111 HR 3550 IH: New Fair Deal Banking and Housing Stability Act of 2013
U.S. House of Representatives
2013-11-20
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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.
1.Short title and table of contents(a)This Act may be cited as the New Fair Deal Banking and Housing Stability Act of 2013
.(b)The table of contents for this Act is as follows:Sec. 1. Short title and table of contents.Title I—Reducing risky lending and housing market instabilitySubtitle A—Withdrawing failed Government mortgage corporationsPart 1—Immediate reforms of Government-Sponsored corporationsSec. 101. Repeal of housing goals for enterprises.Sec. 102. Repeal of Housing Trust Fund.Sec. 103. Repeal of Capital Magnet Fund.Sec. 104. Limitation on enterprise mortgage purchases.Sec. 105. Repeal of banking agencies’ authority relating Freddie Mac transactions.Part 2—Making space for private secondary marketsSec. 111. Reduction of enterprise conforming loan limits.Sec. 112. Loan-to-value limitation on enterprise mortgage purchases.Sec. 113. Increased capital standards for enterprises.Sec. 114. Enterprise portfolio limitations.Part 3—Abolition of Fannie Mae and Freddie MacSec. 121. Abolishment of enterprises.Subtitle B—Termination of Insurance for Banks’ Mortgage LendingPart 1—Immediate reforms of FHA credit programsSec. 131. FHA lender repurchase requirement.Sec. 132. Prohibition of FHA mortgage insurance for cash-out refinancings.Sec. 133. FHA limitation on seller concessions.Part 2—Reducing taxpayer guarantees of mortgagesSec. 141. Reduction of FHA mortgage insurance coverage.Sec. 142. Increase in FHA downpayment requirement.Part 3—Termination of FHA credit guaranteesSec. 151. Termination of FHA insurance authority.Subtitle C—Ending guarantees for Government mortgage-Backed securitiesSec. 161. Limitation on GNMA guarantees.Sec. 162. Abolishment of Ginnie Mae.Subtitle D—Repealing regulations that promote risky lendingSec. 171. Repeal of the Community Reinvestment Act of 1977.Sec. 172. Repeal of Dodd-Frank credit risk retention provisions.Sec. 173. Repeal of Dodd-Frank ability to repay and qualified mortgage provisions.Sec. 174. Repeal of the Home Mortgage Disclosure Act of 1975.Sec. 175. Repeal of Federal Home Loan Banks Affordable Housing Program and housing goals.Sec. 176. Repeal of FDIC Affordable Housing Program.Subtitle E—Stopping subsidies for certain obstacles to housing constructionSec. 181. Repeal of transportation planning provisions; rescission.Sec. 182. Termination of HUD sustainable communities initiatives; rescission.Title II—Ending bank bailouts and restoring market disciplineSubtitle A—Reducing risks to bank depositors and other creditorsSec. 201. Capital requirements.Sec. 202. FDIC insurance.Subtitle B—Repeal of bailout authoritiesSec. 211. Repeal of FDIC powers under the systemic risk determination.Sec. 212. Repeal of unusual and exigent authority of the Federal Reserve.Sec. 213. Exchange Stabilization Fund.Subtitle C—Bankruptcy, not bailouts, for complex financial institutionsSec. 221. Reforming the bankruptcy code to accommodate failing financial institutions.<enum>I</enum><header>Reducing risky lending and housing market instability</header><subtitle id="H463E4B9EAAE9401A8CA2D6A1C5704216"><enum>A</enum><header>Withdrawing failed Government mortgage corporations</header><part id="H4C706623662D4667B1617F0FF6D90CE9"><enum>1</enum><header>Immediate reforms of Government-Sponsored corporations</header><section id="H41D82A118CA34F9789787CF48A16FA96"><enum>101.</enum><header>Repeal of housing goals for enterprises</header><subsection id="H992DF8E8C75647708C5CBFC284D7FFE1"><enum>(a)</enum><header>Repeal</header><text>The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by striking sections 1331 through 1336 (<external-xref legal-doc="usc" parsable-cite="usc/12/4561-6">12 U.S.C. 4561–6</external-xref>).</text></subsection><subsection id="HC7A6A3DFC0F24EFBACF5243F7B9EBEC5"><enum>(b)</enum><header>Conforming amendments</header><text>Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended—</text><paragraph id="H92E26100793D4A3D94E8BB2ED907D3D5"><enum>(1)</enum><text>in section 1303(28) (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502(28)</external-xref>), by striking <quote>, and, for the purposes</quote> and all that follows through <quote>designated disaster areas</quote>;</text></paragraph><paragraph id="H4AFC0D6B1F784FD39CC118E855A75486"><enum>(2)</enum><text>in section 1324(b)(1)(A) (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544(b)(1)(A)</external-xref>), by striking clauses (i), (ii), and (iv);</text></paragraph><paragraph id="HF510F4AEF8A44CCBA4B7A9D8C0F00D7D"><enum>(3)</enum><text>in section 1339(h) (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569(h)</external-xref>), by striking paragraph (7);</text></paragraph><paragraph id="HD325A82C08214179854BEC36EB6F718E"><enum>(4)</enum><text>in section 1341 (<external-xref legal-doc="usc" parsable-cite="usc/12/4581">12 U.S.C. 4581</external-xref>)—</text><subparagraph id="HBDA65DA6D29F45B5B3FF876AF13F9699"><enum>(A)</enum><text>in subsection (a)—</text><clause id="H265327F0F960422F9FFFD7AA19A9E160"><enum>(i)</enum><text>in paragraph (1), by inserting <quote>or</quote> after the semicolon at the end;</text></clause><clause id="H55B82AA617504AC6AB890630E36456D6"><enum>(ii)</enum><text>in paragraph (2), by striking the semicolon at the end and inserting a period; and</text></clause><clause id="H19F747C55C5B4D378823F6D5137C8A1A"><enum>(iii)</enum><text>by striking paragraphs (3) and (4); and</text></clause></subparagraph><subparagraph id="H79D9C16E0F37481B9959E87726A8A7EA"><enum>(B)</enum><text>in subsection (b)(2)—</text><clause id="HC2F239098E574B6BA513993B49D2432F"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or</quote> after the semicolon at the end;</text></clause><clause id="H64DD739F4F69460CA66E45A61C61262C"><enum>(ii)</enum><text>by striking subparagraphs (B) and (C); and</text></clause><clause id="H13A5530EAB714D26ABD8DC92E660F487"><enum>(iii)</enum><text>by redesignating subparagraph (D) as subparagraph (B);</text></clause></subparagraph></paragraph><paragraph id="H9068B22DC4E04204A70D4CF664C3EED0"><enum>(5)</enum><text>in section 1345(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585(a)</external-xref>)—</text><subparagraph id="HC376E0D97B4C4F00A01124CC4295BB50"><enum>(A)</enum><text>in paragraph (1), by inserting <quote>or</quote> after the semicolon at the end;</text></subparagraph><subparagraph id="H65D81A7FE76C43FAA3B8CF17702AC56B"><enum>(B)</enum><text>in paragraph (2), by striking the semicolon at the end and inserting a period; and</text></subparagraph><subparagraph id="H63CBCF0A2C5949848891934B08AE563E"><enum>(C)</enum><text>by striking paragraphs (3) and (4); and</text></subparagraph></paragraph><paragraph id="H84ADCF71627648E9B942CCB8BA314C17"><enum>(6)</enum><text>in section 1371(a)(2) (<external-xref legal-doc="usc" parsable-cite="usc/12/4631">12 U.S.C. 4631(a)(2)</external-xref>), by striking <quote>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,</quote>.</text></paragraph></subsection><subsection id="H70BCBB85F1404B24968EED3ECC25A2CB"><enum>(c)</enum><header>Repeal of reporting requirements</header><paragraph id="H91A5EB2DD84042F4BDFA049713B1D82D"><enum>(1)</enum><header>Fannie mae</header><text display-inline="yes-display-inline">Section 309 of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a</external-xref>) is amended by striking subsection (n).</text></paragraph><paragraph id="H570C20F6C8CF44B484738CE265BCE0BF"><enum>(2)</enum><header>Freddie Mac</header><text>Section 307 of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456</external-xref>) is amended by striking subsection (f).</text></paragraph></subsection><subsection id="H3DBA82365CEE4A7AA624A39DABE991EA"><enum>(d)</enum><header>Termination of affordable housing advisory councils</header><paragraph id="HD4A4A321E4C6434B9938DAC38BEFEAF3"><enum>(1)</enum><header>Fannie mae</header><text display-inline="yes-display-inline">Section 309 of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a</external-xref>) is amended by striking subsection (o).</text></paragraph><paragraph id="H532EF14A7A9444B0BAD692F0B490EF8D"><enum>(2)</enum><header>Freddie Mac</header><text>Section 307 of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1456">12 U.S.C. 1456</external-xref>) is amended by striking subsection (g).</text></paragraph></subsection></section><section id="H5F26AB2A39774E73959B01D743E54DB1"><enum>102.</enum><header>Repeal of Housing Trust Fund</header><subsection id="HC80110BC526A482C96C34AEFD04F9F60"><enum>(a)</enum><header>Repeal</header><text display-inline="yes-display-inline">The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by striking sections 1337 and 1338 (<external-xref legal-doc="usc" parsable-cite="usc/12/4567">12 U.S.C. 4567</external-xref>, 4568).</text></subsection><subsection id="H1B9C8BC43E254A70978D658ECCF36E48"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H67F29329E02D4468AEE40A45E22FD87C"><enum>(1)</enum><header>Federal housing enterprises financial safety and soundness act of 1992</header><text display-inline="yes-display-inline">The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended—</text><subparagraph id="H445C58CBF3F947E7B9962AA7319AB824"><enum>(A)</enum><text>in section 1324(b)(1)(A) (<external-xref legal-doc="usc" parsable-cite="usc/12/4544">12 U.S.C. 4544(b)(1)(A)</external-xref>), as amended by the preceding provisions of this Act—</text><clause id="H9C429F3701234DDBBFBBD4ED5AFA816A"><enum>(i)</enum><text>by striking clause (iii);</text></clause><clause id="HB0BDCA5438054299BB560ACD9F24448C"><enum>(ii)</enum><text>by striking the dash after <quote>which</quote> and inserting the text of clause (v) and a period; and</text></clause><clause id="H36E6B93EC04F43B2BFA7E71DA2F47BEF"><enum>(iii)</enum><text>by striking clause (v);</text></clause></subparagraph><subparagraph id="HC5EC593EBE86421C9D5262BE11DDA134"><enum>(B)</enum><text display-inline="yes-display-inline">in section 1339(b)—</text><clause id="H500D3B8F829B415C8E83B9F36F397B22"><enum>(i)</enum><text>by striking paragraph (1);</text></clause><clause id="H70BF3A0C4D61408C974E9CCA31D9F295"><enum>(ii)</enum><text>by striking the dash after <quote>consist of</quote> and inserting the text of paragraph (2) and a period; and</text></clause><clause id="HC8F3F37235274521B9036C1B7FA4765C"><enum>(iii)</enum><text>by striking paragraph (2); and</text></clause></subparagraph><subparagraph id="HCAD73962129848E79C9BB03410C1C34F"><enum>(C)</enum><text>in section 1345 (<external-xref legal-doc="usc" parsable-cite="usc/12/4585">12 U.S.C. 4585</external-xref>), by striking subsection (f).</text></subparagraph></paragraph><paragraph id="H5BEB119B534A4E48AB6A39EB2E3FB9B6"><enum>(2)</enum><header>HOPE for homeowners program</header><text display-inline="yes-display-inline">Section 257(w) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-23">12 U.S.C. 1715z–23(w)</external-xref>) is amended—</text><subparagraph id="H41D703B5B30E4AE8A23336B3C3D8F8B2"><enum>(A)</enum><text>by striking paragraphs (2) and (3); and</text></subparagraph><subparagraph id="HA31F8918159A497799B10FCFC6E422DF"><enum>(B)</enum><text>by redesignating paragraph (4) as paragraph (2).</text></subparagraph></paragraph></subsection></section><section id="HFEB03F2CC2DD4B81803CFBA30FB14796"><enum>103.</enum><header>Repeal of Capital Magnet Fund</header><subsection id="HF1634EACF78D4E679CEF4F43D13CBCC4"><enum>(a)</enum><header>Use of funds</header><text display-inline="yes-display-inline">Immediately upon the enactment of this Act, any amounts in the Capital Magnet Fund established under section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>) shall be available to the Secretary of the Treasury for use only for reducing the budget deficit of the Federal Government.</text></subsection><subsection id="HBAA6331FC25F44FA93E923B7451853FD"><enum>(b)</enum><header>Repeal and abolishment of fund</header><text display-inline="yes-display-inline">Section 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>) is hereby repealed and the Capital Magnet Fund established under such section is abolished.</text></subsection><subsection id="HE05B34551D4149AB9F172502FC66E171"><enum>(c)</enum><header>Conforming amendment</header><text>Section 1303(24) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4502">12 U.S.C. 4502(24)</external-xref>) is amended by striking subparagraph (B).</text></subsection></section><section id="H5888BEAD7B364821982F4B457DCC0570"><enum>104.</enum><header>Limitation on enterprise mortgage purchases</header><subsection id="HB6DD92B7891740CBBD5E8B659A3E70B0"><enum>(a)</enum><header>Fannie Mae</header><text display-inline="yes-display-inline">Section 302(b) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H5D8433FDED8A476BB6BC2389998C1EC8" style="OLC"><paragraph id="HEFD0470F32E84C358E0D6092015BF2C3" indent="up1"><enum>(7)</enum><text display-inline="yes-display-inline">The corporation may only purchase, make commitments to purchase, service, sell, lend on the security of, or otherwise deal in a mortgage on a property comprising 1- to 4-family dwelling units that—</text><subparagraph id="HC69348ADACBE43FDA79CE4293E35249D"><enum>(A)</enum><text>bears interest at a rate that is fixed for the entire term of the mortgage; and</text></subparagraph><subparagraph id="H62CE072C65254F8697EC85FD020DFE16"><enum>(B)</enum><text display-inline="yes-display-inline">is made—</text><clause id="H02A8BF06215F43D3A0BA86AC01FADE3B"><enum>(i)</enum><text display-inline="yes-display-inline">to finance the purchase of such property that shall be occupied by the mortgagor as the mortgagor’s principal residence; or</text></clause><clause id="H92D4E98735A84C01AE3378A2FAC6480D"><enum>(ii)</enum><text display-inline="yes-display-inline">to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same property, which is occupied by the mortgagor as the mortgagor’s principal residence, but not including a mortgage under which any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage or for any settlement costs in connection with such mortgage, as determined in accordance with guidelines issued by the Director.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HA05AE897F4474F96B10605C115E85A9E"><enum>(b)</enum><header>Freddie Mac</header><text>Section 305(a) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H012B8C88E2E44DC695DDC1F1E78BDADC" style="OLC"><paragraph id="HD2D94A5828894F34A1FC14DD83DC54BB" indent="up1"><enum>(6)</enum><text display-inline="yes-display-inline">The Corporation may only purchase, make commitments to purchase, service, sell, lend on the security of, or otherwise deal in a mortgage on a property comprising 1- to 4-family dwelling units that—</text><subparagraph id="HA2CC23389FF241A9A4DAD30F55851228"><enum>(A)</enum><text>bears interest at a rate that is fixed for the entire term of the mortgage; and</text></subparagraph><subparagraph id="HBF2E8C713572410CA63EB6222D52360E"><enum>(B)</enum><text display-inline="yes-display-inline">is made—</text><clause id="H7CC8458839754701A0579BE6AB6C70E2"><enum>(i)</enum><text display-inline="yes-display-inline">to finance the purchase of such property that shall be occupied by the mortgagor as the mortgagor’s principal residence; or</text></clause><clause id="H795C8CAD1F014CF98BD84C49EC8A5D5C"><enum>(ii)</enum><text>to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same property, which is occupied by the mortgagor as the mortgagor’s principal residence, but not including a mortgage under which any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage or for any settlement costs in connection with such mortgage, as determined in accordance with guidelines issued by the Director.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="HA0D23E2A70484792BA6A316DDFFBC8F4"><enum>105.</enum><header>Repeal of banking agencies’ authority relating Freddie Mac transactions</header><text display-inline="no-display-inline">Section 305 of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454</external-xref>) is amended by striking subsection (b).</text></section></part><part id="H854E6F3B438145E6A7023E08567F9F9D"><enum>2</enum><header>Making space for private secondary markets</header><section id="HC80958288150436DB6D80B6E2FB3086E"><enum>111.</enum><header>Reduction of enterprise conforming loan limits</header><subsection id="H1C78C7C5B0544B8C898897F1D474A2BF"><enum>(a)</enum><header>Fannie Mae</header><text display-inline="yes-display-inline">Paragraph (2) of section 302(b) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) is amended by striking the 7th through 11th sentences and inserting the following: <quote>Such limitations 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 effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, subject to the limitations in this paragraph. Each adjustment shall be made by subtracting from such amount (as it may have been previously adjusted) an amount equal to 20 percent thereof.</quote>.</text></subsection><subsection id="HF32401CAD70D4F4190E8AE5B46E2F998"><enum>(b)</enum><header>Freddie Mac</header><text display-inline="yes-display-inline">Paragraph (2) of section 305(a) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)(2)</external-xref>) is amended by striking the 6th through 10th sentences and inserting the following: <quote>Such limitations 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 effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, subject to the limitations in this paragraph. Each adjustment shall be made by subtracting from such amount (as it may have been previously adjusted) an amount equal to 20 percent thereof.</quote>.</text></subsection></section><section display-inline="no-display-inline" id="H303E490E299348FE83CF9DB4EADE0E44" section-type="subsequent-section"><enum>112.</enum><header>Loan-to-value limitation on enterprise mortgage purchases</header><subsection id="HAE4220E138BE41E8A288424A503FFA53"><enum>(a)</enum><header>Fannie Mae</header><text display-inline="yes-display-inline">Section 302(b) of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H06CABBE0C7794BD7BFA7E19E68ADBD68" style="OLC"><subsection id="H1203EFFC94A64BBFBEEAEB1AD02412B8"><enum>(7)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of law, the corporation may not purchase, or make commitments to purchase, any mortgage on a 1- to 4-family residence if the outstanding principal balance of the mortgage at the time of purchase exceeds 95.0 percent of the value of the property securing the mortgage, except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by reducing such percentage by 1.5 percentage points.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6FFE7299DAE4475D8A72377927960908"><enum>(b)</enum><header>Freddie Mac</header><text display-inline="yes-display-inline">Section 3052(a) of the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HCC8DD6F2DFDF4B19A6D489A91E27B10F" style="OLC"><subsection id="H15C034B37D974D758BE21CF6412A8B0E"><enum>(6)</enum><text display-inline="yes-display-inline">Notwithstanding any other provision of law, the Corporation may not purchase, or make commitments to purchase, any mortgage on a 1- to 4-family residence if the outstanding principal balance of the mortgage at the time of purchase exceeds 95.0 percent of the value of the property securing the mortgage, except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by reducing such percentage by 1.5 percentage points.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="HBFA87D36807A4DB0951AEAF91CA8D80B"><enum>113.</enum><header>Increased capital standards for enterprises</header><subsection id="H797BD24D805948B7885994181DAD36AD"><enum>(a)</enum><header>Termination of risk-Based standard</header><paragraph id="H0F063DA07206455383BC407BD613225C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1361 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611</external-xref>) is amended—</text><subparagraph id="H90755FFFB0374589A3864152EBD75D0B"><enum>(A)</enum><text>in the section heading, by striking <quote><header-in-text level="section" style="OLC">risk-based</header-in-text></quote>; and</text></subparagraph><subparagraph id="H4D304D042AD349A09F5CA5DC5C8EFA98"><enum>(B)</enum><text>in subsection (a)(1), by striking <quote>risk-based</quote> and inserting <quote>non-risk-based</quote>.</text></subparagraph></paragraph><paragraph id="HF0563F5ABAD54E10AA408D7A8E34B940"><enum>(2)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">Subtitle B of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 is amended by striking <quote>risk-based</quote> each place such term appears in the following sections and inserting <quote>required</quote>:</text><subparagraph id="HC4785FEEA6074A0E8DFE2D62E95AA796"><enum>(A)</enum><text>Section 1364(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/4614">12 U.S.C. 4614(a)</external-xref>).</text></subparagraph><subparagraph id="HCEBD7A5EEECA431394D6AA2743DB17D3"><enum>(B)</enum><text>Section 1366(a)(2)(B) (<external-xref legal-doc="usc" parsable-cite="usc/12/4616">12 U.S.C. 4616(a)(2)(B)</external-xref>).</text></subparagraph><subparagraph id="H1CEFBA0513F24A52ABCAB6DFDFECC088"><enum>(C)</enum><text>Section 1369C(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/4622">12 U.S.C. 4622(a)</external-xref>).</text></subparagraph></paragraph></subsection><subsection id="HF9A72C030E4E444DB8128BC45509644F"><enum>(b)</enum><header>Increase in minimum capital levels</header><text display-inline="yes-display-inline">Section 1362(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4612">12 U.S.C. 4612(a)</external-xref>) is amended—</text><paragraph id="H05AD610492A84DA5A4DEB1900A1200B5"><enum>(1)</enum><text>in paragraph (1), by inserting before the semicolon at the end the following: <quote>; except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by increasing such percentage (as it may have been previously adjusted) by 0.7 percentage points</quote>;</text></paragraph><paragraph id="HF6A74017A68744939486DCC3419A6FAF"><enum>(2)</enum><text>in paragraph (2), by inserting before <quote>; and</quote> the following: <quote>; except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by increasing such percentage (as it may have been previously adjusted) by 0.15 percentage points</quote>; and</text></paragraph><paragraph id="H0FE88C29E36A41E7B1885007680857E0"><enum>(3)</enum><text>in paragraph (3), by inserting before the period at the end the following: <quote>; and except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by increasing such percentage (as it may have been previously adjusted) by 0.15 percentage points</quote>.</text></paragraph></subsection><subsection display-inline="no-display-inline" id="H0AB8F07D175B49AB8DFC42248AB868F6"><enum>(c)</enum><header>Increase in critical capital levels</header><text display-inline="yes-display-inline">Section 1363(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4613">12 U.S.C. 4613(a)</external-xref>) is amended—</text><paragraph id="H7F1FEE3285CC4F77880D8C0738E08D2B"><enum>(1)</enum><text>in paragraph (1), by inserting before the semicolon at the end the following: <quote>; except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by increasing such percentage (as it may have been previously adjusted) by 0.7 percentage points</quote>;</text></paragraph><paragraph id="H4744C14D95F648459C14FC90E15D37E9"><enum>(2)</enum><text>in paragraph (2), by inserting before <quote>; and</quote> the following: <quote>; except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by increasing such percentage (as it may have been previously adjusted) by 0.15 percentage points</quote>; and</text></paragraph><paragraph id="H1BE6C9ADBF5F4EC69FA7D80E2BBDAF1E"><enum>(3)</enum><text>in paragraph (3), by inserting before the period at the end the following: <quote>; and except that such percentage shall be adjusted effective January 1 of each year beginning after the effective date of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, by increasing such percentage (as it may have been previously adjusted) by 0.15 percentage points</quote>.</text></paragraph></subsection></section><section id="HEB4B311347684C5A8FC3B3ADDA98F0C1"><enum>114.</enum><header>Enterprise portfolio limitations</header><text display-inline="no-display-inline">The Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4611">12 U.S.C. 4611 et seq.</external-xref>) is amended by striking section 1369E (<external-xref legal-doc="usc" parsable-cite="usc/12/4624">12 U.S.C. 4624</external-xref>) and inserting the following new section:</text><quoted-block display-inline="no-display-inline" id="H5F5CFEE0975145A9B6FB3D5A25E56D30" style="OLC"><section id="H54D520F0C1C946939BAFED5794917A39"><enum>1369E.</enum><header>Restriction on mortgage assets of enterprises</header><subsection id="H6A38D0361D5249EBA3933063B2A1E9AA"><enum>(a)</enum><header>Restriction</header><text display-inline="yes-display-inline">No enterprise shall own, as of any applicable date in this subsection or thereafter, mortgage assets in excess of—</text><paragraph id="HDAC03DB7EBDB41A487E361CCAA6B4807"><enum>(1)</enum><text>as of December 31, 2013, $550,000,000,000; or</text></paragraph><paragraph id="H2CA554A1E90E429095C0B77F4FA24D2E"><enum>(2)</enum><text>as of December 31 of each year thereafter, 80 percent of the aggregate amount of mortgage assets that the enterprise was permitted to own pursuant to this section as of December 31 of the immediately preceding calendar year.</text></paragraph></subsection><subsection id="HABA79FD1CC4F4D53A569E786819EDE2E"><enum>(b)</enum><header>Definition of Mortgage Assets</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>mortgage assets</term> 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).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section></part><part id="H016850418F1D4812B6E2CA0AEF5507FB"><enum>3</enum><header>Abolition of Fannie Mae and Freddie Mac</header><section id="H114491A53E7941EAAC03921E235B91AD"><enum>121.</enum><header>Abolishment of enterprises</header><subsection id="HF6C40203146B409E99CE19005C9850B2"><enum>(a)</enum><header>Repeal of charters</header><paragraph id="H82287CDFAC4246FCAAB1A01CE7A47D5D"><enum>(1)</enum><header>Fannie Mae</header><text>Effective upon the expiration of the 5-year period beginning on the date of the enactment of this Act, the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>) 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—</text><subparagraph commented="no" display-inline="no-display-inline" id="HF8D1A14C07B3417690A4F6CFEA7B8CEF"><enum>(A)</enum><text>outstanding debt obligations of the Federal National Mortgage Association, including any—</text><clause commented="no" display-inline="no-display-inline" id="H938C9B0F43EA45949081A1EABD4E4BD6"><enum>(i)</enum><text>bonds, debentures, notes, or other similar instruments;</text></clause><clause commented="no" display-inline="no-display-inline" id="H5F553B81842E4F90986AB3D07406B86C"><enum>(ii)</enum><text>capital lease obligations; or</text></clause><clause commented="no" display-inline="no-display-inline" id="HF3067B0A19DF46308336E3A8A05F55FB"><enum>(iii)</enum><text>obligations in respect of letters of credit, bankers' acceptances, or other similar instruments; or</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H26CBE7A173984EA8B741B80EA682C447"><enum>(B)</enum><text>mortgage-backed securities guaranteed by the Federal National Mortgage Association.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H676523221073425C83A89D6827867A74"><enum>(2)</enum><header>Freddie Mac</header><text display-inline="yes-display-inline">Effective upon the expiration of the 5-year period beginning on the date of the enactment of this Act, the Federal Home Loan Mortgage Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1451">12 U.S.C. 1451 et seq.</external-xref>) 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—</text><subparagraph commented="no" display-inline="no-display-inline" id="HCD63861874FB4E7D8DAC4E43D70311E0"><enum>(A)</enum><text>outstanding debt obligations of the Federal Home Loan Mortgage Corporation, including any—</text><clause commented="no" display-inline="no-display-inline" id="H1EAAC33CBB064F59966DD1C0BB919B21"><enum>(i)</enum><text>bonds, debentures, notes, or other similar instruments;</text></clause><clause commented="no" display-inline="no-display-inline" id="HB894E12889804E2E92DE3DC68E22DA32"><enum>(ii)</enum><text>capital lease obligations; or</text></clause><clause commented="no" display-inline="no-display-inline" id="H617FB2E85E66488296F2142E231BAAE3"><enum>(iii)</enum><text>obligations in respect of letters of credit, bankers' acceptances, or other similar instruments; or</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3B5CF00F6A7F4F71B1DFA79648FD06A0"><enum>(B)</enum><text>mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation.</text></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA0E95B5F34CB46AFA6890390BDC59735"><enum>(3)</enum><header>Existing guarantee obligations</header><subparagraph id="H41EC1B4EEB9643EEB32727F0B097CED4"><enum>(A)</enum><header>Explicit guarantee</header><text>The 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).</text></subparagraph><subparagraph id="H837458FE67BE4428A7F9F06EC00DFEDF"><enum>(B)</enum><header>Applicability</header><text display-inline="yes-display-inline">Except for amounts determined necessary for use for winding up the affairs of the enterprises pursuant to subsection (b), all guarantee fee amounts derived from the mortgage guarantee business of the enterprises in existence as of the expiration of the 5-year period beginning on the date of the enactment of this Act shall be deposited into the Treasury of the United States, for purposes of deficit reduction.</text></subparagraph></paragraph></subsection><subsection id="H7033887D1F5E4D49BB6297400136CA88"><enum>(b)</enum><header>Wind-Down of enterprises</header><paragraph commented="no" id="H698611C3EECA4476ABF6F64E12112F5D"><enum>(1)</enum><header>Termination of current conservatorship</header><text display-inline="yes-display-inline">Upon the expiration of the 5-year period beginning on the date of the enactment of this Act, the Director of the Federal Housing Finance Agency shall, with respect to each enterprise, appoint the Federal Housing Finance Agency as receiver under section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 and carry out such receivership under the authority of such section and in accordance with this Act and any amendments made by this Act.</text></paragraph><paragraph id="HACDD16707DC54DE29C85F4701494A5C7"><enum>(2)</enum><header>Wind down</header><text>During the 5-year period that begins upon the date of the enactment of this Act, the Director of the Federal Housing Finance Agency, in consultation with the Secretary of the Treasury, shall take such action, and may prescribe such regulations and procedures, as may be necessary and consistent with the receiverships pursuant to paragraph (1) 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.</text></paragraph><paragraph display-inline="no-display-inline" id="H5FFE3A35D75B4DDFBC91C69B0A38B8E2"><enum>(3)</enum><header>Division of assets and liabilities; authority to establish holding corporation and dissolution trust fund</header><text>The action and procedures required under paragraph (2)—</text><subparagraph id="H4870C0101B5E448DBBD5B56139E08836"><enum>(A)</enum><text>shall include the establishment and execution of plans to provide for an equitable division, distribution, and liquidation of the assets and liabilities of each enterprise, including any infrastructure, property, including intellectual property, platforms, or any other thing or object of value, provided that such plans shall—</text><clause id="H3562B6236AD84EC99F30DF9154C96485"><enum>(i)</enum><text>provide for the sale, at auction, of the servicing rights to mortgages guaranteed by an enterprise under terms that ensure that a purchaser of such servicing rights shall assume a first loss position in the event of a default under such a mortgage in an amount equal to 20 percent of the aggregate amount of such loss and the Federal Government shall be liable to the purchaser for the remainder of such loss;</text></clause><clause id="H83AD5A023B0B4B08B50E785E8498BAF9"><enum>(ii)</enum><text>provide for the sale, at auction, of any other assets of an enterprise having value; and</text></clause><clause id="HC251A940A14C4081B643C3A0D3C05AF3"><enum>(iii)</enum><text>comply with the requirements of this Act and any amendments made by this Act;</text></clause></subparagraph><subparagraph id="HEF1F0BA6249F424BB53C2A7FE35EEE05"><enum>(B)</enum><text display-inline="yes-display-inline">may provide for establishment of 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</text></subparagraph><subparagraph id="HFA7626BB4A0F4E6693D0B14ADA22014E"><enum>(C)</enum><text display-inline="yes-display-inline">shall provide for establishment of one or more trusts to which to transfer—</text><clause id="H5E16AED6AD904FCFA11CCC9BFD78138C"><enum>(i)</enum><text>outstanding debt obligations of an enterprise; or</text></clause><clause id="HFE2974DD884D47928E3949D505770F21"><enum>(ii)</enum><text>outstanding mortgages held for the purpose of collateralizing mortgage-backed securities guaranteed by an enterprise.</text></clause></subparagraph></paragraph></subsection><subsection id="H3C0FF2AD5DEA410E9B621A47FA146751"><enum>(c)</enum><header>Conforming amendments to Federal Home Loan Bank Act</header><text>Effective upon the expiration of the 5-year period that begins on the date of the enactment of this Act, the Federal Home Loan Bank Act is amended—</text><paragraph id="H3B95B79ADDC543479F7C7CD3B73C0C00"><enum>(1)</enum><text>in section 10(a)(3)(B) (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(a)(3)(B)</external-xref>), by striking <quote>(including without limitation, mortgage-backed securities issued or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Corporation, and the Government National Mortgage Association)</quote>; and</text></paragraph><paragraph id="HA09C63C5FB94491990061E80F1BF92FA"><enum>(2)</enum><text>in section 16(a) (<external-xref legal-doc="usc" parsable-cite="usc/12/1436">12 U.S.C. 1436(a)</external-xref>), by striking <quote>, in obligations, participations, or other instruments</quote> and all that follows through <quote>section 306 of the Federal Home Loan Mortgage Corporation Act,</quote>.</text></paragraph></subsection></section></part></subtitle><subtitle id="H07F41F5D77E24E23B0025D6BF10FDC51"><enum>B</enum><header>Termination of Insurance for Banks’ Mortgage Lending</header><part id="HF3508C0D4D824C748823652F8980838A"><enum>1</enum><header>Immediate reforms of FHA credit programs</header><section id="H0A16563203544F128CA18038FBD89ADF"><enum>131.</enum><header>FHA lender repurchase requirement</header><text display-inline="no-display-inline">Title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>) is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H4325D0A6F583405D8ACED981C3A51F71" style="OLC"><section id="H3172D41EC1B8483BAD89B0A625DF5925"><enum>259.</enum><header>Lender repurchase requirement</header><text display-inline="no-display-inline">The Secretary may not newly insure any mortgage on a 1- to 4-family residential property unless the mortgagee under such mortgage enters into such binding agreements as the Secretary considers necessary to ensure that, if the mortgagor is in default with respect to the mortgagor’s obligation to make payments under the mortgage for 30 or more consecutive days during the 6-month period beginning upon origination of the mortgage, the mortgagee will, upon notice by the Secretary, repurchase such mortgage in an amount equal to the remaining principal obligation under the mortgage, as determined in accordance with guidelines issued by the Secretary.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section display-inline="no-display-inline" id="H146EC4C1F575489EB90B180EAB77802A"><enum>132.</enum><header>Prohibition of FHA mortgage insurance for cash-out refinancings</header><text display-inline="no-display-inline">Title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="HB14FBEF2BD2F4086BB439EA3AAE0D1B0" style="OLC"><section id="H254C6C9A04B04415BC46EB9BA895C4CC"><enum>260.</enum><header>Prohibition of cash-out refinancings</header><text display-inline="no-display-inline">The Secretary may not newly insure any mortgage on a 1- to 4-family residential property under which—</text><paragraph id="H8E79DA5AD9CD490E937459B56200EE22"><enum>(1)</enum><text>a portion of the mortgage proceeds are used to prepay or pay off the outstanding principal obligation under an existing mortgage or loan secured by the same residential property; and</text></paragraph><paragraph id="HC01F223162D148F89F1B1257284FCE04"><enum>(2)</enum><text>any portion of the mortgage proceeds are used for any purpose other than to prepay or pay off such existing mortgage and for any settlement costs in connection with such mortgage, as determined in accordance with guidelines issued by the Secretary.</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H2EE04022D7A54A8583F12956B9EC98E2"><enum>133.</enum><header>FHA limitation on seller concessions</header><text display-inline="no-display-inline">Title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="HBF86F2F0BBA448548AA6E1B5B580185D" style="OLC"><section id="H2ABBADE936C1433694248A2ADF4C5FC5"><enum>261.</enum><header>Limitation on seller concessions</header><text display-inline="no-display-inline">The Secretary may not newly insure any mortgage on a 1- to 4-family residential property with respect to which the seller of the property subject to such mortgage (or any third party or entity that is reimbursed directly or indirectly by the seller) contributes toward the acquisition of the property by the mortgagor any amount in excess of 3 percent of the total closing costs (as determined by the Secretary) in connection with such acquisition.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></section></part><part id="H664DC67E35994E4CBAF64D91A41B081A"><enum>2</enum><header>Reducing taxpayer guarantees of mortgages</header><section id="H0B968A3453314DFE85037C98D6FA9744"><enum>141.</enum><header>Reduction of FHA mortgage insurance coverage</header><text display-inline="no-display-inline">Title II of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H3FB8BCB3C5094183B4C918D9CBFBCC9D" style="OLC"><section id="H4DDAFCC58CC54CC0BEFF08AED201B47E"><enum>262.</enum><header>Reduction of mortgage insurance coverage</header><text display-inline="no-display-inline">Notwithstanding any other provision of this title, the Secretary may not insure, or make any commitment to insure, any portion of any mortgage on a 1- to 4-family residential property in excess of the amount equal to the following percentage of the original principal obligation of the mortgage:</text><paragraph id="HB393B0CBFB6A49CB9D3F11D5BBA36BD1"><enum>(1)</enum><text display-inline="yes-display-inline">In the case of any such mortgage insured after the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, 80 percent of such original principal obligation, subject to paragraphs (2) through (5).</text></paragraph><paragraph id="H96D27824854446E3B55F99B0752D60EF"><enum>(2)</enum><text>In the case of any such mortgage insured after the expiration of the 1-year period beginning on the date of the enactment of such Act, 70 percent of such original principal obligation, subject to paragraphs (3) through (5).</text></paragraph><paragraph id="H696653B671DA48478C61138E34A145DC"><enum>(3)</enum><text display-inline="yes-display-inline">In the case of any such mortgage insured after the expiration of the 2-year period beginning on the date of the enactment of such Act, 60 percent of such original principal obligation, subject to paragraphs (4) through (5).</text></paragraph><paragraph id="H26DC98F614C74ECA80088CA2083B06BC"><enum>(4)</enum><text display-inline="yes-display-inline">In the case of any such mortgage insured after the expiration of the 3-year period beginning on the date of the enactment of such Act, 50 percent of such original principal obligation, subject to paragraph (5).</text></paragraph><paragraph id="H4F1F4AF9EDC44E31800D71BAC319DD5A"><enum>(5)</enum><text display-inline="yes-display-inline">In the case of any such mortgage insured after the expiration of the 4-year period beginning on the date of the enactment of such Act, 40 percent of such original principal obligation.</text></paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H5F2FC2C7B6874046ACDAFA2B9BF4DE0E"><enum>142.</enum><header>Increase in FHA downpayment requirement</header><text display-inline="no-display-inline">Subparagraph (A) of section 203(b)(9) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(9)(A)</external-xref>) is amended—</text><paragraph id="H44604E1B24F94E13B6ED64164670BA32"><enum>(1)</enum><text>by striking <quote>(A) <header-in-text level="subparagraph" style="OLC">In general</header-in-text>.—A mortgage</quote> and inserting the following:</text><quoted-block display-inline="no-display-inline" id="H515F91F29657472E8E13D21D44C43B65" style="OLC"><subparagraph id="H2F2E146B55234445A05FFBABE087FB02"><enum>(A)</enum><header>In general</header><clause id="HC5AFBCDBEAE142DA95A341F9397B4065"><enum>(i)</enum><header>Payment requirement</header><text display-inline="yes-display-inline">A mortgage</text></clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></paragraph><paragraph id="H6DC8003C30694F86A4EEBDD174E4E6F9"><enum>(2)</enum><text>by striking <quote>3.5 percent of the appraised value of the property</quote> and inserting <quote>the percentage of the appraised value of the property specified in clause (ii)</quote>; and</text></paragraph><paragraph id="H6D55DCAE57184A2DBCFDE27A3B234865"><enum>(3)</enum><text>by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="H1FCCE46B669E4D329A2544BDF9570C93" style="OLC"><clause id="HFEED6FC6FDA34041A696808804AFD8C8"><enum>(ii)</enum><header>Percentage of appraised value of property</header><text display-inline="yes-display-inline">The percentage of the appraised value of a property specified in this clause is—</text><subclause id="H5CB31CAB35764DF0A0A3BF354E33A30A"><enum>(I)</enum><text>for a mortgage insured under this section after the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, 5.0 percent, subject to subclauses (II) through (V);</text></subclause><subclause id="HDFC1DC56C8504446B94A77BFD8C7EC23"><enum>(II)</enum><text>for a mortgage insured under this section after the expiration of the 1-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, 6.5 percent, subject to subclauses (III) through (V);</text></subclause><subclause id="H8D396B2B911B449CAB9596881656C7BE"><enum>(III)</enum><text display-inline="yes-display-inline">for a mortgage insured under this section after the expiration of the 2-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, 8.0 percent, subject to subclauses (IV) and (V);</text></subclause><subclause id="HE211D64FFA0440CBB820B14B1953E499"><enum>(IV)</enum><text display-inline="yes-display-inline">for a mortgage insured under this section after the expiration of the 3-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, 9.5 percent, subject to subclause (V); and</text></subclause><subclause id="H92022E6113FA45C3895BAB87450D0C4A"><enum>(V)</enum><text display-inline="yes-display-inline">for a mortgage insured under this section after the expiration of the 4-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, 11.0 percent.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section></part><part id="H220AFD7DD5DF42BD9D11787952007113"><enum>3</enum><header>Termination of FHA credit guarantees</header><section id="HC38D078249934DF0A4BEB17FE09865C5"><enum>151.</enum><header>Termination of FHA insurance authority</header><subsection id="H97D38A3940C344F692BC36BBAEB942C4"><enum>(a)</enum><header>Termination</header><text display-inline="yes-display-inline">Effective upon the expiration of the 5-year period beginning on the date of the enactment of this Act, the Secretary of Housing and Urban Development may not insure, guarantee, or make any mortgage or other loan pursuant to any of the following provisions of law:</text><paragraph id="H58CDD00134D542169ECD6A4156B64D95"><enum>(1)</enum><header>National Housing Act</header><text>Titles I, II, V, VI, VII, VIII, IX, and XI of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1702">12 U.S.C. 1702 et seq.</external-xref>, 1707 et seq., 1731a et seq., 1736 et seq., 1747 et seq., 1748 et seq., 1750 et seq., 1749aaa et seq.).</text></paragraph><paragraph id="H07949C0C6C2C4AF5BB4433BB79C3C7F7"><enum>(2)</enum><header>Energy efficient mortgages program</header><text display-inline="yes-display-inline">Section 106 of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701z-16">12 U.S.C. 1701z–16</external-xref>) or section 513 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="public-law" parsable-cite="pl/102/550">Public Law 102–550</external-xref>; 106 Stat. 3786).</text></paragraph><paragraph commented="no" id="HC16B7F2A9822455E808AE5D1F99FD834"><enum>(3)</enum><header>Flexible subsidy program</header><text display-inline="yes-display-inline">Section 201 of the Housing and Community Development Amendments of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-1a">12 U.S.C. 1715z–1a</external-xref>).</text></paragraph><paragraph id="HC9931B486649406AA18D5448BAB56649"><enum>(4)</enum><header>Loan guarantees for Indian housing</header><text>Section 184 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13a">12 U.S.C. 1715z–13a</external-xref>).</text></paragraph><paragraph id="HD542EA7856D9463D9FF1A4FB51314649"><enum>(5)</enum><header>Loan guarantees for Native Hawaiian housing</header><text display-inline="yes-display-inline">Section 184A of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13b">12 U.S.C. 1715z–13b</external-xref>).</text></paragraph><paragraph id="HA572D74E1E5F4C9A9B40830616C66FF1"><enum>(6)</enum><header>Multifamily mortgage credit program</header><text>Section 542 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-22">12 U.S.C. 1715z–22</external-xref>).</text></paragraph></subsection><subsection id="HFD458C13EF6B49C2A7DFF8241BF25F1F"><enum>(b)</enum><header>Repeals</header><text>Effective upon the expiration of the period referred to in subsection (a), the provisions of law specified in such subsection are repealed.</text></subsection><subsection id="H34F3B011602A4EA58DD1F69FDB15F7A2"><enum>(c)</enum><header>Transfer of FHA functions to Secretary of the Treasury</header><text display-inline="yes-display-inline">Effective upon the expiration of the period referred to in subsection (a), all FHA functions are transferred to the Secretary of the Treasury, but only to the extent necessary to fulfill outstanding obligations of the Department of Housing and Urban Development under such provisions and windup the business of the Department of Housing and Urban Development under such provisions.</text></subsection><subsection id="H3B8441C0988E4714A8593780631E0C3E"><enum>(d)</enum><header>Resolution and termination of FHA functions</header><paragraph id="HE30723FAC9B24C14A14EFD03086615F7"><enum>(1)</enum><header>Resolution of functions</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall—</text><subparagraph id="HC9C0051DF15D4E298489015A8FCDFE7F"><enum>(A)</enum><text>complete the disposition and resolution of FHA functions in accordance with this section; and</text></subparagraph><subparagraph id="H83119C58C8A14A029AF5F3563628A2B9"><enum>(B)</enum><text>resolve all FHA functions that are transferred to the Secretary under subsection (c).</text></subparagraph></paragraph><paragraph id="H78EFB07A215A4226B9B374AC8DDE2F18"><enum>(2)</enum><header>Termination of functions</header><text>All FHA functions that are transferred to the Secretary under subsection (c) shall terminate on the date all obligations of the FHA, and all obligations of others to the FHA, in effect immediately before the expiration of the period referred to in subsection (a) have been satisfied, as determined by the Secretary of the Treasury.</text></paragraph><paragraph id="HAA4917640A2040C2B9F943D057F27D8E"><enum>(3)</enum><header>Report to Congress</header><text>Upon making the determination described in paragraph (2), the Secretary of the Treasury shall report the determination to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text></paragraph></subsection><subsection id="H06E3093BD6CE47D4BCC6DAEA9ABD6D0A"><enum>(e)</enum><header>Duties of Secretary of the Treasury</header><paragraph id="H0213575909384C519F72A352EC6887D6"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall be responsible for the implementation of this section, including—</text><subparagraph id="H07C00C1FD2824593B79A2CBEB1AA2172"><enum>(A)</enum><text>the administration and wind-up of all FHA functions transferred to the Secretary under subsection (c);</text></subparagraph><subparagraph id="H8B0EABB72E124F34A54914535F49AD12"><enum>(B)</enum><text>the administration and wind-up of any outstanding obligations of the Federal Government under any programs terminated by this section; and</text></subparagraph><subparagraph id="H4D4D632A42A44B1F9384093916D2AC1A"><enum>(C)</enum><text>taking such other actions as may be necessary to wind-up any outstanding affairs of the FHA.</text></subparagraph></paragraph></subsection><subsection id="H91901F43D3A1445F88ED0665CCB74F18"><enum>(f)</enum><header>Personnel</header><text>Effective upon the expiration of the period referred to in subsection (a), there are transferred to the Department of the Treasury all individuals, who—</text><paragraph id="HDFD1DC74F2E5440BAE5B6BECC9918CA5"><enum>(1)</enum><text>immediately before such expiration, were officers or employees of the Department of Housing and Urban Development; and</text></paragraph><paragraph id="H5B56BF6E948646A1A4D040D2814AF504"><enum>(2)</enum><text>in their capacity as such an officer or employee, performed functions that are transferred to the Secretary under subsection (c).</text></paragraph></subsection><subsection id="H1E3FE04E4AAF4F169E54D0202F60E8F4"><enum>(g)</enum><header>Exercise of authorities</header><text display-inline="yes-display-inline">Except as otherwise provided by law, a Federal official to whom a function is transferred by this section, for purposes of performing the function and subject to subsection (c), exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date of the transfer of the function under this section.</text></subsection><subsection id="HAEB0A7B07AFA45E9AD748572257540A4"><enum>(h)</enum><header>Transfer of assets</header><text>Except as otherwise provided in this section so much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with a function transferred to an official or agency by this section shall be available to the official or the head of that agency, respectively, at such time or times as the Director of the Office of Management and Budget directs for use in connection with the functions transferred.</text></subsection><subsection id="HA11D083F17FA449C92BB864FB6004F27"><enum>(i)</enum><header>Delegation and assignment</header><text>Except as otherwise expressly prohibited by law, an official to whom functions are transferred under this section (including the head of any office to which functions are transferred under this section) may delegate any of the functions so transferred to such officers and employees of the office of the official as the official may designate, and may authorize successive redelegations of such functions as may be necessary or appropriate. No delegation of functions under this subsection or under any other provision of this section shall relieve the official to whom a function is transferred under this section of responsibility for the administration of the function.</text></subsection><subsection id="HD7B2E6001B6F44099A3DEB17B00EB9B0"><enum>(j)</enum><header>Authority of Secretary of the Treasury with respect to functions transferred</header><paragraph id="H27059CBB48FA4A518C57806B720824A6"><enum>(1)</enum><header>Determinations</header><text display-inline="yes-display-inline">If necessary, the Secretary of the Treasury shall make any determination of the functions that are transferred under this section.</text></paragraph><paragraph id="HDB10197509BE4678816235CBFE37DEB6"><enum>(2)</enum><header>Incidental transfers</header><text>The Secretary of the Treasury, at such time or times as the Secretary shall provide, may make such determinations as may be necessary with regard to the functions transferred by this section, and to make such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, as may be necessary to carry out the provisions of this section.</text></paragraph></subsection><subsection display-inline="no-display-inline" id="HE04083AAB7B74A08B6EC81FCF0310F84"><enum>(k)</enum><header>Savings provisions</header><paragraph id="HEBF89E076E774D9C85D9A22DB7FB0A89"><enum>(1)</enum><header>Authority regarding outstanding commitments</header><text>Notwithstanding the repeals under subsection (b), the Secretary may insure, guarantee, or make any mortgage for which a commitment to insure, guarantee, or make was made before the effective date of such repeals under the provision of law repealed. Any such mortgage shall be subject to the terms of the provisions of law repealed as in effect immediately before such repeal.</text></paragraph><paragraph id="HEFB596DBECE64CE38937820C0F1CCABA"><enum>(2)</enum><header>Effect on outstanding mortgage insurance</header><text display-inline="yes-display-inline">Any mortgage insurance, funds, or activities subject, before repeal, to a provision of law repealed by subsection (b) shall continue to be governed by the provision as in effect immediately before repeal.</text></paragraph><paragraph id="HE90E49FC7915496087A62BD9F6E35D64"><enum>(3)</enum><header>Existing rights, duties, and obligations not affected</header><text display-inline="yes-display-inline">Subsections (a) and (b) shall not affect the validity of any right, duty, or obligation of the United States, the Secretary of Housing and Urban Development, or any other person, which—</text><subparagraph id="H3B62A6DD39E64B1B848B38E26DFF0092"><enum>(A)</enum><text>arises under any provision of law repealed by subsection (b); and</text></subparagraph><subparagraph id="H2EFAE0CEAAB54C9BB0AA61B3DC7E602E"><enum>(B)</enum><text>existed immediately before the effective date of such repeals.</text></subparagraph></paragraph><paragraph id="HE9DE8CAD99DF481287AFE19CDC6D20E7"><enum>(4)</enum><header>Legal Documents</header><text display-inline="yes-display-inline">All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges—</text><subparagraph id="H83E3670DB1EF43BF98754050F45C00E0"><enum>(A)</enum><text>that have been issued, made, granted, or allowed to become effective by the Secretary of Housing and Urban Development, any officer or employee of any office transferred by this section, or any other Government official, or by a court of competent jurisdiction, in the performance of any function that is transferred by this section, and</text></subparagraph><subparagraph id="HB53DD9BFF3704A3F933013540B7B300D"><enum>(B)</enum><text>that are in effect upon the expiration of the period referred to in subsection (a) (or become effective after such date pursuant to their terms as in effect upon such expiration), shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, any other authorized official, a court of competent jurisdiction, or operation of law.</text></subparagraph></paragraph><paragraph id="H50690B47AC6B47D391BF78881F1AD630"><enum>(5)</enum><header>Proceedings</header><text>This section shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending upon the expiration of the period referred to in subsection (a) before an office transferred by this section, but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this paragraph shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted.</text></paragraph><paragraph id="HCE38D73E4D1B4D7EAA43BA921B587E8E"><enum>(6)</enum><header>Nonabatement of actions</header><text>No action or other proceeding commenced by or against the Secretary of Housing and Urban Development in connection with functions transferred to the Secretary of the Treasury under subsection (c) shall abate by reason of the enactment of this section, except that the Secretary of the Treasury shall be substituted for the Secretary of Housing and Urban Development as a party to any such action or proceeding.</text></paragraph><paragraph id="H8BCEE3B255224F6D991FF6CFA637CCCA"><enum>(7)</enum><header>Suits</header><text display-inline="yes-display-inline">This section shall not affect suits commenced before the expiration of the period referred to in subsection (a), and in all such suits, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section had not been enacted. If any Government officer in the official capacity of such officer is party to a suit with respect to a function of the officer, and under this section such function is transferred to any other officer or office, then such suit shall be continued with the other officer or the head of such other office, as applicable, substituted or added as a party.</text></paragraph><paragraph id="HCFE1C2EB7B654F53B5C91C6B6E41D8B4"><enum>(8)</enum><header>Administrative Procedure and Judicial Review</header><text display-inline="yes-display-inline">Except as otherwise provided by this section, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to any function transferred by this section shall apply to the exercise of such function by the head of the Federal agency, and other officers of the agency, to which such function is transferred by this section.</text></paragraph></subsection><subsection id="HBAB3344A7B444E68A41A7D7CDF6862DD"><enum>(l)</enum><header>Availability of existing funds</header><text display-inline="yes-display-inline">Existing appropriations and funds available for the performance of functions, programs, and activities terminated pursuant to this section shall remain available, for the duration of their period of availability, for necessary expenses in connection with the termination and resolution of such functions, programs, and activities. Upon the expiration of all contracts and agreements with respect to such functions, programs, and activities, any unexpended balances of the funds referred to in this subsection shall be deposited in the Treasury as miscellaneous receipts.</text></subsection><subsection id="H320425C81CA7481C97118F027CE226AB"><enum>(m)</enum><header>References</header><text display-inline="yes-display-inline">Any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a department or office from which a function is transferred by this section—</text><paragraph id="H95805E1FAE7F45B497D7829FB5FCC839"><enum>(1)</enum><text>to the head of such department or office is deemed to refer to the head of the department or office to which the function is transferred; or</text></paragraph><paragraph id="H9E532D71126447EB8DD44D11EA77CFA9"><enum>(2)</enum><text>to such department or office is deemed to refer to the department or office to which the function is transferred.</text></paragraph></subsection><subsection id="H0818A44DB7A94C99AD4E47C381A0DB7D"><enum>(n)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text><paragraph id="H21134B02AC0141259E5E96A7D5B39828"><enum>(1)</enum><header>FHA</header><text display-inline="yes-display-inline">The term <term>FHA</term> means the Secretary of Housing and Urban Development, but only to the extent of the operations, authority, and functions of the Secretary pursuant to the provisions of law repealed by subsection (b).</text></paragraph><paragraph id="HAF72C9E23211415983B43E8E73D040FF"><enum>(2)</enum><header>FHA functions</header><text display-inline="yes-display-inline">The term <term>FHA functions</term> means functions under the provisions of law repealed by subsection (b) that, immediately before the effective date of such repeals, are authorized to be performed by the Secretary of Housing and Urban Development or any officer or employee of the Department of Housing and Urban Development, or any office of the Department of Housing and Urban Development.</text></paragraph><paragraph id="HD738603FE5CD46178DC185806EEA7287"><enum>(3)</enum><header>Function</header><text display-inline="yes-display-inline">The term <term>function</term> includes any duty, obligation, power, authority, responsibility, right, privilege, activity, or program.</text></paragraph><paragraph id="HCCA91E300FDB420DAF1B85ACA229206E"><enum>(4)</enum><header>Office</header><text>The term <term>office</term> includes any office, administration, agency, bureau, institute, council, unit, organizational entity, or component thereof.</text></paragraph></subsection></section></part></subtitle><subtitle id="HACB44514E6834338BD72A1E0F266206C"><enum>C</enum><header>Ending guarantees for Government mortgage-Backed securities</header><section id="H1702E1DF70B34FF9B64B4535BA74E619"><enum>161.</enum><header>Limitation on GNMA guarantees</header><text display-inline="no-display-inline">Subsection (g) of section 306 of the Federal National Mortgage Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1721">12 U.S.C. 1721(g)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H5839EA8A41C3479A9F08F4E6396283BB" style="OLC"><paragraph id="H17CA1C415FDC49F2BCAFE2FA1485D1D5" indent="up1"><enum>(4)</enum><text display-inline="yes-display-inline">The Association may not enter into commitments to issue guarantees under this subsection in an aggregate amount—</text><subparagraph id="H0E28A2D299D54994A2847A6E1708E663"><enum>(A)</enum><text>in any month commencing after the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, that exceeds $38,000,000,000, subject to subparagraphs (B) through (F);</text></subparagraph><subparagraph id="HAFC937E1C93743719850CB829496BBF4"><enum>(B)</enum><text>in any month commencing after the expiration of the 1-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, that exceeds $32,000,000,000, subject to subparagraphs (C) through (F);</text></subparagraph><subparagraph id="HF64EC8B46DFC44FEA64AE9FCA7C9DA7C"><enum>(C)</enum><text display-inline="yes-display-inline">in any month commencing after the expiration of the 2-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, that exceeds $24,000,000,000, subject to subparagraphs (D) through (F);</text></subparagraph><subparagraph id="H00AFDFC07EAE4BC98C29336A1649216A"><enum>(D)</enum><text display-inline="yes-display-inline">in any month commencing after the expiration of the 3-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, that exceeds $16,000,000,000, subject to subparagraphs (E) and (F);</text></subparagraph><subparagraph id="HF688ECE8A9F049D0987CD073449D057A"><enum>(E)</enum><text display-inline="yes-display-inline">in any month commencing after the expiration of the 4-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, that exceeds $8,000,000,000, subject to subparagraph (F); and</text></subparagraph><subparagraph id="H4E99D8483DA24354974D9A968E6F6E35"><enum>(F)</enum><text display-inline="yes-display-inline">in any month commencing after the expiration of the 5-year period beginning on the date of the enactment of the <short-title>New Fair Deal Banking and Housing Stability Act of 2013</short-title>, that exceeds $0.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HD2766C49B9184B288AA72A46D264CEFB"><enum>162.</enum><header>Abolishment of Ginnie Mae</header><subsection id="HBD4CF68BBD4B43B4ACA85E96300B0DFC"><enum>(a)</enum><header>Abolishment and transfer</header><text display-inline="yes-display-inline">Effective upon the expiration of the 5-year period beginning on the date of the enactment of this Act—</text><paragraph id="H283DC825A81D44FBBEFDCADCC08409FE"><enum>(1)</enum><text>the Government National Mortgage Association is abolished; and</text></paragraph><paragraph id="H119DAE133E444EDC93637EF19CC04FDB"><enum>(2)</enum><text display-inline="yes-display-inline">all functions that, immediately before the expiration of such period are authorized to be performed by the Association, any officer or employee of the Association acting in that capacity, or any office of the Association, are transferred to the Secretary of the Treasury.</text></paragraph></subsection><subsection id="H61574620C36B433FA2A3E7194CCF337F"><enum>(b)</enum><header>Repeals</header><paragraph id="H37D671810BC44A6AA65A28144C045D68"><enum>(1)</enum><header>Charter</header><text display-inline="yes-display-inline">For provisions repealing the organic authority of the Government National Mortgage Association, see section 121(a)(1) of this Act.</text></paragraph><paragraph id="H10CD03C552E24DAB8E0FF7EB347403BF"><enum>(2)</enum><header>Administrative expenses provision</header><text display-inline="yes-display-inline">Effective upon the expiration of the period referred to in subsection (a), subsection (b) of section 306 of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1721">12 U.S.C. 1721</external-xref> note) is hereby repealed.</text></paragraph></subsection><subsection id="H72232FE699014CA79690A1CDD1C2FEE2"><enum>(c)</enum><header>Resolution and termination of FHA functions</header><paragraph id="HF056D610FD8244778011CE206B440ED1"><enum>(1)</enum><header>Resolution of functions</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall—</text><subparagraph id="H6668766BC2304EE5A80F942A751FECB9"><enum>(A)</enum><text>complete the disposition and resolution of FHA functions in accordance with this section; and</text></subparagraph><subparagraph id="H0348374E330A4B45840A442ACF94CB0D"><enum>(B)</enum><text>resolve all FHA functions that are transferred to the Secretary under subsection (a)(2).</text></subparagraph></paragraph><paragraph id="H89F9939848A94404A71DA93C48E0F068"><enum>(2)</enum><header>Termination of functions</header><text>All FHA functions that are transferred to the Secretary under subsection (a)(2) shall terminate on the date all obligations of the FHA, and all obligations of others to the FHA, in effect immediately before the expiration of the period referred to in subsection (a) have been satisfied, as determined by the Secretary of the Treasury.</text></paragraph><paragraph id="H222B1A1977F84032B03D20A579AAAEA1"><enum>(3)</enum><header>Report to Congress</header><text>Upon making the determination described in paragraph (2), the Secretary of the Treasury shall report the determination to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.</text></paragraph></subsection><subsection id="HEDA213E70440410187E0E5FC198096B2"><enum>(d)</enum><header>Duties of Secretary of the Treasury</header><paragraph id="H58380BAB90924547B2589E5E5351A551"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall be responsible for the implementation of this section, including—</text><subparagraph id="HC1A3F38E29C844E1A018718A95A7A9E4"><enum>(A)</enum><text>the administration and wind-up of all FHA functions transferred to the Secretary under subsection (c);</text></subparagraph><subparagraph id="H9364B07EB24B42A99C7AE5160011DAF3"><enum>(B)</enum><text>the administration and wind-up of any outstanding obligations of the Federal Government under any programs terminated by this section; and</text></subparagraph><subparagraph id="H1184940D507D4BFEA62CA5CAF79F8668"><enum>(C)</enum><text>taking such other actions as may be necessary to wind-up any outstanding affairs of the FHA.</text></subparagraph></paragraph></subsection><subsection id="H4BE9D5850C58449CBFFABBE09FA6F870"><enum>(e)</enum><header>Personnel</header><text>Effective upon the expiration of the period referred to in subsection (a), there are transferred to the Department of the Treasury all individuals, who—</text><paragraph id="HA4D71197F43340CA99A6F87A151BEF5A"><enum>(1)</enum><text>immediately before such expiration, were officers or employees of the Department of Housing and Urban Development; and</text></paragraph><paragraph id="H152FD92F01744688A049ED04C58F17D5"><enum>(2)</enum><text>in their capacity as such an officer or employee, performed functions that are transferred to the Secretary under subsection (c).</text></paragraph></subsection><subsection id="HC874F6BD3A8C4780BDA21B1D6ECDF8DF"><enum>(f)</enum><header>Exercise of authorities</header><text display-inline="yes-display-inline">Except as otherwise provided by law, a Federal official to whom a function is transferred by this section, for purposes of performing the function, exercise all authorities under any other provision of law that were available with respect to the performance of that function to the official responsible for the performance of the function immediately before the effective date of the transfer of the function under this section.</text></subsection><subsection id="H0BBEEBCE86F7422E9CD2E8D3B218244C"><enum>(g)</enum><header>Transfer of assets</header><text>Except as otherwise provided in this section so much of the personnel, property, records, and unexpended balances of appropriations, allocations, and other funds employed, used, held, available, or to be made available in connection with a function transferred to an official or agency by this section shall be available to the official or the head of that agency, respectively, at such time or times as the Director of the Office of Management and Budget directs for use in connection with the functions transferred.</text></subsection><subsection id="H9FABB4F5842244BC8EAC6ED37664B8ED"><enum>(h)</enum><header>Delegation and assignment</header><text>Except as otherwise expressly prohibited by law, an official to whom functions are transferred under this section (including the head of any office to which functions are transferred under this section) may delegate any of the functions so transferred to such officers and employees of the office of the official as the official may designate, and may authorize successive redelegations of such functions as may be necessary or appropriate. No delegation of functions under this subsection or under any other provision of this section shall relieve the official to whom a function is transferred under this section of responsibility for the administration of the function.</text></subsection><subsection id="H6DE0C9FC74CC4B7D8999941025A6F5D2"><enum>(i)</enum><header>Authority of Secretary of the Treasury with respect to functions transferred</header><paragraph id="H15766B8D9378456FB88CF017DAE3871F"><enum>(1)</enum><header>Determinations</header><text display-inline="yes-display-inline">If necessary, the Secretary of the Treasury shall make any determination of the functions that are transferred under this section.</text></paragraph><paragraph id="HBB2227F5A1884D27BB68FE7463A6CC36"><enum>(2)</enum><header>Incidental transfers</header><text>The Secretary of the Treasury, at such time or times as the Secretary shall provide, may make such determinations as may be necessary with regard to the functions transferred by this section, and to make such additional incidental dispositions of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with such functions, as may be necessary to carry out the provisions of this section.</text></paragraph></subsection><subsection display-inline="no-display-inline" id="H728A283D320B4BC7BAD23FB660A19665"><enum>(j)</enum><header>Savings provisions</header><paragraph id="HB9547889DF064F7BB893F7787437E0A8"><enum>(1)</enum><header>Authority regarding outstanding commitments</header><text>Notwithstanding the repeals under subsection (b), the Secretary may insure any mortgage for which a commitment to insure was made before the effective date of such repeals under the provision of law repealed. Any such mortgage shall be subject to the terms of the provisions of law repealed as in effect immediately before such repeal.</text></paragraph><paragraph id="HDBC7B24C691142499CF4DB68455332F6"><enum>(2)</enum><header>Effect on outstanding mortgage insurance</header><text display-inline="yes-display-inline">Any mortgage insurance, funds, or activities subject, before repeal, to a provision of law repealed by subsection (b) shall continue to be governed by the provision as in effect immediately before repeal.</text></paragraph><paragraph id="H301CCBC0E4AB4F1AAB2F3B9EC0A1C1BA"><enum>(3)</enum><header>Existing rights, duties, and obligations not affected</header><text display-inline="yes-display-inline">Subsections (a) and (b) shall not affect the validity of any right, duty, or obligation of the United States, the Secretary of Housing and Urban Development, or any other person, which—</text><subparagraph id="H63C62D27A7EC4DBDB1D920B76928B68C"><enum>(A)</enum><text>arises under any provision of law repealed by subsection (b); and</text></subparagraph><subparagraph id="H57E55D0FC003420DB0B116A9044C335B"><enum>(B)</enum><text>existed immediately before the effective date of such repeals.</text></subparagraph></paragraph><paragraph id="HB3E80CD0EB324E69839F4751D120E0A1"><enum>(4)</enum><header>Legal Documents</header><text display-inline="yes-display-inline">All orders, determinations, rules, regulations, permits, grants, loans, contracts, agreements, certificates, licenses, and privileges—</text><subparagraph id="HA4B299ABD3854EC8BDFD2C1A8AB87F8B"><enum>(A)</enum><text>that have been issued, made, granted, or allowed to become effective by the Secretary of Housing and Urban Development, any officer or employee of any office transferred by this section, or any other Government official, or by a court of competent jurisdiction, in the performance of any function that is transferred by this section, and</text></subparagraph><subparagraph id="H5076CA3634EF44F98CF7C63F6D3BFE2A"><enum>(B)</enum><text>that are in effect upon the expiration of the period referred to in subsection (a) (or become effective after such date pursuant to their terms as in effect upon such expiration), shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with law by the President, any other authorized official, a court of competent jurisdiction, or operation of law.</text></subparagraph></paragraph><paragraph id="H201A602B8380429EBB20966ADF631A3F"><enum>(5)</enum><header>Proceedings</header><text>This section shall not affect any proceedings or any application for any benefits, service, license, permit, certificate, or financial assistance pending upon the expiration of the period referred to in subsection (a) before an office transferred by this section, but such proceedings and applications shall be continued. Orders shall be issued in such proceedings, appeals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section had not been enacted, and orders issued in any such proceeding shall continue in effect until modified, terminated, superseded, or revoked by a duly authorized official, by a court of competent jurisdiction, or by operation of law. Nothing in this paragraph shall be considered to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted.</text></paragraph><paragraph id="HB4A151FDDFAB49E6B322C5D209FE330A"><enum>(6)</enum><header>Nonabatement of actions</header><text>No action or other proceeding commenced by or against the Secretary of Housing and Urban Development in connection with functions transferred to the Secretary of the Treasury under subsection (c) shall abate by reason of the enactment of this section, except that the Secretary of the Treasury shall be substituted for the Secretary of Housing and Urban Development as a party to any such action or proceeding.</text></paragraph><paragraph id="H7022B669A86648359AAF289DC2E05E3D"><enum>(7)</enum><header>Suits</header><text display-inline="yes-display-inline">This section shall not affect suits commenced before the expiration of the period referred to in subsection (a), and in all such suits, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this section had not been enacted. If any Government officer in the official capacity of such officer is party to a suit with respect to a function of the officer, and under this section such function is transferred to any other officer or office, then such suit shall be continued with the other officer or the head of such other office, as applicable, substituted or added as a party.</text></paragraph><paragraph id="HEA1DDFC5FBA44E4B811BA8CBE2C52D11"><enum>(8)</enum><header>Administrative Procedure and Judicial Review</header><text display-inline="yes-display-inline">Except as otherwise provided by this section, any statutory requirements relating to notice, hearings, action upon the record, or administrative or judicial review that apply to any function transferred by this section shall apply to the exercise of such function by the head of the Federal agency, and other officers of the agency, to which such function is transferred by this section.</text></paragraph></subsection><subsection id="H1C4F0AAAD52C4B13B4CB65A10F8CB3FA"><enum>(k)</enum><header>Availability of existing funds</header><text display-inline="yes-display-inline">Existing appropriations and funds available for the performance of functions, programs, and activities terminated pursuant to this section shall remain available, for the duration of their period of availability, for necessary expenses in connection with the termination and resolution of such functions, programs, and activities. Upon the expiration of all contracts and agreements with respect to such functions, programs, and activities, any unexpended balances of the funds referred to in this subsection shall be deposited in the Treasury as miscellaneous receipts.</text></subsection><subsection id="HD01B0B6813BC4D9D8D5839D1F04593E4"><enum>(l)</enum><header>References</header><text display-inline="yes-display-inline">Any reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or pertaining to a department or office from which a function is transferred by this section—</text><paragraph id="HDB4F8CB23304418EA24B4CF488051F9E"><enum>(1)</enum><text>to the head of such department or office is deemed to refer to the head of the department or office to which the function is transferred; or</text></paragraph><paragraph id="H0C643AB1DDB041AC95EA9C108327130E"><enum>(2)</enum><text>to such department or office is deemed to refer to the department or office to which the function is transferred.</text></paragraph></subsection><subsection id="H5F45F4CA12AB468C9F8FD0FA52ECA145"><enum>(m)</enum><header>Definitions</header><text>For purposes of this section, the following definitions shall apply:</text><paragraph id="HF119D1D1E1C54A48A50675AACFF5BDCD"><enum>(1)</enum><header>Association</header><text display-inline="yes-display-inline">The term <term>Association</term> means the Government National Mortgage Association.</text></paragraph><paragraph id="HCA6EB9817BC84308AF24D4CF211471DD"><enum>(2)</enum><header>Function</header><text display-inline="yes-display-inline">The term <term>function</term> includes any duty, obligation, power, authority, responsibility, right, privilege, activity, or program.</text></paragraph><paragraph id="HCFD9638DD356432CAA0836CDB4DDEC27"><enum>(3)</enum><header>Office</header><text>The term <term>office</term> includes any office, administration, agency, bureau, institute, council, unit, organizational entity, or component thereof.</text></paragraph><paragraph id="H4748D45A776C4B8B845306656ABF14D0"><enum>(4)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Treasury.</text></paragraph></subsection></section></subtitle><subtitle id="HF30F63829EE74EEE8C4BF7E1C06BC548"><enum>D</enum><header>Repealing regulations that promote risky lending</header><section id="HAAD7A2B1858B4204B15161E117AE8412"><enum>171.</enum><header>Repeal of the Community Reinvestment Act of 1977</header><text display-inline="no-display-inline">The Community Reinvestment Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/12/2901">12 U.S.C. 2901 et seq.</external-xref>) is hereby repealed.</text></section><section id="H5CD00FCBB5BC4A5188EB93DB080880BC"><enum>172.</enum><header>Repeal of Dodd-Frank credit risk retention provisions</header><subsection id="HEAC365285B8047E285156014CAEF690C"><enum>(a)</enum><header>Credit risk retention</header><text display-inline="yes-display-inline">Section 15G of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-11">15 U.S.C. 78o–11</external-xref>) is hereby repealed.</text></subsection><subsection id="H732D59A9211349CE856CB8BC68E652C7"><enum>(b)</enum><header>Study</header><text>Subsection (c) of section 941 of the Dodd-Frank Wall Street Reform and Consumer Protection Act is hereby repealed.</text></subsection></section><section display-inline="no-display-inline" id="HA520EBC152FB42D1ACA732F5997CC02D" section-type="subsequent-section"><enum>173.</enum><header>Repeal of Dodd-Frank ability to repay and qualified mortgage provisions</header><text display-inline="no-display-inline">Section 129C of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1639c">15 U.S.C. 1639c</external-xref>) is amended—</text><paragraph id="HD3B37594508847E995D8C52D001A931B"><enum>(1)</enum><text>by striking subsections (a) and (b); and</text></paragraph><paragraph id="H2F72B88B46AC4A35AB734DC01DBA81C1"><enum>(2)</enum><text>by redesignating subsections (c) through (i) as subsections (a) through (g), respectively.</text></paragraph></section><section id="HECCE8F87E60748EE8228BEA74E056A13"><enum>174.</enum><header>Repeal of the Home Mortgage Disclosure Act of 1975</header><text display-inline="no-display-inline">The Home Mortgage Disclosure Act of 1975 (<external-xref legal-doc="usc" parsable-cite="usc/12/2801">12 U.S.C. 2801 et seq.</external-xref>) is hereby repealed.</text></section><section id="HF236D1AA16B64C19ACF2B3D0B1DA6584"><enum>175.</enum><header>Repeal of Federal Home Loan Banks Affordable Housing Program and housing goals</header><subsection id="H0F79ADCA46CA45C39294B465BE906CE0"><enum>(a)</enum><header>Affordable Housing Program</header><text display-inline="yes-display-inline">The Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1421">12 U.S.C. 1421 et seq.</external-xref>) is amended—</text><paragraph id="HC70000DDC00744E9ACBF7E52738F3704"><enum>(1)</enum><text>in section 10 (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430</external-xref>), by striking subsections (g), (h), (i), (j), and (k); and</text></paragraph><paragraph id="HEC965018563B4E649C5226F610B12C83"><enum>(2)</enum><text>by repealing section 10b (<external-xref legal-doc="usc" parsable-cite="usc/12/1430b">12 U.S.C. 1430b</external-xref>).</text></paragraph></subsection><subsection id="H1891AA9DB5E349DB9F886F772E2AE5D4"><enum>(b)</enum><header>Housing goals</header><text display-inline="yes-display-inline">Section 10C of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430C">12 U.S.C. 1430C</external-xref>) is hereby repealed.</text></subsection></section><section id="H2FBA9D20DF1E4EC8834009D57F251C11"><enum>176.</enum><header>Repeal of FDIC Affordable Housing Program</header><text display-inline="no-display-inline">Section 40 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1831q">12 U.S.C. 1831q</external-xref>) is hereby repealed.</text></section></subtitle><subtitle id="HAD6132C02F544607AE201DA6C49199C9"><enum>E</enum><header>Stopping subsidies for certain obstacles to housing construction</header><section id="HEF79515096834C678859D39FD30299F4" section-type="subsequent-section"><enum>181.</enum><header>Repeal of transportation planning provisions; rescission</header><subsection id="H5E274DB9E4BC40DBB58E77E700F5E5FF"><enum>(a)</enum><header>Repeals</header><paragraph id="H10596B2B45394D52AFEFEEE6926B4A0E"><enum>(1)</enum><header>Federal-aid highways</header><text display-inline="yes-display-inline">Sections <external-xref legal-doc="usc" parsable-cite="usc/23/134">134</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/135/134">135</external-xref> of title 23, United States Code, and the items relating to such sections in the analysis for chapter 1 of that title, are repealed.</text></paragraph><paragraph id="HA4E2214ECE41425C83E0958CABC6876B"><enum>(2)</enum><header>Research, technology, and education</header><text><external-xref legal-doc="usc" parsable-cite="usc/23/505">Section 505</external-xref> of title 23, United States Code, and the item relating to that section in the analysis for chapter 5 of that title, are repealed.</text></paragraph><paragraph id="H09ABD245A31B412E9F4CCE10984DAEAE"><enum>(3)</enum><header>Public transportation</header><text>Sections 5303, 5304, and 5305 of title 49, United States Code, and the items relating to such sections in the analysis for chapter 53 of that title, are repealed.</text></paragraph></subsection><subsection id="H9BD972CCEA1B4666BBF07664B7DEBABA"><enum>(b)</enum><header>Rescissions</header><text>Effective on the date of the enactment of this Act, the unobligated balances available on such date of enactment of funds made available to carry out each of the sections repealed by this section are hereby rescinded.</text></subsection></section><section id="H1AC15FF5609248578BF3C7D2036AF45B"><enum>182.</enum><header>Termination of HUD sustainable communities initiatives; rescission</header><subsection id="HDE4830404F0A4DECAEE352E2F40B3249"><enum>(a)</enum><header>Termination</header><text display-inline="yes-display-inline">The following programs, activities, and initiatives of the Department of Housing and Urban Development are hereby terminated:</text><paragraph id="H04B7F2D48A0C4C0080FD67BF3DB4036E"><enum>(1)</enum><header>Sustainable communities initiative</header><text>The Sustainable Communities Initiative originally established under the heading <quote>Community Planning and Development—Community Development Fund</quote> of title II of division A of the Consolidated Appropriations Act, 2010 (<external-xref legal-doc="public-law" parsable-cite="pl/111/117">Public Law 111–117</external-xref>; 123 Stat. 3084).</text></paragraph><paragraph id="H8F28E94F308844A9B4936636F1FCD1E4"><enum>(2)</enum><header>Sustainable communities regional planning grants</header><text>The Regional Integrated Planning Grants program originally established under such heading.</text></paragraph><paragraph id="HA7F109551BAC48D6B0D9C0855C249244"><enum>(3)</enum><header>Community challenge planning grants</header><text>The Community Challenge Planning Grants program originally established under such heading.</text></paragraph><paragraph id="H7FFEC9458CF14CF2A1463EDFB7BF8045"><enum>(4)</enum><header>Capacity building for sustainable communities</header><text>The program for capacity building for sustainable communities originally established under such heading.</text></paragraph></subsection><subsection commented="no" id="HD32BA41CCF0A41CC9F7E577A4C3F13D5"><enum>(b)</enum><header>Rescissions</header><text display-inline="yes-display-inline">Effective on the date of the enactment of this Act, the unobligated balances available on such date of enactment of funds made available to carry out each of the programs and initiatives terminated by subsection (a) are hereby rescinded.</text></subsection></section></subtitle><enum>II</enum><header>Ending bank bailouts and restoring market discipline</header><subtitle id="H97724F3FF62C4B9CBB39F8C798D2E9B2"><enum>A</enum><header>Reducing risks to bank depositors and other creditors</header><section id="H61230DC2F8C2495683B062E01779281B"><enum>201.</enum><header>Capital requirements</header><subsection id="HC43A7714D919465A9008169D37B14656"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, the appropriate Federal regulators shall set capital standards for financial companies as provided in this section.</text></subsection><subsection id="HD516239188DE4FC2B319BEA5E75B5B03"><enum>(b)</enum><header>Minimum capital requirement</header><text>Each financial company shall be required to maintain sufficient capital to remain adequately capitalized, as defined under subsection (c)(2).</text></subsection><subsection id="H40AB0B69E33C4E1F9F173C14C31A9FCA"><enum>(c)</enum><header>Capital categories</header><paragraph id="HA023DDD25F21494C8C892854A10DA405"><enum>(1)</enum><header>Well capitalized</header><text display-inline="yes-display-inline">A financial company is <quote>well capitalized</quote> if the company maintains a capital level of 12 percent or more.</text></paragraph><paragraph id="HD8DD6B8D41794B8D8D37219E6DB7CE56"><enum>(2)</enum><header>Adequately capitalized</header><text>A financial company is <quote>adequately capitalized</quote> if the company maintains a capital level of 10 percent or more.</text></paragraph><paragraph id="H7C87A87204EE413CA42D813AD1599B75"><enum>(3)</enum><header>Undercapitalized</header><text>A financial company is <quote>undercapitalized</quote> if the company maintains a capital level of less than 10 percent.</text></paragraph><paragraph id="HE17F96542F1D4109A621B9C544CA976C"><enum>(4)</enum><header>Significantly undercapitalized</header><text>A financial company is <quote>significantly undercapitalized</quote> if the company maintains a capital level of less than 6 percent.</text></paragraph><paragraph id="HB4AA981B12B944A28C61F680A4578CA3"><enum>(5)</enum><header>Critically undercapitalized</header><text display-inline="yes-display-inline">A financial company is <quote>critically undercapitalized</quote> if the company maintains a capital level of 2 percent or less.</text></paragraph></subsection><subsection id="H31EACBCBFD8847959339BF0EA2CA612F"><enum>(d)</enum><header>Capital calculation</header><text>In computing a financial company’s capital for purposes of this section—</text><paragraph id="HD41AA96B9B5445C29EECE332D7D5A745"><enum>(1)</enum><text>the value of capital shall be calculated based on the current market value of the capital, and not by reference to the book value of such capital;</text></paragraph><paragraph id="H698DBBF154C64B4182A87FC756F32291"><enum>(2)</enum><text>the percentage of capital maintained by a company shall be based on the total consolidated assets of the company; and</text></paragraph><paragraph id="H155B519F82714972BC95A3FE00D431EC"><enum>(3)</enum><text>there shall be no risk-weighting of assets.</text></paragraph></subsection><subsection id="HED3FF97F94A64876A91AE33F76FB3FBE"><enum>(e)</enum><header>Phase-In period</header><text>Notwithstanding subsection (c), during the 6-year period beginning on the date of the enactment of this Act, the percentages contained in paragraphs (1) through (5) of subsection (c) shall be treated as follows:</text><paragraph id="HA78FE2C8C88E46A397EEF23C21876582"><enum>(1)</enum><text>During the 1-year period following the date of the enactment of this Act, 6 percent, 4 percent, 4 percent, 3 percent, and 2 percent, respectively.</text></paragraph><paragraph id="H0A326BDFA53E46D7937A502A74B3B836"><enum>(2)</enum><text>During the 1-year period following the period described under paragraph (1), 7 percent, 5 percent, 5 percent, 3.5 percent, and 2 percent, respectively.</text></paragraph><paragraph id="HCE2893E8F988409E875EEA80307CA29B"><enum>(3)</enum><text>During the 1-year period following the period described under paragraph (2), 8 percent, 6 percent, 6 percent, 4 percent, and 2 percent, respectively.</text></paragraph><paragraph id="H0601B96F602F49DFABC0214F4A7D09F5"><enum>(4)</enum><text>During the 1-year period following the period described under paragraph (3), 9 percent, 7 percent, 7 percent, 4.5 percent, and 2 percent, respectively.</text></paragraph><paragraph id="H19AC3E1A1E81419BA67687E76D61A695"><enum>(5)</enum><text>During the 1-year period following the period described under paragraph (4), 10 percent, 8 percent, 8 percent, 5 percent, and 2 percent, respectively.</text></paragraph><paragraph id="HBDC88C9DCCAD4C6FB05C62D94534E785"><enum>(6)</enum><text>During the 1-year period following the period described under paragraph (5), 11 percent, 9 percent, 9 percent, 5.5 percent, and 2 percent, respectively.</text></paragraph></subsection><subsection id="H198C1A4957594105B9A0CD114473513E"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section:</text><paragraph id="H1C9C686955B64D89A4C4725C57FC3EA2"><enum>(1)</enum><header>Appropriate Federal regulator</header><text>The term <term>appropriate Federal regulator</term>—</text><subparagraph id="H3D1D2B58DFFE4678B9FFCAF68C75094B"><enum>(A)</enum><text display-inline="yes-display-inline">has the meaning given the term <term>appropriate Federal banking agency</term> under section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>);</text></subparagraph><subparagraph id="H9088C66F95DF41FB861D8B7721F69DBC"><enum>(B)</enum><text display-inline="yes-display-inline">means the Board of Governors of the Federal Reserve System, in the case of a nonbank financial company supervised by the Board of Governors; and</text></subparagraph><subparagraph id="HB3DA1D9AABE04E75A96B427DA111B170"><enum>(C)</enum><text display-inline="yes-display-inline">means the National Credit Union Administration Board, in the case of a credit union.</text></subparagraph></paragraph><paragraph commented="no" id="HF9E083DDF74D4D0DB53FA99E1E7AE19A"><enum>(2)</enum><header>Capital</header><text display-inline="yes-display-inline">The term <term>capital</term> means common equity tier 1 capital and additional tier 1 capital, as such terms are defined in the notice of final rulemaking published in the Federal Register on October 11, 2013 (78 Fed. Reg. 62173–74).</text></paragraph><paragraph id="HB26858492C2041C7943B83181FCF137F"><enum>(3)</enum><header>Credit union</header><text>The term <term>credit union</term> includes a Federal credit union and a State credit union, as such terms are defined under section 101 of the Federal Credit Union Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1752">12 U.S.C. 1752</external-xref>).</text></paragraph><paragraph id="HF919628396B041EF976C99CFDA655AC2"><enum>(4)</enum><header>Depository institution</header><text display-inline="yes-display-inline">The term <term>depository institution</term> has the meaning given such term under section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text></paragraph><paragraph id="HBACD16117D5043D3831EB84FE73F01B3"><enum>(5)</enum><header>Depository institution holding company</header><text display-inline="yes-display-inline">The term <term>depository institution holding company</term> has the meaning given such term under section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text></paragraph><paragraph id="H4E156D719A884D5699D0E4F5BC729C08"><enum>(6)</enum><header>Financial company</header><text>The term <term>financial company</term> means—</text><subparagraph id="H86A54441F4C942C28D93AAE5BE9D8C7E"><enum>(A)</enum><text>a credit union;</text></subparagraph><subparagraph id="HF21BFC83CFA74DE2A5B2B826DBF36DA5"><enum>(B)</enum><text>a depository institution;</text></subparagraph><subparagraph id="H9438F2678A7640DB9B4EB3CAF66A4301"><enum>(C)</enum><text>a depository institution holding company; and</text></subparagraph><subparagraph id="HCB7DEAC71E6948C09BCDD9B760E0C6CA"><enum>(D)</enum><text display-inline="yes-display-inline">a nonbank financial company supervised by the Board of Governors.</text></subparagraph></paragraph><paragraph id="H563FE0B7E476479492379BFC580E30CD"><enum>(7)</enum><header>Nonbank financial company supervised by the Board of Governors</header><text display-inline="yes-display-inline">The term <term>nonbank financial company supervised by the Board of Governors</term> has the meaning given such term under section 102 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/12/5311">12 U.S.C. 5311</external-xref>).</text></paragraph></subsection></section><section id="H76ED6CE2CE5140929E40EA7DE6132531"><enum>202.</enum><header>FDIC insurance</header><subsection id="H2F9331ADBCEB4BE9BABDD63A2F06CE1B"><enum>(a)</enum><header>Reduction in maximum insurance amount</header><text display-inline="yes-display-inline">Section 11(a)(1) of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(a)(1)</external-xref>) is amended—</text><paragraph id="H83C730ED28004BC3989B0F013E2D1094"><enum>(1)</enum><text>by amending subparagraph (E) to read as follows:</text><quoted-block display-inline="no-display-inline" id="H12569D72048B4ED7BCFB1CF76F5874EB" style="OLC"><subparagraph id="HD36E6FD53E4A4C8983CACA46034A945A"><enum>(E)</enum><header>Standard maximum deposit insurance amount defined</header><text display-inline="yes-display-inline">For purposes of this Act, the term <term>standard maximum deposit insurance amount</term> means $150,000, adjusted as provided under subparagraph (F).</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HEDC0A0C6ED864AA19D9622DEF7ED94A6"><enum>(2)</enum><text>in subparagraph (F), by striking <quote>April 1 of 2010,</quote> and inserting <quote>April 1, 2015,</quote>.</text></paragraph></subsection><subsection id="H5C27AF4326764A32A90B7EC275DFD8C9"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on the day that is the end of the 1-year period beginning on the date of the enactment of this Act.</text></subsection></section></subtitle><subtitle id="H68EE00446C8E4D80A275AB34E434BA12"><enum>B</enum><header>Repeal of bailout authorities</header><section display-inline="no-display-inline" id="H0863FF162B464545B024802021B5D1E1"><enum>211.</enum><header>Repeal of FDIC powers under the systemic risk determination</header><text display-inline="no-display-inline">The Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>) is amended—</text><paragraph id="H37A9692A6ECF420287073DA34544287D"><enum>(1)</enum><text>in section 11(a)(4)(C) (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(a)(4)(C)</external-xref>), by striking <quote>other than section 13(c)(4)(G)</quote>; and</text></paragraph><paragraph id="HA53AB12CAFA1499F896BE2C0CBE82FA8"><enum>(2)</enum><text>in section 13(c)(4) (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823(c)(4)</external-xref>)—</text><subparagraph id="H74DF887669CC4BE2A2281871F46DE3B2"><enum>(A)</enum><text>by striking subparagraph (G); and</text></subparagraph><subparagraph id="H96D665D50A8B4EF48AECCC737620CFF8"><enum>(B)</enum><text>by redesignating subparagraph (H) as subparagraph (G).</text></subparagraph></paragraph></section><section display-inline="no-display-inline" id="H2CB79A420A344FD2BA00829399739179"><enum>212.</enum><header>Repeal of unusual and exigent authority of the Federal Reserve</header><text display-inline="no-display-inline">Section 13(3) of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/343">12 U.S.C. 343(3)</external-xref>) is repealed.</text></section><section display-inline="no-display-inline" id="H5202CCEC6B8E4A3F8D5E453477388106"><enum>213.</enum><header>Exchange Stabilization Fund</header><subsection id="H690CF1F59D5241B0946ED13049AD262E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/5302">Section 5302</external-xref> of title 31, United States Code, is amended by striking <quote>stabilization fund</quote> each place such term appears and inserting <quote>Special Drawing Rights Fund</quote>.</text></subsection><subsection id="H0A18035847BC4D60A252B30374C2CB0B"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H9EB2434FF7DC4C0A99FE994C742D77F5"><enum>(1)</enum><header>Balanced Budget and Emergency Deficit Control Act of 1985</header><text display-inline="yes-display-inline">Section 255(g)(1)(A) of the Balanced Budget and Emergency Deficit Control Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/2/905">2 U.S.C. 905(g)(1)(A)</external-xref>) is amended by striking <quote>Exchange Stabilization Fund</quote> and inserting <quote>Special Drawing Rights Fund</quote>.</text></paragraph><paragraph id="HFDFD76ED2C2E48718449F79F7D01477A"><enum>(2)</enum><header>Emergency Economic Stabilization Act of 2008</header><text display-inline="yes-display-inline">The Emergency Economic Stabilization Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/12/5211">12 U.S.C. 5211 et seq.</external-xref>) is amended—</text><subparagraph id="HE7BEDF7CC9484448B6576064521EBFE4"><enum>(A)</enum><text display-inline="yes-display-inline">in section 131 (<external-xref legal-doc="usc" parsable-cite="usc/12/5236">12 U.S.C. 5236</external-xref>), by striking <quote>Exchange Stabilization Fund</quote> each place such term appears in headings and text and inserting <quote>Special Drawing Rights Fund</quote>; and</text></subparagraph><subparagraph id="H3D921F43F63A4F168A3E67E14B60B55A"><enum>(B)</enum><text display-inline="yes-display-inline">in the item relating to section 131 in the table of contents of such Act, by striking <quote>Exchange Stabilization Fund</quote> and inserting <quote>Special Drawing Rights Fund</quote>.</text></subparagraph></paragraph><paragraph id="H134483D24DB74BD88F19D072E4FDF787"><enum>(3)</enum><header>International Financial Institutions Act</header><text display-inline="yes-display-inline">Section 1704 of the International Financial Institutions Act (<external-xref legal-doc="usc" parsable-cite="usc/22/262r-3">22 U.S.C. 262r–3</external-xref>) is amended by striking <quote>stabilization fund</quote> each place such term appears and inserting <quote>Special Drawing Rights Fund</quote>.</text></paragraph><paragraph id="H0C6583B0194F480F9823A3A503148674"><enum>(4)</enum><header>Special Drawing Rights Act</header><text display-inline="yes-display-inline">The Special Drawing Rights Act (<external-xref legal-doc="usc" parsable-cite="usc/22/286n">22 U.S.C. 286n et seq.</external-xref>) is amended by striking <quote>Exchange Stabilization Fund</quote> each place such term appears and inserting <quote>Special Drawing Rights Fund</quote>.</text></paragraph></subsection><subsection id="H748A66B9105749F8A3CAA96B993B94DD"><enum>(c)</enum><header>References</header><text>Any reference in a law, regulation, document, paper, or other record of the United States to the <quote>Exchange Stabilization Fund</quote> shall be deemed a reference to the <quote>Special Drawing Rights Fund</quote>.</text></subsection><subsection id="H7C69EE2BCD15422CA7B52C5360DF7209"><enum>(d)</enum><header>Funds used To reduce the debt</header><text display-inline="yes-display-inline">The Secretary of the Treasury shall liquidate all property in the Special Drawing Rights Fund (as so renamed under subsection (a)), other than Special Drawing Rights, and use all such amounts to reduce the public debt.</text></subsection><subsection id="H7A80363F451B421A96C3ADC01BFB6130"><enum>(e)</enum><header>Limitation on Fund</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/31/5302">Section 5302</external-xref> of title 31, United States Code, is amended—</text><paragraph id="H9851D81668CF4A76B2A6AA879046BBE6"><enum>(1)</enum><text>in subsection (a)(1)—</text><subparagraph id="HE87BB869BB72449E87931A0BA319D121"><enum>(A)</enum><text>by striking <quote>is available to carry out</quote> and inserting <quote>is only available to carry out</quote>; and</text></subparagraph><subparagraph id="H0C756BD61A9446118635218238BB50E9"><enum>(B)</enum><text>by striking <quote>, and for investing in obligations of the United States Government those amounts in the fund the Secretary of the Treasury, with the approval of the President, decides are not required at the time to carry out this section. Proceeds of sales and investments, earnings, and interest shall be paid into the fund and are available to carry out this section. However, the fund is not available to pay administrative expenses</quote>; and</text></subparagraph></paragraph><paragraph id="H0570AE41FED94DF697CA3A9E9859FC04"><enum>(2)</enum><text>by striking subsection (b) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="H31DB02F030BC4032AD83CFD5BC2AD348" style="OLC"><subsection id="H5F3B51339B15484DA8F3BFA27B260EB4"><enum>(b)</enum><header>Fund only To hold Special Drawing Rights</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, only Special Drawing Rights may be deposited into the Special Drawing Rights Fund.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9AAE215319B5438786C158A6A5A461B8"><enum>(f)</enum><header>Conforming amendments</header><paragraph id="HEB68DCB733D94F9790EAF09E5C8DC578"><enum>(1)</enum><header>Bretton Woods Agreements Act</header><text display-inline="yes-display-inline">Section 18 of the Bretton Woods Agreements Act (<external-xref legal-doc="usc" parsable-cite="usc/22/286e-3">22 U.S.C. 286e–3</external-xref>) is hereby repealed.</text></paragraph><paragraph id="H6BE91E71D7C6478A985033A8808FF0E9"><enum>(2)</enum><header>Support for East European Democracy (SEED) Act of 1989</header><text display-inline="yes-display-inline">The Support for East European Democracy (SEED) Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/22/5401">22 U.S.C. 5401 et seq.</external-xref>) is amended—</text><subparagraph id="H5D7C1E66933C426994913B9820BEF895"><enum>(A)</enum><text>in section 101(b)(1) (<external-xref legal-doc="usc" parsable-cite="usc/22/5411">22 U.S.C. 5411(b)(1)</external-xref>), by striking <quote>such as—</quote> and all that follows through the end of the paragraph and inserting <quote>such as the authority provided in section 102(c) of this Act.</quote>; and</text></subparagraph><subparagraph id="H86C66DC7D57D45C6B89ED6361D8B95A4"><enum>(B)</enum><text>in section 102(a) (<external-xref legal-doc="usc" parsable-cite="usc/22/5412">22 U.S.C. 5412(a)</external-xref>), by striking <quote>section 101(b)—</quote> and all that follows through the end of the subsection and inserting <quote>section 101(b), should work closely with the European Community and international financial institutions to determine the extent of emergency assistance required by Poland for the fourth quarter of 1989.</quote>.</text></subparagraph></paragraph></subsection><subsection id="HB3256E6005214C8B9C82849A0C2CF05D"><enum>(g)</enum><header>Treatment of certain funds</header><text display-inline="yes-display-inline">Funds that would otherwise have been deposited into the Special Drawing Rights Fund (as so renamed under subsection (a)), but for the amendments made by this section, shall instead be paid to the Secretary of the Treasury, and the Secretary of the Treasury shall use such funds to reduce the public debt.</text></subsection><subsection id="H3FA77FAAF6B84B6EB3BDC728B9A4CABA"><enum>(h)</enum><header>Wind-Down period for certain transactions</header><text>Notwithstanding any other provision of this section, during the 3-year period beginning on the date of the enactment of this Act, property other than Special Drawing Rights may be deposited, and maintained, in the Special Drawing Rights Fund as needed to fulfill any outstanding obligations on the Fund.</text></subsection></section></subtitle><subtitle id="HEB476C72100D4AF98F8B679D018F9311"><enum>C</enum><header>Bankruptcy, not bailouts, for complex financial institutions</header><section id="H36FED4048BDB48609211AE04B1BD2BE6"><enum>221.</enum><header>Reforming the bankruptcy code to accommodate failing financial institutions</header><subsection id="H39382E278F1A4B3FB443E85C93E6B95C"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds the following:</text><paragraph id="H9064D55D8B344CCD892ED0C4C9B36E1A"><enum>(1)</enum><text display-inline="yes-display-inline">Bailouts undermine market discipline and the rule of law, resulting in doubt about property rights and insulating recipients from the consequences of their mistakes.</text></paragraph><paragraph id="H9BFF383F5E004C41941D901CF7E260B5"><enum>(2)</enum><text>A number of complex financial institutions are widely considered to be <quote>too big to fail</quote>.</text></paragraph><paragraph id="HC0A51F2F76F14FEFAED3A49722E68325"><enum>(3)</enum><text>An aggravating factor in the 2008 financial crisis was uncertainty about the security and priority of claims stemming from cross-border resolution of complex financial institutions.</text></paragraph><paragraph id="H4532399223204514BA9151721A77D6AD"><enum>(4)</enum><text>The Federal Deposit Insurance Corporation (FDIC) has historically resolved most failing U.S. depository institutions and has the necessary expertise and discretionary authority to conduct such resolutions quickly.</text></paragraph><paragraph id="H3408EA5634E544C5A051C1C8C6B2366F"><enum>(5)</enum><text>The FDIC’s authority did not extend to all components of very large, complex financial institutions, such as insurance, stockbroker, and commodity broker operations.</text></paragraph><paragraph id="H56F7C26361714AC69F1FFAFE0E5C37A9"><enum>(6)</enum><text>The U.S. Constitution authorizes Congress to establish <quote>uniform laws on the subject of Bankruptcies through the United States</quote>.</text></paragraph><paragraph id="HB9B79108D6A74B8DBF993ACD65008617"><enum>(7)</enum><text>Bankruptcy provides predictable priority for claims under the rule of law through the jurisdiction of an Article III court.</text></paragraph><paragraph id="HC6489D68EDA640D6A7E4CF39FDCEA96F"><enum>(8)</enum><text>The lengthy adjudication of claims to ensure equality under the law of similarly situated creditors under bankruptcy can be problematic in the case of financial institutions but can be amended to preserve and protect value.</text></paragraph><paragraph id="HA05DBBFF08E44A2980D3102F97D5CDEC"><enum>(9)</enum><text>The Dodd-Frank Wall Street Reform and Consumer Protection Act did not establish a non-discretionary, rule-of-law-based resolution process to provide certainty for creditors of failing institutions.</text></paragraph><paragraph id="HD7285D41D812441B9A8E332D3F596DB2"><enum>(10)</enum><text>A credible resolution process could eliminate the use of bailouts and other political interventions.</text></paragraph><paragraph id="H20B9795184044BC59003BE760D724541"><enum>(11)</enum><text>Additional reforms are necessary to bring certainty and predictability to the failure of large, complex, multinational financial institutions.</text></paragraph></subsection><subsection id="H8CE4920F0EBA4D06A07B73CCBDF37E14"><enum>(b)</enum><header>Sense of Congress</header><text>It is the sense of Congress that the Committees on the Judiciary and Financial Services of the House of Representatives and the Committees on the Judiciary and Banking, Housing, and Urban Affairs of the Senate should each report legislation proposing changes to existing law within each committee’s jurisdiction with provisions to accommodate bankruptcy proceedings for failing multinational financial institutions. Such committees should consider reforms that—</text><paragraph id="HAAA6207489144DCD93C26745248D7B09"><enum>(1)</enum><text>establish a new chapter of the bankruptcy code specifically for financial institutions, to be used in conjunction with the existing chapter 7 liquidation or chapter 11 reorganization process;</text></paragraph><paragraph id="H4504A62CB2994F5395DCF159A9F5EB59"><enum>(2)</enum><text>replace or supplement existing resolution authorities for certain kinds of institutions;</text></paragraph><paragraph id="H21B7CEAA67F54A9DB3FDD65492DD6196"><enum>(3)</enum><text>clarify that such resolution proceedings occur at the holding company level;</text></paragraph><paragraph id="HCB23776C4B0A427ABBA8C3D3AE9244E3"><enum>(4)</enum><text>designate particular judges in the Second and D.C. Circuits who will hear these cases and who may appoint special masters with technical expertise to aid in the resolution;</text></paragraph><paragraph id="H831FB659EDB74FD08D7004B6DD5B5252"><enum>(5)</enum><text>continue to use FDIC expertise to resolve such institutions under the oversight of the court;</text></paragraph><paragraph id="HBEBDA3CEDC214C63A3E9CBE54731746B"><enum>(6)</enum><text>remove exemptions from bankruptcy proceedings for certain subsidiaries of complex financial institutions, such as insurance and brokerage operations;</text></paragraph><paragraph id="HFDE7FBE9012545679F55AEB535FA4DE7"><enum>(7)</enum><text>allow primary regulators to petition for involuntary bankruptcy cases against a financial institution, to have standing and raise motions, and to file plans of reorganization;</text></paragraph><paragraph id="H3BAD9524D54E49E1B200F8C1D6C37E88"><enum>(8)</enum><text>establish procedures for debtor-in-possession financing to provide partial or complete payouts to some or all creditors in certain circumstances;</text></paragraph><paragraph id="H3506F065A1B4484A8F6C6F770B928F13"><enum>(9)</enum><text>develop rules for the applicability of short-term automatic stays for certain qualified financial contracts;</text></paragraph><paragraph id="H715AECE82D2D453DB2C7561DE1329061"><enum>(10)</enum><text>recapitalize reorganized institutions at the holding company level, possibly by converting long-term debt into equity;</text></paragraph><paragraph id="H955546153886435DB99C8B0F65DFCB51"><enum>(11)</enum><text>collaborate with foreign governments to avoid domestic <quote>ring-fencing</quote> of failing multinational financial institutions whose holding companies are located elsewhere;</text></paragraph><paragraph id="H12E31BFC578C4859A39DF724F7DDA287"><enum>(12)</enum><text>ensure that institutions in conservatorship do not receive advantageous tax or regulatory treatment over comparable financial institutions outside of the bankruptcy process; and</text></paragraph><paragraph id="HB92B3A8C705A4FF594099F16EE1076A1"><enum>(13)</enum><text>such other additional and conforming reforms as the Committees consider necessary.</text></paragraph></subsection></section></subtitle>