Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Free Housing Market Enhancement
Act''.

SEC. 2. PROHIBITION OF FEDERAL FUNDS FOR HOUSING-RELATED GOVERNMENT-
SPONSORED ENTERPRISES.

Notwithstanding any other provision of law, no Federal funds may be
provided, directly or indirectly, to the Federal National Mortgage
Association, the Federal Home Loan Mortgage Corporation, or any Federal
Home Loan Bank.

SEC. 3. AMENDMENTS TO FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER
ACT.

(a) Exemption From State Taxation.--Section 309(c) of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1723a(c)) is
amended--
(1) by striking paragraph (2); and
(2) by striking ''(1)''.
(b) Authority of Treasury To Approve Debt Issues.--Section 304(b)
of the Federal National Mortgage Association Charter Act (12 U.S.C.
1719(b)) is amended--
(1) by striking '', upon the approval of the Secretary of
the Treasury,''; and
(2) by striking ''with the approval of the Secretary of the
Treasury''.
(c) Authority To Borrow From Treasury.--Section 304 of the Federal
National Mortgage Association Charter Act (12 U.S.C. 1719) is amended
by striking subsection (c).
(d) Depositary Authority.--Section 309(g) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1723a(g)) is amended--
(1) by striking ''each of the bodies corporate named in
section 302(a)(2)'' and inserting ''the Association''; and
(2) by striking ''such bodies corporate'' and inserting
''the bodies corporate named in section 302(a)(2)''.
(e) Designation of Obligations as Lawful Investments.--The first
sentence of section 311 of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1723c) is amended by striking ''either of the
bodies corporate named in section 302(a)(2)'' and inserting ''the
Association''.
(f) Appointment of Members of Board of Directors.--
(1) In general.--Section 308(b) of the Federal National
Mortgage Association Charter Act (12 U.S.C. 1723(b)) is
amended--
(A) in the first sentence, by striking ''five of
whom shall be appointed annually by the President of
the United States, and the remainder of whom'' and
inserting ''who'';
(B) in the second sentence, by striking ''appointed
by the President'';
(C) in the third sentence--
(i) by striking ''appointed or''; and
(ii) by striking '', except that any such
appointed member may be removed from office by
the President for good cause'';
(D) in the fourth sentence, by striking
''elective''; and
(E) by striking the fifth sentence.
(2) Applicability.--The amendments made by paragraph (1)
shall apply only with respect to the first election of members
of the board of directors of the Federal National Mortgage
Association occurring after the date of the enactment of this
Act, and the board resulting from such election, and to
elections and boards thereafter.

SEC. 4. AMENDMENTS TO FEDERAL HOME LOAN MORTGAGE CORPORATION.

(a) Exemption From State Taxation.--Section 303 of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1452) is amended by striking
subsection (e).
(b) Authority of Treasury To Approve Debt Issues.--Section 306(j)
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1455(j))
is amended--
(1) by striking ''(1)'';
(2) by striking ''be issued upon the approval of the
Secretary of the Treasury and shall'';
(3) by striking ''with the approval of the Secretary of the
Treasury''; and
(4) by striking paragraphs (2) and (3).
(c) Authority To Borrow From Treasury.--Section 306 of the Federal
Home Loan Mortgage Corporation Act (12 U.S.C. 1455) is amended by
striking subsection (c).
(d) Depositary Authority.--Section 303(d) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1452(d)) is amended by striking the
second and third sentences.
(e) Designation of Obligations as Lawful Investments.--Section 303
of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452) is
amended by striking subsection (g).
(f) Appointment of Members of Board of Directors.--
(1) In general.--Section 303(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1452(a)(2)) is amended--
(A) in subparagraph (A)--
(i) in the first sentence, by striking ''5
of whom shall be appointed annually by the
President of the United States and the
remainder of whom'' and inserting ''who''; and
(ii) in the second sentence, by striking
''appointed by the President of the United
States'';
(B) in subparagraph (B)--
(i) by striking ''such or''; and
(ii) by striking '', except that any
appointed member may be removed from office by
the President for good cause''; and
(C) in subparagraph (C)--
(i) by striking the first sentence; and
(ii) by striking ''elective''.
(2) Applicability.--The amendments made by paragraph (1)
shall apply only with respect to the first election of members
of the Board of Directors of the Federal Home Loan Mortgage
Corporation occurring after the date of the enactment of this
Act, and the Board resulting from such election, and to
elections and Boards thereafter.

SEC. 5. AMENDMENTS TO FEDERAL HOME LOAN BANKS.

(a) Exemption From State Taxation.--
(1) Notes and obligations.--The first sentence of section
13 of the Federal Home Loan Bank Act (12 U.S.C. 1433) is
amended by striking '', by any Territory,'' and all that
follows through ''local taxing authority''.
(2) Banks.--The second sentence of section 13 of the
Federal Home Loan Bank Act (12 U.S.C. 1433) is amended by
striking '', by any Territory,'' and all that follows through
''taxed''.
(b) Authority To Borrow From Treasury.--Section 11 of the Federal
Home Loan Bank Act (12 U.S.C. 1431) is amended by striking subsection
(i).
(c) Depositary Authority.--The Federal Home Loan Bank Act is
amended--
(1) by striking section 14 (12 U.S.C. 1434); and
(2) in section 15 (12 U.S.C. 1435), by striking the second
sentence.
(d) Designation of Obligations as Lawful Investments.--Section 15
of the Federal Home Loan Bank Act (12 U.S.C. 1435), as amended by
subsection (c)(2) of this section, is further amended by striking the
first sentence.

SEC. 6. PROHIBITION OF FEDERAL RESERVE PURCHASE OF GSE DEBT.

Section 14(b)(2) of the Federal Reserve Act (12 U.S.C. 355(2)) is
amended--
(1) by inserting ''(A)'' after ''(2)''; and
(2) by adding at the end the following new subparagraph:
''(B) For purposes of this subsection, the Federal National
Mortgage Association, the Federal Home Loan Mortgage Corporation, and
the Federal Home Loan Banks shall not be considered agencies of the
United States.''.

SEC. 7. REPEAL OF ELIGIBILITY OF GSE OBLIGATIONS FOR UNLIMITED
INVESTMENTS.

(a) National Banks.--Section 5136 of the Revised Statutes of the
United States (12 U.S.C. 24) is amended in the sixth sentence of the
paragraph designated ''Seventh''--
(1) by striking ''or the Federal Home Loan Banks'';
(2) by striking ''the Federal National Mortgage Association
or''; and
(3) by striking ''or mortgages, obligations, or other
securities which are or ever have been sold by the Federal Home
Loan Mortgage Corporation pursuant to section 305 or 306 of the
Federal Home Loan Mortgage Corporation Act''.
(b) Federally Chartered Thrifts.--Section 5(c)(1) of the Home
Owners' Loan Act (12 U.S.C. 1464(c)(1)) is amended--
(1) by striking subparagraphs (D) and (E);
(2) in subparagraph (F), by striking ''the Federal National
Mortgage Association,'';
(3) in subparagraph (M), by striking ''or a Federal home
loan bank''; and
(4) by redesignating subparagraphs (F) through (U) as
subparagraphs (D) through (S), respectively.
(c) Credit Unions.--Section 107(7)(E) of the Federal Credit Union
Act (12 U.S.C. 1757(7)(E)) is amended--
(1) by striking ''Federal home loan banks, the Federal Home
Loan Bank Board,'';
(2) by striking ''the Federal National Mortgage Association
or''; and
(3) by striking ''or in mortgages, obligations, or other
securities which are or ever have been sold by the Federal Home
Loan Mortgage Corporation pursuant to section 305 or section
306 of the Federal Home Loan Mortgage Corporation Act;''.
Output:
Free Housing Market Enhancement Act - Prohibits providing Federal funds to the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), or any Federal Home Loan bank (Such entities are referred to as government sponsored enterprises, or GSEs.)Amends the Federal National Mortgage Association Charter Act ( Fannie Mae) and the Federal Home Loan Mortgage Corporation Act (Freddie Mac) to repeal: (1) the State tax exemption; (2) the requirement that the Treasury approve debt issues; (3) Treasury authority to purchase Fannie Mae/Freddie Mac obligations; (4) depositary authority; and (5) the designation of obligations as lawful investments.Amends the Federal Home Loan Bank Act to repeal: (1) the State tax exemption; (2) Treasury authority to purchase bank obligations; (3) depositary authority; and (4) the designation of obligations as lawful investments.Amends the Federal Reserve Act to prohibit Federal Reserve purchase of GSE debt.Repeals the eligibility of GSE obligations for unlimited investment by national banks, federally chartered thrifts, and credit unions.