopt such
 rules and guidance and issue such orders as the Platform Directors deem
 necessary and
 appropriate.(B)Conflicts of interestThe Platform Directors shall develop policies and procedures to monitor and mitigate potential
 conflicts of interest in carrying out the purposes, powers, and
 functions of the Platform.(2)Initial Board(A)CompositionThe initial Platform Directors shall be comprised of 5 directors, each of whom shall be appointed
 by the Board of Directors but none of whom shall be a member of the
 Board of Directors.(B)Timing of appointment of initial Platform DirectorsThe initial Platform Directors shall be appointed pursuant to subparagraph (A) not later than 180
 days after the later of—(i)the filing of the necessary documents to incorporate the Platform as required under section
 321(c); or(ii)the approval of the incorporation of the Platform by the relevant State.(C)Term(i)In generalEach initial Platform Director appointed pursuant to subparagraph (A) shall serve for a
 term of 1 year.(ii)Authority to extend termThe Board of Directors may—(I)in its discretion, extend for an additional year the term of each initial Platform Director
 appointed pursuant to subparagraph (A); and(II)upon a determination by the Corporation that the Platform membership does not reflect the diversity
 or variety of market participants required to conduct the election of the
 Platform Directors under paragraph (3), extend for an additional 2
 years the term of each initial Platform Director appointed pursuant to
 subparagraph (A).(D)Purpose of the initial Platform DirectorsThe initial Platform Directors shall—(i)draft and enact initial bylaws and other governance documents for the operation of the Platform,
 including policies and procedures pursuant to paragraph (1)(B);(ii)establish criteria for membership in the Platform consistent with the requirements of section
 323;(iii)establish any necessary initial fee structures or usage fee structures under section 324; and(iv)organize and conduct the election of the Platform Directors from the Platform members as
 required by paragraph (3).(3)Elected Board(A)Required election; timing of electionUpon the expiration of the term of the members of the initial Platform Directors, the members of
 the Platform shall, in accordance with subparagraphs (B) through (F),
 elect
 new Platform Directors.(B)Composition(i)DiversityThe Platform Directors elected pursuant to this paragraph shall reflect the diverse range of
 Platform members, including large, mid-size, and small business members.(ii)Members(I)In generalThe Platform Directors elected pursuant to this paragraph shall be comprised of 9 directors as
 follows:(aa)8 member directors, including—(AA)7 member directors who shall be elected from among representatives of the members in the Platform,
 at least 1 of whom shall represent the interests of small mortgage
 lenders; and(BB)1 member director who shall be a representative of a small lender mutual, as established under
 section 315(k).(bb)1 independent director.(II)Independent directorThe independent director elected pursuant to this paragraph—(aa)shall not be an affiliate of any member in the Platform; and(bb)shall have demonstrated knowledge of, or experience in, financial management, financial services,
 risk management, information technology, or housing finance, which may
 include affordable housing finance.(C)ChairpersonThe Chairperson of the Platform Directors shall be elected from among the Platform Directors
 elected under this paragraph.(D)Term(i)In generalEach Platform Director elected under this paragraph shall serve for a term of 2 years.(ii)Staggered termsNotwithstanding clause (i)—(I)the first elected chairperson of the Platform Directors shall be elected to serve for a term of 2
 years; and(II)of the first 8 other Platform Directors not elected to serve as chairperson:(aa)4 shall be elected to serve for a term of 2 years.(bb)4 shall be elected to serve an initial term of 1 year.(E)Equal votesPlatform Directors shall have equal voting rights on any matters before the Platform Directors.(F)Nomination and election proceduresProcedures for the nomination and election of Platform Directors shall be prescribed by the bylaws
 adopted
 by the Platform Directors in a manner consistent with the purposes and
 provisions of this part.(G)Restructuring of Platform DirectorsThe Platform Directors elected under this paragraph, with approval from the Corporation, may choose
 to restructure or
 reorganize the Platform Directors in a manner different than what is
 specified under this paragraph following a determination
 by the Platform Directors and the Corporation that a different Platform
 board structure or Platform board composition would better achieve the
 purposes and obligations of this Act, or better serve the owners of the
 Platform in a manner consistent with the public interest.(b)Executive officersThe Platform Directors shall appoint a chief executive officer, chief financial officer,
 comptroller, chief regulatory officer, and any other officers as the
 Platform Directors deem necessary to carry out the management and
 administration of the functions and operations of the Platform.323.Membership in the Platform(a)Application(1)In generalA person seeking to become a member in the Platform, or to be reinstated as a member in the
 Platform, shall file an application with the Platform Directors.(2)StandardsConsistent with achieving a broad membership that includes small mortgage lenders, as well as
 large, mid-size, and small business members, the Platform Directors shall
 develop procedures and standards for—(A)the application of persons seeking to become members in the Platform; and(B)the approval of applicants for membership in the Platform.(3)Additional standards for approved entitiesThe standards for the approval by the Platform Directors of an approved entity as
 a member in the Platform shall be consistent with and supplement any
 standards, requirements, and obligations applicable to the approved entity
 under subtitle B of this title, or any other provision of this Act.(b)MembersThe Platform Directors may approve as a member of the Platform any person that applies for
 membership in the Platform pursuant to subsection (a) that is—(1)a mortgage aggregator;(2)a mortgage guarantor;(3)a mortgage originator;(4)a Federal Home Loan Bank or a subsidiary or joint office approved under section 312 of one or more
 Federal Home Loan Banks;(5)a small lender mutual established or approved under section 315; or(6)any other market participant, provided that in the sole determination of the Platform Directors,
 having such market participant as a member of the Platform is necessary
 or helpful to fulfilling the purposes and obligations of the
 Platform under section 325.(c)TerminationThe Platform Directors may terminate membership in the Platform of any member
 for failure to adhere to any standards established by the Platform
 Directors.324.Fees(a)In generalThe Platform Directors may assess and collect fees, and may, in their discretion, increase or
 decrease such fees, from the members in the Platform—(1)for initial membership in the Platform, consistent with the requirements of subsection (b);(2)to maintain ongoing membership in the Platform;(3)for use of the Platform, consistent with the requirements of subsection (c); and(4)to cover the ongoing costs of the functions and operations of the Platform, including—(A)the purchase of property, technology, and systems developed by either enterprise or others;(B)to develop and invest in new technology;(C)to build a capital base that would be able to offset, or otherwise mitigate, losses that might
 occur due to the potential operational failure of the Platform; and(D)to conduct any other activities approved by the Platform Directors.(b)Initial feeUpon approval of its application to become a member in the Platform, each new approved member shall
 pay to the Platform a fee in an amount to be determined by the
 Platform Directors, provided that such fee amount is consistent with
 obtaining a broad membership in the Platform that includes small
 mortgage lenders, as well as large, mid-size, and small business members.(c)Usage fees(1)EstablishmentEach member in the Platform shall pay usage fees, as such fees are determined by the Platform
 Directors.(2)Review of feesThe Platform Directors shall, not less than annually, review the fee structure established under
 this subsection and submit any resulting recommendations to amend the fee
 structure to the Corporation.(3)Assessment and measurement(A)In generalExcept as otherwise provided under subparagraphs (B) and (C), usage fees charged and collected
 under this
 subsection shall be equitably assessed and based upon the member’s use of
 the services offered by the Platform, as such use is to be measured by
 the total principal balance of the mortgage loans or mortgage-backed
 securities securitized for the member through the Platform.(B)Tiered fee optionsIf the Platform Directors determine that certain entities face a barrier to use the Platform, the
 Platform Directors may adopt a tiered usage fee structure to promote
 greater access and a more competitive market for the Platform that
 may include differential fee structures for usage fee charges incurred by
 housing finance agencies, small mortgage lenders, Community Development
 Financial
 Institutions, mission-based nonprofit lenders, community land trusts,
 permanently affordable homeownership programs, or other organizations
 selected by the Corporation.(C)Tiered fee option for covered and noncovered securitiesThe Platform Directors may adopt a tiered usage fee structure under this subsection that may
 include differential fee structures for usage fee charges for the issuance
 of noncovered securities that differ from the usage fees charged for the
 issuance of covered securities.(4)PaymentUsage fees charged under this subsection shall be paid by the member at the time the mortgage loans
 or mortgage-backed securities are delivered by the member to the Platform.(d)Corporation review of initial fees and usage fees(1)In generalThe Platform Directors shall submit any fee structure proposal for initial fees or usage fees under
 subsection (b) or (c) to the Corporation. The Corporation shall approve
 any initial fee or usage fee structure proposed by the Platform Directors
 unless the Corporation determines that the fee structure is not consistent
 with—(A)facilitating, a deep, liquid, and resilient secondary mortgage market for mortgage-backed
 securities; and(B)the purposes and obligations of the Platform under section 325.(2)Automatic establishment of fees absent Corporation disapprovalIf the Corporation does not issue an order of disapproval of an initial fee or usage fee structure
 proposed by the Platform Directors within 60 days following the submission
 of the proposed initial fee or usage fee structure to the Corporation,
 the proposed initial fee or usage fee structure shall automatically go
 into effect for the Platform and its members.(3)Impact of Corporation disapprovalIf the Corporation disapproves an initial fee or usage fee structure proposed by the Platform
 Directors pursuant to this subsection, the Platform Directors may—(A)submit to the Corporation a revised fee or usage fee structure for approval; or(B)if applicable, use the existing approved fee or usage fee structure.325.Purposes and obligations of the Platform(a)PurposeThe purposes of the Platform established under section 321 are to—(1)purchase and receive from its members eligible mortgage loans or securities collateralized by
 eligible mortgage loans for securitization by issuers as covered
 securities;(2)issue through the Platform to its members standardized covered securities, or other covered
 securities, insured by the
 Corporation pursuant to this Act;(3)purchase and receive from its members noneligible mortgage loans or securities not collateralized
 by
 eligible mortgage loans for securitization as noncovered
 securities, to
 the
 extent desired or requested by its members; and(4)issue to its members standardized noncovered securities, or other noncovered securities, that are
 not
 insured by the Corporation pursuant to this Act, to the extent desired or
 requested by its members.(b)Powers and functionsThe powers and functions of the Platform are to—(1)develop the ability to issue, and to issue, standardized covered securities, insured by the
 Corporation
 pursuant to this
 Act, in accordance with subsection (e);(2)develop, adopt, and publish standardized securitization documents and agreements (including, but
 not limited to, uniform pooling, trust, and custodial agreements)—(A)required for
 all covered securities issued by or through the Platform in accordance
 with
 section
 326(a) (and which shall be made optional for all noncovered securities
 issued through
 the Platform); and(B)which—(i)shall be drafted in consultation with the Corporation, the Bureau of Consumer Financial Protection,
 the
 Department of Housing and Urban Development, and such other Federal
 regulatory agencies as the Platform Directors determine appropriate;(ii)may rely upon existing documentation and forms required by the enterprises or other Federal
 regulatory agencies, to the extent determined by the Platform Directors to
 be practical or appropriate; and(iii)before being issued through the Platform, shall be approved by the Corporation as being consistent
 with—(I)the requirements under section 326(a); and(II)facilitating a deep, liquid, and resilient secondary mortgage market for mortgage-backed
 securities;(3)develop standardized documents approved by the Corporation for servicing and loss
 mitigation standards pursuant to section 314 for eligible mortgage loans
 that
 collateralize the covered securities
 issued through the Platform to its members, which shall be based on
 standards
 set by the Corporation and which may rely upon existing documentation and
 forms required by the enterprises or other
 Federal or State regulatory agencies, to the extent determined by the
 Platform
 Directors to be practical or appropriate;(4)as expressly provided in section 326(b)(2)(F), develop, adopt, and publish the required contractual
 terms for contracts for noncovered securities
 issued through the Platform, which shall
 be—(A)developed in consultation with the Corporation, the Bureau of Consumer Financial Protection, the
 Department of Housing and Urban Development, and such other Federal
 regulatory agencies as the Platform Directors determine appropriate; and(B)before being issued through the Platform, approved by the Corporation as being consistent
 with—(i)the requirements under section 326(b); and(ii)facilitating a deep, liquid, and resilient secondary mortgage market for mortgage-backed
 securities;(5)develop, adopt, and publish optional standardized securitization documents and agreements
 (including, but not limited to, uniform pooling, trust, and custodial
 agreements) tailored for noncovered securities issued through the
 Platform, and
 which may be used as desired or requested by the members of the Platform,
 in accordance with section 326(c), and which standardized securitization
 documents and agreements—(A)shall be drafted in consultation with the Corporation, the Bureau of Consumer Financial Protection,
 the
 Department of Housing and Urban Development, and such other Federal
 regulatory agencies as the Platform Directors determine appropriate;(B)may rely upon existing documentation and forms required by the enterprises or other Federal
 or State regulatory agencies, to the extent determined by the Platform
 Directors to
 be practical or appropriate; and(C)before being issued through the Platform, shall be approved by the Corporation as being consistent
 with—(i)the requirements under section 326(c); and(ii)facilitating a deep, liquid, and resilient secondary mortgage market for mortgage-backed
 securities;(6)the extent not otherwise provided in paragraphs (2), (3), and (5), to endeavor to use or rely upon
 existing documentation and
 forms required by the enterprises or other Federal or State regulatory
 agencies, to
 the extent determined by the Platform Directors to be practical or
 appropriate;(7)establish a strong business continuity plan that meets industry best practices and establish
 sufficient redundancies so that in the event of an operational failure of
 the Platform
 there is sufficient back-up capacity to process payments and issue covered
 and noncovered securities;(8)verify that the eligible mortgage loans and securities collateralized by eligible mortgage loans
 purchased and received by the Platform, including from any small lender
 mutual
 established or approved under section 315, for
 securitization
 as
 covered
 securities, meet the requirements for covered securities under this Act
 and any regulations adopted
 by the Corporation pursuant thereto;(9)verify that the noneligible mortgage loans and securities not collateralized by eligible mortgage
 loans purchased and received by the Platform, including from any small
 lender
 mutual established or approved under section 315, for securitization as
 noncovered securities, meet the requirements for noncovered securities
 under this Act and any
 regulations adopted by the Corporation pursuant thereto;(10)for the purpose of securitization, purchase or receive from members of the Platform—(A)eligible mortgage loans, pools of eligible mortgage loans, securities collateralized by
 eligible mortgage loans, or outstanding mortgage-backed securities issued
 by the enterprises for securitization as covered securities; and(B)noneligible mortgage loans, pools of noneligible mortgage loans, or securities collateralized
 by noneligible mortgage loans for securitization as noncovered securities,
 to
 the extent desired or requested by members of the Platform;(11)for the purpose of securitization, facilitate the issuance of—(A)all covered securities of members of the Platform that are collateralized by eligible mortgage
 loans, or outstanding mortgage-backed securities issued by the
 enterprises;(B)all covered securities of members of the Platform that are pooled from—(i)a single mortgage originator, mortgage aggregator, approved entity, or regulated entity; or(ii)multiple mortgage originators, mortgage aggregators, approved entities, or regulated entities;(C)noncovered securities collateralized by noneligible mortgage loans received from members of the
 Platform; and(D)noncovered securities collateralized by noneligible mortgage loans received from members of the
 Platform that are pooled from—(i)a single mortgage originator, mortgage aggregator, or regulated entity; or(ii)multiple mortgage originators, mortgage aggregators, or regulated entities;(12)perform bond administration, data validation, and reporting for all covered and noncovered
 securities
 issued through the Platform, including those issued on behalf of any
 small
 lender mutual
 established or approved under section 315;(13)facilitate systems to lower barriers to entry for new mortgage originators and approved entities or
 access to membership in the Platform;(14)provide essential functions necessary to issue standardized securities which may be compatible with
 the To-Be-Announced market,
 for covered securities and, if appropriate, noncovered securities;(15)manage operational and systems related risks associated with delivering covered and noncovered
 securities and receiving eligible and noneligible
 mortgage loans;(16)develop the capability to offer securitization services to private label issuers;(17)require the servicing documentation used for mortgage loans that collateralize securities issued
 through the Platform to provide a standard method (which may include the
 use of a single electronic verification system) for a mortgagor who has
 been denied a loan modification to verify such denial at no cost to the
 mortgagor;(18)facilitate the issuance of securitizations for multifamily loans, establish common documentation,
 or develop other
 requirements necessary to permit the Platform, or a subsidiary or
 affiliate thereof, to be used for multifamily loan securitizations if the
 Platform Directors issue a determination that it would be desirable and
 practical for the Platform, or a subsidiary or affiliate thereof, to be
 used to issue or otherwise facilitate multifamily loan securitizations;
 and(19)establish, not later than the system certification date, a Collateral Valuation Advisory
 Committee—(A)which shall be comprised of 9 members appointed by the Platform Directors, including
 representatives of appraisers, appraisal management companies, mortgage
 originators (including small
 mortgage lenders), investors, real estate professionals, homebuilding
 professionals, consumer advocates, as well as Federal and State appraisal
 regulatory organizations;(B)the purpose of which shall be to—(i)provide recommendations to the Platform and the Corporation regarding secondary mortgage market
 residential appraisal guidelines, standards, and reporting formats
 consistent with the Real Estate Settlement Procedures Act (12 U.S.C.
 2603), the Truth in Lending Act (15 U.S.C. 1631 et seq.), and all other
 applicable Federal and State laws; and(ii)make recommendations regarding the continuation of a repository for valuation reports, taking into
 account existing operational structures and contractual arrangements; and(C)which, in fulfilling its purpose under this paragraph, shall, as appropriate, consult and
 coordinate with the Appraisal Subcommittee of the Federal Financial
 Institutions Examinations Council established under title XI of the
 Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12
 U.S.C. 3331 et seq.).(c)Prohibited activitiesThe Platform may not—(1)guarantee any mortgage loans or mortgage-backed securities;(2)assume or hold mortgage loan credit risk;(3)purchase any mortgage loans for cash on a single loan basis for the purpose of securitization;(4)undertake the issuance of any covered securities through the Platform unless the first loss
 position is
 already held by a private entity;(5)own or hold any mortgage loans or mortgage-backed securities for investment purposes;(6)make or be a party to any representation and warranty agreement on any mortgage loans; or(7)take lender representation and warranty risk.(d)Interoperability with multifamily loan securitization issuanceThe Platform shall be developed in a manner that may permit, and would not preclude, the Platform,
 or any subsidiary or affiliate thereof, to be used for the issuance of
 multifamily loan securitizations, provided that the development of this
 vehicle for multifamily loan securitizations does not delay the ability of
 the Platform to perform its obligations under this section with respect to
 single-family securities by the system certification date.(e)Timing of Platform capacity to develop and to issue standardized securities for the single-family
 covered securitiesNot later than 2 years following the election of the Platform Directors under section
 322(a)(3), or as otherwise permitted under
 section 601, the Platform
 shall develop the Platform’s ability to issue, and issue, standardized
 securities
 for single-family covered securities.(f)Discretion for Platform Directors to issue standardized securities for single-family noncovered
 securitiesThe Platform Directors may develop an ability for the Platform to issue standardized securities for
 single-family noncovered securities, if the Platform Directors determine
 that sufficient demand exists among the Platform members for the Platform
 to issue such a product.326.Uniform
 securitization agreements for covered securities and required contractual
 terms for noncovered securities(a)Required
 uniform securitization agreements for covered securities issued through
 the Platform(1)In generalThe Platform Directors shall develop standard uniform securitization agreements for all covered
 securities to be issued through the Platform, as required pursuant
 to
 section 325(b)(2).(2)Required termsThe standard uniform securitization agreements required
 to be developed under paragraph (1) shall include terms relating to—(A)pooling and servicing, including the development of uniform standards and practices consistent with
 the standards specified by the Corporation pursuant to section 314;(B)loss mitigation procedures consistent with those specified by the Corporation pursuant to section
 314;(C)minimum representations and warranties;(D)indemnification and remedies, including for the restitution or indemnification of the Corporation
 with respect to early term delinquencies of eligible mortgage loans that
 collateralize a covered security;(E)the requirements of the indenture for mortgage-backed securities that are exempt from the Trust
 Indenture Act of 1939 (15 U.S.C. 77aaa et seq.) and the requirements,
 responsibilities, and duties of trustees, as set forth in the indenture or
 pooling and servicing agreement;(F)the qualification, responsibilities, and duties of trustees; and(G)any other terms or standards the Platform Directors, with approval of the Corporation, determine to
 be necessary
 or appropriate.(3)Defining representation and warranty violationsIn developing the uniform securitization agreements required under paragraph (1), the Platform
 Directors shall also develop, adopt, and publish, upon approval by the
 Corporation, clear and uniform standards that define and illustrate what
 actions, or omissions to act, comprise a violation of the representations
 and warranties clauses that are made a part of such agreements.(b)Required contractual terms for contracts for all noncovered securities issued through the
 Platform(1)In generalAll contracts for noncovered securities issued through the Platform shall include a set of
 required
 contractual terms relating to the obligations of the parties to each
 contract.(2)Required contractual termsThe required contractual terms for agreements for all noncovered securities issued through
 the
 Platform
 shall provide the obligations of the parties to a contract including the
 following considerations:(A)Pooling and servicing.(B)Loss mitigation procedures.(C)Representations and warranties.(D)Indemnification and remedies.(E)The qualification, responsibilities, and duties of trustees, including, but not limited to,
 requirements set forth in the indenture or pooling and servicing
 agreement, or any applicable provisions of the Trust Indenture Act of 1939
 (15 U.S.C. 77aaa et seq.).(F)Other terms or standards the Platform Directors, with approval of the Corporation, determine to be
 necessary or
 appropriate to protect or facilitate the operation of the Platform.(3)Permissible adjustmentsParties to contracts for noncovered securities described under this subsection may supplement the
 required contractual terms identified under paragraph (2) with any
 additional
 contractual terms so desired by the parties to contracts for noncovered
 securities issued through the Platform.(c)Optional uniform securitization agreements for noncovered securities issued through the
 PlatformThe Platform Directors may develop optional uniform securitization agreements for use by noncovered
 securities that are issued through the Platform that include
 standards and
 obligations that are different from those included in the uniform
 securitization agreements for covered securities as set forth in
 subsection (a), provided that—(1)the agreements include the required contractual terms required for noncovered securities that are
 issued through the Platform set forth in subsection (b); and(2)the Platform Directors determine that sufficient demand exists among the members of the Platform
 for the
 Platform to issue such optional uniform securitization agreements for use
 by noncovered securities.(d)Agreements for noncovered securities issued off the PlatformNothing in this section shall preclude, or require, noncovered securities that are not issued
 through the Platform from adopting the—(1)uniform securitization agreements for covered securities issued through the Platform
 developed
 under subsection (a);(2)optional uniform securitization agreements for noncovered securities issued through the
 Platform
 developed under subsection (c); or(3)required contractual terms for contracts for noncovered securities issued through the
 Platform
 developed under subsection (b).(e)Consultation requiredThe Platform Directors shall consult with market participants, including servicers, originators,
 issuers, and mortgage investors, and community stakeholders and
 representatives of homeowners in developing—(1)the uniform securitization agreements pursuant to subsection (a);(2)the required contractual terms for contracts for noncovered securities issued through the
 Platform
 pursuant to subsection (b); and(3)the optional uniform securitization agreements for noncovered securities issued through the
 Platform pursuant to subsection (c).327.Approval and standards for collateral risk managers(a)Standards for approval of collateral risk managersThe Corporation shall develop, adopt, and publish standards for the use of
 collateral risk managers who may work with the Platform, as well as
 trustees
 and
 servicers of mortgage-backed securities to manage mortgage loan
 collateral, including standards with respect to—(1)tracking mortgage loan repurchases;(2)compliance with obligations under any applicable securitization documents; and(3)managing—(A)any disputes; and(B)the resolution process.(b)Additional required standardsThe standards required under subsection (a) shall include the review of foreclosure loss mitigation
 programs established under section 314 for approved servicers.IITransparency in market operations331.Review of loan
 documents; disclosures(a)In
 generalThe Corporation, in consultation and coordination with the Securities and Exchange Commission,
 shall, by rule—(1)require market participants, as appropriate, to make available to private market investors in
 connection with the first loss position on a covered security, including
 through use of the Securitization Platform established under section 321,
 all—(A)documents relating to eligible mortgage
 loans collateralizing that covered security; and(B)servicing reports of the approved servicer
 relating to such eligible mortgage loans;(2)require market participants, as appropriate, to disclose to investors information that is
 substantially similar, to the extent practicable, to disclosures required
 of issuers of asset-backed securities under section 13(a) or 15(d) of the
 Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) until the
 covered security is fully paid, other than information that the
 Corporation determines, in consultation and coordination with the
 Securities and Exchange Commission, is not applicable to a covered
 security, a particular type of covered security, or eligible mortgage
 loans collateralizing a covered security;(3)require that all disclosures must be made consistent with the antifraud provisions of the Federal
 securities laws; and(4)establish the
 timing, frequency, and manner in which such access and disclosures are
 made.(b)Access and disclosuresIn prescribing the rules required under subsection (a), the Corporation shall take into
 consideration—(1)the potential cost of such access and disclosures;(2)the effect of such access and disclosures on liquidity in the housing finance market; and(3)the interests of investors.(c)Privacy
 protectionsIn prescribing the rules required under subsection (a), the Corporation shall take into
 consideration issues of consumer privacy and
 all statutes, rules, and regulations related to privacy of consumer credit
 information and personally identifiable information. Such rules shall
 expressly
 prohibit the identification of specific borrowers.332.National
 mortgage database(a)TransferEffective on the system certification date, there are transferred to the Corporation all functions
 of
 the Federal Housing Finance Agency of the Corporation relating to the
 rights,
 responsibilities, and obligations of the Federal Housing Finance Agency
 pursuant to the Inter-Agency Agreement (or any successor thereto) entered
 into by the Federal Housing Finance Agency and the Bureau of Consumer
 Financial Protection with respect to the development, construction,
 maintenance, operation, and funding of the National Mortgage Database.(b)PrivacyIn exercising authority under this section, the Corporation and the Bureau of Consumer Financial
 Protection shall—(1)take steps to ensure the privacy of consumers, including prohibiting the
 identification of specific borrowers;(2)minimize the collection and storage of personally identifiable information; and(3)consider all statutes, rules, and regulations relating to the privacy of consumer credit
 information and personally identifiable information.(c)DuplicationThe Chairperson and the Director of the Bureau of Consumer Financial Protection shall take all
 reasonable steps necessary to minimize conflicts and duplication of the
 data required under this section with data collected, published, or
 otherwise obtained by other Federal regulators, including the data
 disclosure system required under section 304(f) of the Home Mortgage
 Disclosure Act of
 1975 (12 U.S.C. 2803(f)).(d)Minimize burden on reporting entitiesIf 2 or more entities are required by this section to report the same mortgage data relating to the
 same mortgage loan, the entities may, by agreement that is clearly
 communicated to the Corporation and the Bureau, determine that only 1 of
 such entities will report the data. If 1 of such entities reports the
 required mortgage data, it shall not be a violation of this section for
 the other entities not to report the data.(e)Access to dataThe Corporation and the Bureau of Consumer Financial Protection shall each establish, and cause to
 be published in the Federal Register, the initial date on which—(1)the public shall begin to have access to any data put into the public domain, in accordance with
 this section and in a manner that is easily accessible to the public; and(2)all mortgage data is required to be put into the public domain, in accordance with this section.333.Working group on electronic
 registration of mortgage loans(a)EstablishmentNot later than 180 days after the agency transfer date, the Corporation shall establish a working
 group to study—(1)whether the establishment of a national electronic mortgage registry system is necessary; and(2)how to establish, operate, and maintain a national electronic
 mortgage registry system for single-family mortgage loans and multifamily
 mortgage
 loans.(b)CompositionThe working group established under subsection (a) shall be composed of the following:(1)The Chairperson or the Chairperson's designee.(2)The Director of the Bureau of Consumer Financial Protection or the Director's designee.(3)The Chairman of the Federal Deposit Insurance Corporation or the Chairman’s designee.(4)The Chairman of the Securities and Exchange Commission or the Chairman’s designee.(5)The Chairman of the Federal Reserve Board or the Chairman’s designee.(6)The Comptroller of the Currency or the Comptroller’s designee.(7)A representative from the Federal Home Loan Bank System.(8)A representative from a Federal Reserve Bank.(9)Individuals selected by the Chairperson from among the following:(A)State and local government agencies and representatives, including housing finance agencies and
 those with expertise in property records, electronic recording, and the
 Uniform Commercial Code.(B)The National Conference of Commissioners on Uniform State Laws(C)Industry groups, including single-family and multifamily mortgage originators, title insurers,
 servicers, issuers, and investors.(D)Consumer groups, including representatives of homeowners, community stakeholders, and housing
 organizations.(E)Individuals with technical expertise, including those with expertise in designing, constructing and
 maintaining mortgage databases.(c)DutiesThe duties of the working group established under subsection (a) are to assess and develop
 recommendations on the necessity for and feasibility of establishing,
 operating,
 and maintaining a national electronic mortgage registry system for
 single-family
 mortgage
 loans and multifamily mortgage loans to document custody and
 registration of mortgage loans, notes, titles, liens, deeds of trust, and
 other security
 instruments, in order to automate, centralize, standardize, and improve
 the
 tracking of changes in—(1)the ownership of mortgage loans, deeds of trust, and other security instruments;(2)the ownership of the beneficial interest in promissory notes secured by any mortgage loan, deed of
 trust, or other security instrument;(3)the servicing rights for any mortgage loan, deed of trust, or other security instrument; and(4)such other information as the Corporation may require.(d)ConsiderationsIn carrying out the duties under this section, the working group established under subsection (a)
 shall consider—(1)the cost to States and localities, including any impact on revenue generated by local recording
 of mortgage loan documents;(2)the feasibility of allowing States and localities to continue to collect fees and revenue;(3)the implications of data accuracy on judicial or non-judicial foreclosure;(4)the need to minimize conflicting mortgage loan registry requirements;(5)the need to provide consumers with access to key information about the ownership and servicing of
 their mortgage loans;(6)the need to provide data accuracy, security, and privacy;(7)existing State real property and commercial laws and any such laws in development, including an
 electronic mortgage registry law developed as a uniform State law
 proposal;(8)the costs and benefits of developing and maintaining a national mortgage registry system, including
 any potential impact on consumer mortgage credit and industry
 participants;(9)the feasibility of using existing industry standards and capabilities in the operation of a
 national mortgage registry system; and(10)any research, reports, or other work undertaken by outside experts, including Federal and State
 entities.(e)ReportNot later than 2 years after the date on which the working group is established under subsection
 (a), the working group shall issue a publicly available report, which
 shall—(1)include recommendations—(A)as to whether the establishment of a national electronic mortgage registry system is necessary or
 appropriate in the public interest or for the protection of the Mortgage
 Insurance
 Fund; and(B)on how to establish, operate, and maintain a national electronic mortgage registry system for
 single-family mortgage loans and multifamily mortgage loans; and(2)if the working group recommends that the establishment of the national electronic mortgage registry
 system is necessary or appropriate under paragraph (1), outline the
 minimum
 requirements for such registry, which shall—(A)include considerations for the
 development and implementation of electronic mortgage registry systems
 by
 State and local government agencies, including requirements to ensure
 accurate reporting to such systems; and(B)satisfy the recommendations
 of this report.(f)Rulemaking(1)In generalBeginning 5 years after publication of the report under
 subsection (e), the Corporation may, by rule, establish a national
 electronic mortgage registry system for single-family mortgage loans and
 multifamily mortgage
 loans, deeds of trust, or other security instruments in accordance with
 the findings of the report if—(A)the Corporation determines that electronic mortgage registry systems have not been created by State
 and
 local government agencies in accordance with the
 minimum requirements established in the report; and(B)the establishment of a national electronic mortgage registry system for single-family mortgage
 loans and multifamily mortgage loans remains necessary or appropriate in
 the public
 interest or for the protection of the Mortgage Insurance Fund.(2)Conflicting reportsIf the Corporation establishes a national electronic mortgage registry system under paragraph (1),
 the Corporation
 shall provide approved entities a reasonable amount of time to correct a
 filing made in the national electronic mortgage registry system
 established under paragraph
 (1) that is in direct conflict with any filing in a State or local real
 property recording system.(3)Authority to extend establishment of registriesThe Corporation, in consultation with appropriate State and local government agencies responsible
 for real property recordation, may extend the period of time provided
 under paragraph (1) for a single period of not more than 5 years if the
 Corporation determines that the extension is necessary or appropriate.(4)Consultation and coordination with State and local agenciesTo promote consistency in and minimize disruption to the housing finance system and systems for
 the local recording of mortgage loan documents, the Corporation shall
 consult and
 coordinate with appropriate State and local
 government agencies responsible for real property recordation when
 developing and issuing rules under this subsection.(5)Requirements on rulesThe rules and standards promulgated under this section shall recognize and protect valid perfected
 security interests in registered mortgage-related documents.(g)Rules of construction(1)Limitation on liabilityNothing in this section shall be construed as implying or establishing a private right of action
 against an approved entity for filings made to a national electronic
 mortgage registry
 system established under subsection (f)(1) or other filing actions taken
 pursuant
 to subsection (f).(2)Limitation on supervisory or enforcement authorityNothing in this section shall be construed as authorizing the Corporation, before the establishment
 of a national electronic mortgage registry system under subsection (f)(1),
 to exercise
 supervisory or enforcement authority with respect to an approved entity
 relating to a real property filing action in a State or local real
 property recording system by the approved entity.(3)PreemptionNothing in this section shall be construed as preempting, altering, annulling, exempting, or
 affecting the applicability
 of any State or local law, including those laws relating to real property
 recording or foreclosure.334.Multiple lender issuesWith respect to
 the dwelling of a borrower that serves as security for an eligible
 mortgage loan, if
 the borrower enters into any credit transaction that would result in the
 creation of a new mortgage loan or other credit lien on such dwelling
 where the
 loan-to-value ratio of such credit transaction amount is 80 percent or
 more,
 the creditor (as defined in section 1026.2(a)(17) of title 12 of the Code
 of Federal Regulations) shall notify
 the creditor of the senior eligible mortgage loan within 30 days after
 consummation of such transaction.335.Required harmonization of standards within eligible mortgage criteria(a)In generalThe Corporation shall consult and coordinate with the Bureau of Consumer Financial Protection to
 ensure that the minimum standards issued by the Corporation with respect
 to eligible single-family mortgage loans pursuant
 to section 2(29) remain, to the greatest extent possible, substantially
 similar to rules promulgated by the Bureau pursuant to section 129C(b) of
 the Truth in Lending Act (15 U.S.C. 1639c(b)) provided that any
 revisions to, or amendments of, such minimum standards issued by the
 Corporation—(1)conform to all of the other requirements set forth under section 2(29); and(2)in the determination of the Corporation, do not negatively impact the Mortgage Insurance Fund.(b)Annual report on any changes or differences in rulesThe Corporation shall, on an annual basis, submit to the Chair and Ranking Member of the Committee
 on Banking, Housing, and Urban Affairs of the Senate and the Chair and
 Ranking Member of the Committee on Financial Services of the House of
 Representatives a report that—(1)describes any changes to the minimum standards identified in subsection (a);(2)describes the economic analysis developed and used by the Corporation for any changes described
 under paragraph (1) in order to ensure such changes do not violate the
 duties of the Corporation to protect the Mortgage Insurance Fund; and(3)identifies any changes that occurred and differences that exist between the minimum standards
 developed, adopted, and maintained by the Corporation and the rules
 promulgated by the
 Bureau pursuant to section 129C(b) of the Truth in Lending Act (15 U.S.C.
 1639c(b)).IVFHFA and FMIC Transition401.DefinitionsIn this title—(1)the term Director means—(A)during the period beginning on the date of enactment of this Act and ending on the day before the
 agency transfer date, the Director of the Existing Agency; and(B)on and after the agency transfer date, the Director of the Federal Housing Finance Agency of the
 Corporation appointed under section 402(a)(2);(2)the term Existing Agency means the Federal Housing Finance Agency, as constituted on the day before the agency transfer
 date;(3)the term function means any duty, obligation, power, authority, responsibility, right, privilege, activity, or
 program;(4)the term regulated entity has the same meaning as in section 1303(20) of the Safety and
 Soundness Act (12 U.S.C. 4502(20)); and(5)the term Transition Committee means the Federal Mortgage Insurance
 Corporation Transition Committee established under section 404(a)(1).402.FHFA transition(a)Establishment(1)In generalEffective on the agency transfer date, there is established in the Corporation the Federal Housing
 Finance Agency, which shall be maintained as a distinct entity within the
 Corporation.(2)DirectorThe Federal Housing Finance Agency shall be headed by a Director, who shall be—(A)appointed by the President, by and with the advice and consent of the Senate; and(B)a non-voting member of the Board of Directors.(b)Federal Housing Finance Agency Transfer(1)Transfer of property and functionsEffective on the agency transfer date and unless otherwise
 specified by this Act, all property and
 functions of the Federal Housing Finance Agency are
 transferred to the Federal Housing Finance Agency of the Corporation.(2)Incumbent DirectorThe individual serving as the Director of the Existing Agency on the day before the agency transfer
 date may serve as the Director of the Federal Housing Finance Agency of
 the Corporation until the end of the term of such individual as Director
 of the Existing Agency under section 1312(b)(2) of the Safety and
 Soundness Act (12 U.S.C.
 4512(b)(2)), as in effect on the day before the agency transfer date.(3)Transition chairperson(A)In generalDuring the period beginning on the agency transfer date and ending on the date on which the first
 individual is appointed as Chairperson under
 section 202, the Director shall serve as the Transition
 Chairperson of the
 Corporation and, except as provided in subparagraph (B), shall exercise
 all authorities of the Chairperson, unless stated otherwise.(B)Limitation on authorityIn serving as the Transition Chairperson of the Corporation pursuant to subparagraph (A), the
 Director shall
 not have the authority to establish any rule under section 2 or any rule
 relating
 to approved entities
 under title III.(c)Powers and duties(1)In generalThe Director of the Federal Housing Finance Agency of the Corporation shall—(A)retain and exercise all powers, including conservatorship and receivership powers, as amended by
 this Act, of the Director
 of the Existing Agency on the day before the
 agency transfer date relating to
 the Federal Home Loan Bank System, the Federal Home Loan Banks, and the
 enterprises;(B)manage and implement actions authorized by the Corporation related to the transition to the new
 housing finance system that impact the conservatorship or receivership of
 regulated entities; and(C)consult with other members of the Transition Committee and the Board of Directors as may be
 appropriate to fulfill the requirements of this Act.(2)Autonomy of FHFAExcept as provided in section 604(a)(2), or as
 otherwise specifically provided
 in this Act, the Chairperson and the
 Board of Directors may not—(A)intervene in any matter or proceeding before the Director, unless otherwise specifically provided
 by law;(B)appoint, direct, or remove any officer or employee of the Federal Housing Finance Agency of the
 Corporation; or(C)merge or consolidate the Federal Housing Finance Agency of the Corporation, or any of the functions
 or responsibilities of the Federal Housing Finance Agency of the
 Corporation, with any division, office, or other component of the
 Corporation.(d)Agency expenditures and budget(1)In generalAfter the agency transfer date, the Director of the Federal Housing Finance Agency of the
 Corporation—(A)except as provided in paragraph (2), may
 obligate and expend amounts available to the Federal Housing
 Finance Agency; and(B)shall submit regular updates to the Board of Directors.(2)Limitation on amount(A)Before Chairperson appointedDuring the period beginning on the agency transfer date and ending on the date on which the first
 individual is appointed as Chairperson under section 202, the Director
 shall require approval from the Transition Committee
 for any agency capital expenditure in excess of
 $5,000,000.(B)Chairperson appointedOn and after the date on which the first individual is appointed as Chairperson under section 202,
 the
 Director shall require approval from the Board of
 Directors for any agency capital expenditure in excess of $5,000,0000.(e)CooperationDuring the period beginning on the date of enactment of this Act and ending on the system
 certification date,
 the Board of Directors and the Director shall cooperate and coordinate in
 the exercise of their respective authorities to facilitate and achieve an
 orderly transition from housing finance markets facilitated by the
 enterprises to housing finance markets facilitated by the Corporation
 with minimum disruption in the availability of mortgage credit.(f)Coordination and continuation of certain actions(1)In generalAll regulations, orders, determinations, and resolutions described in paragraph (2) shall remain in
 effect according to the terms of such regulations, orders, determinations,
 and resolutions, and shall be enforceable by or against the Federal
 Housing Finance Agency of the Corporation
 until modified, terminated, set aside, or superseded in accordance with
 applicable law by the Federal Housing Finance Agency of the Corporation,
 any court of competent jurisdiction, or
 operation of law.(2)ApplicabilityA regulation, order, determination, or resolution is described in this paragraph if it—(A)was issued, made, prescribed, or allowed to become effective by—(i)the Existing Agency;(ii)the Federal Housing Finance Board; or(iii)a court of competent jurisdiction, and relates to functions transferred by this section;(B)relates to the performance of functions that are transferred by this section; and(C)is in effect on the agency transfer date.(g)Use of agency servicesAny agency, department, or other instrumentality of the United States, and any successor to any
 such agency, department, or instrumentality, which was providing
 supporting services to the Existing Agency before the agency transfer date
 in
 connection with functions that are transferred to the Federal Housing
 Finance Agency of the Corporation shall—(1)continue to provide such services, on a reimbursable basis, until the transfer of such functions is
 complete; and(2)consult with any such agency to coordinate and facilitate a prompt and reasonable transition.(h)Savings provisions(1)Existing rights, duties, and obligations not affectedSubsection (a) shall not affect the validity of any right, duty, or obligation of the United
 States, the Director of the Existing Agency, or any other person, which—(A)arises under—(i)the Safety and Soundness Act;(ii)the Federal National Mortgage Association Charter Act;(iii)the Federal Home Loan Mortgage Corporation Act; or(iv)any other provision of law applicable with respect to the Existing Agency; and(B)existed on the day before the agency transfer date.(2)Continuation of suitsNo action or other proceeding commenced by or against the Director of the Existing Agency in
 connection with functions
 that are transferred to the Federal Housing Finance Agency of the
 Corporation shall abate by reason of the
 enactment of this Act, except that the Director of the Federal Housing
 Finance Agency of the Corporation shall be substituted
 for the Director of the Existing Agency as a party to any such action or
 proceeding.(i)Technical and conforming amendments(1)Federal Housing Enterprises Financial Safety and Soundness Act of 1992The Safety and Soundness Act (12 U.S.C. 4501 et seq.)
 is amended—(A)in section 1303—(i)in paragraph (2), by striking Federal Housing Finance Agency established under section 1311 and inserting the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established
 under section 402(a)(1) of the Housing Finance Reform and Taxpayer Protection Act of 2014; and(ii)in paragraph (9), by striking Federal Housing Finance Agency and inserting Agency;(B)in section 1311(a), by striking established and all that follows through Government and inserting established in the Federal Mortgage Insurance Corporation, the Federal Housing
 Finance Agency, which shall be maintained as a distinct entity within the
 Federal Mortgage Insurance Corporation;(C)in section 1312—(i)in subsection (a)—(I)in the heading, by striking Establishment of position and inserting Director; and(II)by striking, established the position of; and(ii)in subsection (b)(1), by striking by the President and all that follows through housing finance and inserting in accordance with section 402(a)(2) of the Housing Finance Reform and Taxpayer Protection Act of 2014; and(D)in section 1367—(i)in subsection (a)(7), by striking When acting and inserting Except as may be provided in section 604(a)(2) of the Housing Finance Reform and Taxpayer Protection Act of 2014, or as otherwise specifically provided for in such Act, when acting; and(ii)by amending subsection (b)(2)(D) to read as follows:(D)Power as
 conservator(i)EnterprisesOn and after the agency transfer date, as that term is defined in section 2 of the
 Housing Finance Reform and Taxpayer Protection Act of 2014, the Agency shall, as conservator, take
 such actions as are necessary—(I)to wind down the operations of the enterprises in an orderly manner that complies with the
 requirements of such Act;(II)to manage the
 affairs, assets, and obligations of the enterprises and to operate
 the
 enterprises in compliance with the requirements of such Act;(III)to undertake and carry out any sale, transfer, or disposition authorized in sections 315(c),
 321(d), 604(i)(2), 701(b), or 702 of such Act in order to facilitate the
 orderly transition to the new housing finance system authorized by such
 Act; and(IV)to maintain liquidity and stability in the secondary mortgage market until such time as the
 enterprises shall have no authority to conduct new business, pursuant to
 title VI of such Act.(ii)Federal Home Loan BanksThe Corporation may, as conservator, take such actions as are—(I)necessary to put a Federal Home Loan Bank in a sound and solvent condition; and(II)appropriate to carry on the business of a Federal Home Loan Bank and preserve and conserve the
 assets and property of the Federal Home Loan Bank..(2)Federal Home Loan Bank ActThe Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended—(A)by striking Chairman of the Director of Governors each place that term appears and inserting Chairman of the Board of Governors; and(B)in section 2—(i)in paragraph (11), by striking Federal Housing Finance Agency and inserting Agency; and(ii)in paragraph (12), by striking the Federal Housing Finance Agency and all that follows through the period at the end and inserting the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established
 under section 402(a)(1) of the Housing Finance Reform and Taxpayer Protection Act of 2014.(3)Federal Deposit Insurance ActThe Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—(A)in section 11(t)(2)(A), by inserting after clause (vii) the following:(viii)The Federal Mortgage Insurance Corporation.; and(B)in section 18(x)—(i)by inserting the Federal Mortgage Insurance Corporation, before any Federal banking agency each place that term appears; and(ii)by inserting Corporation, after such Bureau, each place that term appears.(4)Federal Financial Institutions Examination Council Act of 1978The Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is
 amended—(A)in section 1004(a)—(i)by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and(ii)by inserting after paragraph (4) the following:(5)the Chairman of the Federal Mortgage Insurance Corporation,; (B)in section 1011, in first sentence, by inserting Federal Mortgage Insurance Corporation, after Financial Protection,; and(C)by inserting at the end the following:1012.Establishment of the Subcommittee on Mortgage ServicingThere shall be within the Council a subcommittee to be known as the Subcommittee on Mortgage Servicing, which shall consist of designees of heads of the Federal financial institution regulatory
 agencies, the Bureau of Consumer Financial Protection, the Federal
 Mortgage Insurance Corporation, the Federal Housing Finance Agency, and a
 representative of the State Liaison Committee established under section
 1007..(5)FIRREASection 1216 of the Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (12 U.S.C.
 1833e) is amended—(A)in subsection (a), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(B)in subsection (c), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(6)Housing and Urban-Rural Recovery Act of 1983The first sentence of section 469 of the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
 1701p–1) is amended by inserting the Federal Mortgage Insurance Corporation, after cooperation of .(7)Paperwork Reduction ActSection 3502(5) of title 44, United States Code (commonly known as the Paperwork Reduction Act), is amended by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(8)Public Law 93–495Section 111 of Public Law 93–495 (12 U.S.C. 250) is amended by inserting the Federal Mortgage Insurance Corporation, after Federal Housing Finance Agency,.(9)Right to Financial Privacy Act of 1978Section 1101(7) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401(7)) is amended—(A)in subparagraph (H), by striking ; or and inserting a semicolon;(B)in subparagraph (I), by striking ; and and inserting ; or; and(C)by adding at the end the following:(J)the Federal Mortgage Insurance Corporation; and.(10)Title 5, United States CodeTitle 5, United States Code, is amended—(A)in section 5313, by inserting the following new item:Chairperson of the Federal Mortgage Insurance Corporation.; and(B)in section 3132(a)(1)(D)—(i)by striking Supervision,, and inserting Supervision,; and(ii)by inserting the Federal Mortgage Insurance Corporation, after Federal Housing Finance Agency,.(11)Title 18, United States CodeTitle 18, United States Code, is amended by striking Federal Housing Finance Agency each place such term appears in each of sections 212, 657, 1006, 1014, and 1905 and inserting Federal Mortgage Insurance Corporation.(12)Federal Credit Union ActSection 107(7)(E) of the Federal Credit Union Act (12 U.S.C. 1757(7)(E)) is amended by inserting the Federal Mortgage Insurance Corporation, before the Federal National Mortgage Association.(13)Bank Holding Company ActSection 5(c)(5)(B) of the Bank Holding Company Act (12 U.S.C. 1844(c)(5)(B)) is amended—(A)in clause (iv), by striking ; or and inserting a semicolon;(B)in clause (v), by striking the period at the end and insert ; or; and(C)by adding at the end the following:(vi)an approved guarantor approved under section 311 of the Housing Finance Reform and Taxpayer
 Protection Act of 2014..(14)Congressional Budget Act of 1974Section 504(c) of the Congressional Budget Act of 1974 (2 U.S.C. 661c(c)) is amended—(A)in paragraph (1), by striking or;(B)by redesignating paragraph (2) as paragraph (3); and(C)by inserting after paragraph (1) the following:(2)are credit programs of the Federal Mortgage Insurance Corporation; or.(15)Effective dateThe amendments made by this subsection shall take effect on the agency transfer date.403.Transfer and rights of employees of the FHFA(a)Transfer(1)In generalEffective on the agency transfer date, each employee of the Existing Agency,
 including each employee of the Office of the Inspector General of the
 Existing Agency, who is in good standing, shall be transferred to
 the Corporation for employment, and such
 transfer shall be deemed a transfer of function for purposes of section
 3503 of title 5, United States Code.(2)Assignment(A)In generalExcept as provided in subparagraph (B), an employee transferred under paragraph (1) shall be
 appointed to
 a position in the Federal Housing Finance Agency of the Corporation.(B)ExceptionOn and after the agency transfer date, the
 Chairperson, in consultation with the Director of the Federal Housing
 Finance Agency of the Corporation, may reassign
 an employee transferred under paragraph (1) to a component of the
 Corporation other than the Federal Housing Finance Agency of the
 Corporation, if the reassignment is in the best interest of the
 Corporation.(b)Guaranteed positions(1)In generalEach employee transferred 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.(2)No involuntary separation or reductionAn employee transferred under subsection (a) holding a permanent position on the day immediately
 preceding the transfer may not be involuntarily separated or reduced in
 grade or compensation during the 12-month period beginning on the date of
 transfer, except for cause, or, in the case of a temporary employee,
 separated in accordance with the terms of the appointment of the employee.(c)Appointment authority for excepted and senior executive service employees(1)In generalIn the case of an employee occupying a position in the excepted service or the Senior Executive
 Service, any appointment authority established under law or by regulations
 of the Office of Personnel Management for filling such position shall be
 transferred, subject to paragraph (2).(2)Decline of transferThe Corporation may decline a transfer of authority under paragraph (1), to the extent that such
 authority relates to—(A)a position excepted from the competitive service because of its confidential, policymaking,
 policy-determining, or policy-advocating character; or(B)a noncareer appointee in the Senior Executive Service (within the meaning of section 3132(a)(7) of
 title 5, United States Code).(d)Employee benefit programs(1)In generalAny employee of the Existing Agency accepting employment with the Corporation as a result of a
 transfer
 under subsection (a) may retain, for 12 months after the date on which
 such
 transfer occurs, membership in any employee benefit program of the
 Existing Agency
 or the Corporation, as applicable, including insurance, to which such
 employee belongs on the date of the transfer under subsection (a), if—(A)the employee does not elect to give up the benefit or membership in the program; and(B)the benefit or program is continued by the Corporation.(2)Cost differential(A)In generalThe difference in the costs between the benefits which would have been provided by the Existing
 Agency and
 those provided by this section shall be paid by the Corporation.(B)Health insuranceIf any employee elects to give up membership in a health insurance program or the health insurance
 program is not continued by the Corporation, the employee shall be
 permitted to select an alternate Federal health insurance program not
 later than 30 days after the date of such election or notice, without
 regard to any other regularly scheduled open season.(e)Enterprise employeesTo ensure an orderly transition to the new housing finance system established under this Act and to
 facilitate the organization, formation, and competency of the
 Corporation,
 the Corporation may hire employees from the enterprises.(f)ReorganizationIf the Corporation determines that a reorganization of the workforce is required, the
 reorganization shall be deemed a major reorganization for purposes of
 affording affected employee retirement under section 8336(d)(2) or
 8414(b)(1)(B) of title 5, United States Code.404.Transition Committee(a)Establishment and purpose(1)In generalEffective on the date of enactment of this Act, there is established the Federal Mortgage Insurance
 Corporation Transition Committee.(2)PurposeThe purpose of the Transition Committee shall be to—(A)develop a plan to facilitate an orderly transition to a new housing finance system in accordance
 with this Act; and(B)provide advice to the Transition Chairperson or the Board when consulted.(b)Composition(1)MembersThe Transition Committee shall be comprised of—(A)the Director;(B)the Chairman of the Federal Deposit Insurance Corporation;(C)the Comptroller of the Currency;(D)the Chairperson; and(E)any member of the Board of Directors.(2)Chairperson(A)Before Chairperson of CorporationUntil the date on which the first individual is appointed as Chairperson under section 202, the
 Director
 shall
 serve as the Chairperson of the Transition Committee.(B)Chairperson of Corporation appointedOn and after the date on which the first individual is appointed as Chairperson under section 202,
 the
 Chairperson shall serve as the Chairperson of the Transition Committee.(3)Acting officials may serveIn the event of a vacancy in the office of the head of a member agency, and pending the appointment
 of a successor, or during the absence or disability of the head of a
 member agency, the acting head of the member agency shall serve as a
 member of the Transition Committee in the place of that agency head.(4)StaffAs
 necessary to carry out the duties of the Transition Committee, the
 Chairperson of the Transition Committee may—(A)before the agency transfer date, use employees of the Existing Agency; and(B)on and after the agency transfer date, use employees of the Corporation.(c)Transition plan(1)DevelopmentThe Transition Committee shall develop the transition plan required by section 602.(2)ApprovalThe transition plan may not be submitted to Congress under section 602, unless it is approved by a
 majority of the Transition Committee.(d)DissolutionThe Transition Committee shall be dissolved upon the later of—(1)the date on which the first individual is appointed as Chairperson under section 202; or(2)the date on which the transition plan is submitted to Congress in accordance with subsection (c)(2)
 and section 602.405.Transition assessments(a)In GeneralSection 1316 of the Safety and Soundness Act (12
 U.S.C. 4516) is amended by adding at the end the following:(i)Annual assessments relating to initial funding of the FMICNotwithstanding title VI of the Housing Finance Reform and Taxpayer Protection Act of 2014 or any other provision of law, for the period beginning on the date of enactment of this
 subsection and ending on the system certification date (as that date is
 set forth under title VI of the Housing Finance Reform and Taxpayer Protection Act of 2014), the Agency shall establish and collect from the enterprises annual assessments in addition
 to those required under subsection (a) in an amount not exceeding the
 amount sufficient to provide for the reasonable costs (including
 administrative costs) and expenses of the Federal Mortgage Insurance
 Corporation, including those
 purposes detailed in section 303(e)(6) of the Housing Finance Reform and Taxpayer Protection Act of 2014. All amounts collected under this subsection shall be transferred to the Federal Mortgage
 Insurance Corporation. The annual assessment shall be payable semiannually
 for each fiscal year, on October 1 and April 1..(b)Treatment of Assessments(1)Deposit(A)Amounts received by the CorporationAmounts received by the Corporation from assessments imposed under section 1316(i) of the Safety
 and Soundness Act shall be
 deposited by the Corporation in the Mortgage Insurance Fund.(B)Amounts received by the Existing AgencyAmounts received by the Existing Agency beginning on the date of enactment of this Act until the
 agency transfer date from assessments
 imposed under section 1316(i) of the Safety and Soundness Act shall be
 held in an account of the Existing Agency and shall be transferred to the
 Corporation on the agency transfer date for deposit in the Mortgage
 Insurance Fund in accordance with subparagraph (A).(C)Exemption from apportionmentNotwithstanding any other provision of law, amounts received by the Corporation from any assessment
 imposed under section 1316(i) of the Safety and Soundness Act shall not be
 subject to
 apportionment for the purposes of chapter 15 of title 31, United States
 Code, or under any other authority.(D)Rule of constructionAmounts received by the Corporation from any assessment imposed under section 1316(i) of the Safety
 and Soundness Act shall not be construed to be Government or public funds
 or
 appropriated money.(2)Use of funds(A)In generalThe Existing Agency shall use amounts received from assessments imposed under section 1316(i) of
 the Safety and
 Soundness Act solely for the purpose of funding the Mortgage Insurance
 Fund on the agency transfer date.(B)Treasury investmentsThe Existing Agency may request the Secretary of the Treasury to invest the amounts
 received from
 assessments imposed under section 1316(i) of the Safety and Soundness Act.(C)Government obligationsPursuant to a request under subparagraph (B), the Secretary of the Treasury shall invest such
 amounts in Federal Government obligations—(i)guaranteed as to principal and interest by the United States with maturities suitable to the needs
 of the Existing Agency; and(ii)bearing interest at a rate
 determined by the Secretary of the Treasury, taking into consideration
 current market yields on outstanding marketable obligations of the United
 States of comparable maturity.406.Transfer of powers and duties on the system certification date; continuation and coordination of
 certain actions(a)Transfer of functionsEffective on the system certification date and except as provided in section 332(a), there are
 transferred to the Corporation all functions
 of the Federal Housing Finance Agency of the Corporation and the Director
 thereof.(b)Coordination and continuation of certain actions(1)In generalAll regulations, orders, determinations, and resolutions described in paragraph (2) shall remain in
 effect according to the terms of such regulations, orders, determinations,
 and resolutions, and shall be enforceable by or against the Corporation
 until modified, terminated, set aside, or superseded in accordance with
 applicable law by the Corporation, any court of competent jurisdiction, or
 operation of law.(2)ApplicabilityA regulation, order, determination, or resolution is described in this paragraph if it—(A)was issued, made, prescribed, or allowed to become effective by—(i)the Existing Agency;(ii)the Federal Housing Finance Agency of the Corporation;(iii)the Federal Housing Finance Board; or(iv)a court of competent jurisdiction;(B)relates to the performance of functions that are transferred by subsection (a); and(C)is in effect on the effective date of the transfer under subsection (a).(c)Use of agency servicesAny agency, department, or other instrumentality of the United States, and any successor to any
 such agency, department, or instrumentality, which was providing
 supporting services to the Federal Housing Finance Agency of the
 Corporation before the system certification date in
 connection with functions that are transferred to the Corporation under
 subsection (a) shall—(1)continue to provide such services, on a reimbursable basis, until the transfer of such functions is
 complete; and(2)consult with any such agency to coordinate and facilitate a prompt and reasonable transition.(d)Savings provisions(1)Existing rights, duties, and obligations not affectedSubsection (a) shall not affect the validity of any right, duty, or obligation of the United
 States, the Director of the Federal Housing Finance Agency of the
 Corporation, or any other person, which—(A)arises under—(i)the Safety and Soundness Act;(ii)the Federal National Mortgage Association Charter Act;(iii)the Federal Home Loan Mortgage Corporation Act; or(iv)any other provision of law applicable with respect to the Federal Housing Finance Agency; and(B)existed on the day before the system certification date.(2)Continuation of suitsNo action or other proceeding commenced by or against the Director of the Federal Housing Finance
 Agency of the Corporation in connection with functions
 that are transferred to the Corporation under subsection (a) shall abate
 by reason of the
 enactment of this Act, except that the Corporation shall be substituted
 for the Director of the Federal Housing Finance Agency of the Corporation
 as a party to any such action or proceeding.407.Technical and conforming amendments relating to abolishment of FHFA(a)Effective dateThe amendments made by this section shall take effect on the system certification date.(b)Access to Local TV Act of 2000Section 1004(d)(2)(D)(iii) of the Launching Our Communities’ Access to Local Television Act of 2000
 (47 U.S.C. 1103(d)(2)(D)(iii)) is amended by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(c)Commodity Exchange ActSection 1a(39)(E) of the Commodity Exchange Act (7 U.S.C. 1a(39)(E)) is amended by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(d)Emergency Economic Stabilization Act of 2008The Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5201 note) is amended—(1)in section 104(b)(3), by striking the Director of the Federal Housing Finance Agency and inserting the Chairperson of the Federal Mortgage Insurance Corporation;(2)in section 109(b), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(3)in section 110(a)(1)(A), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(e)Federal National Mortgage Association Charter ActThe Federal National Mortgage Association Charter Act (12 U.S.C. 1716 et seq.) is amended—(1)in section 303(c)(2), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(2)in section 309—(A)in subsection (d)(3)(B)—(i)by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(ii)by striking Director each place that term appears and inserting Chairperson;(B)in subsection (k)(1), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation;(C)in subsection (m)—(i)in paragraph (1), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(ii)in paragraph (2)—(I)by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(II)by striking Director each place that term appears and inserting Chairperson; and(D)in subsection (n)—(i)in paragraph (1), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation;(ii)in paragraph (2)(L), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(iii)in paragraph (3)(B), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation.(f)Federal Deposit Insurance ActThe Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended—(1)in section 7(a)(2)(A), by striking Federal Housing Finance Agency each place that term appears and inserting Federal Mortgage Insurance Corporation;(2)in section 8(e)(7)(A)(vi), by striking Federal Housing Finance Agency each place that term appears and inserting Federal Mortgage Insurance Corporation; and(3)in section 33(e), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(g)Federal Financial Institutions Examination Council Act of 1978The first sentence of section 1011 of the Federal Financial Institutions Examination Council Act of
 1978 (12 U.S.C. 3310) is amended by striking and the Federal Housing Finance Agency.(h)Federal Home Loan Bank ActThe Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended—(1)in section 2—(A)in paragraph (11), as previously amended by section 402(i), by striking Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(B)in paragraph (12), as previously amended by section 402(i), by striking the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established
 under section 402(a)(1) of the Housing Finance Reform and Taxpayer Protection Act of 2014 and inserting Federal Mortgage Insurance Corporation established under section 201 of the Housing Finance Reform and Taxpayer Protection Act of 2014;(2)in section 10(a)(3)(B), by inserting , subject to such regulations that the Federal Mortgage Insurance Corporation may issue to ensure
 the safety and soundness of the Federal Home Loan Banks, covered
 securities insured by the Federal Mortgage Insurance Corporation under the
 Housing Finance Reform and Taxpayer Protection Act of 2014 after Government National Mortgage Association; and(3)in section 11(h), by inserting , subject to such regulations that the Federal Mortgage Insurance Corporation may issue to ensure
 the safety and soundness of the Federal Home Loan Banks, covered
 securities insured by the Federal Mortgage Insurance Corporation under the
 Housing Finance Reform and Taxpayer Protection Act of 2014 after Federal Home Loan Mortgage Corporation pursuant to section 305 or section 306 of the Federal Home
 Loan Mortgage Corporation Act.(i)Federal Home Loan Mortgage Corporation ActThe Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.) is amended—(1)in section 303—(A)in subsection (b)(2), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(B)in subsection (h)—(i)in paragraph (2)—(I)by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(II)by striking Director each place that term appears and inserting Chairperson; and(ii)in paragraph (4), by striking Director and inserting Chairperson;(2)in section 305(a)(2), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(3)in section 307—(A)in subsection (c)(1), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation;(B)in subsection (e)—(i)in paragraph (1)—(I)by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(II)by striking Director each place that term appears and inserting Chairperson; and(ii)in paragraph (2)—(I)by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(II)by striking Director each place that term appears and inserting Chairperson; and(C)in subsection (f)—(i)in paragraph (1), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation;(ii)in paragraph (2), by striking Director of the Federal Housing Finance Agency each place that term appears and inserting Chairperson of the Federal Mortgage Insurance Corporation; and(iii)in paragraph (3)(B), by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation.(j)Federal Housing Enterprises Financial Safety and Soundness Act of 1992The Safety and Soundness Act (12 U.S.C. 4501 et seq.)
 is amended—(1)in section 1303—(A)in paragraph (2), as previously amended by section 402(i), by striking the Federal Housing Finance Agency within the Federal Mortgage Insurance Corporation established
 under section 402(a)(1) of the Housing Finance Reform and Taxpayer Protection Act of 2014 and inserting Federal Mortgage Insurance Corporation established under section 201 of the Housing Finance Reform and Taxpayer Protection Act of 2014;(B)by striking paragraph (4) and inserting the following:(4)[Reserved.]; and(C)in paragraph (9), as previously amended by section 402(i), by striking Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation;(2)by repealing section 1313A;(3)in section 1317—(A)by striking subsection (d); and(B)by redesignating subsections (e) through (i) as subsections (d) through (h), respectively; and(4)in section 1367—(A)in subsection (a), in the heading, by striking Agency and inserting Corporation; and(B)in subsection (b), in the heading to paragraph (9)(B), as so redesignated, by striking Agency and inserting Corporation.(k)Financial Institutions Reform, Recovery, and Enhancement Act of 1989The Financial Institutions Reform, Recovery, and Enhancement Act of 1989 (Public Law 101–73; 103
 Stat. 183) is amended—(1)in section 402(e), by striking Federal Housing Finance Agency each place that term appears and inserting Federal Mortgage Insurance Corporation;(2)in section 1124, by striking Federal Housing Finance Agency each place that term appears and inserting Federal Mortgage Insurance Corporation; and(3)in section 1125(b), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(l)Flood Disaster Protection Act of 1973Section 102(f)(3)(A) of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a(f)(3)(A)) is
 amended by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation.(m)Housing Economic Recovery Act of 2008Section 1002(b) of the Housing and Economic Recovery Act of 2008 (Public Law 110–289; 122 Stat.
 2661) is amended—(1)in paragraph (1), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(2)in paragraph (2), by striking Director of the Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation.(n)Housing and Urban-Rural Recovery Act of 1983The first sentence of section 469 of the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
 1701p-1) is amended by striking Federal Housing Finance Agency,.(o)Multifamily Assisted Housing Reform and Affordability Act of 1997Section 517(b)(4) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
 U.S.C. 1437f note) is amended by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(p)Public law 93–495Section 111 of Public Law 93–495 (12 U.S.C. 250) is amended by striking the Director of the Federal Housing Finance Agency,.(q)Neighborhood Reinvestment Corporation ActSection 606(c)(3) of the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8105(c)(3)) is
 amended by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(r)Riegle Community Development and Regulatory Improvement Act of 1994Section 117(e) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12
 U.S.C. 4716(e)) is amended by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(s)Right to Financial Privacy Act of 1978Section 1113(o) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3413(o)) is amended—(1)in the heading to the subsection, by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation;(2)by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(3)by striking Federal Housing Finance Agency’s and inserting Federal Mortgage Insurance Corporation’s.(t)Sarbanes-Oxley Act of 2002Section 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7215(b)(5)(B)(ii)(II)) is
 amended by striking Director of the Federal Housing Finance Agency and inserting Chairperson of the Federal Mortgage Insurance Corporation.(u)Securities Exchange ActSection 15G of the Securities Exchange Act (15 U.S.C. 78o-11) is amended—(1)in subsection (b)(2), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(2)in subsection (e)(4), by striking Director of the Federal Housing Finance Agency each place that term appears and inserting Chairperson of the Federal Mortgage Insurance Corporation.(v)Truth in Lending ActThe Truth in Lending Act (15 U.S.C. 1601 et seq.) is amended—(1)section 129H(b)(4), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(2)in section 129E—(A)in subsection (g)(1), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation; and(B)in subsection (h), by striking Federal Housing Finance Agency and inserting Federal Mortgage Insurance Corporation.(w)Other references in Federal lawOn and after the system certification date, any reference to the Federal Housing Finance Agency or
 the Director thereof in any
 law, rule, regulation, certificate, directive, instruction, or other
 official paper in force on the system certification date shall be
 considered to
 refer and apply to the Federal Mortgage Insurance Corporation and the
 Chairperson thereof, respectively.408.Repeal of mandatory housing goals(a)Repeal of
 housing goalsThe Safety and Soundness Act is amended
 by
 striking sections 1331 through 1336 (12 U.S.C. 4561–6).(b)Conforming
 amendmentsThe Safety and Soundness Act (12 U.S.C.
 4501
 et seq.) is amended—(1)in section
 1303(28), by striking , and, for the purposes and all that
 follows through designated disaster areas;(2)in section
 1324(b)(1)(A), by striking clauses (i), (ii), and (iv);(3)in section
 1341—(A)in subsection
 (a)—(i)in
 paragraph (1), by inserting or after the semicolon at the
 end;(ii)in
 paragraph (2), by striking the semicolon at the end and inserting a
 period;
 and(iii)by
 striking paragraphs (3) and (4); and(B)in subsection
 (b)(2)—(i)in subparagraph (A), by inserting
 or after the semicolon at the end;(ii)by
 striking subparagraphs (B) and (C); and(iii)by
 redesignating subparagraph (D) as subparagraph (B);(4)in section
 1345(a)—(A)in paragraph (1),
 by inserting or after the semicolon at the end;(B)in paragraph (2),
 by striking the semicolon at the end and inserting a period; and(C)by striking
 paragraphs (3) and (4); and(5)in section
 1371(a)(2), by striking with any housing goal established under subpart
 B of part 2 of subtitle A of this title, with section 1336 or 1337 of this
 title,.(c)Effective dateThe amendments made by this section shall take effect on the date of enactment of this Act.(d)Required compliance with nondiscrimination laws(1)Approved entities; PlatformNotwithstanding any other provision of this Act, approved entities and the Securitization Platform
 shall comply with Federal and State nondiscrimination laws, including the
 Fair Housing Act
 (42 U.S.C.
 3601 et seq.) and the Equal Credit Opportunity Act (15 U.S.C. 1691 et
 seq.).(2)Corporation(A)In generalIn carrying out this Act, the Corporation shall comply with Federal and State nondiscrimination
 laws.(B)Periodic reviewThe Corporation shall periodically review its policies, standards, and guidelines with respect to
 eligible mortgage loans, including, but not limited to, any automated
 underwriting systems, to ensure that such policies, standards, and
 guidelines are consistent with the requirements of section 408(d).(3)Safety and Soundness ActSection 1325 of the Safety and Soundness Act (12 U.S.C. 4545) is amended—(A)in the matter preceding paragraph (1), by striking The Secretary and inserting the following:(a)In generalThe Secretary;(B)in paragraph (1)—(i)by inserting , approved guarantor, approved multifamily guarantor, approved aggregator, and the Securitization
 Platform after enterprise;(ii)by inserting or guarantee after purchase; and(iii)by inserting or mortgage-backed security after mortgage;(C)in paragraph (2)—(i)by striking (2) by regulation and by inserting (2)(A) by regulation;(ii)by inserting and after the semicolon; and(iii)by adding at the end the following:(B)with respect to the market for covered guarantee transactions and covered market-based risk-sharing
 transactions, by regulation, require each approved guarantor, approved
 multifamily guarantor, and approved aggregator to submit data to the
 Secretary to assist the Secretary in investigating whether a mortgage
 lender with which the approved guarantor, approved multifamily guarantor,
 or approved aggregator does business has failed to comply with the Fair
 Housing Act (42 U.S.C. 3601 et seq.);;(D)in paragraph (3)—(i)by striking (3) by regulation and by inserting (3)(A) by regulation;(ii)by inserting and after the semicolon; and(iii)by adding at the end the following:(B)with respect to the market for covered guarantee transactions and covered market-based risk-sharing
 transactions, by regulation, require each approved guarantor, approved
 multifamily guarantor, and approved aggregator to submit data to the
 Secretary to assist in investigating whether a mortgage lender with which
 the approved guarantor, approved multifamily guarantor, or approved
 aggregator does business has failed to comply with the Equal Credit
 Opportunity Act (15 U.S.C. 1691 et seq.), and shall submit any such
 information received to the appropriate Federal agencies, as provided in
 section 704 of the Equal Credit Opportunity Act (15 U.S.C. 1691c), for
 appropriate action;;(E)in paragraph (4), by inserting and the Federal Mortgage Insurance Corporation after enterprises;(F)in paragraph (5)—(i)by striking (5) direct the and by inserting (5)(A) direct the;(ii)by inserting and after the semicolon; and(iii)by adding at the end the following:(B)with respect to the market for covered guarantee transactions and covered market-based risk-sharing
 transactions, apply various remedial actions, including suspension,
 probation, reprimand, or settlement, against lenders that have been found
 to have engaged in discriminatory lending practices in violation of the
 Fair Housing Act or the Equal Credit Opportunity Act, pursuant to a final
 adjudication on the record, and after opportunity for an administrative
 hearing, in accordance with subchapter II of chapter 5 of title 5, United
 States Code; and;(G)in paragraph (6)—(i)by striking (6) periodically review and by inserting (6)(A) periodically review;(ii)by striking the period at the end and inserting ; and; and(iii)by adding at the end the following:(B)with respect to the market for covered guarantee transactions and covered market-based risk-sharing
 transactions, periodically review and comment on the underwriting and
 appraisal guidelines of each approved guarantor, approved multifamily
 guarantor, and approved aggregator, and the policies, standards, and
 guidelines of the Securitization Platform to ensure that such guidelines
 are consistent with the Fair Housing Act and this section.; and(H)by adding at the end the following:(b)DefinitionsIn this section, the terms approved guarantor, approved multifamily guarantor, approved aggregator, covered guarantee transaction, covered market-based risk-sharing transaction, and Securitization Platform have the meanings given such terms in section 2 of the Housing Finance Reform and Taxpayer
 Protection Act of 2014..VImproving transparency, accountability, and efficacy within affordable housing501.Affordable housing allocations(a)Fee and allocation of amountsIn addition to any fees for the provision of insurance established in accordance with title III, in
 each fiscal year the Corporation shall—(1)charge and collect a fee determined as provided in subsection (b) for each dollar of the
 outstanding principal
 balance of all eligible mortgage loans that collateralize covered
 securities insured under this Act; and(2)allocate or otherwise transfer, on an annual basis—(A)75 percent of such fee amounts to the Secretary of Housing and Urban Development to fund the
 Housing Trust
 Fund established under section 1338 of the Safety and Soundness Act (12
 U.S.C. 4568);(B)15 percent of such fee amounts to the Secretary of the Treasury to fund the Capital Magnet Fund
 established
 under section 1339 of the Safety and Soundness Act (12 U.S.C. 4569); and(C)10 percent of such fee amounts to the Corporation to fund the Market Access Fund established under
 section
 504.(b)Determination of feeThe fee required to be charged under subsection (a) shall be determined as follows:(1)Initial feeBeginning on the date of enactment of this Act and ending upon the date set forth under paragraph
 (2)(E), the fee shall be an amount equal to 10 basis points for each
 dollar of the outstanding principal
 balance of eligible mortgage loans collateralizing covered securities
 insured under this Act.(2)Subsequent incentive-based feeNot later than 6 months after the date that the Corporation has approved at least 2 approved
 guarantors, approved multifamily guarantors, or approved aggregators, the
 Corporation shall, by regulation, after notice and comment, establish a
 formula for
 determining the fee that meets the following criteria:(A)Average for all feesThe average of fees charged on
 the total outstanding principal balance of all eligible mortgage loans
 collateralizing covered securities
 insured under this Act shall be equal to 10 basis points.(B)Permissible rangeThe highest basis point fee charged to an approved guarantor, approved multifamily guarantor, or
 approved aggregator engaged in a covered guarantee transaction or an
 approved aggregator engaged in a covered
 market-based risk-sharing transaction shall not exceed 2 times the lowest
 basis point fee charged.(C)Incentives to serve underserved market segments(i)In generalThe formula determined under this subsection shall provide that the amount by which any particular
 fee charged to an approved guarantor, approved multifamily guarantor, or
 approved aggregator engaged in a covered guarantee transaction or an
 approved aggregator engaged in a covered
 market-based risk-sharing transaction may be more or less than the average
 fee required under subparagraph (A) based upon consideration of the
 following factors:(I)Performance relative to peersThe performance of each approved guarantor, approved multifamily guarantor, or approved aggregator
 engaged in a covered guarantee transaction and each approved aggregator
 engaged in a covered
 market-based risk-sharing transaction in serving underserved market
 segments, as identified and defined under section 210, relative to the
 performance of all other approved guarantors, approved multifamily
 guarantors, or approved aggregators engaged in covered guarantee
 transactions or approved aggregators engaged in covered market-based
 risk-sharing transactions.(II)Performance relative to primary market loan origination dataThe performance of each approved guarantor, approved multifamily guarantor, or approved aggregator
 engaged in a covered guarantee transaction and each approved aggregator
 engaged in a covered
 market-based risk-sharing transaction in serving underserved market
 segments, as identified and defined under section 210, relative to the
 level of primary market mortgage originations in each of the underserved
 market segments so identified and defined that were facilitated by the
 approved guarantor, approved multifamily guarantor, or approved
 aggregator's engagement in a covered guarantee transaction or the approved
 aggregator’s engagement in a covered market-based risk-sharing
 transaction.(III)Relative extent to which individual market segments are underservedThe relative extent to which each of the underserved market segments, as identified and defined
 under
 section 210, that have primary market mortgage originations facilitated by
 the approved guarantor, approved multifamily guarantor, or approved
 aggregator's engagement in a covered guarantee transaction or the approved
 aggregator’s engagement in a covered market-based risk-sharing transaction
 is underserved.(ii)Weighing factorsThe formula determined under this subsection shall assign such weights to each of the factors set
 forth under clause (i) as the Corporation determines necessary and
 appropriate.(iii)Data for measuring factorsTo measure the performance in serving underserved market segments, as identified and defined under
 section 210, by approved guarantors, approved multifamily guarantors, or
 approved aggregators engaged in a covered guarantee transaction and
 approved aggregators engaged in a covered market-based risk-sharing
 transaction and the extent to which a market segment is underserved, the
 formula determined under this subsection shall provide for the use of—(I)the identifications and definitions of underserved market segments established by the Corporation
 under section 210;(II)data and other information in the annual report filed with the Corporation by each approved
 guarantor, approved multifamily guarantor, or approved aggregator engaged
 in a covered guarantee transaction and each approved aggregator engaged in
 a covered market-based risk-sharing transaction, as required under section
 210;(III)loan level data, to the extent possible in the manner required by the Home Mortgage Disclosure Act
 (12 U.S.C. 2801 et seq.) on activities related to covered securities; and(IV)other publicly available data.(D)Third-party entity to measure factors(i)SelectionThe Corporation, through a competitive process, shall select an entity independent of the
 Corporation to gather, use, and provide to the Corporation the data
 required under subparagraph (C)(iii).(ii)RankingThe entity selected under clause (i) shall—(I)analyze the data required under subparagraph (C)(iii); and(II)rank the approved guarantors, approved multifamily guarantors, or approved aggregators engaged in
 covered guarantee transactions and the approved aggregators engaged in
 covered market-based risk-sharing transactions, applying the formula
 established by the Corporation.(iii)Timing of rankingThe entity selected under clause (i) shall, on an annual basis, provide the rankings required
 under clause (ii)(II). The annual rankings required under this clause
 shall begin at a time to be determined mutually by the entity selected
 under clause (i) and the Corporation, so that the Corporation will be
 positioned to determine, charge, and collect the first incentive-based
 fees beginning on the date that is 12 months after the date of approval of
 at
 least 2 approved guarantors, approved multifamily guarantors, or approved
 aggregators.(E)Timing of charging and collecting incentive-based fees(i)First incentive-based feesSubject to paragraph (3), the Corporation shall charge and collect the first incentive-based fees
 required under this subsection beginning on the date that is 12 months
 after the date of the approval of at least 2 approved guarantors, approved
 multifamily guarantors, or approved aggregators.(ii)Subsequent annual incentive-based feesSubject to paragraph (3), the Corporation shall charge and collect incentive-based fees annually on
 the first business day of each 12-month period that begins after the
 expiration of the initial 12-month period set forth in clause (i).(iii)Collection(I)ProceduresThe Corporation shall, by regulation, establish procedures for collecting the incentive-based fee
 required under this paragraph on a periodic basis determined by the
 Corporation.(II)Compliance with proceduresThe Corporation shall collect all incentive-based fees required under this paragraph consistent
 with the procedures established pursuant to subclause (I).(iv)Adjustments to incentive-based fees paid(I)In generalThe Corporation shall make appropriate adjustments to the incentive-based fee charged to an
 approved guarantor, approved multifamily guarantor, or approved aggregator
 engaged in a covered guarantee transaction or an approved aggregator
 engaged in a covered market-based risk-sharing transaction for any year
 based on the—(aa)application of the formula established under this paragraph to such approved guarantor, approved
 multifamily guarantor, or approved aggregator; and(bb)measured performance of such approved guarantor, approved multifamily guarantor, or approved
 aggregator in that year.(II)Form of adjustmentsAny adjustments made pursuant to subclause (I) may take the form of—(aa)a credit against the fee paid by an approved guarantor, approved multifamily guarantor, or
 approved aggregator for the year; or(bb)an additional amount owing on the fee for the year by the approved guarantor, approved
 multifamily guarantor, or approved aggregator.(v)Frequency of incentive-based fee collectionIn determining the appropriate periodic basis for collecting the incentive-based fees required
 under clause (iii), the Corporation shall take into
 consideration the need to make appropriate adjustments to the fees under
 clause (iv) through credits or additional billings.(vi)Rule of constructionNothing in this subparagraph shall be construed to waive, override, or in any manner supersede the
 requirement set forth under subparagraph (A).(F)Additional incentives to serve underserved market segments(i)Fee credits from the Market Access FundNotwithstanding any provision of section 504 or any other provision of law, the Corporation may use
 up to 50 percent of the amounts in the Market Access Fund, determined
 as of the date that an incentive-based fee under subparagraph (E) is to be
 charged in any year, to provide 1 or more approved guarantors, approved
 multifamily guarantors, or approved aggregators engaged in a covered
 guarantee transaction or approved aggregators engaged in a covered
 market-based risk-sharing transaction with additional incentives to serve
 underserved market segments, as identified and defined under section
 210,
 through the award of a credit that may be applied to reduce the annual fee
 charged to the approved guarantor, approved multifamily guarantor, or
 approved aggregator if that person exceeds performance measures related to
 the service of such underserved market segments established by the
 Corporation.(ii)Rule requiredThe Corporation shall establish, by regulation, the terms, conditions, and performance measures for
 the awarding of credits under clause (i).(3)Opt-out from incentive-based fees(A)Election and written agreementAn approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a covered
 guarantee transaction or an approved aggregator engaged in a covered
 market-based risk-sharing transaction may elect to be excepted from the
 incentive-based fee that is charged under paragraph (2) by notifying the
 Corporation in writing that the approved guarantor, approved multifamily
 guarantor, or approved aggregator agrees to pay the fee amount
 described in subparagraph (C).(B)Timing for electionFor any 12-month period for which an incentive-based fee will be charged under paragraph (2), an
 approved guarantor, approved multifamily guarantor, or approved aggregator
 engaged in a covered guarantee transaction or an approved aggregator
 engaged in a covered
 market-based risk-sharing transaction may make an election under
 subparagraph (A) not later than 3 months prior to the beginning of such
 12-month period.(C)Fee amount for opt-outIf an approved guarantor, approved multifamily guarantor, or approved aggregator engaged in a
 covered guarantee transaction or an approved aggregator engaged in a
 covered
 market-based risk-sharing transaction makes an election under subparagraph
 (A), the Corporation shall charge to, and collect from, the approved
 guarantor, approved multifamily guarantor, or approved aggregator a fee
 in an amount equal to the highest fee charged by Corporation for the
 12-month period under the ranking made under paragraph (2)(D).(D)Opt-out not to affect reporting requirementsAn election made under subparagraph (A) shall not release, diminish, or otherwise affect any
 requirement set forth by this Act that requires an approved guarantor,
 approved multifamily guarantor, or approved aggregator engaged in a
 covered guarantee transaction or an approved aggregator engaged in a
 covered market-based risk-sharing transaction to furnish to the
 Corporation such information as the Corporation is authorized by this Act
 to
 obtain, including the annual report required to be filed with the
 Corporation under section 210.(c)Continuing obligationThe fee required to be charged under subsection (a) shall be collected for the life of the covered
 security.(d)Suspension of contributionsThe Corporation may temporarily suspend allocations under subsection (a)(2) upon a finding by the
 Corporation that such allocations are contributing, or would contribute,
 to the financial instability of the Mortgage Insurance Fund established
 under section 303.(e)Rule of constructionThe cost of the fee required to be charged under subsection (a) shall not be borne by eligible
 borrowers.502.Housing Trust
 FundSection 1338 of the
 Safety and Soundness Act (12
 U.S.C. 4568) is amended—(1)in subsection (a)(1)—(A)in the first sentence, by inserting or pursuant to
 section 501 of the Housing Finance Reform and Taxpayer Protection Act of 2014 after section 1337; and(B)in the second sentence, by inserting federally-recognized tribes and after grants to;(2)by striking subsection (b) and inserting the following:(b)[Reserved.]; (3)in subsection
 (c)—(A)in paragraph (1), by striking Except as provided in subsection (b), the and
 inserting The;(B)in paragraph (2)—(i)by striking (as such term is defined in section 4 of the Native American Housing Assistance and
 Self-Determination Act of 1997 (25 U.S.C. 4103)); and(ii)by adding at the end the following: An Indian tribe receiving grant amounts under this subsection may designate a federally recognized
 tribe or a tribally designated housing entity to receive such grant
 amounts. Nothing in this subsection shall limit or be construed to limit
 the ability of an Indian tribe or a tribally designated housing entity
 from being a permissible designated recipient of grant amounts provided by
 a State under this section.;(C)in paragraph (3)—(i)in the heading—(I)by inserting Indian tribes and before States; and(II)by striking by needs-based formula;(ii)in subparagraph (A), by striking The Secretary shall and inserting the following:(i)Minimum tribal distributions(I)In generalThe Secretary, acting through the Office of Native American Programs, shall distribute via
 competitive grants the amounts determined under subclause (II) and made
 available under this subsection to federally recognized tribes and
 tribally designated housing entities.(II)AmountsThe total amount required to be distributed under this subclause for a fiscal year shall be the
 greater of $20,000,000, or 2 percent of the total amount of amounts
 allocated for the Housing Trust Fund under this section.(III)Use of amountsCompetitive grant amounts received by a federally recognized tribe or a tribally designated housing
 entity under this clause may be used, or committed to use, only for those
 activities that are identified as eligible affordable housing activities
 under section 202 of the Native American Housing Assistance and
 Self–Determination Act of 1996 (25 U.S.C. 4132).(IV)Evaluation of applications(aa)In generalIn evaluating any application for the receipt of competitive grant amounts authorized under this
 clause, the Secretary, acting through the Office of Native American
 Programs, shall consider with respect to the federally recognized tribe
 applicant or tribally designated housing entity applicant and to Indian
 reservations and other Indian areas associated with the federally
 recognized tribe applicant or served by the tribally designated housing
 entity applicant evaluation criteria, including the following:(AA)Level of poverty on the Indian reservation or in the Indian area.(BB)Level of unemployment on the Indian reservation or in the Indian area.(CC)Condition of housing stock on the Indian reservation or in the Indian area.(DD)Level of overcrowded housing on the Indian reservation or in the Indian area, as measured by the
 number of households in which the number of persons per room is greater
 than 1.(EE)Presence and prevalence of black mold on the Indian reservation or in the Indian area.(FF)Demonstrated experience, capacity, and ability of the applicant to manage the development and
 construction of affordable housing, and manage affordable housing
 programs, including rental housing programs, homeownership
 programs, and programs to assist purchasers with down payments, closing
 costs, or interest rate buy-downs.(GG)Demonstrated ability of the applicant to meet the requirements under the Native American Housing
 Assistance and Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.),
 including the timely and efficient expenditure of funds.(HH)Such other criteria as may be specified by the Secretary in order to evaluate the overall quality
 of the proposed project, the feasibility of the proposed project, and
 whether the proposed project will address the housing needs on the Indian
 reservation or in the Indian area.(bb)Review of dataIn evaluating any application for the receipt of competitive grant amounts authorized under this
 clause, the Secretary, acting through the Office of Native American
 Programs, shall permit a federally recognized tribe applicant or a
 tribally designated housing entity applicant to supplement or replace, in
 whole or in part, any data compiled and produced by the Bureau of the
 Census and upon which the Secretary, acting through the Office of Native
 American Program, relies, provided such tribally-collected data meets the
 Department of Housing and Urban Development's standards for accuracy.(V)Treatment of fundsNotwithstanding any other provision of law, competitive grant amounts received under this clause
 shall not be considered Federal funds for purposes of matching other
 Federal sources of funds.(VI)Rule of constructionThe requirements under clause (ii), subparagraphs (B) and (C) of this paragraph, and paragraphs (4)
 through (8) and paragraph (10)(A) of this subsection shall not apply to
 any amounts distributed under this clause to a federally recognized tribe
 or a tribally designated housing entity.(ii)State distributionsFrom any amounts remaining in the Housing Trust Fund after the distribution of the amounts required
 under clause (i), the Secretary shall;(iii)in subparagraph (B), by striking subparagraph (A) and inserting subparagraph (A)(ii); and(iv)in subparagraph (C), by striking subparagraph (A) and inserting subparagraph (A)(ii);(D)in paragraph
 (4)—(i)in subparagraph (B), by striking other than fiscal year 2009; and(ii)by striking subparagraph (C), and inserting the following:(C)Minimum State allocations(i)In generalExcept as provided in clause (ii), the minimum allocation, following the determination of the
 formula amount in paragraph (3), to any of the 50 States of the United
 States or the District of Columbia shall be $10,000,000 and the increase
 in any such allocation shall be deducted pro rata from the allocations
 made above such minimum to all other of the States (as such term is
 defined in section 1303).(ii)ExceptionIf the allocation to the Housing Trust Fund under section 501(a)(2)(A) of the Housing Finance Reform and Taxpayer Protection Act of 2014 for a fiscal year is less than $1,000,000,000, the minimum allocation to any of the 50 States of
 the United States or the District of Columbia shall be the greater of
 $5,000,000 or 1 percent of the total amount of amounts allocated for the
 Housing Trust Fund under this section and the increase in any such
 allocation shall be deducted pro rata from the allocations made above such
 minimum to all
 other of the States (as such term is defined in section 1303).; (E)in paragraph (5)(A)—(i)in clause (iii), by striking and at the end;(ii)by redesignating clause (iv) as clause (v); and(iii)by inserting after clause (iii) the following:(iv)set forth a plan for achieving geographic diversity, including the distribution of grant amounts to
 rural areas in proportion to housing needs in those areas; and.(F)in paragraph (7)(A), by striking housing under the programs identified in section 1335(a)(2)(B) of this title and inserting housing subsidized under Federal law or comparable State or local laws;(G)in paragraph
 (7)(B)(iv), by striking
 section 132 and inserting section 1132;(H)in paragraph (9), by inserting (including a public housing agency) after agency; and(I)by adding at the end the following:(11)Rule of constructionNothing in this subsection shall be construed to limit the ability of a federally recognized tribe
 or a tribally designated housing entity from receiving grant amounts
 provided by a State under this section.;(4)in subsection (f), by adding at the end the following:(7)Tribal terms(A)In generalThe terms federally recognized tribe, Indian area, Indian tribe, and tribally designated housing entity have the same meaning as in section 4 of the Native American Housing Assistance and
 Self-Determination Act of 1996 (25 U.S.C. 4103).(B)Indian reservationThe term Indian reservation means land subject to the jurisdiction of an Indian tribe.(8)Rural areaThe term rural area means any community eligible for assistance under section 520 of the Housing Act of 1949 (42
 U.S.C. 1490).; and(5)in subsection (g)(2)(D)(i), by inserting , including the distribution of grant amounts to rural areas in proportion to housing needs in
 those areas after diversity.503.Capital Magnet FundSection 1339 of the Safety and Soundness Act (12
 U.S.C. 4569) is amended—(1)in subsection (b)(1), by inserting or section 501 of the Housing Finance Reform and Taxpayer Protection Act of 2014 after section 1337;(2)in subsection (c)—(A)in paragraph (1), by striking ; and and inserting a semicolon;(B)in paragraph (2)—(i)by inserting , activities designed to foster revitalization in areas experiencing severe economic distress and
 property disinvestment, including, but not limited to, demolition,
 property
 rehabilitation, and infrastructure configuration, after economic development activities; and(ii)by inserting and tribal after rural; and(3)in subsection (h)(2)(A), by inserting or tribal after rural.504.Market Access Fund(a)EstablishmentThe Corporation shall establish a fund, to be known as the Market Access Fund, which shall be maintained and administered by the Office of Consumer and Market Access.(b)DepositsThe Market Access Fund shall be credited with—(1)the share of the fee charged and collected by the Corporation under section 501; and(2)such other amounts as may be appropriated or transferred to the Market Access Fund.(c)PurposeAmounts in the Market Access Fund shall be eligible for use by grantees to address the
 homeownership and rental housing needs of underserved or hard-to-serve
 populations by—(1)providing grants and loans for research, development, and pilot testing of innovations in consumer
 education, product design, underwriting, and servicing;(2)offering additional credit support for certain eligible mortgage loans or pools of eligible
 mortgage loans,
 such as by covering a portion of any capital required to obtain insurance
 from the Corporation under this Act, provided that amounts for such
 additional credit support do not replace borrower funds required of an
 eligible mortgage loan;(3)providing grants and loans,
 including through the use of pilot programs of sufficient scale, to
 support the
 research and development of sustainable homeownership and
 affordable rental
 programs, which programs shall include manufactured homes purchased
 through real estate and personal property loans and manufactured homes
 used as rental housing, provided that such grant or loan amounts are used
 only for the
 benefit of families whose income does not exceed 120 percent of the
 median
 income for the area as determined by the Corporation, with
 adjustments for family size;(4)providing limited
 credit enhancement, and other forms of credit support, for product
 and services
 that—(A)will increase the
 rate of sustainable homeownership and affordable rental housing,
 including manufactured homes purchased through real estate and personal
 property loans and manufactured homes used as rental housing, by
 individuals or
 families whose income does not exceed 120 percent of the area
 median income as
 determined by the Corporation, with adjustments for family size;
 and(B)might not
 otherwise be offered or supported by a pilot program of sufficient
 scale to
 determine the viability of such products and services in the
 private
 market;(5)providing housing counseling by a HUD-approved housing counseling agency;(6)providing incentives to achieve broader access to mortgage credit; and(7)providing grants and loans for activities designed to foster revitalization in areas
 experiencing severe economic distress and property disinvestment,
 including, but not limited to, demolition,
 rehabilitation, infrastructure configuration, and reuse of vacant
 land.(d)Annual report(1)In generalThe Chairperson shall, on an annual basis, report to Congress on the performance and outcome of
 grants, loans, or credit support programs funded by the Market Access Fund
 in accordance with subsection (c), including—(A)an evaluation of how each
 grant, loan, or credit support program—(i)succeeded in meeting or failed to meet the need of certain populations, especially extremely low-,
 very low-, low-, and moderate-income and underserved or hard-to-serve
 populations; and(ii)succeeded in maximizing or failed to maximize the leverage of public investment made for each such
 grant, loan, or credit support program; and(B)for each award of funds for a grant, loan, or credit support program by the Market Access Fund—(i)the recipient of the funds;(ii)the purpose for which the recipient received the funds;(iii)the amount of funds provided to the recipient; and(iv)the amount of funds, excluding administrative costs, that are used to directly meet the purpose
 identified under clause (ii), including meeting the housing needs of
 extremely low-, very low-, low-, and moderate-income and underserved or
 hard-to-serve populations.(2)Inclusion in annual reportThe Chairperson shall include the report required under paragraph (1) in the annual report required
 under
 section 206.505.Additional taxpayer protections(a)Not to be used
 for political activitiesConsistent with the existing
 requirements under sections 1338(c)(10)(D) and 1339(h)(5) of the
 Safety and Soundness Act
 (12 U.S.C. 4568(c)(10)(D) and 4569(h)(5)),
 the
 Secretary of Housing and Urban Development, the Secretary of the
 Treasury,
 and the Office of Community and Market Access, respectively, shall ensure
 that grant amounts allocated by covered
 grantees to
 eligible recipients or allocated to individuals by such eligible
 recipients are
 not used for—(1)political
 activities;(2)political advocacy;(3)lobbying, whether
 directly or through other parties;(4)influencing the
 selection, nomination, election, or appointment of 1 or more candidates
 to
 any Federal, State or local office;(5)personal
 counseling services;(6)travel expenses;
 and(7)preparing or
 providing advice on tax returns.(b)Penalties(1)Civil money
 penaltyIf an eligible recipient or any other individual in
 receipt of grant amounts described by this section violates any provision
 of
 subsection (a), the Secretary of Housing and Urban Development, the
 Secretary of the Treasury, or the Corporation, as the case may be, may
 impose a civil penalty
 on
 such recipient or individual, as the case may be, of not more than
 $1,000,000
 for each violation.(2)Criminal
 penaltiesWhoever, being subject to the provisions of subsection
 (a), knowingly participates, directly or indirectly, in any manner
 in
 conduct that results in a violation of such provisions shall,
 notwithstanding
 section 3571 of title 18, United States Code, be fined not more than
 $1,000,000
 for each violation, imprisoned for not more than 5 years, or both.(3)Rule of
 constructionThe penalties imposed under paragraphs (1) or (2)
 shall be in addition to any other available civil remedy or any other
 available
 criminal penalty and may be imposed whether or not the Secretary of
 Housing and
 Urban Development, the Secretary of the Treasury, or the Corporation, as
 the case may be,
 imposes
 other administrative sanctions.(c)DefinitionsAs
 used in this section—(1)the term
 covered grantee means—(A)for purposes of
 the Housing Trust Fund, a State or State designated entity;(B)for purposes of
 the Capital Magnet Fund, an eligible grantee as described under section
 1339(e)
 of the Safety and Soundness Act (12 U.S.C. 4569(e)); and(C)for purpose of the Market Access Fund, an eligible grantee as described under section 504(c);(2)the term
 eligible recipient means—(A)for purposes of
 the Housing Trust Fund, a recipient as described under section 1338(c)(9)
 of
 the Safety and Soundness Act (12 U.S.C. 4568(c)(9));(B)for purposes of
 the Capital Magnet Fund, a recipient of assistance from the Capital Magnet
 Fund; and(C)for purposes of the Market Access Fund, a recipient of assistance from the Market Access Fund;(3)the term
 Capital Magnet Fund means the Capital Magnet Fund established
 under section 1339 of the Safety and Soundness Act (12 U.S.C. 4569); and(4)the term
 Housing Trust Fund means the Housing Trust Fund established
 under section 1338 of the Safety and Soundness Act (12 U.S.C. 4568).(d)Rule of constructionNothing in subsection (a) shall be construed to prevent funds from being used for—(1)HUD-approved housing counseling services;(2)financial literacy education; or(3)application fees, permits, or other construction-related expenses, if funds are authorized for such
 construction.506.Promoting affordable housing investment(a)Housing and Community Development Act of 1992Paragraph (6) of section 542(c) of the Housing and Community Development Act of 1992 (12 U.S.C.
 1715z-22(c)) is amended to read as follows:(6)Ginnie Mae securitizationThe Government National Mortgage Association may, at the discretion of the Secretary, securitize
 any multifamily loan insured under this subsection, provided that—(A)the Federal Housing Administration provides mortgage insurance based on the unpaid principal
 balance of the loan, as shall be described by regulation;(B)the Federal Housing Administration shall not require an assignment fee for mortgage insurance
 claims related to the securitized mortgages;(C)the risk-sharing agreement must provide for reimbursement to the Secretary by the risk share
 partner or partners for either all or a portion of the losses incurred on
 the loans insured, regardless of whether the servicing rights or other
 related mortgage interest have been transferred to a different entity; and(D)any entity that subsequently acquires the servicing rights or other related mortgage interest of
 the risk share partner or partners shall not assume any obligation under
 the risk-sharing agreement..(b)National Housing ActClause (ii) of the first sentence of section 306(g)(1) of the National Housing Act (12 U.S.C.
 1721(g)(1)) is amended—(1)by striking the semicolon and inserting a comma; and(2)by inserting before the period at the end the following: , or which are insured under subsection (c) of section 542 of the Housing and Community
 Development Act of 1992 (12 U.S.C.1715z-22), subject to the terms of
 subsection (c)(6) of such section.(c)Effective date; sunset(1)Effective dateThe amendments made by this section shall take effect beginning on October 1, 2014.(2)SunsetThe amendments made by this section shall expire on September 30, 2021. Effective October 1, 2021,
 the provisions of paragraph (6) of section 542(c) of the Housing and
 Community Development Act of 1992 (12 U.S.C. 1715z-22(c)) and clause (ii)
 of the first sentence of section 306(g)(1) of the National Housing Act (12
 U.S.C. 1721(g)(1)), as in effect on the day before the date of the
 enactment of this Act, are hereby revived.VITransition and termination of Fannie Mae and Freddie Mac601.Minimum housing finance system criteria to be met prior to system certification date(a)System certification dateThe system certification date shall be the date that the Board of Directors, in its sole
 discretion, certifies by a majority vote that—(1)the Corporation is able to undertake, in a manner found satisfactory to the Board, the duties
 specified by this Act, and any amendments made by this Act; and(2)all the minimum criteria set forth under subsection (b) with respect to the new housing finance
 system
 have been
 fully satisfied.(b)Minimum housing finance system criteriaThe Board of Directors shall consider the following minimum criteria in determining whether to
 certify that the new housing finance system is ready:(1)Taxpayer protectionThe Department of the Treasury advised the Board of Directors that laws and contracts are in place
 to provide for compensation to the Department for its support of the
 enterprises and the
 housing finance system.(2)Securitization platform and standardized securitiesThe Securitization Platform is developed and able to issue standardized securities for the
 single-family
 covered securities market.(3)Small lender mutualsAt least 1 small lender mutual is fully operational and able to undertake the
 duties specified in section 315.(4)Approved entitiesA sufficient number of approved entities have been approved pursuant the provisions of subtitle B
 of title III—(A)to assume a reasonable level of first loss position through approved guarantors or through approved
 credit risk-sharing mechanisms
 established under section 302; and(B)to generate a substantial volume of secondary mortgage market activity with respect to eligible
 single-family mortgage loans collateralizing single-family covered
 securities insured in
 accordance
 with this
 Act.(5)Multifamily market(A)Well-functioning multifamily marketThe Corporation has approved multiple multifamily guarantors pursuant to title VII who are
 providing sufficient
 multifamily financing in the primary, secondary, and tertiary
 geographical markets, including in rural markets and through a diversity
 of experienced multifamily lenders.(B)Requirements of the ActApproved multifamily guarantors are meeting the requirements of this Act.(C)Competitive marketThere is a competitive multifamily market for approved multifamily guarantors engaging in
 multifamily
 covered securities.(D)Rule of constructionNoncompliance with the requirements of this Act by any individual approved multifamily guarantor
 shall not
 constitute grounds to prevent system
 certification.(c)Rule of constructionThe Corporation shall take all steps necessary to meet each minimum housing finance system criteria
 set forth
 under subsection (b) as expeditiously and efficiently as practicable. The
 Corporation may commence providing guarantees on single-family or
 multifamily covered securities prior to meeting all the minimum housing
 finance system criteria set forth under subsection (b).(d)Notification to Congress(1)In generalThe Chairperson shall promptly submit to the Committee on Banking, Housing, and Urban Affairs of
 the Senate and the Committee on Financial Services of the House of
 Representatives a written notification that the Board of Directors has
 certified that the criteria set forth under subsection (b) have been met.(2)TimingThe Corporation shall provide the notification required under paragraph (1) not later than 5 years
 after the date of enactment of this Act.(3)Deadline extensions(A)First extensionIf the Board of Directors is unable to make the certification required by this section prior to the
 deadline
 required in paragraph (2), the Board of Directors may, with an affirmative
 vote of the majority of the Board, extend the deadline an additional 2
 years.(B)Second extensionIf, after the expiration of the first extension of 2 years, the Board of Directors is unable to
 make the
 certification required by this section, the Board of Directors may, with
 an affirmative vote of at least 2/3 of the Board, extend the deadline an
 additional 2 years.(C)Additional extensionsIf, after the expiration of the second extension of 2 years, the Board of Directors is unable to
 make the
 certification required by this section, the Board of Directors may, with a
 unanimous affirmative vote of the Board and upon the written agreement of
 the Chairman of the Board of Governors of the Federal Reserve System and
 the Secretary of the Treasury, and in consultation with the Secretary of
 Housing and Urban Development, extend the deadline an additional year,
 and annually thereafter utilizing the same process described in this
 subparagraph until such time as the Board of Directors makes the
 certification required by this section.602.Transition of the housing finance system(a)Transition planThe Transition Committee established under section 404 shall develop a transition
 plan not later than 12 months after the date of enactment of this Act to
 facilitate an
 orderly transition to the new housing finance system authorized by this
 Act.(b)Contents of planThe transition plan required under subsection (a) shall include—(1)estimated timeframes by which to
 achieve the minimum housing finance system criteria set forth
 under section 601(b) within 5 years after the date of enactment of this
 Act;(2)detailed actions that the Corporation will take to achieve such minimum criteria;(3)estimated timeframes and detailed actions that the Corporation, including the Federal Housing
 Finance Agency, will take to provide an orderly
 wind
 down of the Federal National Mortgage Association and the Federal Home
 Loan Mortgage Corporation;(4)a detailed inventory of all intellectual property owned, held, or licensed by the enterprises,
 including patents, trademarks, software, credit evaluation systems, and
 data and information on mortgage performance and plans for utilizing any
 such intellectual property, technology, infrastructure, or processes of
 the enterprises in effecting the transition plan;(5)a description of and updates on the ongoing operations of the Corporation, including the operations
 of
 the Federal Housing Finance Agency;(6)detailed plans and timeframes for establishing, as soon as practicable, a multifamily covered
 securities market;(7)detailed plans and timeframes for establishing, as soon as practicable, a standardized security
 issued
 through the Securitization Platform for the single-family covered
 securities market; and(8)detailed plans for increasing the level of credit risk-sharing in the secondary mortgage market.(c)Considerations(1)In generalFor purposes of facilitating an
 orderly transition to the new housing finance system authorized by this
 Act, the Corporation shall consider in determining how to best fulfill the
 requirements of this title the estimated impact of various transition
 options with respect to the following:(A)Housing prices and affordability.(B)The effectiveness of consumer protections in the housing market.(C)Volume and characteristics of mortgage loan originations.(D)The condition of the rental housing market.(E)Small lender participation in the secondary mortgage market.(F)Access to credit in rural and underserved communities.(G)Competition among market participants.(H)The condition of the multifamily housing market.(I)Innovation among secondary mortgage market participants.(J)Taxpayer repayment.(K)Private capital in the secondary mortgage market.(2)Inclusion in annual reportA description and analysis of each consideration required under paragraph (1) shall be included in
 the report required to be submitted to Congress under subsection (d).(d)Report to Congress(1)In generalNot later than 12 months after the date of enactment of this Act and in accordance with section
 404(c)(2), the Transition
 Committee shall submit the transition plan required under
 subsection (a) to the Committee on Banking, Housing, and Urban Affairs of
 the Senate and the Committee on Financial Services of the House of
 Representatives.(2)UpdatesNot later than 1 year after the date on which the transition plan is submitted under paragraph
 (1) and annually thereafter until the system certification date,
 the Chairperson shall—(A)update the transition plan, subject to the requirements of subsection (b); and(B)submit such updated plan to the Committee on Banking, Housing, and Urban Affairs of the Senate and
 the Committee on Financial Services of the House of Representatives.603.Resolution authority; technical amendments(a)Effective dateThe amendments made by this section shall take effect on the agency transfer date.(b)Federal Housing Enterprises Financial Safety and Soundness Act of 1992Section 1367 of the Safety and Soundness Act (12 U.S.C. 4617) is amended—(1)by striking stockholder and stockholders and inserting shareholder, member, and shareholders, members,, respectively, each place those terms appear;(2)by striking wind up and winding up and inserting wind down and winding down, respectively, each place those terms appear;(3)in subsection (a)—(A)in paragraph (3)(G), by striking , and there is no reasonable prospect for the regulated entity to become adequately capitalized (as
 defined in section 1364(a)(1));(B)by striking paragraph (3)(J) and inserting the following:(J)InsolvencyThe regulated entity is insolvent or near-insolvent.;(C)by striking paragraph (3)(K);(D)by redesignating paragraph (3)(L) as paragraph (3)(K); and(E)in paragraph (4)(B)—(i)in the heading, by striking critically undercapitalized regulated entity and inserting insolvent or near-insolvent regulated entities;(ii)in the matter preceding clause (i), by striking critically undercapitalized and inserting insolvent or near-insolvent; and(iii)in clause (i), by striking critically undercapitalized and inserting insolvent or near-insolvent;(4)in subsection (b)—(A)in paragraph (2)(B)—(i)in clause (iii), by adding and after conservator or receiver;;(ii)by striking clause (iv); and(iii)by redesignating clause (v) as clause (iv);(B)in paragraph (2)(H), by striking of proceeds realized from the performance of contracts or sale of the assets of a regulated entity and inserting that funds are available;(C)in paragraph (2)(I)(i)(I), by striking section 1348 and inserting part II of this subtitle;(D)in paragraph (2)(I)(iii), by striking section 1317 or 1379B and inserting subtitle B of this Act;(E)by striking paragraph (3)(A) and inserting the following:(A)In generalThe Agency—(i)may, as receiver, determine claims in accordance with the requirements of this subsection and any
 regulations prescribed under paragraph (4); and(ii)may define the term creditor and may distinguish between creditors, in order to facilitate the orderly administration of the
 regulated entity in conservatorship or receivership, in accordance with
 the requirements of this section.;(F)in paragraph (3)(B), by striking closed;(G)in paragraph (5)(D)(iii)(II), by inserting legally enforceable and perfected before security interest;(H)by striking paragraph (7);(I)by redesignating paragraphs (8) through (19) as paragraphs (7) through (18), respectively; and(J)in paragraph (10)(E), as so redesignated—(i)in clause (ii), by striking ; and and inserting a semicolon;(ii)in clause (iii), by striking the period and inserting a semicolon; and(iii)by adding at the end the following:(iv)prohibits discrimination on the basis of race, sex, or ethnic group in the solicitation or
 consideration of offers; and(v)mitigates the potential for serious adverse effects to the financial system.; and(5)by striking subsection (c) and inserting the following:(c)Priority of expenses and unsecured claims(1)In generalUnsecured claims against a regulated entity, or the receiver therefor, that are proven to the
 satisfaction of the receiver shall have priority in the following order:(A)Claims of the receiver for administrative expenses.(B)Any amounts owed to the United States, unless the United States agrees or consents otherwise.(C)Wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an
 individual (other than an individual described in subparagraph (F)), but
 only to the extent of $12,475 for each individual (as indexed for
 inflation, by regulation of the Agency) earned not later than 180
 days before the date of appointment of the Agency as receiver.(D)Contributions owed to employee benefit plans arising from services rendered not later than 180 days
 before the date of appointment of the Agency as receiver, to the
 extent of the number of employees covered by each such plan, multiplied by
 $12,475 (as indexed for inflation, by regulation of the Agency), less
 the aggregate amount paid to such employees under subparagraph (C), plus
 the aggregate amount paid by the receivership on behalf of such employees
 to any other employee benefit plan.(E)Any claim arising solely from a covered guarantee transaction involving the regulated entity.(F)Any other general or senior liability of the regulated entity (which is not a liability described
 under subparagraph (G), (H), or (I)).(G)Any obligation subordinated to general creditors (which is not an obligation described under
 subparagraph (H) or (I)).(H)Any wages, salaries, or commissions, including any vacation, severance, and sick leave pay earned,
 owed to senior executives and directors of the regulated entity.(I)Any obligation to shareholders or members arising as a result of their status as shareholders or
 members.(2)Claims of the United StatesUnsecured claims of the United States shall, at a minimum, have a higher priority than liabilities
 of the regulated entity that count as regulatory capital.(3)Creditors similarly situatedAll creditors that are similarly situated under paragraph (1) shall be treated in a similar manner,
 except that the receiver may take any action (including making payments)
 that does not comply with this subsection, if—(A)the Agency determines that such action is necessary to—(i)maximize the value of the assets of the regulated entity;(ii)maximize the present value return from the sale or other disposition of the assets of the regulated
 entity;(iii)initiate and continue operations essential to implementation of the receivership or any
 limited-life regulated entity;(iv)minimize the amount of any loss realized upon the sale or other disposition of the assets of the
 regulated entity; or(v)preserve the financial stability of the United States; and(B)all creditors that are similarly situated under paragraph (1) receive not less than the amount
 provided in subsection (f)(2).(4)DefinitionAs used in this subsection, the term administrative expenses of the receiver includes—(A)the actual, necessary costs and expenses incurred by the receiver in preserving the assets of a
 failed regulated entity or liquidating or otherwise resolving the affairs
 of a failed regulated entity; and(B)any obligations that the receiver determines are necessary and appropriate to facilitate the smooth
 and orderly liquidation or other resolution of the regulated entity.;(6)by redesignating subsections (d) through (j) as subsections (e) and (k), respectively;(7)by inserting after section (c) the following:(d)Subrogation(1)In generalNotwithstanding any other provision of Federal law, the law of any State, or the constitution of
 any State, the Agency, upon the payment to any person as provided in
 subsection (c) in connection with any covered guarantee transaction (as
 that term is
 defined in section 2 of the Housing Finance Reform and Taxpayer Protection Act of 2014), shall be subrogated to all rights of the person against such regulated entity to the extent of
 such payment or assumption.(2)Dividends on subrogated amountsThe subrogation of the Agency under paragraph (1) with respect to any regulated entity shall
 include the right on the part of the Agency to receive the same
 dividends, fees, or other amounts from the proceeds of the assets of such
 regulated entity and recoveries on account of stockholders’ liability as
 would have been payable to the person on a claim related to the covered
 guarantee transaction.(3)Waiver of certain claimsThe Agency shall waive, in favor only of any person against whom stockholders’ individual
 liability may be asserted, any claim on account of such liability in
 excess of the liability, if any, to the regulated entity or its creditors,
 for the amount unpaid upon such stock in such regulated entity, but any
 such waiver shall be effected in such manner and on such terms and
 conditions as will not increase recoveries or dividends on account of
 claims to which the Agency is not subrogated.;(8)in subsection (e), as so redesignated—(A)in paragraph (8), by adding at the end the following:(H)RecordkeepingThe Agency may prescribe regulations requiring that regulated entities maintain such records
 with respect to qualified financial contracts (including market
 valuations) that the Agency determines to be necessary or appropriate
 in order to assist the Agency as receiver for a regulated entity in
 being able to exercise its rights and fulfill its obligations under this
 paragraph or paragraph (9) or (10).; (B)by striking paragraph (9) and inserting the following:(9)Transfer of qualified financial contracts(A)In generalIn making any transfer of assets or liabilities of a regulated entity in default which includes any
 qualified financial contract, the conservator or receiver for such
 regulated entity shall either—(i)transfer to 1 person, other than a person for which a conservator, receiver, trustee in bankruptcy,
 or other legal custodian has been appointed or which is otherwise the
 subject of a bankruptcy or insolvency proceeding—(I)all qualified financial contracts between any person (or any affiliate of such person) and the
 regulated entity in default;(II)all claims of such person (or any affiliate of such person) against such regulated entity under any
 such contract (other than any claim which, under the terms of any such
 contract, is subordinated to the claims of general unsecured creditors of
 such regulated entity);(III)all claims of such regulated entity against such person (or any affiliate of such person) under any
 such contract; and(IV)all property securing, or any other credit enhancement for any contract described in subclause (I),
 or any claim described in subclause (II) or (III) under any such contract;
 or(ii)transfer none of the financial contracts, claims, or property referred to under clause (i) (with
 respect to such person and any affiliate of such person).(B)Transfer to foreign bank, financial institution, or branch or agency thereofIn transferring any qualified financial contracts and related claims and property under
 subparagraph (A)(i), the Agency as receiver for a regulated entity
 shall not make such transfer to a foreign person unless, under the law
 applicable to such foreign person, to the qualified financial contracts,
 and to any netting contract, any security agreement or arrangement or
 other credit enhancement related to 1 or more qualified financial
 contracts, the contractual rights of the parties to such qualified
 financial contracts, netting contracts, security agreements or
 arrangements, or other credit enhancements, are enforceable substantially
 to the same extent as permitted under this section.; and(C)in paragraph (13)(C)(ii)—(i)by redesignating subclause (III) as subclause (IV);(ii)by striking and at the end of subclause (II); and(iii)by inserting after subclause (II) the following:(III)apply to the rights of parties to netting contracts pursuant to subtitle A of title IV of the
 Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C.
 4401 et seq.); or; (9)in subsection (g), as so redesignated—(A)by striking section or at the request of the Director and inserting title; and(B)by striking a conservator or a receiver and inserting the conservator or receiver hereunder, and any remedy against the Agency as conservator or
 receiver shall be limited to money damages determined in accordance with
 this title;(10)in subsection (j), as so redesignated—(A)in paragraph (1)(A)(ii), by striking shall and inserting may;(B)in paragraph (2)—(i)in the heading, by striking Charter and establishment and inserting Establishment of Limited-Life Regulated Entities; and(ii)by striking subparagraph (A) and inserting the following:(A)Transfer of registered statusIf the Agency is appointed as receiver for an enterprise, the limited-life regulated entity
 established under this subsection with respect to such enterprise shall,
 by operation of law and immediately upon its organization, succeed to the
 registered status of the enterprise and thereafter operate in accordance
 with, and subject to, this Act and any other provision of law to which an
 enterprise is subject, except as otherwise provided in this subsection.;(C)in paragraph (3)—(i)in the heading, by inserting and operating funds after Capital stock;(ii)by redesignating subparagraphs (A) and (B) as subparagraphs (B) and (C), respectively;(iii)by inserting prior to subparagraph (B), as so redesignated, the following:(A)Capital not requiredNotwithstanding any other provision of Federal or State law, a limited-life regulated entity may,
 if permitted by the Agency, operate without any capital or surplus as
 the Agency may in its discretion determine to be appropriate.; (iv)in subparagraph (B), as so redesignated, by striking No agency requirement and inserting No contribution by the Agency required; and(v)by adding at the end the following:(D)Operating fundsUpon the organization of a limited-life regulated entity, and thereafter, as the Agency may,
 in its discretion, determine to be necessary or advisable, the Agency
 may make available to the limited-life regulated entity, upon such terms
 and conditions and in such form and amounts as the Agency may in its
 discretion determine, funds for the operation of the limited-life
 regulated entity in lieu of capital.;(D)in paragraph (6)—(i)in the heading, by striking Winding up and inserting Winding down;(ii)by striking subparagraph (A) and inserting the following:(A)In generalSubject to subparagraph (B), the Agency shall wind down the affairs of a limited-life
 regulated entity established under this subsection—(i)with respect to a Federal Home Loan Bank, not later than 2 years after the date of its
 organization; and(ii)with respect to an enterprise, within such period of time as the Agency determines to be
 necessary and appropriate.; and(iii)in subparagraph (B), by inserting established under this subsection with respect to a Federal Home Loan Bank after limited-life regulated entity;(E)in paragraph (7)(A)(iv)—(i)in the matter preceding subclause (I), by inserting the Agency determines that such actions are necessary to after that do not comply with this clause, if; and(ii)by striking subclauses (I) and (II) and inserting the following:(I)maximize the value of the assets of the regulated entity;(II)maximize the present value return from the sale or other disposition of the assets of the regulated
 entity;(III)initiate and continue operations essential to the implementation of the limited-life regulated
 entity;(IV)minimize the amount of any loss realized upon the sale or other disposition of the assets of the
 regulated entity;(V)preserve the financial stability of the United States; and(VI)ensure that all creditors that are similarly situated under subsection (c)(1) receive not less than
 the amount provided in subsection (f)(2).; and(F)in paragraph (11)(C)—(i)in clause (i), in the matter preceding subclause (I), by striking (other than mortgages that collateralize the mortgage-backed securities issued or guaranteed by an
 enterprise); and(ii)by inserting at the end the following:(ii)HearingThe hearing required pursuant to this subparagraph shall be before a court of the United States,
 which shall have jurisdiction to conduct such hearing and to authorize the
 limited-life regulated entity to obtain secured credit under clause (i).; and(11)by striking subsection (k)(relating to charter revocation), as so designated by Public Law
 110–289.(c)Rule of constructionNothing in this Act, or any amendments made by this Act, except as may be explicitly provided for
 in this Act, or any amendment made by this Act, shall be deemed to alter
 the powers, authorities, rights, or duties that are vested in the Federal
 Housing Finance Agency or the Director thereof with respect to supervision
 and regulation of the enterprises, until such time as the Federal Housing
 Finance Agency and the position of the Director are transferred in
 accordance with title IV of this Act.604.Wind down(a)Authority of FHFA Director(1)In generalBeginning on the date of enactment of this Act and ending on the system certification date, the
 FHFA Director, in consultation with the Corporation, shall take such
 action, and may prescribe such regulations and procedures, as may be
 necessary to wind down the operations of the enterprises in an orderly
 manner that complies with the requirements of this Act and any amendments
 made by this Act.(2)LimitationNotwithstanding any authority granted to the FHFA Director under paragraph (1)—(A)the sale, exchange, license, or other disposition of any asset for value subject to the wind down
 required under this section shall be prohibited, if the Corporation—(i)in its discretion determines that such sale, exchange, license, or disposition would
 materially
 interfere with the ability of the Corporation to carry out the
 requirements of this Act; and(ii)notifies, in writing, the FHFA Director within 14 days of such determination; and(B)the Corporation may direct the conservator of the enterprises to sell, exchange, license,
 or
 otherwise dispose of any asset for value subject to the wind down required
 under this section, if the Board of Directors certifies by a majority vote
 that—(i)not completing such sale, transfer, exchange, license, or other disposition for value would be
 inconsistent with the
 transition plan approved pursuant to section 602; and(ii)such sale, transfer, exchange, license, or disposition for value would not violate the duties of
 the conservator.(b)Authority of CorporationBeginning on the system certification date, the Corporation shall take such action, and may
 prescribe
 such regulations and
 procedures, as may be necessary to wind down the operations of the
 enterprises in an orderly manner that complies with the requirements of
 this Act and any amendments made by this Act.(c)Resolution plan(1)In generalEach enterprise shall develop a resolution plan in order to facilitate an orderly transition to the
 new housing finance system authorized by this Act.(2)TimingEach resolution plan required to be developed under paragraph (1) shall be submitted to the FHFA
 Director not later than 90 days after the agency transfer date.(3)Contents of plansEach resolution plan required to be developed under paragraph (1) shall include a full description
 and valuation of the assets, liabilities, and contractual obligations of
 the enterprise, and any other information that the FHFA Director may
 require.(4)Retention of authorityNotwithstanding any provision of a resolution plan required to be developed under paragraph (1),
 the Federal Housing Finance Agency and the Corporation shall retain and
 exercise full discretion to the extent that either the Agency or the
 Corporation utilizes or relies on such a resolution plan, either in whole
 or in part, in fulfilling any duty or responsibility required by this Act.(5)Public summaryAfter reviewing each resolution plan required to be developed under paragraph (1), the Corporation
 shall make available
 to the public a summary of each such resolution plan.(6)Valuation studyAfter reviewing each resolution plan required to be developed under paragraph (1), the Corporation
 shall conduct a
 valuation study of each enterprise’s business segments, including any
 technology, business unit, legacy book, and other assets and liabilities
 that may be sold for value in a manner consistent with the purposes and
 requirements of this Act.(d)Prohibition on new business(1)Federal National Mortgage Association(A)New business prohibitedEffective on the system certification date, the Federal National Mortgage Association shall have no
 authority to conduct new business under the Federal National Mortgage
 Association Charter Act.(B)New business definedFor purposes of subparagraph (A), the term new business means any new—(i)purchase of, servicing of, or dealing in any insured or conventional mortgages by the Federal
 National Mortgage Association under section 302(b) of the Federal National
 Mortgage Association Charter Act (12 U.S.C. 1717(b));(ii)purchase of a mortgage by the Federal National Mortgage Association in its secondary mortgage
 market
 operations under section 304(a) of the Federal National Mortgage
 Association Charter Act (12 U.S.C. 1719(a));(iii)issue of an obligation of the Federal National Mortgage Association under section 304(b) of the
 Federal National Mortgage Association Charter Act (12 U.S.C. 1719(b)),
 including—(I)bonds, notes, debentures, and other similar instruments;(II)capital lease obligations;(III)obligations in respect of letters of credit, bankers acceptances, or other similar instruments;(IV)guarantees of new securities based on mortgages set aside; and(V)swap, security-based swap, derivative product, or other similar instrument;(iv)setting aside of any mortgages held by the Federal National Mortgage Association and any new issue
 and sale of securities based on the mortgages so set aside under section
 304(d) of the Federal National Mortgage Association Charter Act (12 U.S.C.
 1719(d)); and(v)issue of a subordinated obligation of the Federal National Mortgage Association under section
 304(e) of the Federal National Mortgage Association Charter Act (12 U.S.C.
 1719(e)).(C)Exclusion from new businessThe term new business shall not include any new—(i)purchase by the Federal National Mortgage Association of a non-performing mortgage from a pool of
 mortgages previously set aside by the enterprise;(ii)issue of an obligation of the Federal National Mortgage Association if, after giving effect to the
 issuance, the aggregate amount of such obligations does not exceed 120
 percent of the amount of mortgage assets permitted to be owned by the
 enterprise under section 605;(iii)setting aside of mortgages previously set aside by the Federal National Mortgage Association, or
 any new issue and sale of securities based on the mortgages so previously
 set aside, to refund or replace an outstanding issue of securities based
 on mortgages previously set aside, if the face amount of the refunding or
 replacing mortgage-backed securities does not exceed the face amount of
 the mortgage-backed securities being refunded or replaced;(iv)transfer of guarantees of mortgage-backed securities guaranteed by the Federal National Mortgage
 Association if the mortgage loans collateralizing such securities are
 refinanced, regardless of the value of the underlying
 collateral and the homeowner’s current employment status and income; or(v)entry into any swap, security-based swap, or other similar instrument, or purchase of sale of any
 derivative product, or other similar instrument, to facilitate the orderly
 wind down of the Federal National Mortgage Association and appropriate
 loss mitigation on any outstanding guarantees of the Federal National
 Mortgage Association under section 605.(D)New business prohibition not to affect outstanding enterprise debt or guaranteesNothing in subparagraph (A) shall adversely affect the rights and obligations of any holders of—(i)outstanding debt obligations of the Federal National Mortgage Association, including any—(I)bonds, notes, debentures, or other similar instruments;(II)capital lease obligations;(III)obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or(IV)swap, security-based swap, derivative product, or other similar instrument; or(ii)mortgage-backed securities guaranteed by the Federal National Mortgage Association.(2)Federal Home Loan Mortgage Corporation(A)New business prohibitedEffective on the system certification date, the Federal Home Loan Mortgage Corporation shall have
 no authority to conduct new business under the Federal Home Loan Mortgage
 Corporation Act.(B)New business definedFor purposes of subparagraph (A), the term new business means any new—(i)purchase of, servicing of, or dealing in any insured or conventional mortgages by the Federal Home
 Loan Mortgage Corporation under section 305(a) of the Federal Home Loan
 Mortgage Corporation Act (12 U.S.C. 1454(a));(ii)issue of an obligation of the Federal Home Loan Mortgage Corporation under section 306(a) of the
 Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455(a)), including—(I)bonds, notes, debentures, and other similar instruments;(II)capital lease obligations;(III)obligations in respect of letters of credit, bankers acceptances, or other similar instruments;(IV)guarantees of new securities based on mortgages set aside; and(V)swap, security-based swap, derivative product, or other similar instrument;(iii)issue of mortgage-backed securities under the Federal Home Loan Mortgage Corporation Act; and(iv)issue of a subordinated obligation of the Federal Home Loan Mortgage Corporation under the Federal
 Home Loan Mortgage Corporation Act.(C)Exclusion from new businessThe term new business shall not include any new—(i)purchase by the Federal Home Loan Mortgage Corporation of a non-performing mortgage from a pool of
 mortgages previously set aside by the enterprise;(ii)issue of an obligation of the Federal Home Loan Mortgage Corporation if, after giving effect to the
 issuance, the aggregate amount of such obligations does not exceed 120
 percent of the amount of mortgage assets permitted to be owned by the
 enterprise under section 605;(iii)issue of mortgage-backed securities, to refund or replace an outstanding issue of mortgage-backed
 securities, if the face amount of the refunding or replacing
 mortgage-backed securities does not exceed the face amount of the
 mortgage-backed securities being refunded or replaced;(iv)transfer of guarantees of mortgage-backed securities guaranteed by the Federal Home Loan Mortgage
 Corporation if the mortgage loans collateralizing such securities are
 refinanced, regardless of the value of the underlying
 collateral and the homeowner’s current employment status and income; or(v)entry into any swap, security-based swap, or other similar instrument, or purchase of sale of any
 derivative product, or other similar instrument, to facilitate the orderly
 wind down of the Federal Home Loan Mortgage Corporation and appropriate
 loss mitigation on any outstanding guarantees of the Federal Home Loan
 Mortgage Corporation under section 605.(D)New business prohibition not to affect outstanding enterprise debt or guaranteesNothing in subparagraph (A) shall adversely affect the rights and obligations of any holders of—(i)outstanding debt obligations of the Federal Home Loan Mortgage Corporation, including any—(I)bonds, notes, debentures, or other similar instruments;(II)capital lease obligations;(III)obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or(IV)swap, security-based swap, derivative product, or other similar instrument; or(ii)mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation.(3)Rule of constructionThe prohibition on new business by the Federal National Mortgage Association and the Federal Home
 Loan Mortgage Corporation set forth in paragraphs (1) and (2) shall not
 prohibit, nor be construed to prohibit, the
 Corporation from
 managing such entity.(4)Existing guarantee obligations(A)Explicit guaranteeThe full faith and credit of the United States is pledged to the payment of all amounts which may
 be required to be paid under any obligation described under paragraphs (1)
 and (2), including any obligation issued on or after the system
 certification date to refund or replace an obligation that was outstanding
 on the day before the system certification date.(B)Loan eligibilityThe enterprises shall include as eligible loans for the purposes of refinancing all current loans
 that qualify as eligible mortgage loans and meet those underwriting
 requirements
 for eligibility for same servicer refinancing, except that the enterprises
 may not disqualify or impose varying rules based on loan-to-value,
 combined loan-to-value, employment status, or income with regard to
 refinancing mortgage loans that collateralize mortgage-backed securities
 issued by an enterprise prior to the system certification date.(C)Continued dividend paymentsNotwithstanding the provisions of this section or any other provision of law, provision 2(a)
 (relating to Dividend Payment Dates and Dividend Periods) and provision
 2(c) (relating to Dividend Rates and Dividend Amount) of the Senior
 Preferred Stock Purchase Agreement, or any provision of any certificate in
 connection with such Agreement creating or designating the terms, powers,
 preferences, privileges, limitations, or any other conditions of the
 Variable Liquidation Preference Senior Preferred Stock of an enterprise
 issued pursuant to such Agreement—(i)shall not be amended, restated, or otherwise changed to reduce the rate or amount of dividends in
 effect pursuant to such Agreement as of the Third Amendment to such
 Agreement dated August 17, 2012, except that any amendment to such
 Agreement shall be permitted if it facilitates the sale of assets of the
 enterprises to
 facilitate compliance with this title; and(ii)shall remain in effect until the guarantee obligations described under paragraphs (1) and (2) are
 fully extinguished.(D)ApplicabilityNotwithstanding the provisions of this section, all guarantee fee amounts derived from the mortgage
 guarantee business of the enterprises in existence as of the system
 certification date, after satisfying the fee amounts required to be
 collected by section 1327 of the Safety and Soundness Act (12 U.S.C.
 4547), shall be subject to the terms of the Senior Preferred Stock
 Purchase Agreement.(e)Charters revokedEffective upon the date the guarantee obligations under subsection (d)(4)(A) are fully
 extinguished:(1)The Federal National Mortgage
 Association Charter Act is repealed, except as the provisions of such Act
 relate to the establishment, purposes, powers, authorities, duties,
 supervision, administration, and management of the Government National
 Mortgage Association.(2)The Federal Home Loan Mortgage Corporation Act is repealed.(f)Authority to insure outstanding mortgage-backed securities; mortgage-backed securities of the
 enterprises(1)Authority to insure mortgage-backed securities; authority to develop enterprise mortgage-backed
 securitiesAfter the agency transfer date, and subject to such procedures, standards, terms, and conditions as
 may be adopted by the Corporation under paragraph (2), the Corporation
 may—(A)upon application and in exchange for a fee determined by the Corporation, provide insurance on
 outstanding mortgage-backed securities issued by the enterprises; and(B)facilitate, including through the operations of the enterprises or the utilization of the Platform,
 the—(i)exchange of mortgage-backed securities issued by either enterprise for covered securities;(ii)exchange of mortgage-backed securities issued by 1 enterprise for those of the other enterprise;(iii)issuance of mortgage-backed securities by both enterprises through a single issuer; and(iv)issuance of real estate mortgage investment conduit securities, consisting of mortgage-backed
 securities issued by the enterprises.(2)Development of procedures, standards, terms, and conditionsThe Corporation shall develop and adopt procedures, standards, terms, and conditions to enable the
 Corporation and each of the enterprises, as applicable, to implement each
 of the activities described in paragraph (1).(3)Required procedures, standards, terms, and conditionsIn the development and adoption of the procedures, standards, terms, and conditions required under
 paragraph (2), the Corporation shall consider the effect of each activity
 with respect to the following:(A)Lender access to the secondary mortgage market.(B)The liquidity and trading price of existing enterprise mortgage-backed securities.(C)The ability of market participants and the enterprises to issue new mortgage-backed
 securities.(D)The cost to the enterprises or the Corporation to exchange, restructure, or insure mortgage-backed
 securities.(g)Report to Congress(1)In generalPrior to the agency transfer date, the FHFA Director shall submit a study considering the
 feasibility of activities described in subsection (f)(1) to—(A)the Committee on Banking, Housing, and Urban Affairs of the Senate;(B)the Committee on Financial Services of the House of Representatives; and(C)the Corporation.(2)UpdatesFollowing the agency transfer date, the Corporation shall provide updates on the activities
 described in subsection (f)(1) in the transition plan (and in each annual
 update
 thereof) required under section 602.(h)Division of assets and liabilities; authority to establish holding companies, trusts, and
 subsidiaries(1)In generalThe action and procedures required under subsection (a)—(A)shall include the establishment and execution of plans to manage assets toward the liquidation of
 liabilities and provide for an equitable division, distribution, and
 liquidation of the assets and liabilities of an enterprise, including any
 infrastructure, property, including intellectual property, historic data,
 platforms, or
 any other thing or object of value, provided such plan complies with the
 requirements of this Act and any amendments made by this Act;(B)may provide for the establishment of—(i)a holding corporation organized under the laws of any State of the United States or the District of
 Columbia for the purpose of winding down an enterprise or both
 enterprises;(ii)1 or more trusts to which to transfer—(I)outstanding debt obligations of an enterprise or both enterprises; or(II)outstanding mortgages held for the purpose of collateralizing mortgage-backed securities guaranteed
 by an enterprise or both enterprises; and(iii)1 or more subsidiaries or joint ventures with private entities for the purposes of facilitating
 an orderly wind down of one enterprise or both enterprises and the
 transition to the new housing
 finance system;(C)may include the sale as a going concern of any holding company, trust, subsidiary, or joint venture
 with a private entity established by an enterprise under this subsection;
 and(D)may provide that any holding company, trust, subsidiary, or joint venture sold as a going concern
 may be utilized to facilitate the formation of—(i)a small lender mutual under section 315;(ii)an approved guarantor;(iii)an approved multifamily guarantor;(iv)an approved aggregator; or(v)the Securitization Platform.(2)Rule of constructionAny holding company, trust, subsidiary, or joint venture established by an enterprise before or
 after the agency transfer date is eligible to be sold by the Federal
 Housing Finance Agency as a going concern for the purposes described in
 this section.(i)Recoupment by senior preferred shareholders(1)Maximum return to senior preferred shareholdersThe wind down of each enterprise required under this section shall be managed by the Corporation
 to obtain resolutions that maximize the return for the senior preferred
 shareholders, to the extent that such resolutions—(A)are consistent with the goals of facilitating—(i)a deep, liquid, and resilient secondary mortgage market for single-family and multifamily
 mortgage-backed
 securities in order to support access to mortgage credit in the
 primary mortgage market; and(ii)an orderly transition from housing finance markets facilitated by the enterprises to housing
 finance markets facilitated by the Corporation with minimum disruption in
 the availability of mortgage credit;(B)are consistent with applicable Federal and State law;(C)comply with the requirements of this Act and the amendments made by this Act; and(D)protect the taxpayer from having to absorb losses incurred in the secondary mortgage market.(2)Sale of certain assets as a going concern(A)Sale for valueIf the Federal Housing Finance Agency makes the determinations in
 subparagraph (B), the Federal Housing Finance Agency may conduct a sale,
 exchange, license, or other disposition for value of any line
 of business of an enterprise, or any function, activity, asset,
 intellectual property, or service of an
 enterprise, as a going concern.(B)Required determinationsA sale under subparagraph (A) is permitted if the Federal Housing Finance Agency determines that
 the sale, exchange, license, or other disposition for value—(i)is consistent with the goal of an orderly transition from housing finance markets facilitated by
 the enterprises to housing finance markets facilitated by the
 Corporation with minimum disruption in the availability of mortgage
 credit;(ii)does not impede or otherwise interfere with the ability of the Federal Housing
 Finance Agency or the Corporation to carry out the
 functions and requirements of this Act;(iii)does not transfer, convey, or authorize any guarantee or Federal support, assistance, or backing,
 implicit or explicit, related to any such business line, function,
 activity, or service;(iv)will maximize the return for the senior preferred shareholders as required under paragraph (1); and(v)would not result in an uncompetitive primary or secondary mortgage market or otherwise limit
 competitiveness in the primary or secondary mortgage markets.(C)Sale of historic dataThe Federal Housing Finance Agency shall conduct a sale for value of each enterprise’s historic
 data, including loan-level historical performance data. In conducting such
 sale, the Federal Housing Finance Agency may require that—(i)the purchaser of the historic data is the Corporation or the Securitization Platform;(ii)the purchaser of the historic data makes the historic data available to the public in a searchable
 and easily accessible format as promptly as practicable; and(iii)the purchaser of the historic data takes appropriate steps to ensure the privacy of consumers,
 minimizes the collection and storage of personally identifiable financial
 information, and considers statutes, rules, and regulations relating to
 the privacy of consumer credit information and personally identifiable
 financial information.605.Portfolio reduction(a)Graduated reduction(1)In generalOn December 31 of the year after the date of enactment of this Act, and on December 31 of each year
 thereafter until each enterprise reaches the allowable size of the
 retained single-family portfolio specified
 in paragraph (2), each enterprise
 shall not own single-family mortgage loan assets in excess of 85 percent
 of the aggregate amount of the single-family mortgage loan assets that the
 enterprise was permitted to own as of December 31 of the immediately
 preceding calendar year.(2)Retained single-family portfolio to facilitate orderly wind downNot later than the date on which the system certification date occurs, the Corporation shall
 establish an allowable amount of enterprise-owned single-family mortgage
 loan assets in an amount equal to the amount necessary to facilitate—(A)the orderly wind down of the enterprises; and(B)appropriate loss mitigation on any legacy guarantees of the enterprises.(b)Mortgage loan assets definedFor purposes of this section, the term mortgage loan assets means, with respect to an enterprise, assets of such enterprise consisting of mortgage loans,
 mortgage-related securities, participation certificates, mortgage-backed
 commercial paper, obligations of real estate mortgage loan investment
 conduits, and similar assets, in each case to the extent that such assets
 would appear on the balance sheet of such enterprise in accordance with
 generally accepted accounting principles in effect in the United States as
 of September 7, 2008 (as set forth in the opinions and pronouncements of
 the Accounting Principles Board and the American Institute of Certified
 Public Accountants and statements and pronouncements of the Financial
 Accounting Standards Board from time to time, and without giving any
 effect to any change that may be made after September 7, 2008, in respect
 of Statement of Financial Accounting Standards No. 140 or any similar
 accounting standard).606.Oversight of transition of the housing finance system(a)TestimonyBeginning on the agency transfer date and ending on the system certification date, the
 Chairperson shall, on an annual basis, appear before the Committee on
 Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives to provide testimony on
 the progress made in carrying out the requirements of this title.(b)Inspector General report on transitionBeginning on the agency transfer date and ending on the system certification date, the
 Inspector General of the Federal Mortgage Insurance Corporation shall, on
 an annual basis—(1)submit a report to the Corporation and the Committee on Banking, Housing, and Urban Affairs of the
 Senate and the Committee on Financial Services of the House of
 Representatives—(A)on the status of the transition to the new housing finance system authorized by this Act;(B)that includes recommendations to facilitate an orderly transition to the new housing finance system
 authorized by this Act; and(C)on the impact of various actions required by this Act on borrowers and small mortgage lenders; and(2)appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee
 on Financial Services of the House of Representatives to provide testimony
 on the report required under paragraph (1).(c)GAO report on transition(1)In generalNot later than 18 months after the system certification date, the Comptroller General of the United
 States shall conduct a study and
 submit a report to the Committee on Banking, Housing, and Urban
 Affairs of the Senate and the Committee on Financial Services of the House
 of Representatives reviewing the
 transition required by this Act.(2)Contents of studyIn conducting the study required under paragraph (1), the Comptroller General shall review—(A)all property, including intellectual property, of the enterprises that may have been sold,
 transferred, or licensed for value pursuant to this title or any amendment
 made by this title;(B)the number and market share of each type of approved
 entity; and(C)the amount of any taxpayer repayment.607.Authority to establish provisional standards(a)Provisional standards(1)In generalNotwithstanding any standard required under subtitle B of title III or section 703, the Corporation
 may establish
 provisional standards
 for the approval of approved entities in order to ensure the sufficient
 participation of financially sound entities in the housing finance system.(2)Period of effectiveness during transitionThe Corporation is authorized to establish provisional standards under paragraph (1) prior to the
 system certification date and such provisional standards shall—(A)be published in the Federal Register
 for notice and comment; and(B)remain in effect until the Corporation adopts
 and publishes final
 standards for the approval of approved entities pursuant to subtitle B of
 title III or section 703.(3)Period of effectiveness during unusual and exigent circumstancesThe Corporation is authorized to establish provisional standards under paragraph (1) during periods
 when the authority of the
 Corporation under section 305 is exercised and such provisional standards
 shall—(A)be published in the
 Federal Register; and(B)remain in effect until the final date of the timeline
 established by the Corporation pursuant to section 305(h)(1).(4)Rule of constructionNothing in paragraph (2) shall be construed to allow the Corporation to delay or otherwise not
 implement subsection (c) in the required timeframe.(b)Oversight of approved entitiesDuring any period in which a provisional standard is in effect pursuant to subsection (a), the
 Corporation shall maintain all oversight and enforcement authorities
 with regard to approved entities in
 accordance with the requirements and authorities of subtitles B and C of
 title
 III and section 703.(c)Phase-in of capital standards for approved guarantors(1)In generalThe requirement under section 311(g)(1)(A) shall take effect on the date that is 8 years after the
 date that the Corporation approves the first approved guarantor under this
 section.(2)Phase-inBeginning on the date that the Corporation approves the first approved guarantor under this section
 and ending on the date set forth under paragraph
 (1), the Corporation shall—(A)require an approved guarantor to maintain an appropriate level of capital necessary to help ensure
 an orderly transition pursuant to this title; and(B)increase annually, in equal increments, the required amount of capital to be held by the approved
 guarantor.(3)ApplicabilityEach capital level required to be held by an approved guarantor under this section, including each
 annual increase pursuant to paragraph (2)(B), shall only be applicable
 with respect to new business being guaranteed by an approved guarantor on
 and after the date each capital level becomes effective.(d)Phase-in of capital standards for multifamily approved guarantors(1)In generalThe requirement under section 703(h)(1)(A) shall take effect on the date that is 8 years after the
 date that the Corporation approves the first multifamily approved
 guarantor under this section.(2)Phase-inBeginning on the date that the Corporation approves the first approved multifamily guarantor under
 this section and ending on the date set forth under paragraph (1), the
 Corporation shall—(A)require an approved multifamily guarantor to maintain an appropriate level of capital necessary to
 help ensure an orderly transition pursuant to this title; and(B)increase annually, in equal increments, the required amount of capital to be held by the approved
 multifamily guarantor.(3)ApplicabilityEach capital level required to be held by an approved multifamily guarantor under this section,
 including each annual increase pursuant to paragraph (2)(B), shall only be
 applicable with respect to new business being guaranteed by an approved
 multifamily guarantor on and after the date each capital level becomes
 effective.608.Initial fund level for the Mortgage Insurance Fund(a)Fund amount on system certification dateThe Corporation shall endeavor to ensure that the Mortgage Insurance Fund established under section
 303 attains a reserve ratio of 0.75 percent of the sum of the outstanding
 principal balance of the covered securities for which insurance is
 projected to be provided under this Act for the 5-year period beginning on
 the system certification date.(b)Report to Congress on projectionThe projection required under subsection (a) shall be—(1)determined by the Corporation; and(2)reported to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on
 Financial Services of the House of Representatives.(c)AssessmentsPursuant to the authorities granted to the Corporation under section 1316(i) of the Safety and
 Soundness Act, as added by section 405, the amount of funds required to be
 held by the Mortgage Insurance Fund under subsection (a) shall be
 acquired through assessments on the enterprises. The assessments required
 under this subsection shall be in effect for the period beginning on the
 date of enactment of this Act and ending on the system certification date.
 The assessments required under this subsection shall be deposited in the
 Mortgage Insurance Fund.609.GAO report on full privatization of secondary mortgage market(a)GAO reportNot later than 8 years after the date of enactment of this Act, the Comptroller General of the
 United States shall submit a report to the Committee on Banking, Housing,
 and Urban Affairs of the Senate and the Committee on Financial Services of
 the House of Representatives on the feasibility of transitioning to and
 creating a fully privatized secondary mortgage market, including
 recommendations on how to best carry out any displacement of the insurance
 model established under this Act, and an assessment of the cost of
 mortgage credit and the impact on the economy if the secondary mortgage
 market is fully privatized.(b)Corporation planNot later than 6 months after the date on which the report required under subsection (a) is
 submitted, the
 Corporation shall submit to the Committee on Banking, Housing, and Urban
 Affairs of the Senate and the Committee on Financial Services of the House
 of Representatives a description of the legislative, administrative, and
 regulatory actions necessary to implement the recommendations of the
 report.VIIMultifamily701.Establishment of multifamily subsidiaries(a)Formation and governance of multifamily subsidiaries(1)Federal National Mortgage Association(A)Multifamily subsidiary planThe FHFA Director, in consultation with the Secretary of the Treasury, shall direct the Federal
 National Mortgage Association to develop a plan, not later than 180 days
 after the date of enactment of this Act, to establish a multifamily
 subsidiary for purposes of expeditiously meeting the multifamily market
 minimum criteria required under
 section 601.(B)Establishment of multifamily subsidiaryPursuant to section 604, the Federal Housing Finance Agency shall direct the Federal National
 Mortgage Association to
 establish a multifamily
 subsidiary not later than 1 year after the date of enactment of this Act.(2)Federal Home Loan Mortgage Corporation(A)Multifamily subsidiary planThe FHFA Director, in consultation with the Secretary of the Treasury, shall direct the Federal
 Home Loan Mortgage Corporation to develop a plan, not later than 180 days
 after the date of enactment of this Act, to establish a multifamily
 subsidiary for purposes of expeditiously meeting the multifamily market
 minimum criteria required under
 section 601.(B)Establishment of multifamily subsidiaryPursuant to section 604, the Federal Housing Finance Agency shall direct the Federal Home Loan
 Mortgage Corporation to
 establish a
 multifamily subsidiary not later than 1 year after the date of enactment
 of this Act.(b)Transfer of functions(1)Fannie Mae multifamily subsidiary(A)In generalNotwithstanding the provisions under title VI or any other provision of law, effective on the date
 on which the multifamily subsidiary is
 established under subsection (a)(1)(B), all employees, functions,
 activities, infrastructure, property, including the Delegated Underwriting
 and Servicing Lender Program and other intellectual property, platforms,
 technology, or any other object or service of the Federal National
 Mortgage Association necessary to the support, maintenance, and operation
 of the multifamily business of the Federal National Mortgage Association
 shall be transferred and contributed, without cost, to the multifamily
 subsidiary.(B)Capital contributionIn connection with the transfer required under subparagraph (A), the Federal National Mortgage
 Association shall contribute, in any form or manner the Federal Housing
 Finance Agency may
 determine, subject to the approval right of the Secretary of the Treasury
 in the Senior Preferred Stock Purchase Agreement, any capital necessary to
 ensure that the multifamily subsidiary
 established under subsection (a)(1)(B) has, in the determination of the
 FHFA Director, sufficient capital to carry out its multifamily business,
 including the ability to obtain warehouse lines of credit.(C)Ensuring continuation of ongoing operation of multifamily businessIn carrying out the multifamily business transferred pursuant to subparagraph (A), the multifamily
 subsidiary established under subsection (a)(1)(B) shall ensure that any
 such business continues to operate, as applicable, consistent with—(i)the Delegated Underwriting and Servicing Lender Program established by the Federal National
 Mortgage Association;(ii)any other programs, activities, and contractual agreements of the enterprises that support the
 enterprises' provision of liquidity to the multifamily housing market; and(iii)the provisions of this title.(2)Freddie Mac multifamily subsidiary(A)In generalNotwithstanding the provisions under title VI or any other provision of law, effective on the date
 on which the multifamily subsidiary is
 established under subsection (a)(2)(B), all employees, functions,
 activities, infrastructure, property, including the K Series Structured
 Pass-Through Certificates originated and offered under the Program Plus
 Lender Program
 and other
 intellectual property, platforms, technology, or any other object or
 service of the Federal Home Loan Mortgage Corporation necessary to the
 support, maintenance, and operation of the multifamily business of the
 Federal Home Loan Mortgage Corporation shall be transferred and
 contributed, without cost, to the multifamily subsidiary.(B)Capital contributionIn connection with the transfer required under subparagraph (A), the Federal Home Loan Mortgage
 Corporation shall contribute, in any form or manner the Federal Housing
 Finance Agency may
 determine, subject to the approval right of the Secretary of the Treasury
 in the Senior Preferred Stock Purchase Agreement, any capital necessary to
 ensure that the multifamily subsidiary
 established under subsection (a)(2)(B) has, in the determination of the
 FHFA Director, sufficient capital to carry out its multifamily business,
 including the ability to obtain warehouse lines of credit.(C)Ensuring continuation of ongoing operation of multifamily businessIn carrying out the multifamily business transferred pursuant to subparagraph (A), the multifamily
 subsidiary established under subsection (a)(2)(B) shall ensure that any
 such business continues to operate, as applicable, consistent with—(i)the K Series Structured Pass-Through Certificates originated and
 offered under the Program Plus Lender Program established by the Federal
 Home Loan Mortgage Corporation;(ii)any other programs, activities, and contractual agreements of the enterprises that support the
 enterprises' provision of liquidity to the multifamily housing market; and(iii)the provisions of this title.(c)Multifamily subsidiaries(1)In generalThe multifamily subsidiaries established by the Federal National Mortgage Association and the
 Federal Home Loan Mortgage Corporation under subsection (a) may retain a
 limited multifamily mortgage loan portfolio to—(A)aggregate mortgage loans for pooled securities executions;(B)implement pilot mortgage loan programs and other risk-sharing transactions and product modification
 testing;(C)engage in the financing of properties with rent-regulatory restrictions, off-campus student
 housing, and senior and assisted living developments; and(D)perform additional activities as may be established by the Corporation for the purpose of
 facilitating the continuation of existing multifamily activities.(2)Portfolio reduction applicabilityFor purposes of expeditiously meeting the multifamily market minimum criteria required under
 section 601, the multifamily subsidiaries established under subsection (a)
 shall not be subject to the
 portfolio reduction required under section 605.702.Disposition of multifamily businesses(a)Authority to manage disposition of multifamily businessesNotwithstanding any provision of title VI or any other provision of law, the Federal Housing
 Finance Agency may, on or
 before the system certification date,
 manage the sale, transfer, or disposition for value of property, including
 intellectual property, technology, platforms, and legacy systems,
 infrastructure and processes of an enterprise relating to the operation
 and maintenance of the multifamily business of an enterprise.(b)Required establishment of well-functioning multifamily covered security marketIn exercising the authority in subsection (a), the Federal Housing Finance Agency shall manage any
 disposition of the
 multifamily business of an enterprise in a manner consistent with—(1)the establishment of a well-functioning multifamily covered security market;(2)the provision of broad access to multifamily financing; and(3)facilitating competition in the multifamily covered security market by—(A)providing open access to performance information on the legacy multifamily business of an
 enterprise;(B)providing for reasonable licensing of the multifamily proprietary systems of an enterprise; and(C)setting market share limitations, fees, or additional capital standards on multifamily business
 assets that were sold, transferred, or disposed.703.Approval and supervision of multifamily guarantors(a)Standards for approval of multifamily guarantors(1)In generalThe Corporation shall develop, adopt, and publish standards for the approval by the Corporation of
 multifamily guarantors to—(A)issue multifamily covered securities; and(B)guarantee the timely payment of principal and interest on multifamily covered securities
 collateralized by eligible
 multifamily mortgage loans and insured by the Corporation.(2)Required standardsThe standards required under paragraph (1) shall include—(A)the financial history and condition of the multifamily guarantor;(B)a requirement that the multifamily guarantor maintain capital levels as defined by the Corporation,
 pursuant to subsection (h);(C)the capability of the management of the multifamily guarantor;(D)the general character and fitness of the officers and directors of the multifamily guarantor,
 including the compliance history of the multifamily guarantor’s officers
 and directors with Federal and State laws and the rules and regulations
 promulgated by self-regulatory organizations (as defined in section
 3(a)(26) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(26)), as
 applicable;(E)the risk presented by the multifamily guarantor to the Mortgage Insurance Fund;(F)the adequacy of insurance and fidelity coverage of the multifamily guarantor;(G)the ability of the multifamily guarantor to—(i)ensure that eligible multifamily mortgage loans that collateralize a multifamily covered security
 insured under this Act are originated in compliance with the requirements
 of this Act;(ii)oversee multifamily servicers and specialty servicers conducting servicing activities on eligible
 multifamily mortgage loans, which may be governed under the terms of
 seller-servicer guides in effect at either of the enterprises on the date
 of enactment of this Act; and(iii)oversee counterparties in credit risk-sharing transactions;(H)the capacity of the multifamily guarantor to take the first loss position, pari passu position, or
 transfer investment
 risk and credit risk to private market holders;(I)that the multifamily guarantor has the capacity to guarantee eligible multifamily mortgage loans in
 a manner that furthers the purposes of the Corporation as described in
 section 201(b)(5);(J)a requirement that the multifamily guarantor submit audited financial statements to the
 Corporation;(K)that the multifamily guarantor does not originate eligible multifamily mortgage loans and is not an
 affiliate of a person that actively engages in the business of originating
 eligible multifamily mortgage loans; and(L)a requirement that the multifamily guarantor has the capacity to meet the requirement of section
 704.(3)Consultation and coordinationTo promote consistency and minimize regulatory conflict, the Corporation shall consult and
 coordinate with appropriate Federal and State regulators and officials
 when developing standards pursuant to this subsection.(b)Application and approval(1)Application process(A)In generalThe Corporation shall establish an application process, in such form and manner and requiring such
 information as the Corporation may require, for the approval of
 a multifamily guarantor under this section.(B)Application reviewThe Corporation shall establish internal timelines for its processing of an application under this
 section, including timelines for any action to approve or to deny an
 application under this section.(C)Prohibition on control by insured depository institutions or affiliates of insured depository
 institutions(i)In generalIt shall be unlawful for an insured depository institution or an affiliate of an insured depository
 institution to control an approved multifamily guarantor.(ii)Rule of construction regarding controlFor purposes of this subparagraph, any insured depository institution or affiliate of an insured
 depository institution has control over an approved multifamily guarantor
 if the company directly or indirectly or acting through 1 or more other
 persons owns, controls, or has power to vote 10 percent or more of any
 class of voting shares of the approved multifamily guarantor.(D)Expedited application processThe Corporation may establish an expedited application process for an applicant applying to become
 an
 approved multifamily guarantor, provided that any such applicant—(i)proposes to use a credit risk-sharing mechanism approved under subsection (c); and(ii)otherwise meets the requirements of this section.(2)ApprovalThe Corporation may approve any application made pursuant to paragraph (1), provided the
 multifamily guarantor meets the standards established under subsection
 (a).(3)DenialThe Corporation shall have the authority to deny any application made pursuant to paragraph (1) if
 an officer or director of the multifamily guarantor has, at any time prior
 to the date of the approval of such application, been—(A)subject to a statutory disqualification pursuant to section 3(a)(39) of the Securities Exchange Act
 of 1934 (15 U.S.C. 78c(a)(39)); or(B)suspended, removed, or prohibited from participation pursuant to section 8(g) of the Federal
 Deposit Insurance Act (12 U.S.C. 1818(g)), prohibited from certain action
 pursuant to paragraphs (6) or (7) of section 8(e) of the Federal Deposit
 Insurance Act (12 U.S.C. 1818(e)), subject to an action resulting in a
 written agreement or other written statement under section 8(u)(1) of the
 Federal Deposit Insurance Act (12 U.S.C. 1818(u)(1)), for which a
 violation may be enforced by an appropriate Federal banking agency, or
 subject to any final order issued with respect to any administrative
 enforcement proceeding initiated by such agency under section 8 of the
 Federal Deposit Insurance Act (12 U.S.C. 1818).(4)Notice and publicationThe Corporation shall—(A)provide prompt notice to a multifamily guarantor of the approval or denial of any application of
 the multifamily guarantor to become an approved multifamily guarantor
 under this section;(B)publish a notice in the Federal Register upon approval of any multifamily guarantor; and(C)maintain an updated list of approved multifamily guarantors on the website of the Corporation.(c)Credit risk-sharing mechanisms(1)Consideration and approvalThe Corporation shall—(A)consider and approve credit risk-sharing mechanisms that may be employed by an approved multifamily
 guarantor to manage the credit risk related to guarantees provided for
 multifamily covered securities; and(B)approve any credit risk-sharing mechanism undertaken by an enterprise as of the date of enactment
 of this Act, including—(i)the Delegated Underwriting and Servicing Lender Program established by the Federal National
 Mortgage Association;(ii)the K Series Structured Pass-Through Certificates originated and
 offered under the Program Plus Lender Program established by the Federal
 Home Loan Mortgage Corporation;(iii)any other program, activity, or contractual agreement of an enterprise that supports the
 enterprise's provision of liquidity to the multifamily housing market; and(iv)any credit risk-sharing mechanism based on the mechanisms described in clause (i), (ii), or (iii),
 with modifications approved by the Corporation.(2)Rule of ConstructionNothing in paragraph (1) shall be construed to—(A)prevent private market holders from taking a first loss position on multifamily covered
 securities guaranteed by an approved multifamily guarantor; or(B)limit an approved multifamily
 guarantor from engaging in other forms of risk-sharing using mechanisms
 that have not been considered or approved by the Corporation.(3)ReportEach report required by section 302(b)(5) shall include a description of each credit
 risk-sharing mechanism approved by the Corporation pursuant to this
 subsection.(4)Notice and publicationThe Corporation shall—(A)provide prompt notice to any person seeking approval for a credit risk-sharing mechanism of the
 approval or denial of that credit risk-sharing mechanism under this
 subsection; and(B)make available updated information regarding approved credit
 risk-sharing mechanisms on the website of the Corporation.(5)Applicability of the Commodity Exchange Act and Securities Act of 1933(A)Exemption from the Commodity Exchange Act; prior consultation required(i)ExemptionNo counterparty that enters into a swap, as that term is defined in section 1a of the Commodity
 Exchange Act (7 U.S.C. 1a), for purposes of structuring any credit
 risk-sharing mechanism that is approved by the Corporation pursuant to
 this section, which credit risk-sharing mechanism is designed to be used
 or is used by a private market holder to assume losses and to reduce the
 specific risks arising from losses realized under such credit risk-sharing
 mechanism associated with any multifamily covered security insured in
 accordance
 with section 303 or section 305, shall be deemed, by reason of such swap
 transaction, to be a commodity pool, as that term is defined in section 1a
 of the Commodity Exchange Act (7 U.S.C. 1a).(ii)Prior consultation requiredBefore approving any credit risk-sharing mechanism that would be exempt from the Commodity Exchange
 Act pursuant to subparagraph (A), the Corporation shall consult with the
 Commodity Futures Trading Commission.(B)Exemption from section 27B of the Securities Act of 1933; prior consultation required(i)ExemptionAny credit risk-sharing mechanism that is approved by the Corporation pursuant to this section,
 which credit risk-sharing mechanism is designed to be used or is used by a
 private market holder to assume losses and to reduce the
 specific risks arising from losses realized under such credit risk-sharing
 mechanism associated with any
 multifamily covered security insured in accordance with section 303 or
 section 305, shall be exempt from section 27B of the Securities Act of
 1933 (15 U.S.C. 77z-2a).(ii)Prior consultation requiredBefore approving any credit risk-sharing mechanism that would be exempt from section 27B of the
 Securities Act of 1933 pursuant to subparagraph (A), the Corporation shall
 consult with the Securities and Exchange Commission.(d)Requirement to maintain approval status(1)Authority to issue orderIf the Corporation determines that an approved multifamily guarantor approved under this section no
 longer meets the standards for such approval or violates a requirement
 under this Act, including any standard, regulation, or order
 promulgated in accordance with this Act, the Corporation may—(A)suspend or revoke the approved status of the approved multifamily guarantor; or(B)take any other action with respect to such approved multifamily guarantor as may be authorized
 under this Act.(2)Rule of constructionThe suspension or revocation of the approved status of an approved multifamily guarantor under this
 section shall have no effect on the status as a multifamily
 covered security of any multifamily covered security collateralized by
 eligible
 multifamily mortgage loans with which the approved multifamily guarantor
 contracted prior to the suspension or revocation.(3)PublicationThe Corporation shall—(A)promptly publish a notice in the Federal Register upon suspension or revocation of the approval of
 any approved multifamily guarantor; and(B)maintain an updated list of such approved multifamily guarantors on the website of the Corporation.(4)DefinitionIn this subsection, the term violate includes any action, taken alone or with others, for or toward causing, bringing about,
 participating in, counseling, or aiding or abetting, a violation of the
 requirements under this Act.(e)Prudential standards for supervisionThe Corporation shall prescribe prudential standards for approved multifamily guarantors in order
 to—(1)ensure—(A)the safety and soundness of approved multifamily guarantors; and(B)the maintenance of approval standards by approved multifamily guarantors; and(2)minimize the risk presented to the Mortgage Insurance Fund.(f)Reports and examinationsFor purposes of determining whether an approved multifamily guarantor is fulfilling the
 requirements under this Act, the Corporation shall have the authority to
 require reports from and examine an approved multifamily guarantor, in the
 same manner and to the same extent as the Federal Deposit Insurance
 Corporation has with respect to an insured depository institution under
 the
 provisions of subsection (a) of section 9 of the Federal Deposit Insurance
 Act (12 U.S.C. 1819).(g)EnforcementThe Corporation shall have the authority to enforce the provisions of this Act with respect to
 an approved multifamily guarantor, in the same manner and to the same
 extent
 as the Federal Deposit Insurance Corporation has with respect to an
 insured
 depository institution under the provisions of subsections (b) through
 (n) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818).(h)Capital standards(1)In generalPursuant to the requirement to establish capital and related solvency standards under section
 309(b), the Corporation shall establish standards for approved multifamily
 guarantors as follows:(A)Guarantor activitiesThe capital standard for eligible multifamily mortgage loans that collateralize multifamily covered
 securities insured by the Corporation shall require an approved
 multifamily guarantor to hold 10 percent capital.(B)Aggregation activitiesAn approved multifamily guarantor shall hold capital in an amount comparable to that which is
 required to be held by insured depository institutions and their
 affiliates with respect to their applicable aggregating activities.(C)Solvency levelsAn approved multifamily guarantor shall maintain solvency levels adequate for the approved
 multifamily guarantor to withstand losses that might be incurred by the
 approved multifamily guarantor in a period of economic stress, including
 national and regional multifamily housing price declines, such as those
 observed during moderate to severe recessions in the United States.(2)Risk-sharing considerations(A)In generalFor purposes of paragraph (1)(A), the Corporation shall consider the extent, amount, and form of
 risk-sharing and risk mitigation through the use by approved multifamily
 guarantors of credit risk-sharing mechanisms approved pursuant to
 subsection (c). The Corporation shall allow such risk-sharing and risk
 mitigation to fulfill required amounts of capital to be
 held under paragraph (1)(A) while maintaining an appropriate structure of
 capital as
 determined by the Corporation.(B)Equivalent treatmentFor purposes of paragraph (2)(A), the Corporation shall seek to ensure equivalent capital
 treatment between approved credit risk-sharing mechanisms approved under
 subsection (c) with similar performance histories.(3)Other considerationTo reflect the differences between single-family and multifamily businesses, the capital standards
 established under paragraph (1)(A) may differ from the capital standards
 established under section 311 for approved guarantors.(4)Stress testsThe Corporation shall conduct appropriate stress tests of each approved multifamily guarantor that
 has
 total assets of more than $10,000,000,000, provided that such stress tests
 shall be—(A)specifically tailored to the business model of the approved multifamily guarantor; and(B)utilized to—(i)ensure the safety and soundness of the approved multifamily guarantor; and(ii)minimize the risk the approved multifamily guarantor may present to the Mortgage Insurance Fund.(i)Resolution authority for failing multifamily guarantors(1)In generalNotwithstanding any other provision of Federal law, the law of any State, or the constitution of
 any State, the Corporation shall—(A)have the authority to act, in the same manner and to the same extent, with respect to an approved
 multifamily guarantor as the Federal Deposit Insurance Corporation has
 with respect to an insured depository institution under subsections (c)
 through (s) of section 11 of the Federal Deposit Insurance Act (12 U.S.C.
 1821), section 12 of the Federal Deposit Insurance Act (12 U.S.C. 1822),
 and section 13 of the Federal Deposit Insurance Act (12 U.S.C. 1823),
 while tailoring such actions to the specific business model of the
 approved multifamily guarantor, as may be necessary to properly exercise
 such authority under this subsection;(B)in carrying out any authority provided in subparagraph (A), act, in the same manner and to the same
 extent, with respect to the Mortgage Insurance Fund as the Federal Deposit
 Insurance Corporation may act with respect to the Deposit Insurance Fund
 under the provisions of the Federal Deposit Insurance Act set forth in
 subparagraph (A);(C)prescribe regulations governing the applicable rights, duties, and obligations of an approved
 multifamily guarantor placed into resolution under this subsection, its
 creditors, counterparties, and other persons, as the Corporation deems
 necessary to properly exercise the authority provided in subparagraph (A);(D)consistent with the authorities provided in subparagraph (A), immediately place an insolvent
 approved multifamily guarantor into receivership; and(E)upon placing an approved multifamily guarantor into receivership, treat multifamily covered
 securities insured by the Corporation under section 303 in the same manner
 as the Federal Deposit Insurance Corporation treats deposit liabilities
 under section 11(d)(11)(A)(ii) of the Federal Deposit Insurance Act and
 insured deposits under section 11(f) of the Federal Deposit Insurance Act,
 where the Corporation shall have the same right of subrogation as the
 Federal Deposit Insurance Corporation has under section 11(g) of the
 Federal Deposit Insurance Act.(2)Least-cost resolution requiredThe Corporation may not exercise any authority under paragraph (1) with respect to any approved
 multifamily guarantor unless the total amount of the expenditures by the
 Corporation and obligations incurred by the Corporation
 in connection with the exercise of any such authority with respect to such
 approved multifamily guarantor is the least costly to the Mortgage
 Insurance Fund,
 consistent with the least cost approach specified in the Federal Deposit
 Insurance Act (12 U.S.C. 1811 et seq.), of all possible
 methods for meeting the Corporation's obligations under this Act and
 expeditiously concluding its resolution activities, subject to section 13
 of the Federal Deposit Insurance Act where the Corporation and the Board
 of
 Directors shall have the same authority as the Federal Deposit Insurance
 Corporation and the Federal Deposit Insurance Corporation’s board of
 directors.(3)Taxpayer protectionThe Corporation, in carrying out any authority provided in this subsection, shall prescribe
 regulations to ensure that any
 amounts owed to the United States, unless the United States agrees or
 consents otherwise, shall have priority following administrative expenses
 of the receiver when satisfying unsecured claims against an approved
 multifamily guarantor, or the receiver therefor, that are proven to the
 satisfaction of the receiver.(j)HearingUpon notice of denial of an application for approval under subsection (b) or upon a notice of
 suspension or revocation of the approved status of an approved multifamily
 guarantor under subsection (d), the applicant or approved multifamily
 guarantor shall be afforded a hearing under subsection (h) of section 8 of
 the Federal Deposit Insurance Act (12 U.S.C. 1818(h)), in the same manner
 and to the same extent as if the Corporation were the appropriate Federal
 banking agency, provided that the approved multifamily guarantor submits a
 request to the Corporation for a hearing not later than 10 days after the
 date on which the notice is published under subsection (b)(3) or (d)(3).(k)Prohibited activityAn approved multifamily guarantor may not—(1)originate eligible multifamily mortgage loans; or(2)be an affiliate of a person that actively engages in the business of originating eligible
 multifamily mortgage loans.(l)Guarantors required to pay claimsSubject to such standards as the Corporation may provide, an approved multifamily guarantor may not
 for any reason withhold payment of funds that would ensure holders of
 multifamily covered securities receive timely payment of principal and
 interest on multifamily covered securities. The Corporation shall by
 regulation develop a process for the mediation and resolution of disputed
 payment amounts.704.Multifamily housing requirement(a)In generalEach approved multifamily guarantor shall ensure, during each calendar year,
 that at least 60 percent of the rental housing units
 which are contained in the eligible multifamily mortgage loans that
 collateralize all multifamily covered securities guaranteed by each such
 approved multifamily guarantor during the previous 24-month period were,
 at the time of origination, affordable to low-income families.(b)Determination of affordability of rental housing unitsFor purposes of subsection (a), the affordability of rental housing units contained in an eligible
 multifamily mortgage loan shall be determined at the time of loan
 commitment by using—(1)the most recent rent roll for an occupied property; or(2)in the case of rental housing units that are newly constructed or substantially rehabilitated, a
 final pro-forma rent roll.(c)Determination of complianceThe Corporation shall determine, during each calendar year, whether each approved multifamily
 guarantor has complied with the requirement under
 subsection (a).(d)Suspension or adjustment(1)In generalThe Corporation may suspend or adjust the requirement under subsection (a) for an approved
 multifamily guarantor or guarantors—(A)during a period of unusual and exigent market conditions in the multifamily housing market as
 determined pursuant to section 305; or(B)either—(i)pursuant to information available to the Corporation
 demonstrating adverse market conditions in the multifamily housing market;
 or(ii)pursuant to a written request to suspend or adjust the requirement under subsection (a) made by an
 approved multifamily guarantor, which the
 Corporation may grant in whole or in part.(2)Criteria for suspension or adjustmentThe Corporation may suspend or adjust the requirement under subsection (a) pursuant to paragraph
 (1)(B) only if—(A)market and economic conditions require such an action; or(B)efforts to meet the requirement under subsection (a) would result in—(i)the constraint of liquidity in certain market segments;(ii)over-investment in certain market segments; or(iii)other consequences contrary to the intent of this section.(3)Limitation on authorityThe Corporation shall narrowly tailor any suspension or adjustment made under paragraph (1)(B) to
 address the market conditions that prompted the suspension or
 adjustment.(4)Determination(A)Period for public commentThe Corporation shall, promptly upon a decision to pursue a suspension or adjustment under
 paragraph (1)(B)(i) or upon receipt of a request under paragraph
 (1)(B)(ii), seek public comment on the suspension or adjustment for a
 period of 30 days.(B)Period for determinationThe Corporation shall make a determination regarding any proposed suspension or adjustment within
 30 days after the expiration of the public comment period provided under
 subparagraph (A).(C)ExtensionsThe Corporation may extend the period for determination provided under subparagraph (B) for a
 single additional 15-day period, but only if the Corporation requests
 additional information from the approved multifamily
 guarantor.(5)Review of suspension or adjustment(A)Annual reviewThe Corporation shall review any suspension or adjustment made by the Corporation under
 subparagraphs (A) or (B) of paragraph (1) at least annually to determine
 whether the suspension or adjustment satisfies the criteria established
 under paragraph (2).(B)Publication and commentThe Corporation shall—(i)not less than annually, publish a list of all suspensions and adjustments in effect under this
 section; and(ii)seek public comment as to the continued necessity of such suspensions or adjustments.(e)Mixed income liquidity study and review(1)StudyNot later than 2 years after the date of enactment of this Act, and periodically or as market
 conditions warrant thereafter, the Corporation shall conduct a
 study of liquidity in the market for financing the new construction or
 substantial rehabilitation of mixed-income properties containing
 multifamily units that—(A)otherwise qualify under the requirement under subsection (a); and(B)are financed by tax-exempt bonds that are issued by a State or local housing finance agency.(2)Adjustment to requirementThe Corporation may adjust the requirement under subsection (a), subject to the procedures provided
 under paragraphs (2) through (5) of subsection (d), if the Corporation
 finds based on a study conducted under paragraph (1) that—(A)liquidity is constrained in the market for eligible multifamily mortgage loans for the
 mixed-income properties described in paragraph (1); and(B)it is necessary to foster liquidity in that market.(f)Rule of constructionNothing in this section shall be construed to authorize the Corporation to require an approved
 multifamily guarantor to exceed the 60 percent
 requirement set forth under subsection (a).(g)Definitions; applicability to enterprisesIn this section—(1)the term approved multifamily guarantor includes an enterprise or any multifamily subsidiary established pursuant to section 701;(2)the term multifamily covered security includes a multifamily mortgage-backed security guaranteed by an enterprise or any multifamily
 subsidiary established pursuant to section 701; and(3)the term eligible multifamily mortgage loan includes a multifamily mortgage loan collateralizing a security guaranteed by an enterprise or any
 multifamily subsidiary established pursuant to section 701.705.Establishment of small multifamily property program(a)Pilot programThe Corporation shall establish at least 1 pilot program, to be administered by the Office of
 Multifamily Housing, in consultation with the Office of Consumer and
 Market Access, to test and assess methods or products designed to
 increase secondary mortgage market access for multifamily properties
 comprised of not more than 50 units or with mortgages not exceeding
 $3,000,000 (as adjusted for inflation).(b)ActivitiesIn administering the pilot program required under subsection (a), the Corporation shall—(1)review, and may approve,
 proposals from regulated entities or approved
 multifamily guarantors, including proposals focused on lending by small
 mortgage lenders, to participate in the pilot program by carrying out
 activities to decrease
 barriers to secondary mortgage market access for multifamily properties
 comprised of not more than 50 units or with mortgages not exceeding
 $3,000,000 (as adjusted for inflation) through new risk-sharing,
 partnerships, or other mechanisms or incentives; and(2)establish requirements governing the activities of the pilot program, including requirements with
 respect to—(A)any mid-course alterations of activities permitted under the pilot program, information sharing,
 reporting, and
 evaluation of the results of a pilot program; and(B)the tracking of any allocations of amounts that may be distributed from the Market Access Fund.(c)Use of Market Access FundA regulated entity or approved multifamily guarantor that submits a proposal under
 subsection (b) may request, as part of the proposal, allocations from the
 Market Access Fund as necessary to support its proposed activities.(d)Amendments to pilot programThe Corporation may amend a pilot program established under subsection (a) as needed to
 accommodate the multifamily mortgage market.(e)PublicationThe Corporation shall make publicly available the results of a pilot program established under
 subsection (a).(f)RequirementThe Corporation shall consider the results of a pilot program established under subsection (a) for
 purposes of expanding and implementing new mechanisms to decrease barriers
 to secondary mortgage market access for multifamily properties comprised
 of not
 more than 50 units or with mortgages not exceeding $3,000,000 (as adjusted
 for inflation).(g)Limitation on fundingThe Corporation may not use funds from the Mortgage Insurance Fund to fund any pilot program
 activities conducted by a regulated entity or approved multifamily
 guarantor under this section.706.Multifamily housing studyThe Office of Multifamily Housing shall conduct a study on the
 expansion of the Federal Home Loan Banks’ Acquired Member Assets (AMA) programs to eligible multifamily mortgage loans.707.Multifamily platform study(a)In generalNot later than 18 months after the system certification date, the Corporation shall conduct a study
 on the need, feasibility, costs, and merits of creating a
 cooperatively-owned, nonprofit multifamily issuance platform to securitize
 eligible multifamily mortgage loans.(b)Content of studyThe study required under subsection (a) shall address—(1)competition between existing approved multifamily guarantors;(2)the barriers to entry for new multifamily guarantors;(3)the costs associated with developing a new platform;(4)the funding of smaller-balance multifamily mortgage loans, including mortgage loans originated by
 credit unions and community and
 mid-size
 banks and other small-volume lenders in rural and other underserved
 communities;(5)standardized definitions and reporting and payment requirements;(6)stability in the multifamily lending market in times of stress; and(7)such other information as the Corporation determines appropriate to further the purpose of the
 study.(c)ConsiderationIn conducting the study required under subsection (a), the Corporation shall consider whether any
 identified need to establish a multifamily securitization platform can and
 will be met by the Platform established under section 321, or any
 subsidiary
 or affiliate thereof.(d)Report to CongressNot later than 18 months after the system certification date, the Corporation shall submit the
 study required under subsection (a) to the Committee on Banking, Housing,
 and Urban Affairs of the Senate and the Committee on Financial Services of
 the House of Representatives.708.Short-term
 residential housing(a)In generalSection
 513 of the National Housing Act (12 U.S.C. 1731b) is amended—(1)in subsection
 (b)—(A)in clause (1), by
 striking or at the end; and(B)by inserting
 before the period at the end the following: , or (3) the project is a
 short-term residential property (as such term is defined in subsection (e)
 of
 this section) and is subject to a mortgage insured under section 207,
 provided that the Secretary has made a determination pursuant to
 the study and report required under section 708(b) of the Housing Finance
 Reform and Taxpayer Protection Act that the provision of such insurance is
 appropriate; and(2)in subsection
 (e)—(A)in clause (1), by
 striking and at the end; and(B)by inserting
 before the period at the end the following: , and (3) the term
 short-term residential property means multifamily housing that
 (A) has more than 50 dwelling units that each contain a kitchen, including
 a
 full refrigerator and cooking surface, and bathroom facilities, (B)
 provides
 mail boxes for each unit, (C) rents such units for a minimum stay of 7
 days, and (D) does not provide food or beverage services, including
 in-room
 service, daily maid services, furnishing and laundering of linen without
 charge, or bellhop services.(b)Study(1)In generalNot later than 6 months after the date of enactment of this Act, the Secretary of Housing and Urban
 Development shall—(A)conduct and complete a study evaluating the risk of the
 provision of insurance under section 207 of the National Housing Act (12
 U.S.C. 1713) for short-term residential properties; and(B)submit a report to the Committee on Banking, Housing,
 and Urban Affairs of the Senate and the Committee on Financial Services of
 the House of Representatives, which shall include—(i)the findings of the study required under subparagraph (A); and(ii)a determination as to whether any additional risk presented to the General Insurance Fund resulting
 from the provision of insurance under section 207 of the National Housing
 Act (12 U.S.C. 1713) for short-term residential properties is appropriate.(2)Contents of studyIn conducting the study required under paragraph (1)(A), the Secretary of Housing and Urban
 Development shall—(A)evaluate whether the provision of insurance under section 207 of the National Housing Act (12
 U.S.C. 1713) for short-term residential properties presents additional
 risk to the General Insurance Fund; and(B)consider any additional operational and logistical costs associated with providing such insurance.(3)DefinitionsIn this subsection—(A)the term General Insurance Fund means the fund established under section 519 of the National Housing Act (12 U.S.C. 1735c); and(B)the term short-term residential properties has the meaning given the term under section 513(e)(3) of the National Housing Act (12 U.S.C.
 1731b(e)(3)).VIIIGeneral provisions801.Rule of
 constructionNothing in this Act shall be construed to alter, supersede, or interfere with the final ruling of a
 court of competent jurisdiction with respect to any provision of the
 Senior Preferred Stock Purchase Agreement or amendments thereof of an
 enterprise.802.SeverabilityIf any provision of this Act or the
 application of any provision of this Act to any person or circumstance, is
 held
 invalid, the application of such provision to other persons or
 circumstances,
 and the remainder of this Act, shall not be affected thereby.803.Transfer notification under TILA(a)In generalSection 131(g) of the Truth in Lending Act (15 U.S.C. 1641(g)) is amended by striking paragraph (2)
 and inserting the following:(2)DefinitionsFor purposes of this subsection—(A)the term mortgage loan means any consumer credit transaction that is secured by the principal dwelling of a consumer;(B)the term securitized residential mortgage means any residential mortgage loan that serves as collateral for a fixed-income or other security
 that allows the holder of such security to receive payments dependent on
 the cash flow from such residential mortgage loan; and(C)the term servicer—(i)has the meaning provided in section 129A, except that such term includes a person who receives any
 payments from a mortgagor, including any amounts for escrow accounts, and
 makes payments to the owner of the loan or other third parties, including
 payments made after default, pursuant to the terms of the relevant
 contracts; and(ii)excludes State and local housing agencies..(b)Disclosure of feesSection 5(c)(3) of the Real Estate Settlement Procedures Act (12 U.S.C. 2605(c)(3)) is amended—(1)by striking Any notice required and inserting the following:(A)In generalAny notice required; and(2)by adding at the end the following:(B)Disclosure of fees requirementThe transferee servicer shall provide to the borrower, not more than 15 days after the effective
 date of transfer of the servicing of the mortgage loan, a statement
 regarding the loan which shows the following:(i)The application of all payments and charges, including the date received, as allocated to
 principal, interest, escrow, and other charges.(ii)The status of the loan as of the date of the transfer including whether the loan is in default and
 whether any loss mitigation application submitted by the borrower is
 pending.(iii)An itemization and explanation for all arrearages claimed to be due as of the date of the transfer..(c)Safe harbor for mistaken payments; feesSection 131 of the Truth in Lending Act (15 U.S.C. 1641) is amended—(1)by redesignating subsection (g) as subsection (i); and(2)by inserting after subsection (f) the following:(g)Treatment of mistaken loan payments after transferDuring the 60-day period beginning on the effective date of transfer of the servicing of any
 securitized residential mortgage loan, a late fee may not be imposed on
 the consumer with respect to any payment on such loan, and no such payment
 may be treated as late for any other purpose, if the payment is received
 by the transferor servicer (rather than the transferee servicer who should
 properly receive payment) on or before the applicable due date, including
 any grace period allowed under the loan documents.(h)Fee waive upon transfer(1)In generalThe creditor, new owner, or assignee of the mortgage loan, by itself or through its servicer, may
 not impose or collect—(A)any fee that is not listed as having been incurred in the notice to the consumer of the transfer of
 servicing of a securitized
 residential mortgage
 loan; or(B)any fee incurred prior to the effective date of servicing transfer that is not disclosed on a
 periodic
 statement provided to the consumer prior to the effective date of
 servicing transfer of a securitized residential mortgage loan.(2)DefinitionsFor purposes of this subsection—(A)the term securitized residential mortgage means any residential mortgage loan that serves as collateral for a fixed-income or other security
 that allows the holder of such security to receive payments dependent on
 the cash flow from such residential mortgage loan; and(B)the term servicer—(i)has the meaning provided in section 129A, except that such term includes a person who receives any
 payments from a mortgagor, including any amounts for escrow accounts, and
 makes payments to the owner of the loan or other third parties, including
 payments made after default, pursuant to the terms of the relevant
 contracts; and(ii)excludes State and local housing agencies.. 804.Investment
 authority to support rural infrastructureSection 11 of the Federal Home Loan Bank Act
 (12 U.S.C. 1431) is amended by adding at the end the following:(m)Mission
 investments for rural infrastructureIn furtherance of its
 mission under section 5, each Federal Home Loan Bank is authorized to purchase
 investment grade securities from nonmember cooperative lenders that have
 received financing from the Federal Financing Bank and that possess
 demonstrated experience in making loans to rural cooperatives. Such securities
 shall be secured investments collateralized by loans of the cooperative lender.
 The purchase of such securities shall be at the sole discretion of the Bank,
 consistent with such regulations, restrictions, and limitations as may be
 prescribed by the
 Board..805.Consolidation of similar housing assistance programs(a)Report(1)In generalNot later than 2 years after the date of enactment of this Act, the Corporation, the Secretary of
 Housing and Urban Development, the Secretary of the Treasury, the
 Secretary of Agriculture, the Secretary of Veterans Affairs, the Secretary
 of Labor, and the Secretary of the Interior shall jointly submit to
 Congress a
 report, which shall—(A)identify and evaluate, based on need and appropriateness, specific opportunities to consolidate
 similar housing assistance programs,
 which may include the programs identified in the August 2012 Government
 Accountability Office report to Congress entitled Opportunities Exist to Increase Collaboration and Consider Consolidation (GAO-12-554);(B)provide recommendations to Congress for legislative action to appropriately streamline,
 consolidate, or eliminate similar housing assistance programs identified
 and evaluated under
 subparagraph (A); and(C)identify opportunities for cross-agency collaboration of housing assistance efforts.(2)AccessibilityThe report submitted under paragraph (1) shall be made available on a publically accessible
 Internet website.(b)Use of administrative authority(1)In general(A)The Director of the Office of Management and Budget shall coordinate with the Secretary of Housing
 and Urban Development, the
 Secretary of the Treasury, the Secretary of Agriculture, the Secretary of
 Veterans Affairs, the Secretary of Labor, and the Secretary of the
 Interior to consider and evaluate opportunities to eliminate,
 consolidate, or streamline housing assistance programs.(B)The Director of the Office of Management and Budget, in coordination with the Secretary of Housing
 and Urban Development, the
 Secretary of the Treasury, the Secretary of Agriculture, the Secretary of
 Veterans Affairs, the Secretary of Labor, and the Secretary of the
 Interior, shall eliminate, consolidate, or streamline any programs
 identified under subparagraph (A) which they find appropriate.(2)Cost savingsAny administrative cost savings resulting from the consolidation, elimination, or streamlining of
 housing assistance programs under paragraph (1) shall be transferred as
 follows:(A)50 percent to the Housing Trust Fund established under section 1338 of the Federal Housing
 Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568).(B)50 percent to the General Fund of the Treasury to be used for deficit reduction.(3)ReportThe Director of the Office of Management and Budget shall submit to Congress a report on an annual
 basis of any actions taken to streamline similar housing assistance
 programs, and the cost savings resulting from such actions.(c)Rule of constructionNothing in this section shall be construed to grant the Director of the Office of Management and
 Budget, the Secretary of Housing and Urban Development, the
 Secretary of the Treasury, the Secretary of Agriculture, the Secretary of
 Veterans Affairs, the Secretary of Labor, or the Secretary of the
 Interior any additional authority to eliminate, consolidate, or streamline
 housing assistance programs that they did not have prior to the date of
 enactment of this Act.806.Bureau of Consumer Financial Protection review; GAO report(a)Bureau of Consumer Financial Protection review(1)In generalExcept as provided in paragraph (2), not later than 3 months after the date of enactment of this
 Act, the Bureau of Consumer Financial
 Protection shall, after reviewing relevant data and consulting with
 stakeholders,
 including representatives of the manufactured housing industry and
 representatives of consumers and homeowners, consider and review the
 application of
 subsections (bb) and (cc) of section 103 of the Truth in Lending Act (15
 U.S.C. 1602) to manufactured housing loans, including—(A)the annual percentage rate coverage test for high-cost mortgages;(B)the total points and fees coverage test for high-cost mortgages; and(C)the definition of the term mortgage originator.(2)ExceptionThe Bureau of Consumer Financial Protection shall not be required to conduct the review under
 paragraph (1) if the Bureau does not receive relevant data relating to
 the review that was not previously submitted to the Bureau on or before
 January 31, 2013.(3)Rule of constructionNothing in paragraph (1) shall be construed to require the Bureau of Consumer Financial Protection
 to engage in rulemaking, including rulemaking to modify any rule relating
 to subsection (bb) or (cc) of section 103 of the Truth in Lending Act (15
 U.S.C. 1602).(b)GAO reportNot later than 10 months after the date of enactment of this Act, the Comptroller General of the
 United States shall conduct a study and issue a report to Congress on the
 manufactured housing loan market, which
 shall include an analysis of—(1)the loan products available in the manufactured housing loan market and the performance of those
 products, which shall include a
 review of the underwriting standards and portfolios of creditors that
 originate manufactured housing loans, such as depository institutions and
 finance companies;(2)the characteristics of borrowers that participate in the manufactured housing loan market,
 including—(A)the creditworthiness of the borrower;(B)the usage pattern of the borrower; and(C)the process for evaluating and comparing loan products prior to purchase; and(3)the potential impact on access to mortgage credit for manufactured housing loans if subsections
 (bb) and (cc) of section 103 of the Truth in Lending Act (15 U.S.C. 1602)
 were applied to manufactured housing loans, including—(A)the annual percentage rate coverage test for high-cost mortgages;(B)the total points and fees coverage test for high-cost mortgages;(C)the definition of mortgage originator;(D)borrower delinquency and default in the manufactured housing loan market; and(E)competition in the manufactured housing loan market.807.Determination of budgetary effectsThe budgetary effects of this Act, for the purpose of complying with the Statutory Pay-As-You-Go
 Act of 2010, shall be determined by reference to the latest statement
 titled Budgetary Effects of PAYGO Legislation for this Act, submitted for printing in the Congressional Record by the Chairman of the Senate
 Budget Committee, provided that such statement has been submitted prior to
 the vote on passage.September 18, 2014Reported with an amendment