113 S1217 IS: Housing Finance Reform and Taxpayer Protection Act of 2013
U.S. Senate
2013-06-25
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short
title; table of contents
(a)This Act may be cited
as the Housing Finance Reform and
Taxpayer Protection Act of 2013
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
Sec. 2. Definitions.
TITLE I—Federal Mortgage Insurance Corporation
Sec. 101. Establishment.
Sec. 102. Director.
Sec. 103. Board of Directors.
Sec. 104. Office of the Inspector General.
Sec. 105. Staff, experts, and consultants.
Sec. 106. Reports; testimony; audits.
Sec. 107. Initial funding.
TITLE II—Duties, Responsibilities, and Structure of the
FMIC
Subtitle A—Duties and Authorities
Sec. 201. Duties and responsibilities of the FMIC.
Sec. 202. Standard form credit risk-sharing mechanisms,
products, structures, contracts, or other security agreements.
Sec. 203. Mortgage Insurance Fund.
Sec. 204. Insurance.
Sec. 205. Authority to protect taxpayers in unusual and exigent
market conditions.
Sec. 206. General powers.
Sec. 207. Exemptions.
Subtitle B—Oversight of market participants
Sec. 211. Approval of private mortgage insurers.
Sec. 212. Approval of servicers.
Sec. 213. Approval of issuers.
Sec. 214. Approval of bond guarantors.
Sec. 215. Authority to establish FMIC Mutual Securitization
Company.
Sec. 216. Additional authority relating to oversight of market
participants.
Sec. 217. Civil money penalties.
Sec. 218. Protection of privilege and other matters relating to
disclosures by market participants.
Subtitle C—Transparency in market operations
Sec. 221. Review of loan documents; disclosures.
Sec. 222. Investor immunity.
Sec. 223. Uniform securitization agreements.
Sec. 224. Uniform mortgage database.
Sec. 225. Electronic registration of eligible
mortgages.
Subtitle D—FMIC Structure
Sec. 231. Office of Underwriting.
Sec. 232. Office of Securitization.
Sec. 233. Office of Federal Home Loan Bank
Supervision.
TITLE III—Transfer of powers, personnel, and property to FMIC
from FHFA
Sec. 301. Powers and duties transferred.
Sec. 302. Transfer and rights of employees of the
FHFA.
Sec. 303. Abolishment of FHFA.
Sec. 304. Transfer of property and facilities.
Sec. 305. Technical and conforming amendments.
TITLE IV—Improving transparency, accountability, and efficacy
within affordable housing
Sec. 401. Affordable housing allocations.
Sec. 402. Housing Trust Fund.
Sec. 403. Capital Magnet Fund.
Sec. 404. Additional taxpayer protections.
TITLE V—Wind Down of Fannie Mae and Freddie Mac
Sec. 501. Repeal of GSE charters.
Sec. 502. Wind down.
Sec. 503. Aligning purpose of conservatorship with
FMIC.
Sec. 504. Conforming loan limits.
Sec. 505. Portfolio reduction.
Sec. 506. Repeal of mandatory housing goals.
TITLE VI—Improvements to functioning of housing
market
Sec. 601. Continuation of multifamily business of the
enterprises.
Sec. 602. Multiple lender issues.
Sec. 603. GAO report on full privatization of secondary
mortgage market.
TITLE VII—General provisions
Sec. 701. Authority to issue regulations.
Sec. 702. Fair value accounting.
Sec. 703. Rule of construction.
Sec. 704. Severability.
2.As used in this Act, the following
definitions shall apply:
(1)The term
approved bond guarantor
means any entity that provides credit
enhancement that is approved by the Corporation pursuant to section 214 to
guarantee the timely payment of principal and interest on securities
collateralized by eligible mortgages and insured by the Corporation.
(2)The term approved issuer
means an issuer
that is approved by the Corporation pursuant to section 213—
(A)to issue covered
securities; and
(B)to purchase
insurance offered by the Corporation pursuant to title II on a covered security
for which first loss credit enhancement has been secured.
(3)Approved
private mortgage insurerThe term approved private
mortgage insurer
means an insurer that is approved by the Corporation
pursuant to section 211 to provide private mortgage insurance on eligible
mortgages.
(4)The term approved servicer
means a
servicer that is approved by the Corporation pursuant to section 212 to
administer eligible mortgages.
(5)The
term area
—
(A)means a
metropolitan statistical area as established by the Office of Management and
Budget; and
(B)for purposes of
paragraph (11)(A)(ii), the median 1-family house price for an area shall be
equal to the median 1-family house price of the county within the area that has
the highest such median price.
(6)Board; Board of
DirectorsThe terms Board
and Board of
Directors
mean the Board of Directors of the Federal Mortgage Insurance
Corporation.
(7)The term charter means—
(A)with respect to the Federal National
Mortgage Association, the Federal National Mortgage Association Charter Act (12
U.S.C. 1716 et seq.); and
(B)with respect to the Federal Home Loan
Mortgage Corporation, the Federal Home Loan Mortgage Corporation Act (12 U.S.C.
1451 et seq.).
(8)The
term Corporation
means the Federal Mortgage Insurance
Corporation established under title I.
(9)The term covered security means a
mortgage-backed security—
(A)collateralized by
eligible mortgages;
(B)which is issued
subject to a standard form credit-risk sharing mechanism, product, structure,
contract, or other securitization agreement developed by the Corporation
pursuant to title II; and
(C)which is eligible
for insurance by the Corporation pursuant to title II, which insurance is
purchased by an approved issuer who issues covered securities.
(10)The
term Director
means the Director of the Federal Mortgage
Insurance Corporation, unless the context otherwise requires.
(11)The term eligible mortgage means a
mortgage—
(A)that is a
residential real estate loan secured by a property with 1 to 4 single family
units that has been originated in compliance with the provisions of section
1026 of title 12 of the Code of Federal Regulations, as promulgated by the
Bureau of Consumer Financial Protection pursuant to section 129C(b) of the
Truth in Lending Act (15 U.S.C. 1639c(b)) (commonly referred to as the
Ability-to-Repay and Qualified Mortgage Rule
);
(B)has a maximum
original principal obligation amount that does not exceed the conforming loan
limitation determined under section 504;
(C)the outstanding
principal balance of which at the time of purchase of insurance available under
title II—
(i)is
less than 80 percent of the value of the property securing the mortgage;
(ii)is
not less than 80 percent but not more than 85 percent of the value of the
property securing the mortgage, provided that not less than 12 percent of the
unpaid principal balance of the mortgage, accounting for any downpayment
required under subparagraph (D), is insured by—
(I)an approved
private mortgage insurer; or
(II)lender recourse
or other credit enhancement that—
- (aa)meets standards
comparable to the standards required of private mortgage insurers under section
211; and
- (bb)is
approved by the Corporation;
(iii)is not less
than 85 percent but not more than 90 percent of the value of the property
securing the mortgage, provided that not less than 25 percent of the unpaid
principal balance of the mortgage, accounting for any downpayment required
under subparagraph (D), is insured by—
(I)an approved
private mortgage insurer; or
(II)lender recourse
or other credit enhancement that—
- (aa)meets standards
comparable to the standards required of private mortgage insurers under section
211; and
- (bb)is approved by
the Corporation; or
(iv)is
not less than 90 percent but not more than 95 percent of the value of the
property securing the mortgage, provided that not less than 30 percent of the
unpaid principal balance of the mortgage, accounting for any downpayment
required under subparagraph (D), is insured by—
(I)an approved
private mortgage insurer; or
(II)lender recourse
or other credit enhancement that—
- (aa)meets standards
comparable to the standards required of private mortgage insurers under section
211; and
- (bb)is approved by
the Corporation;
(D)having a
downpayment which shall be equal to not less than 5 percent of purchase price
of the property securing the mortgage;
(E)that is insured
by an approved State licensed title insurance company;
(F)that contains
such terms and provisions with respect to insurance, property maintenance,
repairs, alterations, payment of taxes, default, reserves, delinquency charges,
foreclosure proceedings, anticipation of maturity, additional and secondary
liens, and other matters, including matters that set forth terms and provisions
for establishing escrow accounts, performing financial assessments, or limiting
the amount of any payment made available under the mortgage as the Corporation
may prescribe; and
(G)that contains
such other terms or characteristics as the Corporation, in consultation with
the Bureau of Consumer Financial Protection, may determine necessary or
appropriate.
(12)The
term enterprise means—
(A)the Federal
National Mortgage Association and any affiliate thereof; and
(B)the Federal Home
Loan Mortgage Corporation and any affiliate thereof.
(13)The term—
(A)Federal
banking agency
means, individually, the Board of Governors of the
Federal Reserve System, the Office of the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, the Bureau of Consumer Financial
Protection, the National Credit Union Administration, the Securities and
Exchange Commission, the Commodities Futures Trading Commission, the Federal
Housing Finance Agency, and the Secretary of the Treasury; and
(B)Federal
banking agencies
means all of the agencies referred to in subparagraph
(A), collectively.
(14)The term Federal Home Loan Bank means a
bank established under the authority of the Federal Home Loan Bank Act (12
U.S.C. 1421 et seq.).
(15)Federal Home
Loan Bank SystemThe term Federal Home Loan Bank
System means the Federal Home Loan Banks and the Office of Finance and
any authorized subsidiary of one or more Federal Home Loan Banks.
(16)The term FMIC certification
date
means the date on which the Board of Directors certifies that the
Corporation is operational and able to perform the insurance functions for
covered securities as provided in this Act, which date shall be not later than
5 years after the date of enactment of this Act.
(17)Insured
depository institutionThe term insured depository
institution
means—
(A)an insured
depository institution, as defined under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813); and
(B)a credit union
that meets the definition of depository institution
as that term
is defined under section 19(b) of the Federal Reserve Act (12 U.S.C.
461).
(18)Senior
Preferred Stock Purchase Agreement definedThe term Senior
Preferred Stock Purchase Agreement means—
(A)the Amended and
Restated Senior Preferred Stock Purchase Agreement, dated September 26, 2008,
as such Agreement has been amended on May 6, 2009, December 24, 2009, and
August 17, 2012, respectively, and as such Agreement may be further amended and
restated, entered into between the Department of the Treasury and each
enterprise, as applicable; and
(B)any provision of
any certificate in connection with such Agreement creating or designating the
terms, powers, preferences, privileges, limitations, or any other conditions of
the Variable Liquidation Preference Senior Preferred Stock of an enterprise
issued or sold pursuant to such Agreement.
(19)The term transfer date
means the date that is
1 year after the date of enactment of this Act.
<enum>I</enum><header>Federal Mortgage
Insurance Corporation</header>
<section id="idD4F7D7A30CA948EFB30CFB4B7F5FA34F"><enum>101.</enum><header>Establishment</header>
<subsection id="id9A4FB049BEE44FBDA1E66020A4ACB7B4"><enum>(a)</enum><header>Establishment</header><text>There
is hereby established the Federal Mortgage Insurance Corporation which shall
have the powers hereinafter granted.</text>
</subsection><subsection id="id7D541F9D247E4021AD542BD496B78894"><enum>(b)</enum><header>Purpose</header><text>The
purpose of the Corporation shall be to—</text>
<paragraph id="id2E058AE236044549A0B27FEB59E866A4"><enum>(1)</enum><text>provide
liquidity, transparency, and access to mortgage credit by supporting a robust
secondary mortgage market and the production of residential mortgage-backed
securities; and</text>
</paragraph><paragraph id="idF90FCFF45F6E4461AD69AFB6E44108F7"><enum>(2)</enum><text>protect the
taxpayer from having to absorb losses incurred in the secondary mortgage market
during periods of economic stress.</text>
</paragraph></subsection><subsection id="id2f96e14d42e543319e9310b95419eaa9"><enum>(c)</enum><header>Federal
Status</header><text>The Corporation shall be an independent agency of the
Federal Government.</text>
</subsection><subsection id="idd762f9f8ae104aec80a471ffc7166a3a"><enum>(d)</enum><header>Succession</header><text>The
Corporation shall have succession until dissolved by Act of Congress.</text>
</subsection><subsection id="idD04C0E3CC433472591495967F09BA808"><enum>(e)</enum><header>Principal
office</header><text>The Corporation shall maintain its principal office in the
District of Columbia and shall be deemed, for purposes of venue in civil
actions, to be a resident thereof.</text>
</subsection><subsection id="id30317E366806451D9906B606F33B997C"><enum>(f)</enum><header>Authority To
establish other offices</header><text>The Corporation may establish such other
offices in such other place or places as the Corporation may deem necessary or
appropriate in the conduct of its business.</text>
</subsection><subsection id="id687FD7119F844B4C8589E00C56A2824F"><enum>(g)</enum><header>Prohibition</header><text>The
Corporation shall not engage in mortgage origination.</text>
</subsection></section><section id="id521A5B4A4A954D1386631BA43B1D94CE"><enum>102.</enum><header>Director</header>
<subsection id="id11DB206E18EC4A39AF78A94C10575DC1"><enum>(a)</enum><header>Establishment
of position</header><text>There is established the position of the Director of
the Corporation, who shall be the head of the Corporation.</text>
</subsection><subsection id="id258C80A8D893489EAE3A4D13D2F531E2"><enum>(b)</enum><header>Appointment;
term</header>
<paragraph id="id15192A6050174A208E79051970402F16"><enum>(1)</enum><header>Appointment</header><text>The
Director shall be appointed by the President, by and with the advice and
consent of the Senate, from among individuals who—</text>
<subparagraph id="id07B106F324FD4A62964A4360B5F96E3B"><enum>(A)</enum><text>are citizens of
the United States; and</text>
</subparagraph><subparagraph id="id19BB68B160B94A93B07423E11CF3DBDD"><enum>(B)</enum><text>have a
demonstrated technical, academic, or professional understanding of, and
practical, disciplinary, vocational, or regulatory experience working in, the
mortgage securities markets and housing finance.</text>
</subparagraph></paragraph><paragraph id="id76D37E911E684AA8BAAA7D0E688D7B6A"><enum>(2)</enum><header>Term</header><text>The
Director shall be appointed for a term of 5 years, unless removed before the
end of such term for cause by the President.</text>
</paragraph><paragraph id="id2902E926500140628693172223F1D93F"><enum>(3)</enum><header>Vacancy</header>
<subparagraph id="idF94FC39BD9414D83BEAC1663437AF37F"><enum>(A)</enum><header>In
general</header><text>A vacancy in the position of Director that occurs before
the expiration of the term for which a Director was appointed shall be filled
in the manner established under paragraph (1), and the Director appointed to
fill such vacancy shall be appointed only for the remainder of such
term.</text>
</subparagraph><subparagraph id="idFC183293E18B4572A662066627F580E7"><enum>(B)</enum><header>Acting
Director</header>
<clause id="idE861CF5139BD448CB8CCBEC189DDA5DD"><enum>(i)</enum><header>Designation by
the President</header>
<subclause id="idBFA8CA866040459AB8C0E48D9E3C46FA"><enum>(I)</enum><header>Eligible
individuals</header><text>If the Senate has not confirmed a Director, the
President may designate either the individual nominated, but not yet confirmed,
for the position of Director or a member of the Board of Directors to serve as
the Acting Director, and such Acting Director shall have all the rights,
duties, powers, and responsibilities of the Director, until such time as a
Director is confirmed by the Senate.</text>
</subclause><subclause id="id5FF7774C9D134DDA93FBD650AE572012"><enum>(II)</enum><header>Limitation</header><text>No
individual may serve concurrently as the Acting Director of the Corporation and
the Director of the Federal Housing Finance Agency.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="idCFD6F41D7A644A87ABA858C79E98893E"><enum>(4)</enum><header>Service after
end of term</header><text>An individual may serve as the Director after the
expiration of the term for which appointed until a successor has been
appointed.</text>
</paragraph><paragraph id="id2461FE96226D45408A5BE2448C46E69D"><enum>(5)</enum><header>Compensation</header><text>The
Director shall be compensated at the rate prescribed for level II of the
Executive Schedule under <external-xref legal-doc="usc" parsable-cite="usc/5/5313">section 5313</external-xref> of title 5, United States Code.</text>
</paragraph><paragraph id="id01ABFB8F12764C05A9254DBA5C89E999"><enum>(6)</enum><header>Rules of
construction</header><text>No individual—</text>
<subparagraph id="id65FB182C67DD4EF2867461FDA1424A01"><enum>(A)</enum><text>may serve
concurrently as the Director of the Corporation and the Director of the Federal
Housing Finance Agency; and</text>
</subparagraph><subparagraph id="id0E3598F26651403DA08DE0C9E1CEF4DB"><enum>(B)</enum><text>that has, at any
time prior to, on, or after the date of enactment of this Act, served as the
Director of the Federal Housing Finance Agency may serve as the Director of the
Corporation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id31590981CF904370B9A597FB3159CDF9"><enum>(c)</enum><header>Membership on
FSOC</header><text>The Dodd-Frank Wall Street Reform and Consumer Protection
Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id15D38635E89E4433A87690312461BF10"><enum>(1)</enum><text>in section 2, by
amending paragraph (12)(E) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id575944082C524C8FB56267AA19D989CD" style="OLC">
<subparagraph commented="no" id="idC53C87E35BD444668E3BE3219D8ED333"><enum>(E)</enum><text>the Federal
Mortgage Insurance Corporation, with respect to—</text>
<clause commented="no" id="idBC7553B48B36472E9886DE00024D001A"><enum>(i)</enum><text>the Mortgage
Insurance Fund established under title II of the
<short-title>Housing Finance Reform and Taxpayer
Protection Act of 2013</short-title>; and</text>
</clause><clause commented="no" id="idF0101DE17DA8493494A00C97DB9F48E6"><enum>(ii)</enum><text>the Federal Home
Loan Banks or the Federal Home Loan Bank
System.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA4770F5074BC4378954BF6E16C6146FA"><enum>(2)</enum><text>in section
111(b)(1)(H), by striking <quote>Director of the Federal Housing Finance
Agency</quote> and inserting <quote>Chairperson of the Federal Mortgage
Insurance Corporation</quote>.</text>
</paragraph></subsection></section><section id="idF0B0DE044B9F469B885DDE2E51236E79"><enum>103.</enum><header>Board of
Directors</header>
<subsection id="idAB7A95F389B542BA89A0A78DA6C78508"><enum>(a)</enum><header>Board of
Directors</header>
<paragraph id="idf2c8c12281d24621b374334c427648d6"><enum>(1)</enum><header>Voting
members</header><text>The management of the Corporation shall be vested in a
Board of Directors consisting of 5 voting members—</text>
<subparagraph id="id0e2b4edc8cd442919697f9ed8074fc81"><enum>(A)</enum><text>1 of whom shall
be the Director, who shall serve as Chairperson of the Board; and</text>
</subparagraph><subparagraph id="id98c40d00d8db4194b473c9905cd7b051"><enum>(B)</enum><text>4 of whom shall
be appointed by the President, by and with the advice and consent of the
Senate, from among individuals who are citizens of the United States—</text>
<clause id="id8BB4D639F9324B3E8EBD3DA4607158EC"><enum>(i)</enum><text>1
of whom shall have demonstrated technical, academic, or professional
understanding of, and practical, disciplinary, vocational, or regulatory
experience working in, the field of asset management;</text>
</clause><clause id="id3C3705B5A0054DD7B98232AD69304403"><enum>(ii)</enum><text>1
of whom shall have demonstrated technical, academic, or professional
understanding of, and practical, disciplinary, vocational, or regulatory
experience working in, mortgage insurance markets;</text>
</clause><clause id="idC4724CE4DD7247DE903F4814E0606093"><enum>(iii)</enum><text>1
of whom shall have a demonstrated technical, academic, or professional
understanding of, and practical, disciplinary, vocational, or regulatory
experience working with, lenders having less than $10,000,000,000 in total
assets; and</text>
</clause><clause id="id46CF94300EC94C808E35D9089B145106"><enum>(iv)</enum><text>1
of whom shall have a demonstrated technical, academic, or professional
understanding of, and practical, disciplinary, vocational, or regulatory
experience working with, multifamily housing development.</text>
</clause></subparagraph></paragraph><paragraph id="id725641c932214ad8b1d28392f695d211"><enum>(2)</enum><header>Non-voting
member</header><text>The President shall appoint the Director of the Federal
Housing Finance Agency as an additional non-voting member of the Board of
Directors. The Director of the Federal Housing Finance Agency shall serve as
non-voting member of the Board of Directors until such time as that position is
abolished pursuant to title III.</text>
</paragraph><paragraph id="H9DB6E400D4D747D8895065DEEBDE64E0"><enum>(3)</enum><header>Independence</header>
<subparagraph id="HF277119FF9F848138A160ECDB8638C32"><enum>(A)</enum><header>In
general</header><text>Each voting member of the Board of Directors shall be
independent and neutral and maintain a fiduciary relationship to the
Corporation in performing his or her duties.</text>
</subparagraph><subparagraph id="H1309AAF124D942A3835B94FA95C6E9F1"><enum>(B)</enum><header>Independence
determination</header><text>In order to be considered independent for purposes
of this paragraph, a voting member of the Board of Directors—</text>
<clause id="H7F46653ECF1544A583C7EFD7F756DFD6"><enum>(i)</enum><text>may
not, other than in his or her capacity as a member of the Board of Directors or
any committee thereof—</text>
<subclause id="H7EDE8A9EB0384208B137652DCA3FEA57"><enum>(I)</enum><text>accept any
consulting, advisory, or other compensatory fee from the Corporation; or</text>
</subclause><subclause id="H8435FE13954C4471A33601A34D8D231A"><enum>(II)</enum><text>be a person
associated with the Corporation or with any affiliated company thereof;
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H1C68BDD06DF84813ACF424DFA463573A"><enum>(ii)</enum><text>shall be
disqualified from any deliberation involving any transaction of the Corporation
in which the member has a financial interest in the outcome of the
transaction.</text>
</clause></subparagraph></paragraph><paragraph id="id8caeedbfab884b40b21349cf3e79ddf3"><enum>(4)</enum><header>Rule of
construction</header><text>No individual that has, at any time prior to, on, or
after the date of enactment of this Act, served as the Director or Acting
Director of the Federal Housing Finance Agency may serve as a voting member of
the Board of Directors.</text>
</paragraph></subsection><subsection id="idCC4852E1208D4D26833CC19347CE718B"><enum>(b)</enum><header>Administration</header><text>Except
as otherwise may provided in this Act, the Board of Directors shall administer
the affairs of the Corporation fairly and impartially and without
discrimination.</text>
</subsection><subsection id="id1FA8A0E2221448C7B40C7FBC54C4BBAD"><enum>(c)</enum><header>Consultation</header><text>The
Board of Directors may, in carrying out any duty, responsibility, requirement,
or action authorized under this Act, consult with the Federal banking agencies
or any individual Federal banking agency, as the Board determines necessary and
appropriate.</text>
</subsection><subsection id="idc6e609c18d2742d8b68ecbf6e8eca60e"><enum>(d)</enum><header>Terms</header>
<paragraph id="id60177f853db840538fcb2346a10fb0da"><enum>(1)</enum><header>Appointed
members</header><text>Each appointed voting member shall be appointed for a
term of 5 years and shall serve on a full-time basis.</text>
</paragraph><paragraph id="id90091d155cc146848efb5b848822b046"><enum>(2)</enum><header>Interim
appointments</header><text>Any voting member appointed to fill a vacancy
occurring before the expiration of the term for which such member's predecessor
was appointed shall be appointed only for the remainder of such term.</text>
</paragraph><paragraph id="idace22c66423149e182075ff44076a81b"><enum>(3)</enum><header>Continuation of
service</header><text>The Chairperson and each appointed voting member may
continue to serve after the expiration of the term of office to which such
member was appointed until a successor has been appointed and qualified.</text>
</paragraph></subsection><subsection id="id82389df3eb634e0691eee51c643460fa"><enum>(e)</enum><header>Vacancy</header><text>A
vacancy in the voting membership of the Board of Directors shall not affect the
powers of the Board, and shall be filled in the manner in which the original
appointment was made.</text>
</subsection><subsection id="id3E03D9A20C4347F99310EB867D5C8B01"><enum>(f)</enum><header>Voting</header><text>A
majority vote of all voting members of the Board of Directors is necessary to
resolve all voting issues of the Corporation.</text>
</subsection><subsection id="H6E6AB09D556B4D2792A9AC4F0999FC63"><enum>(g)</enum><header>Meetings</header><text>The
Board of Directors shall meet in accordance with the bylaws of the
Corporation—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H95F79F3E3431401F9D5010239DB095D3"><enum>(1)</enum><text>at the call of the
Chairperson; and</text>
</paragraph><paragraph id="HA179EB9ECCB34056832CB41A0C096635"><enum>(2)</enum><text>not less
frequently than once each month.</text>
</paragraph></subsection><subsection id="H9790179FF98D48A5BD6930289E5EB0A6"><enum>(h)</enum><header>Quorum</header><text>Three
voting members of the Board of Directors then in office shall constitute a
quorum.</text>
</subsection><subsection id="HD87FD99E9D394E15ABAB02FDAF1A3C9A"><enum>(i)</enum><header>Bylaws</header><text>A
majority of the voting members of the Board of Directors may amend the bylaws
of the Corporation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1F7C61843B014F64AD30323F060F185C"><enum>(j)</enum><header>Attendance</header><text>Members
of the Board of Directors may attend meetings of the Corporation and vote in
person, via telephone conference, or via video conference.</text>
</subsection><subsection commented="no" id="idc064c23f190f4c37bb27078ad88e6c10"><enum>(k)</enum><header>Ineligibility
for other offices during service</header>
<paragraph commented="no" id="id47F7B386F16F40918B5C188A21A90184"><enum>(1)</enum><header>In
general</header><text>No voting member of the Board of Directors may during the
time such member is in office—</text>
<subparagraph commented="no" id="id6cfc553eea3248f7ae1deb5f037b4062"><enum>(A)</enum><text>be an officer or
director of any insured depository institution, depository institution holding
company, Federal Reserve bank, Federal home loan bank, approved servicer,
approved private mortgage insurer, institution that originates eligible
mortgages, or institution that issues a covered security; or</text>
</subparagraph><subparagraph commented="no" id="idafb1feaea1ec41f19db20bcb5a54415f"><enum>(B)</enum><text>hold stock or a
controlling interest in any insured depository institution or depository
institution holding company, approved servicer, approved private mortgage
insurer, institution that originates eligible mortgages, or institution that
issues a covered security.</text>
</subparagraph></paragraph><paragraph commented="no" id="id17b9cb770c8f4da5b5fcae6ca287d4c9"><enum>(2)</enum><header>Certification</header><text>Upon
taking office, each voting member of the Board of Directors shall certify under
oath that such member has complied with this subsection and such certification
shall be filed with the secretary of the Board of Directors.</text>
</paragraph></subsection><subsection id="id40c2da8d4160421cb54ea577b23e1cab"><enum>(l)</enum><header>Status of
employees</header>
<paragraph id="iddbd3d30c4f524a35ae5c054160600c75"><enum>(1)</enum><header>In
general</header><text>A director, member, officer, or employee of the
Corporation has no liability under the Securities Act of 1933 (15 U.S.C. 77a et
seq.) with respect to any claim arising out of or resulting from any act or
omission by such person within the scope of such person's employment in
connection with any transaction involving the Corporation. This subsection
shall not be construed to limit personal liability for criminal acts or
omissions, willful or malicious misconduct, acts or omissions for private gain,
or any other acts or omissions outside the scope of such person's
employment.</text>
</paragraph><paragraph id="id11944ab279f74c86b15475331859c46b"><enum>(2)</enum><header>Effect on other
law</header>
<subparagraph id="idB72ABD1F0A944D99956F40CD9BB09810"><enum>(A)</enum><header>In
general</header><text>This subsection does not affect—</text>
<clause id="id93bf4fcfff544ebb917fbffc40c40c35"><enum>(i)</enum><text>any
other immunities and protections that may be available to such person under
applicable law with respect to such transactions; or</text>
</clause><clause id="id672907d0fc99416f93a208f39c94edd8"><enum>(ii)</enum><text>any other right
or remedy against the Corporation, against the United States under applicable
law, or against any person other than a person described in paragraph (1)
participating in such transactions.</text>
</clause></subparagraph><subparagraph id="idbb9701c441234be4bf92210c787c089b"><enum>(B)</enum><header>Rule of
construction</header><text>This subsection shall not be construed to limit or
alter in any way the immunities that are available under applicable law for
Federal officials and employees not described in this subsection.</text>
</subparagraph></paragraph></subsection></section><section id="idB9821AD4BCCF4B858E57EB29306B508A"><enum>104.</enum><header>Office of the
Inspector General</header>
<subsection id="id0E5735C0E298407CB09FAA49200222BE"><enum>(a)</enum><header>Office of
Inspector General</header>
<paragraph id="idC7C5EC2727AE4B7DB04DC69B983ED52F"><enum>(1)</enum><header>In
general</header><text>There is established the Office of the Inspector General
of the Federal Mortgage Insurance Corporation. The head of the Office of the
Inspector General of the Federal Mortgage Insurance Corporation is the
Inspector General of the Federal Mortgage Insurance Corporation (in this
section referred to as the <quote>Inspector General</quote>), who shall be
appointed by the President, by and with the advice and consent of the
Senate.</text>
</paragraph><paragraph id="idFEFD7948C38F4E07992F5DD34311DE85"><enum>(2)</enum><header>Additional
responsibilities</header><text>In addition to carrying out the requirements
established under the Inspector General Act of 1978 (5 U.S.C. App.), the
Inspector General shall—</text>
<subparagraph id="id0992D584BEB64C138118070EA5DCAFFF"><enum>(A)</enum><text>conduct,
supervise, and coordinate audits and investigations relating to the programs
and operations of the Corporation—</text>
<clause id="idF1D0034962EB407CB74E6466B3EFF4B6"><enum>(i)</enum><text>to
ensure that the first loss position that the Corporation requires of private
market holders of covered securities insured under this Act is adequate to
cover losses that might be incurred as a result of adverse economic conditions,
wherein such conditions are generally consistent with the economic conditions,
including national home price declines, observed in the United States during
moderate to severe recessions experienced during the last 100 years; and</text>
</clause><clause id="id033A56B29E4543E88A50E7F071299D4E"><enum>(ii)</enum><text>with respect to
the—</text>
<subclause id="id939B9470C8D94A55A46A4F1B4584F0CB"><enum>(I)</enum><text>oversight and
supervision of the Federal Home Loan Banks and the Federal Home Loan Bank
System; and</text>
</subclause><subclause id="id745093A98D764F1D89B135306B125BC9"><enum>(II)</enum><text>the contracting
practices and procedures of the Corporation; and</text>
</subclause></clause></subparagraph><subparagraph id="id13A32A9B49D84939A89F733346CF5C0B"><enum>(B)</enum><text>recommend
policies for the purpose of addressing any deficiencies, inefficiencies, gaps,
or failures in the administration of such programs and operations.</text>
</subparagraph></paragraph><paragraph id="idFDBEA9CA705E4B249D94475ADF1E34E8"><enum>(3)</enum><header>Inspector
General report; report of independent actuary</header><text>Beginning 1 year
after the FMIC certification date, and annually thereafter, the Inspector
General and an independent actuary contracted for by the Director shall each
conduct an examination and issue a separate report regarding—</text>
<subparagraph id="idE334A9E565144844AC44315F66BD0116"><enum>(A)</enum><text>the adequacy of
insurance fees charged by the Board of Directors under title II; and</text>
</subparagraph><subparagraph id="idE493DCA613A344458C7B995E8D7CB32C"><enum>(B)</enum><text>the adequacy of
the Mortgage Insurance Fund established under title II.</text>
</subparagraph></paragraph></subsection><subsection id="id881422F7C947463C9717C614B3D88B90"><enum>(b)</enum><header>Amendments to
Inspector General Act of 1978</header><text>Section 11 of the Inspector General
Act of 1978 (5 U.S.C. App.) is amended—</text>
<paragraph id="id0485055FF38E4563BF61A7E234566A88"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>Chairperson of the Federal Mortgage Insurance
Corporation;</quote> after <quote>the Director of the Federal Housing Finance
Agency;</quote>; and</text>
</paragraph><paragraph id="id72CE0F620E50407EBFD0597BCA444546"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after
<quote>the Federal Housing Finance Agency,</quote>.</text>
</paragraph></subsection><subsection id="idAB8A2D2BA0354ED9B47AA883D13C2A0A"><enum>(c)</enum><header>Compensation</header><text>The
annual rate of basic pay of the Inspector General shall be the annual rate of
basic pay provided for positions at level III of the Executive Schedule under
<external-xref legal-doc="usc" parsable-cite="usc/5/5314">section 5314</external-xref> of title 5, United States Code.</text>
</subsection></section><section id="id6a0db12365014f61a548ab644417e295"><enum>105.</enum><header>Staff,
experts, and consultants</header>
<subsection id="id280fef4c96fe437b8d0dde23fbcb2332"><enum>(a)</enum><header>Compensation</header>
<paragraph id="id4c0bac2894c04153b727a5b26c64e3c5"><enum>(1)</enum><header>In
general</header><text>The Board of Directors may appoint and fix the
compensation of such officers, attorneys, economists, examiners, and other
employees as may be necessary for carrying out the functions of the
Corporation.</text>
</paragraph><paragraph id="idb85a58d0be3a40f5990cd599947a078d"><enum>(2)</enum><header>Rates of
pay</header><text>Rates of basic pay and the total amount of compensation and
benefits for all employees of the Corporation may be—</text>
<subparagraph id="idC171156C84F8455CBD38610FD3D8F412"><enum>(A)</enum><text>set and adjusted
by the Board of Directors without regard to the provisions of chapter 51 or
subchapter III of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/53">chapter 53</external-xref> of title 5, United States Code; and</text>
</subparagraph><subparagraph id="idACD70CC0B780438382BC020127D6B30F"><enum>(B)</enum><text>reasonably
increased, notwithstanding any limitation set forth in paragraph (3), if the
Board of Directors determines such increases are necessary to attract and hire
qualified employees.</text>
</subparagraph></paragraph><paragraph id="id2db6b6bdb8a24fb1b05aa45de8f3b202"><enum>(3)</enum><header>Parity</header><text>The
Board of Directors may provide additional compensation and benefits to
employees of the Corporation, of the same type of compensation or benefits that
are then being provided by any agency referred to under section 1206 of the
Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
1833b) or, if not then being provided, could be provided by such an agency
under applicable provisions of law, rule, or regulation. In setting and
adjusting the total amount of compensation and benefits for employees, the
Board of Directors shall consult with and seek to maintain comparability with
the agencies referred to under section 1206 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (<external-xref legal-doc="usc" parsable-cite="usc/12/1833b">12 U.S.C. 1833b</external-xref>).</text>
</paragraph></subsection><subsection id="id5bc5a74415cc4deaaec5c281422c9eda"><enum>(b)</enum><header>Detail of
government employees</header><text>Upon the request of the Board of Directors,
any Federal Government employee may be detailed to the Corporation without
reimbursement, and such detail shall be without interruption or loss of civil
service status or privilege.</text>
</subsection><subsection id="idfb1eb190a47b4e9fa8aa8937ae956a93"><enum>(c)</enum><header>Experts and
consultants</header><text>The Board of Directors may procure the services of
experts and consultants as the Board considers necessary or appropriate.</text>
</subsection><subsection id="idfca430dd5d5d4d478f9f12103803c598"><enum>(d)</enum><header>Technical and
professional advisory committees</header><text>The Board of Directors may
appoint such special advisory, technical, or professional committees as may be
useful in carrying out the functions of the Corporation.</text>
</subsection></section><section id="id7B8A552DE01F43F3A3026D1263D2E60B"><enum>106.</enum><header>Reports;
testimony; audits</header>
<subsection id="id7b6414bc1bfb4d1eb1b722b1b2f4d833"><enum>(a)</enum><header>Reports</header>
<paragraph id="idAE5B6CB86D2A49FCB882756541477998"><enum>(1)</enum><header>In
general</header><text>The Corporation shall submit, on an annual basis, to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a written
report of its operations, activities, budget, receipts, and expenditures for
the preceding 12-month period.</text>
</paragraph><paragraph id="id28AB9149442A4E07B17C27AACB03E60A"><enum>(2)</enum><header>Contents of
report</header><text>The report required under subsection (a) shall include an
analysis of—</text>
<subparagraph id="idF5E3CC44EB9A43298144CC297361ADE5"><enum>(A)</enum><text>with respect to
the Mortgage Insurance Fund established under section 203—</text>
<clause id="idCAC070FC4FB4437B86BCCB8EB1664F05"><enum>(i)</enum><text>the
current financial condition of the Mortgage Insurance Fund;</text>
</clause><clause id="id2BC322150CB6487094AF4846529D6250"><enum>(ii)</enum><text>the exposure of
the Mortgage Insurance Fund to changes in those economic factors most likely to
affect the condition of that fund;</text>
</clause><clause id="idF3C04723411A4BACAA0A4E10849D83CA"><enum>(iii)</enum><text>a
current estimate of the resources needed for the Mortgage Insurance Fund to
achieve the purposes of this Act; and</text>
</clause><clause id="id5E4C1CBA4D0348F5AFB89FF57F72B4F9"><enum>(iv)</enum><text>any findings,
conclusions, and recommendations for legislative and administrative actions
considered appropriate to the future activities of the Corporation;</text>
</clause></subparagraph><subparagraph id="idF7BDA0330D4B43E1BFD1E6F82A89FEB8"><enum>(B)</enum><text>the secondary
mortgage market, the housing market, and the economy, including through use of
stress tests, and how such analysis was used to determine and set the reserve
ratio for the Mortgage Insurance Fund for the preceding 12-month period;</text>
</subparagraph><subparagraph id="id07E2511AE2E94142B513494E154B453A"><enum>(C)</enum><text>whether or not
the actual reserve ratio of the Mortgage Insurance Fund met—</text>
<clause id="id4A751580AD894DE189972BB20AE4D61E"><enum>(i)</enum><text>the
reserve ratio set for the preceding 12-month period; or</text>
</clause><clause id="id70015D879D054ABBBC08317B3CD54556"><enum>(ii)</enum><text>the reserve
ratio goals established in section 203(e);</text>
</clause></subparagraph><subparagraph id="id5925EA719F2D45D59AEB72D607BEECF2"><enum>(D)</enum><text>how the
Corporation intends to ensure that the goals set for the reserve ratio for the
Mortgage Insurance Fund are to be met and maintained for the next 12-month
period, and such analysis shall include a detailed and descriptive plan of the
actions that the Corporation intends to take pursuant to its authorities under
this Act;</text>
</subparagraph><subparagraph id="id5080F622E6654CF09CB6479286297F5F"><enum>(E)</enum><text>how the
Corporation has provided liquidity, transparency, and access to mortgage credit
in its support of a robust secondary mortgage market and the production of
residential mortgage-backed securities;</text>
</subparagraph><subparagraph id="idE2221CEA12084FC889834265D9136BE6"><enum>(F)</enum><text>the state of the
private label mortgage-backed securities market, and such analysis shall
include the submission of a reasonable set of administrative, regulatory, and
legislative proposals on how to limit the Federal Government's footprint in the
secondary mortgage market;</text>
</subparagraph><subparagraph id="id0C7A6C2411B24DE58594CD30EA1CAF93"><enum>(G)</enum><text>the effect that
further decreases in loan limits would have on the secondary mortgage market,
the housing market, and the economy; and</text>
</subparagraph><subparagraph id="id79AD51CC0E454FE69FBB31F4E331B00E"><enum>(H)</enum><text>the state of the
global covered bond market.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id95C4EBDA54D74E4C839975223E9A40A5"><enum>(b)</enum><header>Testimony</header><text>The
Chairperson of the Corporation, on a biannual basis, shall provide testimony to
the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives.</text>
</subsection><subsection id="id699F12AEC94D4CADA549F07898E8196F"><enum>(c)</enum><header>Audit of
Corporation</header>
<paragraph id="id120cfc35c3c0463fa98b70fd14d35df1"><enum>(1)</enum><header>Annual
audit</header><text>The Comptroller General of the United States shall annually
audit the financial transactions of the Corporation in accordance with the
United States generally accepted government auditing standards as may be
prescribed by the Comptroller General.</text>
</paragraph><paragraph id="id59F22969F415416CB5900137DBD1D7AC"><enum>(2)</enum><header>Place of
audit</header><text>The audit required under this subsection shall be conducted
at the place or places where accounts of the Corporation are normally
kept.</text>
</paragraph><paragraph id="idCE290D89334B4A54BD36EB7B6FFC0D13"><enum>(3)</enum><header>Access</header><text>The
representatives of the Comptroller General shall have access to the personnel
and to all books, accounts, documents, papers, records (including electronic
records), reports, files, and all other papers, automated data, or property
belonging to or under the control of or used or employed by the Corporation
pertaining to its financial transactions and necessary to facilitate the audit
required under this subsection, and such representatives shall be afforded full
facilities for verifying transactions with the balances or securities held by
depositories, fiscal agents, and custodians.</text>
</paragraph><paragraph id="id814957C12B5743CEB650E20D4460ED27"><enum>(4)</enum><header>Possession and
custody</header><text>All such books, accounts, documents, records, reports,
files, papers, and property of the Corporation used to carry out the audit
required under this subsection shall remain in the possession and custody of
the Corporation.</text>
</paragraph><paragraph id="idA35DB30684714562B0FDD991C90837D5"><enum>(5)</enum><header>Permissible
duplication</header><text>The Comptroller General may obtain and duplicate any
such books, accounts, documents, records, working papers, automated data and
files, or other information relevant to such audit without cost to the
Comptroller General and the Comptroller General’s right of access to such
information shall be enforceable pursuant to <external-xref legal-doc="usc" parsable-cite="usc/31/716">section 716(c)</external-xref> of title 31, United
States Code.</text>
</paragraph><paragraph id="id500704cc2db24e0cb470da3f22559442"><enum>(6)</enum><header>Report</header>
<subparagraph id="idC67191E54688437E909677143B35FD3E"><enum>(A)</enum><header>Submission to
Congress</header><text>The Comptroller General shall submit to Congress a
report of each annual audit conducted under this subsection.</text>
</subparagraph><subparagraph id="idDC9E6BE1BF1241CEAF7112F49A5D9AFE"><enum>(B)</enum><header>Required
content</header><text>The report to Congress required under subparagraph (A)
shall—</text>
<clause id="id324A96F7395048A4B689113FC59E9382"><enum>(i)</enum><text>set
forth the scope of the audit; and</text>
</clause><clause id="id92B099BAEFCB41488FF5892C10D41E2F"><enum>(ii)</enum><text>include—</text>
<subclause id="id976C2BD908844B61AD0FE669A59FBC5D"><enum>(I)</enum><text>the statement of
assets and liabilities and surplus or deficit;</text>
</subclause><subclause id="id1D837D5895DB49ADA82CE2816C1559D9"><enum>(II)</enum><text>the statement of
income and expenses;</text>
</subclause><subclause id="id791016DB2013403BA556D8B5648B156F"><enum>(III)</enum><text>the statement
of sources and application of funds; and</text>
</subclause><subclause id="id785FC83DD4E14F25A612FEF6EDBB2FBB"><enum>(IV)</enum><text>such comments
and information as the Comptroller General may deem necessary to inform
Congress of the financial operations and condition of the Corporation, together
with such recommendations with respect thereto as the Comptroller General may
deem advisable.</text>
</subclause></clause></subparagraph><subparagraph id="idE94084A032A94FDDB5B276F0AD36F4D1"><enum>(C)</enum><header>Copies</header><text>A
copy of each report required under subparagraph (A) shall be furnished to the
President and to the Chairperson of the Corporation at the time such report is
submitted to the Congress.</text>
</subparagraph></paragraph><paragraph id="id1fead710afe6474f80eabdef6be0aec4"><enum>(7)</enum><header>Assistance and
costs</header>
<subparagraph id="id0628C605B41A41BEBCC7265051488C97"><enum>(A)</enum><header>Permitted use
of outside assistance</header><text>For the purpose of conducting an audit
under this subsection, the Comptroller General may employ by contract, without
regard to section 3709 of the Revised Statutes of the United States (41 U.S.C.
5), professional services of firms and organizations of certified public
accountants for temporary periods or for special purposes.</text>
</subparagraph><subparagraph id="id1A6D7229A9C24152AD6ED2486586D86E"><enum>(B)</enum><header>Cost of audit
covered by Corporation</header>
<clause id="idB2A184ED2F2A40CCB303C91CC48854AA"><enum>(i)</enum><header>In
general</header><text>Upon the request of the Comptroller General, the
Chairperson of the Corporation shall transfer to the Comptroller General from
funds available, the amount requested by the Comptroller General to cover the
reasonable costs of any audit and report conducted by the Comptroller General
pursuant to this subsection.</text>
</clause><clause id="idD5CB9CFD043C49B79EE58421B4EF99E3"><enum>(ii)</enum><header>Credit of
funds</header><text>The Comptroller General shall credit funds transferred
under clause (i) to the account at the Treasury established for salaries and
expenses of the Government Accountability Office, and such amounts shall be
available upon receipt and without fiscal year limitation to cover the full
costs of the audit and report.</text>
</clause></subparagraph></paragraph></subsection></section><section id="id31AB9C7DD69145119FA2B15FB5329310"><enum>107.</enum><header>Initial
funding</header>
<subsection id="id020DF368396B41B7866AAA052DFF9295"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 1316 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4516) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA1CADF2F872B4421A3AA1E4E8FBCC313" style="OLC">
<subsection id="id03C861DA12CB4EEEBDDB59EFEFB7C3DF"><enum>(i)</enum><header>Annual
assessments relating to initial funding of the
FMIC</header><text>Notwithstanding title V of the
<short-title>Housing Finance Reform and Taxpayer
Protection Act of 2013</short-title> or any other provision of law, for the
period beginning on the date of enactment of this subsection and ending on the
FMIC certification date (as that date is set forth under section 2(16) of the
<short-title>Housing Finance Reform and Taxpayer
Protection Act of 2013</short-title>, the Director, in consultation with the
Chairperson of the Federal Mortgage Insurance Corporation, shall establish and
collect from the enterprises annual assessments in addition to those required
under subsection (a) in an amount not exceeding the amount sufficient to
provide for the reasonable costs (including administrative costs) and expenses
of the Corporation. All amounts collected under this subsection shall be
transferred to the Federal Mortgage Insurance Corporation. The annual
assessment shall be payable semiannually for each fiscal year, on October 1 and
April 1.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</subsection><subsection id="id93872b9f0dba4302bdd2d3af29b553a2"><enum>(b)</enum><header>Treatment of
assessments</header>
<paragraph id="id94307ce3376a42d8b09e07a1939993d5"><enum>(1)</enum><header>Deposit</header><text>Amounts
received by the Corporation from assessments imposed under section 1316(i) of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992
shall be deposited by the Corporation in the manner provided in section 5234 of
the Revised Statutes of the United States (<external-xref legal-doc="usc" parsable-cite="usc/12/192">12 U.S.C. 192</external-xref>) for monies deposited
by the Comptroller of the Currency.</text>
</paragraph><paragraph id="id1af734ebc30a43989218989e1b510e29"><enum>(2)</enum><header>Not government
funds</header><text>The amounts received by the Corporation from any assessment
imposed under section 1316(i) of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 shall not be construed to be Government or
public funds or appropriated money.</text>
</paragraph><paragraph commented="no" id="idc1730786f8804e9e8a0ed4ade3b076b1"><enum>(3)</enum><header>No
apportionment of funds</header><text>Notwithstanding any other provision of
law, the amounts received by the Corporation from any assessment imposed under
section 1316(i) of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 shall not be subject to apportionment for the purpose of
<external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/15">chapter 15</external-xref> of title 31, United States Code, or under any other
authority.</text>
</paragraph><paragraph id="idaf9823cd35c94c0ebc38d1a71a195b6d"><enum>(4)</enum><header>Use of
funds</header>
<subparagraph id="id3AE8D71541E84EEABE406172B2264843"><enum>(A)</enum><header>In
general</header><text>The Corporation may use any amounts received from
assessments imposed under section 1316(i) of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992—</text>
<clause id="id42455E49F9154D5B8AF6ED046037D9FA"><enum>(i)</enum><text>for
compensation of the employees of the Corporation; and</text>
</clause><clause id="id960C1C9C466243DCA70A38853FFD160E"><enum>(ii)</enum><text>for all other
expenses of the Corporation.</text>
</clause></subparagraph><subparagraph id="id46f0fd6a40a940899471f3be311531f5"><enum>(B)</enum><header>Treasury
investments</header><text>The Corporation may request the Secretary of the
Treasury to invest such portions of amounts received from assessments imposed
under section 1316(i) of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 that, in the discretion of the Corporation, are not
required to meet the current working needs of the Corporation.</text>
</subparagraph><subparagraph id="id9b44250d7eaa48c3814b30f420d46a83"><enum>(C)</enum><header>Government
obligations</header><text>Pursuant to a request under subparagraph (B), the
Secretary of the Treasury shall invest such amounts in Government
obligations—</text>
<clause id="id530EA67281CC4E70A91FFCF82F8D1ABE"><enum>(i)</enum><text>guaranteed as to
principal and interest by the United States with maturities suitable to the
needs of the Corporation; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD7E1A425C5194E17947BF294192CB979"><enum>(ii)</enum><text>bearing interest
at a rate determined by the Secretary of the Treasury taking into consideration
current market yields on outstanding marketable obligations of the United
States of comparable maturity.</text>
</clause></subparagraph></paragraph></subsection></section><enum>II</enum><header>Duties,
Responsibilities, and Structure of the FMIC</header>
<subtitle id="idA88AC5F5B81E4A22BB3C407EC3E0245A"><enum>A</enum><header>Duties and
Authorities</header>
<section id="id764C1E3D69DE41A1A700401933D84F7A"><enum>201.</enum><header>Duties and
responsibilities of the FMIC</header>
<subsection id="id3DBE4628704142DCA346C6AC8CD81E2E"><enum>(a)</enum><header>Duties</header><text>The
principal duties of the Corporation shall be to—</text>
<paragraph id="id0ACA6260732541DCBE35EDE088FEE68F"><enum>(1)</enum><text>carry out this
Act in a manner that—</text>
<subparagraph id="id1F6432E544D143B886DAE98A9A927588"><enum>(A)</enum><text>minimizes any
potential long-term negative cost on the taxpayer; and</text>
</subparagraph><subparagraph id="idA6AEEB1E730242CBBB01F135C15BE73A"><enum>(B)</enum><text>ensures, to the
maximum extent possible—</text>
<clause id="id67F11788211E4B40999A4A3D990F92A1"><enum>(i)</enum><text>a
liquid and resilient housing finance market; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id135B2E49AA0D4752A85257167859B29C"><enum>(ii)</enum><text>the availability
of mortgage credit;</text>
</clause></subparagraph></paragraph><paragraph id="id1B1AD41300A64F84ACECBDA79D919620"><enum>(2)</enum><text>develop standard
form credit risk-sharing mechanisms, products, structures, contracts, or other
security agreements that require private market holders of a covered security
insured under this Act to assume the first loss position with respect to losses
incurred on such securities;</text>
</paragraph><paragraph id="id888D9A467A0D4B72B57C707B6B448738"><enum>(3)</enum><text>provide insurance
on any covered security for which private market holders of such security have
assumed the first loss position with respect to losses that may be incurred on
such security in order to provide a liquid and resilient housing finance
market;</text>
</paragraph><paragraph id="idC366DB5F996D407F9C12967B807066D5"><enum>(4)</enum><text>provide
leadership to the housing finance market to help ensure that all geographic
locations have access to mortgage credit;</text>
</paragraph><paragraph id="id975B5058A0FD4039A17D13D66A20DD99"><enum>(5)</enum><text>charge and
collect fees in exchange for providing such insurance, whereby such fees shall
be sufficient to protect the taxpayer from the risk of providing such insurance
and to fund the activities and operations of the Corporation;</text>
</paragraph><paragraph id="idA4C9211785054DC89E23814DEF67DECA"><enum>(6)</enum><text>establish and
maintain a Mortgage Insurance Fund;</text>
</paragraph><paragraph id="id2B615C4ED80B4F90ACFC2D5C3043B591"><enum>(7)</enum><text>facilitate
securitization of eligible mortgages originated by credit unions and community
and mid-size banks without securitization capabilities;</text>
</paragraph><paragraph id="id334218545AD2461EB11ADD65B3F4BF36"><enum>(8)</enum><text>ensure discipline
and integrity in the market for covered securities by setting standards for the
approval of private mortgage insurers, servicers, issuers, and bond
guarantors;</text>
</paragraph><paragraph id="id2C94F822C9A54CB9A89EC0BA874713B4"><enum>(9)</enum><text>establish,
operate, and maintain a database for the collection, public use, and
dissemination of uniform loan level information on eligible mortgages;</text>
</paragraph><paragraph id="id4A4EB9FDDAFD44239C8DEA73BE76BDD0"><enum>(10)</enum><text>develop, adopt,
and publish standard uniform securitization agreements for covered
securities;</text>
</paragraph><paragraph id="idD646E5F870EA4CB382942CEB186F923D"><enum>(11)</enum><text>establish,
operate, and maintain an electronic registry system for eligible mortgages that
collateralize covered securities insured under this Act;</text>
</paragraph><paragraph id="idADE8A97AEDCD47338F6ACC48932E83BB"><enum>(12)</enum><text>oversee and
supervise the common securitization platform developed by the business entity
announced by the Federal Housing Finance Agency and established by the
enterprises; and</text>
</paragraph><paragraph id="idE4A749E123B748BE9836928714B49418"><enum>(13)</enum><text>ensure that
credit unions and community and mid-size banks—</text>
<subparagraph id="id3FDAA90D83E643A38BEFBE9B7F4D6ECE"><enum>(A)</enum><text>have equal access
to any such common securitization platform and any other securitization
platforms; and</text>
</subparagraph><subparagraph id="idC194FDDA2C94440BA19AB588845182DE"><enum>(B)</enum><text>are not, in their
access or use of such platforms, discriminated against through discounts for
volume pricing or other mechanisms.</text>
</subparagraph></paragraph></subsection><subsection id="idd54f5502c8364cce89db0c628bf047b1"><enum>(b)</enum><header>Scope of
authority</header><text>The authority of the Corporation shall include the
authority to exercise such incidental powers as may be necessary or appropriate
to fulfill the duties and responsibilities of the Corporation set forth under
subsection (a).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5aa175ed12b24da3b762112ba06a4842"><enum>(c)</enum><header>Delegation of
authority</header><text>The Board of Directors may delegate to officers and
employees of the Corporation any of the functions, powers, or duties of the
Corporation, as the Board of Directors determines appropriate.</text>
</subsection></section><section id="idED9F9DC5AF464A718EFA50C9EF7EFA1E"><enum>202.</enum><header>Standard form
credit risk-sharing mechanisms, products, structures, contracts, or other
security agreements</header>
<subsection id="idE98CE6D30093409080E60191B9216967"><enum>(a)</enum><header>Requirements;
share of loss; diversity</header><text display-inline="yes-display-inline">Pursuant to section 201(a)(2), the
Corporation shall develop standard form credit-risk sharing mechanisms,
products, structures, contracts, or other security agreements which shall
require that the first loss position of private market holders of a covered
security insured under this Act—</text>
<paragraph id="id67933ED45A4F4C349278284EE1FEC432"><enum>(1)</enum><text>is adequate to
cover losses that might be incurred as a result of adverse economic conditions,
wherein such conditions are generally consistent with the economic conditions,
including national home price declines, observed in the United States during
moderate to severe recessions experienced during the last 100 years; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC518D9B9C04F4CBE895D464761F2505F"><enum>(2)</enum><text>is not less than
10 percent of the principal or face value of the covered security.</text>
</paragraph></subsection><subsection id="id40DE639273324E56AB014FA6AF4678E5"><enum>(b)</enum><header>Development
window for risk-Sharing mechanisms</header>
<paragraph id="id58630206ABC04E6A871FCFB44984E815"><enum>(1)</enum><header>In
general</header><text>The Corporation shall complete the development and
implementation of the mechanisms, products, structures, contracts, or other
security agreements required under subsection (a) not later than 5 years after
the date of enactment of this Act.</text>
</paragraph><paragraph id="id299AD2FBEF124DE78CD483E88652221D"><enum>(2)</enum><header>Examination of
various mechanisms</header><text>In developing the mechanisms, products,
structures, contracts, or other security agreements required under subsection
(a), the Corporation shall—</text>
<subparagraph id="idFB244C9CF6E7404CB8DF3BF249B0B2C2"><enum>(A)</enum><text>examine proposals
that include a senior-subordinated deal structure, credit-linked structures,
and the use of regulated guarantors with sufficient equity capital to absorb
losses associated with moderate or severe economic downturns;</text>
</subparagraph><subparagraph id="id6E5BE324EABC46FFB56D48FD0887A7A8"><enum>(B)</enum><text>consider any
risk-sharing mechanisms, products, structures, contracts, or other security
agreements undertaken by the business entity announced by the Federal Housing
Finance Agency and established by the enterprises to provide a common
securitization platform for issuers in the secondary mortgage market;</text>
</subparagraph><subparagraph id="id18249CD83C744A998DEBF5E3D32300AF"><enum>(C)</enum><text>consider how each
proposed mechanism, product, structure, contract, or other security
agreement—</text>
<clause id="id9fcafac9de714793bf010bdf45c9f185"><enum>(i)</enum><text>minimizes any
potential long-term negative cost to the taxpayer;</text>
</clause><clause id="id7569fb0bb2c94db187e005ddfec2241a"><enum>(ii)</enum><text>impacts the
availability of mortgage credit for—</text>
<subclause id="idAB9B1831C95B4DEAA3F34C699DE8A8E6"><enum>(I)</enum><text>small financial
institutions, such as credit unions and community and mid-size banks;
and</text>
</subclause><subclause id="id0C3B36609ADA4796942BBD4D4462BFEA"><enum>(II)</enum><text>consumers;</text>
</subclause></clause><clause id="id71ab9ed8b2d541ceb15deb01743d2e81"><enum>(iii)</enum><text>influences
mortgage affordability;</text>
</clause><clause id="id63ea3198d4a94f47a3db0110d9bb5b1b"><enum>(iv)</enum><text>allows for loan
modifications and foreclosure prevention alternatives;</text>
</clause><clause id="id6a659f99fa5b49229c247f471a955da7"><enum>(v)</enum><text>interacts with
the To-Be-Announced market; and</text>
</clause><clause id="idf7a7bd8fe7614e1dbaefcd5d8e71d02c"><enum>(vi)</enum><text>facilitates
market liquidity and resiliency; and</text>
</clause></subparagraph><subparagraph id="idE4AB41BFAD684AB39CE1749432174F53"><enum>(D)</enum><text>ensure that
lenders of all sizes and from all geographic locations, including rural
locations, have equitable access to secondary mortgage market financing.</text>
</subparagraph></paragraph><paragraph id="idC3640F9C04104D1598022CA53FB26305"><enum>(3)</enum><header>Report</header>
<subparagraph id="id4325E75F9AE1461BB5C06907C5DB7D6C"><enum>(A)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, and annually thereafter until the end of the 5-year period provided in
paragraph (1), the Corporation shall submit a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives that—</text>
<clause id="idB9FDC22643344726A83F2DF43BBC67D3"><enum>(i)</enum><text>details the
benefits and drawbacks of each mechanism, product, structure, contract, or
other security agreement that the Director considered in carrying out the
requirement of this section;</text>
</clause><clause id="id5048F97A9C4D4175A33C3B71BF243D01"><enum>(ii)</enum><text>describes the
operation and execution of any mechanisms, products, structures, contracts, or
other security agreements that the Director determines best fulfills the
requirements of this section; and</text>
</clause><clause id="id840FBB20683E4D99AB0CB504622E7D09"><enum>(iii)</enum><text>explains how
the Corporation arrived at the determination made under clause (ii).</text>
</clause></subparagraph><subparagraph id="id56D183055C894429BA8CB62635BAB24A"><enum>(B)</enum><header>Subsequent
reports</header><text>After the expiration of the 5-year period provided in
paragraph (1) and the submission of the report required under subparagraph (A),
each time the Corporation develops an additional standard form credit
risk-sharing mechanism, product, structure, contract, or other security
agreement that fulfills the requirements of this section, the Corporation shall
submit a report to the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House of Representatives
addressing the identical concerns set forth under clauses (i) through (iii) of
subparagraph (A).</text>
</subparagraph></paragraph></subsection></section><section id="id2A5F53D826764700987BE6B54ECEC0F2"><enum>203.</enum><header>Mortgage
Insurance Fund</header>
<subsection id="id9AE43C5865A145288C4F778A955FEDC9"><enum>(a)</enum><header>Establishment</header><text>There
is established the Mortgage Insurance Fund, which the Corporation shall—</text>
<paragraph id="id9B492A0A57D84DDB86664687A564BB5B"><enum>(1)</enum><text>maintain and
administer; and</text>
</paragraph><paragraph id="id3341EB525404491C874855D3F91F65AB"><enum>(2)</enum><text>use to cover
losses incurred on covered securities insured under this Act, when such losses
exceed the first position losses absorbed by private market holders of such
securities.</text>
</paragraph></subsection><subsection id="id2d98b58039d845fd8ee4d0e02bffe459"><enum>(b)</enum><header>Deposits</header><text>The
Mortgage Insurance Fund shall be credited with any—</text>
<paragraph id="idbf6a6d811c0b4205b1341dae229618f0"><enum>(1)</enum><text>insurance fee
amounts required to be deposited in the Fund under this section;</text>
</paragraph><paragraph id="id5182180423C240038371542A8BFD9150"><enum>(2)</enum><text>guarantee fee
amounts collected under section 601; and</text>
</paragraph><paragraph id="id3c27b4dc1d104f33a52c728de2aee0b2"><enum>(3)</enum><text>amounts earned on
investments pursuant to subsection (h).</text>
</paragraph></subsection><subsection id="idb481acb5c14f4b40bc61fa79cffd25e1"><enum>(c)</enum><header>Fiduciary
responsibility</header><text>The Corporation has the responsibility to ensure
that the Mortgage Insurance Fund remains financially sound.</text>
</subsection><subsection id="id0F8B10C13BA343AE8AD9C1D615161818"><enum>(d)</enum><header>Use</header>
<paragraph id="id20F9623946AC49E78C098FDEF797355F"><enum>(1)</enum><header>In
general</header><text>The Mortgage Insurance Fund shall be solely available to
the Corporation for use by the Corporation to carry out the functions
authorized by this Act and may not be used or otherwise diverted to cover any
other expense of the Federal Government.</text>
</paragraph><paragraph id="id357BC8F0B7C64978B7CAC4B3643638BE"><enum>(2)</enum><header>Exemption from
apportionment</header><text>Notwithstanding any other provision of law, amounts
received by the Mortgage Insurance Fund pursuant to any fees collected under
this section shall not be subject to apportionment for the purposes of chapter
15 of title 31, United States Code, or under any other authority.</text>
</paragraph></subsection><subsection id="idBE54F0EDEFB5498EBCB2AD321AA0A2C0"><enum>(e)</enum><header>Reserve ratio
goals for Mortgage Insurance Fund</header><text>The Corporation shall endeavor
to ensure that the Mortgage Insurance Fund attains a reserve balance—</text>
<paragraph id="id406106B4C3E94AB9A062092DC57F1B62"><enum>(1)</enum><text>of 1.25 percent
of the sum of the outstanding principal balance of the covered securities for
which insurance is being provided under this title within 5 years of the FMIC
certification date, and to strive to maintain such ratio thereafter, subject to
subparagraph (B); and</text>
</paragraph><paragraph id="idBB8E5E90F2334A4C92092B5E1213D4B1"><enum>(2)</enum><text>of 2.50 percent
of the sum of the outstanding principal balance of the covered securities for
which insurance is being provided under this title within 10 years of the FMIC
certification date, and to strive to maintain such ratio at all times
thereafter.</text>
</paragraph></subsection><subsection id="id71218D140349492AAD70EBA4F55E6262"><enum>(f)</enum><header>Maintenance of
reserve ratio; establishment of fees</header>
<paragraph id="ID56c112ab5a2c43e6a46add1e2ca347d6"><enum>(1)</enum><header>Establishment
of fees</header><text>The Corporation shall charge and collect a fee, and may
in its discretion increase or decrease such fee, in connection with any
insurance provided under this title to—</text>
<subparagraph id="IDfe74ea8615e74a279815279d8d120615"><enum>(A)</enum><text>achieve and
maintain the reserve ratio goals established under subsection (e);</text>
</subparagraph><subparagraph id="ID56b44519c2a340f083c4b9db44f26d46"><enum>(B)</enum><text>achieve such
reserve ratio goals, if the actual balance of such reserve is below the goal
amounts established under subsection (e); and</text>
</subparagraph><subparagraph id="id16699D6478DF42B9AA411C8A55F8E3B6"><enum>(C)</enum><text>fund the
operations of the Corporation.</text>
</subparagraph></paragraph><paragraph id="IDbd7982d36c15472cb7cabaa7a374aba8"><enum>(2)</enum><header>Fee
considerations</header><text>In exercising the authority granted under
paragraph (1), the Corporation shall consider—</text>
<subparagraph id="ID24a1188c89a946f89df4886dd245b408"><enum>(A)</enum><text>the expected
operating expenses of the Mortgage Insurance Fund;</text>
</subparagraph><subparagraph id="IDb1d2ffafb63a44928892bf5db46f1e63"><enum>(B)</enum><text>the risk of loss
to the Mortgage Insurance Fund in carrying out the requirements under this
Act;</text>
</subparagraph><subparagraph id="idC07F73CB55E04F9B908C085E83316FF7"><enum>(C)</enum><text>the risk
presented by, and the loss absorption capacity of, the credit enhancement that
is provided on the pool of eligible mortgages collateralizing the covered
security to be insured under this title;</text>
</subparagraph><subparagraph id="id562936950FA543F5B202800CD71C97EA"><enum>(D)</enum><text>economic
conditions generally affecting the mortgage markets;</text>
</subparagraph><subparagraph id="idAE5C0CE78FE848E795BEBCA206FE488A"><enum>(E)</enum><text>the extent to
which the reserve ratio of the Mortgage Insurance Fund met—</text>
<clause id="id84F853A8E1424B989BE8954086927884"><enum>(i)</enum><text>the
reserve ratio set for the preceding 12-month period; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id6B4738A456944353BF9EA2F1F90B1AAF"><enum>(ii)</enum><text>the reserve
ratio goals established in subsection (e); and</text>
</clause></subparagraph><subparagraph id="ID8e0ab318d94e4e19892319e492f3d71e"><enum>(F)</enum><text>any other factor
that the Corporation determines appropriate.</text>
</subparagraph></paragraph><paragraph id="idE389F20C0E3945D5961516890A632191"><enum>(3)</enum><header>Fee
Uniformity</header><text>The fee required under paragraph (1)—</text>
<subparagraph id="idC21E7BC266B146A6A1884996CF11185A"><enum>(A)</enum><text>shall be set at a
uniform amount applicable to all institutions purchasing insurance under this
title;</text>
</subparagraph><subparagraph id="idD0E5FA16E23F455DBC977047C3705DC1"><enum>(B)</enum><text>may not
vary—</text>
<clause id="idB48F9CBB76AA46EC9F3C4E5E8D19BF43"><enum>(i)</enum><text>by
geographic location; or</text>
</clause><clause id="id2778811F8FAF4EF8A50A6EECCC0AA2E0"><enum>(ii)</enum><text>by
the size of the institution to which the fee is charged; and</text>
</clause></subparagraph><subparagraph id="id77C781D4145747FF9ECE911D8F563E3B"><enum>(C)</enum><text>may not be based
on the volume of insurance to be purchased by an approved issuer.</text>
</subparagraph></paragraph><paragraph id="idDE67E945FF79473CB34655F5681B9346"><enum>(4)</enum><header>Deposit into
Mortgage Insurance Fund</header><text>Any fee amounts collected under this
subsection shall be deposited in the Mortgage Insurance Fund.</text>
</paragraph></subsection><subsection id="id8f14e089e1a24a66855a753fe70d3d3a"><enum>(g)</enum><header>Full Faith and
Credit</header><text>The full faith and credit of the United States is pledged
to the payment of all amounts from the Mortgage Insurance Fund which may be
required to be paid under any insurance provided under this title.</text>
</subsection><subsection id="id82F81367164442F7857E4D7E7347BC29"><enum>(h)</enum><header>Investments</header><text>Amounts
in the Mortgage Insurance Fund that are not otherwise employed—</text>
<paragraph id="id427540225E854C73B51304DE69767F73"><enum>(1)</enum><text>shall be invested
in obligations of the United States; and</text>
</paragraph><paragraph id="id92E1BA0AEB0748AB90590B32B3A4E769"><enum>(2)</enum><text>may not be
invested in any covered security insured under this Act.</text>
</paragraph></subsection></section><section id="idDE396487E67E4047B96A4DCF371C7EB3"><enum>204.</enum><header>Insurance</header>
<subsection id="id01fabfcc412d4024a048525072fba1fa"><enum>(a)</enum><header>Authority</header><text>The
Corporation shall, upon application and in exchange for a fee in accordance
with section 203(f), insure the payment of principal and interest on a covered
security with respect to losses that may be incurred on such security.</text>
</subsection><subsection id="idD5F1824F190D4B62B5A8D36427705C56"><enum>(b)</enum><header>Precondition;
ensuring placement of first loss capital</header><text>The Corporation shall
develop standards and processes to ensure that prior to making any commitment
to provide insurance under this section that private market holders have taken
first loss position in a covered security and that such holders have sufficient
capital to cover their risk-sharing obligations.</text>
</subsection><subsection id="id8DC3B8B1F8244B6FA77D36F7BED7C62A"><enum>(c)</enum><header>Cash payments;
continued operations</header><text>In the event of a payment default on an
eligible mortgage that collateralizes a covered security insured under this
section that exceeds the first loss position assumed by a private market holder
or that, in the case of an approved bond guarantor, if the guarantor has become
insolvent, the Corporation shall—</text>
<paragraph id="id8EE4E6BAF85A4385934D839D2E0C05DA"><enum>(1)</enum><text>pay, in cash when
due, any shortfalls in payment of principal and interest under the eligible
mortgage; and</text>
</paragraph><paragraph id="idEAA647250B49420A9AEB315A58298DCB"><enum>(2)</enum><text>continue to
charge and collect any fees for the provision of insurance (in accordance with
section 203(f)) relating to the covered security.</text>
</paragraph></subsection><subsection id="id527E2003560B4B1193FF2A0AB238FD34"><enum>(d)</enum><header>Full faith and
credit</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
insurance provided under this section.</text>
</subsection><subsection id="id92D5B9EB3F7F4AC69B9DA9D2B8C30CA3"><enum>(e)</enum><header>Prohibition on
Federal assistance</header><text>Notwithstanding any other provision of law, no
Federal funds may be used to purchase or guarantee obligations of, issue lines
of credit to, provide direct or indirect access to any financing provided by
the United States Government to, or provide direct or indirect grants and aid
to any private market holder of the first loss position on a covered security
which, on or after the date of enactment of this Act, has defaulted on its
obligations, is at risk of defaulting, or is likely to default, absent such
assistance from the United States Government.</text>
</subsection></section><section id="id4671DC57563945928B1FA1F6943A8CA2"><enum>205.</enum><header>Authority to
protect taxpayers in unusual and exigent market conditions</header>
<subsection id="id8C1C734362E74AA2987A83A600FE217B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">If the Corporation,
upon the written agreement of the Chairman of the Board of Governors of the
Federal Reserve System and the Secretary of the Treasury, and in consultation
with the Secretary of Housing and Urban Development, determines that unusual
and exigent circumstances have created or threatened to create an anomalous
lack of mortgage credit availability within the housing markets that could
materially and severely disrupt the functioning of the housing finance system
of the United States, the Corporation may, for a period not to exceed 6 months,
provide insurance in accord with section 204 to any covered security regardless
of whether such security has satisfied the requirements of section
202(a).</text>
</subsection><subsection id="id889EC6874B004ED094C4A824427D677C"><enum>(b)</enum><header>Considerations</header><text>In
exercising the authority granted under subsection (a), the Corporation shall
consider the severity of the conditions present in the housing markets and the
risks presented to the Mortgage Insurance Fund in exercising such
authority.</text>
</subsection><subsection id="idD8AF2F86BAF14F6BA1FA873BE6D56889"><enum>(c)</enum><header>Limitation</header><text>The
authority granted to the Corporation under subsection (a) may not be exercised
more than once in any given 3-year period.</text>
</subsection></section><section id="idc2f92bb57d5b41a98dad61d5546a8b9b"><enum>206.</enum><header>General
powers</header>
<subsection id="idde5b41f4fbe64f55886221537f695afd"><enum>(a)</enum><header>Corporate
powers</header><text>The Federal Mortgage Insurance Corporation shall have
power—</text>
<paragraph id="id5737515F8C134919B762F935B45C3445"><enum>(1)</enum><text>to adopt, alter,
and use a corporate seal, which shall be judicially noticed;</text>
</paragraph><paragraph id="id2FC98C52C25E4FEEB56178940E0C948C"><enum>(2)</enum><text>to enter into and
perform contracts, leases, cooperative agreements, or other transactions, on
such terms as it may deem appropriate, with any agency or instrumentality of
the United States, or with any State, Territory, or possession, or the
Commonwealth of Puerto Rico, or with any political subdivision thereof, or with
any person, firm, association, or corporation;</text>
</paragraph><paragraph id="idD0EBBEC0BD7E4681BF39AD7AE5A1D798"><enum>(3)</enum><text>to execute, in
accordance with its bylaws, all instruments necessary or appropriate in the
exercise of any of its powers;</text>
</paragraph><paragraph id="id46D0021C02CA42CC8647A81B9AF8FC18"><enum>(4)</enum><text>in its corporate
name, to sue and to be sued, and to complain and to defend, in any court of
competent jurisdiction, State or Federal, but no attachment, injunction, or
other similar process, mesne or final, shall be issued against the property of
the Corporation;</text>
</paragraph><paragraph id="id62F128340BFF476A8F0807E1A34503A9"><enum>(5)</enum><text>to conduct its
business without regard to any qualification or similar statute in any State of
the United States, including the District of Columbia, the Commonwealth of
Puerto Rico, and the Territories and possessions of the United States;</text>
</paragraph><paragraph id="id837FA4950DA24A498CCEFC497F1FE520"><enum>(6)</enum><text>to lease,
purchase, or acquire any property, real, personal, or mixed, or any interest
therein, to hold, rent, maintain, modernize, renovate, improve, use, and
operate such property, and to sell, for cash or credit, lease, or otherwise
dispose of the same, at such time and in such manner as and to the extent that
it may deem necessary or appropriate;</text>
</paragraph><paragraph id="id62F4774F263E4E0FBE244AFD2FD1EE10"><enum>(7)</enum><text>to prescribe,
repeal, and amend or modify, rules, regulations, or requirements governing the
manner in which its general business may be conducted;</text>
</paragraph><paragraph id="id66B8F5C856B14620AFD46EBFE11A6047"><enum>(8)</enum><text>to accept gifts
or donations of services, or of property, real, personal, or mixed, tangible,
or intangible, in aid of any of its purposes; and</text>
</paragraph><paragraph id="id8BBA59F819DB49698F793551E7D56710"><enum>(9)</enum><text>to do all things
as are necessary or incidental to the proper management of its affairs and the
proper conduct of its business.</text>
</paragraph></subsection><subsection id="ide8dd6edaff2f46028417785e6332ef7b"><enum>(b)</enum><header>Expenditures</header><text>Except
as may be otherwise provided in this title, in <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/31/91">chapter 91</external-xref> of title 31, United
States Code, or in other laws specifically applicable to Government
corporations, the Corporation shall determine the necessity for, and the
character and amount of its obligations and expenditures, and the manner in
which they shall be incurred, allowed, paid, and accounted for.</text>
</subsection><subsection id="idf7a5c1b84d4a4d278d38d1b23f9b3a68"><enum>(c)</enum><header>Exemption from
certain taxes</header><text>The Corporation, including its franchise, capital,
reserves, surplus, mortgages or other security holdings, and income shall be
exempt from all taxation now or hereafter imposed by the United States, by any
territory, dependency, or possession thereof, or by any State, county,
municipality, or local taxing authority, except that any real property of the
Corporation shall be subject to State, territorial, county, municipal, or local
taxation to the same extent according to its value as other real property is
taxed.</text>
</subsection><subsection id="idff311aec953a49d695edf4a42e1e9c75"><enum>(d)</enum><header>Exclusive use
of name</header><text>No individual, association, partnership, or corporation,
except the bodies corporate named under section 101, shall hereafter use the
words <quote>Federal Mortgage Insurance Corporation</quote> or any combination
of such words, as the name or a part thereof under which the individual,
association, partnership, or corporation shall do business. Violations of the
foregoing sentence may be enjoined by any court of general jurisdiction at the
suit of the proper body corporate. In any such suit, the plaintiff may recover
any actual damages flowing from such violation, and, in addition, shall be
entitled to punitive damages (regardless of the existence or nonexistence of
actual damages) of not exceeding $100 for each day during which such violation
is committed or repeated.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id12129ad3ef634b2b9b5562011acc8237"><enum>(e)</enum><header>Fiscal
agents</header><text>The Federal Reserve banks are authorized and directed to
act as depositories, custodians, and fiscal agents for each of the bodies
corporate named in section 101, for its own account or as fiduciary, and such
banks shall be reimbursed for such services in such manner as may be agreed
upon; and each of such bodies corporate may itself act in such capacities, for
its own account or as fiduciary, and for the account of others.</text>
</subsection></section><section id="id2CFEF93D634543BEBD944007942E2EF8"><enum>207.</enum><header>Exemptions</header>
<subsection id="id246D703E8E554D6A8642454A6582D370"><enum>(a)</enum><header>Securities
exempt from SEC regulation</header>
<paragraph id="id31D6A2F6732B4BE29874851996B1B4F4"><enum>(1)</enum><header>In
general</header><text>All covered securities insured or guaranteed by the
Corporation shall, to the same extent as securities that are direct obligations
of or obligations guaranteed as to principal or interest by the United States,
be deemed to be exempt securities within the meaning of the laws administered
by the Securities and Exchange Commission.</text>
</paragraph><paragraph id="id418C37999EC1408AB6868794640CA415"><enum>(2)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">The first sentence
of section 3(a)(2) of the Securities Act of 1933 (<external-xref legal-doc="usc" parsable-cite="usc/15/77c">15 U.S.C. 77c(a)(2)</external-xref>) is
amended by inserting <quote>or any covered security, as such term is defined
under section 2(9) of the <short-title>Housing Finance
Reform and Taxpayer Protection Act of 2013</short-title>;</quote> after
<quote>Federal Reserve bank;</quote>.</text>
</paragraph></subsection><subsection id="idFB2562E10B6F40A19B9ACE016D5C48C8"><enum>(b)</enum><header>QRM
exemption</header><text>Section 15G(e) of the Securities Exchange Act of 1934
(<external-xref legal-doc="usc" parsable-cite="usc/15/78o-11">15 U.S.C. 78o–11(e)</external-xref>) is amended—</text>
<paragraph id="id3770AA477D0244E68F3C258F80571A82"><enum>(1)</enum><text>in paragraph
(3)(B)—</text>
<subparagraph id="id27D931BEA48147C7AA752D402991B549"><enum>(A)</enum><text>by striking
<quote>Association, the</quote> and inserting <quote>Association and
the</quote>; and</text>
</subparagraph><subparagraph id="id6830F46EC9B44FEBBD57141E59BFE678"><enum>(B)</enum><text>by striking
<quote>and the Federal home loan banks</quote>; and</text>
</subparagraph></paragraph><paragraph id="id5E2B313E35614808AC4766BCF9268B2F"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id26F2864A35394900BD4A87435D126CB1" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idD9FB547F0DAB4D07858A7BCA465D3BB6"><enum>(7)</enum><header>Covered
securities insured by the Federal Mortgage Insurance
Corporation</header><text>Notwithstanding any other provision of this section,
the requirements of this section shall not apply to any covered security, as
such term is defined under section 2(9) of the
<short-title>Housing Finance Reform and Taxpayer
Protection Act of 2013</short-title>, insured or guaranteed by the Federal
Mortgage Insurance Corporation or any institution that is subject to the
supervision of the Federal Mortgage Insurance
Corporation.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section></subtitle><subtitle id="id161CCBE6384643978349564D48B265A7"><enum>B</enum><header>Oversight of
market participants</header>
<section id="id68262AE0ADF64843BFC75EF22BB55BE5"><enum>211.</enum><header>Approval of
private mortgage insurers</header>
<subsection id="id6305436D97C748BA86AAEFBD81ACEA12"><enum>(a)</enum><header>Standards for
approval of private mortgage insurers</header>
<paragraph id="idaacfac8922da495fb10f78a1f1248748"><enum>(1)</enum><header>In
general</header><text>The Corporation shall develop, adopt, and publish
standards for the approval by the Corporation of private mortgage insurers to
provide private mortgage insurance on eligible mortgages.</text>
</paragraph><paragraph id="id55A9D4E8F21541EBA8A3ADF68DD1C9D7"><enum>(2)</enum><header>Required
standards</header><text>The standards required under paragraph (1) shall
include—</text>
<subparagraph id="idF139F7F48E3A48DDA9C6FD14C0A1256C"><enum>(A)</enum><text>the financial
history and condition of the insurer;</text>
</subparagraph><subparagraph id="id384D2D303A3240E18D89F50D6D8CBFC3"><enum>(B)</enum><text>the adequacy of
the insurer's capital structure, including whether the insurer has sufficient
capital to cover the first loss insurance obligations it assumes under this Act
and that might be incurred in a period of economic stress, including, but not
limited to, any period of economic stress that would result in a 30 percent (or
greater) national home price decline;</text>
</subparagraph><subparagraph id="idA194590596284F5D978FDFD4F99ABDCB"><enum>(C)</enum><text>the general
character and fitness of the management of the insurer, including compliance
history with Federal and State laws;</text>
</subparagraph><subparagraph id="id39DDAB4EC98D4A24B4F236B3ECC31FF5"><enum>(D)</enum><text>the risk
presented by such insurer to the Mortgage Insurance Fund;</text>
</subparagraph><subparagraph id="idfdf616c5a1ed47be94e7e1e181ea72a6"><enum>(E)</enum><text>the adequacy of
insurance and fidelity coverage of the insurer;</text>
</subparagraph><subparagraph id="id6c6d842adaec406d94f5317f0195d44d"><enum>(F)</enum><text>a requirement
that the insurer submit audited financial statements to the Director;
and</text>
</subparagraph><subparagraph id="id5B773AAB6198471C94904173C97E2228"><enum>(G)</enum><text>any other
standard the Corporation determines necessary or appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="id0b618edca376490383c67ece98c90116"><enum>(b)</enum><header>Application and
approval</header>
<paragraph id="idd857a9d372c941fc99f3432be807372d"><enum>(1)</enum><header>Application
process</header><text>The Corporation shall establish an application process,
in such form and manner and requiring such information as the Corporation may
require, for the approval of private mortgage insurers under this
section.</text>
</paragraph><paragraph id="id7a7f15bab2f9407b848084f6d6a7d904"><enum>(2)</enum><header>Approval</header><text>The
Corporation may approve any application made pursuant to paragraph (1) provided
the private mortgage insurer meets the standards adopted under subsection
(a).</text>
</paragraph><paragraph id="iddc4f47d595944f2083b9b780fddb48d1"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="id0CE2D04697724CE4938FFBFC46355FC7"><enum>(A)</enum><text>publish in the
Federal Register a list of newly approved private mortgage insurers; and</text>
</subparagraph><subparagraph id="id30297A802DE149B29F64D6260BEE3E0F"><enum>(B)</enum><text>maintain an
updated list of approved private mortgage insurers on the website of the
Corporation.</text>
</subparagraph></paragraph></subsection><subsection id="id1dd504459d674ad8b9bd421f810ab8b7"><enum>(c)</enum><header>Review,
suspension, and revocation of approved status</header>
<paragraph id="id97da0e8f5b9145e487e712837611a90e"><enum>(1)</enum><header>In
general</header><text>The Corporation may review the status of any approved
private mortgage insurer if the Corporation is notified of or becomes aware of
any violation by the insurer of this Act or the rules promulgated pursuant to
this Act.</text>
</paragraph><paragraph id="ideb33f0f7386040ef8fd9d2e22328cb94"><enum>(2)</enum><header>Suspension or
Revocation</header>
<subparagraph id="id0496118785f945b1a9a452c190ee3c82"><enum>(A)</enum><header>Corporation
authority</header><text>If the Corporation determines, in a review pursuant to
paragraph (1), that an approved private mortgage insurer no longer meets the
standards for approval, the Corporation may suspend or revoke the approved
status of such insurer.</text>
</subparagraph><subparagraph id="id65e8489a064a4d4092b6bb3e30e86088"><enum>(B)</enum><header>Rule of
construction</header><text>The suspension or revocation of an approved private
mortgage insurer's approved status under this paragraph shall have no effect on
the status of any covered security.</text>
</subparagraph></paragraph><paragraph id="id5db618a3696b45758f15aca56087ab3a"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="id059C915DD91C44EBBE5336EA57165C05"><enum>(A)</enum><text>publish in the
Federal Register a list of any approved private mortgage insurers who lost
their approved status; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id821727F28E594A658A81895E3728A950"><enum>(B)</enum><text>maintain an
updated list of such insurers on the website of the Corporation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="ID3396570553d44708bc04d2da7dd8e09f"><enum>(d)</enum><header>Appeals</header>
<paragraph commented="no" id="idB9563037A435463785AFC46D7760F924"><enum>(1)</enum><header>In
general</header>
<subparagraph commented="no" id="idCCAEA3BC0C8A4DA8A55044DC5B136094"><enum>(A)</enum><header>Appeals of
denials of application</header><text>A private mortgage insurer who submits an
application under subsection (b)(1) to become an approved private mortgage
insurer may appeal a decision of the Corporation denying such
application.</text>
</subparagraph><subparagraph commented="no" id="idEF74E5B0390742EC8BF53A309512EC78"><enum>(B)</enum><header>Appeals of
denials of benefits or suspensions of participation</header><text>An approved
private mortgage insurer may appeal a decision of the Corporation suspending or
revoking the approved status of such insurer.</text>
</subparagraph></paragraph><paragraph commented="no" id="id906801CC985E4F28B70232D3F2E17760"><enum>(2)</enum><header>Filing of
appeal</header><text>Any insurer who files an appeal under paragraph (1) shall
file the appeal with the Corporation not later than 90 days after the date on
which the person receives notice of the decision of the Corporation being
appealed.</text>
</paragraph><paragraph commented="no" id="id4029291D6EF74442B635DC17E7AC5FC9"><enum>(3)</enum><header>Final
determination</header><text>The Corporation shall make a final determination
with respect to an appeal under paragraph (1) not later than 180 days after the
date on which the appeal is filed under paragraph (2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1F59C30BD8B04F05875A55C173EF0638"><enum>(e)</enum><header>Avoidance of
conflicts of interest</header><text>With respect to any eligible mortgage
collateralizing a covered security insured under this Act, an approved private
mortgage insurer may not provide insurance both—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id58612992C9A444D0A53E1CDF36734149"><enum>(1)</enum><text>in satisfaction
of the credit enhancement required under section 2(11)(C); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id48C089FBBF404F03A3F424B76808CC3A"><enum>(2)</enum><text>to cover the
first loss position of private market holders of such covered security.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id612FE0176DC44ECEB830125AB459FEC4"><enum>212.</enum><header>Approval of
servicers</header>
<subsection id="id0C097FA38E9C467CBC1FE73ECEBAC52A"><enum>(a)</enum><header>Standards for
approval of servicers</header>
<paragraph id="id9CC9488CBEC446B1B56156BFE66256C4"><enum>(1)</enum><header>In
general</header><text>The Corporation shall develop, adopt, and publish
standards for the approval by the Corporation of servicers to administer
eligible mortgages, including standards with respect to—</text>
<subparagraph id="idE69E161660A9405F87CC1D5368024CFD"><enum>(A)</enum><text>the collection
and forwarding of principal and interest payments;</text>
</subparagraph><subparagraph id="id4D0624369DA04B0393B42C74E5C206E7"><enum>(B)</enum><text>the maintenance
of escrow accounts;</text>
</subparagraph><subparagraph id="id47BF4FF344EF4090AE6A8B7A7374A3EF"><enum>(C)</enum><text>the collection
and payment of taxes and insurance premiums;</text>
</subparagraph><subparagraph id="idEAA2EA51C6A5485FB0F623FBEB9E3CB3"><enum>(D)</enum><text>the maintenance
of records on eligible mortgages;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idd5546c3619c34d36a4247fb2a2813275"><enum>(E)</enum><text>the establishment
of foreclosure loss mitigation programs that seek to enhance investor value and
prevent, to greatest extent possible, the need to trigger any claim on
insurance offered by the Corporation pursuant to this title;</text>
</subparagraph><subparagraph id="idc5019d6c23e2407986ea313b5029a953"><enum>(F)</enum><text>the advancement
of principal and interest payments to investors in the case of a delinquency by
a borrower until such time as the borrower has made all payments in arrears or
the property securing the eligible mortgage has been liquidated; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1A7F7E92647940499D76A98338A84CFF"><enum>(G)</enum><text>implementing the
terms of any loss mitigation and foreclosure prevention as required by a
uniform securitization agreement developed under section 223.</text>
</subparagraph></paragraph><paragraph id="id3A6E29AD51F0422C9EDB597711E050F6"><enum>(2)</enum><header>Additional
required standards</header><text>The standards required under paragraph (1)
shall also include—</text>
<subparagraph id="idA7DC2E7792EE4D8889F2DBB6AF724C54"><enum>(A)</enum><text>the financial
history and condition of the servicer;</text>
</subparagraph><subparagraph id="idED641F7BA7C744CFA3780D20B71B4C72"><enum>(B)</enum><text>the general
character and fitness of the management of the servicer, including compliance
history with Federal and State laws;</text>
</subparagraph><subparagraph id="idD41BFDAFC0634BADA09DBA63E0913943"><enum>(C)</enum><text>the risk
presented by such servicer to the Mortgage Insurance Fund;</text>
</subparagraph><subparagraph id="id1EC5B2F251624373B204797722DDAC4A"><enum>(D)</enum><text>a requirement
that the servicer submit audited financial statements to the Corporation;
and</text>
</subparagraph><subparagraph id="id22B3A079D7E145FBB2ECB0EA765005F9"><enum>(E)</enum><text>any other
standard the Corporation determines necessary or appropriate.</text>
</subparagraph></paragraph><paragraph id="idAB859319D6FC491DB15706DD8E85075B"><enum>(3)</enum><header>Coordination
with other regulators</header><text>In developing the standards required under
paragraph (1), the Corporation shall—</text>
<subparagraph id="id2E4F405899D44D99B72D62EDA163DBF5"><enum>(A)</enum><text>coordinate with
the Bureau of Consumer Financial Protection; and</text>
</subparagraph><subparagraph id="id5BBD76E603734A8BAAB474DCCCDF8D90"><enum>(B)</enum><text>to the extent the
Corporation determines practical and appropriate, shall coordinate with the
other Federal banking agencies.</text>
</subparagraph></paragraph></subsection><subsection id="id86A4E0E9B5B640258E8F6588411E6225"><enum>(b)</enum><header>Application and
approval</header>
<paragraph id="idD66678E1A64D46649E556FC0596E5DE0"><enum>(1)</enum><header>Application
process</header><text>The Corporation shall establish an application
process—</text>
<subparagraph id="idDD3DEDD869FA427B9589509C646B070D"><enum>(A)</enum><text>in such form and
manner and requiring such information as the Corporation may require, for the
approval of servicers under this section; and</text>
</subparagraph><subparagraph id="idBC3602F7688943F084F9475BF00A5A2A"><enum>(B)</enum><text>that does not
discriminate against or otherwise disadvantage small servicers.</text>
</subparagraph></paragraph><paragraph id="id35351A2D96AA4A7CB8FEE16D7992D4D9"><enum>(2)</enum><header>Approval</header><text>The
Corporation may approve any application made pursuant to paragraph (1) provided
the servicer meets the standards adopted under subsection (a).</text>
</paragraph><paragraph id="id4C5A16182EC1474BB24E83878A3C2895"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="id9D45F1796F204893AFB96743B6DD67FD"><enum>(A)</enum><text>publish in the
Federal Register a list of newly approved servicers; and</text>
</subparagraph><subparagraph id="idE0E2DB805CC346A082FD21A2FF853FFD"><enum>(B)</enum><text>maintain an
updated list of approved servicers on the website of the Corporation.</text>
</subparagraph></paragraph></subsection><subsection id="idCA4464D576934DC18CF07AD0DB07F277"><enum>(c)</enum><header>Review,
suspension, and revocation of approved status</header>
<paragraph id="id1E4BE113AB4D43378E02BA1C3CDFC8E8"><enum>(1)</enum><header>In
general</header><text>The Corporation may review the status of any approved
servicer if the Corporation is notified of or becomes aware of any violation by
the servicer of this Act or the rules promulgated pursuant to this Act,
including any failure by an approved servicer to comply with terms set forth in
any uniform securitization agreement developed under section 223.</text>
</paragraph><paragraph id="id1B8A7F80A97F4FB8938FDEFDD8497543"><enum>(2)</enum><header>Suspension or
Revocation</header>
<subparagraph id="idF50D6DCD493743A8882A6B731204941A"><enum>(A)</enum><header>Corporation
authority</header><text>If the Corporation determines, in a review pursuant to
paragraph (1), that an approved servicer no longer meets the standards for
approval, the Corporation may suspend or revoke the approved status of such
servicer.</text>
</subparagraph><subparagraph id="id577EE485E0EE41E18B1B4635668CCE35"><enum>(B)</enum><header>Rule of
construction</header><text>The suspension or revocation of an approved
servicer's approved status under this paragraph shall have no effect on the
status of any covered security.</text>
</subparagraph></paragraph><paragraph id="id41E2B1AFBE5C41D2A85E486A9AC2465B"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="id48C4FE8072A943BF83C976023EBD332D"><enum>(A)</enum><text>publish in the
Federal Register a list of any approved servicers who lost their approved
status; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id65854B50384B40FFA646EFF0175B360C"><enum>(B)</enum><text>maintain an
updated list of such servicers on the website of the Corporation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id3D419C2828FA4B85AE0267AC0E5A8D80"><enum>(d)</enum><header>Appeals</header>
<paragraph commented="no" id="id451B0E419B3A4D5885198CAD00BA1A23"><enum>(1)</enum><header>In
general</header>
<subparagraph commented="no" id="id727196CBE890421D864F7573A8E9F45A"><enum>(A)</enum><header>Appeals of
denials of application</header><text>A servicer who submits an application
under subsection (b)(1) to become an approved servicer may appeal a decision of
the Corporation denying such application.</text>
</subparagraph><subparagraph commented="no" id="id7B9E482C6CBF4DA6B8F918BE589269B3"><enum>(B)</enum><header>Appeals of
denials of benefits or suspensions of participation</header><text>An approved
servicer may appeal a decision of the Corporation suspending or revoking the
approved status of such servicer.</text>
</subparagraph></paragraph><paragraph commented="no" id="idB5FB9BBD3A2247AB80B1FA68BEDFC050"><enum>(2)</enum><header>Filing of
appeal</header><text>Any servicer who files an appeal under paragraph (1) shall
file the appeal with the Corporation not later than 90 days after the date on
which the person receives notice of the decision of the Corporation being
appealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEAD274B0E8D84268A71D5A3A079F6DF1"><enum>(3)</enum><header>Final
determination</header><text>The Corporation shall make a final determination
with respect to an appeal under paragraph (1) not later than 180 days after the
date on which the appeal is filed under paragraph (2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id208E85FC14ED48A2A3DF21BC66DBF586"><enum>(e)</enum><header>Petitions for
change of servicer by private market holders</header><text>The Corporation
shall develop a process by which private market holders of the first loss
position in a covered security may petition the Corporation for a change in
approved servicers if the private market holders can demonstrate that their
current approved servicer has failed to appropriately protect their investment,
including by failing to meet any standard identified under subsection
(a)(1).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id5A895DAC2DC44D62BFEE6BAA631FDDFE"><enum>213.</enum><header>Approval of
issuers</header>
<subsection id="id1D46B23367D945CCADD8A388152E1709"><enum>(a)</enum><header>Standards for
approval of issuers</header>
<paragraph id="idB69CADAED46A44E8B80F545A975B8F68"><enum>(1)</enum><header>In
general</header><text>The Corporation shall develop, adopt, and publish
standards for the approval by the Corporation of issuers to issue covered
securities, including standards with respect to an issuer's ability to—</text>
<subparagraph id="idAB605D3ADDC04056A9DC0B06003E9137"><enum>(A)</enum><text>aggregate
eligible mortgage loans into pools;</text>
</subparagraph><subparagraph id="id5E2E399D3A6847AD83F113D2F6627BFA"><enum>(B)</enum><text>securitize
eligible mortgage loans for sale to private investors as a covered
security;</text>
</subparagraph><subparagraph id="id030243FDAECB4A57ABEA23FB62E53DA8"><enum>(C)</enum><text>transfer
investment risk and credit to private market participants in accordance with
the risk-sharing mechanisms developed by the Corporation under section
202;</text>
</subparagraph><subparagraph id="id3472DCB6C7D84AD2B406DB6ABDAFA0DB"><enum>(D)</enum><text>ensure equitable
access to the secondary mortgage market for covered securities for all
institutions regardless of size or geographic location;</text>
</subparagraph><subparagraph id="idEF8F553F53254543816D60531A6C7712"><enum>(E)</enum><text>create mechanisms
for multi-lender pools; and</text>
</subparagraph><subparagraph id="id2306E36AC7684CCDAD949C72C3D4EABE"><enum>(F)</enum><text>ensure that
eligible mortgage loans that collateralize a covered security insured under
this title are originated in compliance with the requirements of this
Act.</text>
</subparagraph></paragraph><paragraph id="id92CAEA9776D544E598725A87CC941BCD"><enum>(2)</enum><header>Additional
required standards</header><text>The standards required under paragraph (1)
shall also include—</text>
<subparagraph id="idF37BB0C3CDAD47129DEA825616FD2C45"><enum>(A)</enum><text>the financial
history and condition of the issuer;</text>
</subparagraph><subparagraph id="id47A1101678FF4D63BFEA78612023F738"><enum>(B)</enum><text>the adequacy of
the capital structure of the issuer;</text>
</subparagraph><subparagraph id="id1718EF596AFD4DB88D3D4C709EB4F0D9"><enum>(C)</enum><text>the general
character and fitness of the management of the issuer, including compliance
history with Federal and State laws;</text>
</subparagraph><subparagraph id="id3A629967E0E2421093F07B4710E8590B"><enum>(D)</enum><text>the risk
presented by such issuer to the Mortgage Insurance Fund;</text>
</subparagraph><subparagraph id="ide2494b725225481d9014ab48658e7da3"><enum>(E)</enum><text>the adequacy of
insurance and fidelity coverage of the issuer;</text>
</subparagraph><subparagraph id="id3A3E681D1E674831B36963AF36DB923E"><enum>(F)</enum><text>a requirement
that the issuer submit audited financial statements to the Corporation;</text>
</subparagraph><subparagraph id="id511592965A6E43A7B74E6C92043FFF14"><enum>(G)</enum><text>the capacity of
the issuer to secure first loss credit enhancement; and</text>
</subparagraph><subparagraph id="idD8542E81CB9549F6A596259C87099E5E"><enum>(H)</enum><text>any other
standard the Corporation determines necessary or appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="id994DDC2E3E9844F1B17501416854A375"><enum>(b)</enum><header>Application and
approval</header>
<paragraph id="id8CF861E5565B41A7B72FBF09F81E7A1D"><enum>(1)</enum><header>Application
process</header>
<subparagraph id="id607C6B039AB64D60BE45A3C29EFEA5F4"><enum>(A)</enum><header>In
general</header><text>The Corporation shall establish an application process,
in such form and manner and requiring such information as the Corporation may
require, for the approval of issuers under this section.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDB9DA842FD3F418DBFC7347D6058ADE1"><enum>(B)</enum><header display-inline="yes-display-inline">Application process for insured depository
institutions</header><text display-inline="yes-display-inline">If an insured
depository institution seeks to become an approved issuer under this section,
such institution may only submit its application via a separately capitalized
affiliate or subsidiary.</text>
</subparagraph></paragraph><paragraph id="idFE789C4DE3F44CEAA74D276F4780B09E"><enum>(2)</enum><header>Approval</header><text>The
Corporation—</text>
<subparagraph id="id8D6E0F3993AC4EA1AC3EB9F7DA7821CA"><enum>(A)</enum><text>may
approve—</text>
<clause id="id0EF24C5E7D57453C8FBAD72DAB2F8900"><enum>(i)</enum><text>any
application made pursuant to paragraph (1) provided the issuer meets the
standards adopted under subsection (a); and</text>
</clause><clause id="id50C57B769DED48809A94B162BFFD51C9"><enum>(ii)</enum><text>any application
to become an approved issuer made by the Federal Home Loan Bank System;
and</text>
</clause></subparagraph><subparagraph id="id7D3BDC6E5478437B8F6E3A8986DE0676"><enum>(B)</enum><text>shall ensure that
at least one issuer approved to issue covered securities under this section is
dedicated to serving the securitization needs of credit unions and community
and mid-size banks without securitization capabilities.</text>
</subparagraph></paragraph><paragraph id="idF3A4DC52A07C4389BA29CD1889E9E5EF"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="id87E762BCB92242B78ED3DF29CCFDC906"><enum>(A)</enum><text>publish in the
Federal Register a list of newly approved issuers; and</text>
</subparagraph><subparagraph id="idE6D97F3D50A94F3B82E5F6D236AC187C"><enum>(B)</enum><text>maintain an
updated list of approved issuers on the website of the Corporation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id099D0DADEBFF4C70B7641359C2EE0F84"><enum>(c)</enum><header>Federal Home
Loan Bank System</header>
<paragraph commented="no" display-inline="no-display-inline" id="id4102A3B02B1A48278D7F4FE812C3C1CF"><enum>(1)</enum><header>In
general</header><text>If the Federal Home Loan Bank System is approved by the
Corporation to become an approved issuer under this section, the Corporation
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id02649D9C66B7461CBA0C55D67A320E1E"><enum>(A)</enum><text>develop a process
by which each individual Federal Home Loan Bank may elect not to engage or
otherwise contribute to any activity practiced by the Federal Home Loan Bank
System as an approved issuer;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id06941FA92D76433EACD0A0F30E049196"><enum>(B)</enum><text>ensure that,
notwithstanding section 11 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1431">12 U.S.C. 1431</external-xref>),
any covered securities issued by the Federal Home Loan Bank System as an
approved issuer are not issued as consolidated Federal Home Loan Bank
debentures and are explicitly designated or otherwise treated as not being the
joint and several obligations of any individual Federal Home Loan Bank that has
made an election under subparagraph (A); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id82DC78BC47B84129A3C42387D05736CB"><enum>(C)</enum><text>ensure that in
establishing the capital standards set forth under subsection (a)(2)(B) with
respect to the Federal Home Loan Bank System, that such standards shall—</text>
<clause commented="no" display-inline="no-display-inline" id="id44C4FC2285EA4C2F96ADD1A7D9E2DCF4"><enum>(i)</enum><text>not be applicable
to any individual Federal Home Loan Bank that has made an election under
subparagraph (A);</text>
</clause><clause id="idca9216d1a12340b782f535cdd5fab4fe"><enum>(ii)</enum><text>be
based on the volume of eligible mortgage loan originations made by the Federal
Home Loan Banks that have not made an election under subparagraph (A);
and</text>
</clause><clause id="id5DF2FDC2EB6A42DAB9BBA6E93FAB687B"><enum>(iii)</enum><text>not adversely
impact the traditional liquidity and advance business of the Federal Home Loan
Banks or the Federal Home Loan Bank System.</text>
</clause></subparagraph></paragraph><paragraph id="id331F128728E446A199543EDE371F230F"><enum>(2)</enum><header>Federal Home
Loan Bank Act</header>
<subparagraph id="id58E910A815CE452FA3B384CF36559317"><enum>(A)</enum><header>Amendment</header><text>Section
12 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1432">12 U.S.C. 1432</external-xref>) is amended by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id3E3EE31D4C2C46EA84E35D7C87FEFE20" style="OLC">
<subsection id="id305EA0CECB6E450EB9ED9FE02149B2BB"><enum>(c)</enum><text>Subject to such
regulations as may be prescribed by the Corporation, one or more Federal Home
Loan Banks may establish a subsidiary. Any subsidiary established under this
subsection shall be subject to supervision by the Office of Federal Home Loan
Bank Supervision of the Corporation and shall be restricted to engaging in
activities related to being an approved issuer, as that term is defined under
section 2(2) of the <short-title>Housing Finance Reform
and Taxpayer Protection Act of
2013</short-title>.</text>
</subsection><after-quoted-block>.
</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id13467D4BB662406F8A6E3134AD6FAA04"><enum>(B)</enum><header>Effective
date</header><text>The amendment made by subparagraph (A) shall take effect on
the transfer date.</text>
</subparagraph></paragraph></subsection><subsection id="id035A7960968E49CDBB79D610DABD1B0A"><enum>(d)</enum><header>Review,
suspension, and revocation of approved status</header>
<paragraph id="id718939CE678745439D6769A4F2AA6F67"><enum>(1)</enum><header>In
general</header><text>The Corporation may review the status of any approved
issuer if the Corporation is notified of or becomes aware of any violation by
the issuer of this Act or the rules promulgated pursuant to this Act.</text>
</paragraph><paragraph id="id05B09414BFD043F6AED409CC6CDADE85"><enum>(2)</enum><header>Suspension or
Revocation</header>
<subparagraph id="id7D8455F1031D4CE5B12A8A224B3D08DB"><enum>(A)</enum><header>Corporation
authority</header><text>If the Corporation determines, in a review pursuant to
paragraph (1), that an approved issuer no longer meets the standards for
approval, the Corporation may suspend or revoke the approved status of such
issuer.</text>
</subparagraph><subparagraph id="id6161A862E60B4CAF8549EA8099095A1F"><enum>(B)</enum><header>Rule of
construction</header><text>The suspension or revocation of an approved issuer's
approved status under this paragraph shall have no effect on the status of any
covered security.</text>
</subparagraph></paragraph><paragraph id="idAC9A7D5C45E844C0A2586AB0DE7B56C7"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="id3BCD187942804DDD8991A6DB0061F562"><enum>(A)</enum><text>publish in the
Federal Register a list of any approved issuers who lost their approved status;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCCFBEB1D47BC4BFF924FA6AEC930AAD7"><enum>(B)</enum><text>maintain an
updated list of such issuers on the website of the Corporation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="idDF659B2BA8784A958BEB53E598110113"><enum>(e)</enum><header>Appeals</header>
<paragraph commented="no" id="idCD1D88E32C41484CAD3C4DAC0ECF8CD0"><enum>(1)</enum><header>In
general</header>
<subparagraph commented="no" id="id8A93166ECE2B41BD835E1450F66D03E6"><enum>(A)</enum><header>Appeals of
denials of application</header><text>An issuer who submits an application under
subsection (b)(1) to become an approved issuer may appeal a decision of the
Corporation denying such application.</text>
</subparagraph><subparagraph commented="no" id="id1EA1CE4D308F47FE9D357A3051612166"><enum>(B)</enum><header>Appeals of
denials of benefits or suspensions of participation</header><text>An approved
issuer may appeal a decision of the Corporation suspending or revoking the
approved status of such issuer.</text>
</subparagraph></paragraph><paragraph commented="no" id="idBC8903DEDC214EFDB7A779FE3433BBD1"><enum>(2)</enum><header>Filing of
appeal</header><text>Any issuer who files an appeal under paragraph (1) shall
file the appeal with the Corporation not later than 90 days after the date on
which the person receives notice of the decision of the Corporation being
appealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id24485854B73A414B84FB01B3D5B68253"><enum>(3)</enum><header>Final
determination</header><text>The Corporation shall make a final determination
with respect to an appeal under paragraph (1) not later than 180 days after the
date on which the appeal is filed under paragraph (2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id541509EBD8B8487D8BC4BD61A525C58E"><enum>(f)</enum><header>Limitation on
market share</header>
<paragraph commented="no" display-inline="no-display-inline" id="id890D84B119674D538EADA6473CE2DC8F"><enum>(1)</enum><header>In
general</header><text>The Corporation may not enter into any contract,
covenant, or other agreement with an approved issuer, if such contract,
covenant, or agreement would provide the issuer a share of the covered security
issuer market in excess of 15 percent of the total market, as such market is
measured by the total outstanding principal balance at origination of eligible
mortgages collateralizing covered securities issued in the previous 12-month
period.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id99326D268A5F4749BB7486BAB7BE71EC"><enum>(2)</enum><header>Exception</header><text>The
limitation set forth under paragraph (1) shall not apply to—</text>
<subparagraph id="id4f5c1701250d4129b37cb6410008d633"><enum>(A)</enum><text>an approved
issuer described under subsection (b)(2)(A)(ii);</text>
</subparagraph><subparagraph id="idcef3b69f007d41b6a12e5573a3d1316b"><enum>(B)</enum><text>the FMIC Mutual
Securitization Company;</text>
</subparagraph><subparagraph id="idf33e837b0189491a9bfb04ce6fcf3920"><enum>(C)</enum><text>any approved
issuer which securitizes only eligible mortgage loans originated by the issuer
or an affiliate of the issuer; or</text>
</subparagraph><subparagraph id="id631d0a65f3544dd9a5c5c7a38ce04b78"><enum>(D)</enum><text>any approved
issuer to which the Corporation grants a waiver pursuant to paragraph
(3).</text>
</subparagraph></paragraph><paragraph id="id34C6F179EAE241DB8BE517A4C6AE914B"><enum>(3)</enum><header>Waiver</header><text>The
Corporation may, during the 3-year period beginning on the FMIC certification
date, grant a waiver from the limitation set forth under paragraph (1) to an
approved issuer if the Corporation determines that the number of approved
issuers is insufficient, such that imposition of the limitation would adversely
affect the availability of mortgage credit.</text>
</paragraph></subsection><subsection id="id19BF6E4AF9CE4003BB2CE01455D6846F"><enum>(g)</enum><header>Limited
authority To hold eligible mortgage loans</header><text>An approved issuer may,
for a period not to exceed 6-months, hold—</text>
<paragraph id="idF961356DE8944E5A92498E93DC0771C5"><enum>(1)</enum><text>eligible mortgage
loans on the balance sheet of such issuer; and</text>
</paragraph><paragraph id="id4735EB2B12644F7D861CC1AAFD02C86C"><enum>(2)</enum><text>the first loss
position in a covered security for purposes of obtaining insurance under this
title.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id2F9FD88B6C9742C5A843C4EEACBFEC5D"><enum>214.</enum><header>Approval of
bond guarantors</header>
<subsection id="id0D4CAB3C7F814D7EA31718F0F82AE92D"><enum>(a)</enum><header>Standards for
approval of bond guarantors</header>
<paragraph id="idC97F6BEC1B56402F8FE2CF52BE89B409"><enum>(1)</enum><header>In
general</header><text>The Corporation shall develop, adopt, and publish
standards for the approval by the Corporation of bond guarantors to guarantee
the timely payment of principal and interest on securities collateralized by
eligible mortgages and insured by the Corporation.</text>
</paragraph><paragraph id="id426A74FF69994019B2FCC065B998D364"><enum>(2)</enum><header>Required
standards</header><text>The standards required under paragraph (1) shall
include—</text>
<subparagraph id="id3EFDF77029674034AC9F4BDA280A3CA6"><enum>(A)</enum><text>the financial
history and condition of the guarantor;</text>
</subparagraph><subparagraph id="id53D68CC24BE04586857FCA5A55B10FD3"><enum>(B)</enum><text>that the
guarantor maintain a minimum capital level equal to not less than 10 percent of
the unpaid principal balance of outstanding mortgage-backed securities for
which the guarantor is providing insurance, net of any transactions, including
derivative transactions, repurchase agreements, reverse repurchase agreements,
securities lending transactions, or securities borrowing transactions, that in
the determination of the Corporation are used by the guarantor to hedge or
mitigate against credit risk, provided that any such hedging transaction does
not diminish the total amount of loss absorption capital in the secondary
mortgage market that stands in front of the insurance provided by the
Corporation under this title;</text>
</subparagraph><subparagraph id="id2BAADFE0DFD342B6A033A798A785C756"><enum>(C)</enum><text>the general
character and fitness of the management of the guarantor, including compliance
history with Federal and State laws;</text>
</subparagraph><subparagraph id="id57F7C0621EF34C10A98130E1F0DE61F5"><enum>(D)</enum><text>the risk
presented by such guarantor to the Mortgage Insurance Fund;</text>
</subparagraph><subparagraph id="id74E5A9D819764C709DA31B9782250C0A"><enum>(E)</enum><text>the adequacy of
insurance and fidelity coverage of the guarantor;</text>
</subparagraph><subparagraph id="idE1200FB6A3C64FAD92BC2219BA64F313"><enum>(F)</enum><text>a requirement
that the guarantor submit audited financial statements to the Director;</text>
</subparagraph><subparagraph id="id747C54EDAED64738AE261996CD99525E"><enum>(G)</enum><text>a requirement
that the guarantor meet a minimum tangible common equity level, or other
minimum capital threshold as the Corporation determines necessary; and</text>
</subparagraph><subparagraph id="idB9C0003D251A4F818A923AEAD741A02C"><enum>(H)</enum><text>any other
standard the Corporation determines necessary or appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="id07C847A6F2864CBD9B82945A1D7DB320"><enum>(b)</enum><header>Rule of
construction</header><text>Any covered security issued by an approved issuer
and insured by an approved bond guarantor shall be deemed to have satisfied the
credit-risk sharing requirements under section 202(a)(1) with respect to the
eligibility of that security to obtain insurance under this title.</text>
</subsection><subsection id="idCFF060EBE9E049D2BC86069951467374"><enum>(c)</enum><header>Application and
approval</header>
<paragraph id="idC041C740703047FDAA24D7440E3C982C"><enum>(1)</enum><header>Application
process</header>
<subparagraph id="id4EA770E3BB8F4992B0D3AC362924F5F2"><enum>(A)</enum><header>In
general</header><text>The Corporation shall establish an application process,
in such form and manner and requiring such information as the Corporation may
require, for the approval of bond guarantors under this section.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id97FBA5CB4FFB42C5BD9A30179F1B0767"><enum>(B)</enum><header display-inline="yes-display-inline">Application process by insured depository
institutions</header><text display-inline="yes-display-inline">If an insured
depository institution seeks to become an approved bond guarantor under this
section, such institution may only submit its application via a separately
capitalized affiliate or subsidiary.</text>
</subparagraph></paragraph><paragraph id="id1A65871CACB1412BA3B21CBF3B4ABAF8"><enum>(2)</enum><header>Approval</header><text>The
Corporation may approve any application made pursuant to paragraph (1) provided
the bond guarantor meets the standards adopted under subsection (a).</text>
</paragraph><paragraph id="id29B8965398C240459F7C2B43979F4AED"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="idAAD1E002DCC34258A9EB27F8012DD998"><enum>(A)</enum><text>publish in the
Federal Register a list of newly approved bond guarantors; and</text>
</subparagraph><subparagraph id="id1B0360D59D8C4E18938BFF68A3D101BC"><enum>(B)</enum><text>maintain an
updated list of approved bond guarantors on the website of the
Corporation.</text>
</subparagraph></paragraph></subsection><subsection id="idD3B88BEBA174426EB78F9A18101A6901"><enum>(d)</enum><header>Review,
suspension, and revocation of approved status</header>
<paragraph id="id6AB3BADA2C2F4314BA7B9F5FF7651C21"><enum>(1)</enum><header>In
general</header><text>The Corporation may review the status of any approved
bond guarantor if the Corporation is notified of or becomes aware of any
violation by the insurer of this Act or the rules promulgated pursuant to this
Act.</text>
</paragraph><paragraph id="idF790D2A84AE74FD1B34E442F5C84CC92"><enum>(2)</enum><header>Suspension or
Revocation</header>
<subparagraph id="id54A17DDC497040948DE85EBEF9032515"><enum>(A)</enum><header>Corporation
authority</header><text>If the Corporation determines, in a review pursuant to
paragraph (1), that an approved bond guarantor no longer meets the standards
for approval, the Corporation shall revoke the approved status of such
guarantor.</text>
</subparagraph><subparagraph id="idFCD70E98CF5B4DCC81669826A9EE7465"><enum>(B)</enum><header>rule of
construction</header><text>The revocation of an approved bond guarantor's
approved status under this paragraph shall have no effect on the status of any
covered security.</text>
</subparagraph></paragraph><paragraph id="idCFC22B074B7947AF94337981E6C7599E"><enum>(3)</enum><header>Publication</header><text>The
Corporation shall—</text>
<subparagraph id="idE075CBF4A71F4109986FB4574A6E3AA4"><enum>(A)</enum><text>publish in the
Federal Register a list of any approved bond guarantors who lost their approved
status; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1CCB8F3225ED4C7CBEF5C28BDC3F7DD1"><enum>(B)</enum><text>maintain an
updated list of such guarantors on the website of the Corporation.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id9414A4382CE5409B92461B14E459E67E"><enum>(e)</enum><header>Appeals</header>
<paragraph commented="no" id="id4EF81081BC97430BA7D472DDF31225E3"><enum>(1)</enum><header>In
general</header>
<subparagraph commented="no" id="idBE545E6764AF4274966C9A139AF9EA7A"><enum>(A)</enum><header>Appeals of
denials of application</header><text>A bond guarantor who submits an
application under subsection (c)(1) to become an approved bond guarantor may
appeal a decision of the Corporation denying such application.</text>
</subparagraph><subparagraph commented="no" id="idEEF72EB4A8BE4616972654FB5A83D5B4"><enum>(B)</enum><header>Appeals of
denials of benefits or suspensions of participation</header><text>An approved
bond guarantor may appeal a decision of the Corporation suspending or revoking
the approved status of such guarantor.</text>
</subparagraph></paragraph><paragraph commented="no" id="idF4C4E0DB57E54F628E51DCC7AB6EFCCE"><enum>(2)</enum><header>Filing of
appeal</header><text>Any bond guarantor who files an appeal under paragraph (1)
shall file the appeal with the Corporation not later than 90 days after the
date on which the person receives notice of the decision of the Corporation
being appealed.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA7B8D34934A443F18AE9CBE1ECB1535A"><enum>(3)</enum><header>Final
determination</header><text>The Corporation shall make a final determination
with respect to an appeal under paragraph (1) not later than 180 days after the
date on which the appeal is filed under paragraph (2).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5BCE4DD97B924ABEA183DAE9277CB5F7"><enum>(f)</enum><header>Limitations on
approved bond guarantors</header><text>With respect to any eligible mortgage
collateralizing a covered security insured under this Act, an approved bond
guarantor may not provide insurance—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9D0417EDD7CC47C4A13D2EFC2B722597"><enum>(1)</enum><text>in satisfaction
of the credit enhancement required under section 2(11)(C) or as an approved
private mortgage insurer pursuant to section 211; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5AD0F6A76335478195A81563476E24D5"><enum>(2)</enum><text>as an approved
bond guarantor under this section.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDA4E47916C9D4706BC13AFE61660B132"><enum>(g)</enum><header>Permission To
carry out other activities</header><text>Nothing in this Act prohibits an
approved bond guarantor from being or controlling an approved issuer, provided
that each issuer and bond guarantor, independent of each other, meet the
approval standards established by the Corporation under this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id02D02E7A43794B8687EA513AC76A605C"><enum>215.</enum><header>Authority to
establish FMIC Mutual Securitization Company</header>
<subsection commented="no" display-inline="no-display-inline" id="idE74F66F67B3A4F83B111F0209848B6CE"><enum>(a)</enum><header>In
general</header><text>The Corporation shall establish a mutual corporation to
be known as the <quote>FMIC Mutual Securitization Company</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id85276C03AE404E54801C9F23E0391E17"><enum>(b)</enum><header>Purpose</header><text>The
purpose of the FMIC Mutual Securitization Company is to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idC4ADC6EB9C3A4F949BB601F75298CD71"><enum>(1)</enum><text>develop,
securitize, sell, and otherwise meet the issuing needs of credit unions,
community and mid-size banks, and non-depository mortgage originators with
respect to covered securities; and</text>
</paragraph><paragraph id="idb085699add864d96aa02dd4862b0c4f0"><enum>(2)</enum><text>purchase from its
member participants for cash, on a single loan basis, eligible mortgage loans
to securitize in a covered security.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id934AF41B180E405C8CDEADABC4CD8821"><enum>(c)</enum><header>Sale of
necessary technology</header><text>Upon the FMIC certification date, the
enterprises shall sell to the FMIC Mutual Securitization Company any function,
activity, infrastructure, property, including intellectual property, platform,
or any other object or service of an enterprise that the Corporation determines
necessary for the FMIC Mutual Securitization Company to carry out its
activities and operations.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id19EA85A461FD4A19A9278FCA41641003"><enum>(d)</enum><header>Designation as
an approved issuer</header><text>The FMIC Mutual Securitization Company shall
be an approved issuer for purposes of section 213.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idC06D78C8A8094E40A7A98D3AAE7DE3BC"><enum>(e)</enum><header>Eligibility</header><text>Eligibility
to participate as a member in the FMIC Mutual Securitization Company shall be
limited to—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id80121A088B6A4329AAA7C6BA22D3C67D"><enum>(1)</enum><text>insured
depository institutions having less than $15,000,000,000 in total consolidated
assets at the time of the institution's initial participation in the Company;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAAEE0ADEBC9D49D3A4F99BFA6B5C985F"><enum>(2)</enum><text>any
non-depository mortgage originator having a minimum net worth of
$2,500,000.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id81EDA3D47C064BFD92E3991B10543E73"><enum>(f)</enum><header>Governance</header>
<paragraph commented="no" display-inline="no-display-inline" id="id7B98765A073E4F1389A12620A19AE874"><enum>(1)</enum><header>Recognition of
important role of smaller institutions</header><text>The Corporation shall take
all necessary steps to ensure that the governance provisions of the FMIC Mutual
Securitization Company reflect the important role in the mortgage market played
by the small and mid-sized member participants of the FMIC Mutual
Securitization Company.</text>
</paragraph><paragraph id="id2f580e0009554d51996d56a5f5ef7fd8"><enum>(2)</enum><header>Establishment
of position of Director</header><text>There is established the position of the
Director of the FMIC Mutual Securitization Company who shall be the head of the
Company.</text>
</paragraph><paragraph id="id132106e3704d4efc8783ea180ff12529"><enum>(3)</enum><header>Board of
Directors</header>
<subparagraph id="idC100140653A3446FAF3A6C166C6A78E9"><enum>(A)</enum><header>In
general</header><text>The management of the FMIC Mutual Securitization Company
shall be vested in a Board of Directors (hereafter referred to as the
<quote>Mutual Board</quote>), which shall include representatives of member
participants of the Company, including representatives of—</text>
<clause id="idEBB7E99A22B149D1A63DCA02BB2AA887"><enum>(i)</enum><text>mortgage
bankers;</text>
</clause><clause id="idA1B86AD6A72D45F7874D08F50B4F43C3"><enum>(ii)</enum><text>community banks;
and</text>
</clause><clause id="idCCD2077D86134AB082D83D089D6D174F"><enum>(iii)</enum><text>credit
unions.</text>
</clause></subparagraph><subparagraph id="id7E3DE36C7F61420DAEF7119B76BD6B25"><enum>(B)</enum><header>Initial
appointment</header><text>The Corporation shall make initial appointments of
the members of the Mutual Board. Each such initial appointment shall be for a
term 1 year.</text>
</subparagraph><subparagraph id="id5089C8B0147B4F05BEB9FD9846D8A5E0"><enum>(C)</enum><header>Appointments</header><text>Following
the initial 1-year appointment of the members of the Mutual Board, member
participants in the FMIC Mutual Securitization Company shall elect the members
of the Mutual Board from within the membership of the Company.</text>
</subparagraph><subparagraph id="id18D118B945074110A095F56C2A7DD6DA"><enum>(D)</enum><header>Administration</header><text>The
Mutual Board shall administer the affairs of the FMIC Mutual Securitization
Company fairly and impartially and without discrimination.</text>
</subparagraph></paragraph><paragraph id="idb853b71088fc47d58193a6587657580b"><enum>(4)</enum><header>No preferences
for size</header><text>Member participants of the FMIC Mutual Securitization
Company shall have equal voting rights on any matters before the Company,
regardless of the size of the individual member participant.</text>
</paragraph></subsection><subsection id="id9618c345f8944b20a3a14801fa885262"><enum>(g)</enum><header>Approval of
member participants</header>
<paragraph id="id897B8042C5794A0F823DCBD80FB75F22"><enum>(1)</enum><header>In
general</header><text>The Mutual Board shall develop standards and procedures
to approve the application of member participants in the FMIC Mutual
Securitization Company.</text>
</paragraph><paragraph id="id0DB6E27FB4924802A27FE188607837DC"><enum>(2)</enum><header>Content of
standards</header><text>The standards required under paragraph (1) shall
include standards relating to the safety and soundness of prospective member
participants, including standards regarding the underwriting practices of such
prospective members.</text>
</paragraph><paragraph id="idD6A1E214F6D141478B34B437094CEA4B"><enum>(3)</enum><header>Coordination
with other regulators</header>
<subparagraph id="idEC4616772F734003AAAD17697D71E21C"><enum>(A)</enum><header>Consultation</header><text>In
approving any prospective member to become a member participant in the FMIC
Mutual Securitization Company, the Mutual Board may consult and share
information with the primary prudential regulator of the prospective
member.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE9ACDDCADB9F410884AFA299A755A234"><enum>(B)</enum><header>Privilege
preserved</header><text>Information shared pursuant to subparagraph (A) shall
not be construed as waiving, destroying, or otherwise affecting any privilege
or confidential status that a prospective member may claim with respect to such
information under Federal or State law as to any person or entity other than
the Mutual Board or its primary prudential regulator.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD00FB8F4DD5448C0B57C85EAEBF529EE"><enum>(C)</enum><header>Rule of
construction</header><text>No provision of this subsection may be construed as
implying or establishing that—</text>
<clause id="id32A415030A9E4C02B86ED7CEAC524DD8"><enum>(i)</enum><text>any
prospective member waives any privilege applicable to information that is
shared or transferred under any circumstance to which this subsection does not
apply; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5891E1FB87D5410AAA422DAC3B76EAA3"><enum>(ii)</enum><text>any prospective
would waive any privilege applicable to any information by submitting the
information directly to its primary prudential regulator, but for this
subsection.</text>
</clause></subparagraph></paragraph></subsection><subsection id="id198ba30888b547e4ab14961dd065876d"><enum>(h)</enum><header>Funding
authority</header>
<paragraph id="id7FF3841C32E849F38BE837AB5B5BB2E2"><enum>(1)</enum><header>Authority to
establish membership fees</header><text>The Mutual Board shall have the
authority to charge and collect fees, and may in its discretion increase or
decrease such fee, on its member participants for membership in the FMIC Mutual
Securitization Company, including to cover the costs of—</text>
<subparagraph id="idA367564A6EE94A719C52DE67A9D60C5F"><enum>(A)</enum><text>the initial
capitalization of the Company;</text>
</subparagraph><subparagraph id="id4C7629987BEF4447AC9BC81DDF315157"><enum>(B)</enum><text>the purchase of
any function, activity, infrastructure, property, including intellectual
property, platform, or any other object or service from an enterprise pursuant
to subsection (c); and</text>
</subparagraph><subparagraph id="id8E72C80B442942BD8B50E21F696DA044"><enum>(C)</enum><text>the continued
operation of the Company.</text>
</subparagraph></paragraph><paragraph id="idB6459ADB42F54C24B3235571B0B49B45"><enum>(2)</enum><header>Limitation</header><text>The
fees authorized under paragraph (1)—</text>
<subparagraph id="idCF9F64A0422E4946AEF20BE1120B7077"><enum>(A)</enum><text>shall be
equitably assessed; and</text>
</subparagraph><subparagraph id="id8F23220562934B4D8FD19FFD5EAB8F8A"><enum>(B)</enum><text>may be based on
the volume of eligible mortgages that the member participant sells to the FMIC
Mutual Securitization Company.</text>
</subparagraph></paragraph></subsection><subsection id="id01edd593b44746e2b4e8dcb9da7e6717"><enum>(i)</enum><header>Coordination of
servicer approval</header><text>The Mutual Board may coordinate with the
Corporation to facilitate the application process for its member participants
to become approved servicers of the Corporation pursuant to section 212.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idDF0D1C03B6024DA18DFEF90992ED68E0"><enum>216.</enum><header>Additional
authority relating to oversight of market participants</header><text display-inline="no-display-inline">In carrying out its authorities under this
subtitle, the Corporation may, in its discretion, develop, publish, and adopt
such other additional standards or requirements as the Corporation determines
necessary to ensure—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id16C8628D06BC47FDBF31994E3A2D826C"><enum>(1)</enum><text display-inline="yes-display-inline">competition among approved private mortgage
insurers, servicers, issuers, and bond guarantors and other market participants
in the secondary mortgage market;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5C57D50A769C4AC6B13782AB63E5204A"><enum>(2)</enum><text>competitive
pricing among approved private mortgage insurers, servicers, issuers, and bond
guarantors and other market participants in the secondary mortgage market;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id74CD7E98E8074343BB120F5FFB870C94"><enum>(3)</enum><text>liquidity,
transparency, and access to mortgage credit in the secondary mortgage
market.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id0ED580AE1FEE4EE691F02F04F6170F9D"><enum>217.</enum><header>Civil money
penalties</header>
<subsection commented="no" display-inline="no-display-inline" id="idA58F128629264D4BA141FC0C119078CC"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">In addition to any suspension or revocation
of the approved status of an approved private mortgage insurer, servicer,
issuer, or bond guarantor under this subtitle, the Corporation may, in its
discretion, impose a civil money penalty on any such approved private mortgage
insurer, servicer, issuer, or bond guarantor that has failed to comply with or
otherwise violates—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8EB2962A369248B2941EE10270CD8F6D"><enum>(1)</enum><text display-inline="yes-display-inline">any standard adopted by the Corporation
pursuant to this subtitle; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id63E7D5559CEC4372AF0FE5E8F12A2BA8"><enum>(2)</enum><text display-inline="yes-display-inline">any other requirement or provision of this
Act, or any order, condition, rule, or regulation issued pursuant to this Act,
applicable to such private mortgage insurer, servicer, issuer, or bond
guarantor, as the case may be.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA6C2A9340AB948F29C3F15804566E0EB"><enum>(b)</enum><header>Procedures</header>
<paragraph commented="no" display-inline="no-display-inline" id="idEB963BB5313845C48A71887CAD160494"><enum>(1)</enum><header>Establishment</header><text>The
Corporation shall establish standards and procedures governing the imposition
of civil money penalties under this section. Such standards and
procedures—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id74875AC0FDB4483695E34CDBEA19CE18"><enum>(A)</enum><text>shall provide for
the Corporation to notify the approved private mortgage insurer, servicer,
issuer, or bond guarantor, as the case may be, in writing of the determination
of the Corporation to impose the penalty, which shall be made on the
record;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id917CB31868434AD089BBF3A740DC4DB3"><enum>(B)</enum><text>shall provide for
the imposition of a penalty only after the approved private mortgage insurer,
servicer, issuer, or bond guarantor, as the case may be, has been given an
opportunity for a hearing on the record; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF3595524EF404C21AAEFBDFD2CCC8464"><enum>(C)</enum><text>may provide for
review by the Corporation of any determination or order, or interlocutory
ruling, arising from a hearing.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC1A0296C801451598FE9ECFB7350636"><enum>(2)</enum><header>Factors
determining amount of penalty</header><text>In determining the amount of a
penalty under this section, the Corporation shall give consideration to factors
including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4A73E955298F477A9E4F5117630F7224"><enum>(A)</enum><text>the gravity of
the offense;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6FD5E27BA32142A1927E1D9F2A400FD0"><enum>(B)</enum><text>any history of
prior offenses;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF056FDDD1944A62AB24E8EEED7E52FA"><enum>(C)</enum><text>ability to pay
the penalty;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7F927034E26D4ACF978955F7EA8156FA"><enum>(D)</enum><text>injury to the
public;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id18A6D16A99034008BED27B1D45723D86"><enum>(E)</enum><text>benefits
received;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDF8530192FCA4C199F588821B3B7F7C5"><enum>(F)</enum><text>deterrence of
future violations; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD36AB1899CF1451CB786C28547CCB1D3"><enum>(G)</enum><text>such other
factors as the Corporation may determine, by regulation, to be
appropriate.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2073FFC569D846A9A3A311604EFAF3BE"><enum>(c)</enum><header>Action To
collect penalty</header><text>If the approved private mortgage insurer,
servicer, issuer, or bond guarantor, as the case may be, fails to comply with
an order by the Corporation imposing a civil money penalty under this section,
the Corporation may bring an action in the United States District Court for the
District of Columbia to obtain a monetary judgment against the approved private
mortgage insurer, servicer, issuer, or bond guarantor, as the case may be, and
such other relief as may be available. The monetary judgment may, in the
court's discretion, include the attorneys' fees and other expenses incurred by
the United States in connection with the action. In an action under this
subsection, the validity and appropriateness of the order imposing the penalty
shall not be subject to review.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idB05D03C793FC48EAA30DE10316E87ED7"><enum>(d)</enum><header>Settlements</header><text>The
Corporation may compromise, modify, or remit any civil money penalty which may
be, or has been, imposed under this section.</text>
</subsection><subsection id="ID9C0EFE6E2D2B46549C05C336692BB4DF"><enum>(e)</enum><header>Deposit of
Penalties</header><text>The Corporation shall use any civil money penalties
collected under this section to help fund the Mortgage Insurance Fund
established under section 203.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idA5108DAB78D844ED919124DB46BF52AE"><enum>218.</enum><header>Protection of
privilege and other matters relating to disclosures by market
participants</header>
<subsection commented="no" display-inline="no-display-inline" id="idB1198AC7E2F64B5F87D9C12A82F759F4"><enum>(a)</enum><header>Information
sharing and maintenance of privilege</header><text display-inline="yes-display-inline">The Federal Deposit Insurance Act (12
U.S.C. 1811 et seq.) is amended—</text>
<paragraph id="ID03ddf018769b4dd7a3d57f867dd02a71"><enum>(1)</enum><text>in section
11(t)(2)(A) (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(t)(2)(A)</external-xref>), by inserting after clause (v) the
following:</text>
<quoted-block display-inline="no-display-inline" id="idAA802B221D5E4F7CBEDF8A4380C7797F" style="OLC">
<clause id="id42DC64540691472299C40754A4F9B330"><enum>(vii)</enum><text>The Federal
Mortgage Insurance Corporation.</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDa4d9e35c4b044c4da83c23c870aa6929"><enum>(2)</enum><text>in section 18(x)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1828">12 U.S.C. 1828(x)</external-xref>)—</text>
<subparagraph id="id8FE3DA708043462E9C12B7AA324F3306"><enum>(A)</enum><text>by inserting
<quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>any
Federal banking agency</quote> each place that term appears; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id05DCB69CADA64A4BA5A81FBC6E460DEB"><enum>(B)</enum><text>by striking
<quote>such agency</quote> each place that term appears and inserting
<quote>Corporation, agency</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id00F0396B333446B39228E3A0905186EC"><enum>(b)</enum><header>Permissible
consultation with Federal banking agencies</header>
<paragraph commented="no" display-inline="no-display-inline" id="id57F2BA9F5D284F9C92A2F10462274A03"><enum>(1)</enum><header>In
general</header><text>Pursuant to its authority under section 103(c), to
facilitate the consultive process, the Corporation may share information with
the Federal banking agencies, or any individual Federal banking agency, or any
State bank supervisor, or foreign banking authority, on a one-time, regular, or
periodic basis as determined by the Corporation regarding the capital, asset
and liabilities, financial condition, risk management practices or any other
practice of any approved private mortgage insurer, servicer, issuer, or bond
guarantor.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEDD4FD668FD540CAA289AB82EE528FF1"><enum>(2)</enum><header>Privilege
preserved</header><text>Information shared by the Corporation pursuant to
paragraph (1) shall not be construed as waiving, destroying, or otherwise
affecting any privilege or confidential status that any approved private
mortgage insurer, servicer, issuer, or bond guarantor or any other person may
claim with respect to such information under Federal or State law as to any
person or entity other than such agencies, agency, supervisor, or
authority.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBFD05EE5885844EDA8BE2D6F4BA48792"><enum>(3)</enum><header>Rule of
construction</header><text>No provision of this subsection may be construed as
implying or establishing that—</text>
<subparagraph id="idbbddb62155194230aef1df4d03fc0da7"><enum>(A)</enum><text>any person waives
any privilege applicable to information that is shared or transferred under any
circumstance to which this subsection does not apply; or</text>
</subparagraph><subparagraph id="idf35aec673269468784f2f051a1d46bf5"><enum>(B)</enum><text>any person would
waive any privilege applicable to any information by submitting the information
directly to the Federal banking agencies, or any individual Federal banking
agency, or any State bank supervisor, or foreign banking authority, but for
this subsection.</text>
</subparagraph></paragraph></subsection></section></subtitle><subtitle id="idBE4CC68597B1408D866BC0DC7029FF70"><enum>C</enum><header>Transparency in
market operations</header>
<section id="id691438B233FC4FBE868404AC085BDAF6"><enum>221.</enum><header>Review of loan
documents; disclosures</header>
<subsection id="id7523153A42434E25A6044E2412AAE363"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Corporation
shall, by rule—</text>
<paragraph id="id31FD11AFA524470CB43108DA469CA81A"><enum>(1)</enum><text display-inline="yes-display-inline">require that approved issuers—</text>
<subparagraph id="idCBDC48B5AEA3448B84DFFCC1FDFD1797"><enum>(A)</enum><text display-inline="yes-display-inline">grant access to private market investors
seeking to take the first loss position in a covered security to all—</text>
<clause id="idD8C8755663124BE48AA40E0F56EF60BE"><enum>(i)</enum><text display-inline="yes-display-inline">documents relating to eligible mortgage
loans collateralizing that covered security; and</text>
</clause><clause id="id708B93344E28435F89653C9001C5720F"><enum>(ii)</enum><text display-inline="yes-display-inline">servicing reports of the approved servicer
relating to such mortgages; and</text>
</clause></subparagraph><subparagraph id="id6690661F78744CD0976D79F02BE87811"><enum>(B)</enum><text>disclose any
other material information that a reasonable investor would want to know, and
make no material omission of such information, relating to eligible mortgage
loans collateralizing a covered security; and</text>
</subparagraph></paragraph><paragraph id="id2E39904BA59840EBBD3BB8F5AFF13857"><enum>(2)</enum><text>establish the
timing, frequency, and manner in which such access and disclosures are
made.</text>
</paragraph></subsection><subsection id="id2A38803E864D44DF9D99B22B68E446A4"><enum>(b)</enum><header>Privacy
protections</header><text>In prescribing the rules required under this section,
the Corporation shall take into consideration issues of consumer privacy and
all statutes, rules, and regulations related to privacy of consumer credit
information and personally identifiable information. Such rules shall expressly
prohibit the identification of specific borrowers.</text>
</subsection></section><section id="idB3203FACDBDE4F94A8F14909D119AEA1"><enum>222.</enum><header>Investor
immunity</header><text display-inline="no-display-inline">Any private market
investor that has taken the first loss position in a covered security or that
has otherwise invested in any covered security insured under this Act shall
have immunity and protection from civil liability under Federal and State law,
and no cause of action may be brought under Federal or State law against such
investor, with respect to whether or not eligible mortgages that collateralize
a covered security insured under this Act have complied with the requirements
of this Act, including, but not limited to, with respect to any underwriting
requirements applicable to such mortgage, any representations or warranties
made by an approved issuer or an approved bond guarantor with respect to such
mortgages, or whether or not the terms of any uniform securitization agreement
have been met.</text>
</section><section id="idCB0E90A47D8240AE8049C8FDA24AA8B8"><enum>223.</enum><header>Uniform
securitization agreements</header>
<subsection id="id50e540d5926740d8914bb39699975a0f"><enum>(a)</enum><header>In
general</header><text>The Corporation shall develop, adopt, and publish
standard uniform securitization agreements for covered securities which are
insured under this Act.</text>
</subsection><subsection id="id277c459ac167462caa07729150f9da4b"><enum>(b)</enum><header>Required
content</header><text>The standard uniform securitization agreements required
to be developed under subsection (a) shall include terms relating to—</text>
<paragraph id="id8e1003d3b5954f6abb16274f8321096d"><enum>(1)</enum><text>pooling and
servicing, including the development of uniform standards and practices—</text>
<subparagraph id="idC5390EF01436409EBDDF3B6C9D7472F3"><enum>(A)</enum><text>regarding
remittance schedules and payment delays; and</text>
</subparagraph><subparagraph id="id8D821E9AA5084784B539E147A566CA03"><enum>(B)</enum><text>permitting the
transfer of servicing rights, if such transfer is determined to be in the best
financial interest of the investor, as such interest is calculated on a net
present value basis;</text>
</subparagraph></paragraph><paragraph id="id1b58fcd0984c401d84c8b22c97156a19"><enum>(2)</enum><text>representations
and warranties, including representations and warranties as to compliance or
conformity with the requirements of this Act;</text>
</paragraph><paragraph id="id15d7efb4e4204086ab1468db93788356"><enum>(3)</enum><text>indemnification
and remedies, including for the restitution or indemnification of the
Corporation with respect to early term delinquencies of eligible mortgages
collateralizing a covered security;</text>
</paragraph><paragraph id="id3b733f988f4346af83d3d222406e21f4"><enum>(4)</enum><text>the
qualification, responsibilities, and duties of trustees; and</text>
</paragraph><paragraph id="idBAED5EDDA5DE4AF0BD97EF659A8B7FAF"><enum>(5)</enum><text>any other terms
or standards the Corporation determines necessary or appropriate.</text>
</paragraph></subsection><subsection id="id8E4E6E8CEB7844B2B4F55486714E2FC0"><enum>(c)</enum><header>Defining
representation and warranty violations</header><text>In developing the uniform
securitization agreements required under subsection (a), the Corporation shall
also develop, adopt, and publish clear and uniform standards that define and
illustrate what actions, or omissions to act, comprise a violation of the
representations and warranties clauses that are made a part of such
agreements.</text>
</subsection><subsection id="idF09A52B8A50043A4B87E2C098B2A3204"><enum>(d)</enum><header>Consultation</header><text>The
Corporation shall work with industry groups, including servicers, originators,
issuers, and mortgage investors to develop the uniform securitization
agreements required under subsection (a).</text>
</subsection></section><section id="id16B10FA1849842749F4473E749B5F8BD"><enum>224.</enum><header>Uniform
mortgage database</header>
<subsection id="idDBF1C7DCB83240BBAA04FFBF530579F6"><enum>(a)</enum><header>Uniform
Mortgage Database</header><text>The Corporation shall establish, operate, and
maintain a database for the collection, public use, and dissemination of
uniform loan level information on eligible mortgages relating to—</text>
<paragraph id="id21C6B3E8797145AA82116B3BF00646ED"><enum>(1)</enum><text>loan
characteristics;</text>
</paragraph><paragraph id="idA819AB14341A40009BEA44A3DC31034B"><enum>(2)</enum><text>borrower
information;</text>
</paragraph><paragraph id="id5209EBEB91874EAE90E6E2E6548917A1"><enum>(3)</enum><text>the property
securing the eligible mortgages;</text>
</paragraph><paragraph id="idD51F53C0B970423AB668D42F84F16545"><enum>(4)</enum><text>loan data
required at the time of application for insurance from the Corporation under
this title;</text>
</paragraph><paragraph id="idD83C0FF8167849E59699DDA86C38325D"><enum>(5)</enum><text>the quality and
consistency of appraisal and collateral data on eligible mortgages;</text>
</paragraph><paragraph id="id8DB67EF0059B4F5FB1E24C52B5EC9155"><enum>(6)</enum><text>industry-wide
servicing data standards; and</text>
</paragraph><paragraph id="idD6C9A759B4344F63BE03D8D16DC53991"><enum>(7)</enum><text>such other data,
datasets, information, facts, or measurements as the Corporation determines
appropriate to improve and enhance loan quality and operational efficiencies
within the secondary mortgage market.</text>
</paragraph></subsection><subsection id="idD81700C0A1914AD6AA6094B1331A2178"><enum>(b)</enum><header>Considerations</header><text>In
establishing the database required under subsection (a), the Corporation shall
take into consideration, build upon, and adopt to the extent the Corporation
determines appropriate, the existing data standards set forth under the Uniform
Mortgage Data Program initiative established by the Federal Housing Finance
Agency.</text>
</subsection><subsection id="id81F39A6CCD50427AA92F512682EEA024"><enum>(c)</enum><header>Regulations</header><text>The
Corporation shall, by regulation—</text>
<paragraph id="idB0EEB359DFE649D787706C58259E97AC"><enum>(1)</enum><text>establish the
manner and form by which any loan level information collected under subsection
(a) may be accessed by the public, including whether or not to establish a fee
for such access;</text>
</paragraph><paragraph id="idC3B4B1C61E7A49E7A449BD5924B4C5C0"><enum>(2)</enum><text>require that such
loan level information be made available to the public in a uniform manner, in
a form designed for ease and speed of access, ease and speed of downloading,
and ease and speed of use; and</text>
</paragraph><paragraph id="id4DFAA8CCD13C4D9CBB9DB35CCDC49014"><enum>(3)</enum><text>ensure the
protection of any personally identifiable information contained in any
information, or mix of information, collected and made available for public
access.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id024F8879CD9443E4A49159DF576B4EAC"><enum>(d)</enum><header>Monthly
update</header><text>The database required under subsection (a) shall be
updated not less frequently than once a month.</text>
</subsection></section><section id="idEB96C04B074D462D9962CB7A894BA8F8"><enum>225.</enum><header>Electronic
registration of eligible mortgages</header>
<subsection id="idADF2E415EE7E4ED8A3E24BF1CD9DB508"><enum>(a)</enum><header>Establishment
of electronic registration system</header><text display-inline="yes-display-inline">The Corporation shall establish, operate,
and maintain an electronic registry system for eligible mortgages that
collateralize a covered security insured under this Act in order to automate,
centralize, standardize, and improve the process of tracking changes in
servicing rights and beneficial ownership interests in such eligible
mortgages.</text>
</subsection><subsection id="id061E05E4DBBF4AAEAD4DA337E455A0FC"><enum>(b)</enum><header>Considerations</header><text>In
establishing the electronic registry system required under subsection (a), the
Corporation shall take into consideration, build upon, and adopt to the extent
the Corporation determines appropriate, any existing efforts of the Federal
Housing Finance Agency or expertise among the private sector to develop a
sound, efficient system for document custody and electronic registration of
mortgages, notes, titles, and liens.</text>
</subsection></section></subtitle><subtitle id="idC7DB065A527E4CCD8BE4793E9C64150A"><enum>D</enum><header>FMIC
Structure</header>
<section id="id7337139F233047C28ABEDC40E74D9389"><enum>231.</enum><header>Office of
Underwriting</header>
<subsection id="idC086D02AF25C45D69D06AD3276730963"><enum>(a)</enum><header>Establishment</header><text>There
is established within the Federal Mortgage Insurance Corporation an Office of
Underwriting which shall be headed by the Deputy Director of Underwriting, who
shall be appointed by the Board of Directors.</text>
</subsection><subsection id="id15DF82588BD448DC9670E5ECF6592B62"><enum>(b)</enum><header>Responsibilities</header><text>The
Office of Underwriting shall ensure, through oversight, analysis, and
examination, that eligible mortgages that collateralize a covered security
insured under this Act comply with the requirements of this Act, including with
respect to—</text>
<paragraph id="id24E6B76C76EC4708BC4E498C1194FFCB"><enum>(1)</enum><text>the submission of
complete and accurate loan data on eligible mortgages;</text>
</paragraph><paragraph id="id38417596EF0D4F7584F51DED02A24FE8"><enum>(2)</enum><text>the
identification of ineligible mortgage loans;</text>
</paragraph><paragraph id="idF741A0C8F3FE45229F251340CD60A5C6"><enum>(3)</enum><text>assisting lenders
with originating high-quality, lower-risk eligible mortgages; and</text>
</paragraph><paragraph id="id4A6F37F858EF4E2296017327D580ED2A"><enum>(4)</enum><text>any other
activity that the Director determines appropriate.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id08E317DFBFEF471BBBD486846CF40144"><enum>232.</enum><header>Office of
Securitization</header>
<subsection id="id472A78AD5A2249D79B70B1D92C4A5DD8"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">There is established within the Federal
Mortgage Insurance Corporation an Office of Securitization which shall be
headed by the Deputy Director of Securitization, who shall be appointed by the
Board of Directors.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8A0DD0702DAF47FBB32623F5B6BACCEC"><enum>(b)</enum><header>Responsibilities</header>
<paragraph commented="no" display-inline="no-display-inline" id="id44F67F4539384D6F8BBC9C6B60B3CEF6"><enum>(1)</enum><header>In
general</header><text>The Office of Securitization shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idDEE021300422405DBFBA400E3730857E"><enum>(A)</enum><text>oversee and
supervise the common securitization platform developed by the business entity
announced by the Federal Housing Finance Agency and established by the
enterprises, including by requiring that the platform have system capabilities
to permit the issuance of multi-lender covered securities;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id73E77F8978454B3ABB5353106C5537AA"><enum>(B)</enum><text>ensure that
credit unions, community and mid-size banks, and small non-depository lenders
have equitable access to any such platform, including through the development
and facilitation of options for multi-lender pools of eligible mortgages to be
securitized and issued as covered securities through such platform; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id18FC80F139C344828AFBAFD96D189770"><enum>(C)</enum><text>coordinate and
consult with the Federal Home Loan Bank System to establish a securitization
platform that addresses the needs of its members.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBBF7B893CE52412E83198347FFB4D446"><enum>(2)</enum><header>Rules for use
of common securitization platform</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id098B0063426040A1B0F647D43DE617C0"><enum>(A)</enum><header>In
general</header><text>The Corporation, acting through the Office of
Securitization, may promulgate rules—</text>
<clause commented="no" display-inline="no-display-inline" id="idE4CB93467A164445B2F2DA2EFDAC6446"><enum>(i)</enum><text>regarding the use
of the common securitization platform described under paragraph (1)(A);
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8D6E959484754AA3914D60E21AA1F299"><enum>(ii)</enum><text>to permit
securities other than covered securities to be issued through such platform for
reasonable compensation.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6406CCCE14B34974BA38BE81FF34C104"><enum>(B)</enum><header>Content of
rules</header><text>Any rule that may be promulgated under subparagraph (A) may
include a requirement that any security to be issued through the common
securitization platform be subject to a uniform securitization agreement
developed under section 223.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id65E1397EB6744C12B9DA487F6C03A898"><enum>(c)</enum><header>Establishment
of database To provide notice to different classes of lien
holders</header><text>The Office of Securitization shall establish, operate,
and maintain a database that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id4E77F3D46A884D55AF26F1F67028BA04"><enum>(1)</enum><text>can be accessed
by any holder of a lien on an eligible mortgage;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCA7E887563BB41A1B358FC8B1D6DB64E"><enum>(2)</enum><text>identifies and
tracks if a junior lien or any other subordinate lien has been issued on the
property securing an eligible mortgage;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD5FEEDF437C94AF0B29BB4B94526F601"><enum>(3)</enum><text>notifies, to the
extent feasible, any senior or first lien holder of the existence of such
junior or subordinate lien; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id50628A4A5B884AEDB9B78DDBB4ED1FF3"><enum>(4)</enum><text>informs—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id9CDFE72C74594940B075CEAC4707BB4D"><enum>(A)</enum><text>the senior or
first lien holder of the monthly performance of the junior or subordinate lien;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id41476A6213164A7A906F9A7A94B50825"><enum>(B)</enum><text>the junior or
subordinate lien holder of the monthly performance of the senior or first
lien.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id9EA2D9B6317945C4AA6BBD2F811AD4B2"><enum>233.</enum><header>Office of
Federal Home Loan Bank Supervision</header>
<subsection id="id454fd4f23b7e4e759e92b15b69119ae9"><enum>(a)</enum><header>Establishment</header><text>There
is established within the Federal Mortgage Insurance Corporation an Office of
Federal Home Loan Bank Supervision which shall be headed by the Deputy Director
of Federal Home Loan Bank Supervision, who shall be appointed by the Board of
Directors.</text>
</subsection><subsection id="id1036076bc6d345c29870c3fa3635e89b"><enum>(b)</enum><header>Responsibilities</header><text>The
Office of Federal Home Loan Bank Supervision shall—</text>
<paragraph id="id83a822312778484db21365d17c0d78ae"><enum>(1)</enum><text>oversee,
coordinate, and supervise the Federal Home Loan Banks and the Federal Home Loan
Bank System, including the transition of all activities transferred to the
Corporation pursuant to section 301; and</text>
</paragraph><paragraph id="idfb77dd1999a343078b24ee78c2374ff0"><enum>(2)</enum><text>supervise any
authorized subsidiary of one or more Federal Home Loan Banks that is approved
as an approved issuer pursuant to section 213(b)(2)(A)(ii), including with
respect to the initial capitalization of any such subsidiary.</text>
</paragraph></subsection></section></subtitle><enum>III</enum><header>Transfer of
powers, personnel, and property to FMIC from FHFA</header>
<section id="id28AD4DFC931D479BAF422A59C7BD7291"><enum>301.</enum><header>Powers and
duties transferred</header>
<subsection id="id3184FEFACD714252BC00A7F3D1D711FF"><enum>(a)</enum><header>Federal Home
Loan Bank functions transferred</header>
<paragraph id="idDD880EF4A0E14DFAB7A6D5CE49F0504D"><enum>(1)</enum><header>Transfer of
functions</header><text display-inline="yes-display-inline">There are
transferred to the Corporation all functions of the Federal Housing Finance
Agency and the Director of the Federal Housing Finance Agency relating
to—</text>
<subparagraph id="idCF1400675905489686639D9C36AC42EE"><enum>(A)</enum><text display-inline="yes-display-inline">the supervision of the Federal Home Loan
Banks and the Federal Home Loan Bank System; and</text>
</subparagraph><subparagraph id="id1E32895269AA48DC99BF57800C100FF5"><enum>(B)</enum><text display-inline="yes-display-inline">all rulemaking authority of the Federal
Housing Finance Agency and the Director of the Federal Housing Finance Agency
relating to the Federal Home Loan Banks and the Federal Home Loan Bank
System.</text>
</subparagraph></paragraph><paragraph id="idBD3140FDB7244134AEB27C552CE4A147"><enum>(2)</enum><header>Powers,
authorities, rights, and duties</header><text>The Corporation shall succeed to
all powers, authorities, rights, and duties that were vested in the Federal
Housing Finance Agency and the Director of the Federal Housing Finance Agency,
including all conservatorship or receivership authorities, on the day before
the transfer date in connection with the functions and authorities transferred
under paragraph (1).</text>
</paragraph><paragraph id="id5F02FFB003A8459C802819A71B284390"><enum>(3)</enum><header>Effective
date</header><text>The transfer of functions under this paragraph shall take
effect on the transfer date.</text>
</paragraph></subsection><subsection id="idDDE0E0DBFA0444C3AD6BCAF9E10D1985"><enum>(b)</enum><header>Continuation
and coordination of certain actions</header>
<paragraph id="id5c4545df02f347d786e41fdbed313a89"><enum>(1)</enum><header>In
general</header><text>All regulations, orders, determinations, and resolutions
described under paragraph (2) shall remain in effect according to the terms of
such regulations, orders, determinations, and resolutions, and shall be
enforceable by or against the Corporation until modified, terminated, set
aside, or superseded in accordance with applicable law by the Corporation, any
court of competent jurisdiction, or operation of law.</text>
</paragraph><paragraph id="id652EFB1D8F0D4287B954DFD565EE574C"><enum>(2)</enum><header>Applicability</header><text>A
regulation, order, determination, or resolution is described under this
subsection if it—</text>
<subparagraph id="idED16AEE161D74A8BB5E1BEA02B63F241"><enum>(A)</enum><text>was issued, made,
prescribed, or allowed to become effective by—</text>
<clause id="idE4EE5E0298414176A16739FEE96F97B4"><enum>(i)</enum><text>the
Federal Housing Finance Agency; or</text>
</clause><clause id="id7E6D3FD2DD1A47708A1BC2A9A5E85C03"><enum>(ii)</enum><text>a
court of competent jurisdiction, and relates to functions transferred by this
Act;</text>
</clause></subparagraph><subparagraph id="id2927276FBE814CFE982BBDF4D8D96531"><enum>(B)</enum><text>relates to the
performance of functions that are transferred by this section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEE60820A451A44C19C70E85C9B8CE4A3"><enum>(C)</enum><text>is in effect on
the transfer date.</text>
</subparagraph></paragraph></subsection><subsection id="id796F654A8B81456F8719067A1D165C88"><enum>(c)</enum><header>Disposition of
affairs</header><text>During the period preceding the transfer date, the
Director of the Federal Housing Finance Agency, for the purpose of winding up
the affairs of the Federal Housing Finance Agency in connection with the
performance of functions that are transferred by this section—</text>
<paragraph id="idE10D5EA5F69145D78D3FE37686F8DBEB"><enum>(1)</enum><text>shall manage the
employees of such Agency and provide for the payment of the compensation and
benefits of any such employees which accrue before the transfer date;
and</text>
</paragraph><paragraph id="id3AA42999FA6D464A9BDB4087C784D590"><enum>(2)</enum><text>may take any
other action necessary for the purpose of winding up the affairs of the
Office.</text>
</paragraph></subsection><subsection id="idB78EA4FA0C8F4AD6994196AFE5CDCA13"><enum>(d)</enum><header>Use of property
and services</header>
<paragraph id="id57B50BF6861D41238B499297771BDDF8"><enum>(1)</enum><header>Property</header><text>The
Corporation may use the property and services of the Federal Housing Finance
Agency to perform functions which have been transferred to the Corporation
until such time as the Agency is abolished under section 303 to facilitate the
orderly transfer of functions transferred under this section, any other
provision of this Act, or any amendment made by this Act to any other provision
of law.</text>
</paragraph><paragraph id="idA9625376489B499382CA8E505FE046DC"><enum>(2)</enum><header>Agency
services</header><text>Any agency, department, or other instrumentality of the
United States, and any successor to any such agency, department, or
instrumentality, that was providing supporting services to the Agency before
the transfer date in connection with functions that are transferred to the
Corporation shall—</text>
<subparagraph id="idE4DA2EF158114A77824CD4B8A6371171"><enum>(A)</enum><text>continue to
provide such services, on a reimbursable basis, until the transfer of such
functions is complete; and</text>
</subparagraph><subparagraph id="id0C15848CC85644EEA84E7C032D8E043F"><enum>(B)</enum><text>consult with any
such agency to coordinate and facilitate a prompt and reasonable
transition.</text>
</subparagraph></paragraph></subsection><subsection id="idD084669B946C4B0E81CBCBFDD394C05F"><enum>(e)</enum><header>Continuation of
services</header><text>The Corporation may use the services of employees and
other personnel of the Federal Housing Finance Agency, on a reimbursable basis,
to perform functions which have been transferred to the Corporation for such
time as is reasonable to facilitate the orderly transfer of functions pursuant
to this section, any other provision of this Act, or any amendment made by this
Act to any other provision of law.</text>
</subsection><subsection id="idA193EEA1470C4EC583F4E8A4ED39E049"><enum>(f)</enum><header>Savings
provisions</header>
<paragraph id="id625DEBF59A084F0D8FCD91F8AB4ED05A"><enum>(1)</enum><header>Existing
rights, duties, and obligations not affected</header><text>Subsection (a) and
section 303 shall not affect the validity of any right, duty, or obligation of
the United States, the Director of the Federal Housing Finance Agency, the
Federal Housing Finance Agency, or any other person, that existed on the day
before transfer date.</text>
</paragraph><paragraph id="id8B4D70FF6CE04BDAB18A00412BABFE35"><enum>(2)</enum><header>Continuation of
suits</header><text>No action or other proceeding commenced by or against the
Director of the Federal Housing Finance Agency in connection with the functions
that are transferred to the Corporation under this section shall abate by
reason of the enactment of this Act, except that the Corporation shall be
substituted for the Director of the Federal Housing Finance Agency as a party
to any such action or proceeding.</text>
</paragraph></subsection><subsection id="ID4ADEFA4B57D54D66A6AC8C32957BDBE4"><enum>(g)</enum><header>Conforming
amendments</header>
<paragraph id="id4DF5DD35CFB94581BFB2C5906E1638C5"><enum>(1)</enum><header>Federal Home
Loan Bank Act</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>
<subparagraph id="idE7099A7942B64950A701FBFCFED2426F"><enum>(A)</enum><text>by striking
<quote>the Director</quote> and inserting <quote>the Corporation</quote> each
place that term appears;</text>
</subparagraph><subparagraph id="id1F647735154D4089A445A59027E357E2"><enum>(B)</enum><text>by striking
<quote>The Director</quote> and inserting <quote>The Corporation</quote> each
place that term appears;</text>
</subparagraph><subparagraph id="idF9501380FE3B466097FBCF7017E9948F"><enum>(C)</enum><text>by striking
<quote>Chairman of the Director of Governors</quote> and inserting
<quote>Chairman of the Board of Governors</quote> each place that term
appears;</text>
</subparagraph><subparagraph id="id328FE5D2ECD7438E8AE01BC7C890260B"><enum>(D)</enum><text>by striking
<quote>the Agency</quote> and inserting <quote>the Corporation</quote> each
place that term appears;</text>
</subparagraph><subparagraph id="id6A860760F5C843AC897A48D04DE808C8"><enum>(E)</enum><text>in section 2, by
striking paragraphs (11) and (12) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id612A9334F1EC4C0C8DAB8470CE484BFF" style="OLC">
<paragraph id="id5405740380E948EC8C44ABA5577B3D1D"><enum>(11)</enum><header>Corporation</header><text>The
term <quote>Corporation</quote> means the Federal Mortgage Insurance
Corporation established under title I of the <short-title>Housing Finance Reform and Taxpayer Protection Act of
2013</short-title>.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idB81F3F9ED08F48B7B8D6719B4D01A607"><enum>(F)</enum><text>in section
11(l)(5), in the header to such paragraph, by striking <quote><header-in-text level="paragraph" style="OLC">of the director</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph id="id5AF2DB776A014CC4841896C8394E6FD9"><enum>(2)</enum><header>Federal Housing
Enterprises Financial Safety and Soundness Act</header><text>Section 1316 of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4516) is amended—</text>
<subparagraph id="idE51F5ECD2E084798B20F4D203D5151F8"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="id09DD5F24D4BE4B5C82819D95092FDC4B"><enum>(i)</enum><text>in
the matter preceding paragraph (1), by striking <quote>the regulated
entities</quote> and inserting <quote>each enterprise</quote>; and</text>
</clause><clause id="id36ED81DDCB93403D8161A97DB7D57E65"><enum>(ii)</enum><text>in
paragraph (1), by striking <quote>and under section 20 of the Federal Home Loan
Bank Act</quote>;</text>
</clause></subparagraph><subparagraph id="id2F779CC5C1354F7AA5E6FCE0807A2C99"><enum>(B)</enum><text>in subsection
(b), by striking paragraph (2);</text>
</subparagraph><subparagraph id="idFE6E904CC82D4CF5AB20C98F597C4613"><enum>(C)</enum><text>in subsection
(c)—</text>
<clause id="idB668DE4CCB404812BBC8674E5996EABE"><enum>(i)</enum><text>by
striking <quote>any regulated entity</quote> and inserting <quote>any
enterprise</quote>;</text>
</clause><clause id="id207906EFD8BC4D0F9022884BC1C601DB"><enum>(ii)</enum><text>by
striking <quote>the regulated entity</quote> and inserting <quote>the
enterprise</quote>;</text>
</clause><clause id="id7D7B5583B16A45FFA8374B96451D4868"><enum>(iii)</enum><text>by striking
<quote>a regulated entity</quote> and inserting <quote>an enterprise</quote>
each place that term appears;</text>
</clause><clause id="id0D990BA874584258A6CE99B39BE3A0FC"><enum>(iv)</enum><text>by
striking <quote>such regulated entity</quote> and inserting <quote>such
enterprise</quote> each place that term appears; and</text>
</clause><clause id="id5B1E242B8A574F318FF19563B165395A"><enum>(v)</enum><text>by
striking <quote>such entity</quote> and inserting <quote>such
enterprise</quote>; and</text>
</clause></subparagraph><subparagraph id="idD68CFAB20BA64DEEA7A558DD7301BA87"><enum>(D)</enum><text>in subsection
(e)—</text>
<clause id="id7884976FFD044953B8E01EC27BDFCB33"><enum>(i)</enum><text>by
striking <quote>each regulated entity</quote> and inserting <quote>each
enterprise</quote>; and</text>
</clause><clause id="id303B2A2DB28C4080B149FD7EB166D976"><enum>(ii)</enum><text>by
striking <quote>such regulated entity</quote> and inserting <quote>such
enterprise</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="IDBBBCE8E1A78F4434994646A266A2A7D6"><enum>(3)</enum><header>Right to
Financial Privacy Act of 1978</header><text>Section 1113(o) of the Right to
Financial Privacy Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3413">12 U.S.C. 3413(o)</external-xref>) is amended—</text>
<subparagraph id="ID7877F82D47984E7D92BF9D1EA68030F5"><enum>(A)</enum><text>in the heading to
the subsection, by <quote><header-in-text level="subsection" style="OLC">Federal Housing Finance Agency</header-in-text></quote> and
inserting <quote><header-in-text level="subsection" style="OLC">Federal
Mortgage Insurance Corporation</header-in-text></quote>;</text>
</subparagraph><subparagraph id="id876F9FA9F58C452A9ABF467C7C0302E4"><enum>(B)</enum><text>by striking
<quote>Federal Housing Finance Agency</quote> and inserting <quote>Federal
Mortgage Insurance Corporation</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3856B8B59D7E4FE3B6CDB97686C90BF5"><enum>(C)</enum><text>by striking
<quote>Federal Housing Finance Agency's</quote> and inserting <quote>Federal
Mortgage Insurance Corporation's</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0483AC0AA5234FF092D76E11FE343EBB"><enum>(4)</enum><header>Effective
date</header><text>The amendments made by this subsection shall take effect on
the transfer date.</text>
</paragraph></subsection></section><section id="id6ADBB26A9D8541FD93A1C96ACB95FC2F"><enum>302.</enum><header>Transfer and
rights of employees of the FHFA</header>
<subsection id="id4BE577C16855469D9595887DA9D7C818"><enum>(a)</enum><header>Transfer</header><text>Each
employee of the Federal Housing Finance Agency that is employed in connection
with functions that are transferred to the Corporation under section 301 shall
be transferred to the Corporation for employment, not later than the transfer
date, and such transfer shall be deemed a transfer of function for purposes of
<external-xref legal-doc="usc" parsable-cite="usc/5/3503">section 3503</external-xref> of title 5, United States Code.</text>
</subsection><subsection id="idA3925B2ADC944D3CA78DEF84B29BC8B5"><enum>(b)</enum><header>Status of
employees</header><text display-inline="yes-display-inline">The transfer of
functions under this title, and the abolishment of the Federal Housing Finance
Agency under section 303, may not be construed to affect the status of any
transferred employee as an employee of an agency of the United States for
purposes of any other provision of law.</text>
</subsection><subsection id="id766A1723350842EA9124E11C11682749"><enum>(c)</enum><header>Guaranteed
positions</header><text>Each employee transferred under subsection (a) shall be
guaranteed a position with the same status, tenure, grade, and pay as that held
on the day immediately preceding the transfer.</text>
</subsection><subsection id="id426AD018915C4CD89BC815D932BA9B02"><enum>(d)</enum><header>Appointment
authority for excepted employees</header>
<paragraph id="id55C10A0F64AF44BBB8931E0E3647B9BE"><enum>(1)</enum><header>In
general</header><text>In the case of an employee occupying a position in the
excepted service, any appointment authority established under law or by
regulations of the Office of Personnel Management for filling such position
shall be transferred, subject to paragraph (2).</text>
</paragraph><paragraph id="idAA34CB82033540DD91A7FC6EAD4F9B89"><enum>(2)</enum><header>Decline of
transfer</header><text>The Corporation may decline a transfer of authority
under paragraph (1), to the extent that such authority relates to a position
excepted from the competitive service because of its confidential,
policymaking, policy-determining, or policy-advocating character.</text>
</paragraph></subsection><subsection id="id910836C26ABA4A0BA0A42FD1A0D3878A"><enum>(e)</enum><header>Reorganization</header><text>If
the Corporation determines, after the end of the 1-year period beginning on the
transfer date, that a reorganization of the combined workforce is required,
that reorganization shall be deemed a major reorganization for purposes of
affording affected employee retirement under section 8336(d)(2) or
8414(b)(1)(B) of title 5, United States Code.</text>
</subsection><subsection id="id7D70ABD9FACC4F5E9DAE1304395FABB7"><enum>(f)</enum><header>Employee
benefit programs</header>
<paragraph id="id164F4432EFD84CA3B078603D6A2083DF"><enum>(1)</enum><header>In
general</header><text>Any employee of the Federal Housing Finance Agency
accepting employment with the Corporation as a result of a transfer under
subsection (a) may retain, for 12 months after the date on which such transfer
occurs, membership in any employee benefit program of the Agency or the
Corporation, as applicable, including insurance, to which such employee belongs
on the transfer date if—</text>
<subparagraph id="id31B253F912F747FF8FC8C5A9A9AA6C0E"><enum>(A)</enum><text>the employee does
not elect to give up the benefit or membership in the program; and</text>
</subparagraph><subparagraph id="id77AC35FFA8754244A302CFD6F80AB2D2"><enum>(B)</enum><text>the benefit or
program is continued by the Corporation.</text>
</subparagraph></paragraph><paragraph id="id918447540B2240E4B9BC38442DC52E4F"><enum>(2)</enum><header>Cost
differential</header>
<subparagraph id="id741A41CD7DC5470196C64F0902042665"><enum>(A)</enum><header>In
general</header><text>The difference in the costs between the benefits which
would have been provided by the Federal Housing Finance Agency and those
provided by this section shall be paid by the Corporation.</text>
</subparagraph><subparagraph id="id5AE212494F4E4C479A7EE4273B3D6910"><enum>(B)</enum><header>Health
Insurance</header><text>If any employee elects to give up membership in a
health insurance program or the health insurance program is not continued by
the Corporation, the employee shall be permitted to select an alternate Federal
health insurance program not later than 30 days after the date of such election
or notice, without regard to any other regularly scheduled open season.</text>
</subparagraph></paragraph></subsection></section><section id="id7D23FAD7714547F88F2D0F8AD75E7D38"><enum>303.</enum><header>Abolishment of
FHFA</header><text display-inline="no-display-inline">Effective upon the FMIC
certification date, the Federal Housing Finance Agency and the position of the
Director of the Federal Housing Finance Agency are abolished.</text>
</section><section id="id0F7341E282C24C1782D2E0151660119E"><enum>304.</enum><header>Transfer of
property and facilities</header><text display-inline="no-display-inline">Effective upon the FMIC certification date
all property of the Federal Housing Finance Agency shall transfer to the
Corporation.</text>
</section><section id="id3DDF42EF62FB42DAA315C7817861A605"><enum>305.</enum><header>Technical and
conforming amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="id0E61EEA6B3084CC88DABFE3EDFD926B9"><enum>(a)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of enactment of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2359A856D16E46578073D1B63CF59408"><enum>(b)</enum><header>References in
Federal law</header><text>On and after the date of enactment of this Act, any
reference in Federal law to the Director of the Federal Housing Finance Agency
or the Federal Housing Finance Agency, in connection with any function of the
Director of the Federal Housing Finance Agency or the Federal Housing Finance
Agency transferred under section 301, shall be deemed a reference to the
Chairperson of the Federal Mortgage Insurance Corporation or the Federal
Mortgage Insurance Corporation, as appropriate and consistent with the
amendments made by this Act.</text>
</subsection><subsection id="idF69A7138C8A143A88180AD0323A0FC12"><enum>(c)</enum><header>Title 18,
United States Code</header><text>Title 18, United States Code, is
amended—</text>
<paragraph id="idBAD787E832554E57B9606E4A4DB2EED3"><enum>(1)</enum><text>in section 1905,
by inserting <quote>or the Federal Mortgage Insurance Corporation</quote> after
<quote>Federal Housing Finance Agency</quote>;</text>
</paragraph><paragraph id="id41402FB9C2C543B18A623D33005390C8"><enum>(2)</enum><text>in section
212(c)(2)—</text>
<subparagraph id="idD6E90E7967C8492293DB7A5682DA7012"><enum>(A)</enum><text>in subparagraph
(F), by striking <quote>; and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="id20AD2B08EACE42AAAB87BEAA01FC90E4"><enum>(B)</enum><text>in subparagraph
(G), by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="id035CF101B5BA4FB48330C0FE8177FF57"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id42C39C58812E441CADCC1255CBF686F8" style="OLC">
<subparagraph id="id87754FFA55A94E5DBD2A670658BDC7DD"><enum>(H)</enum><text>the Federal
Mortgage Insurance
Corporation.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id3014E812A465485D8D79B3335C1DF4E0"><enum>(3)</enum><text>in section 657,
by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency,</quote>;</text>
</paragraph><paragraph id="id378DB01744A24480AEED46B3D0DCCABC"><enum>(4)</enum><text>in section 1006,
by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency,</quote>; and</text>
</paragraph><paragraph id="id2C1AC078EFE9403995D3337F69AED53A"><enum>(5)</enum><text>in section 1014,
by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency,</quote>.</text>
</paragraph></subsection><subsection id="ID3ACFD69096F94BAE91BA2EE12F920CC8"><enum>(d)</enum><header>Flood Disaster
Protection Act of 1973</header><text>Section 102(b)(5) of the Flood Disaster
Protection Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/42/4012a">42 U.S.C. 4012a(b)(5)</external-xref>) is amended in subsection (b)(5),
by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency,</quote>.</text>
</subsection><subsection id="IDA48439278C1F4BA8BBE67816368589A0"><enum>(e)</enum><header>Title 5, United
States Code</header><text>Title 5, United States Code, is amended—</text>
<paragraph id="id2B4368F69F6542098858D1D48CEAF870"><enum>(1)</enum><text>in section 5313,
by inserting the following new item after the item relating to the Director of
the Federal Housing Finance Agency:</text>
<quoted-block display-inline="no-display-inline" id="ID6979AA444D334BAF8913731FB478C1CE" style="OLC">
<paragraph id="ID1B8BD0D15F324825B1C71B46DE401AD8"><enum></enum><text>Director of
the Federal Mortgage Insurance
Corporation.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id46F24BA98B8B4E00B1F5E69B86F46543"><enum>(2)</enum><text>in section
3132(a)(1)(D), by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency,</quote>.</text>
</paragraph></subsection><subsection id="IDC80E1645DC7247A49811389FD9A949CE"><enum>(f)</enum><header>Sarbanes-Oxley
Act</header><text>Section 105(b)(5)(B)(ii)(II) of the Sarbanes-Oxley Act of
2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/7215">15 U.S.C. 7215(b)(5)(B)(ii)(II)</external-xref>) is amended by inserting <quote>or the
Chairperson of the Federal Mortgage Insurance Corporation</quote> after
<quote>Director of the Federal Housing Finance Agency</quote>.</text>
</subsection><subsection id="IDE2A5014637464670AF531BB127D85F30"><enum>(g)</enum><header>Federal Deposit
Insurance Act</header><text>The Federal Deposit Insurance Act (12 U.S.C. 1811
et seq.) is amended—</text>
<paragraph id="idB32D462B23C24F0082805F1C1EF4BB57"><enum>(1)</enum><text>in section
7(a)(2)(A), by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote> each
place that term appears;</text>
</paragraph><paragraph id="id09C4C89F9CC148DAB671F98EB00C79EE"><enum>(2)</enum><text>in section
8(e)(7)(A)(vi), by inserting <quote>, the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency</quote>;</text>
</paragraph><paragraph id="id901C974C5C8C419CB7E1113544AF4AA4"><enum>(3)</enum><text>in section
11(t)(2)(A), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idB47A96FB6827409480B3584FDF21FB61" style="OLC">
<clause id="id6F2643F2A8B54672B7D9553737C14662"><enum>(viii)</enum><text>The Federal
Mortgage Insurance Corporation.</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1282D521E223410E9B9247F5D79B1F2C"><enum>(4)</enum><text>in section 33(e),
by inserting <quote>, the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency</quote>.</text>
</paragraph></subsection><subsection id="IDB85EA073698D477C9E9509938A8AA2C0"><enum>(h)</enum><header>Riegle
Community Development and Regulatory Improvement Act of
1994</header><text>Section 117(e) of the Riegle Community Development and
Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4716">12 U.S.C. 4716(e)</external-xref>) is amended by inserting
<quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal
Housing Finance Agency,</quote>.</text>
</subsection><subsection id="ID05FAADD95D4B4C41A012F7776774D5B9"><enum>(i)</enum><header>MAHRA Act of
1997</header><text>Section 517(b)(4) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f</external-xref> note) is amended by inserting
<quote>the Federal Mortgage Insurance Corporation,</quote> after <quote>Federal
Housing Finance Agency,</quote>.</text>
</subsection><subsection id="ID95467649EEC040B9AD594709D7D9E54B"><enum>(j)</enum><header>Title 44,
United States Code</header><text><external-xref legal-doc="usc" parsable-cite="usc/44/3502">Section 3502(5)</external-xref> of title 44, United States
Code, is amended by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency,</quote>.</text>
</subsection><subsection id="ID631588828ABD408789CEB68A1538EDAD"><enum>(k)</enum><header>Access to local
TV Act of 2000</header><text>Section 1004(d)(2)(D)(iii) of the Launching Our
Communities' Access to Local Television Act of 2000 (47 U.S.C.
1103(d)(2)(D)(iii)) is amended by inserting <quote>or the Federal Mortgage
Insurance Corporation,</quote> after <quote>Federal Housing Finance
Agency</quote>.</text>
</subsection><subsection id="idA1593D57045E4003885D6F78632ACBBD"><enum>(l)</enum><header>FIRREA</header><text>The
Financial Institutions Reform, Recovery, and Enhancement Act of 1989 is
amended—</text>
<paragraph id="id3EF71849A6634D598D5934324EEE1ED4"><enum>(1)</enum><text>in section
1216—</text>
<subparagraph id="id8B0C87C8B8ED48FABF5D8D1925351855"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="id7744EE8062B34905BA3A58498C5F33FF"><enum>(i)</enum><text>in
paragraph (2), by striking <quote>; and</quote> and inserting a
semicolon;</text>
</clause><clause id="id38EA83D645A3428A9AA09E160A5EBBE4"><enum>(ii)</enum><text>in
paragraph (3), by striking the period and inserting <quote>; and</quote>;
and</text>
</clause><clause id="id98312FD331954969831F7E41CA3B6496"><enum>(iii)</enum><text>by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id09480CE4D445472BBF0793E29793DDD5" style="OLC">
<paragraph id="id1811232DD4D0456EAEE318C200FDF07B"><enum>(4)</enum><text>the Federal
Mortgage Insurance Corporation.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="idDF2AA9EA7E014675B77C330C8E206424"><enum>(B)</enum><text>in subsection
(c), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote>
before <quote>and the Federal Housing Finance Agency,</quote>;</text>
</subparagraph></paragraph><paragraph id="id9A3F6E5373584D8AAF96075DFBAF697B"><enum>(2)</enum><text>in section
402(e), by striking <quote>Federal Housing Finance Agency</quote> each place
that term appears and inserting <quote>Federal Mortgage Insurance
Corporation</quote>;</text>
</paragraph><paragraph id="id96BF500B1CE740FD80A312D750247489"><enum>(3)</enum><text>in section 1124,
by inserting <quote>the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency,</quote> each place that term appears;
and</text>
</paragraph><paragraph id="id8EB1BA5765B54A92822FC35FBBE2512B"><enum>(4)</enum><text>in section
1125(b), by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency,</quote>.</text>
</paragraph></subsection><subsection id="id0D396FC237A84B79B816F1AF567E20D0"><enum>(m)</enum><header>EESA</header><text>The
Emergency Economic Stabilization Act of 2008 (<external-xref legal-doc="usc" parsable-cite="usc/12/5201">12 U.S.C. 5201</external-xref> note) is
amended—</text>
<paragraph id="id9232F5BD6CF746A88708BCF1F488F504"><enum>(1)</enum><text>in section
104(b)—</text>
<subparagraph id="id220FAFC8EC3E429E86529878384A6BD6"><enum>(A)</enum><text>in paragraph (4),
by striking <quote>; and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="id5FC710FEE57D43A2B38269F986AB87B6"><enum>(B)</enum><text>in paragraph (5),
by striking the period and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="id8E1589BB4EEB40499C5693E61B45D929"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idDB96CC309C314E6BB34CF14425AE8C94" style="OLC">
<paragraph id="id96C18C43AC9A43B384D2F3CE0E629902"><enum>(6)</enum><text>the Federal
Mortgage Insurance Corporation.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id014EACD6CB114999A63B4F94FA7A162B"><enum>(2)</enum><text>in section
109(b), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote>
after <quote>Federal Housing Finance Agency,</quote>.</text>
</paragraph></subsection><subsection commented="no" id="id9B1B3BF7050646B9A5D8AE4F82ECD89A"><enum>(n)</enum><header>Dodd-Frank
Act</header><text>The Dodd-Frank Wall Street Reform and Consumer Protection Act
(<external-xref legal-doc="public-law" parsable-cite="pl/111/203">Public Law 111–203</external-xref>) is amended—</text>
<paragraph commented="no" id="idF59122853C7F4674974C59F58F3BB854"><enum>(1)</enum><text>in section
342(g)(1)—</text>
<subparagraph id="id2462F4902D204B2190AA8BA2E3F5D675"><enum>(A)</enum><text>in subparagraph
(H), by striking <quote>; and</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph id="idD825B8D902EE435ABB5674D559EB6BE8"><enum>(B)</enum><text>in subparagraph
(I), by striking the period and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="id442CE156BC464E08A4B47D65D2D21E62"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="id2BDDA921AC184B859EDDD1FB5E997095" style="OLC">
<subparagraph id="idE43C8F4F31EF4B409008A59042EF0D0C"><enum>(J)</enum><text>the Federal
Mortgage Insurance Corporation.</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="id7116CA525FF44DF6B2B8B86BA77BA629"><enum>(2)</enum><text>in section
989E(a)(1), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0ECB9A45D68D43C6BB1E7A3027469441" style="OLC">
<subparagraph commented="no" id="id267FB1BB3B5343ABB04A8428E84B4F3F"><enum>(J)</enum><text>The Federal
Mortgage Insurance Corporation.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="id715CBAA4207D440EA295505B0D067734"><enum>(3)</enum><text>in section
1481(b), by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency,</quote>.</text>
</paragraph></subsection><subsection id="idE1F8B345C95D4D518DFDAA27B8364D59"><enum>(o)</enum><header>Housing and
Urban-Rural Recovery Act</header><text>Section 469 of the Housing and
Urban-Rural Recovery Act of 1983 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701p-1">12 U.S.C. 1701p–1</external-xref>) is amended, in the first
sentence, by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency,</quote>.</text>
</subsection><subsection id="id93E916A05FB24268AC9396636F9079F1"><enum>(p)</enum><header>Neighborhood
Reinvestment Corporation Act</header><text>Section 606(c)(3) of the
Neighborhood Reinvestment Corporation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8105">42 U.S.C. 8105(c)(3)</external-xref>) is amended by
inserting <quote>, the Federal Mortgage Insurance Corporation,</quote> after
<quote>Federal Housing Finance Agency</quote>.</text>
</subsection><subsection id="id178C669B08274590986EE23CDEDDCEB9"><enum>(q)</enum><header>Federal
Insurance Office Act</header><text><external-xref legal-doc="usc" parsable-cite="usc/31/313">Section 313(r)(4)</external-xref> of title 31, United States
Code, is amended by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance
Agency,</quote>.</text>
</subsection><subsection id="id7ADCC418482F4C07941C1A5E5F007477"><enum>(r)</enum><header>Commodity
Exchange Act</header><text>Section 1a(39)(E) of the Commodity Exchange Act (7
U.S.C. 1a(39)(E)) is amended—</text>
<paragraph id="idA02571E3307E4399B75572A0E5CF3100"><enum>(1)</enum><text>by striking
<quote>a regulated entity</quote> and inserting <quote>an enterprise</quote>;
and</text>
</paragraph><paragraph id="id3999D9244B4545B98B1B8CB7D37A5EEC"><enum>(2)</enum><text>by inserting
before the period at the end <quote>the Federal Mortgage Insurance Corporation
in the case of a swap dealer, major swap participant, security-based swap
dealer, or major security-based swap participant that is a Federal Home Loan
Bank</quote>.</text>
</paragraph></subsection><subsection id="id6AC8415A63CA4DD5BC79F2FBE0CAE60B"><enum>(s)</enum><header>Truth in
Lending Act</header><text>The Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1601">15 U.S.C. 1601 et seq.</external-xref>) is
amended—</text>
<paragraph id="id95270F53E6D24401A021EB3E7541E74A"><enum>(1)</enum><text>section
129H(b)(4), by inserting <quote>the Federal Mortgage Insurance
Corporation,</quote> after <quote>Federal Housing Finance Agency,</quote>;
and</text>
</paragraph><paragraph id="id86127CE4A733442881AACF88F22D7623"><enum>(2)</enum><text>in section
129E—</text>
<subparagraph id="id53331E0136CB4A70BAF7D85F7CC5D5B5"><enum>(A)</enum><text>in subsection
(g)(1), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote>
after <quote>Federal Housing Finance Agency,</quote>; and</text>
</subparagraph><subparagraph id="id69D6808217E842A1ABC0F2DCFEB59422"><enum>(B)</enum><text>in subsection
(h), by inserting <quote>the Federal Mortgage Insurance Corporation,</quote>
after <quote>Federal Housing Finance Agency,</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id467946E2D2334EB9A3E3FE426201E747"><enum>(t)</enum><header>FFIEC</header><text>The
first sentence of section 1011 of the Federal Financial Institutions
Examination Council Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/3310">12 U.S.C. 3310</external-xref>) is amended by inserting
<quote>the Federal Mortgage Insurance Corporation,</quote> before <quote>and
the Federal Housing Finance Agency</quote>.</text>
</subsection></section><enum>IV</enum><header>Improving
transparency, accountability, and efficacy within affordable housing</header>
<section id="id256C7E494FF04A859753F85CD1C3B346"><enum>401.</enum><header>Affordable
housing allocations</header>
<subsection id="id95B286EB85724213A992A9140167F128"><enum>(a)</enum><header>Fee and
allocation of amounts</header><text display-inline="yes-display-inline">Subject
to subsection (b), and in addition to any fees for the provision of insurance
established in accordance with title II, in each fiscal year the Corporation
shall—</text>
<paragraph id="ide43d9f40efd64608855b68eb8f408873"><enum>(1)</enum><text>charge and
collect a fee in an amount equal to not less than 5 basis points and not more
than 10 basis points for each dollar of the outstanding principal balance of
eligible mortgages collateralizing covered securities for which insurance is
being provided under title II; and</text>
</paragraph><paragraph id="idc66b578f33b5468b88e485524fe0c148"><enum>(2)</enum><text>allocate or
otherwise transfer—</text>
<subparagraph id="id35f4760f707945ad880014a8a5a1eb40"><enum>(A)</enum><text>80 percent of
such fee amounts to the Secretary of Housing and Urban Development to fund the
Housing Trust Fund established under section 1338 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>);
and</text>
</subparagraph><subparagraph id="id77d742de85d245a4a3ad6303c2b8363b"><enum>(B)</enum><text>20 percent of
such fee amounts to the Secretary of the Treasury to fund the Capital Magnet
Fund established under section 1339 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>).</text>
</subparagraph></paragraph></subsection><subsection id="id7793cdb37601489d9493f2d5f07aaf22"><enum>(b)</enum><header>Suspension of
contributions</header><text>The Corporation may temporarily suspend allocations
under subsection (a) upon a finding by the Corporation that such allocations
are contributing, or would contribute, to the financial instability of the
Mortgage Insurance Fund established under section 203.</text>
</subsection></section><section id="id7CB4A2AE2A2B4AF898ADAABD269681B7"><enum>402.</enum><header>Housing Trust
Fund</header><text display-inline="no-display-inline">Section 1338 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4568) is amended—</text>
<paragraph id="id84136C60E5514FD4ADE34C55D1628DD8"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), by striking <quote>by
the enterprises under section 1337</quote> and inserting <quote>pursuant to
section 401 of the <short-title>Housing Finance Reform and
Taxpayer Protection Act of 2013</short-title></quote>;</text>
</paragraph><paragraph id="idC5F3D85F8AA6463E8A30FE2912E994E9"><enum>(2)</enum><text display-inline="yes-display-inline">by repealing subsection (b); and</text>
</paragraph><paragraph id="id8EDA0ACEA6FE415E82F0CB3C4FD96113"><enum>(3)</enum><text>in subsection
(c)—</text>
<subparagraph id="idE4414D22E8CF466EBDF5E0E7ED122331"><enum>(A)</enum><text>in paragraph (1),
by striking <quote>Except as provided in subsection (b), the</quote> and
inserting <quote>The</quote>;</text>
</subparagraph><subparagraph id="id2355321C5CFD4C0CA03543CB84F6D51A"><enum>(B)</enum><text>in paragraph
(4)(B), by striking <quote>other than fiscal year 2009</quote>;</text>
</subparagraph><subparagraph id="idD87E7E31C02042F19F78C5B9E2722125"><enum>(C)</enum><text>in paragraph
(7)—</text>
<clause id="idC493575853A54A128FD4EC12231F0CDF"><enum>(i)</enum><text>in
subparagraph (A), by striking <quote>; and</quote> and inserting a
semicolon;</text>
</clause><clause id="id9E9F8C630FBD4E719F524B4A9CB77AEA"><enum>(ii)</enum><text>in
subparagraph (B)(iv)—</text>
<subclause id="id46C1C11A8B60461E995636EED7E6B253"><enum>(I)</enum><text>by striking
<quote>section 132</quote> and inserting <quote>section 1132</quote>;
and</text>
</subclause><subclause id="id13D012593F114F3DAFD50843846F3E42"><enum>(II)</enum><text>by striking the
period at the end and inserting a semicolon; and</text>
</subclause></clause><clause id="idFCE7AA0F18D04997B1EE122CD58A7029"><enum>(iii)</enum><text>by adding at
the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id0769CE840D7E4338A4F24F65B9C33528" style="OLC">
<subparagraph id="id3779761ABCB4452781A0F802F421091B"><enum>(C)</enum><text>grants and loans,
including through the use of pilot programs of sufficient scale, to support the
research and development of sustainable homeownership and affordable rental
programs, provided that such grant or loan amounts are used only for the
benefit of families whose income does not exceed 120 percent of the area median
income as determined by the Secretary, with adjustments for family size;
and</text>
</subparagraph><subparagraph id="idAFBC3A40F1214B18A076C9D1364CE479"><enum>(D)</enum><text>provide limited
credit enhancement, and other forms of credit support, for product and services
that—</text>
<clause id="idB475479171A74D408EE52C0933122A9F"><enum>(i)</enum><text>will increase the
rate of sustainable homeownership and affordable rental by individuals or
families whose income does not exceed 120 percent of the area median income as
determined by the Secretary, with adjustments for family size; and</text>
</clause><clause id="idD89D160CB27749B08DF7A529549312CF"><enum>(ii)</enum><text>might not
otherwise be offered or supported by a pilot program of sufficient scale to
determine the viability of such products and services in the private
market.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id0CA87AE8C06A4FE89AA987AA43DFF461"><enum>(D)</enum><text>in paragraph
(10)—</text>
<clause id="id0F8823D7046541AC8FE55FBFB100FC22"><enum>(i)</enum><text>by
amending subparagraph (A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id7D86F9EAF91B44A7B737E5DF53A7AC19" style="OLC">
<subparagraph id="id9C8164360BA54B299D5382C4F8D2D17F"><enum>(A)</enum><header>Ensuring
efficient use of grant amounts</header>
<clause id="id33D97CC51FE54007AFFD8005B15813C1"><enum>(i)</enum><header>Use for certain
eligible activities</header><text>In each fiscal year, of the aggregate amount
allocated to a State or State designated entity under this subsection—</text>
<subclause id="id6D08A4D430AC45AA83F1A8C7A4BE0EEF"><enum>(I)</enum><text>35 percent shall
be used for activities under subparagraph (A) of paragraph (7);</text>
</subclause><subclause id="id1D1C86A24326411C9109B678355E0025"><enum>(II)</enum><text>5 percent shall
be used for activities under subparagraph (B) of paragraph (7); and</text>
</subclause><subclause id="id6DB5B702CB034DCEAC73FA238DF818F3"><enum>(III)</enum><text>60 percent
shall be used for activities under subparagraphs (C) and (D) of paragraph
(7).</text>
</subclause></clause><clause id="idD751CB6F631D4B7EA59832520A108AD5"><enum>(ii)</enum><header>Ensuring
benefits for rural communities</header>
<subclause id="idAEF1F599BDC94269830E49369D222D50"><enum>(I)</enum><header>In
general</header><text>In each fiscal year, of the aggregate amount allocated to
a State or State designated entity under this subsection, the State or State
designated entity shall ensure that, at a minimum, such amounts are distributed
for the benefit of nonentitlement areas in that State in the same proportion
that the total amount of nonentitlement areas in that State bears to the total
amount of all areas in that State.</text>
</subclause><subclause id="idE7ABB2FBA43E4584B4D6C84741039F96"><enum>(II)</enum><header>Targeted
outreach to smaller communities</header><text>In carrying out the requirement
under subclause (I), each State or State designated entity shall in
distributing amounts allocated to that State or State designated entity give
priority to nonentitlement areas with a population of less than 20,000.</text>
</subclause><subclause id="id325A286C5C13485294F22D7009115A89"><enum>(III)</enum><header>Definition of
nonentitlement area</header><text>For purposes of this clause, the term
<quote>nonentitlement area</quote> has the same meaning given that term under
section 102(a)(7) of the Housing and Community Development Act of 1974 (42
U.S.C. 5302(a)(7)).</text>
</subclause></clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="id66503756227D499A86950F1328C72620"><enum>(ii)</enum><text>by
striking subparagraph (E).</text>
</clause></subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="id6055ba39a30645adbf1070577636011c"><enum>403.</enum><header>Capital Magnet
Fund</header><text display-inline="no-display-inline">Section 1339 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4569) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id49A5C8DCF9BF47CF8100F2C1C2A5AB84"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(1), by striking
<quote>pursuant to section 1337</quote> and inserting <quote>pursuant to
section 401 of the <short-title>Housing Finance Reform and
Taxpayer Protection Act of 2013</short-title></quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id36F1F0CB1AA74DA5AC8E3B958C240943"><enum>(2)</enum><text>in subsection
(h), by striking paragraph (7).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id77DF30805DD64994953D7739F7B7157E"><enum>404.</enum><header>Additional
taxpayer protections</header>
<subsection commented="no" display-inline="no-display-inline" id="idAEF285E24EF442ACADB28485F97BDB12"><enum>(a)</enum><header>Ensuring
benefits support citizens and lawful permanent residents</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development and the Secretary of the Treasury, respectively, shall ensure that
grant amounts allocated to covered grantees, allocated by covered grantees to
eligible recipients, or allocated to individuals by such eligible recipients
are used for the benefit of only lawful permanent residents and citizens of the
United States in carrying out the activities of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDCDC1ACC24A9468FA8B4D7DDCD1109E6"><enum>(1)</enum><text display-inline="yes-display-inline">the Housing Trust Fund; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1E80D8E3F82449AA9BA0F357017AB7E5"><enum>(2)</enum><text>the Capital
Magnet Fund.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id38D27171B1874B1CBE671FE98F050B41"><enum>(b)</enum><header>Not To be used
for political activities</header><text>Consistent with the existing
requirements under sections 1338(c)(10)(D) and section 1339(h)(5) of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992, the
Secretary of Housing and Urban Development and the Secretary of the Treasury,
respectively, shall ensure that grant amounts allocated by covered grantees to
eligible recipients or allocated to individuals by such eligible recipients are
not used for—</text>
<paragraph id="idc90b0fd440404ed8be6e0c81fc632463"><enum>(1)</enum><text>political
activities;</text>
</paragraph><paragraph id="id185efebbea544253920bb258a80fcbb1"><enum>(2)</enum><text>advocacy;</text>
</paragraph><paragraph id="id0715435cf11a481280fb857cb6c42e44"><enum>(3)</enum><text>lobbying, whether
directly or through other parties;</text>
</paragraph><paragraph id="idD60638270DC94B4C85A72165F0F349E5"><enum>(4)</enum><text>influencing the
selection, nomination, election, or appointment of one or more candidates to
any Federal, State or local office;</text>
</paragraph><paragraph id="idF73FF08CFBFF4A8792D5C47A77727C80"><enum>(5)</enum><text>personal
counseling services;</text>
</paragraph><paragraph id="id0E6438FD9EB543ECAF2B89A9AC8002D3"><enum>(6)</enum><text>travel expenses;
and</text>
</paragraph><paragraph id="idB69F8EDEEBE247ADAE7C2CF5D0FAC42D"><enum>(7)</enum><text>preparing or
providing advice on tax returns.</text>
</paragraph></subsection><subsection id="id78198F2C8AF2465BB26979EFA8AA0CC6"><enum>(c)</enum><header>Penalties</header>
<paragraph id="id70212E376BA74518998361E31E39D17D"><enum>(1)</enum><header>Civil money
penalty</header><text>If an eligible recipient or any other individual in
receipt of grant amounts described by this section violates any provision of
subsection (a) or (b), the Secretary of Housing and Urban Development or the
Secretary of the Treasury, as the case may be, may impose a civil penalty on
such recipient or individual, as the case may be, of not more than $1,000,000
for each violation.</text>
</paragraph><paragraph id="idE302978D731940A8A86666AAF5F2A099"><enum>(2)</enum><header>Criminal
penalties</header><text>Whoever, being subject to the provisions of subsection
(a) or (b), knowingly participates, directly or indirectly, in any manner in
conduct that results in a violation of such provisions shall, notwithstanding
<external-xref legal-doc="usc" parsable-cite="usc/18/3571">section 3571</external-xref> of title 18, United States Code, be fined not more than $1,000,000
for each violation, imprisoned for not more than 5 years, or both.</text>
</paragraph><paragraph id="id20B5976AA793468E85865D880211DA76"><enum>(3)</enum><header>Rule of
construction</header><text>The penalties imposed under paragraphs (1) or (2)
shall be in addition to any other available civil remedy or any other available
criminal penalty and may be imposed whether or not the Secretary of Housing and
Urban Development or the Secretary of the Treasury, as the case may be, imposes
other administrative sanctions.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6E6FC631AC814147946F11D2B2416C0A"><enum>(d)</enum><header>Definition</header><text>As
used in this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id2AA46044927C413CA79461028B44646E"><enum>(1)</enum><text>the term
<quote>covered grantee</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB9E871ADC3DB4718A2394C1A19812BD6"><enum>(A)</enum><text>for purposes of
the Housing Trust Fund, a State or State designated entity; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id632E2777D439404B9D6F63C89422825D"><enum>(B)</enum><text>for purposes of
the Capital Magnet Fund, an eligible grantee as described under section 1339(e)
of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id780CBC2BB75E4A05AF5708C0641F7232"><enum>(2)</enum><text>the term
<quote>eligible recipient</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id92764EE82816422F93AAB351E62ECC90"><enum>(A)</enum><text>for purposes of
the Housing Trust Fund, a recipient as described under section 1338(c)(9) of
the Federal Housing Enterprises Financial Safety and Soundness Act of 1992t;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCF066450ED9C4EAEB76C0E7CEDC7E7BF"><enum>(B)</enum><text>for purposes of
the Capital Magnet Fund, a recipient of assistance from the Capital Magnet
Fund;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7EBC6D118E5443AAB4CBEFEEE42BB10A"><enum>(3)</enum><text>the term
<quote>Capital Magnet Fund</quote> means 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>); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id04BAE9B616554A8CAB4619AC8177B16A"><enum>(4)</enum><text>the term
<quote>Housing Trust Fund</quote> means the Housing Trust Fund established
under section 1338 of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>).</text>
</paragraph></subsection></section><enum>V</enum><header>Wind
Down of Fannie Mae and Freddie Mac</header>
<section id="idA2398E8DDA5B4D3CAF754E50526404AA"><enum>501.</enum><header>Repeal of GSE
charters</header>
<subsection id="idECB8A4E3560B4A1F81DADEB3DD0ACB89"><enum>(a)</enum><header>Fannie
Mae</header><text>Effective on the FMIC certification date, the charter of the
Federal National Mortgage Association is repealed and the Federal National
Mortgage Association shall have no authority to conduct new business under such
charter, except that the provisions of such charter in effect immediately
before such repeal shall continue to apply with respect to the rights and
obligations of any holders of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5B14908C23B340319426AFE549F5D42C"><enum>(1)</enum><text>outstanding debt
obligations of the Federal National Mortgage Association, including any—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id58360A1AAB8C41C1ABBD8CECFE2AE124"><enum>(A)</enum><text>bonds,
debentures, notes, or other similar instruments;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id98886630786E4F41968557AD143E9AF0"><enum>(B)</enum><text>capital lease
obligations; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id73773C872A7C4F278F0FCA524F6424F8"><enum>(C)</enum><text>obligations in
respect of letters of credit, bankers' acceptances, or other similar
instruments; or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id40F69AEC981D463BB5F16B060E33FBBA"><enum>(2)</enum><text>mortgage-backed
securities guaranteed by the Federal National Mortgage Association.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idBEB6186311384D4185CDF99E1EF7A251"><enum>(b)</enum><header>Freddie
Mac</header><text>Effective on the FMIC certification date, the charter of the
Federal Home Loan Mortgage Corporation is repealed and the Federal Home Loan
Mortgage Corporation shall have no authority to conduct new business under such
charter, except that the provisions of such charter in effect immediately
before such repeal shall continue to apply with respect to the rights and
obligations of any holders of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id0227C7128FC044E5BC02B2527C0BCA12"><enum>(1)</enum><text>outstanding debt
obligations of the Federal Home Loan Mortgage Corporation, including
any—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id99590B16E7DE430E979D552524E32737"><enum>(A)</enum><text>bonds,
debentures, notes, or other similar instruments;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id89EFAA41551D4F53BEC42C0B3B0A1AC3"><enum>(B)</enum><text>capital lease
obligations; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id87A3B2A6766747ADBB81FD81348E95EF"><enum>(C)</enum><text>obligations in
respect of letters of credit, bankers' acceptances, or other similar
instruments; or</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA47D336CA89D4BEBA82F5F79A84D4E6D"><enum>(2)</enum><text>mortgage-backed
securities guaranteed by the Federal Home Loan Mortgage Corporation.</text>
</paragraph></subsection><subsection id="id3FA2FC703D5D41CEAEFE6B255D306F22"><enum>(c)</enum><header>Existing
guarantee obligations</header>
<paragraph id="id4F02887CAB664ED0A8B813CE43E5FD29"><enum>(1)</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 subsections (a) and (b).</text>
</paragraph><paragraph id="idE49BC48BF5424B39A44BCA15B3E9CB19"><enum>(2)</enum><header>Continued
dividend payments</header><text>Notwithstanding section 502 or any other
provision of law, and subject to section 601, provision 2(a) (relating to
Dividend Payment Dates and Dividend Periods) and provision 2(c) (relating to
Dividend Rates and Dividend Amount) of the Senior Preferred Stock Purchase
Agreement, or any provision of any certificate in connection with such
Agreement creating or designating the terms, powers, preferences, privileges,
limitations, or any other conditions of the Variable Liquidation Preference
Senior Preferred Stock of an enterprise issued pursuant to such
Agreement—</text>
<subparagraph id="id6B37FD97CC1246AAB47072B9FC35AA17"><enum>(A)</enum><text>shall not be
amended, restated, or otherwise changed to reduce the rate or amount of
dividends in effect pursuant to such Agreement as of the Third Amendment to
such Agreement dated August 17, 2012, except that any amendment to such
Agreement to facilitate the sale of assets of the enterprises to facilitate
compliance with the provisions of section 502(b) shall be permitted; and</text>
</subparagraph><subparagraph id="id5AC00366102344F887F4D7A095420407"><enum>(B)</enum><text>shall remain in
effect until the guarantee obligations described under subsections (a)(2) and
(b)(2) are fully extinguished.</text>
</subparagraph></paragraph><paragraph id="id702E179DACA4416883EB6AD1709BDC4B"><enum>(3)</enum><header>Applicability</header><text>Notwithstanding
section 502, all guarantee fee amounts derived from the single-family mortgage
guarantee business of the enterprises in existence as of the FMIC certification
date shall be subject to the terms of the Senior Preferred Stock Purchase
Agreement.</text>
</paragraph></subsection><subsection commented="no" id="id0a9de51e1ec040fa94838ebbdac0c6a6"><enum>(d)</enum><header>Federal Safety
and Soundness Act</header>
<paragraph commented="no" id="idDEF7D6DA32C3496A975D24A592320FBD"><enum>(1)</enum><header>In
general</header><text>The Federal Housing Enterprises Financial Safety and
Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4501">12 U.S.C. 4501 et seq.</external-xref>) is amended—</text>
<subparagraph commented="no" id="id73a6a97c37d74083ad136e3e15f22aca"><enum>(A)</enum><text>in section
1303—</text>
<clause commented="no" id="idFAF62F2DF5D648B2AD4DC619D7955B1B"><enum>(i)</enum><text>in paragraph (2),
by striking <quote>'Federal Housing Finance Agency</quote> and inserting
<quote>Federal Mortgage Insurance Corporation</quote>;</text>
</clause><clause commented="no" id="idF14BAFD8BA6547098FC738A8DEA28273"><enum>(ii)</enum><text>in paragraph
(3), by striking <quote>means</quote> and all that follows through the period
at the end, and inserting <quote>means the Federal Home Loan Bank
Act.</quote>;</text>
</clause><clause commented="no" id="id835AC9F426BF490C865CEDDDD8620F46"><enum>(iii)</enum><text>by repealing
paragraph (4); and</text>
</clause><clause commented="no" id="idB810170383BA4A9786CDAEC2933F4484"><enum>(iv)</enum><text>in paragraph
(9), by striking <quote>Director of the Federal Housing Finance Agency</quote>
and inserting <quote>Board of Directors of the Federal Mortgage Insurance
Corporation</quote>;</text>
</clause></subparagraph><subparagraph commented="no" id="id90082F348AA941139358ACEA5AD701B5"><enum>(B)</enum><text>by repealing
section 1313A; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA776C63822D47DB9EC6D57F2256C15F"><enum>(C)</enum><text>by repealing
section 1317(d).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id734E45DD8EF041EE89B15953F94101EE"><enum>(2)</enum><header>Effective
date</header><text>The amendments made by paragraph (1) shall take effect on
the FMIC certification date.</text>
</paragraph></subsection></section><section id="id9363B8AE2784483F98DD333E01E2F157"><enum>502.</enum><header>Wind
down</header>
<subsection id="H6E64A529827147AEA1C5631228228E3C"><enum>(a)</enum><header>Wind
down</header>
<paragraph id="id7A6EC9193D42424786BDD09AE0477C37"><enum>(1)</enum><header>Authority of
FHFA</header><text display-inline="yes-display-inline">Beginning on the date of
enactment of this Act and ending on the FMIC certification date, the Director
of the Federal Housing Finance Agency, in consultation with the Corporation and
the Secretary of the Treasury, shall take such action, and may prescribe such
regulations and procedures, as may be necessary to wind down the operations of
the enterprises in an orderly manner that complies with the requirements of
this Act and any amendments made by this Act.</text>
</paragraph><paragraph id="id915C1DBCD5774FDF9CF2041208FBF084"><enum>(2)</enum><header>Limitation</header><text>Notwithstanding
any authority granted to the Director of the Federal Housing Finance Agency
under paragraph (1), the sale, transfer, exchange, or other disposition of any
asset subject to the wind down required under this section shall be prohibited,
if the Corporation—</text>
<subparagraph id="id736AB062BA7348ED85FDC30671A764C8"><enum>(A)</enum><text>in its discretion
determines that such sale, transfer, exchange, or disposition would materially
interfere with the ability of the Corporation to carry out the requirements of
this Act; and</text>
</subparagraph><subparagraph id="id3A5330C03B5141B988FBA1788B9B5E67"><enum>(B)</enum><text>notifies, in
writing, the Director of the Federal Housing Finance Agency within 14 days of
such determination.</text>
</subparagraph></paragraph><paragraph id="id3256AE224AF54E4DAAD6F09C53FA8E49"><enum>(3)</enum><header>Rule of
construction</header><text>Notwithstanding any authority granted to the
Director of the Federal Housing Finance Agency under paragraph (1), the
Director of the Federal Housing Finance Agency—</text>
<subparagraph id="idE5F882A7C6F2441EA82DEBE46D587BD4"><enum>(A)</enum><text>shall have no
authority to sell, transfer, exchange, or otherwise dispose of any guarantee
obligations described under subsections (a)(2) and (b)(2) of section 501;
and</text>
</subparagraph><subparagraph id="idAF1C9070F91449EFAE53C0D930C68678"><enum>(B)</enum><text>shall have no
rights, claims, or title to, nor any authority to sell, transfer, exchange, or
otherwise dispose of, guarantee fee amounts derived from the single-family
mortgage guarantee business of the enterprises in existence as of the FMIC
certification date.</text>
</subparagraph></paragraph></subsection><subsection id="H71F783420F634976BDED56289C9BF152"><enum>(b)</enum><header>Division of
assets and liabilities; authority To establish holding corporation and
dissolution trust fund</header><text>The action and procedures required under
subsection (a)—</text>
<paragraph id="H4698DB3965274036A3A29E1EED39B962"><enum>(1)</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 an enterprise,
including any infrastructure, property, including intellectual property,
platforms, or any other thing or object of value, provided such plan complies
with the requirements of this Act and any amendments made by this Act;
and</text>
</paragraph><paragraph id="H796D8691F962483EA97085FB3FDC10A9"><enum>(2)</enum><text display-inline="yes-display-inline">may provide for establishment of—</text>
<subparagraph id="H9E39F3197D7D4A76849BCCC0FB67F725"><enum>(A)</enum><text>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="H1565008A6DF043F2A2B7E42A101B39BA"><enum>(B)</enum><text>one or more trusts
to which to transfer—</text>
<clause id="H8D61CAFCBA8B4ED3BD9638F23E998ABF"><enum>(i)</enum><text>outstanding debt
obligations of an enterprise; or</text>
</clause><clause id="H00D936761DF8412487E4438BF2C51639"><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 commented="no" display-inline="no-display-inline" id="id80ED8B9EA323460AA5D0C8B9B265ED9E"><enum>(c)</enum><header>Recoupment by
senior preferred shareholders</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9B55D25052424034BB60DE8529454C4C"><enum>(1)</enum><header>In
general</header><text>Subject to the requirements of this Act, any proceeds
from the wind down of an enterprise shall be paid first to the senior preferred
shareholders of each such enterprise, then to the preferred shareholders of
each such enterprise, and then to the common shareholders of each such
enterprise.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD96A060927B84B5BBA3D5A8F5728D97B"><enum>(2)</enum><header>Joint
determination</header><text>The amount of any proceeds to be paid pursuant to
paragraph (1) shall be jointly determined by the Director of the Federal
Housing Finance Agency, the Corporation, and the Secretary of the
Treasury.</text>
</paragraph><paragraph commented="no" id="id7FB266F174594D5F929D9A0F480ADF53"><enum>(3)</enum><header>Maximum return
to shareholders</header><text>The wind down of each enterprise required under
this section shall be managed by the Director of the Federal Housing Finance
Agency, in consultation with the Corporation and the Secretary of the Treasury,
to obtain resolutions that maximize the return for the senior preferred
shareholders under paragraph (1), to the extent that such resolutions—</text>
<subparagraph commented="no" id="id7A1283CC5A84411093BEBEE3424C631C"><enum>(A)</enum><text>are consistent
with the goal of supporting a sound, stable, and liquid housing market;</text>
</subparagraph><subparagraph commented="no" id="idFED8816E0D2B49F690ACAA8B4307ADA6"><enum>(B)</enum><text>are consistent
with applicable Federal and State law;</text>
</subparagraph><subparagraph commented="no" id="idF997F27D37554AD48E6E78F9486F37A7"><enum>(C)</enum><text>comply with the
requirements of this Act and any amendments made by this Act; and</text>
</subparagraph><subparagraph commented="no" id="id04F1EB4BB7F94D93BAF81DAEAB922F2C"><enum>(D)</enum><text>protect the
taxpayer.</text>
</subparagraph></paragraph><paragraph commented="no" id="id027572DF8912440780D98D08B90BC30D"><enum>(4)</enum><header>Sale of certain
assets as a going concern</header><text>Except as provided in section 601 or
elsewhere as required in this Act, if the Director of the Federal Housing
Finance Agency, in consultation with the Corporation and the Secretary of the
Treasury, determines that the sale of any line of business, or any function,
activity, or service of an enterprise as a going concern will maximize the
return for the senior preferred shareholders as required under paragraph (3),
the Director may conduct such sale, provided that—</text>
<subparagraph commented="no" id="idFEF3C1D346E74F88946CD91328147950"><enum>(A)</enum><text>under no
circumstance, shall such sale transfer, convey, or authorize, or be deemed to
transfer, convey, or authorize, any guarantee or Federal support, assistance,
or backing, implicit or explicit, related to any such line of business,
function, activity, or service; and</text>
</subparagraph><subparagraph commented="no" id="id37BE29D7085841B19377E8ADDB872290"><enum>(B)</enum><text>such sale does
not impede or otherwise interfere with the ability of the Federal Mortgage
Insurance Corporation to carry out the functions and requirements of this
Act.</text>
</subparagraph></paragraph><paragraph commented="no" id="idF6BD6499427A4A4F97C4A6BDDA1283AE"><enum>(5)</enum><header>Rule of
construction</header><text>For purposes of this subsection, the term
<quote>proceeds</quote> does not include any guarantee fee amounts derived from
the single-family mortgage guarantee business of the enterprises in existence
as of the FMIC certification date.</text>
</paragraph></subsection></section><section id="H61ED645E819F434E8A7F9D215810F8F7"><enum>503.</enum><header>Aligning
purpose of conservatorship with FMIC</header>
<subsection id="id678DF562FD6F400AB18D995C3C024A70"><enum>(a)</enum><header>Power as
conservator</header><text display-inline="yes-display-inline">Section
1367(b)(2)(D) of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4617">12 U.S.C. 4617(b)(2)(D)</external-xref>) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id04413D0F2C804C1C90A077AE863CB287" style="OLC">
<subparagraph id="idFB409D2F4CEE4B81B77F9CF2F18427E3"><enum>(D)</enum><header>Power as
conservator</header><text>After the date of enactment of the
<short-title>Housing Finance Reform and Taxpayer
Protection Act of 2013</short-title> the Agency shall, as conservator, take
such actions as are necessary—</text>
<clause id="id8DF8BE55485A4CFAA2A72A7DC43498B5"><enum>(i)</enum><text>to ensure the
efficient, effective, and expeditious wind down of the enterprises;</text>
</clause><clause id="id36B06F898BEF49129152D3C568CFE12E"><enum>(ii)</enum><text>to manage the
affairs, assets, and obligations of the enterprises and to operate the
enterprises in compliance with the requirements of the
<short-title>Housing Finance Reform and Taxpayer
Protection Act of 2013</short-title>;</text>
</clause><clause id="id21F86827BA6C48E78618B93D27265ABA"><enum>(iii)</enum><text>to assist the
Federal Mortgage Insurance Corporation, in a consultative capacity, in carrying
out the requirements under the <short-title>Housing
Finance Reform and Taxpayer Protection Act of 2013</short-title>; and</text>
</clause><clause id="id1EF58CF64F63465FB5650320BA001B98"><enum>(iv)</enum><text>to maintain
liquidity and stability in the secondary mortgage market until such as time as
the charters of the enterprises are revoked pursuant to title V of such
Act.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idC8E9A2873B784B85AE00F5DEEB1A3494"><enum>(b)</enum><header>Rule of
construction</header><text>Nothing in this Act, or any amendments made by this
Act, except as may be explicitly provided for in this Act, or any amendment
made by this Act, shall be deemed to alter the powers, authorities, rights, and
duties that are vested in the Federal Housing Finance Agency and the Director
of the Federal Housing Finance Agency with respect to its supervision and
regulation of the enterprises.</text>
</subsection></section><section id="idFAE4330434BC489C959CB00A6F8D1B27"><enum>504.</enum><header>Conforming
loan limits</header>
<subsection id="id0C6BD9D0EEA5425A9BC2DCBF8357A84A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Beginning on the date
of enactment of this Act, the limitations governing the maximum original
principal obligation of conventional mortgages that may be purchased by the
Federal National Mortgage Association and the Federal Home Loan Mortgage
Corporation, referred to in section 302(b)(2) of the Federal National Mortgage
Association Charter Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(b)(2)</external-xref>) and section 305(a)(2) 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>),
respectively, shall not exceed $417,000 for a mortgage secured by a
single-family residence, $533,850 for a mortgage secured by a 2-family
residence, $645,300 for a mortgage secured by a 3-family residence, and
$801,950 for a mortgage secured by a 4-family residence, except that such
maximum limitations shall be adjusted effective January 1 of each year
beginning after the date of enactment of this Act, subject to the limitations
in this paragraph. Each adjustment shall be made by adding to each such amount
(as it may have been previously adjusted) a percentage thereof equal to the
percentage increase, during the most recent 12-month or 4-quarter period ending
before the time of determining such annual adjustment, in the housing price
index maintained pursuant to section 1322 of the Federal Housing Enterprises
Financial Safety and Soundness Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/4542">12 U.S.C. 4542</external-xref>). If the change in
such house price index during the most recent 12-month or 4-quarter period
ending before the time of determining such annual adjustment is a decrease,
then no adjustment shall be made for the next year, and the next adjustment
shall take into account prior declines in the house price index, so that any
adjustment shall reflect the net change in the house price index since the last
adjustment. Declines in the house price index shall be accumulated and then
reduce increases until subsequent increases exceed prior declines.</text>
</subsection><subsection id="id42E3CEC8B6CF4F22AEAF61EEECB8F5AC"><enum>(b)</enum><header>Special
exception for Alaska, Hawaii, Guam, and USVI</header><text>The limitations set
forth under subsection (a) shall be increased by not to exceed 50 per centum
with respect to properties located in Alaska, Guam, Hawaii, and the Virgin
Islands.</text>
</subsection><subsection id="idE000AFB626194B078D5AF50951A6F6ED"><enum>(c)</enum><header>High-Cost area
limit</header><text>The limitations set forth under subsection (a) shall also
be increased, with respect to properties of a particular size located in any
area for which 115 percent of the median house price for such size residence
exceeds the limitation under subsection (a) for such size residence—</text>
<paragraph id="id65754D68286B4942A6537A85B7366DD9"><enum>(1)</enum><text>for the first
year following the date of enactment of this Act, to the lesser of 150 percent
of such limitation for such size residence or the amount that is equal to 115
percent of the median house price in such area for such size residence;</text>
</paragraph><paragraph id="id3D3030EC4D164B09B44A116F2D96CE36"><enum>(2)</enum><text>for the second
year following the date of enactment of this Act, to the lesser of 145 percent
of such limitation for such size residence or the amount that is equal to 115
percent of the median house price in such area for such size residence;</text>
</paragraph><paragraph id="id0F9C4CDB34C74471B8B61E0CA6EE8871"><enum>(3)</enum><text>for the third
year following the date of enactment of this Act, to the lesser of 135 percent
of such limitation for such size residence or the amount that is equal to 115
percent of the median house price in such area for such size residence;</text>
</paragraph><paragraph id="id10E699B0D7AF429FAF87DA70BD552F57"><enum>(4)</enum><text>for the fourth
year following the date of enactment of this Act, to the lesser of 130 percent
of such limitation for such size residence or the amount that is equal to 115
percent of the median house price in such area for such size residence;
and</text>
</paragraph><paragraph id="id75F32F6C9D514812BAB79BBD6716736D"><enum>(5)</enum><text>for the fifth
year following the date of enactment of this Act, and each year thereafter, to
the lesser of 125 percent of such limitation for such size residence or the
amount that is equal to 115 percent of the median house price in such area for
such size residence.</text>
</paragraph></subsection></section><section id="id4EE7C1899823489298554A56E15FB6A6"><enum>505.</enum><header>Portfolio
reduction</header>
<subsection id="idDAADD374E2C647F3AD366382D575BB3F"><enum>(a)</enum><header>Graduated
reduction</header>
<paragraph id="id2CFFE597E4DA4929B991DE9560E1B74B"><enum>(1)</enum><header>In
general</header><text>Each enterprise shall not own, as of any applicable date,
mortgage assets in excess of—</text>
<subparagraph id="id4517805D0A694035B6D7A538F6BB7EB2"><enum>(A)</enum><text>as of December
31, 2013, $552,500,000,000; and</text>
</subparagraph><subparagraph id="id7EAF1EB518BF4563AD525444876DF9C6"><enum>(B)</enum><text>on December 31 of
each year thereafter until the FMIC certification date, 85 percent of the
aggregate amount of the mortgage assets that the enterprise was permitted to
own as of December 31 of the immediately preceding calendar year.</text>
</subparagraph></paragraph><paragraph id="idA92105F336454B57914CD2FE66C5DD84"><enum>(2)</enum><header>Retained
portfolio to facilitate orderly wind down</header><text>On December 31 of the
year in which the FMIC certification date occurs, the Corporation shall
establish an allowable amount of enterprise owned mortgage assets in an amount
equal to the amount necessary to facilitate—</text>
<subparagraph id="id6734E9C39D0D4A279E9D66156CE82C7A"><enum>(A)</enum><text>the orderly wind
down of the enterprises; and</text>
</subparagraph><subparagraph id="id4227EC728A424E09887EDD32354375FA"><enum>(B)</enum><text>appropriate loss
mitigation on any legacy guarantees of the enterprises.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H921D8FA8B758413F95F45AAB680EFF3B"><enum>(b)</enum><header>Mortgage assets
defined</header><text>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><section id="id874AE73C620C46288EBE4B52CEDE9174"><enum>506.</enum><header>Repeal of
mandatory housing goals</header>
<subsection id="H4EB54D196FB24E20A9205210C0ABFC86"><enum>(a)</enum><header>Repeal of
housing goals</header><text display-inline="yes-display-inline">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="H42CE32CB2569430393F3B69DD3CCDFBB"><enum>(b)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">The Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4501
et seq.) is amended—</text>
<paragraph id="H229724B888844775AEA85CE0CB41648C"><enum>(1)</enum><text>in section
1303(28), by striking <quote>, and, for the purposes</quote> and all that
follows through <quote>designated disaster areas</quote>;</text>
</paragraph><paragraph id="H2A023D05AAE04E0B881A59ED395FDB13"><enum>(2)</enum><text>in section
1324(b)(1)(A), by striking clauses (i), (ii), and (iv);</text>
</paragraph><paragraph id="HE01689D905E04829B4F7694AF3F0939D"><enum>(3)</enum><text>in section
1341—</text>
<subparagraph id="HC9A348863CB4499781D01179C4239DDD"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="H9E79BFD1813E469D8133819EB878B75A"><enum>(i)</enum><text>in
paragraph (1), by inserting <quote>or</quote> after the semicolon at the
end;</text>
</clause><clause id="H426DB9675E1E4B4682AC009AC1A3F0C9"><enum>(ii)</enum><text>in
paragraph (2), by striking the semicolon at the end and inserting a period;
and</text>
</clause><clause id="HAA75076C5CD0457689003998D30AB81E"><enum>(iii)</enum><text>by
striking paragraphs (3) and (4); and</text>
</clause></subparagraph><subparagraph id="H780A5DE9AC9D4A7C8B11CC876739B871"><enum>(B)</enum><text>in subsection
(b)(2)—</text>
<clause id="H2B5D25BE942944EBA34797C3D8F91DF1"><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="HEC065F5731BE4FFEB3EB02F4ABB29CDD"><enum>(ii)</enum><text>by
striking subparagraphs (B) and (C); and</text>
</clause><clause id="H0466E42CAC1A4C2C8A14C4491BE778D2"><enum>(iii)</enum><text>by
redesignating subparagraph (D) as subparagraph (B);</text>
</clause></subparagraph></paragraph><paragraph id="H427463FAC76142B38CAE2F7517AD9884"><enum>(4)</enum><text>in section
1345(a)—</text>
<subparagraph id="HAE7E6E39A01945E0BC18DE0739EBA44A"><enum>(A)</enum><text>in paragraph (1),
by inserting <quote>or</quote> after the semicolon at the end;</text>
</subparagraph><subparagraph id="H494B26513B6248AA804B269472E76B14"><enum>(B)</enum><text>in paragraph (2),
by striking the semicolon at the end and inserting a period; and</text>
</subparagraph><subparagraph id="H98733FDA67014F85BEF3ACC94B3DFE82"><enum>(C)</enum><text>by striking
paragraphs (3) and (4); and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H64F44B89A31E46919FCA6774C1B273E6"><enum>(5)</enum><text>in section
1371(a)(2), 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></section><enum>VI</enum><header>Improvements to
functioning of housing market</header>
<section commented="no" display-inline="no-display-inline" id="id6EE62BE14B8D4547B5F115D301DEA333"><enum>601.</enum><header>Continuation
of multifamily business of the enterprises</header>
<subsection commented="no" display-inline="no-display-inline" id="id1C596570E95D41CE81B20902355B379C"><enum>(a)</enum><header>In
general</header><text>Notwithstanding any provision of title V, or any other
provision of law, effective on the FMIC certification date, all functions,
activities, infrastructure, property, including intellectual property,
platforms, or any other object or service of an enterprise relating to the
maintenance and operation of the multifamily guarantee business of an
enterprise shall be transferred, without cost, to the Corporation.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idB5FF872C3DF44BFBAF8089CC265978DD"><enum>(b)</enum><header>Authority of
Director</header><text>The Corporation is authorized, upon such terms and
conditions as it may deem appropriate, to guarantee the timely payment of
principal of and interest, on any mortgage on multifamily housing purchased by
the Corporation pursuant to the transfer of an enterprise's multifamily
guarantee business under subsection (a).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAD45499165F54555BAF545592F82A3BD"><enum>(c)</enum><header>Limitation on
ongoing operation of multifamily business</header><text>In carrying out the
multifamily guarantee business of an enterprise transferred pursuant to
subsection (a), the Corporation shall ensure that any such business continues
to operate, as applicable, consistent with—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3FA93A6CCF8F45FA8CA8D25EE175F48A"><enum>(1)</enum><text>the Delegated
Underwriting and Servicing Lender Program established by the Federal National
Mortgage Association; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5CBE9C9F39064C08B76AD951F0180ECF"><enum>(2)</enum><text>the Program Plus
Lender Program established by the Federal Home Loan Mortgage Corporation,
especially the Series K Structured Pass-Through Certificates offered by the
enterprise.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFD124DAEDE564C569F52DCDD2742E46A"><enum>(d)</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 guaranty—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE5368F7FE8554D65B67DEA519B7F094D"><enum>(1)</enum><text>issued by the
Corporation pursuant to this subsection; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6FAFBD6F9DA24F0BB790BB10629A4C0B"><enum>(2)</enum><text>obligation
assumed by the Corporation pursuant to the transfer of an enterprise's
multifamily guarantee business under subsection (a).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id77E1CC41C7F94D1B935CEDE1334CD816"><enum>(e)</enum><header>Guarantee
fee</header>
<paragraph commented="no" display-inline="no-display-inline" id="id2A13D316F3D94FD8BAED8B41C28DEA9E"><enum>(1)</enum><header>In
general</header><text>The Corporation shall collect a reasonable fee for any
guaranty under this subsection and shall make such charges as it may determine
to be reasonable for the analysis of any trust or other security arrangement
proposed by an issuer of a security backed by multifamily mortgages guaranteed
under this section.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB7CEFFA5EC8649A3BD9C97208707C379"><enum>(2)</enum><header>Deposit into
Mortgage Insurance Fund</header><text>Any guarantee fee amounts collected under
this subsection shall be deposited in the Mortgage Insurance Fund.</text>
</paragraph></subsection></section><section id="id34432223433E4989995D504E0117184F"><enum>602.</enum><header>Multiple
lender issues</header><text display-inline="no-display-inline">With respect to
the dwelling of a borrower that serves as security for an eligible mortgage, if
the borrower enters into any credit transaction that would result in the
creation of a new mortgage or other lien on such dwelling where the
loan-to-value ratio of such credit transaction amount is 80 percent or more,
the creditor of such new mortgage or other lien shall seek and obtain the
approval of the creditor of the senior eligible mortgage loan before any such
credit transaction becomes valid and enforceable.</text>
</section><section id="id341C6A6F88874A0CBADE2B4CC0B9A4E0"><enum>603.</enum><header>GAO report on
full privatization of secondary mortgage market</header>
<subsection id="id65291F82B197415D8AEBEFBD8EB36E72"><enum>(a)</enum><header>GAO
report</header><text display-inline="yes-display-inline">Not later than 8 years
after the date of enactment of this Act, the Comptroller General of the United
States shall submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives on the feasibility of maintaining a fully privatized secondary
mortgage market, including recommendations on how to best carry out any
displacement of the insurance model established under this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id126D3E828C3E4BDCBBAB19D156310F90"><enum>(b)</enum><header>Corporation
plan To transition to a fully private secondary mortgage market</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8CDB749430D444BAA0D1F92E033C2816"><enum>(1)</enum><header>Required
submission to Congress</header><text display-inline="yes-display-inline">Not
later than 6 months after the date on which the report required under
subsection (a) is submitted, the Corporation shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a plan to transition to a
fully privatized secondary mortgage market.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id498F4D81D8104E7D9AE11F27FF08BACC"><enum>(2)</enum><header>Required
content of plan</header><text>The plan required to be submitted under paragraph
(1) shall describe, chronicle, and specify all the legislative, administrative,
and regulatory actions necessary to carry out a transition to a fully private
secondary mortgage market, including all actions necessary to dissolve the
Corporation and successfully displace the insurance model established under
this Act.</text>
</paragraph></subsection></section><enum>VII</enum><header>General
provisions</header>
<section id="id8bef406900a047bba4029626b37be647"><enum>701.</enum><header>Authority to
issue regulations</header><text display-inline="no-display-inline">The
Corporation may prescribe such regulations and issue such guidelines, orders,
requirements, or standards as are necessary to carry out this Act, or any
amendment made by this Act.</text>
</section><section id="id1A4B40B1F8294D3EACE8739BA29C2112"><enum>702.</enum><header>Fair value
accounting</header><text display-inline="no-display-inline">In any evaluation,
oversight, audit, or analysis by the Corporation of the cost of the Mortgage
Insurance Fund, the insurance or guarantee activities of the Corporation
required under this Act, including any fee or charge in connection with the
provision of such insurance or guarantee, or the financial transactions of the
Corporation, the Corporation shall conduct any such evaluation, oversight,
audit, or analysis based on the fair-value accrual accounting method.</text>
</section><section id="idFEDF31C025174474A80E480FAFA9E4D6"><enum>703.</enum><header>Rule of
construction</header><text display-inline="no-display-inline">Nothing in this
Act shall be construed to prohibit or otherwise restrict the ability of a
holder of any loss position in any covered security insured under this Act from
restructuring, retranching, or resecuritizing such position.</text>
</section><section id="id46020892162D4D55A25B2D324220838F"><enum>704.</enum><header>Severability</header><text display-inline="no-display-inline">If any provision of this Act or the
application of any provision of this Act to any person or circumstance, is held
invalid, the application of such provision to other persons or circumstances,
and the remainder of this Act, shall not be affected thereby.</text>
</section>