113 HR 5055 IH: Partnership to Strengthen Homeownership Act of 2014
U.S. House of Representatives
2014-07-10
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 Partnership to Strengthen Homeownership Act of 2014
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Title I—Ginnie Mae
Sec. 101. Removal from HUD; establishment as independent entity.
Sec. 102. Transfer to Ginnie Mae of powers, personnel, and property of FHFA.
Sec. 103. Regulation of market participants and aggregators.
Sec. 104. Regulatory consultation and coordination.
Title II—Securitization and insurance
Sec. 201. Issuing Platform.
Sec. 202. Insurance.
Sec. 203. Authority to protect taxpayers in unusual and exigent market conditions.
Sec. 204. Servicing rights; representations and warranties.
Sec. 205. Federal Home Loan Banks.
Title III—Wind down of Fannie Mae and Freddie Mac
Sec. 301. Limitation on business.
Sec. 302. Risk-sharing pilot programs.
Sec. 303. Continued conservatorship.
Sec. 304. Mandatory receivership.
Sec. 305. Repeal of enterprise charters.
Sec. 306. Ginnie Mae authority regarding timing.
Title IV—Multifamily housing finance
Sec. 401. Establishment of multifamily subsidiaries.
Sec. 402. Disposition of multifamily businesses.
Sec. 403. Approval and supervision of multifamily guarantors.
Sec. 404. Other forms of multifamily risk-sharing.
Sec. 405. Ginnie Mae securitization of FHA risk-sharing loans.
Title V—Affordable Housing
Sec. 501. Affordable housing allocations.
Sec. 502. Housing Trust Fund.
Sec. 503. Capital Magnet Fund.
Sec. 504. Market Access Fund.
Title VI—General Provisions
Sec. 601. Rule of construction regarding Senior Preferred Stock Purchase Agreements.
Sec. 602. Treatment of community development financial institution.
2.For purposes of this Act:
(1)The term bank
and savings association
have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813).
(2)The term certification date
means the earlier of—
(A)the date on which Ginnie Mae makes the certification described under section 201(h); and
(B)the date that is the end of the 2-year period beginning on the date of the enactment of this Act.
(3)The term charter Act
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.).
(4)The term credit union
means any Federal credit union
or State credit union
, as such terms are defined under section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
(5)The term Director
means the Director of Ginnie Mae, as such position is established pursuant to the amendments made
by section 101(c)(1).
(6)The term eligible mortgage
—
(A)has the meaning given the term qualified mortgage
under section 129C(b)(2)(A) of the Truth in Lending Act (15 U.S.C. 1639c), as such meaning may be
adjusted by the Director if the Director determines such adjustment is
appropriate; and
(B)includes such other minimum standards as may be established by the Platform, to ensure the quality
of mortgages used to collateralize mortgage-backed securities issued by
the Platform.
(7)Eligible multifamily mortgage loanThe term eligible multifamily mortgage loan
means a commercial real estate loan—
(A)secured by a property with—
(i)5 or more residential units; or
(ii)2 or more residential units, if the requirement under clause (i) is waived by the Director for
purposes of carrying out a demonstration or pilot program;
(B)the primary source of repayment for which is expected to be derived from rental income generated by
the property;
(C)the term of which may not be less than 5 years but not more than 40 years;
(D)that satisfies any additional underwriting criteria established by the Director to balance
supporting access to capital with managing credit risk to the Fund,
including—
(i)a maximum loan-to-value ratio;
(ii)a minimum debt service coverage ratio; and
(iii)considerations for restrictive or special uses of a property, including non-residential uses,
properties for seniors, manufactured housing, and affordability
restrictions, and the impact of such uses on clauses (i) and (ii); and
(E)that satisfies any additional underwriting criteria that may be established by the Director.
(8)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.
(9)The term Fund
means the insurance fund established under section 202(g).
(10)The term Ginnie Mae
means the Government National Mortgage Association.
(11)The term market participant
means any insurance company, bank, saving association, credit union, or real estate investment
trust insuring or reinsuring any part of a security issued by the
Platform.
(12)The term participating aggregator
means an aggregator of eligible mortgages that collateralize mortgage-backed securities issued by
the Platform pursuant to title II.
(13)The term Platform
means the Issuing Platform established under section 201(a).
(14)Real estate investment trustThe term real estate investment trust
has the meaning given such term under section 856(a) of the Internal Revenue Code of 1986.
<enum>I</enum><header>Ginnie Mae</header>
<section id="H9BDE3BC0F51847B1A4AC035CC69A22CF"><enum>101.</enum><header>Removal from HUD; establishment as independent entity</header>
<subsection id="H49F0D7BC3CAA45E29CF1AD5E02B44F97"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 302(a) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1717">12 U.S.C. 1717(a)(2)</external-xref>) is amended by
striking <quote>in the Department of Housing and Urban Development</quote> and inserting <quote>independent of any other agency or office in the Federal Government</quote>.</text>
</subsection><subsection id="H5BF2E33A1F524A22B6CEB0E1C4C2BAD0"><enum>(b)</enum><header>Conforming amendments</header><text>Title III of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>) is amended—</text>
<paragraph id="HDD55F0E9E17A49C4A2B32FD70D7F32CF"><enum>(1)</enum><text>in section 306(g)(3)(D) (<external-xref legal-doc="usc" parsable-cite="usc/12/1721">12 U.S.C. 1721(g)(3)(D)</external-xref>), by striking <quote>Secretary</quote> and inserting <quote>Association</quote>;</text>
</paragraph><paragraph id="HA69CBD88847E4E69A9BFADDA00488ED3"><enum>(2)</enum><text>in section 307 (<external-xref legal-doc="usc" parsable-cite="usc/12/1722">12 U.S.C. 1722</external-xref>), by striking <quote>Secretary of Housing and Urban Development</quote> and inserting <quote>Association</quote>; and</text>
</paragraph><paragraph id="HDB0DE5CDC4E84B2E9B4539CEB63F6610"><enum>(3)</enum><text>in section 317 (<external-xref legal-doc="usc" parsable-cite="usc/12/1723i">12 U.S.C. 1723i</external-xref>)—</text>
<subparagraph id="H00CD4B3D763841DA830C6D068F87565A"><enum>(A)</enum><text>in subsection (a)(1), by striking <quote>Secretary of Housing and Urban Development</quote> and inserting <quote>Director of the Association</quote>;</text>
</subparagraph><subparagraph id="HF49675D4C0FC4E9E96ACA73336E2585D"><enum>(B)</enum><text>in subsection (c)(4), by striking <quote>Secretary’s</quote> and inserting <quote>Director of the Association’s</quote>;</text>
</subparagraph><subparagraph id="H2634957AE8874179BE412F8326C8DC15"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (d)(1), by striking <quote>Secretary’s</quote> and inserting <quote>Director of the Association’s</quote>;</text>
</subparagraph><subparagraph id="H147B5D89D4504D93A0304D31F37876D4"><enum>(D)</enum><text>in the heading for subsection (f), by striking <quote><header-in-text level="subsection" style="OLC">by Secretary</header-in-text></quote>; and</text>
</subparagraph><subparagraph id="H6C697DD8A9554C979403B5E381E4ABD9"><enum>(E)</enum><text>by striking <quote>Secretary</quote> each place such term appears and inserting <quote>Director of the Association</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HA5A65F4879CE4465B63767C86D86E06A"><enum>(c)</enum><header>Management; Director</header>
<paragraph id="H963210660B2F4330BE3D20D7551A8F61"><enum>(1)</enum><header>Independence and term</header><text display-inline="yes-display-inline">Subsection (a) of section 308 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723">12 U.S.C. 1723(a)</external-xref>) is amended—</text>
<subparagraph id="HDECE3537610F410793A81DFE8CA23CF2"><enum>(A)</enum><text>in the first sentence—</text>
<clause id="HF165323A927F4B7EA2EAA7EF30E60B1F"><enum>(i)</enum><text>by striking <quote>Secretary of Housing and Urban Development</quote> and inserting <quote>Director of the Association appointed pursuant to this subsection</quote>; and</text>
</clause><clause id="H64AEE87B8C764661A3997B86FDE0779A"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>of the Secretary</quote> and inserting <quote>of the Director</quote>;</text>
</clause></subparagraph><subparagraph id="HA59865D18703405F9920BF80AD61604C"><enum>(B)</enum><text>in the second sentence, by striking <quote>Secretary</quote> and inserting <quote>Director</quote>;</text>
</subparagraph><subparagraph id="H2887B805C2614ADA883C8D60F339F54A"><enum>(C)</enum><text>in the third sentence—</text>
<clause id="H28B892AF1D384FBEABFCD7CBABD5EA73"><enum>(i)</enum><text>by striking <quote>in the Department of Housing and Urban Development</quote>; and</text>
</clause><clause id="H1BC55E159A97420380D872F8AFD5A205"><enum>(ii)</enum><text>by inserting before the period at the end the following: <quote>, and shall be appointed for a term of 5 years, unless removed before the end of such term for
cause by the President</quote>;</text>
</clause></subparagraph><subparagraph id="HAA41879495EC46C298E1EF948958D45A"><enum>(D)</enum><text>in the last sentence, by striking <quote>Secretary</quote> and inserting <quote>Director</quote>; and</text>
</subparagraph><subparagraph id="HFD9E2996B8BD4363A0A699316FF48E43"><enum>(E)</enum><text>by adding at the end the following undesignated paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HADC2F3F28640438EA8CB39835B94EE0D" style="OLC">
<subsection id="H4B68F6FB1BA9434D80C212327AEEDF46"><enum></enum><text display-inline="yes-display-inline">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. 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 another
individual, 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. An
individual may serve as the Director after the expiration of the term for
which appointed until a successor has been appointed or confirmed.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HE9F90F53AE4E4DB29A62A9782568C783"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5315">Section 5315</external-xref> of title 5, United States Code, is amended, in the item relating to the President of
the Government National Mortgage Association, by striking <quote>. Department of Housing and Urban Development</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5274B26495864213B1D32A5BA843D22E"><enum>(d)</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="HFBCEAD52A6DA436E8520798060B471FA"><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="HDB537320E0E94EC79F73C47FB12DD562" style="OLC">
<subparagraph commented="no" id="H5EB93E982AC84179A9A3989A19AB71CF"><enum>(E)</enum><text>the Government National Mortgage Association, with respect to—</text>
<clause commented="no" id="H636463663F9F489197FFC8175B95D668"><enum>(i)</enum><text>the Mortgage Insurance Fund established under section 202(g) of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>; and</text>
</clause><clause commented="no" id="HCECBA9E1D0094A0C90F53595B301A3E9"><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="H73D26E3E669B4FE584106FB29BE4EB4B"><enum>(2)</enum><text>in section 111(b)(1)(H), by striking <quote>Director of the Federal Housing Finance Agency</quote> and inserting <quote>Director of the Government National Mortgage Association</quote>.</text>
</paragraph></subsection><subsection id="H58BC857BFD564F1DAC968E67185B9894"><enum>(e)</enum><header>Personnel</header><text>Subsection (d) of section 309 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1723a">12 U.S.C. 1723a(d)</external-xref>) is amended by
striking <quote>(d)(1)</quote> and all that follows through the end of paragraph (1) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H0A7E80B96E98476283AA94ABE3130D77" style="OLC">
<subsection id="H6511255F8EBE407CA537568B17D7851B"><enum>(d)</enum><header>Personnel</header>
<paragraph id="H200C53FC19844267BC11A25F92D3B984"><enum>(1)</enum><header>Ginnie Mae</header>
<subparagraph id="H9F04198160C04641B6547ED6176C5453"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Director of the Association may appoint and fix the compensation of such officers and employees
of the Association as the Director considers necessary to carry out the
functions of the Association. Officers and employees may be paid without
regard to the provisions of chapter 51 and subchapter III of chapter 53 of
title 5, United States Code, relating to classification and General
Schedule pay rates.</text>
</subparagraph><subparagraph id="HDF7EB7FFFDE9473694C44A16F8786F69"><enum>(B)</enum><header>Development of human resources</header><text display-inline="yes-display-inline">In carrying out this subsection, Ginnie Mae shall appoint and develop human capital (which shall
have such meaning as determined by Ginnie Mae, in consultation with the
Board of Governors of the Federal Reserve, taking into consideration
differences between the banking and insurance industries) necessary to
ensure that it possesses sufficient expertise regarding the insurance
industry and insurance issues.</text>
</subparagraph><subparagraph id="HF35BBD22BDA94D9C8FA10C65DB44FCBE"><enum>(C)</enum><header>Comparability of compensation with federal banking agencies</header><text>In fixing and directing compensation under subparagraph (A), the Director of the Association shall
consult with, and maintain comparability with, compensation of officers
and employees of the Office of the Comptroller of the Currency, the Board
of Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation.</text>
</subparagraph><subparagraph id="H9096127554E548D0AB06D754677F8818"><enum>(D)</enum><header>Personnel of other federal agencies</header><text>In carrying out the duties of the Association, the Director of the Association may use information,
services, staff, and facilities of any executive agency, independent
agency, or department on a reimbursable basis, with the consent of such
agency or department.</text>
</subparagraph><subparagraph id="H2EBD4E18DAD642F1ADD5CDBF9A3A7554"><enum>(E)</enum><header>Outside experts and consultants</header><text>Notwithstanding any provision of law limiting pay or compensation, the Director of the Association
may appoint and compensate such outside experts and consultants as such
Director determines necessary to assist the work of the Association.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H32EF41A8C6574F038A1A787D439737B2"><enum>(f)</enum><header>Transitional provision</header><text display-inline="yes-display-inline">Notwithstanding this section and the amendments made by this section, during the period beginning
on the date of the enactment of this Act, and ending on the date on which
the Director of the Government National Mortgage Association is appointed
and confirmed pursuant to section 308 of the National Housing Act, as
amended by this section, the person serving as the President of the
Government National Mortgage Association on that effective date shall act
for all purposes as, and with the full powers of, the Director of the
Association.</text>
</subsection><subsection id="HC750939F5F724E8FB222B7EAA3F2B4CF"><enum>(g)</enum><header>References</header><text display-inline="yes-display-inline">On and after the date of the enactment of this Act, any reference in Federal law to the President
of the Government National Mortgage Association or to such Association
shall be deemed to be a reference to such Director of such Association or
to such Association, as appropriate, as organized pursuant to this
subsection and the amendments made by this section.</text>
</subsection></section><section id="H6FD35E01ED3F44B2B5B876342927EFCA"><enum>102.</enum><header>Transfer to Ginnie Mae of powers, personnel, and property of FHFA</header>
<subsection display-inline="no-display-inline" id="H81A077C6F8CD4D6880001A2545CEEEB3"><enum>(a)</enum><header>Powers and duties transferred</header>
<paragraph id="H63A8AAA39CA4493C8B630579B4B766ED"><enum>(1)</enum><header>Federal Home Loan Bank functions transferred</header>
<subparagraph id="H82C34F0764E94EFA82AB23FC66D8BF81"><enum>(A)</enum><header>Transfer of functions</header><text display-inline="yes-display-inline">There are transferred to Ginnie Mae and the Director of Ginnie Mae all functions of the Federal
Housing Finance Agency and the Director of the Federal Housing Finance
Agency, respectively.</text>
</subparagraph><subparagraph id="HB146E0005B0B4AE5909617F11775471F"><enum>(B)</enum><header>Powers, authorities, rights, and duties</header><text display-inline="yes-display-inline">Ginnie Mae and the Director of Ginnie Mae 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, respectively, including
all conservatorship or receivership authorities, on the day before the
transfer date in connection with the functions and authorities transferred
under subparagraph (A).</text>
</subparagraph><subparagraph id="HFD6D2A08039843FEA09F0CD0F60A851D"><enum>(C)</enum><header>Transfer date</header><text display-inline="yes-display-inline">The transfer of functions under this paragraph shall take effect upon the expiration of the 6-month
period beginning on the date of the enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="H9E0A86EB32074C43850D7C1B39A3A4B4"><enum>(2)</enum><header>Continuation and coordination of certain actions</header>
<subparagraph id="HBBF50B23DF3342A78C63C3431AE9C7B1"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">All regulations, orders, determinations, and resolutions described under subparagraph (B) shall
remain in effect according to the terms of such regulations, orders,
determinations, and resolutions, and shall be enforceable by or against
Ginnie Mae until modified, terminated, set aside, or superseded in
accordance with applicable law by Ginnie Mae, any court of competent
jurisdiction, or operation of law.</text>
</subparagraph><subparagraph id="H3073CE905E824194AEE544A083A85535"><enum>(B)</enum><header>Applicability</header><text>A regulation, order, determination, or resolution is described under this subparagraph if it—</text>
<clause id="H3AD9B14A0E3442A69EEB7299BDD05D14"><enum>(i)</enum><text>was issued, made, prescribed, or allowed to become effective by—</text>
<subclause id="H40E69FC9E5024300B85237EFA78377AC"><enum>(I)</enum><text>the Federal Housing Finance Agency; or</text>
</subclause><subclause id="H3F86239ABD6E4BA7872D63BC40951E8A"><enum>(II)</enum><text>a court of competent jurisdiction, and relates to functions transferred by this subsection;</text>
</subclause></clause><clause id="H2E9E3430F94E45CA9AC3CE855A7B8D36"><enum>(ii)</enum><text>relates to the performance of functions that are transferred by this subsection; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H91BE1EE13D4E40B7A10D5895B25D5526"><enum>(iii)</enum><text>is in effect on the transfer date under paragraph (1)(C).</text>
</clause></subparagraph></paragraph><paragraph id="HF59C8CB612674630BE48662908868812"><enum>(3)</enum><header>Disposition of affairs</header><text>During the period preceding the transfer date under paragraph (1)(C), 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>
<subparagraph id="H5CB5B2BD40C04B56BD0B3FDCDC583F05"><enum>(A)</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 such transfer date; and</text>
</subparagraph><subparagraph id="H260D9827C27844ADB188292CCF813FC1"><enum>(B)</enum><text>may take any other action necessary for the purpose of winding up the affairs of the Office.</text>
</subparagraph></paragraph><paragraph id="HBB50FAFDBBBC4E2C81097443E9073274"><enum>(4)</enum><header>Use of property and services</header>
<subparagraph id="H9C34A15C55284545A42AC024BD5546F6"><enum>(A)</enum><header>Property</header><text display-inline="yes-display-inline">Ginnie Mae may use the property and services of the Federal Housing Finance Agency to perform
functions which have been transferred to Ginnie Mae until such time as the
Agency is abolished under subsection (c) to facilitate the orderly
transfer of functions transferred under this subsection, any other
provision of this Act, or any amendment made by this Act to any other
provision of law.</text>
</subparagraph><subparagraph id="H21538420FF074940A4329E635A666EAD"><enum>(B)</enum><header>Agency services</header><text display-inline="yes-display-inline">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 Ginnie Mae shall—</text>
<clause id="HF7CB92FD474F4C60801991E6D0E705F1"><enum>(i)</enum><text>continue to provide such services, on a reimbursable basis, until the transfer of such functions is
complete; and</text>
</clause><clause id="HFA4A4028C64340F29B580C8962D0F5E4"><enum>(ii)</enum><text>consult with any such agency to coordinate and facilitate a prompt and reasonable transition.</text>
</clause></subparagraph></paragraph><paragraph id="H2293B34F8BDE461B84D44A465554BF0A"><enum>(5)</enum><header>Continuation of services</header><text display-inline="yes-display-inline">Ginnie Mae 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 Ginnie Mae for such time as is reasonable to facilitate the
orderly transfer of functions pursuant to this subsection, any other
provision of this Act, or any amendment made by this Act to any other
provision of law.</text>
</paragraph><paragraph id="HF6882056AB4D43EB858712226B44268E"><enum>(6)</enum><header>Savings provisions</header>
<subparagraph id="H9D8818245EC9439C9A2F4D67278AE491"><enum>(A)</enum><header>Existing rights, duties, and obligations not affected</header><text>Paragraph (1) and subsection (c) 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 the transfer date under paragraph (1)(C).</text>
</subparagraph><subparagraph id="HEAE5D5AFCABD439A8F51D990D1C19481"><enum>(B)</enum><header>Continuation of suits</header><text display-inline="yes-display-inline">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 Ginnie Mae
under this subsection shall abate by reason of the enactment of this Act,
except that Ginnie Mae shall be substituted for the Director of the
Federal Housing Finance Agency as a party to any such action or
proceeding.</text>
</subparagraph></paragraph></subsection><subsection id="H028449D9DEFA4CA3AAAA64C86CB5C1E4"><enum>(b)</enum><header>Transfer and rights of employees of FHFA</header>
<paragraph id="H436A0A25492D432F936583947C9465D8"><enum>(1)</enum><header>Transfer</header><text display-inline="yes-display-inline">Each employee of the Federal Housing Finance Agency that is employed in connection with functions
that are transferred to Ginnie Mae under subsection (a) shall be
transferred to Ginnie Mae for employment, not later than the transfer date
under subsection (a)(1)(C), 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>
</paragraph><paragraph id="H4CAEC90085154BDEB11ADB5649DA9037"><enum>(2)</enum><header>Status of employees</header><text display-inline="yes-display-inline">The transfer of functions under this section, and the abolishment of the Federal Housing Finance
Agency under subsection (c), 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>
</paragraph><paragraph id="H08A7C3AA7FE043449C0648AB5B852D06"><enum>(3)</enum><header>Guaranteed positions</header><text>Each employee transferred under paragraph (1) shall be guaranteed a position with the same status,
tenure, grade, and pay as that held on the day immediately preceding the
transfer.</text>
</paragraph><paragraph id="HA8CDE8F300EE44E3BC519B2D74A20B97"><enum>(4)</enum><header>Appointment authority for excepted employees</header>
<subparagraph id="HE86300EFCCFD4EB5AB5400972C5897BD"><enum>(A)</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
subparagraph (B).</text>
</subparagraph><subparagraph id="H3570BC6489234B82B655CE58E9DB2FC4"><enum>(B)</enum><header>Decline of transfer</header><text display-inline="yes-display-inline">Ginnie Mae may decline a transfer of authority under subparagraph (A), 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>
</subparagraph></paragraph><paragraph id="H102F4675412945F3AADC7DDE0DBD773E"><enum>(5)</enum><header>Reorganization</header><text display-inline="yes-display-inline">If Ginnie Mae determines, after the end of the 1-year period beginning on the transfer date under
subsection (a)(1)(C), 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>
</paragraph><paragraph id="H8810F3301E7549C5AE90E1AF763E99F2"><enum>(6)</enum><header>Employee benefit programs</header>
<subparagraph id="HE984238A64C24640950B2358C71EEC5C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Any employee of the Federal Housing Finance Agency accepting employment with Ginnie Mae as a result
of a transfer under paragraph (1) may retain, for 12 months after the date
on which such transfer occurs, membership in any employee benefit program
of the Agency or Ginnie Mae, as applicable, including insurance, to which
such employee belongs on the transfer date under subsection (a)(1)(C) if—</text>
<clause id="HE990624716124AE9BBDD095F81C6418C"><enum>(i)</enum><text>the employee does not elect to give up the benefit or membership in the program; and</text>
</clause><clause id="H03CFFD510D6A48F28CAC31F90C0A0E18"><enum>(ii)</enum><text display-inline="yes-display-inline">the benefit or program is continued by Ginnie Mae.</text>
</clause></subparagraph><subparagraph id="H2DB21F11ADAA434499B44909E95F7B2E"><enum>(B)</enum><header>Cost differential</header>
<clause id="HF902079762D641BD99BCE4A84915D4CD"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The difference in the costs between the benefits which would have been provided by the Federal
Housing Finance Agency and those provided by this subsection shall be paid
by Ginnie Mae.</text>
</clause><clause id="H1D04ACFFBC2B4A2682B4160F52571EBE"><enum>(ii)</enum><header>Health Insurance</header><text display-inline="yes-display-inline">If any employee elects to give up membership in a health insurance program or the health insurance
program is not continued by Ginnie Mae, 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>
</clause></subparagraph></paragraph></subsection><subsection id="H752EEF8E004E4141A2541EEFF6473B34"><enum>(c)</enum><header>Abolishment of FHFA</header><text>Effective upon the transfer date under subsection (a)(1)(C), the Federal Housing Finance Agency and
the position of the Director of the Federal Housing Finance Agency are
abolished.</text>
</subsection><subsection id="HBA5E875BEB5140068A892D0C405C224B"><enum>(d)</enum><header>Transfer of property and facilities</header><text display-inline="yes-display-inline">Effective upon the transfer date under subsection (a)(1)(C), all property of the Federal Housing
Finance Agency shall transfer to Ginnie Mae.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H6F2910A175D949F389C20DFE625A7EB8"><enum>(e)</enum><header>References in Federal law</header><text display-inline="yes-display-inline">On and after the transfer date under subsection (a)(1)(C), 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 subsection (a), shall be deemed a reference to the
Director of the Government National Mortgage Association or the Government
National Mortgage Association, as appropriate and consistent with the
amendments made by this Act.</text>
</subsection></section><section id="H508BC42BE374492793A059B1EF0EBB7A"><enum>103.</enum><header>Regulation of market participants and aggregators</header>
<subsection id="H3B6DAF217987463CA02C0938A3FDC0C5"><enum>(a)</enum><header>Approval authority</header><text display-inline="yes-display-inline">The Platform shall be available for use only by originators and aggregators of mortgages who meet
standards for eligibility for such use, as shall be established by the
Director of Ginnie Mae (in this section referred to as the <quote>Director</quote>).</text>
</subsection><subsection id="HE57FD379C03F4A94B574D62E9A60436F"><enum>(b)</enum><header>General supervisory and regulatory authority</header><text display-inline="yes-display-inline">Pursuant to the authority under subsection (a):</text>
<paragraph id="HFC445605D06F4878A56318C0081C187B"><enum>(1)</enum><header>In general</header><text>All market participants and participating aggregators shall, to the extent provided in this
section, be subject to the supervision and regulation of the Director.</text>
</paragraph><paragraph commented="no" id="H3E13A293910A421997700A4F7656C155"><enum>(2)</enum><header>Authority over market participants and participating aggregators</header><text display-inline="yes-display-inline">Ginnie Mae shall have general regulatory authority over each market participant and participating
aggregator and shall exercise such general regulatory authority to ensure
that the purposes of this section are carried out.</text>
</paragraph></subsection><subsection id="HF60E01E1E8414794AC931C8E2F17C982"><enum>(c)</enum><header>Principal duties</header><text display-inline="yes-display-inline">Among the principal duties of the Director pursuant to subsection (b) shall be—</text>
<paragraph id="HDB5312AEC60848E0A9B6DDA232916337"><enum>(1)</enum><text>to oversee the prudential operations of each market participant and participating aggregator; and</text>
</paragraph><paragraph id="HFA9DAE62CFE44C51BF2C812C29C8B2F9"><enum>(2)</enum><text>to ensure that—</text>
<subparagraph id="H98A395D83F314E989E9C62B19DAA58C0"><enum>(A)</enum><text>each market participant and participating aggregator operates in a safe and sound manner, including
maintenance of adequate capital and internal controls; and</text>
</subparagraph><subparagraph id="HEC43097EE280416F9EB112B39293CDEA"><enum>(B)</enum><text>each market participant and participating aggregator complies with this section and the rules,
regulations, guidelines, and orders issued under this section.</text>
</subparagraph></paragraph></subsection><subsection id="H6BC8B3BC1A8C472B9F14E17BA4501169"><enum>(d)</enum><header>Prudential management and operations standards</header>
<paragraph id="H9B181D98F7774A96BE80D06289C17153"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Director shall establish prudential standards, by regulation or guideline, for market
participants and participating aggregators to—</text>
<subparagraph id="H16AEE5CB5E4B421D92E92A3205409EDD"><enum>(A)</enum><text>ensure—</text>
<clause id="H8FB6993BD4A1419DBA484EBB6A7B345F"><enum>(i)</enum><text>the safety and soundness of market participants and participating aggregators; and</text>
</clause><clause id="H1A446E5DE0D44D178F9637AAFD11C66A"><enum>(ii)</enum><text>the maintenance of approval standards by market participants and participating aggregators; and</text>
</clause></subparagraph><subparagraph id="HE144D99C74C347DDABE68970673DD229"><enum>(B)</enum><text display-inline="yes-display-inline">minimize the risk presented to the Fund.</text>
</subparagraph></paragraph><paragraph id="HC1502F011CF34F119191443B42B8FA7C"><enum>(2)</enum><header>Recognition of distinctions</header><text>In carrying out the requirement under paragraph (1), the Director shall distinguish between
prudential standards for market participants and such standards for
participating aggregators.</text>
</paragraph></subsection><subsection id="H296A7088729146A187057205E5AC3561"><enum>(e)</enum><header>Authority To require reports</header>
<paragraph id="H30CDCCE84C314522AB67247262C22F0A"><enum>(1)</enum><header>Regular reports</header><text display-inline="yes-display-inline">The Director may require, by general or specific orders, a market participant or participating
aggregator to submit regular reports, including financial statements
determined on a fair value basis, on the condition (including financial
condition), management, activities, or operations of the market
participant or participating aggregator, as the Director considers
appropriate.</text>
</paragraph><paragraph id="H63DBC5A91ABB48D1884851AA0AC85816"><enum>(2)</enum><header>Special reports</header><text display-inline="yes-display-inline">The Director may require, by general or specific orders, a market participant or participating
aggregator to submit special reports on any of the topics specified in
paragraph (1) or any other relevant topics, if, in the judgment of the
Director, such reports are necessary to carry out the purposes of this
Act.</text>
</paragraph></subsection><subsection id="HDD38AE4A992E4BF09A05C79E3BD1834D"><enum>(f)</enum><header>Examinations and audits</header><text display-inline="yes-display-inline">The Director may conduct such examinations and audits, including on-site examinations and audits,
of market participants and participating aggregators as the Director
considers appropriate to ensure compliance with this Act, to determine the
condition of market participants and participating aggregators for the
purpose of determining and ensuring their financial safety and soundness,
and otherwise in any case that the Director determines an examination is
necessary or appropriate.</text>
</subsection><subsection id="H0D8B8B946041471C843E6FF35197CEEE"><enum>(g)</enum><header>Conflict of interest standards</header><text display-inline="yes-display-inline">The Director shall establish standards, by regulation or guideline, for market participants and
participating aggregators as the Director considers appropriate to avoid
any conflicts of interest among market participants.</text>
</subsection><subsection id="H89697C206D05482AAC36363C43289AD8"><enum>(h)</enum><header>Stress tests for sufficient capital</header><text display-inline="yes-display-inline">The Director, in consultation with the Board of Governors of the Federal Reserve, shall—</text>
<paragraph id="H0A92FF7C406D4D8AB2FBE0CDF10594E5"><enum>(1)</enum><text display-inline="yes-display-inline">establish and carry out such risk-based capital tests as appropriate to evaluate whether each
market participant and participating aggregator is maintaining a level of
capital sufficient to absorb losses and support operations during adverse
economic conditions so that they do not pose undue risks to their
communities, other institutions, or the broader economy; and</text>
</paragraph><paragraph id="H62B10D3DE5414205AAEAC7B2053859FC"><enum>(2)</enum><text display-inline="yes-display-inline">establish capital standards for market participants and participating aggregators based on such
tests, which shall include the following classifications: well
capitalized, adequately capitalized, undercapitalized, significantly
undercapitalized, and critically undercapitalized.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB002DFE560CE4E86901374551EC712C4"><enum>(i)</enum><header>Enforcement</header><text display-inline="yes-display-inline">The Corporation shall have the authority to enforce the provisions of this Act with respect to
market participants and participating aggregators, in the same manner and
to the same extent as the Federal Deposit Insurance Corporation has with
respect to insured depository institutions under the provisions of
subsections (b) through (n) of section 8 of the Federal Deposit Insurance
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1818">12 U.S.C. 1818</external-xref>).</text>
</subsection><subsection display-inline="no-display-inline" id="HDA99D4FD46A34DAEA20DA6DA50454C18"><enum>(j)</enum><header>Requirement To maintain approved status</header>
<paragraph id="H8A7EAAA4659E468B92C21B539C9FE9AB"><enum>(1)</enum><header>Authority to issue order</header><text>If the Director determines that a market participant or a participating aggregator under this
section no longer meets the standards for such approval or violates the
requirements under this Act, including any standards, regulations, or
orders promulgated in accordance with this Act, the Director may—</text>
<subparagraph id="HCC65F7067CCE488F9CED32C292A3149C"><enum>(A)</enum><text display-inline="yes-display-inline">suspend or revoke the status of the market participant or participating aggregator as approved to
utilize the Platform; or</text>
</subparagraph><subparagraph id="H01AE908663CB4D518D6D1B1B037F034A"><enum>(B)</enum><text display-inline="yes-display-inline">take any other action with respect to such market participant or a participating aggregator as may
be authorized under this Act.</text>
</subparagraph></paragraph><paragraph id="HE4CB05440F4C48B48BEF394E7038F203"><enum>(2)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">The suspension or revocation of the approved status of a market participant or a participating
aggregator under this section shall have no effect on the status as an
insured security of any security collateralized by eligible mortgages and
insured prior to the suspension or revocation.</text>
</paragraph><paragraph id="HD76A22B1F5C04B21B03AE21F172E49D4"><enum>(3)</enum><header>Publication</header><text>The Director shall—</text>
<subparagraph id="H886E94C683F94A9A9045B6658BF3E8B4"><enum>(A)</enum><text display-inline="yes-display-inline">promptly publish a notice in the Federal Register upon suspension or revocation of the approval of
any market participant or a participating aggregator; and</text>
</subparagraph><subparagraph id="HC99F442C894546A89CB087DEBDAA10FE"><enum>(B)</enum><text display-inline="yes-display-inline">maintain an updated list of such approved market participants and participating aggregators on the
website of Ginnie Mae.</text>
</subparagraph></paragraph><paragraph id="HC575A40969484AFF94DA4633CF2D52C3"><enum>(4)</enum><header>Definition</header><text>In this subsection, the term <term>violate</term> includes any action, taken alone or with others, for or toward causing, bringing about,
participating in, counseling, or aiding or abetting, a violation of the
requirements under this Act.</text>
</paragraph></subsection><subsection id="H1412844A00D54E62B2448D0AF6ED3EE6"><enum>(k)</enum><header>Resolution authority</header>
<paragraph id="HC9246232912A478C8C42DDF64BC4D504"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of Federal law, the law of any State, or the constitution of
any State, the Director shall—</text>
<subparagraph id="H52EA67DEA13C4D50A202752F125A075A"><enum>(A)</enum><text>have the authority to act, in the same manner and to the same extent, with respect to a market
participant or participating aggregator that the Director determines
pursuant to is classified as critically undercapitalized pursuant to
subsection (h)(2), as the Federal Deposit Insurance Corporation has with
respect to insured depository institutions under subsections (c) through
(s) of section 11 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821</external-xref>),
section 12 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1822">12 U.S.C. 1822</external-xref>), and
section 13 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1823">12 U.S.C. 1823</external-xref>), while
tailoring such actions to the specific business model of the market
participant or participating aggregator, as the case may be, as may be
necessary to properly exercise such authority under this subsection;</text>
</subparagraph><subparagraph id="H1E83FFF135744EEF8526010105FFCD56"><enum>(B)</enum><text>in carrying out any authority provided under subparagraph (A), act, in the same manner and to the
same extent, with respect to the Fund as the Federal Deposit Insurance
Corporation may act with respect to the Deposit Insurance Fund under the
provisions of the Federal Deposit Insurance Act set forth in subparagraph
(A); and</text>
</subparagraph><subparagraph id="HE0CFB6A4E5F04121AB839CE5ABDC8364"><enum>(C)</enum><text>consistent with the authorities provided in subparagraph (A), immediately place an insolvent market
participant or participating aggregator into receivership.</text>
</subparagraph></paragraph><paragraph id="H381D3458FBAC45BE9961BB030FF77AF8"><enum>(2)</enum><header>Rule of construction</header><text>Notwithstanding paragraph (1), if an insolvent participating aggregator is an insured depository
institution or an affiliate of an insured depository institution, the
Director shall recommend, in writing, to such participating aggregator’s
appropriate Federal banking agency or State banking regulator to resolve
such participating aggregator pursuant to section 11(c) of the Federal
Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1821">12 U.S.C. 1821(c)</external-xref>) and other appropriate sections
of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>) or
appropriate Federal or State law, as applicable.</text>
</paragraph><paragraph id="H39C3D876C6D54A08B7790C6961EFF36D"><enum>(3)</enum><header>Least-cost resolution required</header><text>The Director may not exercise any authority under paragraph (1) with respect to any market
participant or any participating aggregator that is not an insured
depository institution or an affiliate of an insured depository
institution, unless—</text>
<subparagraph id="HBF52BA94A04C47A9A9C8F463D7128463"><enum>(A)</enum><text>the Director determines that the exercise of such authority is necessary to ensure proper and
continued functioning of the secondary mortgage market; and</text>
</subparagraph><subparagraph id="HCCC459C9186B468D83166890977D30FD"><enum>(B)</enum><text>the total amount of the expenditures by the Director and obligations incurred by the Director in
connection with the exercise of any such authority with respect to such
market participant or participating aggregator is the least costly to the
Fund, consistent with the least cost approach specified in the Federal
Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1811">12 U.S.C. 1811 et seq.</external-xref>), of all possible methods
for meeting Ginnie Mae’s obligations under this Act and expeditiously
concluding its resolution activities.</text>
</subparagraph></paragraph><paragraph id="HF0A5EACE085945E1B8E1D4F1E46144D7"><enum>(4)</enum><header>Taxpayer protection</header><text>The Director, in carrying out any authority provided in this subsection, shall ensure that any
amounts owed to the United States, unless the United States agrees or
consents otherwise, shall have priority following administrative expenses
of the receiver when satisfying unsecured claims against a market
participant or participating aggregator, or the receiver therefor, that
are proven to the satisfaction of the receiver.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HF1AB979A0E3347D68A35C8882186B391" section-type="subsequent-section"><enum>104.</enum><header>Regulatory consultation and coordination</header>
<subsection id="HF9F314B02310499795600C6F564D351B"><enum>(a)</enum><header>Consultation permitted</header><text>The Director may, in carrying out any duty, responsibility, requirement, or action authorized under
this Act, consult with the Federal regulatory agencies, any individual
Federal regulatory agency, the Secretary of the Treasury, any State
banking regulator, any State insurance regulator, and any other State
agency, as the Director necessary and appropriate.</text>
</subsection><subsection id="H93650702E4724BDF90E3D96B2F197193"><enum>(b)</enum><header>Coordination required</header><text>The Director shall, as appropriate, in carrying out any duty, responsibility, requirement, or
action authorized under this Act, coordinate with the Federal regulatory
agencies, any individual Federal regulatory agency, the Secretary of the
Treasury, any State banking regulator, any State insurance regulator, any
other State agency.</text>
</subsection><subsection id="H05F1026732BE4790A7DB12868244B35A"><enum>(c)</enum><header>Avoidance of duplication</header><text>To the fullest extent possible, the Director shall—</text>
<paragraph id="H824198D25D0A4E74848DAC9AA7603E08"><enum>(1)</enum><text>avoid duplication of examination activities, reporting requirements, and requests for information;</text>
</paragraph><paragraph id="HE0AC304A47B145D29039E5E81C5C7203"><enum>(2)</enum><text>rely on examination reports made by other Federal or State regulatory agencies relating to an
approved entity and its subsidiaries, if any; and</text>
</paragraph><paragraph id="H4A2E7E64888841F4A9C9648E07CFEB04"><enum>(3)</enum><text>ensure that market participants and participating aggregators are not subject to conflicting
supervisory demands by Ginnie Mae and other Federal regulatory agencies.</text>
</paragraph></subsection><subsection id="H3E262E1E9D4C44C0A3E5F9A63A9AE864"><enum>(d)</enum><header>Protection of privileges</header>
<paragraph id="H47D81DE9A7164D1C8327FA9420EAF3E3"><enum>(1)</enum><header>In general</header><text>Pursuant to the authorities provided under subsections (a) and (b), to facilitate the consultative
process and coordination, the Director may share information with the
Federal regulatory agencies, any individual Federal regulatory agency, the
Secretary of the Treasury, any State bank supervisor, any State insurance
regulator, any other State agency, or any foreign banking authority, on a
one-time, regular, or periodic basis, as determined by the Director,
regarding the capital assets and liabilities, financial condition, risk
management practices, or any other practice of any market participant or
participating aggregator.</text>
</paragraph><paragraph id="HCA3FB397D563405E957D23235A15964C"><enum>(2)</enum><header>Privilege preserved</header><text>Information shared by the Director pursuant to paragraph (1) shall not be construed as waiving,
destroying, or otherwise affecting any privilege or confidential status
that any market participant, participating aggregator, 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 id="H275C7D74776C47D9A868BF90F89AD8EE"><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="HA83E3D91ED024983B29FBB7CD6D37F82"><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="HC73C87B357494BC794BEF33B97F66C0F"><enum>(B)</enum><text>any person would waive any privilege applicable to any information by submitting the information
directly to the Federal regulatory agencies, any individual Federal
regulatory agency, any State bank supervisor, any State insurance
regulator, any other State agency, or any foreign banking authority, but
for this subsection.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H4984D6EC88624A5BA65953C9FCBFC3D8"><enum>(e)</enum><header>Federal agency authority preserved</header><text>Unless otherwise expressly provided by this section, no provision of this section shall limit or be
construed to limit, in any way, the existing authority of any Federal
agency.</text>
</subsection><subsection id="HF5015E79FD624B16BEE0BCB2E4E273BF"><enum>(f)</enum><header>Federal regulatory agency</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>Federal regulatory agency</quote> means, individually, the Board of Governors of the Federal Reserve System, the Office of the
Comptroller of the Currency, the Federal Deposit Insurance Corporation,
the Bureau of Consumer Financial Protection, the National Credit Union
Administration, the Securities and Exchange Commission, the Commodity
Futures Trading Commission, and the Federal Housing Finance Agency.</text>
</subsection></section><enum>II</enum><header>Securitization and insurance</header>
<section id="H7DA7BF5401B84EEAB845C8ADB44BFCB2"><enum>201.</enum><header>Issuing Platform</header>
<subsection id="H5D10F1DD39C04752BDDF12B746C1B1D4"><enum>(a)</enum><header>Establishment</header>
<paragraph id="H9B3A254D819E46629E06F71A68C29330"><enum>(1)</enum><header>In general</header><text>There is established within Ginnie Mae an entity to be known as the Issuing Platform (the <quote>Platform</quote>), which shall issue standardized mortgage-backed securities to increase homogeneity in the
eligible securities market.</text>
</paragraph><paragraph id="H7B61FFC4D2FC4A55BAB4041EF26726C0"><enum>(2)</enum><header>Authorities</header><text>The Platform may—</text>
<subparagraph id="HA6E60367A09C4FF6A407765376029FB4"><enum>(A)</enum><text display-inline="yes-display-inline">make contracts, incur liabilities, and borrow money;</text>
</subparagraph><subparagraph id="H86135232017C4D9EB00C182E6F1CC478"><enum>(B)</enum><text>purchase, sell, receive, hold, and use real and personal property;</text>
</subparagraph><subparagraph id="HC9B6BCC74A0F4785A969D96F8C613E75"><enum>(C)</enum><text>create, execute, and administer trusts; and</text>
</subparagraph><subparagraph id="HC1B2CA275798437DA6718E69F358F5DD"><enum>(D)</enum><text>take such actions as the Platform determines are necessary or incidental to carry out the
Platform’s duties under this Act.</text>
</subparagraph></paragraph></subsection><subsection id="HECDA50AD62144483AECD3C1329EFC88B"><enum>(b)</enum><header>Delivery of pool to the Platform</header><text display-inline="yes-display-inline">A mortgage originator or aggregator that wishes to make use of the Platform and have Ginnie Mae
insure the securities issued by the Platform shall deliver to the Platform
a pool of eligible mortgage loans.</text>
</subsection><subsection display-inline="no-display-inline" id="H73FF8695A8C942B49CBBF6664E7546A6"><enum>(c)</enum><header>Securitization</header><text>The Platform shall, upon receiving a pool of eligible mortgages—</text>
<paragraph id="H0784F0F8E5A2451C84290CC8B6B1E634"><enum>(1)</enum><text>create standardized mortgage-backed securities collateralized by such mortgages; and</text>
</paragraph><paragraph commented="no" id="H5C3734421CC24704898B8841839FF63A"><enum>(2)</enum><text>transfer the standardized mortgage-backed securities to the mortgage originator or aggregator from
which the Platform received the pool of eligible mortgages that are
collateralizing the securities or the designee of such originator or
aggregator.</text>
</paragraph></subsection><subsection id="H2D1A3AA1C1B54D11A5959AAF2C0D1556"><enum>(d)</enum><header>Standardized criteria for securities</header><text>In issuing securities under this section, the Platform shall establish standardized criteria for
such securities, including—</text>
<paragraph id="H98635DF5EA324E3C964518600A878FD1"><enum>(1)</enum><text>uniform loan delivery, servicing, and pooling requirements;</text>
</paragraph><paragraph id="H6EC24A3F1DF44A9397596D5AB4B564AB"><enum>(2)</enum><text>remittance requirements;</text>
</paragraph><paragraph id="H37C1432FFA70449F866E51A87B5E7106"><enum>(3)</enum><text>underwriting guidelines and refinance programs;</text>
</paragraph><paragraph commented="no" id="H94270DCE8FC8426B90ADFC14443CEFAE"><enum>(4)</enum><text>the credit quality of the guarantee provided to each security;</text>
</paragraph><paragraph id="H1A585440108D42EBAE8E1C6C64B158C2"><enum>(5)</enum><text>servicing standards and loan repurchase policies;</text>
</paragraph><paragraph id="H7F375C218BEF4EB1A37B0252A282EBCA"><enum>(6)</enum><text>disclosure policies;</text>
</paragraph><paragraph id="H7B0D76DA5CD445A9AF52E90C33E37FC7"><enum>(7)</enum><text>security terms and features; and</text>
</paragraph><paragraph id="H3FAEED873E4A4F928A22BC7ADD984F6A"><enum>(8)</enum><text display-inline="yes-display-inline">standards for the appropriate minimum level of diversification for the mortgage loans that
collateralize such securities, in order to reduce the credit risk such
securities could pose to the Fund.</text>
</paragraph></subsection><subsection id="H56A9E207F2DA4345B61DC78554628FB2"><enum>(e)</enum><header>Securitization fee</header><text display-inline="yes-display-inline">The Platform shall charge a fee for securitization services provided under this section. Such fee
shall be set by the Director and shall be in an amount sufficient to
offset the costs to the Platform of carrying out this section.</text>
</subsection><subsection id="H2B7A63827D8848D0B79C907BABCF0AED"><enum>(f)</enum><header>Loan limits; Housing Price Index</header>
<paragraph id="HD200CE16A99546B180371750ED623657"><enum>(1)</enum><header>Establishment</header><text>Ginnie Mae shall establish limitations governing the maximum original principal obligation of
eligible mortgage loans that may collateralize a security issued under
this Act.</text>
</paragraph><paragraph id="H572A0B90A80540498ED187FE658923CD"><enum>(2)</enum><header>Calculation of amount</header><text display-inline="yes-display-inline">The limitation set forth under paragraph (1) shall be calculated with respect to the total original
principal obligation of the eligible mortgage loan and not merely with
respect to the amount insured by Ginnie Mae.</text>
</paragraph><paragraph id="HFD5519ECC2FF44C4BD25F41ED685FA7E"><enum>(3)</enum><header>Maximum limits</header>
<subparagraph id="H14AF488A2118471F99474DA8A91A9837"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the maximum limitation amount under this paragraph shall
not exceed $417,000 for a mortgage loan secured by a 1-family residence,
for a mortgage loan secured by a 2-family residence the limit shall equal
128 percent of the limit for a mortgage loan secured by a 1-family
residence, for a mortgage loan secured by a 3-family residence the limit
shall equal 155 percent of the limit for a mortgage loan secured by a
1-family residence, and for a mortgage loan secured by a 4-family
residence the limit shall equal 192 percent of the limit for a mortgage
loan secured by a 1-family residence, except that such maximum limitations
shall be adjusted effective January 1 of each year beginning after the
effective date of this Act, subject to the limitations in this subsection.
Each adjustment shall be made by adding to each such amount (as it may
have been previously adjusted) a percentage thereof equal to the
percentage increase, during the most recent 12-month or 4-quarter period
ending before the time of determining such annual adjustment, in the
housing price index maintained by Ginnie Mae pursuant to paragraph (4). If
the change in such house price index during the most recent 12-month or
4-quarter period ending before the time of determining such annual
adjustment is a decrease, then no adjustment shall be made for the next
year, and the next upward adjustment shall take into account prior
declines in the house price index, so that any adjustment shall reflect
the net change in the house price index since the last adjustment.
Declines in the house price index shall be accumulated and then reduce
increases until subsequent increases exceed prior declines.</text>
</subparagraph><subparagraph id="HEA4554D4C6794D94A604D3CEE8398285"><enum>(B)</enum><header>High-cost area limits</header><text display-inline="yes-display-inline">The limitations set forth in subparagraph (A) may be increased by not more than 50 percent with
respect to properties located in Alaska, Guam, Hawaii, and the Virgin
Islands. Such foregoing limitations shall also be increased, with respect
to properties of a particular size located in any area for which 115
percent of the median house price for such size residence exceeds the
limitation for such size residence set forth under subparagraph (A), 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>
</subparagraph></paragraph><paragraph id="H1F049F2B29A6412E8FD0301D021FA3B4"><enum>(4)</enum><header>Housing Price Index</header>
<subparagraph id="HD6183B9ED2B74D1BBB58A248639F93E0"><enum>(A)</enum><header>National Index</header><text>Ginnie Mae shall establish and maintain a method of assessing a national average single-family
house price for use in calculating the loan limits for single-family
mortgage loans under paragraph (3), and other averages as Ginnie Mae
considers appropriate, including—</text>
<clause id="H5D07F52BA17C469AA8F79F67B5570759"><enum>(i)</enum><text>averages based on different geographic regions; and</text>
</clause><clause id="H45A74BBD1F6B477FB3FFBE85FDFFB9B0"><enum>(ii)</enum><text>an average for houses whose mortgage collateralized single-family covered securities.</text>
</clause></subparagraph><subparagraph id="H39B79325B3DE4B78860D238A3D12A9FD"><enum>(B)</enum><header>Considerations</header><text display-inline="yes-display-inline">In establishing the method described under subparagraph (A), Ginnie Mae may take into consideration
such data, including existing house price indexes, and other measures as
Ginnie Mae considers appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="H02520E64AE3346F8811D6EEB3C4B0AA6"><enum>(g)</enum><header>Authority for loan-Level enhancement</header><text display-inline="yes-display-inline">With respect to an eligible mortgage loan that is or will be contained in a pool of mortgages
delivered to the Platform, the mortgage originator of such mortgage loan
may enter into agreements with market participants to provide loan-level
enhancement of such mortgage loan.</text>
</subsection><subsection id="H5670E3181DE9406CA4457038AB3B0003"><enum>(h)</enum><header>Certification</header><text display-inline="yes-display-inline">Ginnie Mae shall, upon a determination that the Platform is able to efficiently carry out the
issuance of standardized mortgage-backed securities and that there exists
a sufficient number of market participants to serve as insurers and
reinsurers under section 202, certify to the Congress that such
determination has been made.</text>
</subsection><subsection id="H76F7922342AE4F8A98EAA398EBB5C48A"><enum>(i)</enum><header>Duty To serve all markets</header>
<paragraph id="HFA64FCCF9F6B47A0B0C9CB46432ED39E"><enum>(1)</enum><header>In general</header><text>In carrying out its responsibilities under this title, Ginnie Mae shall facilitate the broad
availability of mortgage credit and secondary mortgage market financing
through fluctuations in the business cycle for single-family and
multifamily lending across all—</text>
<subparagraph id="H91CC2E307BE140D99AA3ED6715F313A9"><enum>(A)</enum><text>regions;</text>
</subparagraph><subparagraph id="H6BEA1B9E63D842559FABCBF86AFD955F"><enum>(B)</enum><text>localities;</text>
</subparagraph><subparagraph id="HCDDF566B8FD54585AD81924AF4406E6D"><enum>(C)</enum><text>institutions;</text>
</subparagraph><subparagraph id="HEB95E5554B4D456C863BC2A865AAA10E"><enum>(D)</enum><text>property types, including housing serving renters; and</text>
</subparagraph><subparagraph id="H4629B19C65BD45AFB9C05B9579660DAB"><enum>(E)</enum><text>borrowers.</text>
</subparagraph></paragraph><paragraph id="H8008526DB4A04E638923447DB3EF137E"><enum>(2)</enum><header>Report to Congress</header><text>Ginnie Mae shall issue a semiannual report to the Congress on—</text>
<subparagraph id="H92C4C3CD8FE941C68EB5A51F317B1EFF"><enum>(A)</enum><text>how Ginnie Mae is carrying out the duties required under paragraph (1); and</text>
</subparagraph><subparagraph id="H6D07195905C04CBD95A99184B22470C9"><enum>(B)</enum><text>the extent to which the provisions of this title and the programs carried out pursuant to this
title are benefitting underserved communities.</text>
</subparagraph></paragraph></subsection><subsection id="H7255130FECFD429A9BD96BD2E8C24895"><enum>(j)</enum><header>Exemption from SEC laws and regulations</header><text display-inline="yes-display-inline">Standardized mortgage-backed securities issued by the Platform shall be exempt from the Federal
securities laws (as defined under section 3(a) of the Securities Exchange
Act of 1934) and all regulations issued pursuant to such laws.</text>
</subsection></section><section id="H6C69DFC9D6104047A45734E0EFA47860"><enum>202.</enum><header>Insurance</header>
<subsection id="HEA124A199D46432FB65F8D6D5CF3854D"><enum>(a)</enum><header>In general</header><text>Ginnie Mae shall insure 100 percent of each security issued by the Platform, as provided in this
section.</text>
</subsection><subsection id="H39CC698B3B1F4D7BAB00753DF6054A47"><enum>(b)</enum><header>Private reinsurance</header><text display-inline="yes-display-inline">Ginnie Mae shall establish one of the two programs described under paragraphs (1) and (2). In
selecting which program to establish, Ginnie Mae shall determine which
program is the most efficient way to operate the insurance requirements
under this Act by incorporating private sector pricing.</text>
<paragraph id="H7D746CB42AC1423F886FAC7A5C107E27"><enum>(1)</enum><header>Reinsurance Bid Program</header><text>A Reinsurance Bid Program, which shall include the following:</text>
<subparagraph id="H2ABAEC33180F497B8FE85F87333CC4C5"><enum>(A)</enum><header>Forward contract for first 5 percent loss</header><text>Prior to any particular quarter (or such other time period determined by Ginnie Mae), Ginnie Mae
shall enter into contracts with market participants to reinsure the first
5 percent of loss on all securities issued by the Platform in such quarter
(or other time period).</text>
</subparagraph><subparagraph id="H8D3FE10317EF44EA8044F83554A0AEB6"><enum>(B)</enum><header>Forward contract for last 95 percent loss</header><text display-inline="yes-display-inline">Prior to any particular quarter (or such other time period determined by Ginnie Mae), Ginnie Mae
shall sign—</text>
<clause id="H8FEE396616D442C38012933110B75612"><enum>(i)</enum><text>contracts with market participants to reinsure the last 95 percent of loss on all securities issued
by the Platform in such quarter (or other time period); and</text>
</clause><clause id="H60A505725F144E6D8E5D5F1FCDA5C75E"><enum>(ii)</enum><text>a retrocession contract with each such market participant under which Ginnie Mae will agree to
offer retrocessional reinsurance to reinsure up to 90 percent of the
95
percent described under clause (i) on a pari passu basis.</text>
</clause></subparagraph></paragraph><paragraph id="H92A593B562A44A9CBCD77CFF4526AD08"><enum>(2)</enum><header>Guarantor Program</header><text>A Guarantor Program, which shall include the following:</text>
<subparagraph id="H3860D233E7604B418ADEF5C4D86F7834"><enum>(A)</enum><header>First loss requirement</header><text display-inline="yes-display-inline">The mortgage originator or aggregator that wishes to deliver a pool of eligible mortgage loans to
the Platform for securitization shall, prior to delivering such pool,
contract directly with a market participant to insure the first 5 percent
of loss on all securities issued by the Platform that are securitized by
such pool of eligible mortgage loans.</text>
</subparagraph><subparagraph id="H91063CECC9434EC78C4DCDE92DB8B20D"><enum>(B)</enum><header>Coverage for last 95 percent loss</header><text display-inline="yes-display-inline">For each security described under subparagraph (A) Ginnie Mae shall sign—</text>
<clause id="HC562187E70C34A94AA4AD21CFF8961B2"><enum>(i)</enum><text display-inline="yes-display-inline">contracts with market participants to reinsure the last 95 percent of loss on the security; and</text>
</clause><clause id="H8D16A267F8DB475D9E1C780931A3DD6A"><enum>(ii)</enum><text>a retrocession contract with each such market participant under which Ginnie Mae will agree to
offer retrocessional reinsurance to reinsure up to 90 percent of the
95
percent described under clause (i) on a pari passu basis.</text>
</clause></subparagraph><subparagraph id="H6388B86675ED4F519B0DBAC859670AAE"><enum>(C)</enum><header>Ability to select market participants</header>
<clause id="H5891F56318D141BCB0527D3F1070F3A6"><enum>(i)</enum><header>In general</header><text>If Ginnie Mae determines that it would be an efficient way to operate the insurance requirements
under this Act and would encourage the incorporation of private sector
pricing, Ginnie Mae may allow mortgage originators and aggregators
described under subparagraph (A) to select the market participant
described under subparagraph (B).</text>
</clause><clause id="HD6E19DFEBD0E4A09ADAADC11C5D5688B"><enum>(ii)</enum><header>Handling of pre-selected market participants</header><text display-inline="yes-display-inline">If a market participant is selected by a mortgage originator or aggregator, as described under
clause (i)—</text>
<subclause id="HB1C9783BE09943F5AD3C3FB1993848BC"><enum>(I)</enum><text display-inline="yes-display-inline">such market participants shall be required to meet the same standards as a market participant
selected by Ginnie Mae; and</text>
</subclause><subclause id="HC690AC5ECE584FB5B08E724C65E7D8EC"><enum>(II)</enum><text display-inline="yes-display-inline">for purposes of determining the insurance fee described under subsection (d), Ginnie Mae shall
contract with a private sector insurer to estimate the risk that the
market participant may default.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="HE4686584E73C40B7BACA5CB17676D3AC"><enum>(c)</enum><header>Additional program requirements</header>
<paragraph id="H1387CAF6F2FD4A94A52D925F63BCDBD4"><enum>(1)</enum><header>Competitive bidding process</header><text display-inline="yes-display-inline">Ginnie Mae shall use a competitive bidding process to determine which market participants should be
granted contracts under subsection (b)(1) and, except as provided under
subsection (b)(2)(C), under subsection (b)(2)(B).</text>
</paragraph><paragraph id="HD5ADBF7C85A34EB2921F2419762907FD"><enum>(2)</enum><header>Use of insurance broker</header><text display-inline="yes-display-inline">With respect to any market participant that Ginnie Mae selects under a risk sharing program, Ginnie
Mae shall select an insurance broker, through a competitive bidding
process, that will solicit bids, on behalf of Ginnie Mae, for the
reinsurance contracts under such program.</text>
</paragraph><paragraph id="HBF71B372BBF54CD7B5C1BE1D0CC15484"><enum>(3)</enum><header>Ceding commission</header><text display-inline="yes-display-inline">As part of a retrocession contract under subsection (b)(1)(B)(ii) or subsection (b)(2)(B)(ii), the
market participants shall be paid a competitively determined ceding
commission for the underwriting and administrative costs of providing such
reinsurance.</text>
</paragraph><paragraph id="H21F2917BA6134B2786A10AC7878861AE"><enum>(4)</enum><header>Phase-in</header><text>Ginnie Mae may, if it determines it appropriate—</text>
<subparagraph id="HE386F6F44C034B798DD71DD19FD88873"><enum>(A)</enum><text>phase-in the 5 percent requirements under subsections (b)(1)(A) and (b)(2)(A), by originally
requiring a lower percentage; and</text>
</subparagraph><subparagraph id="H799F6DDAA32F4E4CBDC7E4862547C981"><enum>(B)</enum><text display-inline="yes-display-inline">phase-in the 90 percent requirement under subsections (b)(1)(B)(ii) and (b)(2)(B)(ii), by
originally requiring a higher percentage.</text>
</subparagraph></paragraph></subsection><subsection id="H2546AB56196C452C992BCF6409B835C5"><enum>(d)</enum><header>Insurance fee and terms</header>
<paragraph id="HC4784CB26F59423880DAF465A656CC66"><enum>(1)</enum><header>Pre-pricing of insurance fee</header><text display-inline="yes-display-inline">Ginnie Mae shall set the insurance fee applicable to securities issued by the Platform in advance
on a quarter-by-quarter basis, through forward contracts established with
market participants based on the volume and type of securities Ginnie Mae
anticipates the Platform issuing during such quarter.</text>
</paragraph><paragraph id="HB199270CEF3E42DCA07735FE3648B7D2"><enum>(2)</enum><header>Components of insurance fee</header>
<subparagraph id="H64BEC54A07D34D6D8D04AD065410181D"><enum>(A)</enum><header>In general</header><text>The insurance fee shall reflect the anticipated cost to Ginnie Mae of providing insurance,
including the cost of obtaining reinsurance under subsection (b).</text>
</subparagraph><subparagraph id="H8FCCE8D6A5B74AE5AF4E4643609FFAC4"><enum>(B)</enum><header>Adjustment for performance</header><text display-inline="yes-display-inline">Ginnie Mae may adjust the fee computed under subparagraph (A) to reflect the historic quality of
deliveries and rating of mortgage loans made by the mortgage originators
or aggregators that originated or aggregated the mortgage loans included
in the pool of eligible mortgage loans backing the security being insured,
but in making such adjustments, Ginnie Mae shall ensure that the weighted
average of the entire book of business matches the ultimate price
determination.</text>
</subparagraph></paragraph><paragraph id="H22657F6A2217494D9A3F9E23A81B1929"><enum>(3)</enum><header>Rate adjustment period</header><text display-inline="yes-display-inline">The rate charged by a private market participant that contracts with Ginnie Mae pursuant to
subsection (b)—</text>
<subparagraph id="HBB3863A7C6C24DD4BB2D1A016B676DB3"><enum>(A)</enum><text>may not change during the first 100-day period for which such reinsurance is effective; and</text>
</subparagraph><subparagraph id="HE852B44C47C24CB69B78C4352F92E3B4"><enum>(B)</enum><text>shall be adjusted based on market conditions, on a period to be determined by the Director.</text>
</subparagraph></paragraph></subsection><subsection id="H20577D78C0A64A94A02C7A98A0C7572E"><enum>(e)</enum><header>Standards for market participants</header>
<paragraph id="HEE2E5B16042E4D9AA641030CD6BBE58C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Ginnie Mae shall issue such general standards for market participants described under subsection
(b) as Ginnie Mae determines appropriate.</text>
</paragraph><paragraph id="H60B41F321C9441F6968C3D7FF02DA252"><enum>(2)</enum><header>Credit rating requirements</header>
<subparagraph id="H59CAD8172298426F9C9FC53AA31925C4"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, Ginnie Mae shall require a market participant described
under subsection (b) to maintain at least an A− credit rating and shall
consult with credit rating agencies and State insurance commissions, where
applicable, to verify such rating.</text>
</subparagraph><subparagraph id="HD12FC95E6D0C4EBC8A55A7B8A0E0EE45"><enum>(B)</enum><header>Flexibility for new companies</header><text display-inline="yes-display-inline">Ginnie Mae may waive or modify the requirement under subparagraph (A) with respect to a new market
participant.</text>
</subparagraph></paragraph><paragraph id="H6D5077C2467C43F3A99D0FDFC7B1219E"><enum>(3)</enum><header>Capital standards for market participants</header>
<subparagraph id="HAA82E842F2834E488001AFA3AE012E45"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For market participants described under subsection (b), Ginnie Mae shall establish, by regulation,
capital standards and related solvency standards necessary to implement
the provisions of this Act.</text>
</subparagraph><subparagraph id="H9F1AEA9659FE4AB7BB14297AF7F8985E"><enum>(B)</enum><header>Definitions</header>
<clause id="H66C90E9ACA3A491B84C1082CF6B7923E"><enum>(i)</enum><header>In general</header><text>The regulations required under this paragraph shall define all such terms as are necessary to carry
out the purposes of this paragraph.</text>
</clause><clause id="H7C46BDD71DC44AEDAC39CEC2EF7A101D"><enum>(ii)</enum><header>Considerations in defining instruments and contracts that qualify as capital</header><text>In defining instruments and contracts that qualify as capital pursuant to subparagraph (A), Ginnie
Mae—</text>
<subclause id="H02888B43615B4043991B2DEB4FF65090"><enum>(I)</enum><text>shall include such instruments and contracts that will absorb losses before the Fund; and</text>
</subclause><subclause id="H545728404C3A453989134ED52E7EFD12"><enum>(II)</enum><text>may assign significance to those instruments and contracts based on the nature and risks of such
instruments and contracts.</text>
</subclause></clause><clause id="H8A96C512200B40E395B95A8E0A665EB0"><enum>(iii)</enum><header>Considerations in defining capital ratios</header><text display-inline="yes-display-inline">Solely for the purposes of calculating a capital ratio appropriate to the business model of a
market participant pursuant to subparagraph (A), Ginnie Mae shall consider
for the denominator—</text>
<subclause id="H78F270FB37D445ED990F64E047BA7387"><enum>(I)</enum><text>total assets;</text>
</subclause><subclause id="H71B3896D0C704DF48DB86C8FF030249C"><enum>(II)</enum><text>total liabilities;</text>
</subclause><subclause id="H0E75E584450342B296FCBF23DC112964"><enum>(III)</enum><text>risk in force; or</text>
</subclause><subclause id="H62E4C99AB0254AFD8D28847D8F7C0FBD"><enum>(IV)</enum><text>unpaid principal balance.</text>
</subclause></clause></subparagraph><subparagraph id="H6037C5FFED224391AF341AE20A5FBF40"><enum>(C)</enum><header>Designed to ensure safety and soundness</header><text>The capital and related solvency standards established under this paragraph shall be designed to—</text>
<clause id="H1EFD7BF1141244C5BDD5FB3FDCC969E2"><enum>(i)</enum><text display-inline="yes-display-inline">ensure the safety and soundness of a market participant;</text>
</clause><clause id="H8B5CBB9EED05440CB90177584A5A45D3"><enum>(ii)</enum><text>minimize the risk of loss to the Fund;</text>
</clause><clause id="HC7822C54339A4B509A1F60F671861814"><enum>(iii)</enum><text display-inline="yes-display-inline">in consultation and coordination with the Board of Governors of the Federal Reserve System, the
Federal Deposit Insurance Corporation, and the Office of the Comptroller
of the Currency, reduce the potential for regulatory arbitrage between
capital standards for market participants and capital standards
promulgated by Federal regulatory agencies for insured depository
institutions and their affiliates; and</text>
</clause><clause id="HBA8337C9AB4E41D18846AD08BB9E3985"><enum>(iv)</enum><text display-inline="yes-display-inline">be specifically tailored to accommodate a diverse range of business models that may be employed by
market participants.</text>
</clause></subparagraph><subparagraph id="H03FC30D43A124BEFAA5945E382E3C13E"><enum>(D)</enum><header>Supplemental capital requirements</header>
<clause id="H7402766ACB5F4F75857E83A2B2FF0A9F"><enum>(i)</enum><header>In general</header><text>In order to prevent or mitigate risks to the secondary mortgage market of the United States that
could arise from the material financial distress or failure, or ongoing
activities, of large market participants that insure securities under this
Act, Ginnie Mae, by regulation—</text>
<subclause id="H9C6886A7527644F8A94B6561588AB19F"><enum>(I)</enum><text display-inline="yes-display-inline">shall establish supplemental capital requirements for such large market participants; and</text>
</subclause><subclause id="HA10A26EB84D04D2A87585B04893B197E"><enum>(II)</enum><text>may establish such other standards that Ginnie Mae determines necessary or appropriate.</text>
</subclause></clause><clause id="H547F583389F642E48B0D1A8DB9CF4B8B"><enum>(ii)</enum><header>Large market participant defined</header><text>For purposes of this subparagraph, Ginnie Mae shall define the term <quote>large market participant</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H937119F0D73C406E985584D8FDA9170B"><enum>(f)</enum><header>Conflict of interests</header><text display-inline="yes-display-inline">Ginnie Mae shall issue regulations to prevent conflicts of interest by market participants
contracting with Ginnie Mae under this section.</text>
</subsection><subsection id="H33681992E1FB4CF8883D035D7BE15C63"><enum>(g)</enum><header>Insurance Fund</header>
<paragraph id="H7EB554500DA34F618A713F37D1D35BCB"><enum>(1)</enum><header>Establishment</header><text>There is established an insurance fund (the <quote>Fund</quote>), which Ginnie Mae shall—</text>
<subparagraph id="HB2DA2C1494B5490E8BBB85D3E5C527E6"><enum>(A)</enum><text>maintain and administer; and</text>
</subparagraph><subparagraph id="H72C06CA4A40341B3BF2D0F2E005D812E"><enum>(B)</enum><text display-inline="yes-display-inline">use to cover losses incurred under this section with respect to mortgage-backed securities.</text>
</subparagraph></paragraph><paragraph id="H71A06E436B6149CE9D668B71FF16AF79"><enum>(2)</enum><header>Fund goal</header>
<subparagraph id="HF5CF1930EA1741F28A44346A60BB99CB"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Ginnie Mae shall endeavor to ensure that the Fund attains a reserve balance—</text>
<clause id="H974FB6B0FC004E64A561A5A0230150C4"><enum>(i)</enum><text>of 1.25 percent of the sum of the outstanding principal balance of the securities for which
insurance is being provided under this Act within 5 years of the date on
which the Director determines that the Platform is fully functioning, and
to strive to maintain such ratio thereafter, subject to clause (ii); and</text>
</clause><clause id="H8BA3F6FB4D694DBD89646A1BC6F5914C"><enum>(ii)</enum><text display-inline="yes-display-inline">of 2.50 percent of the sum of the outstanding principal balance of the securities for which
insurance is being provided under this Act within 10 years of the date on
which the Director determines that the Platform is fully functioning, and
to strive to maintain such ratio at all times thereafter.</text>
</clause></subparagraph><subparagraph id="H4B42F4E86CDF44BDAE5266081B61D772"><enum>(B)</enum><header>Adjustment of fees</header><text>Notwithstanding subsection (d), Ginnie Mae may raise or lower the fee charged for insurance under
this section in order to maintain the reserve balance described under
subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H926291F77D534039B730807794BDA15C"><enum>(3)</enum><header>Deposits</header><text display-inline="yes-display-inline">The Fund shall be credited with any fees received by Ginnie Mae in exchange for insurance made
available under this section.</text>
</paragraph><paragraph id="HCF4B87C0386441F3BF9F7C8D9C02126C"><enum>(4)</enum><header>Prohibited investments</header><text>Amounts in the Fund may not be invested in any—</text>
<subparagraph id="H047AFF6DDDF842A7AA696993B27B6206"><enum>(A)</enum><text display-inline="yes-display-inline">standardized mortgage-backed security insured under this Act; or</text>
</subparagraph><subparagraph id="H013C5FCA8C5F46E2B66FB01F91C1103F"><enum>(B)</enum><text>mortgage-backed security issued by the enterprises.</text>
</subparagraph></paragraph><paragraph id="HD288F408DB8C40F3BAC277BA9B0E0551"><enum>(5)</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>
</paragraph></subsection></section><section id="HDD77B20A91AB4F1C9811EEE47FAB7402"><enum>203.</enum><header>Authority to protect taxpayers in unusual and exigent market conditions</header>
<subsection id="H97E1AB6FCE254295BAE8A35E6EA6C4ED"><enum>(a)</enum><header>In general</header><text>If Ginnie Mae, upon the written agreement of the Chairman of the Board of Governors of the Federal
Reserve System and the Secretary of the Treasury, and in consultation with
the Secretary of Housing and Urban Development, determines that unusual
and exigent circumstances have created or threaten to create an anomalous
lack of mortgage credit availability within the single-family housing
market, multifamily housing market, or entire United States housing market
that could materially and severely disrupt the functioning of the housing
finance system of the United States, Ginnie Mae may, for a period of 6
months—</text>
<paragraph id="H8D1C8C0C37274213AB5B548ABA36A4B0"><enum>(1)</enum><text>modify or waive the reinsurance requirements under section 202(b); and</text>
</paragraph><paragraph id="HD5DDBD8BBED24942B60CD62BE7593CA1"><enum>(2)</enum><text>establish provisional standards for approved entities.</text>
</paragraph></subsection><subsection id="HC3FF428ED1E44C8BAEAAFC335A68DEC4"><enum>(b)</enum><header>Considerations</header><text>In exercising the authority granted under subsection (a), Ginnie Mae shall consider the severity of
the conditions present in the housing markets and the risks presented to
the Fund in exercising such authority.</text>
</subsection><subsection id="H88184DD362C34593815C64ABFE042058"><enum>(c)</enum><header>Terms and conditions</header><text display-inline="yes-display-inline">Insurance provided under subsection (a) shall be subject to such additional or different
limitations, restrictions, and regulations as Ginnie Mae may prescribe.</text>
</subsection><subsection id="HD5340C1157814F759253BD081BE2B191"><enum>(d)</enum><header>Bailout strictly prohibited</header><text display-inline="yes-display-inline">In exercising the authority granted under subsection (a), Ginnie Mae may not—</text>
<paragraph id="H732F2DAE0FC946619005E1E6BBE2AF73"><enum>(1)</enum><text>provide aid to an approved entity or an affiliate of the approved entity, if such approved entity
is in bankruptcy or any other Federal or State insolvency proceeding; or</text>
</paragraph><paragraph id="HB232699C32E647859421ED2D4683BD12"><enum>(2)</enum><text>provide aid for the purpose of assisting a single and specific company avoid bankruptcy or any
other Federal or State insolvency proceeding.</text>
</paragraph></subsection><subsection id="H9BC8CA7220864A368A2027486122F5D8"><enum>(e)</enum><header>Notice</header><text display-inline="yes-display-inline">Not later than 7 days after authorizing insurance or establishing provisional standards under
subsection (a), Ginnie Mae shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives a report that includes—</text>
<paragraph id="H6F678513AE2D4F6F9418BD6FB886B9A2"><enum>(1)</enum><text>the justification for the exercise of authority to provide such insurance or establish such
provisional standards;</text>
</paragraph><paragraph id="H6E1E9F9AAFDC45F1B28711D3FE97D44E"><enum>(2)</enum><text>evidence that unusual and exigent circumstances have created or threatened to create an anomalous
lack of mortgage credit availability within the single-family housing
market, multifamily housing market, or entire United States housing market
that could materially and severely disrupt the functioning of the housing
finance system of the United States; and</text>
</paragraph><paragraph id="HC46CE9EB19844BDCBC634703591360E6"><enum>(3)</enum><text>evidence that failure to exercise such authority would have undermined the safety and soundness of
the housing finance system.</text>
</paragraph></subsection><subsection id="H7A38F759E09F483A92233EDB516303E2"><enum>(f)</enum><header>Additional exercise of authority</header>
<paragraph id="H41D022C33C854836B91CC2BE6132DBB5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to the limitation under subsection (g), the authority granted to Ginnie Mae under
subsection (a) may be exercised for 2 additional 9-month periods within
any given 3-year period, provided that Ginnie Mae, 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—</text>
<subparagraph id="HBADB300A360647FF890651C2E195941D"><enum>(A)</enum><text>determines—</text>
<clause id="HB4D03F3F0A264516AA80F92AA7639A48"><enum>(i)</enum><text display-inline="yes-display-inline">for a second exercise of authority under subsection (a), that a second exercise of authority under
subsection (a) is necessary; or</text>
</clause><clause id="HC59142F07ACA46F38E017F23E6FCF8C6"><enum>(ii)</enum><text display-inline="yes-display-inline">for a third exercise of authority under subsection (a), by an affirmative vote of the Director of
Ginnie Mae and an affirmative vote of <fraction>2/3</fraction> or more of the Board of Governors of the Federal Reserve System then serving, that a third
exercise of authority under this section is necessary; and</text>
</clause></subparagraph><subparagraph id="HA5937EB64DB8442ABA001083AF808EE0"><enum>(B)</enum><text display-inline="yes-display-inline">provides notice to Congress, as provided under subsection (e).</text>
</subparagraph></paragraph><paragraph id="H438338C034F94E749BB19760EB1FAF2C"><enum>(2)</enum><header>Order of exercise of authority</header><text>Any additional exercise of authority under this subsection may occur consecutively or
non-consecutively.</text>
</paragraph></subsection><subsection id="H9D22369E9A604ADD9F4C863C7B6A2443"><enum>(g)</enum><header>Limitation</header><text display-inline="yes-display-inline">The authority granted to Ginnie Mae under this section may not be exercised more than 3 times in
any given 3-year period, which 3-year period shall commence upon the
initial exercise of authority under subsection (a).</text>
</subsection><subsection id="HD2734C808A214D0198722B0135603969"><enum>(h)</enum><header>Normalization and reduction of risk</header><text>Following any exercise of authority under this section, Ginnie Mae shall—</text>
<paragraph id="H98AB2264B85B42C0856747676F7757A9"><enum>(1)</enum><text>establish a timeline for approved entities to meet the approval standards set forth in this Act;
and</text>
</paragraph><paragraph id="H172AA3D2701A46A0A1F784DC9E54B762"><enum>(2)</enum><text>in a manner and pursuant to a timeline that will minimize losses to the Fund, establish a program
to either—</text>
<subparagraph id="HF7A503D00A9949F9A5CACF92945ED0B1"><enum>(A)</enum><text>sell, in whole or in part, the first loss position on securities described in this section to
private market holders; or</text>
</subparagraph><subparagraph id="H06100AEC9DB849A9BC1FCF39155BEFB7"><enum>(B)</enum><text display-inline="yes-display-inline">transfer for value to approved entities, or work with approved entities to sell, in whole or in
part, the first lost position on securities described in this section.</text>
</subparagraph></paragraph></subsection><subsection id="HB51381DD9A914B07A8A5143C7A4B1D74"><enum>(i)</enum><header>Authority To respond to sustained national home price decline</header>
<paragraph id="HFF57EAB3699D482BB6395E6A9118A8C7"><enum>(1)</enum><header>Authority</header><text>In the event of a significant decline of national home prices, in at least 2 consecutive calendar
quarters, Ginnie Mae may for a period of 6 months permit the transfer of
guarantees of eligible mortgage loans that secure securities issued under
this Act if such eligible mortgage loans are refinanced, regardless of the
value of the underlying collateral securing such eligible mortgage loans.</text>
</paragraph><paragraph id="HA01716CCFD694219BD8473B07C322099"><enum>(2)</enum><header>Additional exercise of authority</header><text>The authority granted to Ginnie Mae under paragraph (1) may be exercised for additional 6-month
periods.</text>
</paragraph><paragraph id="HAAFFF81947A14D7485429A9EF93857EA"><enum>(3)</enum><header>Limitation</header><text>Ginnie Mae shall not provide insurance under this Act to any security issued under this Act that
includes mortgage loans that do not meet the definition of an eligible
mortgage loan, except for mortgage loans refinanced from eligible mortgage
loans in securities issued under this Act.</text>
</paragraph><paragraph id="HF0B91BABB45F4C0F83BE2711AA678A29"><enum>(4)</enum><header>Rule of construction</header><text>No provision in this section shall be construed as permitting Ginnie Mae to lower any other
requirement related to the requirements set forth under the definition of
an eligible mortgage loan.</text>
</paragraph></subsection></section><section id="H57E3140591E54326B99C02A1A4431BC6"><enum>204.</enum><header>Servicing rights; representations and warranties</header>
<subsection id="H1B08C349E4404F609EEAF1DE02D59B3A"><enum>(a)</enum><header>Servicing rights</header><text display-inline="yes-display-inline">The servicing rights for mortgage-backed securities issued by the Issuing Platform shall be
controlled by—</text>
<paragraph id="H7CC96E7AD9A64B3F9C4D0A507D3D0A51"><enum>(1)</enum><text>the reinsurance company reinsuring the first 5 percent loss position on such securities; or</text>
</paragraph><paragraph id="HF111BDB2B967469292C5C9086F7FAA2F"><enum>(2)</enum><text>in the case of securities that do not have a reinsurance company reinsuring the first 5 percent
loss position or with respect to which the such reinsurance company is
insolvent, Ginnie Mae.</text>
</paragraph></subsection><subsection id="HBDE176A0CE194A8EB86ED4587A9220C7"><enum>(b)</enum><header>Advancing of payments</header><text display-inline="yes-display-inline">The party controlling the servicing rights described under subsection (a) shall also control the
advancing of payments.</text>
</subsection><subsection id="HB9265B08156F4CD98F2572ACC3C99D9D"><enum>(c)</enum><header>Representations and warranties</header>
<paragraph id="H7B92B517B1B8423E81F0C60BA47E33F2"><enum>(1)</enum><header>Collateral manager</header><text>With respect to each pool securitized by the Issuing Platform, there shall be a collateral manager
who shall—</text>
<subparagraph id="H35F6AE762AAD4E44917DE0040F85B0A7"><enum>(A)</enum><text>oversee representations and warranties;</text>
</subparagraph><subparagraph id="HA9380A64F64643B4A08F3C21644D204D"><enum>(B)</enum><text>act for the benefit of investors; and</text>
</subparagraph><subparagraph id="H4CB44CEAD8D8404D9CB3C1E0273E0BD7"><enum>(C)</enum><text>in the case of a mortgage loan that is in breach of the representations and warranties, facilitate
the repurchase or replacement of such mortgage loan with a mortgage loan
that is in compliance with representations and warranties.</text>
</subparagraph></paragraph><paragraph id="H2661E8968279499CB49FE1F1A973E21A"><enum>(2)</enum><header>Fiduciary duties with respect to private label securities</header>
<subparagraph id="H1813872532164978AA3A911A21192368"><enum>(A)</enum><header>In general</header><text>All contracts for private label securities issued after the date of the enactment of this Act shall
include the following provisions:</text>
<clause id="H8EB667833D3D4766A6F639B63F9D2890"><enum>(i)</enum><text display-inline="yes-display-inline">The qualification, responsibilities, and duties of trustees, including requirements set forth in
the indenture or pooling and servicing agreement, or any applicable
provisions of the Trust Indenture Act of 1939 (<external-xref legal-doc="usc" parsable-cite="usc/15/77aaa">15 U.S.C. 77aaa et seq.</external-xref>).</text>
</clause><clause id="H10224280504F4414B8DAEA14AF31733A"><enum>(ii)</enum><text display-inline="yes-display-inline">Trustees of private label securities shall have a fiduciary duty to protect the financial interests
of investors of such securities.</text>
</clause></subparagraph><subparagraph id="H08938372A73442A291CEA06DF7844EB4"><enum>(B)</enum><header>Trustee’s fiduciary duty defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, a trustee’s fiduciary duty means that a trustee shall at all times
oversee, monitor, and manage the trust that owns the mortgage loans
securing the private label securities in the financial interests of the
trust and its investors, with the same degree of care and skill that a
prudent person would exercise or use under the circumstances in the
conduct of such person's own affairs. ln determining financial interests,
the trustee's fiduciary duty shall consider all investors in a
securitization, rather than the interests of any particular class of
investors. A trustee that is deemed to be acting in accordance with its
fiduciary duty to the trust shall not be liable to any investor, and shall
not be subject to any injunction, stay, or other equitable relief sought
by such investor, based solely upon such actions.</text>
</subparagraph><subparagraph id="HE4736B70A22846B199EF5946A89A4D9A"><enum>(C)</enum><header>Inclusion of fiduciary duty</header><text display-inline="yes-display-inline">The governing documents of any private label securities issued after the date of the enactment of
this Act shall automatically be deemed to include a trustee's fiduciary
duty. The trustee's fiduciary duty may not be abrogated or altered by the
parties to such documents and may not be amended by parties to contracts
for private label securities.</text>
</subparagraph><subparagraph id="HAE8FA0E39AAD4BC39D4E72D960687E59"><enum>(D)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this paragraph shall be construed to relieve any party of its duties to participants and
beneficiaries of any employee benefit plan under the Employee Retirement
Income Security Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1101">29 U.S.C. 1101 et seq.</external-xref>).</text>
</subparagraph><subparagraph id="HFFD61997621B43D383138C0CB5D1F38C"><enum>(E)</enum><header>Conflicts with the Trust Indenture Act of 1939</header><text display-inline="yes-display-inline">To the extent that the provisions of this paragraph conflict with any provision of the Trust
Indenture Act of 1939, the provisions of the Trust Indenture Act of 1939
shall apply, but only to the extent of the conflict.</text>
</subparagraph><subparagraph id="H3D3E8054711A4E918B36982CB59695A7"><enum>(F)</enum><header>Study</header><text display-inline="yes-display-inline">Not later than 3 years after the date of enactment of this Act, Ginnie Mae shall—</text>
<clause id="H0D5208B5D93A4DBBBCA01C787E093B39"><enum>(i)</enum><text>conduct a study to evaluate—</text>
<subclause id="H2B91961CD0204A188E38084AA97E3EDB"><enum>(I)</enum><text display-inline="yes-display-inline">the structure of compensation for trustees of private label securities;</text>
</subclause><subclause id="H890838F66C1747A5868D8536EB068FEB"><enum>(II)</enum><text>any changes to such compensation attributable io the imposition of the fiduciary duty required
under this paragraph; and</text>
</subclause><subclause id="HA339599911D844D79587B992194503D4"><enum>(III)</enum><text display-inline="yes-display-inline">any effects of the imposition of such fiduciary duty on liquidity in the market for private label
securities;</text>
</subclause></clause><clause id="H8FFB32EC99FB4A2A8371BE8BBF1BFE8E"><enum>(ii)</enum><text>not later than 1 year after the commencement of the study required under clause (i), submit a
report to Congress describing any findings and conclusions of such study;</text>
</clause><clause id="H2A653BCBD01347E1B2432AAD933AC408"><enum>(iii)</enum><text>conduct a study to evaluate any effects of the imposition of the fiduciary duty required under this
paragraph upon borrowers, including if the imposition of' such fiduciary
duty results in additional costs and expenses to borrowers; and</text>
</clause><clause id="HD398D435215D454F8E28845C26C7BA90"><enum>(iv)</enum><text>not later than 1 year after the commencement of the study required under clause (iii), submit a
report to Congress describing any findings and conclusions of such study.</text>
</clause></subparagraph><subparagraph id="H1C3D9ED8619840ECAF934E7A2D9EF2DB"><enum>(G)</enum><header>Private label security defined</header><text>For purposes of this paragraph, the term <quote>private label security</quote> means a mortgage-backed security that is not issued by the Platform.</text>
</subparagraph></paragraph></subsection><subsection id="H592FE79F4AA64144BB8ACC713A99A77A"><enum>(d)</enum><header>Mandatory arbitration</header><text>Disputes between parties to a security issued by the Issuing Platform shall be subject to mandatory
arbitration.</text>
</subsection></section><section id="H97D4BE702F284399BCAB12F0E934BD3A"><enum>205.</enum><header>Federal Home Loan Banks</header>
<subsection id="H5877FD4564274EB19CA7472EF50DD5A4"><enum>(a)</enum><header>Membership of lenders</header><text display-inline="yes-display-inline">Section 4 of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1424">12 U.S.C. 1424</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H25112640A8734A01BB749EC18CF89990" style="OLC">
<subsection id="H08C91C21E0CC42EEB6474C3BA87EF713"><enum>(d)</enum><header>Lenders</header>
<paragraph id="HC728D244DB794EDB8495C1F96299D61F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Any lender that satisfies the requirements of subparagraphs (A) and (C) of subsection (a)(1) shall
be eligible to become a member of a Federal Home Loan Bank.</text>
</paragraph><paragraph id="H2AAE3ED30C5F4A07B81EBC85B4CBDFA2"><enum>(2)</enum><header>Stock requirement</header><text display-inline="yes-display-inline">Ginnie Mae shall issue regulations specifying that a separate class of stock shall be issued by
Federal Home Loan Banks to lenders who become a member of a Federal Home
Loan Bank pursuant to this subsection, and Ginnie Mae shall determine the
applicable restrictions and requirements for such stock.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD1F399BB321B456EBD0D9C44080BECC7"><enum>(b)</enum><header>Pooling services for eligible mortgages</header><text display-inline="yes-display-inline">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>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HF312C396FF2C44FC980C9ED811BA7D83" style="OLC">
<subsection id="H2147E2F139D7413489B24C76A6363639"><enum>(m)</enum><header>Pooling services for eligible mortgages</header>
<paragraph id="HC76231590B7648B89C49400752391ADE"><enum>(1)</enum><header>Pooling services</header><text display-inline="yes-display-inline">Each Federal Home Loan Bank shall provide pooling services to both members and non-members who wish
to pool eligible mortgages for purposes of securitizing such mortgages
through the Issuing Platform established by title II of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>.</text>
</paragraph><paragraph id="H94D03CE9247A494EA07EF37F653522C2"><enum>(2)</enum><header>Eligible mortgages defined</header><text>For purposes of this subsection, the term <quote>eligible mortgage</quote> has the meaning given that term under section 2 of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>III</enum><header>Wind down of Fannie Mae and Freddie Mac</header>
<section id="HD69CC03FA41D45A7AFCEB0AB46A05B48"><enum>301.</enum><header>Limitation on business</header><text display-inline="no-display-inline">The Director of the Government National Mortgage Association shall provide that, after the
certification date—</text>
<paragraph commented="no" id="H51F2DC1B65E34D9D9A54B6BC16DBAC06"><enum>(1)</enum><text>the enterprises may not issue, guarantee, or purchase any security backed by mortgages on 1- to
4-family residences except as specifically authorized by this Act;</text>
</paragraph><paragraph id="HDB2E424F60DF4529BA953C3C41F5588F"><enum>(2)</enum><text display-inline="yes-display-inline">an enterprise may act as a participating aggregator of eligible mortgages for securitization
pursuant to section 201 if such eligible mortgages are originated by
originators whose volume of such business is insufficient to allow for
such originators to aggregate and securitize such mortgages, until the
earlier of—</text>
<subparagraph id="HCCF4380416034A8D84F6A9A9E6C1D0AB"><enum>(A)</enum><text>such time as the Director determines that any other qualified entity or entities provide sufficient
market access to such originators under competitive rates and terms and
requires the enterprises to cease such business; or</text>
</subparagraph><subparagraph id="H63988C871D314F188259BDC4014D06DF"><enum>(B)</enum><text>the commencement of the receivership under section 304(a); and</text>
</subparagraph></paragraph><paragraph id="H4272E162F31A439596B43D4B83A3F29C"><enum>(3)</enum><text display-inline="yes-display-inline">an enterprise may act as a reinsurer for a mortgage-backed security in accordance with the
requirements under section 202(b) until the commencement of the
receivership under section 304(a).</text>
</paragraph></section><section id="H16AE6BDBBD1349ED96337024D26D6732"><enum>302.</enum><header>Risk-sharing pilot programs</header><text display-inline="no-display-inline">Not later than the expiration of the 12-month period beginning on the date of the enactment of this
Act, each enterprise shall establish a risk-sharing pilot program to
develop private sector first-loss positions on mortgage-backed securities.
Such first-loss positions shall be a percentage of the principal or face
value of a mortgage-backed security, as determined from time-to-time by
the Director, taking into consideration market conditions and the
capability of the private sector to assume credit risk.</text>
</section><section id="H086B7B208EDD4FACA4E012E74DDB6672"><enum>303.</enum><header>Continued conservatorship</header>
<subsection id="H4088CB549A134C628ACE9C6FA602152F"><enum>(a)</enum><header>Timing</header><text display-inline="yes-display-inline">The conservatorships of the enterprises in effect upon the enactment of this Act shall continue in
effect until the commencement of the receivership of the enterprises
pursuant to subsection (d), subject to the transfer under section
102(a)(1)(B).</text>
</subsection><subsection id="HEEFA4A82F504483E8D258AF72EF16AE5"><enum>(b)</enum><header>Aligning purposes of conservatorship</header><text>Notwithstanding 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>), after the date of the
enactment of this Act, the Director shall, as conservator of each
enterprise, take such actions as are necessary to manage the affairs,
assets, and obligations of each enterprise, and to operate each
enterprise, in compliance with this section.</text>
</subsection><subsection id="HC1FDB6C39D43441B9DC0D1E0CA9AF26D"><enum>(c)</enum><header>Return of enterprises to private market</header><text>During the term of the conservatorships of the enterprises, the Director shall—</text>
<paragraph id="H6392AD711F47496F89E36A52F940A51D"><enum>(1)</enum><text>carry out the conservatorship in a manner that furthers achievement of the goals and terms of the
mandatory receiverships under subsection (d)(2);</text>
</paragraph><paragraph id="H4C62BD7FFD6F4119B6D66419F8711052"><enum>(2)</enum><text display-inline="yes-display-inline">identify any assets of the enterprises necessary for Ginnie Mae to carry out its functions and
responsibilities under sections 201, 202, and 401 of this Act; and</text>
</paragraph><paragraph id="HD508C62C16AE413AA319919507E756AF"><enum>(3)</enum><text display-inline="yes-display-inline">prepare for the transfer of the multifamily housing finance business of the enterprises in
accordance with section 401 of this Act.</text>
</paragraph></subsection></section><section id="H8916E4FF4F114985A4E42DEA7C39ADC6"><enum>304.</enum><header>Mandatory receivership</header>
<subsection id="H25BA39299A2A44518CBFD30386B4EF26"><enum>(a)</enum><header>Commencement</header><text display-inline="yes-display-inline">The Director shall, with respect to each enterprise, immediately appoint the Ginnie Mae as receiver
under section 1367 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</external-xref>) upon the later of the following:</text>
<paragraph id="HA0BA2E2EC7444898A3DA4F25FC6855A5"><enum>(1)</enum><header>5-year period</header><text display-inline="yes-display-inline">The expiration of the 60-month period beginning on the date of the enactment of this Act, as the
duration of such period may be adjusted pursuant to subsection (c).</text>
</paragraph><paragraph id="H8D55F36E8E90435FBFB494C505D4FF98"><enum>(2)</enum><header>Platform certified as functional; competitive access for small lenders; FHLB capacity</header><text>The certification date has occurred and the Director has determined that—</text>
<subparagraph id="H9D0B48AA38A541798FB14AD647B9F3DC"><enum>(A)</enum><text>a competitive private housing finance market has been established;</text>
</subparagraph><subparagraph id="H6441EBF36D5F44EDA00B743DCE3CA1F5"><enum>(B)</enum><text display-inline="yes-display-inline">competitive and equitable access to the Platform for smaller mortgage lenders is available;</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H9B522367AF624DF18E79111B3567A3EE"><enum>(C)</enum><text display-inline="yes-display-inline">the pooling services offered by Federal Home Loan Banks pursuant to section 11(m) of the Federal
Home Loan Bank Act are competitive with services made available by the
enterprises before the certification date;</text>
</subparagraph><subparagraph id="H074C01BD64F3462589A702B6538554E1"><enum>(D)</enum><text>the Federal Home Loan Banks are capable of meeting the cash window needs of credit unions,
community and mid-sized depository institutions, and non-depository
mortgage originators with competitive rates and terms; and</text>
</subparagraph><subparagraph id="HEDF6CEA96E8140F79B7BDCC885A8FBE5"><enum>(E)</enum><text>the Federal Home Loan Banks have created a <quote>to be announced</quote> market that is viable in all economic cycles.</text>
</subparagraph></paragraph></subsection><subsection id="H479E12539DDF49C7AFDB095FC20D0AF7"><enum>(b)</enum><header>Goals and terms</header><text>Ginnie Mae shall carry out the receivership referred to in subsection (a) for the enterprise under
the authority of such section 1367, subject to the following requirements:</text>
<paragraph id="H57066204EEBA40F7A48ADB5AB09E32B0"><enum>(1)</enum><header>Goals</header><text>In carrying out the receivership of each enterprise, Ginnie Mae shall strive to achieve both of the
following goals:</text>
<subparagraph id="HED66C81512BD4DD494152F5A561BB591"><enum>(A)</enum><header>Return to taxpayers</header><text display-inline="yes-display-inline">Obtaining an adequate return of taxpayer investment in the enterprise, taking into consideration
the total cost to the taxpayers, the value provided to the enterprise, and
the risk and exposure to the Federal Government involved, together with
interest on such investment at a rate determined by the Director, in
consultation with the Board of Governors of the Federal Reserve System and
the Secretary of the Treasury.</text>
</subparagraph><subparagraph id="H0E4E93C69C494B6C8B6518D6CD715084"><enum>(B)</enum><header>Competitive private housing finance market</header><text display-inline="yes-display-inline">Removing barriers to private sector competition in the housing finance market by providing for the
transfer of the assets of the enterprise into the private sector to
compete in a functioning housing finance market.</text>
</subparagraph></paragraph><paragraph id="H6E996D59482D4A21BD77F4D4D04C4048"><enum>(2)</enum><header>Full privatization</header><text>Any entities emerging from such receivership shall be fully private and any obligations and
securities of such entities shall not constitute a debt or obligation of
the United States nor or any agency or instrumentality thereof.</text>
</paragraph><paragraph id="HF08B36811CE543819BDDD1FD21F394B7"><enum>(3)</enum><header>Multifamily housing business</header><text>The receivership shall provide, notwithstanding any other provision of this Act, for the transfer
of the multifamily housing mortgage guarantee business of the enterprises
in accordance with section 401 of this Act.</text>
</paragraph><paragraph id="H9AD7B9C1E442492395B30F8B05C32913"><enum>(4)</enum><header>Availability of assets</header><text>The receivership shall provide for—</text>
<subparagraph id="HB21937C784B84EA9A2D227315B853B9F"><enum>(A)</enum><text>the identification of any assets of the enterprise that are not necessary for the operation of the
limited-life entities established pursuant to paragraph (6); and</text>
</subparagraph><subparagraph id="HFBF286F3FD6C4C229DB4D69E46814E7C"><enum>(B)</enum><text>making such assets available at auction for acquisition by any private entities, which shall
include the private entities established pursuant to paragraph (6)(C).</text>
</subparagraph></paragraph><paragraph id="HD64F14A0058D428D9438C22AE248B861"><enum>(5)</enum><header>Restructuring of SPSPA</header><text>The receivership shall provide for the restructuring of the Senior Preferred Stock Purchase
Agreements entered into between the Department of the Treasury and the
enterprise on September 26, 2008, as amended and restated thereafter, to—</text>
<subparagraph id="HAE30155B3B044FC8ACAAA2DAA598E12C"><enum>(A)</enum><text>permit the redemption of senior preferred shares of the Department of the Treasury;</text>
</subparagraph><subparagraph id="H16DCE220E7A3402AB31E520B983E6F2A"><enum>(B)</enum><text>provide for the cancellation of the warrants for the purchase of common stock of the enterprises
issued to the Department of the Treasury; and</text>
</subparagraph><subparagraph id="HF80CBD49B3604851B61054268C9F7543"><enum>(C)</enum><text>provide for the appropriate level of compensation to the Federal Government for the financial
support and commitment provided to the enterprise.</text>
</subparagraph></paragraph><paragraph id="HD3AC64BC038142FBA8F9EE9FA88BD3F0"><enum>(6)</enum><header>Wind-down; limited-life enterprises; restructuring</header><text display-inline="yes-display-inline">Under the receivership—</text>
<subparagraph id="H3224306550904EE498A9106EE43B0613"><enum>(A)</enum><text>the receiver shall organize a limited-life regulated entity for the enterprise in accordance with
section 1367(i) 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(i)</external-xref>), except that—</text>
<clause id="HC9B235D0DD6746C593FA4116BE0EE84B"><enum>(i)</enum><text>any assets and liabilities of the enterprise that the receiver determines are necessary to allow
the limited-life regulated entity to operate independent from the
resolution of the enterprise shall be transferred to the limited-life
regulated entity; and</text>
</clause><clause id="H8ECC32655AAF4EB5B7C1AF1C83D0FE8A"><enum>(ii)</enum><text>in winding up the affairs of the limited-life regulated entity, the remaining assets of the
limited-life regulated entity shall be made available to the successor
entities established pursuant to subparagraph (C) of this paragraph and to
other private guarantors engaged in providing insurance for eligible
mortgage-backed securities in accordance with section 202;</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H0AE2EBA589974A5E9D84BE7E2D17E2D3"><enum>(B)</enum><text display-inline="yes-display-inline">the charter of the enterprise shall be repealed pursuant to section 1367(k) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4617(k)), as amended by section 305; and</text>
</subparagraph><subparagraph id="HCDD2409565464EEBB6ACFE9876DB8EAE"><enum>(C)</enum><text display-inline="yes-display-inline">the receiver shall provide for reorganization and chartering of the successor entity to the limited
life regulated entity for the enterprise as an entity established to
operate as an insurer under section 202(b)(2)(A) of this Act or a
participating aggregator of eligible mortgages for securitization pursuant
to section 201 if such eligible mortgages are originated by originators
whose volume of such business is insufficient to allow for such
originators to aggregate and securitize such mortgages.</text>
</subparagraph></paragraph></subsection><subsection id="HAF96AD6E88324416AA845C49EC101AE6"><enum>(c)</enum><header>Adjustment of timing</header><text display-inline="yes-display-inline">Ginnie Mae may adjust the duration of the period referred to in subsection (a)(1) by establishing
requirements to be met by market participants before such period may be
considered to be concluded. Such requirements may include requirements
regarding—</text>
<paragraph id="H1F7AF87DCFF64F39ADED931ECF317FE5"><enum>(1)</enum><text>ensuring that there is an adequate level of private capital available for efficient financing of
single-family and multifamily housing mortgages through—</text>
<subparagraph id="H85696FC09BF64F04A9AC5762743FB4EE"><enum>(A)</enum><text>the market for initial public offerings; and</text>
</subparagraph><subparagraph id="HBFB286F6154544A8A3A45857455EAA06"><enum>(B)</enum><text>retained earnings of market participants; and</text>
</subparagraph></paragraph><paragraph id="HF98D40CB6F1142178AE369C270B61E11"><enum>(2)</enum><text>ensuring that any anticompetitive liquidity advantages in mortgage-backed securities are adequately
protected against.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HFCA59537BF0A401E8F65AFDA6A502651"><enum>305.</enum><header>Repeal of enterprise charters</header><text display-inline="no-display-inline">Section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4617) is amended by striking subsection (k) and inserting the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HD2BFD719A7EC460FA1DB9C1423E91E15" style="OLC">
<subsection id="HE7FA64C1C555420E817DE671C8C0A4FC"><enum>(k)</enum><header>Repeal of enterprise charters</header>
<paragraph id="H4747A00C55AD48E6B7D8F44332CC3423"><enum>(1)</enum><header>Fannie Mae</header><text display-inline="yes-display-inline">Effective upon the certification date (as such term is defined in section 2 of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>), 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>
<subparagraph id="H4204A00192B949C69ABA30D67DB0B247"><enum>(A)</enum><text>outstanding debt obligations of the Federal National Mortgage Association, including any—</text>
<clause id="HF66D748B330B447BB677BB854CFE9AE6"><enum>(i)</enum><text>bonds, debentures, notes, or other similar instruments;</text>
</clause><clause id="HC1D17E6F6724492785CDE3DB91FB9A65"><enum>(ii)</enum><text>capital lease obligations; or</text>
</clause><clause id="H0F2065D7A85E45A3A0AA34DF09CDB036"><enum>(iii)</enum><text>obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or</text>
</clause></subparagraph><subparagraph id="HAD2E57720B6C45C2AA572BC1432D56E7"><enum>(B)</enum><text>mortgage-backed securities guaranteed by the Federal National Mortgage Association that are not
eligible mortgage-backed securities insured by Ginnie Mae pursuant to
section 202 of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>.</text>
</subparagraph></paragraph><paragraph id="H685D3F33F0DF49339A1B950D816BB19E"><enum>(2)</enum><header>Freddie Mac</header><text display-inline="yes-display-inline">Effective upon the 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>
<subparagraph id="H17E88613FF664510B73966B26CD1F7CF"><enum>(A)</enum><text>outstanding debt obligations of the Federal Home Loan Mortgage Corporation, including any—</text>
<clause id="H6BEBFE24D2E74CDF86BCB5C21A1B56F8"><enum>(i)</enum><text>bonds, debentures, notes, or other similar instruments;</text>
</clause><clause id="H273C0888D5E24F379B6900D2D4C9520B"><enum>(ii)</enum><text>capital lease obligations; or</text>
</clause><clause id="H37258544B09F40A78BFF1E6A8F41915A"><enum>(iii)</enum><text>obligations in respect of letters of credit, bankers’ acceptances, or other similar instruments; or</text>
</clause></subparagraph><subparagraph id="HE2C9F6D1B1E341CABBCF73ECC2D09291"><enum>(B)</enum><text display-inline="yes-display-inline">mortgage-backed securities guaranteed by the Federal Home Loan Mortgage Corporation that are not
eligible mortgage-backed securities insured by Ginnie Mae pursuant to
section 202 of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>.</text>
</subparagraph></paragraph><paragraph id="H7D71403D7FD9498594461E7E74B06FF2"><enum>(3)</enum><header>Existing guarantee obligations</header>
<subparagraph id="HE8E4E9878C054CE897B943FCF01834FD"><enum>(A)</enum><header>Explicit guarantee</header><text display-inline="yes-display-inline">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 in paragraph (1) or
(2).</text>
</subparagraph><subparagraph commented="no" id="HC316AAE8101E4CDFA43492354CDA39AF"><enum>(B)</enum><header>Continued dividend payments</header><text>Notwithstanding any other provision of law, provision 2(a) (relating to Dividend Payment Dates and
Dividend Periods) and provision 2(c) (relating to Dividend Rates and
Dividend Amount) of the Senior Preferred Stock Purchase Agreement, or any
provision of any certificate in connection with such Agreement creating or
designating the terms, powers, preferences, privileges, limitations, or
any other conditions of the Variable Liquidation Preference Senior
Preferred Stock of an enterprise issued pursuant to such Agreement—</text>
<clause commented="no" id="HCB7621BA2636479389C291391C0EE3CF"><enum>(i)</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 shall be
permitted; and</text>
</clause><clause commented="no" id="H0D003EDEA850490FAF098CEBAB878096"><enum>(ii)</enum><text>shall remain in effect until the guarantee obligations described under paragraphs (1)(B) and (2)(B)
of this subsection are fully extinguished.</text>
</clause></subparagraph><subparagraph id="HB95E966E91B74D55AAFE5733FD55B5BC"><enum>(C)</enum><header>Applicability</header><text display-inline="yes-display-inline">All guarantee fee amounts derived from the single-family mortgage guarantee business of the
enterprises in existence as of the certification date shall be subject to
the Senior Preferred Stock Purchase Agreement.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="H76C4AE515CF04534A3EA710D5A917DFC"><enum>(D)</enum><header>Senior Preferred Stock Purchase Agreement</header><text>For purposes of this paragraph, the term <term>Senior Preferred Stock Purchase Agreement</term> means—</text>
<clause id="H7F0515497405441C980294579BAD084C"><enum>(i)</enum><text>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</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC4CFA7DCCDA54391B8D64A64E885EA34"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="H2430BA60C2CC4E439DADD45142A921D9"><enum>(4)</enum><header>Swap option for new securities</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this subsection, Ginnie Mae shall provide that during the
30-year period beginning upon the certification date, any securities
described in paragraph (1)(B) or (2)(B) may be exchanged, at the request
of the holder of such security, for securities insured under section 202
of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title>, and Ginnie Mae shall ensure fungibility between such securities exchanged. Ginnie Mae may
establish such terms and conditions for such exchanges as Ginnie Mae
considers appropriate, except that Ginnie Mae shall provide that in such
exchanges such securities described in paragraph (1)(B) or (2)(B) shall
receive a risk weight of zero.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HCE68376348A943DE912690DF71B6AC5D"><enum>306.</enum><header>Ginnie Mae authority regarding timing</header>
<subsection id="H0E992E834B9C47949A1A0B804295FC8D"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">The Director may extend any deadline referred to in section 301, 303(a), 304(a), or the provisions
amended by section 305, as provided in such subsection (b) of this
section, but only if the Director—</text>
<paragraph id="H2E853D4ACC9641B1AFEEFA79C5E874B2"><enum>(1)</enum><text display-inline="yes-display-inline">makes a determination, after consultation with the Board of Governors of the Federal Reserve
System, that such deadline is posing significant risk to the housing
market; and</text>
</paragraph><paragraph id="H90DDC8AB8E83431BA9D644D6CACFAAEF"><enum>(2)</enum><text>causes notice of such determination to be published in the Federal Register.</text>
</paragraph></subsection><subsection id="H0925DB159D234A95AE5C82595744C516"><enum>(b)</enum><header>Extensions</header>
<paragraph id="HB59971C871C84A80BCFBA2F68914DA45"><enum>(1)</enum><header>First extension</header><text>The first extension of any deadline pursuant to subsection (a) shall be for a period of an
additional 2 years.</text>
</paragraph><paragraph id="H07F75A04C34A431FA758030BDA4142D5"><enum>(2)</enum><header>Second extension</header><text>If, after the expiration of a first extension of a deadline of 2 years, the Director makes a
determination as provided in subsection (a)(1), the Director may extend
the deadline an additional 2 years.</text>
</paragraph><paragraph id="HF4B5DFD03C73467E8828E04323D11568"><enum>(3)</enum><header>Additional extensions</header><text>If, after the expiration of the second extension of a deadline of 2 years, the Director makes a
determination as provided in subsection (a)(1), the Director may, 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 the Housing and Urban Development, extend the deadline an
additional year, and annually thereafter utilizing the same process
described in this paragraph until such time as the Director makes a
determination that such deadline does not pose a significant risk to the
housing market.</text>
</paragraph></subsection><subsection id="H967FC036F481408594B8F56D33D96645"><enum>(c)</enum><header>Reports</header><text>If the Director extends any deadline period pursuant to the authority under subsection (a), the
Director shall thereafter, until the expiration of the periods referred to
in paragraphs (1) and (2) of section 1367(k) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (as such period may
be extended pursuant to this section), submit a report to the Congress on
a monthly basis regarding the transition of the enterprises pursuant to
this section, the status of the business of the enterprises, and the
market share of the enterprises.</text>
</subsection></section><enum>IV</enum><header>Multifamily housing finance</header>
<section display-inline="no-display-inline" id="H58FA540C3A1242D1ACCD8C3608080026"><enum>401.</enum><header>Establishment of multifamily subsidiaries</header>
<subsection id="HB3AF344FD70A4E35ACE4231DDE38F100"><enum>(a)</enum><header>Formation and governance of multifamily subsidiaries</header>
<paragraph id="H967DB33E2EFB4ED7B616FAEF4C1E5FC2"><enum>(1)</enum><header>Federal National Mortgage Association</header>
<subparagraph id="H3C8EF00AD7FD49198C5A27729F831378"><enum>(A)</enum><header>Multifamily subsidiary plan</header><text display-inline="yes-display-inline">The Director of Ginnie Mae, in consultation with the Secretary of the Treasury, shall direct the
Federal National Mortgage Association to develop a plan, not later than
180 days after the date of enactment of this Act, to establish a
multifamily subsidiary for purposes of expeditiously—</text>
<clause commented="no" id="H9623B5A4239046BFA0F5D684D8B75A51"><enum>(i)</enum><text>providing sufficient multifamily financing in the primary, secondary, and tertiary geographical
markets, including in rural markets and through a diversity of experienced
multifamily lenders; and</text>
</clause><clause commented="no" id="H74C1A840281B46A8B7FF40F41B4D4193"><enum>(ii)</enum><text display-inline="yes-display-inline">establishing a competitive multifamily market for multifamily housing guarantors engaging in
multifamily covered securities.</text>
</clause></subparagraph><subparagraph id="H5ABDA9DCB4C34EEB82BEE263E1637D08"><enum>(B)</enum><header>Establishment of multifamily subsidiary</header><text>The Director shall direct the Federal National Mortgage Association to establish a multifamily
subsidiary not later than 1 year after the date of enactment of this Act.</text>
</subparagraph></paragraph><paragraph id="HA09CFEF217224E2A89F72A5718EDF695"><enum>(2)</enum><header>Federal Home Loan Mortgage Corporation</header>
<subparagraph id="H686E5E98625E4D1E8865275DC75D91FB"><enum>(A)</enum><header>Multifamily subsidiary plan</header><text>The Director, in consultation with the Secretary of the Treasury, shall direct the Federal Home
Loan Mortgage Corporation to develop a plan, not later than 180 days after
the date of enactment of this Act, to establish a multifamily subsidiary
for purposes of expeditiously—</text>
<clause commented="no" id="HAB47A94150BB43D8A2124A88878B3109"><enum>(i)</enum><text>providing sufficient multifamily financing in the primary, secondary, and tertiary geographical
markets, including in rural markets and through a diversity of experienced
multifamily lenders; and</text>
</clause><clause commented="no" id="HE3BA8C0EDE044FC3BC0DFC100C4EFB4F"><enum>(ii)</enum><text display-inline="yes-display-inline">establishing a competitive multifamily market for multifamily housing guarantors engaging in
multifamily covered securities.</text>
</clause></subparagraph><subparagraph id="H7845B1B1B64E453BA55402C160502E1F"><enum>(B)</enum><header>Establishment of multifamily subsidiary</header><text>The Director shall direct the Federal Home Loan Mortgage Corporation to establish a multifamily
subsidiary not later than 1 year after the date of enactment of this Act.</text>
</subparagraph></paragraph></subsection><subsection id="H4B91C5A323EA40F09AD3400A0D7A446C"><enum>(b)</enum><header>Transfer of functions</header>
<paragraph id="HF1975C9D61B74887B39E0A5A5212FC2B"><enum>(1)</enum><header>Fannie Mae multifamily subsidiary</header>
<subparagraph id="H6CB0E0C17F134B8EBFDD79195446FEED"><enum>(A)</enum><header>In general</header><text>Notwithstanding the provisions under title III or any other provision of law, effective on the date
on which the multifamily subsidiary is established under subsection
(a)(1)(B), all employees, functions, activities, infrastructure, property,
including the Delegated Underwriting and Servicing Lender Program and
other intellectual property, platforms, technology, or any other object or
service of the Federal National Mortgage Association necessary to the
support, maintenance, and operation of the multifamily business of the
Federal National Mortgage Association shall be transferred and
contributed, without cost, to the multifamily subsidiary.</text>
</subparagraph><subparagraph id="H1A9ADCA1233E473CA901D17086CC7401"><enum>(B)</enum><header>Capital contribution</header><text>In connection with the transfer required under subparagraph (A), the Federal National Mortgage
Association shall contribute, in any form or manner the Director may
determine, subject to the approval right of the Secretary of the Treasury
in the Senior Preferred Stock Purchase Agreement, any capital necessary to
ensure that the multifamily subsidiary established under subsection
(a)(1)(B) has, in the determination of the Director, sufficient capital to
carry out its multifamily business, including the ability to obtain
warehouse lines of credit.</text>
</subparagraph><subparagraph id="H9C1BD94059D340528265C19EF1D48A8B"><enum>(C)</enum><header>Ensuring continuation of ongoing operation of multifamily business</header>
<clause id="H56247F01A0D940AAB0DEE50A4DDCF097"><enum>(i)</enum><header>In general</header><text>In carrying out the multifamily business transferred pursuant to subparagraph (A), the multifamily
subsidiary established under subsection (a)(1)(B) shall ensure that any
such business continues to operate, as applicable, consistent with—</text>
<subclause id="HA8CBC956811543E199FC55054CDB1890"><enum>(I)</enum><text>the Delegated Underwriting and Servicing Lender Program established by the Federal National
Mortgage Association;</text>
</subclause><subclause id="HE0432F1B2086474EA4594E31B81DFE40"><enum>(II)</enum><text>any other programs, activities, and contractual agreements of the enterprises that support the
enterprises' provision of liquidity to the multifamily housing market; and</text>
</subclause><subclause id="HFE3916FF72074C919E0F2A103829A946"><enum>(III)</enum><text>the provisions of this title.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="HFDD8FEF0D59D41A78E659E9C6793D816"><enum>(2)</enum><header>Freddie Mac multifamily subsidiary</header>
<subparagraph id="H3FDB43A00BF64860A06A416A2F03C95E"><enum>(A)</enum><header>In general</header><text>Notwithstanding the provisions under title VI or any other provision of law, effective on the date
on which the multifamily subsidiary is established under subsection
(a)(2)(B), all employees, functions, activities, infrastructure, property,
including the Capital Market Execution Program Series K Structured
2Pass-Through Certificates originated and offered under the Program Plus
Lender Program and other intellectual property, platforms, technology, or
any other object or service of the Federal Home Loan Mortgage Corporation
necessary to the support, maintenance, and operation of the multifamily
business of the Federal Home Loan Mortgage Corporation shall be
transferred and contributed, without cost, to the multifamily subsidiary.</text>
</subparagraph><subparagraph id="HFB69E22D0A97457DABCAF88A89806A0D"><enum>(B)</enum><header>Capital contribution</header><text>In connection with the transfer required under subparagraph (A), the Federal Home Loan Mortgage
Corporation shall contribute, in any form or manner the Director may
determine, subject to the approval right of the Secretary of the Treasury
in the Senior Preferred Stock Purchase Agreement, any capital necessary to
ensure that the multifamily subsidiary established under subsection
(a)(2)(B) has, in the determination of the Director, sufficient capital to
carry out its multifamily business, including the ability to obtain
warehouse lines of credit.</text>
</subparagraph><subparagraph id="H64D6E59F2C0B4B14A6BD35F4A4ED6916"><enum>(C)</enum><header>Ensuring continuation of ongoing operation of multifamily business</header>
<clause id="HCB15BE6027A441C7B5C8BC497CB8EBE6"><enum>(i)</enum><header>In general</header><text>In carrying out the multifamily business transferred pursuant to subparagraph (A), the multifamily
subsidiary established under subsection (a)(2)(B) shall ensure that any
such business continues to operate, as applicable, consistent with—</text>
<subclause id="HD82DD126064048BBB95E7AFED091C5F9"><enum>(I)</enum><text>the Capital Market Execution Program Series K Structured 2Pass-Through Certificates originated and
offered under the Program Plus Lender Program established by the Federal
Home Loan Mortgage Corporation;</text>
</subclause><subclause id="HD2BF2A6ED4BB46D7A383168A384BF7B8"><enum>(II)</enum><text>any other programs, activities, and contractual agreements of the enterprises that support the
enterprises' provision of liquidity to the multifamily housing market; and</text>
</subclause><subclause id="HB4B98C19959A4F948B0709CCCFB209B8"><enum>(III)</enum><text>the provisions of this title.</text>
</subclause></clause></subparagraph></paragraph></subsection><subsection id="H485F8BD5CB1F4579A38F8B05FEF9621E"><enum>(c)</enum><header>Multifamily subsidiaries</header>
<paragraph id="HC21522CEFFFB4D06BDC64EEE6700D3AC"><enum>(1)</enum><header>In general</header><text>The multifamily subsidiaries established by the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation under subsection (a) may retain a
limited multifamily mortgage loan portfolio to—</text>
<subparagraph id="H28477C5D2E1F470282B2B371E6DEBEEE"><enum>(A)</enum><text>aggregate mortgage loans for pooled securities executions;</text>
</subparagraph><subparagraph id="H3241D8BE0B2F433E80201BDC9CEC6C45"><enum>(B)</enum><text>implement pilot mortgage loan programs and other risk-sharing transactions and product modification
testing;</text>
</subparagraph><subparagraph id="HC6B8579ADAD44D3DAF83C0F06086841B"><enum>(C)</enum><text>engage in the financing of properties with rent-regulatory restrictions, off-campus student
housing, and senior and assisted living developments; and</text>
</subparagraph><subparagraph id="H8FC912A7739D4346B4ED49132A0650E2"><enum>(D)</enum><text>perform additional activities as may be established by the Director for the purpose of facilitating
the continuation of existing multifamily activities.</text>
</subparagraph></paragraph><paragraph id="HD890F71118374862A69CCEB5C777A373"><enum>(2)</enum><header>Portfolio reduction applicability</header><text>For purposes of expeditiously meeting the criteria under clauses (i) and (ii) of paragraphs (1)(A)
and (2)(A) of subsection (a), the multifamily subsidiaries established
under subsection (a) shall not be subject to any portfolio reduction
required under title III.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H028FD3EE69754A348164EB855F19ECA6" section-type="subsequent-section"><enum>402.</enum><header>Disposition of multifamily businesses</header>
<subsection id="HC3C53DC5DEC44DE096D34BD2990192FA"><enum>(a)</enum><header>Authority To manage disposition of multifamily businesses</header><text>Notwithstanding any provision of title III or any other provision of law, the Director may, on or
before the certification date, manage the sale, transfer, or disposition
for value of property, including intellectual property, technology,
platforms, and legacy systems, infrastructure and processes of an
enterprise relating to the operation and maintenance of the multifamily
business of an enterprise.</text>
</subsection><subsection id="H25741EDDAA6E4866A61438215F890EBE"><enum>(b)</enum><header>Required establishment of well-Functioning multifamily covered security market</header><text>In exercising the authority in subsection (a), the Director shall manage any disposition of the
multifamily business of an enterprise in a manner consistent with—</text>
<paragraph id="H28D962F113EA4A688B1E9715A7F7FBE2"><enum>(1)</enum><text>the establishment of a well-functioning multifamily covered security market;</text>
</paragraph><paragraph commented="no" id="H2A1C27624A6A459083B07A787A8F6D93"><enum>(2)</enum><text>the provision of broad access to multifamily financing; and</text>
</paragraph><paragraph id="HB506310FC9E74EC68F3C58714440B0B5"><enum>(3)</enum><text>facilitating competition in the multifamily covered security market by—</text>
<subparagraph id="H49C741A5A59C4982878D878E95CEC4A7"><enum>(A)</enum><text>providing open access to performance information on the legacy multifamily business of an
enterprise;</text>
</subparagraph><subparagraph id="H292FA6810AF240508B776B32135B3CA1"><enum>(B)</enum><text>providing for reasonable licensing of the multifamily proprietary systems of an enterprise; and</text>
</subparagraph><subparagraph id="H9B66F04AB7454C408C4B2A3B9E79B67F"><enum>(C)</enum><text>setting market share limitations, fees, or additional capital standards on multifamily business
assets that were sold, transferred, or disposed.</text>
</subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="HB7BCF2C97E8445E9BF151545F154B6C3" section-type="subsequent-section"><enum>403.</enum><header>Approval and supervision of multifamily guarantors</header>
<subsection id="H0CB20DC1EF9F4D22975F889F09A72A7E"><enum>(a)</enum><header>In general</header><text>The Director shall develop, adopt, publish, and enforce standards for the approval by the Director
of multifamily guarantors to—</text>
<paragraph id="HB1E0B55BFA4D49ED87603929A76C608C"><enum>(1)</enum><text>issue securities collateralized by eligible multifamily mortgage loans; and</text>
</paragraph><paragraph id="H9425A6AF007F4DBD9ADC6007353AE2B4"><enum>(2)</enum><text>guarantee the timely payment of principal and interest on such securities collateralized by
eligible multifamily mortgage loans and insured by Ginnie Mae.</text>
</paragraph></subsection><subsection id="H690E5F5BC30046B38595173B69B7103B"><enum>(b)</enum><header>Required standards</header><text>The standards required under paragraph (1) shall include standards sufficient to ensure that—</text>
<paragraph id="H7C8ADBF8E9264EEF851B44DD3A6906CF"><enum>(1)</enum><text>each multifamily guarantor is well-capitalized; and</text>
</paragraph><paragraph id="HE7752B8570FE42EC86A7E1EFF781F84C"><enum>(2)</enum><text display-inline="yes-display-inline">credit risk-sharing levels under any such guarantees are commensurate with such levels under the
Delegated Underwriting and Servicing Lender Program of the Federal
National Mortgage Association and the Capital Market Execution Program
Series K Structured 2Pass-Through Certificates originated and offered
under the Program Plus Lender Program of the Federal Home Loan Mortgage
Corporation.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H8B427E9FA612450A9347CBE70FB213FD"><enum>(c)</enum><header>Pricing</header><text>Ginnie Mae shall charge a guarantee fee for guarantees provided pursuant to this section and such
fee shall be determined by Ginnie Mae—</text>
<paragraph id="H85340F0753874A35ADB0275AB8029467"><enum>(1)</enum><text>in the same manner and using the same procedures used pursuant to title II to determine guarantee
fees for securities backed by single-family housing mortgages, with such
changes as Ginnie Mae determines to be necessary to account for the
differences between the single-family guarantee business and the
multifamily guarantee business; and</text>
</paragraph><paragraph id="HD7734B257AEC44FCBA0D08AC4BDD6774"><enum>(2)</enum><text display-inline="yes-display-inline">taking into account the differences between the guarantee fees structures of the Federal National
Mortgage Association and the Federal Home Loan Mortgage Corporation.</text>
</paragraph></subsection><subsection id="HBCAC4CD3740F4BA9A13E04D96918D930"><enum>(d)</enum><header>Distinctions</header><text display-inline="yes-display-inline">The Director shall take into account, in carrying out this section, in providing any issuing
platform, and in establishing any requirements relating to the guarantee
of securities collateralized by eligible multifamily mortgage loans, the
particular nature and characteristics of such securities and loans, as
distinguished from eligible mortgages and securities guaranteed pursuant
to title II, and as may be necessary to accommodate the multifamily
housing financing market.</text>
</subsection></section><section id="HFE2B83DAEB27408CA571DAB257DBC3EC"><enum>404.</enum><header>Other forms of multifamily risk-sharing</header><text display-inline="no-display-inline">The Director may establish such other methods and manner of risk-sharing and risk transfer relating
eligible multifamily mortgage loans, in addition to the methods and
manners authorized under this title, as may be appropriate taking into
consideration the particular nature and characteristics of the multifamily
housing finance market, which may include any risk-sharing activities of
the Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation relating to the multifamily housing business.</text>
</section><section id="H79BAE1412CFB4A6C999F9B495038DC51"><enum>405.</enum><header>Ginnie Mae securitization of FHA risk-sharing loans</header>
<subsection id="H5EB8A040D0CE408582DC10EFEBC52157"><enum>(a)</enum><header>Qualified participating entities risk-Sharing program</header><text display-inline="yes-display-inline">Paragraph (8) of section 542(b) of the Housing and Community Development Act of 1992 (12 U.S.C.
1715z–22(b)(8)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HCB975208659640FCBF98F22A25000C44" style="OLC">
<paragraph id="HA82450D2DA784A5F8EDA923498356739"><enum>(8)</enum><header>Ginnie mae securitization</header>
<subparagraph id="HE8FA769265D9436D87555BA7B27BA04F"><enum>(A)</enum><header>Prohibition</header><text display-inline="yes-display-inline">The Government National Mortgage Association shall not securitize any multifamily loans insured or
reinsured under this subsection, except as provided in subparagraph (B).</text>
</subparagraph><subparagraph id="HF7FF170DB821475BB6EECDA11031E878"><enum>(B)</enum><header>Authority</header><text>The Government National Mortgage Association may, at the discretion of the Director of Ginnie Mae,
securitize any multifamily loan, provided that—</text>
<clause id="HCD4DE1DCBB944BA8801C5EA9C4568994"><enum>(i)</enum><text>the Federal Housing Administration provides mortgage insurance based on the unpaid principal
balance of the loan, as shall be described in the risk-sharing agreement;</text>
</clause><clause id="H4D14DEF7C9E84164A7CED1069A7D9DDA"><enum>(ii)</enum><text>the Federal Housing Administration shall not require an assignment fee for mortgage insurance
claims related to the securitized mortgages; and</text>
</clause><clause id="H4C1F2C476D3545439E01CB6693414A35"><enum>(iii)</enum><text>any successors and assigns of the risk-sharing partner (including the holders of credit instruments
issued under a trust mortgage or deed of trust pursuant to which such
holders act by and through a trustee therein named) shall not assume any
obligation under the risk-sharing agreement and may assign any defaulted
loan to the Federal Housing Administration in exchange for payment of the
mortgage insurance claim.</text></clause><continuation-text continuation-text-level="subparagraph">The risk-sharing agreement shall provide for reimbursement to Ginnie Mae by the risk-sharing
partner or partners for either all or a portion of the losses incurred on
the loans insured.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBA077397E8D941BDBCF381A291CA6654"><enum>(b)</enum><header>Authority</header><text display-inline="yes-display-inline">Paragraph (6) of section 542(c) of the Housing and Community Development Act of 1992 (12 U.S.C.
1715z–22(c)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H39E77EBB6B0944DD8639BFBD49E57F9E" style="OLC">
<paragraph id="H94D9A3A166E84854A6E60F06392C6BAC"><enum>(6)</enum><header>Ginnie Mae securitization</header><text display-inline="yes-display-inline">The Government National Mortgage Association may, at the discretion of the Director of Ginnie Mae,
securitize any multifamily loan insured under this subsection, provided
that—</text>
<subparagraph id="HCB26BCAEF1ED4C7CB18A9E6F1099E24B"><enum>(A)</enum><text display-inline="yes-display-inline">the Federal Housing Administration provides mortgage insurance based on the unpaid principal
balance of the loan, as shall be described by regulation;</text>
</subparagraph><subparagraph id="H9391152E10A2422DB14EA89957FFC33D"><enum>(B)</enum><text>the Federal Housing Administration shall not require an assignment fee for mortgage insurance
claims related to the securitized mortgages; and</text>
</subparagraph><subparagraph id="H46C43450F70B4AB6B4032A62C0B580CB"><enum>(C)</enum><text>any successors and assigns of the risk-sharing partner (including the holders of credit instruments
issued under a trust mortgage or deed of trust pursuant to which such
holders act by and through a trustee therein named) shall not assume any
obligation under the risk-sharing agreement and may assign any defaulted
loan to the Federal Housing Administration in exchange for payment of the
mortgage insurance claim.</text></subparagraph><continuation-text continuation-text-level="paragraph">The risk-sharing agreement shall provide for reimbursement to Ginnie Mae by the risk-sharing
partner or partners for either all or a portion of the losses incurred on
the loans insured.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6AAB9AAF847F489591C1AD805875116C"><enum>(c)</enum><header>Amendment to Ginnie Mae charter act</header><text display-inline="yes-display-inline">Clause (ii) of the first sentence of section 306(g)(1) of the National Housing Act (12 U.S.C.
1721(g)(1)) is amended—</text>
<paragraph id="H21344F9756534B22859CD309055EEA23"><enum>(1)</enum><text>by striking the semicolon and inserting a comma; and</text>
</paragraph><paragraph id="H2ACDF4FFB31E4BE2B938C3A7A4DF1DE1"><enum>(2)</enum><text>by inserting before the period at the end the following: <quote>, or which are insured under subsection (b) or (c) of section 542 of the Housing and Community
Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-22">12 U.S.C. 1715z–22</external-xref>), subject to the terms of
paragraph (8) or (6), respectively, of such subsection</quote>.</text>
</paragraph></subsection></section><enum>V</enum><header>Affordable Housing</header>
<section id="H8921A9F6C15D43D9B1FCB618392B5012"><enum>501.</enum><header>Affordable housing allocations</header>
<subsection id="HAF70E6C710244CC9807FDAED37E94A8D"><enum>(a)</enum><header>Fee and allocation of amounts</header><text display-inline="yes-display-inline">In addition to any fees for the provision of insurance established in accordance with title II, in
each fiscal year the Platform shall—</text>
<paragraph id="H57F37DB20B0D45D28B6A4C48A91E4E6D"><enum>(1)</enum><text display-inline="yes-display-inline">charge and collect a fee in an amount equal to 10 basis points for each dollar of the outstanding
principal balance of—</text>
<subparagraph id="H753CB0A37D804687BA8572B0B212386E"><enum>(A)</enum><text>all eligible mortgage loans that collateralize securities insured under this Act; and</text>
</subparagraph><subparagraph id="HC53103B64CDA4B72B327E828970F6602"><enum>(B)</enum><text>all other mortgage loans that collateralize securities on which Ginnie Mae guarantees the timely
payment of principal and interest pursuant to title III of the National
Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1716">12 U.S.C. 1716 et seq.</external-xref>); and</text>
</subparagraph></paragraph><paragraph id="H765C77F051CC4FCBBF1D1A8EE4833461"><enum>(2)</enum><text display-inline="yes-display-inline">allocate or otherwise transfer, on an annual basis—</text>
<subparagraph id="H8286DB1E49BA4795BD2C7C4228A980FF"><enum>(A)</enum><text display-inline="yes-display-inline">75 percent of such fee amounts to the Secretary of Housing and Urban Development to fund the
Housing Trust Fund established under section 1338 of the Safety and
Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>);</text>
</subparagraph><subparagraph id="HC4DF61CCCD8C43C0ACDC71693F323E35"><enum>(B)</enum><text display-inline="yes-display-inline">15 percent of such fee amounts to the Secretary of the Treasury to fund the Capital Magnet Fund
established under section 1339 of the Safety and Soundness Act (12 U.S.C.
4569); and</text>
</subparagraph><subparagraph id="H9D099168DFF74031B04680B238228B10"><enum>(C)</enum><text display-inline="yes-display-inline">10 percent of such fee amounts to the Ginnie Mae to fund the Market Access Fund established under
section 504 of this Act.</text>
</subparagraph></paragraph></subsection><subsection id="HCE7E2B2141CD42BA87908A60D778B39A"><enum>(b)</enum><header>Continuing obligation</header><text>The fee required to be charged under subsection (a) shall be collected for the life of the
security.</text>
</subsection><subsection id="H6424BC617A7F49738CAE3212E6AE980A"><enum>(c)</enum><header>Suspension of contributions</header><text display-inline="yes-display-inline">The Director may temporarily suspend, for an initial period of one year, allocations under
subsection (a)(2) upon the submission by the Director to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives of a written
determination by the Director that such allocations are contributing, or
would contribute, to the financial instability of the insurance Fund
established under section 202(g). The Director may continue such
suspension for additional periods, each up to one year in length, pursuant
to the same submission and determination requirements.</text>
</subsection><subsection id="H69736CE47CA241839B65B89143CF18E8"><enum>(d)</enum><header>Rule of construction</header><text>The cost of the fee required to be charged under subsection (a) shall not be borne by eligible
borrowers.</text>
</subsection></section><section display-inline="no-display-inline" id="H218DF90805F840F3A9D0EB75CE2C3987" section-type="subsequent-section"><enum>502.</enum><header>Housing Trust Fund</header><text display-inline="no-display-inline">Section 1338 of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4568">12 U.S.C. 4568</external-xref>) is amended—</text>
<paragraph id="HD6AB2218728B4C5F811AB26164EC40C3"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1)—</text>
<subparagraph id="H4BD9035C764147AAB947486AEA7F3C9E"><enum>(A)</enum><text display-inline="yes-display-inline">in the first sentence, by inserting <quote>or pursuant to section 501 of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title></quote> after <quote>section 1337</quote>; and</text>
</subparagraph><subparagraph id="HAC1D1540E9604D638D61CD2889F934BB"><enum>(B)</enum><text>in the second sentence, by inserting <quote>federally-recognized tribes and</quote> after <quote>grants to</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="HEF70679FF8DF4DC59F32856534131D76"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (b) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H47CCB87DF0B5415F84CFFE3B2D53A94E" style="OLC">
<subsection id="HBB55F6A442374DBA88B855A0B5510AA3"><enum>(b)</enum><text>[Reserved.]</text></subsection><after-quoted-block>; </after-quoted-block></quoted-block>
</paragraph><paragraph id="HCF50930EC2AC49279FB3F90385E6A84B"><enum>(3)</enum><text>in subsection (c)—</text>
<subparagraph id="H89EE687AECCB44AEA1BA84E04674181B"><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="H435F85CFFB0A4C0A8FABF1DD54144CA4"><enum>(B)</enum><text>in paragraph (2)—</text>
<clause id="H32F0FFB77B5D40839239762FCE414450"><enum>(i)</enum><text>by striking <quote>(as such term is defined in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1997 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>))</quote>; and</text>
</clause><clause id="H572EEB344F654EEEA20B3DEEA2B9C124"><enum>(ii)</enum><text>by adding at the end the following: <quote>An Indian tribe receiving grant amounts under this subsection may designate a federally recognized
tribe or a tribally designated housing entity to receive such grant
amounts. Nothing in this subsection shall limit or be construed to limit
the ability of an Indian tribe or a tribally designated housing entity
from being a permissible designated recipient of grant amounts provided by
a State under this section.</quote>;</text>
</clause></subparagraph><subparagraph id="HE8FECBC22696458E93440B6BEA5C1BDC"><enum>(C)</enum><text>in paragraph (3)—</text>
<clause id="HDCF8D577F20A4483BC4BF42CDBA8773B"><enum>(i)</enum><text>in the heading, by inserting <quote><header-in-text level="paragraph" style="OLC">Indian tribes and</header-in-text></quote> before <quote><header-in-text level="paragraph" style="OLC">States</header-in-text></quote>;</text>
</clause><clause id="H31FCA5C30B7D4FFBAE37045BF2976246"><enum>(ii)</enum><text>in subparagraph (A), by striking <quote>The Secretary shall</quote> and insert the following:</text>
<quoted-block display-inline="no-display-inline" id="H6A0872563F14410C90009259559B4F4C" style="OLC">
<clause id="H3FDFE252447D490D8D4F4B1372FDFDBD"><enum>(i)</enum><header>Minimum tribal distributions</header>
<subclause id="HD0E1235B7B6E493EBD5F893BF762BEB6"><enum>(I)</enum><header>In general</header><text>The Secretary, acting through the Office of Native American Programs, shall distribute via
competitive grants the amounts determined under subclause (II) and made
available under this subsection to federally recognized tribes and
tribally designated housing entities.</text>
</subclause><subclause id="H93618D04F08C425B990FC5841A055172"><enum>(II)</enum><header>Amounts</header><text>The total amount required to be distributed under this subclause for a fiscal year shall be the
greater of $20,000,000, or 2 percent of the total amount of amounts
allocated for the Housing Trust Fund under this section.</text>
</subclause><subclause id="HC425237201674D839CFD7D4BCC542670"><enum>(III)</enum><header>Use of amounts</header><text>Competitive grant amounts received by a federally recognized tribe or a tribally designated housing
entity under this clause may be used, or committed to use, only for those
activities that are identified as eligible affordable housing activities
under section 202 of the Native American Housing Assistance and
Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4132">25 U.S.C. 4132</external-xref>).</text>
</subclause><subclause id="H784296AE65D7449ABF848636E1B7E91D"><enum>(IV)</enum><header>Evaluation of applications</header>
<item id="H4C273D5C4AF84329AF0F69B029EAEE96"><enum>(aa)</enum><header>In general</header><text>In evaluating any application for the receipt of competitive grant amounts authorized under this
clause, the Secretary, acting through the Office of Native American
Programs, shall consider with respect to the federally recognized tribe
applicant or tribally designated housing entity applicant and to Indian
reservations and other Indian areas associated with the federally
recognized tribe applicant or served by the tribally designated housing
entity applicant evaluation criteria, including the following:</text>
<subitem id="HF44755FACAD247C8BFAD41A69F77FC83"><enum>(AA)</enum><text>Level of poverty on the Indian reservation or in the Indian area.</text>
</subitem><subitem id="HFFA10E9AD214464487899E25508B60B4"><enum>(BB)</enum><text>Level of unemployment on the Indian reservation or in the Indian area.</text>
</subitem><subitem id="H60092B274DEF474FA767565DC0D31900"><enum>(CC)</enum><text>Condition of housing stock on the Indian reservation or in the Indian area.</text>
</subitem><subitem id="H52D791CA7FFB4BF8922B34F50710B940"><enum>(DD)</enum><text>Level of overcrowded housing on the Indian reservation or in the Indian area, as measured by the
number of households in which the number of persons per room is greater
than one.</text>
</subitem><subitem id="H9A21AD1AD4F647038BB433AB8AF378D2"><enum>(EE)</enum><text>Presence and prevalence of black mold on the Indian reservation or in the Indian area.</text>
</subitem><subitem id="H5EAB6019429F4C04878EE13049EE83D1"><enum>(FF)</enum><text>Demonstrated experience, capacity, and ability of the applicant to manage affordable housing
programs, including multifamily rental housing programs, homeownership
programs, and programs to assist purchasers with down payments, closing
costs, or interest rate buy-downs.</text>
</subitem><subitem id="HC635E550FD9F4C379B420CAAF266B5D1"><enum>(GG)</enum><text>Demonstrated ability of the applicant to meet the requirements under the Native American Housing
Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4101">25 U.S.C. 4101 et seq.</external-xref>),
including the timely and efficient expenditure of funds.</text>
</subitem><subitem id="HE21D8398378F449EAE0458E8921E224B"><enum>(HH)</enum><text>Such other criteria as may be specified by the Secretary in order to evaluate the overall quality
of the proposed project, the feasibility of the proposed project, and
whether the proposed project will address the housing needs on the Indian
reservation or in the Indian area.</text>
</subitem></item><item id="H5C8A239EE3A14ABE8699DB8BB1AC0472"><enum>(bb)</enum><header>Review of data</header><text>In evaluating any application for the receipt of competitive grant amounts authorized under this
clause, the Secretary, acting through the Office of Native American
Programs, shall permit a federally recognized tribe applicant or a
tribally designated housing entity applicant to supplement or replace, in
whole or in part, any data compiled and produced by the Bureau of the
Census and upon which the Secretary, acting through the Office of Native
American Program, relies, provided such tribally-collected data meets the
Department of Housing and Urban Development's standards for accuracy.</text>
</item></subclause><subclause id="H7907C85B52164BC5BA483BDF5911C191"><enum>(V)</enum><header>Treatment of funds</header><text>Notwithstanding any other provision of law, competitive grant amounts received under this clause
shall not be considered Federal funds for purposes of matching other
Federal sources of funds.</text>
</subclause><subclause id="HF9C1121978064C8FBC7CED826D33E303"><enum>(VI)</enum><header>Rule of construction</header><text>The requirements under clause (ii), subparagraphs (B) and (C) of this paragraph, and paragraphs (4)
through (8) and paragraph (10)(A) of this subsection shall not apply to
any amounts distributed under this clause to a federally recognized tribe
or a tribally designated housing entity.</text>
</subclause></clause><clause id="H121413775066404DB00209164B8BA3F2"><enum>(ii)</enum><header>State distributions</header><text>From any amounts remaining in the Housing Trust Fund after the distribution of the amounts required
under clause (i), the Secretary shall</text></clause><after-quoted-block>;</after-quoted-block></quoted-block>
</clause><clause id="H2E98542AE19749A5BDB0E42AF3364B40"><enum>(iii)</enum><text>in subparagraph (B), by striking <quote>subparagraph (A)</quote> and inserting <quote>subparagraph (A)(ii)</quote>; and</text>
</clause><clause id="H40A9C25A1CB24E0B835025ECE5AC34F1"><enum>(iv)</enum><text>in subparagraph (C), by striking <quote>subparagraph (A)</quote> and inserting <quote>subparagraph (A)(ii)</quote>;</text>
</clause></subparagraph><subparagraph id="H857E6D497DC9427E9B1D52483FE1F475"><enum>(D)</enum><text>in paragraph (4)—</text>
<clause id="H2EE0BCCB7C73426C93B07C5649B1852E"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>other than fiscal year 2009</quote>; and</text>
</clause><clause id="H36A5BC5D41344E74AECF172411FC435A"><enum>(ii)</enum><text>by striking subparagraph (C), and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE35F4EA5725B404DA3B92AF3ABB54CA4" style="OLC">
<subparagraph id="H7C08CFF9C8124D73AC211EFE70B57938"><enum>(C)</enum><header>Minimum State allocations</header>
<clause id="H32008D85438842838F2CA0AF3EDF41C3"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), if the formula amount determined under paragraph (3) for a
fiscal year would allocate less than $10,000,000 to any of the 50 States
of the United States or the District of Columbia, the allocation for such
State of the United States or the District of Columbia shall be the
greater of $10,000,000, or 1 percent of the total amount of amounts
allocated for the Housing Trust Fund under this section and the increase
in any such allocation shall be deducted pro rata from the allocations
made to all other of the States (as such term is defined in section 1303).</text>
</clause><clause id="H3ABC5DEE526545FC870E1C15B9C0EA20"><enum>(ii)</enum><header>Exception</header><text>If the allocation to the Housing Trust Fund under section 501(a)(2)(A) of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title> for a fiscal year is less than $1,000,000,000, the minimum allocation to any of the 50 States of
the United States or the District of Columbia shall be the greater of
$5,000,000 or 1 percent of the total amount of amounts allocated for the
Housing Trust Fund under this section and the increase in any such
allocation shall be deducted pro rata from the allocations made to all
other of the States (as such term is defined in section 1303).</text></clause></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H88FDBE6B754A42FF9ECFB1ECEFA7E3BC"><enum>(E)</enum><text>in paragraph (7)(B)(iv), by striking <quote>section 132</quote> and inserting <quote>section 1132</quote>; and</text>
</subparagraph><subparagraph id="H790D5D6461AA43AA9124D16E7E8872E1"><enum>(F)</enum><text>by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H0A4F97CAA09C4D02856EEF464B9CC5BC" style="OLC">
<paragraph id="H373ECFDC4EE54264AE5DD2388178EB94"><enum>(11)</enum><header>Rule of construction</header><text>Nothing in this subsection shall be construed to limit the ability of a federally recognized tribe
or a tribally designated housing entity from receiving grant amounts
provided by a State under this section.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H9E48012BB7DD4C3D8E8FE4716B7C9C4B"><enum>(4)</enum><text>in subsection (f), by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDB323EA748A148A383D18A22F53FDF6B" style="OLC">
<paragraph id="H4951AC23CAE74E93B5526A299712F2D1"><enum>(7)</enum><header>Tribal terms</header>
<subparagraph id="HFC58E3B1DAE444C99694EBBAC2C71E06"><enum>(A)</enum><header>In general</header><text>The terms <quote>federally recognized tribe</quote>, <quote>Indian area</quote>, <quote>Indian tribe</quote>, and <quote>tribally designated housing entity</quote> have the same meaning as in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>).</text>
</subparagraph><subparagraph id="HD1EF3A552C8740208AABAF92F5487BAB"><enum>(B)</enum><header>Indian reservation</header><text>The term <quote>Indian reservation</quote> means land subject to the jurisdiction of an Indian tribe.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section display-inline="no-display-inline" id="H3A3B21506FBA4DEBB0D903B2668FFF6A" section-type="subsequent-section"><enum>503.</enum><header>Capital Magnet Fund</header><text display-inline="no-display-inline">Section 1339 of the Safety and Soundness Act (<external-xref legal-doc="usc" parsable-cite="usc/12/4569">12 U.S.C. 4569</external-xref>) is amended—</text>
<paragraph id="H478CB89B1B664F938989FCB6CA5461E1"><enum>(1)</enum><text>in subsection (b)(1), by inserting <quote>or section 501 of the <short-title>Partnership to Strengthen Homeownership Act of 2014</short-title></quote> after <quote>section 1337</quote>;</text>
</paragraph><paragraph id="HBCC1FBA5FD7247A38AF949579998DFC5"><enum>(2)</enum><text>in subsection (c)(2), by inserting <quote>and tribal</quote> after <quote>rural</quote>; and</text>
</paragraph><paragraph id="HCD8613B6F74F49B6A5476E42DE6B7035"><enum>(3)</enum><text>in subsection (h)(2)(A), by inserting <quote>and tribal</quote> after <quote>rural</quote>.</text>
<quoted-block display-inline="no-display-inline" id="HFB9B23624D3D44F199DAB435E44BDF58" style="OLC">
<paragraph id="H74AE5CBD51844F088D410C6829B521E1"><enum>(7)</enum><header>Tribal terms</header>
<subparagraph id="HA11BB35FB7E541788729696B3D7D9A5E"><enum>(A)</enum><header>In general</header><text>The terms <quote>federally recognized tribe</quote>, <quote>Indian area</quote>, <quote>Indian tribe</quote>, and <quote>tribally designated housing entity</quote> have the same meaning as in section 4 of the Native American Housing Assistance and
Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103</external-xref>).</text>
</subparagraph><subparagraph id="H22421A98278F40D385A707B980434493"><enum>(B)</enum><header>Indian reservation</header><text>The term <quote>Indian reservation</quote> means land subject to the jurisdiction of an Indian tribe.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section display-inline="no-display-inline" id="H2F9DE1E8DD2B4D2888D3626F4F0A669B" section-type="subsequent-section"><enum>504.</enum><header>Market Access Fund</header>
<subsection id="HCC0AFE8915AC4F67BFC45494CE59B5C1"><enum>(a)</enum><header>Establishment</header><text>Ginnie Mae shall establish a fund, to be known as the <quote>Market Access Fund</quote>.</text>
</subsection><subsection id="H07B813600A974DA187958EC812A71D81"><enum>(b)</enum><header>Deposits</header><text>The Market Access Fund shall be credited with—</text>
<paragraph id="H4B37DAC2932C4F918859FE8780556C1A"><enum>(1)</enum><text>the share of the fee charged and collected by the Platform under section 501(a)(1)(B)(iii); and</text>
</paragraph><paragraph id="HC06EE7C445C24215B534478F93089960"><enum>(2)</enum><text>such other amounts as may be appropriated or transferred to the Market Access Fund.</text>
</paragraph></subsection><subsection id="HAE49DC8CEAE749B8BA9D8967541DBD4D"><enum>(c)</enum><header>Purpose</header><text>Amounts in the Market Access Fund shall be eligible for use by grantees to address the
homeownership and rental housing needs of extremely low-, very low-, low-,
and moderate-income and underserved or hard-to-serve populations by—</text>
<paragraph id="HA2373AC40E03444597C26FFA6991CD37"><enum>(1)</enum><text>providing grants and loans for research, development, and pilot testing of innovations in consumer
education, product design, underwriting, and servicing;</text>
</paragraph><paragraph id="H57F94D63A28845128E71B01B95441AD7"><enum>(2)</enum><text>offering additional credit support for certain eligible mortgage loans or pools of eligible
mortgage loans, such as by covering a portion of any capital required to
obtain insurance from the Ginnie Mae under this Act, provided that amounts
for such additional credit support do not replace borrower funds required
of an eligible mortgage loan;</text>
</paragraph><paragraph id="H029B6E792CB14A4BB9FEF11CEB0DAB81"><enum>(3)</enum><text>providing grants and loans, including through the use of pilot programs of sufficient scale, to
support the research and development of sustainable homeownership and
affordable rental programs, which programs shall include manufactured
homes purchased through real estate and personal property loans and
manufactured homes used as rental housing, provided that such grant or
loan amounts are used only for the benefit of families whose income does
not exceed 120 percent of the median income for the area as determined by
Ginnie Mae, with adjustments for family size;</text>
</paragraph><paragraph id="HD80DA07FA4B24FB5A2D98CA163F70D67"><enum>(4)</enum><text>providing limited credit enhancement, and other forms of credit support, for product and services
that—</text>
<subparagraph id="H34FBD7961E954A4BBAF3C8AE22091F67"><enum>(A)</enum><text>will increase the rate of sustainable homeownership and affordable rental housing, including
manufactured homes purchased through real estate and personal property
loans and manufactured homes used as rental housing, by individuals or
families whose income does not exceed 120 percent of the area median
income as determined by Ginnie Mae, with adjustments for family size; and</text>
</subparagraph><subparagraph id="H4E927F32C324484DB497D93841F1E247"><enum>(B)</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>
</subparagraph></paragraph><paragraph id="H2283A01F24A842198491C3126511A005"><enum>(5)</enum><text>providing housing counseling by a HUD-approved housing counseling agency; and</text>
</paragraph><paragraph id="H0FA2A2B30ACA479B8C7882E50828DC46"><enum>(6)</enum><text>providing incentives to achieve broader access to credit.</text>
</paragraph></subsection><subsection id="HE931BC190B934824B1458004D494CB87"><enum>(d)</enum><header>Annual report</header><text>The Director of Ginnie Mae shall, on an annual basis, report to Congress on the performance and
outcome of grants, loans, or credit support programs funded by the Market
Access Fund in accordance with subsection (c), including an evaluation of
how each grant, loan, or credit support program—</text>
<paragraph id="HBC83823A103345F28D0542EBD4AB9FCB"><enum>(1)</enum><text>succeeded in meeting or failed to meet the needs of certain populations, especially extremely low-,
very low-, low-, and moderate-income and underserved or hard-to-serve
populations; and</text>
</paragraph><paragraph id="H24F07216264047FB9BB8EF77682AC242"><enum>(2)</enum><text>succeeded in maximizing or failed to maximize the leverage of public investment made for each such
grant, loan, or credit support program.</text>
</paragraph></subsection></section><enum>VI</enum><header>General Provisions</header>
<section id="HA07BDC6F1D234AA3BE17BCEF9DEF939C"><enum>601.</enum><header>Rule of construction regarding Senior Preferred Stock Purchase Agreements</header><text display-inline="no-display-inline">Nothing in this Act shall be construed to alter, supersede, or interfere with the final ruling of a
court of competent jurisdiction with respect to any provision of the
Senior Preferred Stock Purchase Agreement or amendments thereof of an
enterprise.</text>
</section><section id="H9A98A8CCE1F64908891B982D5BE66511"><enum>602.</enum><header>Treatment of community development financial institution</header>
<subsection commented="no" id="H7979DB65EB8C40B7B549FB18E955CFC4"><enum>(a)</enum><header>Amendment</header><text>Section 10(a) of the Federal Home Loan Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(a)</external-xref>) is amended—</text>
<paragraph commented="no" id="H8703718F55E74954A092054C2135C561"><enum>(1)</enum><text>in paragraph (2)(B), by inserting <quote>or community development financial institution (as defined in section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4702">12 U.S.C. 4702</external-xref>))</quote> after <quote>community financial institution</quote>; and</text>
</paragraph><paragraph commented="no" id="HBC15F92266944EACAEB2960F9D048AF9"><enum>(2)</enum><text>in paragraph (3)(E), by inserting <quote>or community development financial institution (as defined in section 103 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/12/4702">12 U.S.C. 4702</external-xref>))</quote> after <quote>community financial institution</quote>.</text>
</paragraph></subsection><subsection commented="no" id="HAC4190200F704CEA9077D6A2DBA81988"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall take effect on the certification date.</text>
</subsection></section>